Glossary›Measurement and governance / Governance, board and directors
Glossary cluster
Cluster E
10 terms
Measurement and governance / Governance, board and directors
About this cluster
What the board must be able to evidence, what personal exposure directors carry, and how the audit and risk committee engages with the assurer. Governance disclosures sit inside the year-one assurance scope.
Terms in this cluster (10)
E1 · Tier 1
The audit and risk committee is the body where climate disclosures are challenged before they reach the board: the emissions numbers, the judgements behind them, the state of the control environment and the assurance findings.
E2 · Tier 1
Board oversight is the arrangement by which a board, a committee or a designated individual monitors climate-related risks and opportunities and the entity’s response to them.
E3 · Tier 1
Directors’ general duties of care and diligence under the Corporations Act apply to the sustainability report as they do to the financial report.
E4 · Tier 2
A climate governance framework is the documented structure setting out who is responsible for climate-related risk at board, committee and management level, what each body decides, how information moves upward and how often.
E5 · Tier 2
AASB S2 requires an entity to disclose whether and how climate-related considerations are factored into executive remuneration, and the percentage of executive management remuneration recognised in the current period that is linked to…
E6 · Tier 3
Management-level climate responsibility identifies the roles below the board that own climate data, judgements and disclosures, and how they report upward.
E7 · Tier 2
In the regulatory sense, greenwashing is misrepresenting the extent to which a financial product, practice or entity is environmentally friendly, sustainable or climate-aligned.
E8 · Tier 3
Greenhushing is deliberately under-disclosing climate targets, plans or performance to reduce the risk of a greenwashing claim.
E9 · Tier 2
A climate risk register is the documented list of an entity’s climate-related risks and opportunities, each with its description, category, time horizon, assessed significance, owner and mitigation.
E10 · Tier 2
Assurance committee reporting is the communication an assurance provider makes to the audit and risk committee about a sustainability assurance engagement.
All glossary clusters
E · Measurement and governance / Governance, board and directors