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ISO14064-1 Awareness Course: Improving Performance, Reducing Risk
ISO14064-1 Awareness Course: Improving Performance, Reducing Risk
Awareness Course
Improving performance,
August 2021_V1
reducing risk
Session 1
Welcome and introductions
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Introductions
• Name
• Employer and current role.
• GHG experience
• Why are they on this V002 course?
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Course objectives
The objectives of this course are to provide information and case study practice on the following:
• Structure and vocabulary of ISO14064-1
• Relationship with other GHG standards, protocols, programmes and schemes
• The five fundamental principles
• Establishing organizational boundaries
• Establishing operational boundaries
• Quantification steps
• Exclusion management and transparency
• GHG sources, sinks and reservoirs
• Quantification methodologies
• Uncertainty
• Emission / removal factors
• Directed actions
• Base-year management
• GHG inventory quality management
• The GHG Assertion and GHG Report
• GHG quantification and verification
• Current GHG reporting environment
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Course programme
Sessions:
1. Welcome and introductions
2. The structure and vocabulary of ISO14064-1
3. The relationship with other GHG standards, protocols, programmes and schemes
4. The principles
5. Organisational boundaries
6. Operational boundaries – GHG sources, sinks and reservoirs
7. Quantification steps including exclusion management and transparency
8. Quantification methods
9. Uncertainty
10. Emission factors
11. Directed actions
12. Base-year management
13. GHG inventory quality management
14. The GHG assertion and GHG report
15. GHG verification
16. Current GHG reporting environment
17. Course review
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Session 2
The structure and vocabulary of ISO14064-1
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Session objectives
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Structure of ISO14064-1 (Organizational GHG inventories)
The sections of this standard are as follows (excluding some sub-clauses):
1. Scope
2. Terms and definitions
3. Principles
4. GHG inventory design and development
4.1 Organizational boundaries
4.2 Operational boundaries
4.3 Quantification of GHG emissions and removals
5. GHG inventory components
5.1 GHG emissions and removals
5.2 Organizational activities to reduce GHG emissions or increase GHG removals
5.3 Base-year GHG inventory
5.4 Assessing and reducing uncertainty
6. GHG inventory quality management
6.1 GHG information management
6.2 Document retention and record keeping
7. Reporting of GHG
8. Organization’s role in verification activities
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Vocabulary
GHG emission
GHG emission is the ‘release of a GHG into the atmosphere’.
• GHGs refer to a number of gases, but most commonly the Kyoto Protocol GHGs:
carbon dioxide (CO2), methane (CH4), nitrous oxide (N2O), hydrofluorocarbons (HFCs),
perfluorocarbons (PFCs), sulphur hexafluoride (SF6) and nitrogen trifluoride (NF3).
• GHG emissions are stated (quantified) in tonnes of carbon dioxide equivalent (tCO2e). This is the
common unit which make emissions of different GHGs comparable. It is the unit of measure for
carbon credits/offsets within various GHG programs, e.g. VCS (i.e. VCUs), CDM (i.e. CERs), JI (i.e.
ERUs), EU ETS (i.e. EUAs).
• GHGs are emitted from a ‘GHG source’.
GHG source
A GHG source is ‘a process that releases a GHG to the atmosphere’.
• This may be a human induced process, such as the burning of fossil fuels like coal and oil or
industrial processes like the production of cement.
• GHG emissions also result from natural processes such as the decomposition of organic matter.
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Vocabulary
GHG removal
GHG removal is the ‘withdrawal of a GHG
from the atmosphere by GHG sinks’.
• The opposite of a GHG emission is a GHG
removal.
• GHGs are removed from the atmosphere
by ‘GHG sinks’ and stored in ‘GHG
reservoirs’.
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Vocabulary
GHG sink
A GHG sink is a ‘process that removes a GHG from the atmosphere’.
• The simplest sinks to understand are trees, which absorb CO2 from the atmosphere and release O2 as
they photosynthesise.
• It is important to note that sinks refer to the process of removing GHGs from the atmosphere only (i.e.
it is a flux). The storage of GHGs is in a GHG reservoir.
GHG reservoir
A GHG reservoir is a ‘component, other than the atmosphere, that has the capacity to accumulate GHGs,
and to store and release them’.
• In plain language, reservoirs store GHGs.
• Examples of reservoirs include oceans, soils and forests, storage of GHGs in underground geological
formations and potentially in deep-sea storage.
