ISSB Metrics and Targets 2

Question 1

Under IFRS S2, what is the significance of reporting GHG emissions in 'CO2 equivalent' (CO2e)?

Accepted Answer

It allows different greenhouse gases to be compared on a common basis using their global warming potential

Answer

It converts all emissions to carbon dioxide by removing non-CO2 gases from calculations

Answer

It satisfies only voluntary reporting frameworks

Answer

It measures only emissions from fossil fuel combustion

Question 2

When an entity discloses a climate-related target under IFRS S2, what type of target must be disclosed if one is aligned with limiting global warming?

Accepted Answer

A science-based target with reference to the relevant scientific basis

Answer

An aspirational target without a specific baseline year

Answer

An internal management target not subject to external verification

Answer

A relative intensity target only

Question 3

Which global warming potential (GWP) values must entities use when calculating CO2e under IFRS S2?

Accepted Answer

Those from the most recent IPCC assessment report available when reporting

Answer

Those published by the ISSB in its annual metrics update

Answer

A fixed set from the original Kyoto Protocol

Answer

Any GWP values the entity considers appropriate

Question 4

Under IFRS S2, when must an entity disclose the percentage of Scope 3 emissions verified by a third party?

Accepted Answer

When the entity has had its Scope 3 emissions independently assured

Answer

At all times, regardless of whether assurance has been obtained

Answer

Only when required by local regulators

Answer

Only for publicly listed entities

Question 5

What is meant by an 'absolute' GHG target as distinguished from an 'intensity-based' target?

Accepted Answer

An absolute target sets a fixed total emissions level, while an intensity target is expressed relative to a business metric such as revenue or output

Answer

An absolute target applies only to Scope 1, while an intensity target includes Scope 3

Answer

An absolute target is set by external regulators, while an intensity target is set internally

Answer

An absolute target covers all GHGs, while an intensity target covers CO2 only

Question 6

Under IFRS S2, which approach may an entity use to measure Scope 2 emissions?

Accepted Answer

Either the location-based or the market-based method, or both

Answer

Only the location-based method

Answer

Only the market-based method

Answer

A blended average of both methods combined into one figure

Question 7

In the context of IFRS S1 and IFRS S2 metrics, what is the purpose of a 'baseline year'?

Accepted Answer

It establishes a reference point against which progress toward targets is measured over time

Answer

It is the first year in which ISSB standards become mandatory for the entity

Answer

It marks the year the entity's board formally approves the sustainability strategy

Answer

It is the year the entity's auditors first verified the sustainability data