Adopting ISO 14064 series of standards

Benjamin Tan

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Contents
1. 2. 3. 4. 5. 6. 7. Need for ISO Series of Standards Publication of the ISO 14064 standards Overview of 14064 standards Key Requirements & Approach Roles and responsibilities Verification Approach How can the standards be used?

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1. Need for the ISO series of standards

Background

The Intergovernmental Panel on Climate Change (IPCC) Published guidance for developing national inventories under the Kyoto Protocol in 1997. Organisations were increasingly interested in reporting their greenhouse gas (GHG) emissions. However, organisations took their own approach to quantification. In addition, GHG information was not readily comparable

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Need for the ISO series of standards

Continued

In September 2001, the first edition of the GHG Protocol had been published by the World Business Council for Sustainable Development (WBCSD) and the World Resources Institute (WRI). This was the first attempt at harmonisation at the organisational level. By June 2002, the ISO technical committee on Environmental Management had established a working group to develop international standard(s) for monitoring, reporting and verifying GHG emissions and removals On 5 December 2005, the standards were launched at a side event to the Conference to the Parties to the United Nations Framework on Climate Change (UNFCCC) i.e. COP11, Montral Canada

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2. Publication of ISO 14064 Standards

In March 2006, the ISO working group on Climate Change published 3 standards: ISO 14064 Part 1 ISO 14064 Part 2 ISO 14064 Part 3

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Publication of ISO 14064 Standards

ISO 14064 : 2006 Part 1 - Specification with guidance at the organization level for quantification and reporting of greenhouse gas emissions and removals; ISO 14064 : 2006 Part 2 - Specification with guidance at the project level for quantification and reporting of greenhouse gas emissions reductions or removal enhancements; and ISO 14064 : 2006 Part 3 - Specification with guidance for the validation and verification of greenhouse gas assertions.

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3. Overview of the ISO14064 standards

Understanding each of the three ISO14064 standards and their scope Explain how the standards work together

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ISO 14064: Part 1

This standard is formally titled Specification with guidance at the organization level for quantification and reporting of greenhouse gas emissions and removals Details the principles and requirements for designing, developing, managing and reporting organization level GHG inventories. Includes requirements for determining boundaries, quantifying emissions and removals, and identifying specific company actions or activities aimed at improving GHG management. Includes requirements and guidance on quality management of the GHG inventory, reporting, internal auditing and the organization's responsibilities for verification.

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ISO 14064: Part 2

This standard is formally titled Specification with guidance at the project level for quantification, monitoring and reporting of greenhouse gas emissions reductions and removals enhancements This focuses on GHG projects or project based activities specifically designed to reduce GHG emissions or increase GHG removals. Includes principles and requirements for determining project baseline scenarios and for monitoring, quantifying and reporting project performance relative to that baseline and provides the basis for GHG projects to be validated and verified.

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ISO 14064: Part 3

This standard is formally titled Specification with guidance for the validation of greenhouse gas
assertions

This part of ISO 14064 provides principles, requirements and guidance for those conducting GHG information validation and verification. It describes a process for providing assurance to intended users that an organization's or project's GHG assertions are complete, accurate, consistent, transparent and without material discrepancies.

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ISO 14064 Series of Standards

Part 1 Part 2 Part 3

At the Organisational Level quantification and reporting of GHG emissions and removals

At the project level For the validation and verification of greenhouse gas assertions quantification and reporting of GHG emissions reductions or removal enhancements

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ISO14065 : 2007

The ISO14064 series of standards work together with a newer standard: ISO14065 ISO14065 is formally titled Greenhouse gases Requirements for greenhouse gas validation and verification bodies for use in accreditation and other forms of recognition In plain terms, it is a standard which defines which firms can conduct GHG validations and verifications

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Relationships between the standards

ISO14064:1 and ISO14064:2 are used to develop documentation and reports called GHG assertions A validation or verification body (who meets the requirements of ISO14065, e.g. LRQA) can use the process outlined in ISO14064:3 to audit these GHG assertions The rigour of these audits (level of assurance) is defined by the needs of the intended user of the information in the GHG assertion All of these activities may happen in the context of the requirements of the GHG programme

