The International Sustainability Standards Board (ISSB) issued targeted amendments to greenhouse gas (GHG) emissions disclosure requirements in IFRS S2, Climate-Related Disclosures.
The changes, made in response to stakeholder feedback earlier this year, aim to minimise disruption for jurisdictions adopting or otherwise using ISSB standards. They will provide companies with reliefs and clarifications to support implementation, a news release said.
The ISSB also issued consequential amendments to align financed emissions metrics in three Sustainability Accounting Standards Board standards with the corresponding amended requirements in IFRS S2. According to the release, the IFRS S2 amendments:
- Clarify that an entity is permitted to limit measurement and disclosure of Scope 3 Category 15 GHG emissions to financed emissions as defined in IFRS S2.
- Permit the use of alternative classification systems — beyond the Global Industry Classification Standard — to disaggregate information about financed emissions.
- Clarify the availability of the jurisdictional relief from using the GHG Protocol Standard, if only part of an entity is required to use a different method for measuring GHG emissions.
- Introduce a jurisdictional relief from using global warming potential values from the latest Intergovernmental Panel on Climate Change Assessment Report for converting GHG emissions.
“Our priority in delivering targeted amendments to IFRS S2 GHG emissions disclosure requirements has been to provide a timely response to challenges,” ISSB Vice-Chair Sue Lloyd said in the release. “We are confident that the amendments will bring real relief to companies applying ISSB standards without significantly affecting the decision-usefulness of information for investors.”
The amendments are effective for reporting periods beginning on or after 1 January 2027, with early application permitted.
— To comment on this article or to suggest an idea for another article, contact Steph Brown at Stephanie.Brown@aicpa-cima.com.
