ISSB announces guidance and reliefs to support Scope 3 GHG emission disclosures
16 December 2022
The ISSB has set out a series of guidance and reliefs to support those applying the requirement within its Climate-related Disclosures Standard (S2) to disclose Scope 3 GHG emissions when material for a company.
At its December 2022 meeting, the ISSB agreed on the following:
- to set out a framework in S2 for the measurement of Scope 3 GHG emissions that will require the use of reasonable and supportable information that is available without undue cost or effort and incorporates the use of estimation;
- reliefs including a temporary exemption for a minimum of one year following the effective date of S2, designed to give time for companies to implement their processes;
- in disclosing its Scope 2 GHG emissions, a requirement for companies to use the location-based method along with relevant information about contractual instruments in relation to managing energy it has purchased;
- to confirm and refine proposed requirements for financed emissions, intended to support preparers in the financial sector with the measurement and disclosure of emissions associated with their portfolios.
The press release by the ISSB may be accessed here.