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Relationship between three parts of ISO 14064 and ISO 14065

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4. Key Requirements & Approach

Decisions to be made regarding the scope of your inventory: a) The parts of the organisation to be included (organisational boundary); b) The parts of your operations and the nature of emissions and removals (if any) to be included (operational boundary); c) The level of assurance to be applied by verification; d) The Baseline to use; and e) How to communicate your inventory within an Assertion or detailed Report. f) Quantification Steps

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a) Defining the Organisational Boundary

Two options: The Control Approach: The organisation would quantify the GHG emissions from all facilities over which it has Operational control, or Financial control. The Equity Share Approach: The organisation would account for its portion of GHG emissions from its facilities. E.g. for a 50:50 joint venture company, the organisation would account for 50% of the total emissions.

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Defining the Organisational Boundary

Facilities to be considered for inclusion:

Combustion facilities. Process facilities. Office locations. Laboratory/Research facilities. Vehicle operations.

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b) Defining the Operational Boundary

The inventory must include: All Greenhouse Gases (CO2, CH4, N2O, PFCs, HFCs, SF6) Direct emissions Such as process emissions and combustion emissions from sources that the organisation owns/controls. Energy Indirect emissions Emissions from electricity, heat or steam imported into facilities that the organisation owns/controls. The inventory may include: Other Indirect emissions Emissions from facilities or sources that the organisation does not own or control.

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Defining the Operational Boundary

Emissions to be considered for inclusion: Direct: Combustion emissions from boilers, kilns, generators, on-road and off-road vehicles Process emissions from manufacturing processes, waste water treatment, waste incineration etc. Energy Indirect Energy indirect from electricity consumed. Other Indirect Combustion emissions from contractors vehicles etc. Process emissions from suppliers processes.

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Organisational and operational boundaries

Organisational boundaries Parent Company

Company A Oil & Gas

Company B Shipping

Company C Power generation

Refinery Refinery 1 2

Port

Ship fleet

Coal mine

Power plant

Operational boundaries

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c) Deciding the Level of Assurance to apply

The level of assurance to be applied to verification: Reasonable Assurance Reduces the verification risk to a low level; Samples data from all raw/source data levels, through all transpositions and aggregations; More man days. Limited Assurance Reduces the verification risk to a medium level; Checks data streams from raw/source data level, but samples through all transpositions and aggregations; Less man days.

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Examples of Assurance Statements

Reasonable Assurance Statement
The statement could be worded as: Based on the process and procedures conducted, the GHG assertion is materially correct and is a fair representation of the GHG data and information, and is prepared in accordance with the related International Standard on GHG quantification, monitoring and reporting, or to relevant national standards or practices Note: materiality concept that individual or the aggregation of errors, omissions and misrepresentations could affect the greenhouse gas assertion and could influence the intended users decisions

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Examples of Assurance Statements

Limited Assurance Statement
The statement could be worded as: Based on the process and procedures conducted, the GHG assertion there is no evidence that the GHG assertion is not materially correct and is not a fair representation of GHG data and information, and has not been prepared in accordance with the related International Standard on GHG quantification, monitoring and reporting, or to relevant national standards or practices.

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d) Deciding the baseline period to use

Baseline Usually a 12 month period; Must be quantified; Must use a consistent approach to quantification as used in later years; Must be complete with regard to all sources.

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e) Deciding how to communicate

GHG Assertion or Claim Can be data presented within a wider Environmental or CSR Report; Can be normalised data to unit of turnover or unit of service. GHG Report Must include data; Has wider reporting requirements with regard to systems, quality management, training, report frequency etc., etc.

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f) Quantification steps

In plain terms these steps are:

Identify GHG sources and sinks

Choose what you are going to quantify Choose how you are going to quantify Collect the information you need Find or develop the factor to convert your information to tCO2e Perform the math to reach tCO2e values

Select quantification methodology

Select and collect activity data

Select or develop emissions factors

Calculate emissions and removals

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5. Roles and responsibilities & Important Terms

Understanding of the players with roles and responsibilities in the standards and important terms.

