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

CO2 equivalent (CO2e) allows different GHGs to be expressed on a common basis by weighting each gas according to its global warming potential relative to CO2.

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

IFRS S2 requires that if a climate target is aligned with limiting global warming (e.g., net zero), the entity must disclose the scientific basis used to set that target.

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

IFRS S2 requires entities to use GWP values from the most recent IPCC assessment report available at the time of reporting to ensure scientific currency.

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

Disclosure of the percentage of GHG emissions subject to third-party verification is only required when the entity has actually obtained such verification.

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 specifies a total emissions reduction in tonnes CO2e, while an intensity target expresses emissions relative to a business metric (e.g., per unit of revenue), allowing comparison as business scales.

ISSB - International Sustainability Standards Board Practice Test

ISSB - International Sustainability Standards Board Practice Test

ISSB Metrics and Targets 2