ISSB for Automotive Companies: 2026 Compliance Guide
- →Automotive companies in ISSB scope must report on ESRS modules E1, E2, E5, S1, S2, G1. Average sector readiness is only 48%.
- →Key compliance risks: Vehicle use-phase emissions (Scope 3 Cat 11) and Supply chain (S2).
- →CBAM also applies to this sector — embedded carbon reporting required from 2026.
Which ISSB requirements apply to Automotive?
Vehicle manufacturers, automotive suppliers, dealers and mobility service providers.
For ISSB compliance, Automotive companies must report on the following ESRS topical standards where material: E1, E2, E5, S1, S2, G1. The double materiality assessment will determine which of these modules require full disclosure.
Average compliance readiness across the Automotive sector is currently 48% — significantly below the threshold needed for a clean assurance opinion. Most companies in this sector have work to do before their reporting deadline.
Key ESG risks for Automotive companies
ISSB requires Automotive companies to disclose impacts, risks and opportunities across all material topics. The most commonly material topics for this sector are:
Vehicle use-phase emissions (Scope 3 Cat 11)
Supply chain (S2)
Battery materials (E4)
Automotive companies that fail their double materiality assessment risk under-reporting material topics. Auditors pay particular attention to this sector's vehicle use-phase emissions (scope 3 cat 11).
Scope 3 emissions for Automotive
Scope 3 emissions are typically the largest part of a Automotive company's carbon footprint. The most material Scope 3 categories for this sector are categories 1, 4, 11, 12 under the GHG Protocol.
For ISSB compliance under ESRS E1-5, you must:
1. Screen all 15 Scope 3 categories 2. Report on material categories with documented methodology 3. Set Scope 3 reduction targets for material categories 4. Obtain third-party assurance over your Scope 3 data
ESGMaster automates Scope 3 calculation for Automotive companies using DEFRA 2026 emission factors.
Start with a spend-based Scope 3 screening across all 15 categories. This identifies which categories are material without requiring detailed activity data — you can then focus detailed calculation effort where it matters most.
ISSB compliance roadmap for Automotive
Phase 1 — Assess (Months 1–3) Determine your ISSB scope status, complete a double materiality assessment, and run a gap analysis against ESRS E1, E2, E5, S1, S2, G1.
Phase 2 — Collect (Months 4–9) Build data collection processes for all material ESRS metrics. For Automotive, focus on vehicle use-phase emissions (scope 3 cat 11) data first — it is typically the hardest to collect and the most scrutinised by auditors.
Phase 3 — Report (Months 10–12) Draft your ISSB report, engage third-party assurance, implement XBRL tagging, and file with your national authority.
ESGMaster compresses this timeline by automating Phases 1 and 2 — delivering your gap analysis in 8 seconds and your draft report in hours.
ESRS modules for Automotive — materiality guide
| ESRS Module | Topic | Typical materiality for Automotive | Key data required |
|---|---|---|---|
| E1 | Climate change | High | Scope 1, 2, 3 GHG emissions |
| E2 | Pollution | High | Pollutant emissions, waste |
| E5 | Circular economy | High | Waste generation, circularity |
| S1 | Own workforce | High | Headcount, pay gap, turnover |
| S2 | Value chain workers | High | Supplier audits, child labour |
| G1 | Business conduct | High | Anti-corruption, lobbying |
Frequently asked questions
Does ISSB apply to Automotive companies?
Yes, if your Automotive company meets the ISSB size thresholds: 1,000+ employees AND €450M+ net turnover (post-Omnibus). Even companies below these thresholds face ISSB-equivalent data requests from their large customers.
Which ESRS modules must Automotive companies report on?
Based on typical Automotive business models, the most commonly material ESRS modules are E1, E2, E5, S1, S2, G1. However, you must conduct your own double materiality assessment — the final list depends on your specific operations and value chain.
What Scope 3 categories matter most for Automotive?
The most material Scope 3 categories for Automotive companies are categories 1, 4, 11, 12 under the GHG Protocol. Category 1 is typically the largest source of emissions in this sector.
How long does ISSB compliance take for a Automotive company?
From zero to first ISSB report typically takes 12–18 months for Automotive companies. The biggest time bottlenecks are Scope 3 data collection and third-party assurance provider engagement. ESGMaster reduces the data collection phase to weeks rather than months.
What does ISSB compliance cost for a Automotive company?
Consultant-led ISSB compliance for Automotive companies typically costs €100,000–€400,000 in year one, depending on complexity and number of subsidiaries. AI-powered platforms like ESGMaster reduce first-year costs by 60–80%.