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Organisation & Facility

ISO14064 adopts definitions consistent with general understanding of these terms: Organisation - company, corporation, firm, enterprise, authority or institution, or part or combination thereof, whether incorporated or not, public or private that has its own functions and administration Facility single installation, set of installations or production processes (stationary or mobile), which can be defined with a single geographic boundary, organisational unit or production process.

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Verification?

Verification is the process of confirming whether a statement about actual circumstances or past performance is true and correct Only statements about actual performance, events or circumstances can be verified Verification focuses on data, information, facts and records Both GHG inventories and GHG projects can be verified

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Validation?

Validation is a process of systematic assessment to form an opinion as to whether statements about future performance or eligibility are reasonable A validation examines assumptions, methodologies, justifications, plans and procedures It focuses on systems, processes and baselines Undertaken on entry to the GHG programme or prior to the creation of credits

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Validator and Verifier

validator competent and independent person or persons with the responsibility for performing and reporting on the results of a validation. ISO14064 verifier competent and independent person or persons with the responsibility for performing and reporting on the results of a verification ISO 14064

Fundamentally, these are GHG auditors. The firm that undertakes the work is called a validation or verification body It is the role of validators and verifiers to provide an unbiased opinion on the veracity of GHG statements.

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Intended User
The intended user is the individual or organisation identified by those reporting GHG-related information as being the one who relies on that information to make decisions. ISO14064

In affect, this is the target audience of the information. This could be a specific group (e.g. the GHG Programme Authority) or multiple groups such as stakeholders (e.g. the local community, general public or non-government organisations).

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Relationships between players

The responsible party is held accountable by the intended user for the accuracy and completeness of the information

The validator or verifier provides comfort to the intended user that the report is accurate and complete

The validator or verifier must be independent from the responsible party to give an unbiased opinion to the intended user

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6. Our Verification Approach

To ensure: A detailed review of your existing systems; We can assist you to implement robust mechanisms which build upon existing mechanisms such ISO 14001.
Initial Review Initial Review of: existing systems for data collection, management and reporting; existing inventories for completeness, consistency, accuracy; compliance with the chosen standard; sample facilities Verification Planning Reporting and presentation of initial findings (for both short-term action and longer term improvement)

Verification Verification of Information & Data Verification of GHG Assertion or Report

Reporting Preparation of Final Report and Presentation of Findings (for both short-term action and longer term improvement) Preparation of Assurance Statement

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Our Verification Approach Future Years

Initial Review Initial Review of: changes to systems for data collection, management and reporting; changes to inventories; on-going compliance with the chosen standard reports of sample facilities possibly completed by other assessors Verification Planning Reporting and presentation of initial findings (for both short-term action and longer term improvement) Verification Verification of Information & Data Verification of GHG Assertion or Report

To ensure: Best use of external audits; Limited disruption to operations; Detailed confirmation of practices.

Reporting Preparation of Final Report and Presentation of Findings (for both short-term action and longer term improvement) Preparation of Assurance Statement

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7. How can the standard be used?

The standard can be used: To implement robust systems for the monitoring and reporting of GHG emissions To facilitate the development and implementation of an organization's GHG management strategies and plans, To facilitate the ability to track performance and progress in the reduction of GHG emissions and/or the increase in GHG removals, To enhance the credibility, consistency and transparency of GHG quantification, monitoring and reporting to any interested parties, Supports and facilitates GHG unit trading Improved management of GHG related liabilities and assets

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We have only one Earth

We all share the same habitat! We can do our part to protect this one planet

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Lloyds Register Quality Assurance Limited

Presenter: Office Number: Email: Benjamin Tan Senior Assessor, Management Systems 6891 7281 benjamin.tan@lr.org

You can also contact Ms. Janice Chee Senior Sales & Marketing Executive Address: 460 Alexandra Road #28-01/02 PSA Building Singapore 119963 T +65 6891 7281 M +65 9877 9090 F +65 6278 7683 Email: janice.chee@lr.org Website: www.sea.lrqa.com

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