Ilja Nevolin’s Post

📢 Now Available: Scope 3 Survey Final Summary Report and Proposal Summary 📄 Between November 2022 and March 2023, GHG Protocol invited interested stakeholders to provide feedback via four surveys on the Corporate Standard, the Scope 2 Guidance, the Scope 3 Standard, and market-based accounting approaches. In March 2024, GHG Protocol released a draft version of the Scope 3 Survey Draft Summary Report and Proposal Summary and held a review period to invite comments from individuals/organizations who completed the survey. The GHG Protocol Secretariat reviewed all comments submitted during the review period and is now releasing the Scope 3 Survey Final Summary Report and Proposal Summary. ➡️ Access the summaries here: https://bit.ly/3Vt9fdO

The GHG Protocol has released its final Scope 3 survey response summary and proposal summary. These documents consolidate feedback on the Scope 3 Standard and Scope 3 Technical Guidance to inform future updates. Some notable proposal themes include:  🔹Phasing out the spend-based method, requiring more primary and supplier-specific data for accurate Scope 3 calculations.  🔹Clarifying minimum boundary requirements across Scope 3 categories, and making Scope 3 emissions reporting mandatory for Corporate Standard compliance. 🔹Introducing accounting guidance for biogenic emissions and removals, including alignment with upcoming Land Sector and Removals Guidance.    👉 Read the Scope 3 proposal summary: https://lnkd.in/g5uRWP4v   👉 Read the Scope 3 survey response summary: https://lnkd.in/gVvhAvpY #Scope3 #CarbonAccounting #CorporateSustainability

📝Between November 2022 and March 2023, the GHG Protocol conducted four #surveys targeting #feedback on the #Corporate #Standard, Scope 2 Guidance, Scope 3 Standard, and market-based accounting approaches. 📑In March 2024, a draft version of the Scope 3 Survey Draft Summary Report and Proposal Summary was released, followed by a review period for survey participants to provide further #comments. 📑After reviewing all submitted feedback, the GHG Protocol Secretariat has now published the #final versions of the Scope 3 Survey Summary Report and Proposal Summary. ℹ️ For detailed insights and findings, access the summaries here: https://lnkd.in/dve6mqWh. #GHGProtocol #summuryreport #proposal #carbonaccounting #emissions #GHG

GHG Protocol has Released Scope 3 Survey Draft Summary Report and Proposal Summary Between November 2022 and March 2023, GHG Protocol invited interested stakeholders to provide feedback via four surveys on the Corporate Standard, the Scope 2 Guidance, the Scope 3 Standard, and market-based accounting approaches.    GHG Protocol has received 354 responses till now to the Scope 3 Survey.

Join our online webinar next week: Market-based Accounting for Scope 3 on May 21 between 14-15. This webinar is part of a Nordic Discussion Series zooming in on three sensitive climate topics and will be hosted by the Nordic networks. In recent years market-based accounting methods have been proposed, for example, for aviation fuels, agricultural commodities, and freight transport. These proposals aim to extend the type of market-based accounting used for scope 2 emissions, to also cover scope 3 emissions. Market-based mechanisms might help in situations where direct engagement with suppliers or full traceability of the supply chain is not possible and could be a way to support the development of lower emission solutions. However, market-based methods come with uncertainties about their efficacy and concerns around credibility. Learn more about the Series and the different sensitve climate topics and sign up for the webinar here: https://lnkd.in/eT2HRY3u

Integrated Report become a broad discussion over all part of the world. According to the IFRS Foundation, International Accounting Standard Board (IASB) and International Sustainability Standard Board (ISSB) they stress Integrated reporting Framework as basis of explaining how an organization interact with external environment to create, erode or preserve value over the short, medium and long-term. whoever integrated report become an evolution of corporate reporting norm, aim to provide an insight about a broad-based capital (financial capital, Human capital, intellectual capital, social and relation capital and manufactured capital) their connectivity and interdependent?  Integrated reporting aims to extend availability of information to the providers of capital. With an integrated report company will report both financial information and non- financial information. Reliability, completeness, materiality and consistence of information are much considered. coming soon ...... get presentation in pdf

There is a new GHG Protocol Newsletter update: May 2024 Corporate Suite of Standards Technical Working Groups Formation Update: • GHG Protocol is forming a Steering Committee and an Independent Standards Board (ISB). 🤝 🌏 • The ISB will approve the Technical Working Groups’ (TWG) Terms of Reference and membership. 👨💻 👩💻 New Blog: • The IFRS S2 standard requires companies to measure GHG emissions per GHG Protocol. 📜 • This collaboration aims to standardize corporate GHG reporting globally. 🖇 🌐 The International Sustainability Standards Board(ISSB) issued the IFRS S2 standard in 2023, requiring companies to measure GHG emissions in accordance with the GHG Protocol. This collaboration between GHG Protocol and ISSB aims to standardize GHG reporting globally, ensuring transparency and meeting the needs of investors and financial markets. Click the link to learn more about the roles of GHG Protocol and ISSB in advancing consistent and comparable corporate GHG accounting practices. https://lnkd.in/eq5NGP2v

