Questions & Answers
Is there a requirement for, or guidance around, the methods allowed to calculate Scope 3 emissions from shipping?
- Scope 3
- value vhain
Background
ESRS 1 Annex B, on qualitative characteristics of information, provides important principles and criteria to apply in the assessment of which calculation methodologies and which input data to use in the preparation of ESRS disclosures.
ESRS E1 paragraph 44 requires the disclosure of gross Scope 3 GHG emissions, as well as the other two Scopes regarding GHG emissions, and ESRS E1 AR39 (a) states that ‘the undertaking shall consider the principles, requirements and guidance provided by the GHG Protocol Corporate Standard (version 2004) … ‘, which in this case also includes the GHG Protocol Corporate Value Chain (Scope 3) Accounting and Reporting Standard (Version 2011 mentioned in ESRS E1 AR 46 (a)) as well as the ‘Technical guidance for calculating Scope 3 emissions’ (version 1.0).
ESRS E1 paragraph AR 46 details other requirements related to the reporting of Scope 3 GHG emissions. In particular, ESRS E1 paragraph AR 46 (g) highlights the need to disclose the percentage of emissions calculated using primary data obtained from suppliers or other value chain partners by stating that: ‘disclose the extent to which the undertaking’s Scope 3 GHG emissions are measured using inputs from specific activities within the entity’s upstream and downstream value chain, and disclose the percentage of emissions calculated using primary data obtained from suppliers or other value chain partners.’
Other methodological details that go beyond the provisions included in the ‘Technical guidance for calculating Scope 3 emissions’ (version 1.0) are not provided within the ESRS. Additional provisions may be envisaged as part of future ESRS sector standards.
Answer
The ESRS set reporting standards but do not prescribe detailed calculation methodologies. However, when determining the methodology and input to be used, the undertaking shall apply the criteria defined under ESRS 1 Annex B, qualitative characteristics of information, as well as requirements to consider the GHG Protocol Corporate Value Chain (Scope 3) Accounting and Reporting Standard (Version 2011 mentioned in ESRS E1 paragraph AR 46 (a)) and the ‘Technical guidance for calculating Scope 3 emissions’ (version 1.0). Additional provisions may be envisaged as part of future ESRS sector standards.