In December 2022, the Australian federal government started a consultation process to amend the Australian Securities and Investment Commission Act 2011 to introduce standardised, internationally aligned reporting requirements for mandatory disclosure of climate related-related financial risks and opportunities and for the development of a broader sustainability framework: "The Government has committed to ensuring large businesses provide Australians and investors with greater transparency and accountability when it comes to their climate-related plans, financial risks, and opportunities. The Exposure Draft Legislation seeks to amend parts of the Australian Securities and Investment Commission Act 2001 that will empower the Australian Accounting Standards Board to deliver sustainability standards to meet the Government's commitment".1 The Bill would enable the Australian Accounting Standards Board (AASB) to establish reporting requirements for sustainability that will align with the standards currently developed by the International Sustainability Standards Board (ISSB) 2 : IFRS S1 General Requirements for Disclosure of Sustainability-related Financial Information and IFRS S2 Climate-related Disclosures3 . The Australian financial reporting will be extended to include the development and assurance of sustainability standards.

Assume you have been contacted by the Australian Institute of Company Directors (AICD) to contribute to a discussion panel on the future developments and implications of adopting the proposed sustainability standards IFRS S1 and IFRS S2. The AICD organiser has asked you to submit business report which Explains the key requirements set out by IFRS S1 and IFRS S2.