ISSB Metrics and Targets 1 — Questions and Answers
Question 1: Under IFRS S2, which three Scope categories of greenhouse gas emissions must an entity disclose?
- Scope 1, Scope 2, and Scope 3 (Correct answer)
- Scope A, Scope B, and Scope C
- Direct, Indirect, and Embedded
- Operational, Supply Chain, and Product
Correct answer: Scope 1, Scope 2, and Scope 3
IFRS S2 requires disclosure of Scope 1 (direct), Scope 2 (energy indirect), and Scope 3 (other indirect) GHG emissions consistent with the GHG Protocol.
Question 2: What measurement protocol does IFRS S2 designate as the primary basis for measuring greenhouse gas emissions?
- The GHG Protocol Corporate Accounting and Reporting Standard (Correct answer)
- ISO 14064-1
- The TCFD Measurement Framework
- The CDP Science-Based Target Protocol
Correct answer: The GHG Protocol Corporate Accounting and Reporting Standard
IFRS S2 requires entities to measure GHG emissions using the GHG Protocol Corporate Accounting and Reporting Standard as the primary measurement basis.
Question 3: Which of the following is a cross-industry metric required by IFRS S1 that all entities must disclose regardless of their sector?
- GHG emissions by Scope (Correct answer)
- Water withdrawal by source
- Employee fatality rate
- Waste generated by type
Correct answer: GHG emissions by Scope
IFRS S1 requires all entities to disclose GHG emissions by Scope as a cross-industry metric applicable regardless of industry.
Question 4: Under IFRS S2, what must an entity disclose when it has set a climate-related target?
- The metric used to set and track progress, the target value, the target period, and a baseline period (Correct answer)
- Only the target value and the year it was set
- The metric and the responsible executive only
- The target value and the board approval date
Correct answer: The metric used to set and track progress, the target value, the target period, and a baseline period
IFRS S2 requires entities with climate targets to disclose the metric used, the target value, the target period, the baseline period, and progress made.
Question 5: What does 'Scope 2' GHG emissions refer to under the GHG Protocol as referenced in IFRS S2?
- Indirect emissions from the generation of purchased energy consumed by the entity (Correct answer)
- Direct emissions from owned or controlled sources
- All other indirect emissions in the value chain
- Emissions from employee commuting
Correct answer: Indirect emissions from the generation of purchased energy consumed by the entity
Scope 2 covers indirect GHG emissions from the generation of purchased electricity, heat, steam, or cooling consumed by the reporting entity.
Question 6: Under IFRS S2, if an entity is unable to obtain the information needed to include a Scope 3 category in its disclosure, what must it do?
- Disclose that the information is unavailable and the reason why (Correct answer)
- Simply omit that Scope 3 category without explanation
- Estimate the emissions using any reasonable method
- Defer the disclosure to a supplementary report
Correct answer: Disclose that the information is unavailable and the reason why
IFRS S2 requires entities to explain why Scope 3 category information is unavailable if they cannot include it, maintaining transparency.
Question 7: What are industry-based metrics under the ISSB framework primarily derived from?
- SASB Standards (Correct answer)
- GRI Standards
- CDP questionnaires
- ISO 14001 requirements
Correct answer: SASB Standards
Industry-based metrics in the ISSB framework are primarily derived from SASB (Sustainability Accounting Standards Board) Standards, which provide sector-specific disclosure topics and metrics.
ISSB Metrics and Targets 1
Under IFRS S2, which three Scope categories of greenhouse gas emissions must an entity disclose?