The International Sustainability Standards Board (ISSB) is offering guidance and reliefs to companies disclosing their Scope 3 greenhouse gas (GHG) emissions.
At COP15 last week the global standards body agreed a framework that will allow companies to include information in their reports from their supply chains that have different reporting cycles. It also includes a temporary exemption for a minimum of one year after the Climate-related Disclosures Standard so as to allow time to implement their processes.
“We recognise that companies need help, as best practice continues to develop, in measuring Scope 3 GHG emissions,” Sue Lloyd, vice-chair of the ISSB told delegates.
“The ISSB believes the reliefs and guidance agreed this week will provide companies with the time to get their processes in place, and the guidance to support this disclosure.”
This will also mean investment firms looking to report on the emissions of their portfolio companies should see refinement in the process. The ISSB said it had approved amended financed emissions disclosures for asset managers, for example.
The ISSB made several announcements at COP15, including that it will be defining sustainability as “inextricably” linked to nature in its disclosure standards.
“Sustainability will be described in the ISSB’s General Sustainability-related Disclosures Standard (S1) as the ability for a company to sustainably maintain resources and relationships with and manage its dependencies and impacts within its whole business ecosystem over the short, medium and long term,” the board said.
Emmanuel Faber, chair of the ISSB signalled the intention of the ISSB to draw on the TNFD’s nature-related risk management and disclosure approach as it works on developing a global baseline for sustainability reporting, to which Taskforce on Nature-related Financial Disclosures (TNFD) co-chair David Craig said the nature framework developer was “fully committed to supporting”.
The ISSB has also appointed two special advisers, Karin Kemper and Geordie Hungerford, and said it will be proposing upcoming projects in four key priority areas: biodiversity, ecosystems and ecosystem services; human capital; human rights; and connectivity in reporting with the IASB.