Parent-level climate reporting guidelines

🚀 𝐈𝐧𝐭𝐫𝐨𝐝𝐮𝐜𝐢𝐧𝐠 𝐆𝐑𝐈 𝟏𝟎𝟐: 𝐂𝐥𝐢𝐦𝐚𝐭𝐞 𝐂𝐡𝐚𝐧𝐠𝐞 𝟐𝟎𝟐𝟓 – 𝐓𝐡𝐞 𝐍𝐞𝐰 𝐆𝐨𝐥𝐝 𝐒𝐭𝐚𝐧𝐝𝐚𝐫𝐝 𝐟𝐨𝐫 𝐂𝐨𝐫𝐩𝐨𝐫𝐚𝐭𝐞 𝐂𝐥𝐢𝐦𝐚𝐭𝐞 𝐀𝐜𝐜𝐨𝐮𝐧𝐭𝐚𝐛𝐢𝐥𝐢𝐭𝐲  The Global Reporting Initiative (GRI) has raised the bar with GRI 102: Climate Change 2025, effective January 2027. This groundbreaking standard equips organizations to transparently disclose their climate impacts, risks, and transition strategies—aligning with the Paris Agreement’s 1.5°C goal. Here’s what you need to know:  Why GRI 102 Matters  Climate change is the defining challenge of our era. With GHG emissions accelerating global warming, stakeholders demand rigorous, comparable data. GRI 102 responds by:   - Integrating latest science: Requires alignment with IPCC scenarios and sectoral pathways.   - Emphasizing a just transition: Mandates disclosures on workforce impacts, Indigenous rights, and community engagement.   - Closing loopholes: Explicitly excludes carbon credits from GHG reduction targets until at least 90% of emissions are cut.  Key Components 1. Transition & Adaptation Plans (Disclosures 102-1, 102-2)     - Detailed requirements for mitigation/adaptation strategies, including governance, expenditures, and stakeholder engagement.     - Must address biodiversity impacts and just transition principles.  2. GHG Emissions & Targets (Disclosures 102-4 to 102-7)     - Scope 1-3 reporting with strict quality criteria (e.g., market-based Scope 2 must use hourly-matched renewable energy contracts).     - Science-based targets must cover short-, medium-, and long-term horizons.  3. Carbon Credits & Removals (Disclosures 102-9, 102-10)     - No greenwashing: Credits cannot count toward reduction targets—only for "beyond value chain mitigation."     - Permanence monitoring: Projects must demonstrate how they address reversal risks (e.g., reforestation fires).  4. Just Transition Metrics (Disclosure 102-3)     - Track workforce shifts: layoffs, redeployments, upskilling (broken down by gender/employee type).     - Require FPIC (Free, Prior, Informed Consent) for Indigenous communities affected by climate projects.  Actionable Insights  - For Companies: Start gap assessments now—especially on Scope 3 data collection and transition plan governance.   - For Investors: Use GRI 102 to benchmark climate ambition and avoid "net-zero" claims reliant on offsets.   - For Policymakers: Align regulations with GRI’s robust criteria to combat greenwashing.  How is your organization preparing for GRI 102? Share challenges or best practices below!  #Sustainability #ClimateAction #GRI #ESG #NetZero #ClimateReporting #JustTransition #CarbonAccounting  

The Global Reporting Initiative (GRI) has published new finalized standards, GRI 102: Climate Change to enhance corporate reporting on climate. The updated standard has been designed with a strong focus on interoperability with other global sustainability frameworks. In a joint statement, the GRI and the IFRS Foundation confirmed that GRI 102 is compatible with IFRS S2, particularly in the disclosure of Scope 1, 2, and 3 greenhouse gas (GHG) emissions. This alignment allows companies to use a single set of GHG disclosures that fulfill the requirements of both standards, simplifying reporting and reducing duplication of effort. GRI 102 is also aligned with the European Sustainability Reporting Standards (ESRS) developed by EFRAG, ensuring consistency with the reporting obligations under the EU Corporate Sustainability Reporting Directive (CSRD). This harmonization supports companies operating across different regions by enabling them to meet various regulatory requirements through a unified reporting approach. Furthermore, GRI 102 integrates elements of the Science Based Targets initiative (SBTi) Net Zero Standard, particularly in how companies should disclose their climate-related targets and transition plans. By incorporating these widely recognized frameworks, GRI 102 enhances the credibility, comparability, and usefulness of climate-related disclosures for investors, regulators, and other stakeholders. The GRI 102: Climate Change standard covers a comprehensive range of disclosures, starting with topic management disclosures such as Disclosure 102-1 on transition plans for climate change mitigation and Disclosure 102-2 on climate change adaptation plans. It also includes topic-specific disclosures that address critical climate-related aspects, including just transition (102-3), GHG emissions reduction targets and progress (102-4), and detailed emissions reporting across Scope 1 (102-5), Scope 2 (102-6), and Scope 3 (102-7). Further, it introduces disclosures on GHG emissions intensity (102-8), GHG removals in the value chain (102-9), and the use of carbon credits (102-10), offering a holistic framework to enhance climate transparency and accountability. Detail here: https://lnkd.in/gw9Uffz3

