Climate disclosure frameworks and standards guide companies on how to report their GHG emissions, climate-related risks, and opportunities in a structured and comparable way. Some of the leading standards include:

ISO 14064

The ISO 14064 series provides international standards for quantifying, managing, and reporting GHG emissions. It consists of three parts:

• ISO 14064-1: Specifies requirements for designing and developing GHG inventories.
• ISO 14064-2: Focuses on quantifying GHG reductions or enhancements in removals from projects.
• ISO 14064-3: Provides requirements for the verification and validation of GHG assertions.

These standards provide companies with a credible and transparent way to measure and report GHG emissions, ensuring consistency and accuracy.

IFRS and ISSB

The International Financial Reporting Standards (IFRS) and the newly established International Sustainability Standards Board (ISSB) are playing a pivotal role in shaping climate-related financial disclosures. The ISSB is set to issue new sustainability disclosure standards, including climate-related standards aligned with the Task Force on Climate-Related Financial Disclosures (TCFD). These standards will help companies integrate climate risks into financial reporting, enhancing investor confidence and comparability across industries.

CDP (Carbon Disclosure Project)

CDP is a globally recognized disclosure platform that enables companies to report their environmental impacts, including GHG emissions, water use, and deforestation. CDP collects data on behalf of institutional investors, providing insights into how companies manage climate risks and opportunities. Participation in CDP helps companies align with best practices in sustainability reporting and gain visibility among sustainability-minded investors.

GHG Protocol

The GHG Protocol is the most widely used global standard for measuring and managing GHG emissions. It provides frameworks for:

• Corporate Accounting and Reporting: A comprehensive methodology for quantifying and reporting GHG emissions from operations.
• Scope 3 Standard: Guidance on accounting for indirect emissions throughout the value chain.
• Project Accounting: Methods for measuring emissions reductions from specific projects or initiatives.

The GHG Protocol forms the foundation for many other reporting standards, including CDP and ISO 14064, making it essential for companies looking to create credible and transparent GHG inventories.

How to Get Started with GHG Inventory and Climate Disclosure

To create a robust GHG inventory and comply with climate disclosure standards, companies should:

1. Adopt a GHG Protocol-based methodology for measuring emissions across Scopes 1, 2, and 3.
2. Leverage ISO 14064 for transparent and internationally recognized GHG accounting and verification.
3. Align with CDP and IFRS climate standards to meet investor expectations and enhance reporting quality.
4. Implement verification processes through independent audits to ensure the accuracy and credibility of GHG reporting.

By integrating these frameworks, companies can create a comprehensive GHG inventory that not only meets regulatory requirements but also supports broader sustainability goals and corporate responsibility efforts.