2 0 2 2 | B U R E A U V E R I TA S C E R T I F I C AT I O N

CORPORATE
SUSTAINABILITY &
CLIMATE CHANGE
RACE TO NET ZERO

B Y L U FAL D Y E R N AN D A – AU G U S T 2 0 2 2
THE GLOBAL RISK
LANDSCAPE

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SOURCE – OLIVER WYMAN - HTTPS://WWW.OLIVERWYMAN.COM/OUR-EXPERTISE/INSIGHTS/2020/JAN/GLOBALRISKS2020.HTML
ESG IN NUMBERS: THE RISE AND RISE OF RESPONSIBLE
INVESTING
Responsible Assets value in 2012 and 20181 ESG proposition and value-creation 3
0.59
$ 13.3 Trillion 2012 8.8 3.7
0.18
Europe
Japan
U.S.
Canada
Creating new revenue streams by using ESG
0.01 Aus. & NZ 14%
15% objectives to identify new products, customers
131.2% or geographic markets
9%
$ 30.7 Trillion 2018 14.1 12.0 2.2 1.7 0.7
8%
Contributing to ESG issues important to larger
13%
community
Global Investors interest in Responsible Investments2 27%

19%
71% of global investors were 85% of global investors were Changing business processes to incorporate
interested in sustainable investing interested in sustainable investing good ESG Practices
15%

Making long-term strategic investments to

45% address ESG issues that have bearing on
35% organization
2015 2019
Compliance with regulations and meeting
accepted industry expectations for performance,
2009 2019 transparency, and accountabiliy
N=238 N=573

BUREAU VERITAS CERTIFICATION Source: 1. Global Sustainable Investment Alliance (GSIA), 2.Morgan Stanley ESG Survey; 3. McKinsey ESG Survey
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CORPORATE RESPONSIBILITY & SUSTAINABILITY
RESPONSIBLE
PRODUCTION
Manage your organization’s
consumption of water,
materials, and reduce your
direct impact on emissions to
land, air and water.
SUSTAINABLE SUPPLY
CHAIN
Ensure sustainable resource use
and lower your environmental
impact.
CLIMATE CHANGE
Improve energy efficiency and
verify, reduce and offset your
carbon emissions to give
transparency to climate change
impact mitigation.
CORPORATE SOCIAL
RESPONSIBILITY
Control your supply chain and
help implement and promote good
labor practices, human rights and
fair operating practices at work.
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BUREAU VERITAS CERTIFICATION
CORPORATE RESPONSIBILITY & SUSTAINABILITY SERVICES

Governance

Environment Social

Climate Change

Sustainable Supply Chain

Corporate Social Responsibility

Responsible Responsible CSR Health Social Ethics &

Energy Carbon
Production Sourcing Reporting & Safety Accountability Compliance

• Bioenergy • Carbon Footprint • Environment MS • Responsible • Sustainability • Health & Safety MS • SEDEX Members • Business Ethics
• Energy • Carbon Offsetting (ISO 14001) Sourcing Report Assurance (ISO 45001) Ethical Trade • Fair Competition
Certificates & Removal • Water Management • Forest & Wood • Socially Responsible • BIOSAFETY MS Audits (SMETA) • Anti-bribery
• Energy • Carbon Neutrality • Waste Management • Metals & Minerals Investments • SAFEGUARD • Social • Data Protection
Management • Net Zero Target & Recycling • Biomaterials • EU Taxonomy Accountability & Privacy
• Climate / Green • Food & Seafood (SA8000)
Finance • Gender Equality

Circular+
BUREAU VERITAS CERTIFICATION CLARITY Sustainability Management Solution
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REGULATORY EMISSIONS REPORTING REGIMES

There are now 21 Emissions Trading Systems (ETS) covering 29 jurisdictions with an ETS in force. Another nine jurisdictions
are putting in place their systems for operation in the next few years, including China, Germany and Colombia.

+ China + Germany + Virginia*

NAME OF THE PRESENTATION

SOURCE: ICAP ETS REPORT Slide / 5
THE RACE TO NET ZERO
PROFILING THE ORGANIZATIONS INVOLVED

2,174 companies have pledged targets for emissions reductions in this initiative

Almost 433 have pledged to reduce emissions in line with the 1.5°C science-based targets and to reach Net Zero by a
certain date

Most are listed companies, many already have their sustainability reports and carbon emissions verified

# of companies
90
80
70
60
50
40
30
20
10
0

SOURCE: SCIENCE BASED TARGETS INITIATIVE, UNFCCC

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DISTRIBUTION OF SBTI COMPANIES BY BV SECTORS

# of companies by BV Sectors

Consumers goods & Retail

334
15% Food & Agriculture
485
22% Construction & Civil Work

Power and Utilities

Banking & Insurance

12
1% 323
27
1%
Total Companies: 15% Transport, Aerospace, Rail (excl. Auto)
55
3% 2,174 Health
55
3% Automotive
79
4% Chemicals

