The partnership between the IFRS Foundation and the GHG Protocol represents a significant advancement in the field of sustainability reporting. This collaboration offers several key benefits that will positively impact the way companies report on their environmental impact:

Enhanced Consistency and Comparability

Prior to this partnership, companies faced a fragmented landscape of greenhouse gas (GHG) reporting requirements. This inconsistency created unnecessary burdens and hindered meaningful comparisons across companies and sectors. By leveraging the well-established GHG Protocol standards as a foundation for the ISSB’s sustainability disclosure standards, this partnership ensures a more consistent approach to measurement and reporting. This consistency will provide stakeholders with a clearer picture of a company’s environmental footprint, facilitating informed decision-making.

Streamlined Reporting Processes

The historical burden of navigating various and often conflicting GHG reporting requirements is significantly reduced through this partnership. Companies can now streamline their reporting processes by aligning with a single, globally recognized framework. This translates to reduced administrative costs and allows companies to dedicate more resources to driving down emissions and implementing effective sustainability strategies.

Improved Transparency and Accountability

The partnership fosters a more transparent and accountable environment for corporate climate action. Investors and other stakeholders gain access to reliable and comparable information regarding a company’s GHG emissions. This transparency allows for a better assessment of a company’s environmental performance and commitment to sustainability goals. Furthermore, the formalized collaboration positions the GHG Protocol to actively participate in the ISSB’s standard-setting process, ensuring that future sustainability disclosure standards remain aligned with best practices in GHG accounting and reporting.