The ISSB has issued targeted amendments to the Scope 3 GHG emissions disclosure requirements in IFRS S2.
Approved by the ISSB in September, the revised standard permits entities to limit their Category 15 disclosures to emissions associated with loans and investments, thereby excluding disclosures on facilitated emissions, insurance-associated emission, and emissions associated with derivatives.
In addition, IFRS S2 permits the use of classification systems – other than the Global Industry Classification Standard – for the disaggregation of financed emissions disclosures.
ISSB vicechair Sue Lloyd stated:“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.
Consequential amendments have also been made to the financed emissions metrics in three SASB Standards to align with the amendments to IFRS S2.
