Document ID: chunk:federal_register_of_legislation:F2025L00107:front:0:p179
Version: federal_register_of_legislation:F2025L00107
Segment Type: other
Provision Reference: 
Character Range: 556157–559858

criteria and their sources is particularly important when:

         1.                 There are significant differences between criteria applied by entities in the same industry, region, or jurisdiction that the practitioner expects to have similar circumstances or be equivalent.

         2.                 The sustainability matter is subject to a high degree of measurement or evaluation uncertainty, such as forward-looking sustainability information, as there may be more variability, or it may be open to greater interpretation than when there is less uncertainty. This may result in sustainability information that could be misunderstood or misinterpreted by intended users.

 3.       In evaluating whether the reference or description of the criteria is adequate, the practitioner may consider whether it addresses:

         1.                 The source of the applicable criteria, and whether the applicable criteria are framework criteria embodied in law or regulation or issued by an authorised or recognised organisation that follows a transparent due process, other framework criteria or entity-developed criteria.

         2.                 How framework criteria have been applied, including the entity's reporting policies for applying the framework criteria.

         3.                 For other framework criteria or entity-developed criteria, how the determination was made that these, together with any framework criteria, are suitable.

         4.                 When applicable framework criteria were not applied, the reasons therefor.

         5.                 The specific aspects of the criteria related to particular types of sustainability information, for example:

                 1.                  The basis for evaluating the reasonableness of the underlying assumptions for forward-looking information.

                 2.                Control objectives for design and operating effectiveness of processes, systems or controls.

                 3.              Targets, key performance indicators, commitments or goals for evaluating or measuring performance.

         6.                  Measurement or evaluation methods used when the applicable criteria allow for choice between a number of methods.

         7.                 Any significant judgements made in applying the applicable criteria in the engagement circumstances.

         8.                 The inherent limitations, if any, associated with the measurement or evaluation of the sustainability matter against the applicable criteria.

         9.                  Other matters relevant to intended users' understanding of the basis for the preparation of the sustainability information, including uncertainties.

        10.                  Any changes in the measurement or evaluation methods used, and the reasons therefor.

        11.                 Any deviations from the applicable criteria identified, for example, deviations from a framework that the entity has referred to as being the basis for preparing the sustainability information.

        12.                  The need for clear meaning, so that the description does not contain imprecise or qualifying language that may result in inconsistent interpretation and provides sufficient detail and clarity to be understandable.

Subsequent Events (Ref: Para. 163–164)

 1.       Examples of subsequent events:

         * The publication of revised factors, assumptions or benchmarks by a body such as a government agency (e.g., revised emissions factors).

         * Changes to relevant legislation or regulations.

         * Significant improved scientific knowledge.

         * Significant structural