LONDON (Reuters) – Planned new global corporate sustainability disclosures will include the full range of carbon emissions, but with ‘relief provisions’ on measuring greenhouse gas discharges from a company’s suppliers.
The International Sustainability Standards Board (ISSB) said it has made “significant progress” in refining its draft standards, that were put out for public consultation.
The ISSB standards are expected to be used by countries like Britain, though the European Union and United States are drafting their own climate-related company disclosures as regulators seek more rigorous reporting to crack down on ‘greenwashing’.
The ISSB said its board has voted unanimously to require company disclosures on Scope 1, 2 and 3 greenhouse gas emissions, with relief provisions for Scope 3.
“This relief will be decided at a future meeting and could include giving companies more time to provide Scope 3 disclosures and working with jurisdictions on so-called ‘safe harbour’ provisions,” the ISSB said in a statement on Friday.
Scope 1 refers to the company’s own direct emissions, Scope 2 to indirect emissions from purchased energy, with Scope 3 referring to all other indirect emissions, for example through the use of their products.