Note: The permanence & credibility of GHG reservoirs is a particularly controversial area of climate change
science.
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Vocabulary
GHG project
GHG removal enhancement refers to ‘activity or activities that alter the conditions of a GHG baseline and
which cause GHG emission reductions or GHG removal enhancements’.
• Think of removal enhancements as any deliberate action to increase the amount of GHGs removed
from the atmosphere by sinks compared to previous levels of GHGs removed.
• Common examples include projects which avoid deforestation which was scheduled to occur or
afforestation (tree planting).
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Session 3
The relationship with other GHG standards,
protocols, programmes and schemes
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Session objectives
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The relationship with other GHG standards, protocols, programmes and
schemes
Other
• Sector specific
• National guidance, e.g. DEFRA/DECC in the UK
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The relationship with other GHG standards, protocols, programmes and
schemes
ISO14064-1: Specification with guidance at the organization level for quantification and reporting of greenhouse gas
emissions and removals.
It is the standard for GHG inventories at the organisational level. A GHG inventory is a detailed, quantified list of an
organisation’s GHG emissions and sources.
ISO14064-2: Specification with guidance at the project level for quantification, monitoring and reporting of greenhouse gas
emissions reductions and removals enhancements.
It is the standard for GHG projects. A GHG project is a specific action designed to either reduce GHGs emitted to the
atmosphere or increase the capture and storage of GHGs from the atmosphere.
ISO 14064-3: Specification with guidance for the validation and verification of greenhouse gas assertions.
It is the standard for auditing GHG projects and inventories. Validation and verification are undertaken to ensure the veracity
of reported information about GHG projects and inventories.
ISO14065: Greenhouse gases – Requirements for greenhouse gas validation and verification bodies for use in accreditation
and other forms of recognition.
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The relationship with other GHG standards, protocols, programmes and
schemes
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The relationship with other GHG standards, protocols, programmes and
schemes
Programmes / schemes:
• Emissions trading schemes
• Clean Development Mechanism
• Joint Implementation
• Voluntary Carbon Standard
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The relationship with other GHG standards, protocols,
programmes and schemes
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https://icapcarbonaction.com/en/ets-map August 2021 reducing risk
The relationship with other GHG standards, protocols, programmes and
schemes
Sector specific
• GHG Protocol sector toolsets
• The Cement CO2 and Energy Protocol (WBCSD)
• API Compendium 2009
• Many others
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Session 4
The five principles of ISO14064-1
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Session objectives
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The five principles of ISO14064-1
• Principles are the ‘ground rules’ to ensure true and fair accounting of GHG- Relevance
related information.
• Principles form the basis for any justifications and explanations required. Completeness
Accuracy
Transparency
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The Principle of Relevance
Is it appropriate?
Relevance means that the data set is appropriate to the needs of the intended end-user.
The quantification and reporting of data and information should include only that which users need for their
decision making.
‘Select the GHG sources, GHG sinks, GHG reservoirs (SSRs), data and methodologies appropriate to the
needs of the intended user’
• The GHG inventory must contain the information that users (both internal and external to the company)
need for their decision making.
• It is closely linked to the principle of ‘completeness’. In order to be complete, all relevant information
should be considered.
• Conversely, the report must not contain superfluous or peripheral information that may impact the
transparency of the report or mislead the intended user.
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The Principle of Relevance
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The Principle of Completeness
Completeness means that all sources related to the monitoring and reporting of the data set are included,
that are appropriate to the requirements of ISO14064 and the end user.
All relevant emissions sources within the chosen boundary need to be accounted for so that a comprehensive
and meaningful emissions quantification is completed.
For cases where emissions have been estimated, or estimated at an insufficient level of quality, it is important
that this is transparently documented and justified.
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The Principle of Completeness
Boiler
Standby Generator
Production Process
Boiler
This is to ensure that there are no material omissions from the data and information that would substantively
influence the assessments and decisions of stakeholders, i.e. end users of the data.
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The Principle of Consistency
Consistency ensures that year on year comparison (or other period) is comparing like with like, i.e.
significant decreases in the inventory size are not due to changes in the way emissions are calculated. This
enables users of GHG information to reliably track and compare GHG emissions information over time,
identify trends and assess the performance of the reporting company.
