GREENHOUSE GAS REPORTING BUILDING BLOCKS FOR ACCOUNTANTS

The document outlines the application of the GHG Protocol's three scopes of emissions—direct (Scope 1), indirect energy (Scope 2), and value chain (Scope 3)—within a corporate accounting context. It emphasizes using financial reporting boundaries and existing ERP systems to automate data collection from invoices, thereby improving data quality and auditability. The guide details three methods for Scope 3 upstream emissions: spend-based, activity-based, and supplier-specific, while noting the challenges of downstream calculations. It also introduces the International Sustainability Standards Board (ISSB) standards IFRS S1 and S2, which require climate-related disclosures and GHG emissions reporting to be aligned with financial statements.

• GHG emissions are reported in three scopes: Scope 1 covers direct emissions from owned or controlled sources; Scope 2 covers indirect emissions from purchased energy; and Scope 3 covers all other indirect emissions in the value chain.
• To ensure data completeness and comparability with financial reporting, companies should use organizational boundary methods such as the equity share approach or the operational or financial control approach.
• Accountants can improve the reliability and efficiency of Scope 1 and 2 reporting by using invoices and bookkeeping data instead of manual meter readings, allowing for automated internal controls and validation.
• Scope 3 upstream emissions can be measured using three levels of data quality: the imprecise spend-based method, the more precise activity/quantity-based method, and the advanced supplier-specific method using primary data.
• The International Sustainability Standards Board (ISSB) issued IFRS S1 and IFRS S2, with S2 specifically requiring the disclosure of material climate-related risks and GHG emissions in accordance with the GHG Protocol Corporate Standard.
• For group-level reporting, consolidating consumption data within the financial consolidation system is recommended to avoid double counting and ensure that underlying quantities are visible for validation.

APA

We Mean Business Coalition (2023). GREENHOUSE GAS REPORTING BUILDING BLOCKS FOR ACCOUNTANTS. https://www.wemeanbusinesscoalition.org/wp-content/uploads/2023/05/IFAC-GHG-Emissions-Reporting-Building-Blocks-V4.pdf

Chicago

We Mean Business Coalition. GREENHOUSE GAS REPORTING BUILDING BLOCKS FOR ACCOUNTANTS. 2023. https://www.wemeanbusinesscoalition.org/wp-content/uploads/2023/05/IFAC-GHG-Emissions-Reporting-Building-Blocks-V4.pdf.

Wikipedia

{{cite report |author=We Mean Business Coalition |title=GREENHOUSE GAS REPORTING BUILDING BLOCKS FOR ACCOUNTANTS |date=May 2023 |url=https://www.wemeanbusinesscoalition.org/wp-content/uploads/2023/05/IFAC-GHG-Emissions-Reporting-Building-Blocks-V4.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{wemeanbusinesscoalition2023greenhouse, author = {{We Mean Business Coalition}}, title = {{GREENHOUSE GAS REPORTING BUILDING BLOCKS FOR ACCOUNTANTS}}, institution = {We Mean Business Coalition}, year = {2023}, month = may, url = {https://www.wemeanbusinesscoalition.org/wp-content/uploads/2023/05/IFAC-GHG-Emissions-Reporting-Building-Blocks-V4.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }