The International Sustainability Standards Board (ISSB) has released a series of targeted amendments to the greenhouse gas (GHG) disclosure requirements under IFRS S2 Climate-related Disclosures, following concerns raised by companies during early implementation.
The revisions, informed by feedback from the ISSB’s consultation earlier this year, aim to offer practical reliefs and greater clarity without weakening the quality of information available to investors. They are intended to smooth adoption for jurisdictions preparing to implement the Standards and reduce potential reporting disruptions.
The amendments will apply for reporting periods beginning on or after 1 January 2027, with early adoption allowed.
In addition, the ISSB has introduced consequential updates to align financed emissions metrics across three SASB Standards with the amended IFRS S2 requirements.
ISSB Vice-Chair Sue Lloyd said the adjustments reflect a “timely response to challenges”, adding that the Board is confident the changes will “bring real relief to companies applying ISSB Standards without significantly affecting the decision-usefulness of information for investors”. She also thanked stakeholders, including the Transition Implementation Group, for their input.
Key amendments include:
- Allowing entities to limit the measurement and disclosure of Scope 3 Category 15 emissions to financed emissions, as defined in IFRS S2.
- Permitting the use of alternative industry classification systems, not only the Global Industry Classification Standard, to disaggregate financed emissions data.
- Clarifying the scope of jurisdictional relief from using the GHG Protocol Standard where only part of an entity is required to apply a different GHG measurement method.
- Introducing jurisdictional relief from using global warming potential values from the latest IPCC Assessment Report when converting GHG emissions.
The ISSB said the refinements strike a balance between easing implementation challenges and maintaining high-quality, decision-useful climate disclosures for global capital markets.