Nevertheless, it may be justifiable for organisations to change the method of data and information
management, if the accuracy in the reported data or information is improved. However, any changes in the
inventory boundary, methods, data or any other factors affecting the emissions quantification must be
transparently documented and justified. Consistency is commonly achieved by recalculating all inventories
in a time series when a change is made to the quantification approach.
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The Principle of Accuracy
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The Principal of Accuracy
Do not confuse accuracy with precision which refers to the repeatability of the measurement.
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The Principal of Accuracy
Remember that 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’.
GHG measurements, estimates, or calculations should not be systemically over nor under the actual
emissions value, as far as can be judged
Reporting on measures taken to ensure accuracy in the accounting of emissions can help promote credibility
and enhance transparency.
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The Principle of Transparency
Reproducible by being clear
Transparency means that data sets shall be in a manner that enables reproduction. This includes assumptions,
references, final figures, etc. It can also be defined as the complete disclosure of information and data required to
enable intended users to make informed decisions.
‘Disclose sufficient and appropriate GHG-related information to allow intended users to make decisions with
reasonable confidence.’
If the data and information management process and derivation are not sufficiently clear for it to be readily
reproduced, then it is not transparent. The provenance or source of all information and data must be clear and
reliable. In other words, the information should be sufficient to enable a third party to derive the same results if
provided with the same source data.
A “transparent” GHG report will provide a clear understanding of the issues in the context of the reporting
organisation and a meaningful assessment of performance.
Information needs to be recorded, compiled, and analysed in a way that enables internal reviewers and external
verifiers to attest to its credibility.
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Other Principals
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Session 5
Establishing organisational boundaries
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Session objectives
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Questions for delegates
1. Can you explain:
- Operational control?
- Financial control?
- Equity share?
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Organisational boundaries
The first tasks in compiling a GHG inventory is to determine the boundary of the GHG inventory i.e. which
GHG emissions and sources will be accounted for and reported by the organisation.
Complex ownership arrangements, corporate structures and international operations often make this a
difficult task.
ISO14064-1 (clauses 5.1 and 5.2) deal with this issue by defining boundaries at 2 levels:
• the organisational level; and
• the reporting boundary.
In setting organisational boundaries, the organisation defines its approach as to which operations will form
part of its inventory. The purpose of setting organisational boundaries to ensure that data is consolidated in
the organisational inventory, consistently across all facilities.
ORGANISATIONAL
BOUNDARIES
OPERATIONAL
BOUNDARIES
REPORTING /
Fundamentally, there are three requirements:
1. Organisations must adopt a ‘control’ or ‘equity share’ approach to consolidation
2. This choice must be documented
3. Changes to this approach must be justified
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Organisational boundaries
If the organisation has control of the operation then all GHG emissions and removals (100%) from the operation must
be included in the inventory.
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Organisational boundaries
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Organisational boundaries
For example, if an organisation owns 100% it accounts for 100% of the GHG emissions
and removals in its inventory. If it owns 20% then 20% of emissions/removals are
reported.
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Organisational boundaries
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V
In this example, Holland America
(not Holland Industries) holds a 50
percent interest in BGB and a 75
percent interest in IRW. If the
activities of Holland Industries itself
produce GHG emissions (e.g.,
emissions associated with electricity
use at the head office), then these
emissions should also be included in
the consolidation at 100 percent.
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Organisational boundaries
Fully consolidated: A parent entity presents consolidated financial statements for the parent and all
subsidiaries.
Proportionally consolidated: Under proportionate consolidation, the balance sheet of the venturer includes its
share of the assets that it controls jointly and its share of the liabilities for which it is jointly responsible. The
income statement of the venturer includes its share of the income and expenses of the jointly controlled entity.
Incorporated: A firm or company that has been formed into a legal corporation separate from its owners by
completing the required procedures.
Un or Non-incorporated: A business that does not possess a separate legal identity from its owner(s). The
owner(s) bear full liability for any action or inaction of the business: Unincorporated enterprises include sole
proprietorships, partnerships and family trusts.
Subsidiary: an enterprise controlled by another (called the parent) through the ownership of greater than 50%
of its voting stock.
Venturer: a party to a joint venture and has joint control over that joint venture.
Unincorporated Joint Venture (JV): A JV that is set up by contract. It does not own assets in its own name.
The assets and the operations are owned and controlled by the investors according to the terms of the relevant
JV documentation. Improving performance,
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Organisational boundaries
Associates: an entity in which an investor has significant influence but not control or joint control. Significant
influence is presumed if the investor has 20% or greater interest (i.e. voting power/equity) or participation in the
entity’s affairs. If less than 20%, the investor will be presumed not to have significant influence unless such
influence can be clearly demonstrated.
