UK greenhouse gas emissions reporting: Scope 3 emissions
Call for evidence description
On 26 June 2023, the International Sustainability Standards Board (ISSB) issued its inaugural standards for sustainability-related disclosures, including requirements for entities to report their Scope 1, Scope 2 and Scope 3 greenhouse gas (GHG) emissions.
The GHG Protocol classifies a company’s emissions into 3 scopes:
- Scope 1 emissions are the direct emissions from owned or controlled sources
- Scope 2 emissions are the indirect emissions from the generation of purchased energy
- Scope 3 emissions are all indirect emissions, not included in Scope 2, that occur in the value chain of the reporting company
Some of the largest organisations in the UK are currently required to disclose their Scope 1 and Scope 2 emissions in their annual reports in line with the Streamlined Energy and Carbon Reporting (SECR) framework, but Scope 3 emissions remain largely voluntary. The framework aims to increase awareness of energy costs and emissions within organisations by providing them with data to inform the adoption of energy efficiency measures and help them to reduce their impact on climate change. It also aims to provide greater transparency and consistency of disclosures for investors and stakeholders to enable them to hold businesses to account.
We’re seeking views on:
- the costs, benefits and practicalities of Scope 3 greenhouse gas emissions reporting to help inform the government’s decision on whether to endorse the ISSB standards in the UK
- the current SECR framework to inform a Post-Implementation Review of the policy
The call for evidence is open to all but may be of particular interest to:
- UK businesses of all sizes (particularly existing SECR participants)
- members of the investment community
- trade associations
- academics
- others with an interest in environmental reporting
We may share responses across government and with the independent UK Sustainability Disclosure Technical Advisory Committee.