📢 New guidance out: GHG emissions, uncertainty and data quality If you’re preparing or assuring climate disclosures, you’ll want to read the latest release from the External Reporting Board in New Zealand. New Zealand is quickly becoming a honeypot of examples and insights for Group 1 reporters. This guidance tackles two of the most anxiety-inducing parts of Scope 3 reporting: uncertainty and data quality. It offers practical info, clear examples, and a refreshing dose of clarity. Some key points: "All GHG emission disclosures contain high levels of estimation and uncertainty. This is a normal part of GHG emissions measurement and disclosure. It is important to remember that one of the main reasons for measuring and disclosing GHG emissions information is to identify areas of risk and opportunity, rather than providing absolute precision." "An entity should work towards obtaining better quality data over time. An entity should prioritise improving areas with high or significant emissions and low data quality, to meet the decision-making needs of its users." "An entity should have the same systems and controls over information to meet their reporting obligations, regardless of whether it is intending to obtain limited or reasonable assurance." "There is a high degree of inherent uncertainty involved in measuring GHG emissions. The GHG emissions disclosures should make the nature and extent of uncertainty clear, and the assurance practitioner may draw attention to relevant disclosures." "The entity’s choice of emission factors is a source of estimation uncertainty. An entity should choose the emission factors that best represent its emission sources, based on considerations such as technology, time, geography, peer review, global warming potential (GWP) and alternate sources. An entity must disclose the source of emission factors used to calculate its GHG emissions. The assurance practitioner will evaluate whether the methods are appropriate and have been applied consistently." "An entity using data from third parties (including suppliers) should understand the method the third party used to calculate that data... Where material, this information should be included in an entity’s methods and assumptions disclosures." "The entity should develop its own systems and controls to ascertain that the supplier data is appropriate to be used as a basis for its disclosures... More material sources of emissions should be subject to a greater level of scrutiny by the entity." Heaps of good stuff to read through - and this is exactly why Sumday asks more questions of suppliers than most, so you can actually disclose the right information if you're using their data. We're also a tech company full of CPAs and ex auditors, for a reason.