Other Equity Investment or Fixed Asset Investment: these are the terms used for less than 20% equity.
The cost dividend accounting method (CDA) is generally applied to these investments.
Cost Dividend Accounting (CDA): If the investment is such that there is no substantial influence of the
investment holder over the company invested in (i.e. generally equates to <20% equity), or if there is no readily
determinable fair value of the investment, the cost method of accounting for investments is usually the one used.
Under this method, the investment is recorded in the balance sheet at historical cost.
Equity Accounted Investment (EAI): An accounting technique used by firms to assess the profits earned by
their investments in other companies. The firm reports the income earned on the investment on its income
statement and the reported value is based on the firm's share of the company assets. The reported profit
is proportional to the size of the equity investment. This is the standard technique used when one company has
significant influence over another, i.e. generally >20% equity.
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The GHG Protocol – A Corporate
Accounting and Reporting
Standard provides guidance.
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The GHG Protocol – A Corporate Accounting and Reporting Standard
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Organisational boundaries
Fully / Proportionally Consolidated Group Companies and Subsidiaries: 100% of their GHG
emissions are included under FC.
Unincorporated Joint Ventures / Partnerships: their equity % of their GHG emissions are included
under FC.
Associates & other Equity Accounted Investments (EAI): 0% of their GHG emissions are included
under FC.
Other Equity Investments / Fixed Asset Investments (20% equity) - Cost Dividend Accounted
(CDA): 0% of their GHG emissions are included under FC.
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Organisational boundaries
Leased Assets
Financial lease: a finance lease transfers substantially all the risks and rewards of ownership of an asset to the
lessee. The asset leased is be treated as an asset wholly owned by the lessee (i.e. 100% equity) as defined in
financial accounting standards and is recorded as such on the company’s balance sheet.
Therefore, GHG emissions from such financially leased assets must be consolidated into an equity inventory and
obviously a financial control inventory. Assets under financial lease are GHG Protocol scope 1 emissions.
Operating lease: an operating lease is a lease other than a finance lease, where the lessee will have operational
control but not ownership or financial control.
Associated GHG emissions should therefore not be included in an equity inventory or a financial control inventory.
Assets under operational lease are GHG Protocol scope 3 emissions.
This interpretation is compliant with the GHG Protocol – A Corporate Accounting and Reporting Standard and the
UK Defra guidance on how to measure and report your GHG emissions. The GHG Protocol also provides Appendix
F – Categorising GHG Emissions Associated with Leased Assets.
This means that even if an asset is correctly excluded on the basis of cost dividend accounting method, due to the
organisation having less than 20% equity, this is overridden by the fact that the asset is financially leased, and the
asset is therefore included in the GHG inventory consolidation (either for equity of financial control inventories).
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Organisational boundaries
Exercise
• Study the provided asset database. Case study - Organisational boundary
One hour
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Organisational boundaries
Review
• Errors / issues?
• Any additional questions?
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Organisational boundaries
Common issues
• Incorrect inclusions
• Incorrect calculations
• Other?
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Session 6
Establishing reporting boundaries
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Session objectives
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Reporting boundaries
Once the organisation has determined which companies and facilities it will include in its GHG inventory, the
organisation must determine the scope of operations at each of the identified facilities.
ISO14064-1 clause 5.2 sets out the requirements for this step of inventory compilation
Essentially these are:
1. Establish and document the reporting boundaries
2. Identify and categorise all sources and sinks within these boundaries
3. Explain any changes to the boundaries
ISO14064-1 defines the boundaries of the facility using three key terms:
a) Direct GHG emissions and removals (GHG Protocol calls these Scope 1)
b) Indirect GHG emissions from imported energy (GHG Protocol calls these Scope 2)
c) Indirect GHG emissions from transportation (GHG Protocol calls these Scope 3)
d) Indirect GHG emissions from products used by organization (GHG Protocol calls these Scope 3)
e) Indirect GHG emissions associated with the use of products from the organization (GHG Protocol calls
these Scope 3)
f) Indirect GHG emissions from other sources (GHG Protocol calls these Scope 3)
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Reporting boundaries
GHG source 1
GHG source 2
1
Refinery
GHG source 3
GHG source 1
Oil & Gas
Company A
2
GHG source 2
Refinery
GHG source 3
GHG source 1
Port
GHG source 2
Shipping
Company B
GHG source 1
Parent Company
Ship
fleet
GHG source 1
Coal
mine
GHG sink 1
GHG source 1
Company C
plant
Power generation
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Power
GHG source 2
GHG source 3
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Reporting boundaries
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Reporting boundaries
However, the IPCC Guidelines require that CH4 and N2O emissions from biomass combustion must be quantified
and included in the inventory total. This is because biomass does not remove these gases from the
atmosphere.
