ISSB issues targeted amendments to IFRS S2 to support implementation

The International Sustainability Standards Board (ISSB) has issued targeted amendments to greenhouse gas (GHG) emissions disclosure requirements in IFRS S2 Climate-related Disclosures in response to specific application challenges that were identified as companies started to apply the Standard.

The amendments are based on feedback from the ISSB’s consultation earlier in the year. These changes provide reliefs and clarifications to support companies in applying the Standard, while keeping investor information needs in focus and minimising disruption to jurisdictions that are in the process of adopting or otherwise using ISSB Standards.

The amendments are effective for reporting periods beginning on or after 1 January 2027, with early application permitted.

The ISSB has also today issued consequential amendments to align financed emissions metrics in three SASB Standards with the corresponding amended requirements in IFRS S2.

ISSB Vice-Chair Sue Lloyd said:

Our priority in delivering targeted amendments to IFRS S2 GHG emissions disclosure requirements has been to provide a timely response to challenges. 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.

We thank stakeholders, including members of the ISSB’s Transition Implementation Group, for engaging in this process and providing input on the amendments.

The amendments:

• clarify that an entity is permitted to limit measurement and disclosure of Scope 3 Category 15 GHG emissions to financed emissions as defined in IFRS S2;
• permit the use of alternative classification systems—beyond the Global Industry Classification Standard—to disaggregate information about financed emissions;
• clarify the availability of the jurisdictional relief from using the GHG Protocol Standard, if only part of an entity is required to use a different method for measuring GHG emissions; and
• introduce a jurisdictional relief from using global warming potential values from the latest IPCC Assessment Report for converting GHG emissions.

Access the amendments

• Amendments to Greenhouse Gas Emissions Disclosures—Amendments to IFRS S2 and the Basis for Conclusions
• Consequential Amendments to Align with Amendments to Greenhouse Gas Emissions Disclosures—Amendments to the SASB Standards
• Targeted amendments to IFRS S2—At a glance

The amendments are available from the IFRS Sustainability Standards Navigator and the finalised Amendments to Greenhouse Gas Emissions Disclosures (Amendments to IFRS S2) project page.