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IFRS S2: Climate-related Disclosures · 2024

Paragraph 36

Greenhouse-gas-target specifics and carbon credits

Q: For s2-36, what data do I need to gather before I start drafting the disclosure?

The page says to prepare eight datapoints: linked gross target, credit use reliance, credit quality basis, covered gases, reporting basis, included scopes, sector method and assurance provider. Use the step-by-step preparation section to turn that list into your data request and draft plan.

Q: How do I use the s2-36 step-by-step preparation section in practice?

Use it as a working checklist to move from the plain-language explainer to the datapoints, then into the evidence pack and draft output. The page is designed to help you prepare the disclosure, not just read about it.

Q: Who should own the inputs for s2-36 in my organisation?

The page is set up for a sustainability/ESG manager, HR or data owner, and assurance reviewer to work from the same page. In practice, assign ownership for each of the eight datapoints and the evidence pack items so the draft can be built and checked efficiently.

Q: What evidence should I keep ready for assurance on s2-36?

The page includes an evidence pack with five items for assurance readiness, plus six assurance claims to verify with claim, risk and evidence. Use those sections to build a file that shows where each reported point came from and how it was checked.

Q: What are the common reporting gaps or mistakes on s2-36?

The page has a section on common reporting gaps and mistakes to help you spot issues before you finalise the draft. Use it alongside the datapoints and evidence pack so you can check for missing scope, unclear basis or weak support.

Q: How do I turn the s2-36 data into a draft disclosure?

The draft-output section gives visualisation ideas, narrative starters and a content-index line to help you move from source data to a usable draft. It is meant to help you assemble the disclosure in a practical way, not to replace your own judgement.

Q: What does the synthetic example on the s2-36 page show me?

The page includes synthetic illustrative example disclosures, including a quantitative table where relevant, so you can see how the information might look in a draft. Treat it as a formatting and structure aid only, and keep your own numbers internally consistent.

Q: How can I use the Prep & Assurance workbook for s2-36?

The Download Centre includes a Prep & Assurance workbook in .xlsx format. Use it to organise the datapoints, evidence and assurance checks before you write the draft.

Q: What is the printable Library Card for s2-36 for?

The Download Centre also includes a printable Library Card in .pdf format. It is there as a practical reference you can keep alongside the workbook while you prepare the disclosure.

Q: Can I reuse data from s2-36 for ESRS E1 work?

The page says the closest ESRS correspondence is ESRS E1 (Climate Change), so the data may be reusable across workstreams. Use the page as a practical bridge, but do not assume the reporting asks are identical.

Practical guidance for preparing this disclosure. Use this card to identify the information to prepare, verify claims and organise supporting evidence. For exact requirements, always refer to the official IFRS source.

◍ Open official IFRS source Compare real reports → ↗ Share

Under review Editorial review in progress Prepared from official source material and published report evidence Use alongside the official IFRS source while human review is in progress.

To prepare this disclosure

8preparation fields↓ 6claims to verify↓ 5evidence areas↓ 3report examples↓

Disclosure focus

This disclosure asks an organisation to explain its greenhouse-gas targets in a way that lets readers understand what the target actually covers and how it is meant to be achieved. In practice, that means setting out the target’s scope, the gases and activities it applies to, the time horizon, and any assumptions or methods used to measure progress. It also means being clear about whether the target relates to the whole business or only to selected parts of it, so users can see the difference between group-wide coverage and narrower operational coverage.

It also asks for transparency on the role of carbon credits in meeting the target. The practical focus is on whether credits are being used, how they are being used, and how much of the target depends on them. This helps readers judge whether progress is being driven mainly by direct emissions reductions within the organisation’s own operations and value chain, or partly by external offsets or removals.

This LRA educational guidance supports disclosure preparation. For the exact requirements, always refer to the official IFRS source.

Before you start

A quick mental checklist before you prepare this disclosure — tick each as you settle it.

