ISSB announced amendments to greenhouse gas emissions disclosures

17 March 2026

On 17 December 2025, the International Sustainability Standards Board (ISSB) issued amendments to IFRS S2 – Climate-related Disclosures, titled “Amendments to Greenhouse Gas Emissions Disclosures”. These changes respond to challenges and practical difficulties entities faced when applying the original standard, particularly in meeting certain disclosure requirements with respect to GHG emissions reporting (especially for financed emissions and jurisdiction-specific reporting obligations).

The main amendments to GHG emissions disclosures under IFRS S2 can be detailed as follows:

limiting measurement and reporting of scope 3, category 15 emissions:
- entities may restrict scope 3 category 15 disclosures to financed emissions only (loans, investments, and assets under management);
- emissions attributable to derivatives can now be excluded of such category, provided that entities using this relief explain which instruments were treated as derivatives and describe excluded financial activities;
introducing jurisdictional reliefs:
- entities no longer need to strictly follow the Greenhouse Gas Protocol: A Corporate Accounting and Reporting Standard (2004) if a jurisdiction mandates a different method;
- similar relief applies to global warming potential values, allowing use of jurisdiction required values for the part of the entity to which that requirement applies;
setting principles for industry-level disaggregation:
- entities that participate in commercial banking or insurance activities must disclose absolute gross financed emissions, broken down by Scope 1, Scope 2, and Scope 3 for each industry by asset class;
- such entities can choose an alternative classification system, instead of being limited to Global Industry Classification Standard (GICS) to classify their investees or counterparties when disclosing their disaggregated financed emissions information by industry, that helps users understand climate-related transition risks and ensures comparability. Such entities must then disclose the chosen system and explain how it meets the standard’s requirements.

Amendments to Greenhouse Gas Emissions Disclosures (see related press release).