𝐀𝐫𝐞 𝐘𝐨𝐮 𝐑𝐞𝐚𝐝𝐲? 𝐍𝐞𝐰 𝐈𝐧𝐭𝐞𝐫𝐯𝐢𝐞𝐰 𝐐𝐮𝐞𝐬𝐭𝐢𝐨𝐧𝐬 𝐨𝐧 𝐒𝐮𝐬𝐭𝐚𝐢𝐧𝐚𝐛𝐢𝐥𝐢𝐭𝐲 𝐑𝐞𝐩𝐨𝐫𝐭𝐢𝐧𝐠 In my last post, we discussed the importance of staying ahead in the ever-evolving global business landscape, accounting trends, and reporting standards. Today, let me share with you details of the first two IFRS Sustainability Disclosure Standards issued by The International Sustainability Standards Board (ISSB) in June 2023. 📊 𝐈𝐅𝐑𝐒 𝐒𝟏: 𝐆𝐞𝐧𝐞𝐫𝐚𝐥 𝐑𝐞𝐪𝐮𝐢𝐫𝐞𝐦𝐞𝐧𝐭𝐬 𝐟𝐨𝐫 𝐃𝐢𝐬𝐜𝐥𝐨𝐬𝐮𝐫𝐞 𝐨𝐟 𝐒𝐮𝐬𝐭𝐚𝐢𝐧𝐚𝐛𝐢𝐥𝐢𝐭𝐲-𝐫𝐞𝐥𝐚𝐭𝐞𝐝 𝐅𝐢𝐧𝐚𝐧𝐜𝐢𝐚𝐥 𝐈𝐧𝐟𝐨𝐫𝐦𝐚𝐭𝐢𝐨𝐧  🌍 𝐈𝐅𝐑𝐒 𝐒𝟐: 𝐂𝐥𝐢𝐦𝐚𝐭𝐞-𝐫𝐞𝐥𝐚𝐭𝐞𝐝 𝐃𝐢𝐬𝐜𝐥𝐨𝐬𝐮𝐫𝐞𝐬 These standards are a response to growing demand from Global capital markets for consistent, comparable, and verifiable information about companies’ exposure to sustainability-related risks and opportunities. Enable investors to make more informed decisions relating to providing resources to companies. These issued sustainability standards are part of a mission to establish a global baseline of sustainability-related disclosures for the capital markets. These standards are built on an established framework, using the relevant concepts from IFRS, the two standards integrate the recommendations of the Task Force on Climate-Related Financial Disclosures and build on materials from the Climate Disclosure Standards Board, International Integrated Reporting Council, and Sustainability Accounting Standards Board. 𝐀𝐩𝐩𝐥𝐢𝐜𝐚𝐭𝐢𝐨𝐧 𝐨𝐟 𝐒𝐭𝐚𝐧𝐝𝐚𝐫𝐝𝐬: 1. Effective for reporting periods beginning on or after 1 January 2024. 2. Adoption is at the discretion of individual jurisdictions, but both public and private companies can voluntarily adopt these standards.   𝐅𝐨𝐫 𝐝𝐞𝐭𝐚𝐢𝐥𝐬 𝐨𝐧 𝐭𝐡𝐞 𝐬𝐭𝐚𝐧𝐝𝐚𝐫𝐝𝐬, 𝐜𝐡𝐞𝐜𝐤 𝐨𝐮𝐭 𝐭𝐡𝐞 𝐚𝐭𝐭𝐚𝐜𝐡𝐞𝐝 𝐟𝐢𝐥𝐞.   This post serves as an opportunity to prepare you for your next interview by familiarizing you with these standards. Stay informed, stay prepared!

How’s the cooperation between #EFRAG and #ISSB going? I stumbled across this report by Accountancy Europe from 2021 again. Two and a half years later, it is more relevant than ever. (https://lnkd.in/d4uwg9tb) The report states: "EFRAG and the IFRS Foundation should coordinate and collaborate as early as possible to develop consistent [#sustainabilityreporting] standards." The graph below shows how the governance of this coordination could have looked like. But it never took place. ❗ This leaves EU firms with the unfavorable situation of having two, not one, sustainability reporting standards (and #materiality interpretations!) to comply with, the ESRS (#doublemateriality) and the IFRS S1 and S2 (single materiality). Instead of common standard development, today there is only rather superficial talk about "interoperability". (see f.e.: https://lnkd.in/d_RsY6Bx) *** Some background: In 2002, the European Commission adopted the IFRS standards for financial reporting/accounting for all EU companies. EFRAG is the central advisory body to the EU Commission on all aspects of financial reporting. In 2021, EFRAG bodies started developing the ESRS. At about the same time as the IFRS Foundation founded the ISSB to develop the S1 and S2 sustainability disclosure standards. As EFRAG and IFRS are in constant dialogue anyway, I wonder why their sustainability reporting standards were not developed in collaboration. This could have prevented or at least mitigated some of the problems the EU faces today: 1️⃣ The unresolved fundamental debate about single and double materiality, 2️⃣ the lack of integration of financial and non-financial reporting, and, closely related to this 3️⃣ the non-existence of accounting (rather than just reporting) standards for sustainability information (what reduces the usefulness of sustainability information). ❗ This post only scratches the surface. And I am by no means an expert on the subject. I would therefore welcome more nuanced comments from people who have a deeper understanding of affairs.

The International Accounting Standards Board (IASB) has published a set of illustrative examples to help companies understand the practical application of disclosure standards for climate-related financial risk. Good timing with the Australian government about to pass mandatory sustainability disclosure laws in Australia aligned to IFRS Foundation standards but few practical examples to draw upon. https://lnkd.in/gg8NArsY #sustainabilityreporting #issb #climaterisk #netzero