Uncertainty
Why does uncertainty matter?
What is ‘Uncertainty’ and why does it matter?
No company has perfect data. In fact, nearly every company is forced to calculate the majority of their emissions based on industry averages (we’re working to change that, it’s why you’re here!)
When you provide your emissions data, your customer or financier is making a decision to rely on the data you have provided, instead of the industry average that would be applied.
You can imagine that this would be a hard decision to make without an understanding of the key judgements, methods and assumptions used in measuring your emissions. Disclosing information around uncertainty provides comfort that the information you’re sharing is consistent with their understanding, and can feed into their own accounting process in the most appropriate way.
What do the Standards Say?
Chapter 11 of GHG Protocol’s Corporate Value Chain (Scope 3) Standard:
A credible GHG emissions report presents information based on the principles of relevance, accuracy, completeness, consistency, and transparency. It should be based on the best data available and be transparent about its limitation. For each scope 3 category, a description of the methodologies, allocation methods, and assumptions used to calculate scope 3 emissions For each scope 3 category, the percentage of emissions calculated using data obtained from suppliers or other value chain partners
The International Sustainability Standards Board’s IFSR S1,
77 An entity shall disclose information to enable users of general purpose financial reports to understand the most significant uncertainties affecting the amounts reported in its sustainability-related financial disclosures.
Learn More
Standards Guidance 📑
Read GHG Protocol’s Corporate Value Chain (Scope 3) Standard Chapter 11 - Reporting, Appendix B. Uncertainty in Scope 3 Emissions
Learn what mandatory reporting standards are requiring for disclosure:
