The guidance will help preparers planning to apply the requirement in its Climate-related Disclosures Standard (S2) to disclose Scope 3 GHG emissions when material for a company.

It is designed to help companies embed and improve their processes for measurement and disclosure of Scope 3 GHG emissions.

At its October 2022 meeting the ISSB confirmed the inclusion of Scope 3 disclosure as set out in its draft Climate-related Disclosures Standard. This followed feedback from investors that they could not fully understand a company’s transition risk without information about its absolute gross Scope 1, 2 and 3 emissions.

As a result, the ISSB agreed it would provide support for companies in the provision of these disclosures through guidance and reliefs that help them implement processes to measure Scope 3 emissions.