This Standard is a voluntary Standard. Entities may elect to apply this Standard, which would require an entity to disclose information about all sustainability-related risks and opportunities that could reasonably be expected to affect the entity’s cash flows, its access to finance or cost of capital over the short, medium or long term.
The AASB has also issued a separate, mandatory Standard on climate-related financial disclosures, AASB S2 Climate-related Disclosures. AASB S2 incorporates selected content from this Standard that the AASB considers necessary to make AASB S2 function as the standalone Standard for all climate-related financial disclosures. That content is included in Appendix D to AASB S2. Entities required by the Corporations Act 2001 to comply with AASB S2 are not required to comply with this Standard, but may refer to it for guidance. They may also elect to apply this Standard in preparing their sustainability report.
This Standard is issued as a voluntary Standard consistent with Australian Government policy, which is to mandate only climate-related disclosures at this time. Mandatory disclosure requirements for other sustainability-related topics may be developed in the future, which might result in either revisions to or replacement of this Standard, potentially including removing its voluntary status and making it a mandatory pronouncement.
