Week 7 - Sustainability Assurance

AASB S1
AASB S2

What is the applicable reporting framework in Australia?

AASB S1

This framework relates to General Requirements for Disclosure of Sustainability related Financial Information. It is a voluntary standard.

AASB S2

This framework relates to climate related disclosures. It is a mandatory standard.

Required to disclose climate-related risks and opportunities.

The core content of AASB S2

Climate-related risks

These are associated with both physical risks (such as an increase in extreme weather) and transition risks (such as policy action and changes in technology).

Climate-related opportunities

These refer to the potential positive effects arising from climate change for an entity.

1 January 2025 - 30 June 2026

When will Group 1 Entities need to first prepare sustainability reports?

1 July 2026 - 30 June 2027

When will Group 2 Entities need to first prepare sustainability reports?

1 July 2027 - 30 June 2028

When will Group 3 Entities need to first prepare sustainability reports?

Governance
Strategy
Risk Management
Metrics and targets

What are the four pillars of the four pillars approach?

Climate-related scenario analysis

What is the primary strategy for managing risks and opportunities?

A low warming scenario (1.5 degrees)

A high warming scenario (greater than 2.5 degrees)

What are the two climate-related scenarios?

Scope 1 Emissions

Direct emissions from owned or controlled sources.

Scope 2 Emissions

Indirect emissions from purchased electricity, steam, heating and cooling.

Scope 3 Emissions

All other indirect emissions from actives in the value chain

Group 1

This Group of entity has at least 2 of these:
Consolidated revenue: $500 million or more
Consolidated gross assets: $1 billion or more
Number of employees: 500 or more

Group 2

This Group of entity has at least 2 of these:
Consolidated revenue: $200 million or more
Consolidated gross assets: $500 million or more
Number of employees: 250 or more

Group 3

This Group of entity has at least 2 of these:
Consolidated revenue: $50 million or more
Consolidated gross assets: $25 million or more
Number of employees: 100 or more