Before drafting, have you settled which emissions sources sit inside the target, and which gases are included or left out? Have you decided whether the target is being shown on a gross basis, a net basis, or both, and whether a gross target sits behind any net target? Have you pinned down which parts of the value chain the target covers, and whether a sector-specific method is being used? If carbon credits are part of the plan, have you fixed how much the target depends on them, and what type of credits and quality checks you will describe? Can every figure and statement be traced back to a source, including who checked or verified the target or credit information?

Preparation

Key information to prepare

Preparation field What to capture Evidence hint Owner

Linked gross target If a net target is reported, capture the matching gross target that sits behind it, so the relationship between the two is clear. Target-setting paper, emissions plan, board paper, or approved KPI schedule showing both figures and how they connect. Sustainability / climate strategy

Credit use reliance Capture whether the target or claim depends on carbon credits, and the extent of that dependence in the reported period or target design. Offset procurement records, retirement certificates, target methodology note, or emissions inventory showing credit use. Sustainability / carbon accounting

Credit quality basis Capture the type of credits used or assumed, plus the quality or integrity conditions the reporter says those credits must meet. Credit policy, supplier due diligence, registry documentation, or methodology note setting out accepted credit types and quality screens. Sustainability / procurement

Covered gases Capture which greenhouse gases are included in the reported figure or target, using the same gas set throughout the calculation and disclosure. Inventory methodology, emissions workbook, or calculation model showing the gases included in the total. Carbon accounting / sustainability

Reporting basis Capture whether the figure is built on a gross basis or a net basis, and keep that basis consistent across the disclosure and supporting calculations. Methodology note, KPI schedule, or emissions model showing whether removals, offsets, or other adjustments are included. Carbon accounting / reporting

Included scopes Capture which emissions scopes are included in the reported figure or target, and make sure the same scope set is used in the source calculation. Inventory boundary note, emissions workbook, or target methodology showing the included scope categories. Carbon accounting / sustainability

Sector method Capture the sector-specific method used to set or assess the target, including the named approach and the assumptions that go with it. Target-setting methodology, sector pathway document, or external framework note used by the business. Climate strategy / sustainability

Assurance provider Capture who performed the verification or certification, and whether that party is the actual external provider named in the evidence trail. Assurance statement, certificate, engagement letter, or verifier report naming the provider and the covered period. Finance / sustainability reporting

＋ Show s2-36 sub-elements (LRA working checklist)

How to prepare it

1Set the boundary for the disclosure first: decide which greenhouse gases are in scope, which emissions scopes you are covering, and whether your reporting is built on a gross basis or a net basis.

2Check whether the target is framed by sector-specific methods, and if so, record that approach clearly so the reader can see how the target was set.

3If a net target is used, identify the matching gross target alongside it and keep the link between the two explicit in your working papers.

4Gather the support for any use of carbon credits: note how much the target depends on them, what kind of credits are being relied on, and the assumptions you have made about their quality or credibility.

5Collect the evidence for who checked or certified the information, then assemble the final narrative or figures so the disclosure is complete and internally consistent.

6Document any exclusions, methodology changes, or judgement calls, then compare the draft back to the official source to confirm nothing required has been missed or misstated.

Request the data

Request the target and credit evidence pack

Translate the disclosure into an internal business question — then adapt it to your organisation's own language.

What target wording, coverage and credit assumptions should we use for the organisation’s climate target disclosure, and what supporting evidence shows how those choices were set and checked?

Use your organisation’s own terms first, then map them to the disclosure fields. For example, if your team talks about a decarbonisation plan, emissions pathway, offsetting, removals, or assurance review, use those internal labels in the request and only translate them afterwards for reporting. This is a training template; adapt it to your organisation and check the source material before sign-off.

Weak request

Please provide the IFRS S2 target disclosure data for greenhouse-gas targets and carbon credits.

