PwC's accounting podcast Sustainability now: GHG reporting questions answered
Apr 24, 2025
Marcin Olewinski, a partner at PwC’s Assurance practice with over 20 years in the energy sector, shares invaluable insights on greenhouse gas (GHG) emissions reporting in this engaging discussion. He tackles complex challenges of reporting under the European Sustainability Reporting Standards, especially concerning organizational boundaries and emissions from leased assets. The conversation also deep dives into Scope 3 emissions, clarifying categories and measurement intricacies. Marcin emphasizes the need for updated practices to navigate the evolving landscape of sustainability.
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ESRS's Unique Boundary Approach
- ESRS uses a two-step approach for organizational boundaries focusing on financial consolidation and operational control.
- This differs from the GHG Protocol and creates unique practical challenges for companies.
Lease Emissions Reporting Complexity
- ESRS requires lessees to report emissions from right-of-use leased assets as these are on their balance sheets.
- Lessors may face double counting issues as both parties might report emissions differently depending on lease accounting.
Investment Entities' Emissions Boundaries
- Investment entities applying the IFRS 10 exception report investments at fair value, not by consolidation.
- They must assess operational control to determine if emissions are in scope 1, 2, or scope 3 category 15 reporting.