gssbsecretariat@globalreporting.org

Item 05 – Draft document comparing
GHG emissions reporting between
IFRS S2 and GRI 305
For GSSB discussion
Date

31 August 2023

Meeting

14 September 2023

Description

This draft document presents a comparison of the GHG emissions reporting
between IFRS S2 Climate-related Disclosures and GRI 305: Emissions 2016 forGSSB feedback.

This document has been prepared by the GRI Standards Division and is made available to observers
at meetings of the Global Sustainability Standards Board (GSSB). It does not represent an official
position of the GSSB. Board positions are set out in the GRI Sustainability Reporting Standards. TheGSSB is the independent standard setting body of GRI. For more information visit
www.globalreporting.org.

© GRI 2023

1Contents

2Introduction.............................................................................................................................................. 33Comparison of GHG emissions reporting between IFRS S2 and GRI 305 ............................................ 4

4

Scope 1 GHG emissions disclosure .................................................................................................... 4

5

Scope 2 GHG emissions disclosure .................................................................................................... 5

6

Scope 3 GHG emissions disclosure .................................................................................................... 67Cross-cutting requirements for Scope 1, 2, and 3 GHG emissions disclosures ................................. 8Page 2 of 98Introduction

9This draft document presents a comparison of the GHG emissions reporting in IFRS S2 Climate-

10

related Disclosures and GRI 305: Emissions 2016, in particular the disclosures for reporting Scope 1,11Scope 2 and Scope 3 GHG emissions.

12

The comparison was prepared by the GRI Standards Division in preparation for the GSSB meeting

13which took place on 20 July 2023. The GSSB invited the International Sustainability Standards Board

14(ISSB) to the meeting in which ISSB presented their newly launched IFRS S2. This was followed by a15

discussion between GSSB and ISSB about the comparison.

16The GSSB has invited the ISSB to develop and publish this comparison document jointly, as a17

practical tool for reporters who want to use the two standards together to report on their GHG

18emissions.

19

Developing joint guidance materials is subject to ISSB’s due process, which requires specific steps

20and parties to be involved.

21The GSSB is committed to updating the guidance to reflect ongoing standard setting activity. The

22

upcoming public consultation for the GSSB's Project for Climate Change Standard(s) will present the23

next opportunity for an update to reflect on the complementary nature of the two standards.

24

GSSB members are invited to review and provide feedback on the draft content presented in the25

following pages. The development of guidance materials that are comparisons with other frameworks

26

or standards does not affect the content of GRI Standards and as such are not subject to the GSSB’s

27

Due Process Protocol.

Page 3 of 928Comparison of GHG emissions

29

reporting between IFRS S2 and GRI

30305

31

Scope 1 GHG emissions disclosure
ItemIFRS S2

GRI 305 (2016)

Reporting of Scope 1
GHG emissions

Required to report gross Scope 1
GHG emissions in metric tons of
CO2 equivalentRequired to report gross Scope 1
GHG emissions in metric tons of
CO2 equivalent

IFRS S2 29 (a) (i) (1)

GRI 305 (2016) 305-1-a

Consolidation
approach

Allowed to choose between equity
share or control approach.
Required to report reason forchoosing the consolidation
approach

Required to report theconsolidation approach: whether
equity share, financial control oroperational control
GRI 305 (2016) 305-1-f

IFRS S2 29 (a) (iii) (1)
IFRS S2 29 (a) (iii) (2)Disaggregation

Required to disaggregate
emissions between the
consolidated accounting groupand other investees

Not covered

IFRS S2 29 (a) (iv) (1)
IFRS S2 29 (a) (iv) (2)Biogenic emissions

Not covered

Required to report biogenic CO2
emissions separately from thegross Scope 1 GHG emissions.
Required to exclude biogenic
emissions of other types of GHG,
and biogenic emissions of CO2that occur in the life cycle ofbiomass other than fromcombustion or biodegradation
GRI 305 (2016) 305-1-2.1.2

Page 4 of 9

32

Scope 2 GHG emissions disclosure
ItemIFRS S2

GRI 305 (2016)

Location-based Scope
2 GHG emissions

Required to report gross locationbased Scope 2 GHG emissions inmetric tons of CO2 equivalentRequired to report gross locationbased Scope 2 GHG emissions inmetric tons of CO2 equivalent

IFRS S2 29 (a) (v)

GRI 305 (2016) 305-2-aRequired to provide information
about any contractual instruments
the entity has entered into that
could inform users’ understandingof the entity’s Scope 2 GHGemissions

Required to report gross marketbased Scope 2 GHG emissions inmetric tons of CO2 equivalent, if
applicableMarket-based Scope 2GHG emissions

GRI 305 (2016) 305-2-b

The entity might disclose marketbased Scope 2 GHG emissions
IFRS S2 29 (a) (v)Consolidation approach

Allowed to choose between
equity share or control approach.
Required to report reason forchoosing the consolidation
approach

Required to report theconsolidation approach: whether
equity share, financial control oroperational control
GRI 305 (2016) 305-2-f

IFRS S2 29 (a) (iii) (1)
IFRS S2 29 (a) (iii) (2)Disaggregation

Required to disaggregate
emissions between theconsolidated accounting groupand other investees

Not covered

IFRS S2 29 (a) (iv) (1)
IFRS S2 29 (a) (iv) (2)Page 5 of 9

33

Scope 3 GHG emissions disclosure
ItemIFRS S2

GRI 305 (2016)

Reporting of Scope 3
GHG emissions

Required to report gross Scope 3
GHG emissions in metric tons of
CO2 equivalent
IFRS S2 29 (a) (i) (3)Required to report gross Scope 3
GHG emissions in metric tons of
CO2 equivalent
GRI 305 (2016) 305-3-a