Why it fails: It uses framework language instead of the team’s own working terms, so the owner has to guess which internal documents and decisions are needed. It also does not separate the practical items: target basis, linked gross target, gases, scope coverage, credit use, credit type, quality checks, sector method, and reviewer details.

Better request

Please send the climate target pack for [reporting period] from your team’s working files: the target wording, whether it is gross, net, or both, the gases and emissions coverage, any gross target linked to a net target, any use of carbon credits, the credit type and quality checks, the sector pathway used, and who reviewed or verified it. Include the source files or links.

Formal email template

Subject: Request for target and credit evidence pack for [reporting period]

Hi [name/team],

We are preparing the climate target disclosure and need the evidence pack for the organisation’s target setting and any carbon credit use.

Please send the information for [reporting period] covering:
- the target name used internally and the business area it applies to
- whether the target is set on a gross basis, a net basis, or both
- the emissions coverage and gases included
- any linked gross target where a net target is in place
- whether carbon credits are part of the plan, and if so, how they are used
- the type of credits, the assumptions used to judge their quality, and any screening or approval notes
- the sector method or pathway used, if any
- the person or team that reviewed, verified, or certified the information

Please include the source files, links, or meeting notes that support the figures and wording.

This is a training template; please adapt it to your organisation’s own language and check the source material before sign-off.

Thanks,
[preparer name]

Short Teams / Slack version

Hi [name/team] — could you share the target and credit evidence pack for [reporting period]? We need the internal target wording, coverage, gases, gross/net basis, any linked gross target, any credit use and quality checks, plus the reviewer/assurer details. Please send the source files or links. Adapt to your own terms first, then map for reporting; check the source material before sign-off.

Industry examples

Manufacturing

Context. A plant-led business with an operations team that tracks emissions by site and uses a decarbonisation roadmap.

Adapted request. Please share the site and group target pack for [reporting period]: the reduction target wording, whether it is gross or net, which sites and emissions sources it covers, the gases included, any linked gross target, any carbon credit use, the credit type and screening checks, the pathway used for the manufacturing business, and the reviewer or verifier details.

Example response. Target pack shows a group net target with a linked gross reduction target, covers Scope 1 and 2 across all plants, includes CO2, methane and nitrous oxide, uses no credits in the base plan, and was reviewed by the sustainability lead and an external assurer.

Financial services

Context. A bank or insurer with a sustainability reporting team and a portfolio emissions method alongside operational emissions targets.

Adapted request. Please send the climate target evidence pack for [reporting period]: the internal target wording, whether it is gross, net, or both, the emissions coverage for operations and any portfolio-related target, the gases included, any linked gross target, any carbon credit use, the credit type and integrity checks, the sector method used, and the reviewer or certifier details.

Example response. Pack shows an operational net target with a linked gross target, covers Scope 1 and 2 for offices and data centres, includes CO2e, uses a limited volume of credits for residual emissions, records the screening criteria used for those credits, and notes internal review by the sustainability reporting manager.

Draft your disclosure

Notes that turn data into a disclosure

LRA training templates — adapt them to your organisation, and check the official source before sign-off.

Method note

Set out the basis used for the target, including whether it is shown on a gross or adjusted basis, which emissions sources and gases are included, whether a sector-specific method was applied, and what assumptions were made about any credits and their quality, together with any external review or certification.

Context note

Explain what the figures mean in practice by linking the target design to the emissions sources and gases covered, the degree of reliance on credits, and whether the reported figure is a gross or adjusted view of the target.

Fluctuation statement

If the target picture has changed, explain whether the movement comes from a shift between gross and adjusted presentation, a change in credit reliance or credit assumptions, a different emissions coverage, or a revised sector-based method.

Content index entry

s2-36 Greenhouse-gas-target specifics and carbon credits — [location / page] / [notes]

Download Centre

Preparation tools & forms

Professional preparation tools for s2-36 — free with an LRA Community membership. Register once (it's free) and every download unlocks, together with the Disclosure Library, templates and the LRA AI Assistant.

