Worldwide — The draft of IFRS S2 on climate-related disclosures envisages the reporting of Scope 3 emissions. According to this, companies will be required to report not only on their direct emissions (Scope 1) and indirect emissions from the use of purchased electricity, steam, cooling, and heating (Scope 2) but also on all other indirect emissions along the value chain. These often account for a large part of companies' carbon footprint but are difficult to identify.
NEXT STEPS: In order to simplify compliance with the reporting requirements on Scope 3 emissions, the ISSB plans to develop facilitations. Consultations on the first standards (IFRS S1 on general requirements for the disclosure of sustainability-related financial information and IFRS S2 on climate-related disclosures) are expected to be completed by the end of this year.