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Reporting boundaries
The easiest example to understand is electricity use. Most companies purchase electricity from the grid and
therefore there are no GHG emissions directly from their operations. The GHG emissions associated with the
electricity production occur offsite at the power station where the electricity is generated. Similarly, imported
heat and steam have GHG emissions at the point of production not the point of use.
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Reporting boundaries
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What processes generate greenhouse gases?
PFCs NF3
GHG Protocol
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?
NF3
• Carbon Dioxide (CO2) – fuel combustion (electricity generation, heating, vehicle use, industrial processes using heat)
• Methane (CH4) – fuel combustion as above plus others, e.g. landfills, industrial processes, etc.
• Nitrous Oxide (N2O) - fuel combustion as above plus others.
• Hydrofluorocarbons (HFCs) – refrigerant gas system leakage (air conditioning, chilling processes).
• Perfluorocarbons (PFCs) – variety of industrial processes.
• Sulphur Hexafluoride (SF6) – electrical insulation, e.g. switchgear.
• Nitrogen trifluoride (NF3) – etchant in microelectronics Improving performance,
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Exercise:
15 minutes
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?
The co-operative bank
Offices / data centres:
Probable sources & types of GHGs • Heating (gas boilers, etc)
• Air conditioning (refrigerant gas loss)
• Fridges, freezers, vending machines (refrigerant gas
loss)
• Fire suppression systems / CO2 extinguishers
• Other?
Company cars: Fuel use / Air conditioning leaks
Electricity use in
offices / data centres
Indirect Indirect
GHGs GHGs
Direct GHGs (ISO14064)
(ISO14064)
(ISO14064)
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Reporting boundaries
Problem areas:
• Omission of GHG sources
• Mis-categorisation - Direct (Scope 1) vs indirect (Scope 2/3)
• Removals versus reservoirs
• CCS / CCUS / BECCS
• Combustion versus process emissions
• Other?
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Session 7
Quantification steps including exclusion
management and transparency
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Session objectives
Identify the GHG sources and sinks Choose what you are going to quantify
Select the quantification methodology Choose how you are going to quantify
Select and collect the activity data Collect the information you need
Calculate the emissions and removals Perform the maths to reach tCO2e values
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Quantification steps including exclusion management and transparency
Exclusions
ISO14064-1 allows organisations to exclude an indirect significant GHG emission if it justifiable:
Examples only:
1. not material to the inventory; and/or
2. not technically feasible, or not cost effective to quantify.
A source or sink is considered immaterial if it is too small to impact the decisions of the user of the GHG
inventory. GHG programs may set a threshold for what sources and sinks may be excluded from
quantification. These are called de minimus thresholds.
Initial quantification of the size of the source, sink or reservoir (SSR) is required to demonstrate that the de
minimus threshold has not been exceeded, so that it can then be excluded from the ongoing calculation and
reporting.
For exclusions, the decision to exclude sources or sinks is a trade-off between the completeness of the
inventory and its accuracy.
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Quantification steps including exclusion management and transparency
Case study: Freightizeus’ organisational GHG inventory is summarised in the pie chart.
The combustion of fuel by, and the maintenance of, the company’s fleet of vehicles accounted for 95% of GHG emissions. The
remaining 5% of emissions were electricity and natural gas consumption at the 126 administrative sites of the organisation which
included the head office and many single room sales offices.
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Exercise - Freightizeus
15 minutes
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Quantification steps
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Quantification steps
Case study: cement production
Cement is made by heating a crushed mixture of limestone and clay, or slag, to a very high temperature.
Direct emission sources: Cement production accounts for about 4% of global GHG emissions from human sources
because when the limestone and clay are heated to very high temperatures the following chemical reaction occurs:
This is the major direct source of GHG emissions from cement plants.
Generally, a detailed map of the industrial process and/or a mass balance model is the best tool for identifying direct
process GHG emissions.
