Volume 2—Appliance Manufacturing

Title: Volume 2—Appliance Manufacturing

Category: Part B—Industry-based Guidance for IFRS S2

Source: IFRS Foundation (https://www.ifrs.org)

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PDF: https://www.ifrs.org/content/dam/ifrs/publications/pdf-standards-issb/english/2023/issued/part-b/ifrs-s2-ibg-volume-2-appliance-manufacturing-part-b.pdf?bypass=on

Year: 2023

Type: Industry

Industry-based Guidance on implementing

Climate-related Disclosures

Volume 2—Appliance Manufacturing

June 2023

IFRS S2

IFRS

® Sustainability Disclosure Standard

International Sustainability Standards Board

This Industry-based Guidance accompanies IFRS S2 Climate related Disclosures (published

June 2023; see separate booklet) and is issued by the International Sustainability

Standards Board (ISSB).

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IFRS S2 CLIMATE-RELATED DISCLOSURES–JUNE 2023

Introduction

This volume is part of the Industry-based Guidance on Implementing IFRS S2 Climate-related

Disclosures. This guidance suggests possible ways to apply some of the disclosure requirements in

IFRS S2 but does not create additional requirements.

This volume suggests possible ways to identify, measure and disclose information about

climate-related risks and opportunities that are associated with particular business

models, economic activities and other common features that characterise participation in

this industry.

This industry-based guidance has been derived from Sustainability Accounting Standards

Board (SASB) Standards, which are maintained by the International Sustainability

Standards Board (ISSB). The metric codes used in SASB Standards have been included for

ease of reference. For additional context regarding the industry-based guidance contained

in this volume, including structure and terminology, application and illustrative

examples, refer to Section III of the Accompanying Guidance to IFRS S2.

IFRS S2 INDUSTRY-BASED GUIDANCE

Volume 2—Appliance Manufacturing

Industry Description

Appliance Manufacturing industry entities design and manufacture household appliances

and hand tools. Entities in this industry sell and manufacture products all over the

world, primarily selling products to consumers through retailers.

Sustainability Disclosure Topics & Metrics

Table 1. Sustainability Disclosure Topics & Metrics

TOPIC

METRIC

CATEGORY

UNIT OF

MEASURE

CODE

Annual production 2

Quantitative

Number of

units

CG-AM-000.A

Product Lifecycle Environmental Impacts

Topic Summary

Entities in the Appliance Manufacturing industry seek to differentiate their products

from those of competitors. One important differentiating factor is the lifecycle

environmental impact of products and an entity’s ability to design products with the

entire lifecycle in mind, from creation and use to disposal. This includes appliance energy

and water efficiency, which account for a significant proportion of a home’s energy and

water use, as well as designing for and facilitating safe end-of-life disposal and recycling.

Entities designing and manufacturing products to decrease lifecycle environmental

impacts are more likely to increase market share owing to a lower cost of ownership, and

they may better manage increased regulation related to issues such as extended producer

responsibility.

Note to CG-AM-000.A – Production shall be disclosed as the number of units produced by

product category, where relevant product categories may include small appliances and major

appliances.

IFRS S2 CLIMATE-RELATED DISCLOSURES–JUNE 2023

Metrics

CG-AM-410a.1. Percentage of eligible products by revenue certified to an energy

efficiency certification

The entity shall disclose the percentage of its revenue from eligible products

certified to an energy efficiency certification.

1.1

The entity shall calculate the percentage as the revenue from products

meeting the requirements for the applicable certification divided by total

revenue from products eligible for certification by each certification.

1.1.1

revenue from products eligible for certification by each certification.

1.1.1

Eligible products are those in a product category for which

certification exists, such as: heating and cooling product categories

such

air

purifiers,

clothes

dryers,

clothes

washers,

dehumidifiers,

dishwashers,

freezers,

refrigerators,

air

conditioners, boilers, ductless heating and cooling, furnaces, heat

pumps and ventilation fans.

The scope of disclosure includes products that meet the requirements of the most

current version of the applicable certification requirements.

2.1

If the entity has products certified to a previous version of certification

requirements, it shall disclose this information, including to which version

its products are certified, a breakdown of how many products are certified

to that version and the time line(s) for achieving certification to the most

current requirements version.

For each jurisdiction where the entity sells products, the entity shall disclose the

applicable certification programme.

CG-AM-410a.2. Percentage of eligible products by revenue certified to an

environmental product lifecycle standard

The entity shall disclose the percentage of its revenue from eligible products

certified to a third-party environmental product lifecycle standard.

1.1

Environmental product lifecycle standard is defined as a certification

1.1

Environmental product lifecycle standard is defined as a certification

programme

standard

focused

product

design

and

materials,

manufacturing processes, product performance during use-phase, and

product end-of-life.

1.2

The entity shall calculate the percentage as the revenue from products

meeting the requirements for the applicable certification divided by total

revenue from products eligible for certification by each certification.

1.2.1

revenue from products eligible for certification by each certification.

1.2.1

Eligible products are those in a product category for which

certification exists, including: refrigeration appliances, washers,

dryers, cooking appliances, air conditioners, microwave oven

appliances, dehumidifier appliances and floor care appliances.

The scope of disclosure includes products that meet the requirements of the most

current version of the applicable certification requirements.

IFRS S2 INDUSTRY-BASED GUIDANCE

2.1

If the entity has products certified to a previous version of certification

requirements, it shall disclose this information, including to which version

its products are certified, a breakdown of how many products are certified

to that version, and its time line(s) for achieving certification to the most

current requirements version.

For each jurisdiction where the entity sells products, the entity shall disclose the

applicable certification programme or disclose the applicable international

certification programme.

CG-AM-410a.3. Description of efforts to manage products’ end-of-life impacts

The entity shall describe its efforts to manage the end-of-life impacts of its

products, including those related to safe and proper disposal or recycling of

constituent chemicals and other product components, which may include toxic

heavy metals (for example, mercury and cadmium), rigid polymers, refrigerants

and other metals (for example, steel and aluminium).

The entity shall describe the scope of its efforts, including to which product

categories, business segments or operating regions they relate.

The entity shall discuss how it includes end-of-life considerations in product

design such as:

3.1

The entity shall discuss how it includes end-of-life considerations in product

design such as:

3.1

Use of materials that are easily and commonly recyclable in existing

recycling infrastructure

3.2

Eliminating or minimising the use of hazardous materials or materials

that may otherwise pose environmental harm upon disposal (for example,

refrigerants with ozone depleting potential or global warming potential)

3.3

Designing products for disassembly (i.e., designing products so they can be

3.3

Designing products for disassembly (i.e., designing products so they can be

easily, rapidly, and cost-effectively disassembled with commonly available

tools)

3.4

Proper labelling of products and their component materials to facilitate

disassembly and recycling

The entity shall discuss its participation in extended producer responsibility (EPR)

initiatives, including:

4.1

Whether the entity directly conducts product take-back, recovery and

initiatives, including:

4.1

Whether the entity directly conducts product take-back, recovery and

recycling or if the entity supports infrastructure for product recovery and

recycling through joint ventures, partnerships with retailers and others, or

by funding research into recycling technologies

4.2

Whether the initiative is voluntary or mandatory

4.3

Relevant performance measures or targets for the initiative such as the

total amount of material recovered and the total amount of material

recycled

IFRS S2 CLIMATE-RELATED DISCLOSURES–JUNE 2023

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