Glossary›AASB S2 disclosure requirements / AASB S2 mechanics
Glossary cluster
Cluster C
25 terms
AASB S2 disclosure requirements / AASB S2 mechanics
About this cluster
What the climate disclosure standard actually requires, pillar by pillar, plus the reliefs and the effort standard. Use these entries to map each AASB S2 requirement to what has to appear in the report.
Terms in this cluster (25)
C1 · Tier 1 · differentiator
AASB S2 Climate-related Disclosures is the Australian standard that sets what a sustainability report must contain.
C2 · Tier 2
AASB S1 General Requirements for Disclosure of Sustainability-related Financial Information is the Australian counterpart to IFRS S1.
C3 · Tier 2
IFRS S2 Climate-related Disclosures is the international climate disclosure standard issued by the International Sustainability Standards Board.
C4 · Tier 1 · differentiator
AASB S2 is the Australian version of IFRS S2.
C5 · Tier 1
Climate-related risks are the potential negative effects of climate change, and of the response to it, on an entity’s business model, strategy, cash flows, access to finance or cost of capital.
C6 · Tier 1 · differentiator
A climate-related opportunity is a potential positive effect arising from climate change for an entity, including opportunities created by efforts to mitigate and adapt to it.
C7 · Tier 1
Physical risk is risk arising from the physical effects of climate change on assets, operations, supply chains and people.
C8 · Tier 1
Transition risk is risk arising from the shift to a lower-emissions economy rather than from the climate itself.
C9 · Tier 1 · differentiator
Acute physical risk is event-driven: storms, floods, drought and heatwaves, increasing in severity and frequency.
C10 · Tier 1 · differentiator
Scenario analysis is the technique AASB S2 requires an entity to use when assessing the resilience of its strategy and business model to climate change.
C12 · Tier 1
A climate-related transition plan is an entity’s plan for responding to climate-related risks and opportunities, including any greenhouse gas emissions targets.
C13 · Tier 1 · differentiator
The governance disclosures under AASB S2 describe the body or individual responsible for oversight of climate-related risks and opportunities, how that responsibility is assigned, how the body is informed and how often, what relevant…
C14 · Tier 1 · differentiator
Strategy is the second of the four AASB S2 pillars.
C15 · Tier 1 · differentiator
Risk management is the third AASB S2 pillar.
C16 · Tier 1
The metrics and targets disclosures under AASB S2 cover the numbers: Scope 1, Scope 2 and Scope 3 greenhouse gas emissions, any internal carbon price, the proportion of remuneration linked to climate considerations, and any…
C17 · Tier 1 · differentiator
AASB S2 requires an entity to disclose the effects of climate-related risks and opportunities on its financial position, financial performance and cash flows for the reporting period, and the anticipated effects over the short, medium…
C18 · Tier 1 · differentiator
This is the effort standard AASB S2 measures a disclosure against.
C19 · Tier 1 · differentiator
Impracticable is a defined term in AASB S2.
C20 · Tier 1 · differentiator
Transitional relief is the set of concessions in AASB S2 Appendix C that reduce what an entity must disclose in its first annual reporting period applying the standard.
C21 · Tier 1 · differentiator
A sustainability-related financial disclosure is information about a sustainability matter that could reasonably be expected to affect an entity’s cash flows, access to finance or cost of capital over the short, medium or long term.
C22 · Tier 1 · differentiator
A climate resilience assessment is the entity’s evaluation of whether its strategy and business model can withstand and adapt to climate-related changes, developments and uncertainties.
C23 · Tier 1 · differentiator
Cross-industry metrics are the seven quantitative disclosures every entity must make under AASB S2 regardless of sector.
C24 · Tier 1 · differentiator
Industry-based metrics are sector-specific climate disclosures, derived from the SASB standards, that IFRS S2 requires entities to consider.
C25 · Tier 1 · differentiator
An internal carbon price is a monetary value an entity assigns to a tonne of its own greenhouse gas emissions and applies in business decisions.
C26 · Tier 1 · differentiator
A climate-related target is a quantified objective the entity has set for a climate-related metric, with a stated timeframe and base period.
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C · AASB S2 disclosure requirements / AASB S2 mechanics