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Quantification steps
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Quantification steps
Sources and sinks cannot be excluded using a de minimus criteria until the final tCO2e from those sources
and sinks has been quantified. Therefore all steps in ISO14064-1 clause 6 must be undertaken for the first
GHG inventory.
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Quantification steps
Quantification methodologies
A quantification methodology is a ‘recipe’ for calculating the tCO2e for the inventory. The organisation
must justify it’s choice of methodology and outline how it will:
‘minimise uncertainty and yield accurate, consistent and reproducible results” (ISO14064-1
clause 6.2.1)
The quantification approach should also consider technical feasibility and cost.
• Measurement or
• Modelling.
The organization shall explain and document its quantification approach and any changes in quantification
approach.
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Quantification steps
Direct measurement
Direct measurement of GHG emissions by metering flow rates and concentrations is very expensive and highly
uncommon. Technology for this purpose is limited and it only applies to point source emissions (such as stack
emissions).
Direct measurement of indirect emissions is complex, as these emissions occur at operations not controlled by
the organisation.
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Quantification steps
Measurement
Example – Combustion of landfill gas
Methane (CH4) is emitted from landfills as buried organic matter decomposes (i.e. under anaerobic
conditions). CH4 has a global warming potential (GWP) of ??, which means it has ?? times more than CO2.
Therefore, by burning CH4, and converting it to the more benign CO2, we reduce GHG emissions
significantly. This is shown by the following chemical equation:
CH4 + 2O2 + N2 => CO2 + 2H2O + N2
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Quantification steps
Modelling
A model is a representation of how the source or sink data used for quantification are converted into emissions or
removals. A model is a simplification of physical processes that has assumptions and limitations.
The organization shall explain and document the justification for the selection or development of the model, considering
the following model characteristics:
a) how the model accurately represents the emissions and removals;
b) its limits of application;
c) its uncertainty and rigour;
d) the reproducibility of results;
e) the acceptability of the model;
f) the origin and level of recognition of the model;
g) the consistency with the intended use.
NOTE Several types of models make use of activity data multiplied by emission factors.
Emission factors
The use of emissions factors is by far the most common approach to calculating GHG emissions. Emissions factors are
a streamlined approach to calculating GHG emissions, which take easily accessed information and produce a tCO2e
value through simple multiplication. For example:
GHG emissions = activity data x emission factor = units of carbon dioxide equivalent
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Quantification steps
HIGH
Technology specific emissions factors based on:
• Empirical evidence of GHG emissions for measured inputs under known
conditions
•
ACCURACY
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Quantification steps
Selecting emission factors
ISO14064-1:2006 presented specific criteria for emissions factors. These are imposed by different phrasing
within ISO14064-1:2018 clause 6.2.3.
The organisation shall select or develop GHG emission and removal factors that:
a) are derived from a recognized origin,
b) are appropriate for the GHG source or sink concerned,
c) are current at the time of quantification,
d) take account of quantification uncertainty and are calculated in a manner intended to yield accurate
and reproducible results, and
e) are consistent with the intended use of the GHG inventory.
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Session 8
Quantification methods
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Session objectives
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Quantification methods
Professional scepticism
From a practical perspective, all quantification methodologies must be assessed on a case-by-case level
considering the specific characteristics of the process being quantified. Every variable should be viewed with a
sceptical eye to ensure its applicability to the circumstances.
Activity data
Once the quantification method is selected by the organisation, there should have a clear idea of the
information needed to collect in order to apply that quantification method.
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Quantification methods
Exercise:
What is the activity data for the following?
15 minutes
In groups
Answers in a Word document
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Session 5 – Basics of the EU ETS
Quantification methods
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Quantification methods
• Gas flared
Data from flow meters via a distributed control system
(DCS) and interrogated via software, i.e. Plant Information
(PI) software such as SCADA.
Meter reads unlikely
By calculation
Other?
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Quantification methods
Calculations
A quantification method needs to be applied to the activity data to produce a final tCO2e value.
It is rare you that an organisation will execute this step without errors in converting the units of the activity
data or transcription errors. It is important that meticulous care is taken with these aspects of the
calculations.
The second important consideration in calculations is how the information is aggregated or ‘rolled up’ from
different emission sources to the final total amount of tCO2e.
