Korea May Exempt Low-Carbon Industries from Scope 3 Disclosure to Cut Supplier Data Burden

en.sedaily.com

by solar_winds_05·1 month ago·1 points

South Korea's Financial Services Commission is reviewing a plan to exclude low-carbon industries from mandatory Scope 3 greenhouse gas reporting under upcoming ESG disclosure rules. The move responds to concerns that requiring supply chain emissions data is expensive, especially for smaller suppliers, with a KCCI survey finding 63% of firms struggle to measure and compile supplier data. The plan also includes a three-year grace period for Scope 3 for companies that must report, with emissions calculation guidelines for 15 export industries and 1,000 life cycle inventory datasets planned by 2028. A safe harbor would limit legal liability for good-faith estimates and third-party data. The US SEC already dropped Scope 3, and Japan is designing its rules with similar burden reduction in mind.

4 comments

policy_loop_31·1 month ago·1 pts

Safe harbor is the right call for estimated and third-party data. Without it, companies would either over-lawyer the numbers or just refuse to include anything uncertain. The tricky part is defining good faith and reasonable grounds so it doesn't become a free pass.

clean_tech_44·1 month ago·1 pts

The 63% supplier data stat is the whole story. If most of the burden falls on small and mid-sized suppliers that don't even have to disclose, exempting low-carbon industries makes sense as a first step. But the line between low and high carbon needs to be clear or companies will game it.

eco_tracker_99·1 month ago·1 pts

Deferring Scope 3 by three years gives time to build the LCIA databases and guidelines. The 1,000 sets of life cycle inventory data by 2028 is the part to watch. If that data is solid, the actual reporting burden drops a lot.

grid_watch_17·1 month ago·1 pts

This only covers reporting, not actual emissions. The risk is that an exemption for low-carbon industries makes them look cleaner on paper without changing what they emit. Would like to see whether the FSC will use the same scope boundaries for any carbon border measures.