ISSB proposes changes to ease requirements for financial companies

May 2, 2025

The IFRS Foundation’s International Sustainability Standards Board (ISSB) has proposed reforms to its climate-related disclosure standards to ease greenhouse gas reporting requirements for companies.

The board has proposed introducing new reliefs that would allow companies to exclude Scope 3 emission reporting associated with derivatives, facilitated emissions or insurance-associated emissions.

The changes would also allow companies, in certain cases, to avoid using the Global Industry Classification Standard when reporting financed emissions.

They also clarify that, in some instances, firms can use alternative methods, not just the Greenhouse Gas Protocol, to measure emissions.

In addition, companies would be permitted to use global warming figures required by their country, even if these are not from the latest UN climate reports.

Although the changes would affect many companies’ greenhouse gas reporting, the amendments would have the greatest impact on financial sector requirements.

The proposed changes are made in response to market feedback to address specific application challenges. However, the ISSB emphasised that the amendments are not aimed at reducing greenhouse gas disclosures, but rather at making the standards easier to apply while maintaining the usefulness of information for investors.

Sue Lloyd, vice chair of the ISSB, said: “As a market-focused standard-setter, we have taken steps to respond in a timely manner by proposing targeted amendments helping preparers where possible, without causing too much disruption and ensuring that our Standards continue to enable the provision of decision-useful information to investors,”

“Proposing these amendments to a relatively new standard is not a decision that was taken lightly—we have carefully considered the need for such amendments and have sought to balance the needs of investors while considering cost-effectiveness for preparers.”

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