Centralised or decentralised
Combustion emissions:
CO2 emissions = Activity data x Emission factor x Oxidation factor
CO2 emissions = Activity data (e.g. TJ) x Emission factor (e.g. tCO2/TJ) x Oxidation factor
Process emissions:
CO2 emissions = Activity data x Emission factor x Conversion factor
CO2 emissions = Activity data (e.g. t or Nm3) x Emission factor (e.g. tCO2/t or tCO2/Nm3) x Conversion factor
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Session 9
Uncertainty
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Session objectives
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Uncertainty
Defining uncertainty
ISO14064-1 provides the formal, statistical definition of uncertainty:
“parameter associated with the result of quantification that characterises the dispersion of the
values that could be reasonably attributed to the quantified amount”.
Simply put, this means, every time you take a measurement or do a calculation you may get a slightly
different result even if all other things are exactly the same. This range of different results is called
‘uncertainty’. We use it to describe the ‘unknowns’ or the ‘miscellaneous’ factors which could be impacting our
results.
Types of uncertainty
Scientific uncertainty
This arises when we don’t fully understand the scientific processes behind the GHG emissions or removals. A
good example of this is in forestry sinks. There is considerable and ongoing debate in the scientific community
as to whether forests (and other ecosystems) are a net source or a net sink for GHGs.
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Uncertainty
Estimation uncertainty arises from the process of quantifying GHG emissions. There are several types of estimation uncertainty
which are shown in the figure below:
ESTIMATION UNCERTAINTY
STATISTICAL SYSTEMATIC
UNCERTAINTY UNCERTAINTY
Model uncertainty is associated with uncertainty in a model used to calculate GHG Emissions. Forestry carbon models often have
high uncertainty as assumptions are made about the species composition of ecosystems and rates of growth.
Parameter uncertainty relates to the inputs to any quantification model i.e. the activity data.
• Systematic uncertainty occurs when values are consistently over or under the actual value. Poorly calibrated metering equipment
is a common source of systematic uncertainty.
• Statistical uncertainty occurs due to random variability in sample data. It is assumed to average out over time.
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It is essential to have an awareness of the factors that can contribute to
ISO14064-1: systematic uncertainty as the organisation should be managing these.
Systematic uncertainty
Flow
Temperature Pressure correction
probe transducer computer
Distributed Control
MEASUREMENT
Systems –
infrastructure that INSTRUMENT e.g.
collect data volume flow rate gas meter
All elements of
Data collation,
MANY OTHER the device
processing
DOWNSTREAM DATA
software
MANAGEMENT INSTRUMENT Calibration
Human factors:
SYSTEM FACTORS – CALIBRATION frequency
inherent uncertainty
manual
transposition, etc. Calibration of the test
HOW INSTRUMENT equipment used
READ SUITABLE
CORRECTLY ENVIRONMENT
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Improving performance,
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Uncertainty
“The organization shall assess the uncertainty associated with the quantification approaches
(e.g. data used for quantification and models) and conduct an assessment that determines the
uncertainty at the GHG inventory category level.
Where quantitative estimation of uncertainty is not possible or cost effective, it shall be justified
and a qualitative assessment shall be conducted.”
The assessment of uncertainty is a highly complex exercise and it is important that it is performed by people
with the detailed technical competency needed for the task.
Regulatory schemes
• Impose uncertainty requirements that must be met and demonstrated to the relevant regulator and/or
external verifier, e.g. the EU ETS
Various sources of uncertainty that need to be appropriately combined to determine overall source stream,
e.g. fuel data, uncertainty. Various calculations that must be used depending on the relationship of the
elements in the monitoring process.
Uncorrelated:
Correlated:
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Session objectives
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Calculation factors
GWP is a relative measure of how much heat a GHG traps in the atmosphere. It compares the amount of heat
trapped by a certain mass of the gas in question to the amount of heat trapped by a similar mass of CO2. A
GWP is calculated over a specific time interval, commonly 20, 100 or 500 years.
Many others.
The table includes the 100-year time horizon global warming potentials (GWP) relative to CO2. This table is adapted from the
IPCC Fifth Assessment Report, 2014 (AR5)i . The AR5 values are the most recent, but the second assessment report (1995) and
fourth assessment report (2007) values are also listed because they are sometimes used for inventory and reporting purposes.
For more information, please see the IPCC website (www.ipcc.ch). The use of the latest (AR5) values is recommended. Please
note that the GWP values provided here from the AR5 for non-CO2 gases do not include climate-carbon feedbacks.
