Document ID: chunk:federal_register_of_legislation:F2024L01472:body:0:p60
Version: federal_register_of_legislation:F2024L01472
Segment Type: other
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Character Range: 170458–174047

(FSB).
 2.                In April 2022, the AASB published Exposure Draft ED 321 Request for Comment on ISSB [Draft] IFRS S1 General Requirements for Disclosure of Sustainability-related Financial Information and [Draft] IFRS S2 Climate-related Disclosures. Comments received on ED 321 indicated that the proposals in IFRS S1 and IFRS S2 would be an appropriate baseline on which to develop climate-related financial disclosure requirements for Australian entities.
 3.                Considering the commitment from the Australian Government to introduce internationally aligned mandatory climate-related financial reporting for large businesses and financial institutions and the feedback to ED 321, the AASB decided:
          1.                     Australian sustainability-related reporting requirements would be in a separate suite of standards from Accounting Standards;
          1.                    to use the work of the ISSB as a foundation, with modifications for Australian circumstances where necessary to meet the needs of Australian stakeholders; and
          2.                     to initially develop climate-related financial disclosure requirements that can be applied independently of any broader sustainability reporting framework.
 4.                The AASB noted that it may develop reporting requirements for other sustainability-related risks and opportunities in Australia over time.
 5.                In June 2023, the ISSB finalised IFRS S1 and IFRS S2. In October 2023, the AASB published Exposure Draft ED SR1 Australian Sustainability Reporting Standards – Disclosure of Climate-related Financial Information. ED SR1 proposed three draft Australian Sustainability Reporting Standards, as described below.
          1.                     [Draft] ASRS 1 General Requirements for Disclosure of Climate-related Financial Information, developed using the requirements of IFRS S1 as the baseline but with a scope limitation to climate-related disclosure.
          1.                    [Draft] ASRS 2 Climate-related Financial Disclosures, developed using the requirements of IFRS S2 as the baseline. The main proposed modifications to the baseline requirements related to:
                   1.                      consideration and disclosure of industry-based information;
                   2.                    measurement of greenhouse gas emissions; and
                   3.                  temperature outcomes for scenario analysis.
          2.                     [Draft] ASRS 101 References in Australian Sustainability Reporting Standards, developed as a service Standard that would be updated when required to list the relevant versions of any non-legislative documents published in Australia and foreign documents that are referenced in Australian Sustainability Reporting Standards. Under section 14 of the Legislation Act 2003, Australian legislative instruments (such as mandatory Standards) cannot make provisions in relation to a non-legislative document as existing from time to time. Therefore, the proposed Standards identify the relevant version of all non-legislative Australian documents and foreign documents referenced in the Standards to be clear as to the versions referred to. A service Standard is one possible approach to identifying those documents.
 6.             When the AASB was developing ED SR1, Treasury's Exposure Draft Treasury Laws Amendment Bill 2024: Climate-related financial disclosure (January 2024) had not yet been published. The AASB proposed modifications to the requirements in IFRS S1 and IFRS