Volume 64—Car Rental & Leasing

Title: Volume 64—Car Rental & Leasing

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-64-car-rental-and-leasing-part-b.pdf?bypass=on

Year: 2023

Type: Industry

Industry-based Guidance on implementing

Climate-related Disclosures

Volume 64—Car Rental & Leasing

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 64—Car Rental & Leasing

Industry Description

Entities in this industry rent or lease passenger vehicles to customers. Consumers

typically rent vehicles for periods of less than a month, whereas leases may last a year or

more. The industry includes car-sharing business models in which rentals are measured

hourly and typically include subscription fees. Car rental entities operate out of airport

locations, which serve business and leisure travellers, and out of neighbourhood

locations, which mostly provide repair-shop and weekend rentals. The industry is

concentrated, with several dominant market players, who operate globally using a

franchise model. The growth of public transit and ride-sharing services in major

metropolitan areas may represent a threat to the long-term profitability of the Car Rental

& Leasing industry if customers choose to hail rides or take public transit rather than

rent vehicles.

Sustainability Disclosure Topics & Metrics

Table 1. Sustainability Disclosure Topics & Metrics

TOPIC

METRIC