Document ID: chunk:federal_register_of_legislation:F2024L01472:body:0:p75
Version: federal_register_of_legislation:F2024L01472
Segment Type: other
Provision Reference: 
Character Range: 214546–217704

Credit Unit (ACCU) Scheme. The AASB considered stakeholder feedback and observed that modifying the definition of carbon credits could have the unintended consequences of:
          1.                     implying that all emission units recognised under the ACCU Scheme are not 'carbon credits' under IFRS S2, and that other Australian domestic emission units (e.g. Safeguard Mechanism credit units) should be treated differently from ACCUs in the context of reporting net GHG emission targets;
          1.                    reducing an entity's application of judgement regarding which offsetting measures meet the carbon credit definition; and
          2.                     reducing the ability of the Standard to accommodate the future development of any new emission offset programs if the ACCU Scheme is specifically included in the definition of carbon credits.

Carbon offsets and greenhouse gas removals
 1.             Some stakeholders commented that IFRS S2 specifies the disclosure requirements about carbon credits (in paragraph 36(e)) but is unclear about the reporting requirements relating to carbon offsets and GHG removals. IFRS S2 paragraph B68 establishes the principle that net GHG emissions targets are the entity's targeted gross GHG emissions minus any planned offsetting efforts. The AASB is of the view that when reporting net GHG emissions targets an entity could include the effects of any material carbon credits, carbon offsets and GHG removals.
 2.             In accordance with IFRS S1 paragraphs 15(b) and B26 (incorporated in Appendix D of AASB S2) regarding providing additional information to ensure a fair presentation in the GPFR, to meet the disclosure objective related to metrics and targets the AASB is of the view that where information about carbon offsets or GHG removals is material, an entity would be required to disclose sufficient information about these offsetting efforts to enable users of GPFR to understand progress towards any climate-related targets.

Superannuation entity application issues
 1.             The AASB did not identify any superannuation-specific issues that would warrant modifications to the requirements set out in IFRS S2.
 2.             Some stakeholders raised concerns about the costs that might be incurred by superannuation funds to prepare climate-related financial disclosures and commented that there are multiple entities associated with the operation of a superannuation fund. They requested the AASB to clarify which entities related to operating a superannuation fund would be within the scope of AASB S2. The AASB observed that this issue is not unique to the superannuation industry and is relevant also to any collective managed investment vehicle. IFRS S1 paragraph 20 (incorporated in Appendix D as paragraph Aus20.1) states that an entity's sustainability-related disclosures shall be for the same reporting entity as the related financial statements. Accordingly, entities subject to climate-related disclosure requirements should be the same as those to which AASB 1056 Superannuation Entities applies. The Basis for Conclusions to AASB 1056 (paragraphs