The International Financial Reporting Standards Foundation has published clarification on how IFRS S2 applies to greenhouse gas emissions reporting. It confirms that entities measure greenhouse gas emissions in accordance with the Greenhouse Gas Protocol Corporate Standard, unless a jurisdictional authority or an exchange on which they are listed requires a different method, and that Scope 3 disclosures must consider all 15 categories in the GHG Protocol Corporate Value Chain Standard before determining which are relevant to the entity’s value chain and material. The clarification states that the GHG Protocol Corporate Standard may be applied using the equity share, operational control or financial control approach, but only to the extent it does not conflict with IFRS S2. For Scope 3, entities must use the IFRS S2 measurement framework to prioritise inputs and assumptions. The GHG Corporate Value Chain Standard is referenced for the definition of Scope 3 emissions and the disclosure of Scope 3 categories, not for the measurement of Scope 3 emissions, and its optional provisions do not determine what is included in the measure. Entities must disclose which Scope 3 categories are included and provide the IFRS S2 disclosures on the measurement approach, inputs and assumptions used.
International Financial Reporting Standards Foundation 2026-04-29
International Financial Reporting Standards Foundation clarifies IFRS S2 uses GHG Protocol Corporate Standard and requires assessment of all 15 Scope 3 categories
The International Financial Reporting Standards Foundation has clarified that entities applying IFRS S2 to greenhouse gas emissions reporting should use the Greenhouse Gas Protocol Corporate Standard unless a jurisdictional authority or listing exchange requires a different method. All 15 Scope 3 categories in the Greenhouse Gas Protocol Corporate Value Chain Standard must be assessed for relevance and materiality. The equity share, operational control or financial control approach may be used only where not in conflict with IFRS S2. Scope 3 emissions must be measured under IFRS S2, with the Value Chain Standard used only for definitions and categorisation. Entities must disclose which Scope 3 categories are included and provide IFRS S2 disclosures on measurement approach, inputs and assumptions.