WASHINGTON, D.C. (June 26, 2023) – Today, the International Sustainability Standards Board (ISSB) released two initial standards: General Requirements for Disclosure of Sustainability-related Financial Information (IFRS S1) and Climate-related Disclosures (IFRS S2).
IFRS 2 requires companies to disclose absolute gross greenhouse gas emissions generated during the reporting period, measured in accordance with the Greenhouse Gas Protocol, classified as scope 1 emissions, scope 2 emissions, and scope 3 emissions.
The ISSB’s requirement of scope 3 disclosure in IFRS S2 further illustrates the key role that scope 3 emissions play to measure, plan and track companies progress toward science-based and net-zero targets in line with the global 1.5°C goal.
Following is a statement from Pankaj Bhatia, Director of Greenhouse Gas Protocol and member of the IFRS/ISSB International Reporting & Connectivity Council (IRCC):
“The ISSB’s requirement to disclose scope 3 emissions is a major step forward in measuring and managing emissions from companies’ value chain. This is the first time a major global standard-setting institution required reporting of Scope 3 emissions, setting a precedent for other institutions and regulatory programs to follow. Greenhouse Gas Protocol is dedicated to working with ISSB to maintain alignment between our standards and to support successful implementation of IFRS S2. GHG Protocol is currently undertaking updates of the corporate suite of standards, which provides new opportunities to collaborate with ISSB, address stakeholder feedback particularly about the Scope 3 Standard and improve ease of use.”