4.3 Reporting

Under the Corporate Standard, reporting of Scope 3 emissions is optional. If a reporting company chooses to report GHG emissions under only the Corporate Standard and the Scope 2 Guidance (both of which are mandatory), it would report Scope 1 and Scope 2 emissions but may also report Scope 3 emissions to the extent it chooses to do so. When taking this approach, a reporting company must comply with all reporting and disclosure requirements of the Corporate Standard and the Scope 2 Guidance.

Often, reporting companies that disclose Scope 1 and Scope 2 emissions under the Corporate Standard and the Scope 2 Guidance will voluntarily disclose Scope 3 GHG emissions to a similar extent. In such cases, reporting companies would use judgment in determining what Scope 3 information to disclose and would consider the transparency, consistency, and accuracy principles noted in the Corporate Standard when making this determination. In determining whether to disclose Scope 3 emissions, reporting companies would also consider whether Scope 3 categories are material to their operations.

If a reporting company chooses to comply with the Scope 3 Standard in addition to the Corporate Standard and the Scope 2 Guidance, it would report Scope 3 emissions for all categories (see Chapter 6) as well as Scope 1 and Scope 2 emissions. Scope 1, Scope 2, and Scope 3 emissions would each be disclosed in accordance with the GHG Protocol standards and guidance that apply to them.

For public and corporate reporting purposes, a reporting company would specify whether the information being disclosed is (1) in compliance with the Corporate Standard’s full reporting requirements or (2) a summary report that is being provided for other external or regulatory purposes.

As noted in Section 2.1 of this Roadmap, for corporate reporting purposes, a reporting company can use either the equity share approach or the control approach (operational or financial control) to consolidate its GHG emissions and thereby determine its organizational boundary. As further noted in Chapter 3 of this Roadmap, an operational boundary categorizes GHG emissions as Scope 1, Scope 2, or Scope 3. In accordance with Chapter 9 of the Corporate Standard, a reporting company must disclose its choice of (1) organizational boundary (including the selected consolidation approach) and (2) operational boundary (including a list of the types of activities covered by Scope 3 if Scope 3 emissions are reported).

Information about the selection of the base year, including significant threshold recalculations, must be disclosed as well. See Section 4.1 of this Roadmap for more information.

Although GHG reductions are included in the calculation of a reporting company’s inventory boundary, any purchases or sales of offsets or credits are disclosed separately. See Chapter 8 of this Roadmap for more information.

Companies are encouraged to consider reporting the above optional information in the context of providing relevant and transparent disclosures. For example, a reporting company is advised to consider disclosing any offsets it purchased outside the inventory boundary, as well as the verification pattern of such offsets (i.e., whether such offsets, which are often a result of a decrease in GHG emissions or an increase in removal of GHG emissions, have been verified by an independent third party to ensure that they are accurate and legitimate). The Corporate Standard also recommends that a reporting company consider disclosing any offsets it sold and whether those offsets have been independently verified. See Chapter 8 of this Roadmap for more information about offsets.