154 267 Metals & Minerals

7% 12%
Oil & Gas
158
7% 225 List of companies taking action
10%
Others

SCIENCE BASED TARGET INITIATIVE ANALYSIS- NOVEMBER 2021 NOTE: SBTI SECTORS ARE CLASSIFIED AS BV SECTORS SOURCE: SBTI
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COMPANIES BY STATUS, NET ZERO COMMITMENTS & TARGETS
SET BY THEM
# of companies by Status # of Net- Zero Committed Companies

1,485

650
773
36% 39

Total Yes No Commitment Unavailable

# of companies
Companies:
Targets set by companies 1,402
2,174
1401
64%

433
192 147

1.5°C Well-below 2°C 2°C Targets Unavailable

Committed Target Set
# of companies
COMMITTED- INTENT TO SET A SCIENCE BASED TARGET
SCIENCE BASED TARGET INITIATIVE ANALYSIS- NOVEMBER 2021 SOURCE: SBTI
TARGET SET- COMPANY HAS SET THE SCIENCE BASED TARGET Slide / 8
ESG - THE CARBON DISCLOSURE PROJECT

NAME OF THE PRESENTATION

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 ORGANIZATIONS COMMITTED TO REDUCE
CARBON FOOTPRINT
THEIR CARBON FOOTPRINT
HOSPITALITY/
AGRICULTURE AUTOMOTIVE TRAVEL RESTAURANTS

RETAIL MANUFACTURING SOFTWARE CONSTRUCTION

& Many more…

SOURCE: Forbes_List of Companies Committed To Reduce Their Carbon Footprint Slide / 10
 BENEFITS OF REDUCING GHG EMISSIONS

Reduce impacts to Associated Prepare for Attract capital Cost Savings

human health, reputational benefits future regulatory investments (save energy save
biodiversity and the of taking action on compliance & money, less waste
environment emissions, moving towards less cost)
differentiates from Carbon Neutrality
the competitors

CFV for Organization © Copyright Bureau Veritas Slide / 11

GHG INVENTORY
GHG inventory:
List of GHG sources, GHG sinks & their quantified
GHG emissions, GHG Removals.

• Scope 1 emissions (Direct Emission):

are from organization itself directly produces, depending on
the its sector and operations. i.e. from the sources that are
owned/controlled by organization.

• Scope 2 emissions (Indirect Emission):

are from GHG sources that are not owned/controlled by the
organization. i.e. due to purchased energy in the form of
electricity, heat/ steam

• Scope 3 emissions:
are from upstream (raw materials, production &
transportation of bought-in products, services) & downstream
(sale, use & disposal of the goods the company produces)

Source: GHG Protocol & ISO 14064 Series

CFV for Organization © Copyright Bureau Veritas Slide / 12

1.5ºC PATHWAY EMISSIONS

• In order to reach the 1.5°C goal

we must remain within the 570
GTCO2 carbon budget

• By 2050 all remaining

emissions need to be fully
offset (net zero)

• To set on this path we must

reduce net emissions by 23
GTCO2 by 2030

Source: McKinsey 1.5 deg C Scenario Analysis

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CARBON OFFSET PROGRAMS

• Markets: Mandatory / compliance schemes and voluntary programs.

 COMPLIANCE MARKETS:  VOLUNTARY MARKETS:

• created and regulated by mandatory national, regional, o\r • functions outside of compliance markets and enable companies and

international carbon reduction regimes individuals to purchase carbon offsets on a voluntary basis with no
intended use for compliance purposes.
• credits may in some instances be purchased by voluntary, non-
regulated entities • serve as a niche for micro-scale projects

• demand for compliance offset credits is driven by regulatory • credits, unless explicitly accepted into the compliance regime, are

obligations, not allowed to fulfill compliance market demand.

• Its prices tend to be higher than offset credits issued for the • demand in the voluntary market are created only by voluntary buyers

voluntary market. (corporations, institutions, and individuals)

• Schemes: CDM, JI • as Voluntary offset credits cannot be used in compliance markets,

they tend to be cheaper.

• Schemes: Verified Carbon Standard (VCS), Gold Standard (GS),

American Carbon Registry, Climate Action Reserve, etc.

