The International Sustainability Standards Board (ISSB) has released a statement around new disclosure standards for private companies with respect to Greenhouse Gas emissions. Its new standard – expected to be published in 2023 – will now require mandatory Scope 3 disclosures.
This marks a significant shift in historical disclosure requirements, as Scope 3 has traditionally been a voluntary reporting criterion and will have significant consequences for many FM companies, as many countries, such as the UK, France and Spain, are heavily influenced by the ISSB’s Standards.
Companies will now have to investigate their Scope 3 emissions and begin data collection, or fall foul of the new regulations, which may have significant economic consequences. The ISSB has outlined that there would be ‘relief criteria’ to aid companies in the collection of the data, such as giving them extra time, or reducing liability.
For a long time, even up to the present day, FM’s have been reluctant to investigate Scope 3, either due to lack of desire to ‘own’ these emissions, confusion over the complexity of Scope 3 categories or because of a lack of understanding about how to collect Scope 3 data. Fortunately, the framework developed by The SFMI, in partnership with BAM FM, can prove a vital tool in assisting companies to understand Scope 3 and understand what data to collect and how to collect it.
The ‘top-down’ method described within The SFMI’s framework can be utilised by FM’s to build a picture of corporate Scope 3. This will initially involve a screening process for the relevant Scope 3 categories. This will be followed by a period of data collection, using The SFMI’s data accuracy model. This data can then be analysed and a Scope 3 footprint created, which would go a long way in satisfying the ISSB requirements. Moreover, FM’s will also have an enhanced sustainability reputation, increased influence in the building lifecycle and upskilled team members, and will contribute to a more solid business model.
Companies wishing to go further can also utilise the SFMI’s ‘bottom-up’ approach, which can help to build a granular and detailed picture of contract-level Scope 3. This data is formed from an activity level and can be used to open up discussions with clients about how the service offering can be decarbonised. FM’s will then be at the heart of their customer’s decarbonisation roadmap.
The SFMI are now in the process of testing this framework, in collaboration with Skanska, Bouygues ES, Optima and BAM FM together with RICS, IWFM and IEMA to develop Scope 3 footprints and associated emissions factors.
To find out more or get involved, contact SFMI@acclaro-advisory.com
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