Free · Community members

01XLSPrep & Assurance workbookDatapoints, risks, evidence to check, owner and evidence pack.Get it free ↧ 02XLSData-request packRequest email, message template, response fields and sign-off structure.Get it free ↧ 03PDFLibrary CardPrintable one-page summary of this disclosure card.Get it free ↧

Go deeper · s2-36

Learn to prepare this disclosure end-to-end

This guide covers one requirement. The IFRS S1 & S2 Reporting course walks the full ISSB workflow — governance, strategy, risk management and metrics — with exercises on your own data.

Available as Guided Flex, Live Cohort, 1:1 Expert Mentorship or Corporate Programme.

Explore the IFRS S1 & S2 course →

Assurance readiness

For each claim, check the evidence

ClaimRiskEvidence to check

We checked whether the target table separates the gross figure from any net-based target, so the reader can see the two bases distinctly.The assurer may test whether a net target has been mixed into the gross figure, or whether the split is only implied rather than clearly shown.Target schedule, drafting notes, internal review mark-up, and the final published table showing separate entries or labels for gross and net-based targets.

We limited the target coverage to the gases actually intended for that measure, and we kept the basis consistent with the underlying calculation file.The assurer may probe whether the gases listed match the source model and whether any gas was omitted or added without support.Target methodology paper, emissions inventory mapping, calculation workbook, and sign-off showing the gases included in the disclosed target.

We stated which emissions areas the target applies to, using the same scope boundary as the supporting data pack.The assurer may check whether the scope boundary in the disclosure matches the operational boundary used in the source data and whether any scope was left out without explanation.Boundary memo, scope mapping, source data extracts by scope, and reviewer comments confirming the published scope coverage.

We made the basis of the target clear by saying whether it was built from a sector-style pathway or from another internal approach.The assurer may ask whether the stated basis is supported by the planning papers and whether the wording overstates the method used.Target-setting paper, pathway analysis, board or management approval pack, and the final disclosure wording showing the chosen basis.

Where a net-based target was used, we set out how much reliance there is on future carbon credits and how those credits are expected to support delivery.The assurer may test whether the level of reliance is quantified or described consistently, and whether the disclosure matches the planning assumptions.Target model, credit reliance schedule, assumptions paper, and evidence that the published description matches the approved plan.

For any credits planned for use, we described the type of credit and the checks we used on quality and credibility before publication.The assurer may probe whether the credit type is specific enough and whether the integrity criteria were actually assessed rather than assumed.Credit procurement or strategy papers, quality assessment checklist, supplier or project documentation, and internal approval records for the published description.

Evidence pack to prepare

The governing policy or written commitment behind this disclosureA methodology / definition note setting out how the disclosure was scoped and preparedSource-system exports the figures or facts were drawn fromThe internal approval / sign-off record for the disclosure before publicationMinutes or records evidencing the relevant engagement or consultation

Common reporting gaps

The information is presented without a date or as-at point.The scope or boundary of the statement is left undefined.Key terms are used inconsistently across the report.Material changes since the previous period are not disclosed.Assertions are made without supporting detail or a source record.Boilerplate is used that does not actually answer what is asked.

Common gaps

Mistakes to avoid when collecting the data

Wrong owner, wrong desk

The request goes to the sustainability team alone, instead of the people who hold the target file, carbon credit records, or assurance papers in the organisation’s own terms.

No clear boundary set

Teams pull figures from different parts of the business without first agreeing which operations, gases, and emissions scopes belong in the pack.

Gross and net figures mixed

Someone combines the underlying target with the version adjusted for credit use, so the source set no longer shows which basis each figure came from.

＋ Show 5 more

Where judgement is often needed

Setting the target boundary after a buy-in or sale

Use the business perimeter that matches the target period, then explain any step-up or step-down from acquisitions, disposals or other portfolio moves so readers can see what changed and why.

