Does IFRS S2 apply to Indian companies, and what will customers who report under it ask suppliers for?

Question

Senseible · Accepted Answer

Not as law for most Indian companies today. Listed companies report climate data through SEBI's BRSR, not IFRS S2. But customers abroad that report under IFRS S2, or a local version of it, must include Scope 3, so they will ask Indian suppliers for Scope 1 and 2 figures, energy data and emissions allocated to the goods they buy. SEBI requires the top 1,000 listed companies by market capitalisation to file a Business Responsibility and Sustainability Report, with BRSR Core metrics for the largest, including Scope 1 and 2 and energy intensity. India has not made IFRS S2 mandatory for Indian companies as of this review. An Indian subsidiary of a foreign group may still have to feed IFRS S2 data to its parent, and some companies report to it voluntarily. IFRS S2 requires Scope 3 emissions, measured with the GHG Protocol. Its measurement approach prefers data from specific value chain activities, primary data from suppliers, and data that has been verified, over spend-based estimates. A customer reporting under it therefore has a reason to replace its own estimate of your emissions with your figures. Your Scope 1 and Scope 2 emissions for a stated year, with location-based and market-based Scope 2 if you hold certificates. Total energy and the share that is renewable. Emissions per unit of product or per rupee of sales, so they can allocate to their purchases. The method, factors and boundary you used, and whether anyone has checked the figures. Targets or reduction plans, if you have them. Start with a clean Scope 1 and 2 inventory from your own fuel and electricity records, then a simple allocation to the products you sell to that customer. The same figures serve BRSR, CBAM data requests and buyer questionnaires, so one data set covers most asks.