Document ID: chunk:federal_register_of_legislation:F2024L01472:body:0:p73
Version: federal_register_of_legislation:F2024L01472
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horizon, required for each prescribed temperature outcome.
 3.             The AASB observed that those stakeholder preferences have been addressed by the Treasury Laws Amendment (Financial Market Infrastructure and Other Measures) Act 2024. That Act specifies the minimum requirements relating to climate scenario analysis, which includes assessing both a high-warming scenario and a low-warming scenario. Subsection 296D(2B) of the Corporations Act (as amended) states that:
          "… disclosure of a scenario analysis, information derived from a scenario analysis or information about a scenario analysis is taken not to satisfy that requirement unless the scenario analysis is carried out using at least both of the following scenarios:
               (a) the increase in the global average temperature well exceeds the increase mentioned in  subparagraph 3(a)(i) of the Climate Change Act 2022;
               (b) the increase in the global average temperature is limited to the increase mentioned in subparagraph 3(a)(ii) of that Act."
 1.             Subparagraph 3(a)(i) of the Climate Change Act states "… holding the increase in the global average temperature to well below 2°C above pre-industrial levels", and subparagraph 3(a)(ii) states "… pursuing efforts to limit the temperature increase to 1.5°C above pre-industrial levels." Paragraph 2.17 of the supplementary Explanatory Memorandum accompanying the Treasury Laws Amendment (Financial Market Infrastructure and Other Measures) Act 2024 states that an increase of 2.5°C or higher would be considered to well exceed the increase mentioned in subparagraph 3(a)(i) of the Climate Change Act.
 2.             The AASB considered whether to specify in AASB S2 the minimum requirements relating to scenario analysis as set out in the legislation. The AASB decided not to do so because:
          1.                     AASB S2 sets out the principles for assessing an entity's climate resilience using scenario analysis. The number of relevant scenarios to assess would depend on the entity's facts and circumstances, including the nature and location of its operations and the physical and transition risks to which it is exposed (see paragraphs BC66–BC69 of the Basis for Conclusions to IFRS S2). It is not the role of the Standard to prescribe specific temperature outcomes for scenario analysis; and
          1.                    prescribing specific temperature outcomes in AASB S2 would require future amendments to ensure the prescribed temperature outcomes remained consistent with Australian legislation.

Cross-industry remuneration disclosure
 1.             The AASB decided to align with the requirements in IFRS S2 with respect to cross-industry remuneration disclosure.
 2.             Some stakeholders commented that:
          1.                     the degree of interpretative uncertainty relating to the terms 'executive', 'executive management' and 'remuneration' is unlikely to be sufficiently significant to warrant modification from the baseline of IFRS S2. Consequently, the AASB decided to omit paragraph Aus29.1 proposed in [draft] ASRS 2 that referred to the 'key management personnel' and 'compensation' definitions in AASB 124 Related Party Disclosures; and