Scope 3 categories

Required to report which
categories are included in the
Scope 3 GHG emissions, using
the categories in the GHG
Protocol Corporate Value Chain(Scope 3) Accounting andReporting Standard (2011)
IFRS S2 29 (a) (vi) (1)Required to report GHG
emissions categories andactivities included in thecalculation
The categories in the GHG
Protocol Corporate Value Chain(Scope 3) Accounting andReporting Standard (2011) arementioned in the guidance, but
are not required to be used
GRI 305 (2016) 305-3-dReassessment

Required to reassess Scope 3
categories and entities throughout
the value chain in case of asignificant event or change incircumstances

Not covered

IFRS S2 29 (a) (B34)

InputsRequired to prioritize the use of
inputs by:- data based on direct
measurement- data from specific activities
within the entity’s value chain- timely data that faithfullyrepresents the jurisdiction of,and the technology used for,the value chain activity and its
GHG emissions- data that has been verified

Not covered

IFRS S2 29 (a) (B40)

Financed emissions

Required to report additional
information about the entity’s
Category 15 GHG emissions or
those associated with its
investments (financed emissions),
if the entity’s activities include
asset management, commercial
banking or insurance

Financed emissions can bereported under the gross Scope 3
GHG emissions but are notrequired to be reported separately
GRI 305 (2016) 305-3-a

IFRS S2 29 (a) (vi) (2)Page 6 of 9

Biogenic emissions

Not covered

Required to report biogenic
emissions of CO2 separately fromthe gross Scope 3 GHG
emissions. Required to exclude
biogenic emissions of other typesof GHG, and biogenic emissionsof CO2 that occur in the life cycleof biomass other than fromcombustion or biodegradation
GRI 305 (2016) 305-3-c
GRI 305 (2016) 305-3-2.5.3

Page 7 of 9

3435

Cross-cutting requirements for Scope 1, 2, and 3
GHG emissions disclosures
Item

IFRS S2

GRI 305 (2016)

Gases included in thecalculation

Required to include CO2, CH4,N2O, HFCs, PFCs, SF6, NF3

Required to report the gasesincluded in the calculation:
whether CO2, CH4, N2O, HFCs,PFCs, SF6, NF3, or all

IFRS S2 29 (a) (B20)

GRI 305 (2016) 305-1-b
GRI 305 (2016) 305-2-c
GRI 305 (2016) 305-3-b

GHG trades andremovals

Required to exclude removal
efforts from the calculation ofgross emissions

Required to exclude GHG tradesfrom the calculation of grossemissions
GRI 305 (2016) 305-1-2.1.1
GRI 305 (2016) 305-2-2.3.1

IFRS S2 (BC81)

Different reporting
periods in the value
chain

Allowed to measure GHG
emissions using information forreporting periods that are different
from the entity’s own if that
information is obtained fromentities in its value chain withdifferent periods

GRI 305 (2016) 305-3-2.5.1

Not covered

IFRS S2 29 (a) (B19)

Global warming
potential (GWP)

Required to use global warming
potential values based on a 100year time horizon, from the latest
IPCC assessment report
IFRS S2 29 (a) (B21)

Required to report the sourceand GWPs used, andrecommended to use a 100-year
timeframe from the latest IPCC
assessment report
GRI 305 (2016) 305-1-e
GRI 305 (2016) 305-2-e
GRI 305 (2016) 305-3-f
GRI 305 (2016) 305-1-2.2.2
GRI 305 (2016) 305-2-2.4.2
GRI 305 (2016) 305-3-2.6.2

Emission factors

Required to report the emission
factors
IFRS S2 29 (a) (B26) (c)Required to report the source ofthe emission factors
GRI 305 (2016) 305-1-e
GRI 305 (2016) 305-2-e
GRI 305 (2016) 305-3-f

Page 8 of 9

Additional for emission
factors

Required to use emission factorsthat best represent the entity’s
activity
IFRS S2 29 (a) (B22)

Recommended to applyemission factors (and GWPrates) consistently for the data
disclosed
GRI 305 (2016) 305-1-2.2.1
GRI 305 (2016) 305-2-2.4.1
GRI 305 (2016) 305-3-2.6.1

Base year

Required to report the base period
when reporting on targets
IFRS S2 33 (e)Required to report the baseyear, including the rationale forchoosing it, emissions in thebase year and the context forany significant changes inemissions that triggered
recalculations of base year
emissions
GRI 305 (2016) 305-1-d
GRI 305 (2016) 305-2-d
GRI 305 (2016) 305-3-e

GHG emissions
accounting standardsRequired to use Greenhouse Gas
Protocol: A Corporate Accounting
and Reporting Standard (2004) for
measuring GHG emissions
Allowed to use a different method
when required by a jurisdictional
authority or exchange. In thesecases, required to report themethod and reason for using it

No specific GHG emissions
accounting standard required(Greenhouse Gas Protocol
mentioned in the guidance)
GRI 305 (2016) 305-1-g
GRI 305 (2016) 305-2-g
GRI 305 (2016) 305-3-g

IFRS S2 29 (a) (ii)

Approach formeasuring GHG
emissions

Required to report measurement
approach, inputs and assumptions,including the reason for choosing
them. Required to report changes
and reasons for the changes
For Scope 3, required to include
information about thecharacteristics of the data inputs

Required to report standards,
methodologies, assumptions,
and/or calculation tools used
GRI 305 (2016) 305-1-g
GRI 305 (2016) 305-2-g
GRI 305 (2016) 305-3-g

IFRS S2 29 (a) (iii)

Page 9 of 9