The Greenhouse Gas Protocol (GHG Protocol) and the IFRS Foundation have announced the signing of a memorandum of understanding (MoU) to guide future collaboration between the GHG Protocol and the International Sustainability Standards Board (ISSB).
The GHG Protocol’s framework for measuring greenhouse gas emissions has become embedded into capital markets infrastructure through the utilisation of the GHG Protocol Corporate Standard (2004) in the measurement and disclosure requirements of IFRS S2 Climate-related Disclosures. The IFRS Sustainability Disclosure Standards, including IFRS S2, are established by the ISSB, and operate under the broader umbrella of the IFRS Foundation.
The MoU signifies the commitment of both entities to work closely together, ensuring compatibility and meeting the information needs of capital markets. It outlines general principles for cooperation and enhanced relations between the parties in developing new standards and guidance. By implementing the MoU, both parties aim to reduce the cost and effort for standard users and reporting organisations while ensuring that the information requirements of general-purpose financial reports users are fulfilled.
The MoU establishes governance arrangements, ensuring active involvement of the ISSB in updates and decisions related to the GHG Protocol Corporate Standard. This includes appointing an ISSB representative as an observer on the GHG Protocol Independent Standards Board.
GHG Protocol is dedicated to formalising collaborations with key stakeholders in the GHG emissions accounting ecosystem, such as this partnership, to assist users in navigating this complex landscape effectively.
