Adopting ISO 14064

Adopting ISO 14064 series of standardsBenjamin Tan

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Contents

1. Need for ISO Series of Standards

2. Publication of the ISO 14064 standards

3. Overview of 14064 standards

4. Key Requirements & Approach

5. Roles and responsibilities

6. Verification Approach

7. 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, Montréal 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 gasemissions 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

GHG emissions reductions or

removal enhancements

GHG emissions and removals

quantification and

reporting of

quantification and reporting of

For the validation

and verification of

greenhouse gas assertions

At the project levelAt the

Organisational

Level

Part 3Part 2Part 1

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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 Relationship between three parts of

ISO 14064 and ISO 14065ISO 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, theorganisation 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, PFC’s, HFC’s, SF6)• Direct emissions

Such as process emissions and combustion emissions from sources that the organisation owns/controls.

• Energy Indirect emissionsEmissions 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

Parent Company

Company B

Shipping

Company C

Power generation

Company A

Oil & Gas

Refinery

1

Refinery

2

Coal

mine

Power

plantPort

Ship

fleet

Organisational boundaries

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

Select quantification methodology

Calculate emissions and removals

Select or develop emissions factors

Select and collect activity data

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

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

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

• 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

To ensure:

• Best use of external audits;

• Limited disruption to

operations;

• Detailed confirmation of practices.

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

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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Lloyd’s Register Quality Assurance Limited

Presenter: Benjamin Tan – Senior Assessor, Management Systems Office Number: 6891 7281

Email: [email protected]

You can also contact

Ms. Janice CheeSenior 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: [email protected]: www.sea.lrqa.com

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