Disclosures required on Scope 1, 2 and 3 GHG emissions under IFRS S2

As regards the disclosures required on Scope 1 and 2 GHG emissions, the ISSB has clarified that these disclosures must be disaggregated into, firstly, the emissions generated by the consolidated group (using the same scope of consolidation as for the consolidated accounts, i.e. including the parent company and its subsidiaries); and, secondly, unconsolidated entities in which the group has invested (i.e. associates, joint ventures and unconsolidated subsidiaries that are not included within the scope of consolidation cited above).

Keywords: Mazars, Thailand, Sustainability, ISSB, IFRS, GHG emissions, Disclosure

22 December 2022

The ISSB also reached other tentative decisions relating to the draft IFRS S2, of which the most significant were:

  • to confirm the use of the GHG Protocol to measure GHG emissions, subject to reliefs in specific circumstances (e.g. if a jurisdiction requires the use of another method);
  • to confirm the requirement for an entity to disclose the amount of its Scope 3 GHG emissions, in addition to Scope 1 and 2 emissions, but to propose reliefs to address the practical difficulties potentially raised by Scope 3 disclosures (e.g. the data availability and data quality challenges raised by stakeholders in the public consultation). Decisions will be reached on this topic at a future meeting, but the reliefs may likely involve deferring the effective date of the requirements.
  • to confirm the requirement for an entity to disclose the categories it has used to measure its Scope 3 emissions, of the 15 Scope 3 categories set out in the GHG Protocol Corporate Value Chain (Scope 3) Accounting and Reporting Standard.