On Monday 24 June 2024 Greenhouse Gas Protocol (GHG Protocol) and the IFRS Foundation  announced that they have signed a memorandum of understanding to guide future work and collaboration between GHG Protocol and the International Sustainability Standards Board (ISSB).


The framework for measuring greenhouse gas emissions developed by GHG Protocol has become embedded in capital markets infrastructure through the use of the GHG Protocol Corporate Standard (2004) in the measurement and disclosure requirements of IFRS S2 Climate-related Disclosures. IFRS S2, and other IFRS Sustainability Disclosure Standards, are set by the ISSB, which falls under the broader banner of the IFRS Foundation.


This memorandum of understanding (MoU) signals the commitment of both parties to work closely together to ensure compatibility and to ensure that the information provided meets the needs of capital markets. The purpose of the MoU is to set forth the general principles for cooperation and strengthened relations between the parties on the development of new standards and guidance. Through the implementation of the MoU, both parties aim to help minimise the cost and effort required of standard users and reporting organisations, while ensuring that the information needs of users of general-purpose financial reports are met.


The MoU puts in place governance arrangements so that the ISSB is actively engaged in updates and decisions made in relation to the GHG Protocol Corporate Standard. This includes the appointment of a representative of the ISSB as an observer on the GHG Protocol Independent Standards Board.


GHG Protocol is committed to collaborating more formally with key stakeholders in the GHG emissions accounting ecosystem through partnerships like this one, with the aim of supporting its users in navigating this landscape.


Source press release Greenhouse Gas Protocol
 

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