Choosing which emissions pool sits inside the target

If your target covers only part of the organisation, state the exact operational areas, sites or activities included and explain how you treated anything close to the edge of that boundary.

Handling different gas lists across locations

Where country rules, contracts or local reporting practice lead to different gas sets, spell out the gases you counted, the basis for any exclusions, and how you kept the approach consistent across the group.

＋ Show 5 more

Examples

Illustrative examples

Synthetic, written by LRA — not from a company report, not text from any standard.

Illustrative (synthetic) example — Manufacturing

We describe our emissions plan on a **gross** basis, then show the smaller **net** figure after using credits, so the reader can see the underlying reduction path and the offset effect separately.
- Our target covers **Scopes 1, 2 and 3** and includes **carbon dioxide, methane and nitrous oxide**.
- The gross pathway is a **42% cut by 2030 from a 2024 base year**; after allowing for credits, the net pathway is **50%**. The credit-backed share is therefore **8 percentage points**, or **160 ktCO2e** out of a **2,000 ktCO2e** base.
- We expect to use **high-integrity avoidance and removal credits** from projects that are independently checked under recognised third-party programmes; the assumptions are that the credits are additional, not double-counted, and remain valid for the period in which we plan to use them.
- A specialist external verifier has reviewed the target design and the calculation approach, and a separate certifier will confirm the credit instruments before retirement.

Illustrative only: shows how to explain a gross target, the linked net outcome, the gases and scopes included, the reliance on credits, the quality assumptions for those credits, and who independently checked the approach.

Illustrative (synthetic) example — Transport and logistics

We set out our climate target on a **gross** basis first, then explain the **net** result after planned credit use, so the operational reduction is visible on its own.
- The target applies to **Scopes 1 and 2**, plus selected **Scope 3** categories, and it covers **carbon dioxide, methane, nitrous oxide and fluorinated gases**.
- From a **1,200 ktCO2e** 2025 base, the gross aim is a **30%** cut by 2035; the net aim is **35%**, with credits contributing the remaining **5 percentage points** or **60 ktCO2e**.
- We expect the credits to be **nature-based removals** issued under a recognised registry, and we assume they are independently verified, permanent for the intended holding period, and not already claimed by another party.
- Our target was reviewed by an external assurance provider, and the credit programme itself is certified by an independent body before we count any units.

Illustrative only: shows a different sector using a gross-first presentation, a net outcome supported by credits, the gases and scopes included, the type and quality expectations for credits, and the independent review/certification trail.

Company reportsReal published reports

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How companies report S2-36 in practice

Examples of full and partial reporting practice. These are evidence-led reviews, not exact disclosure templates to copy.

Hang Lung Properties Limited

Real Estate · Hong Kong · 2025

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Hang Lung Properties Limited’s Sustainability Report 2025 clearly states that its greenhouse gas emissions targets are set on a gross basis, covering Scope 1, 2, and 3 emissions, including purchased goods and services (p.176, p.234). The report partially addresses third-party verification of carbon credits but does not provide a definitive certifier or scheme (p.199). Notably, the report lacks explicit information on carbon credit reliance, the types of gases covered, and whether a sectoral approach is applied, leaving these areas unclear or unaddressed.

DBS Group Holdings

None · Singapore · 2025

Open report →

DBS Group Holdings’ Sustainability Report 2025 provides a clear disclosure of the greenhouse gas (GHG) emissions scopes covered, reporting both location-based and market-based Scope 2 emissions including purchased electricity and cooling (p.79). The report includes detailed energy consumption and total GHG emissions figures for 2024 and 2025 (p.79). However, the report does not clearly disclose the gases covered, whether emissions are reported on a gross or net basis, or provide an associated gross target if a net target exists. Additionally, while there is some context on carbon credit reliance and verifier certification, these disclosures remain unclear and lack definitive headline values (pp.74, 114-115).

