#191 Understanding ESG Reporting – ISSB S2

Businesses are coming under increasing pressure to monitor, report and reduce their energy use and carbon emissions to meet net zero targets.

As a result, we’re seeing an increase in both mandatory and voluntary regulations that require carbon emissions reporting to verify your net zero claims.

In this episode, Mel continues the ESG Reporting Disclosures series by explaining what The International Sustainability Standards Board Climate-related Disclosures (ISSB S2) are, the emissions reporting and verification requirements and who qualifies for ISSB S2.

You’ll learn

·      What is ISSB S2?

·      What is the scope of ISSB S2

·      What are the emissions reporting requirements for ISSB S2?

·      Emissions verification requirements

·      Who qualifies for ISSB S2?

Resources

·      Carbonology

·      ISSB S2

In this episode, we talk about:

[00:30] Join the isologyhub – To get access to a suite of ISO related tools, training and templates. Simply head on over to isologyhub.com to either sign-up or book a demo.

[02:10] Episode summary: Over the course of September, Mel will be exploring the latest climate change regulations that may affect your organisation. In this episode she dives into The International Sustainability Standards Board Climate-related Disclosures (ISSB S2).

[03:20] What is ISSB S2? – The International Sustainability Standards Board Climate-related Disclosures (ISSB S2) is a new global standard that mandates entities to provide comprehensive information about climate-related risks and opportunities.

The ISSB S2 was issued by the International Sustainability Standards Board on the 26th of June 2023 and is effective for annual reporting periods beginning on or after the 1st January 2024. The new standard ensures that companies disclose physical and transition risks and their potential impact on the move towards a low carbon economy.

[04:20] Further learning with Carbonology: Carbonology have created a half-day course which walks you through all of the various carbon reporting disclosures and sustainability disclosure reporting requirements.

If you would like to learn more, get in touch with Carbonology.

[07:00] What does ‘Acute and Chronic Physical risks’ mean in the context of ISSB S2? Climate related physical risks are risks resulting from climate change that could be event driven, so an example of an acute physical risk could arise from weather related events like storms, floods and heatwaves, which are increasing in frequency.

These could have a knock-on effect to businesses, taking a heat wave as the example, you will need to consider:

·      Can your IT systems and datacentres cope with it?

·      Have you got resilience built in to your operations to be able to deal with that sort of disruption to your organisation?

Chronic physical risks arise from longer term shifts in climatic patterns, including changes in precipitation and temperature, which could lead to sea level rises and reduced water availability and changes in soil productivity.

These risks could carry a weighty financial burden either through direct damage to assets, or indirectly through supply chain disruption.

[09:35] Join the isologyhub and get access to limitless ISO resources – From as