📢⚡Last week CARB issued new guidance on CA Climate Rules! We made some updates to the TOP 10 FAQ’s: 🤔🏛️ 1. “Doing business in California” — who’s in scope?  CARB’s draft plan borrows Revenue & Tax Code § 23101: if a company is actively transacting for profit and it meets just one bright-line test (~ $735 k CA sales, ~ $73 k payroll or property, or CA domicile), it’s covered.    💰📊 2. Which revenue figure counts toward the US $1 B / US $500 M thresholds? CARB proposes using worldwide gross receipts (RTC § 25120(f)(2)) on a consolidated basis, measured for the prior fiscal year—so FY 2025 revenue will decide 2026 eligibility. ⏰🗓️ 3. Are the 2026 compliance deadlines firm? Yes. CARB now aims for “end-of-year” final rule text, but it re-affirmed: Scope 1-2 (2025 data) are due in 2026; SB 261 climate-risk reports are due by Jan 1 2026 (docket opens Dec 1, 2025). 📂🧮 4. Can we use FY 2024 data in our first filings? Yes. For 261 you can use data from your last closed FY (24/25 or 23/24). For 253 you can use data already in hand and won’t be penalized if efforts are documented. 👍🛡️ 5. What exactly is a “good-faith effort”? Show you (a) followed the GHG Protocol, (b) obtained limited assurance from an accredited verifier, and (c) paid the CARB fee. Do that and CARB says it won’t levy 2026 penalties -even if you need to restate the numbers later. 👨👩👧👦📄 6. Can we file one parent-level report and skip the subs?  Yes. SB 219 lets a parent file consolidated GHG and climate-risk disclosures; covered subsidiaries need not file separately if fully included in the parent report. 📑🌐 7. Will our existing TCFD or ISSB report satisfy SB 261?  CARB signaled that a report aligned with TCFD or ISSB will qualify—just post it online and link the url on the docket by Jan 1 2026 and update every two years. 📏🗺️ 8. Which organizational-boundary method (equity share, financial control, operational control) will CARB prefer?  CARB hasn’t picked a winner. It says companies may use any GHG-Protocol boundary method as long as they disclose the choice and stick with it consistently. ⚖️⏳ 9. Could the Chamber of Commerce lawsuit delay everything?  A preliminary-injunction hearing was held on May 27 2025; the judge has not ruled. CARB is pressing ahead, and the legislature has nixed delay bills—so keep planning for 2026 compliance unless the court orders otherwise ✔️🔍 10. When should we start preparing? Now.  261: Assessing your climate related financial risks and opportunities + drafting a report will take a few months to complete. 253: It takes time to build governance, data pipelines and the reporting muscle to pass limited assurance – start now so you don’t get hammered in 2026. Learn more --> https://lnkd.in/gFDYy5PA

🌍 𝐍𝐞𝐰 𝐆𝐑𝐈 𝐂𝐥𝐢𝐦𝐚𝐭𝐞 & 𝐄𝐧𝐞𝐫𝐠𝐲 𝐒𝐭𝐚𝐧𝐝𝐚𝐫𝐝𝐬 𝐚𝐫𝐞 𝐡𝐞𝐫𝐞!🌱 A significant leap toward integrated, science-based, and people-centric climate reporting. 🔹 #GRI 102: Climate Change • Introduces science-based GHG emissions reduction disclosures • Aligns with the Paris Agreement and Net Zero ambitions • Includes just transition metrics for workers, communities & Indigenous Peoples • Interoperable with IFRS S2 for consistent reporting on climate risks 🔹 #GRI 103: Energy • Covers full energy lifecycle (renewables, non-renewables, reductions) • Highlights corporate decarbonization strategies and responsible energy use • Positions energy efficiency at the core of climate mitigation 🔹 #Key_Highlights • Both standards are aligned with the GHG Protocol • Promote transparent, credible, and globally relevant disclosure • Designed to meet the needs of investors, regulators, and stakeholders • Drive accountability while reducing reporting duplication • Developed through a 2-year multistakeholder global process • Aligned with ISSB S2, ESRS E1, and SBTi’s Net Zero Standard 🔹 #Resources_Available • Climate Reporting module on GRI Academy • FAQs for GRI 102 & 103 • Early adopter pilot program + upcoming case studies 🧩 Why this matters: These new standards are not just about emissions—they connect climate action with social equity and unlock strategic insights that empower companies to act decisively, report transparently, and build trust. 𝐄𝐦𝐚𝐢𝐥: sachin.sharma@sgs.com or 𝐌𝐞𝐬𝐬𝐚𝐠𝐞: Sachin Sharma 𝐁𝐨𝐨𝐤 𝐚 F̳R̳E̳E̳ 𝐝𝐢𝐬𝐜𝐮𝐬𝐬𝐢𝐨𝐧 𝐜𝐚𝐥𝐥: https://lnkd.in/g23UVEMb 🗣️ As the climate crisis deepens, tools like GRI 102 and 103 are essential for making sustainability reporting actionable, comparable, and impactful. #Reference_Link: https://lnkd.in/gHzsvYNd #GRIStandards #ClimateDisclosure #GHGReporting #NetZero #SBTi #GHGProtocol #ESRS #IFRSS2 #ClimateAction #EnergyEfficiency #SustainabilityReporting #JustTransition #Decarbonization #CorporateSustainability #ESGLeadership #SustainabilityMatters #CarbonReduction #ClimateStrategy #ImpactReporting #ScienceBasedTargets #GlobalReportingInitiative #GreenBusiness #SustainableFuture