Hyundai Engineering & Construction Co.,Ltd.

Construction and Engineering · South Korea · 2025

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Hyundai Engineering & Construction Co., Ltd.'s 2025 Sustainability Report provides data on greenhouse gas emissions, specifically reporting direct GHG emissions (Scope 1) and energy indirect GHG emissions (Scope 2) with quantified values on page 153. However, the report lacks clear information on associated gross targets if net targets exist, carbon credit reliance, gases covered, gross versus net basis, verifier or certifier details, and sectoral approach, with no quotable evidence found for these aspects. Additionally, assumptions regarding credit type and integrity are unclear due to missing methodological or narrative explanations.

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Check your understanding

Scenarios to work through

A group has a long-term emissions aim set on a net basis, but the draft report only says the business will reach net zero by 2040. The working papers also show a separate gross reduction pathway, plus planned use of carbon credits in the final years.

QWhat should the preparer check is included so the target description is complete enough for this disclosure?

Reveal model answer →

A manufacturer has a 2035 climate target covering only carbon dioxide and methane from scopes 1 and 2. The sustainability team wants to describe the target as a single company-wide emissions goal without mentioning the gases excluded or the fact that the pathway is sector-based.

QHow should the preparer decide what to disclose about the gases, scopes, and method behind the target?

Reveal model answer →

A company plans to meet part of its 2030 target by buying credits from a mix of forestry and industrial gas projects. The draft note says only that credits will be used, but it does not explain how much of the target depends on them or what quality checks were applied.

QWhat should the preparer do before finalising the target narrative?

Reveal model answer →

A business has had its climate target reviewed by an external certifier, and the team wants to mention the review in a footnote only. The main target table already shows the end date and headline reduction percentage, but not the reviewer or the gross-versus-net basis.

QWhat should the preparer check is visible in the target disclosure itself?

Reveal model answer →

Framework references

Relevant IFRS / ISSB requirements and related disclosures

Available framework references and nearby disclosures relevant to preparing this requirement.

IFRS / ISSB

s2-36

within IFRS S2: Climate-related Disclosures

Open official source →

Primary

Related & explore

More in IFRS S2 →Browse full catalogue →Disclosure Library home →Search all disclosures →

Go deeper · s2-36

Learn to prepare this disclosure end-to-end

This guide covers one requirement. The IFRS S1 & S2 Reporting course walks the full ISSB workflow — governance, strategy, risk management and metrics — with exercises on your own data.

Available as Guided Flex, Live Cohort, 1:1 Expert Mentorship or Corporate Programme.

Explore the IFRS S1 & S2 course →

FAQ

Questions this page answers

For s2-36, what data do I need to gather before I start drafting the disclosure?+

How do I use the s2-36 step-by-step preparation section in practice?+

Who should own the inputs for s2-36 in my organisation?+

What evidence should I keep ready for assurance on s2-36?+

What are the common reporting gaps or mistakes on s2-36?+

How do I turn the s2-36 data into a draft disclosure?+

What does the synthetic example on the s2-36 page show me?+

How can I use the Prep & Assurance workbook for s2-36?+

What is the printable Library Card for s2-36 for?+

Can I reuse data from s2-36 for ESRS E1 work?+

What should I check before I send the s2-36 draft for assurance?+

	Report A	Report B	Report C
Datapoint 1	✓ p.213	unclear	✓ p.87
Datapoint 2	✓ p.214	—	✓ p.90

Greenhouse-gas-target specifics and carbon credits

Key information to prepare

How to prepare it

Request the target and credit evidence pack

Notes that turn data into a disclosure

Preparation tools & forms

For each claim, check the evidence

Evidence pack to prepare

Common reporting gaps

Mistakes to avoid when collecting the data

Where judgement is often needed

Illustrative examples

How companies report S2-36 in practice

Scenarios to work through

Relevant IFRS / ISSB requirements and related disclosures

Questions this page answers

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