What are the new global standards for reporting greenhouse gas emissions?

Question

Accepted Answer

New Global Standards for Greenhouse Gas Emissions Reporting Introduced

The International Sustainability Standards Board (ISSB), under the International Financial Reporting Standards (IFRS) Foundation, has published its inaugural standards for reporting greenhouse gas emissions. These standards, designated as IFRS S1 and IFRS S2, are set to become available for companies to implement from the upcoming year. Their primary objective is to enhance the reliability and comparability of corporate sustainability disclosures, thereby fostering greater trust among investors when making crucial investment decisions.
Creation of a Common Language for Climate Disclosures

A significant contribution of these new standards is the establishment of a unified framework for companies to articulate the impact of climate-related risks and opportunities on their future performance. This common language aims to eliminate ambiguity and inconsistencies that have previously plagued sustainability reporting, allowing stakeholders to better understand a company's exposure and strategic response to climate change. For the first time, a globally recognised method for disclosing these effects is being introduced.
Measurement of Emissions Using the Greenhouse Gas Protocol

The standards provide clear guidance on how companies should measure their direct and indirect greenhouse gas emissions. Specifically, they mandate the use of the Greenhouse Gas Protocol, a widely adopted methodology for quantifying carbon footprints. This ensures a consistent approach across different organisations and jurisdictions, making it easier to compare emissions data and track progress towards climate goals.
Requirements for Auditing and Top Management Adoption

Beyond measurement, the new guidelines impose stringent requirements on companies. They will be obligated to have their emissions data independently audited, a measure designed to bolster the accuracy and credibility of reported figures. Furthermore, companies must demonstrate that their climate strategy has been formally adopted and endorsed by their top management. This ensures that sustainability is integrated at the highest levels of corporate governance.

Reading history

Hide →

This history is cleared when the page is closed.

What are the new global standards for reporting greenhouse gas emissions?

Loading

Was this article helpful?

Helpful

Not helpful

Report an issue

1

0

0

Share with friends