Viable Pathway's Role in AASB S2 Compliance: Transition Planning and Scenario Analysis
The outputs from Viable Pathway’s analysis can form part of the statutory disclosure process. The outputs are designed to provide the foundational quantitative data required for robust and defensible reporting under the Australian Accounting Standards Board (AASB) S2 requirements.
What Viable Pathway Provides
Our core deliverable is the creation of detailed GHG (Greenhouse Gas) Projections and Scenarios of GHG Projections
Viable Pathway’s tool ensures that your organisation's target setting and emissions transition plan components of an AASB S2 report are audit-ready. Our tool directly fulfills the Transition Plan and Metrics requirements of AASB S2 by providing specific quantitative evidence. This evidence is generated by modelling your organisation's 'Internal Actions' against 'External Trends' and 'Business As Usual (BAU)' pathways.
Viable Pathway’s outputs are essential for addressing several key paragraphs within the standard:
Viable Pathway is NOT a complete AASB S2 disclosure solution AASB S2 requires a comprehensive assessment covering financial effects, physical risks, and broad strategy resilience.
We focus exclusively on Transition Risk scenario analysis and GHG projections.
We do not include the Physical Risk Assessment, which is a separate fundamental element of AASB S2.
We provide the data for the financial effects calculation, but consultants are required to link the transition plan to your organisation’s financial plan for full disclosure compliance.
Components Addressed by Viable Pathway's Tool:
GHG Projections and Scenarios of GHG Projections: This is Viable Pathway's core deliverable.
Transition Plan Requirements (Paragraph 14 & 33): The tool provides the specific quantitative evidence required to demonstrate how targets will be achieved and the progress of the transition plan by modelling 'Internal Actions' against 'External Trends' and 'Business As Usual (BAU).'
Metrics Requirements: The tool provides quantitative data for compliant and defensible disclosures.
Transition Risk Scenario Analysis (Paragraph 22): VP specifically focuses on this by evaluating how an organization's transition plan would perform under a range of future events (e.g., 1.5°C vs. disorderly transition).
Emissions Scenario Pathways Data (Paragraph 15): The tool provides this data, which is a necessary prerequisite for calculating the financial impact of transition risks (e.g., carbon tax liability or CapEx requirements).
Components Explicitly Not Included in Viable Pathway's Scope:
Complete AASB S2 Disclosure: VP is explicitly stated as not a complete AASB S2 disclosure solution.
Physical Risk Assessment: This is a fundamental element of AASB S2 that is not part of VP's GHG projections.
Linking the Transition Plan to an Organisation's Financial Plan: Consultants are required to perform this step to calculate the financial effects of transition risk for full disclosure compliance. VP only provides the emissions data needed for this calculation.