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 BENEFITS OF CARBON OFFSETTING

Remove and avoid

Evaluate and report Prove your project’s emissions Open the door to
the actual impact Carbon credits are To help your international
of your GHG removal legitimate and business meet cooperation
and offsetting demonstrate carbon neutral and With carbon offset
projects transparency net zero targets credits

CFV for Organization © Copyright Bureau Veritas Slide / 15

COMPLIANCE CARBON OFFSET PROGRAMS

GEOGRAPHICAL WHO VALIDATES/ LABEL USED FOR

SN PROGRAM STATUS WHO APPROVES
REGION VERIFIES OFFSET CREDITS

Clean Development Designated Operational CDM Executive Certified emission

01 Developing Countries Active
Mechanism (CDM) Entities (DOEs) Board reduction (CER)

Joint Implementation Active Designated Operational JI Supervisory Emission Reduction

02 Developing Countries
(JI) Entities (DOEs) committee Unit (ERU)

ARB-Accredited Offset All Resource Board

California Compliance ARB (California Air
03 USA Active Verification Bodies and Offset Credit
Offset Market Resources Board)
Offset Verifiers (ARBOC)

Regional Green House Verifiers accredited by State regulatory RGGI CO2 Offset
04 USA Active
Gas Initiative (RGGI) RGGI states. agency Allowance (ROA)

Source: Carbon Offset Guide

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VOLUNTARY CARBON OFFSET PROGRAMS

Geographical Label used for offset

SN Program Status Who Validates/ Verifies Who Approves
Region credits

Verified Carbon Verified Carbon Unit

01 International Active Accredited VCS auditors Accredited VCS auditors
Scheme (VCS) (VCU)

Designated Operational GS TAC, GS Secretariat, Verified Emission

02 Gold Standard (GS) International Active
Entities (DOEs) GS NGO Supporters Reduction (VER)

Verifiers- ACR approved

American Carbon USA, some Emission Reduction
03 Active or CDM, JI, VCS, CAR ACR approved verifiers.
Registry international Tonne (ERT)
approved, ANSI certified.

ANSI-accredited
Climate Action Reserve State of California and Climate Reduction
04 USA, Mexico Active independent verifiers
(CAR) the CAR Tonne (CRT)
approved by the Reserve

Plan Vivo Certificate

05 Plan Vivo International Active Plan Vivo Foundation Plan Vivo Foundation
(PVC)

Source: Carbon Offset Guide

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BENEFITS OF CARBON
FOOTPRINT VERIFICATION

• Part of Corporate Responsibility/ Sustainability Strategy

• Creates awareness on effective carbon management

• Enhances the environmental integrity of GHG quantification;

• Enhances the credibility, consistency and transparency of GHG

quantification, monitoring, reporting, verification and validation;

• Facilitates the development and implementation of GHG management

strategies and plans;

• Facilitates the development and implementation of mitigation actions

through emission reductions or removal enhancements;

• Facilitates the ability to track performance and progress in the reduction of

GHG emissions and/or increase in GHG removals.

• Route to Carbon Neutral status

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VERIFICATION OF CARBON
ISO 14064-1 ISO 14064-2 ISO 14067
FOOTPRINT: ISO 14064 Design & develop GHG Quantify, monitor & Develop CFP per
inventories for report emission reduction functional unit or partial
organizations & removal enhancement CFP per declared unit

Relationship among the ISO 14060 family of

GHG standards
GHG project
GHG inventory & report CFP study report
documentation & report
• GHG initiatives on mitigation rely on the quantification,
monitoring, reporting & verification of GHG emissions Requirements
and/or removals. of the
GHG Statement GHG Statement GHG Statement applicable
GHG
Engagement type consistent with the needs of the intended user
• It provides clarity & consistency for verifying programme or
intended users
GHG emissions & removals to support sustainable
development through a low-carbon economy and to
benefit organizations, project proponents & interested ISO 14064-3
Specification with guidance for the verification & validation
parties worldwide. of greenhouse gas statements

ISO 14065 Requirements for validation &

verification bodies
ISO 14066 Competence requirements for GHG
validation terms & verification terms

CFV for Organization © Copyright Bureau Veritas Slide / 19

GHG REPORTING

GHG REPORT
• GHG report shall be prepared if the organization chooses to have its
GHG inventory verified or makes a public GHG statement claiming
conformity with this document.

GHG REPORT CONTENT

• General description of the organization goals &

inventory objectives

• Organizational boundaries

• Reporting boundaries

• Quantified GHG inventory of emissions and removals

• GHG reduction initiative and internal performance tracking

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VERIFICATION ACTIVITIES
To review GHG emissions & removals information, impartially & objectively, the organization shall conduct a verification consistent with the
needs of the intended user.

Verification Process: Principles and requirements for verifications to be followed are as described in ISO 14064-3

Pre-engagement Approach Validation / Verification Validation / Verification

Statement

• Review of information
received from client
• Determine potential risks,
objectives, scope, criteria,
level of assurance
• Appoint the verification
team leader
• Selecting verification team • Assess GHG assertion in • Issue verification
conformity with the statement based on the
• Communicating with the requirements, information conclusion of verification
client & responsible party review, verification & data findings
sampling plan
• Develop a verification plan
• Evaluation of evidence
collected

Source: ISO 14065 Greenhouse gases — Requirements for greenhouse gas validation and verification bodies Slide / 21
SHAPING
A WORLD
OF TRUST
W W W. B U R E AU V E R I TA S . C O M