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Carbon Dioxide Equivalence (CO2e)
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Global warming potential (GWP)
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Exercise
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Emission factors (examples of)
BEIS/DECC spreadsheet UK Government GHG Conversion Factors for Company Reporting
SOURCE: https://www.gov.uk/government/publications/greenhouse-gas-reporting-conversion-factors-2021
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Emission factors UK Government GHG Conversion
Factors for Company Reporting
https://www.gov.uk/government/publications/greenhouse-gas-reporting-conversion-factors-2021
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Emission factors UK Government GHG Conversion
Factors for Company Reporting
Delivery vehicles – extract only
https://www.gov.uk/government/publications/greenhouse-gas-reporting-conversion-factors-2021
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Organisational boundaries
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Organisational boundaries
Exercise
• Study the provided information [Case study 2 - Reporting boundary\Delegate materials\DELEGATE GHG Data 2013.xlsx]
• Identify any errors, omissions or misstatements.
• Consider any additional questions you may have.
90 minutes
Output on a flipchart and annotated spreadsheet [Case study 2 - Reporting boundary\Tutor materials\TUTOR GHG Data 2013 uncorrected.xlsx]
Terms of engagement
Verification Approach: ISAE3000
Scope of work: - to verify all of the GHG information within the Batida Braganca Paulista Refinery Report 2013
Boundaries:
• Geographical: the Refinery only but this also includes a waste landfill and a CHP construction project.
• Temporal: 2013 CY data and base year. Plus % reduction performance calculations.
Deliverable: Assurance Statement for inclusion within the Report. Improving performance,
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Session 11
GHG reduction initiatives
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Session objectives
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GHG reduction initiatives
Once a company has compiled its GHG inventory, it may take deliberate steps to reduce the total tCO2e it
emits each year.
Actions to reduce or prevent GHG emissions are termed ‘GHG reduction initiatives’ by ISO14064-1.
Examples include:
• Energy demand and use management
• Energy efficiency
• Technology or process improvements
• GHG capture and storage in, typically, a GHG reservoir
• Management of transport and travel demands
• Fuel switching or substitution
• Afforestation.
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GHG project
The second way an organisation may seek to reduce its net GHG emissions is to develop GHG projects or
purchase GHG credits to ‘offset’ its GHG profile.
In other words, pay someone else to reduce emissions on their behalf and counts these towards their own total
inventory.
A company may choose to do this when it is too expensive, or not practical, for it to undertake GHG reduction
initiatives e.g. it is not possible to reduce direct CO2 emissions from cement without producing less cement.
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Session 12
Base-year management
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Session objectives
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Base-year management
What is a base-year?
A base-year is a selected period which future GHG inventories are compared to, in order to track GHG
emissions levels over time. It allows organisations to monitor progress and make comparisons to determine
whether emissions have increased or decreased.
For example, the bar chart illustrates an increase in emissions in year 1 (comparative to the base-year)
followed by a steady decrease.
tCO2e
time
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Base-year management
Choosing a representative base-year
In selecting a base-year it is important that it is representative of the normal operation of the organisation.
Example: An aluminium smelter proposed a base-year based on an average of five years GHG emissions for entry into a GHG
program. The trend in the chart was observed. It was discovered that an earthquake in Year 4 interrupted the power supply to
the smelter. When this happens the molten alumina emits PFCs (highly potent GHGs). As this was not representative of normal
conditions at the smelter the GHG program Authority requested that Year 4 be excluded from the base-year calculation.
100
tCO2e
90
80
70
60
Actual GHG
50 emissions
40
30
Proposed
base-year
20
10
0 NOTE: if document hyperlinks malfunction please locate required documents
Yearwithin
1 theYear 2 Year
organised 3 Year 4 Year 5
folder structure. Improving performance,
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Base-year management
Another consideration is the legal requirements in the jurisdiction of the facility. It is quite common that
corporations’ laws only require records to be held for 5-7 years with older records having been disposed of.
They may also select the base year most appropriate to their needs.
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Base-year management
Base-year recalculations
From time to time it will become necessary for organisations to recalculate their base-year.
It is important that the base-year is recalculated so that the comparison remains valid.
The organization shall not recalculate its base-year GHG inventory to account for changes in facility
production levels, including the closing or opening of facilities.
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Session 13
GHG information management
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Session objectives
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GHG inventory quality management
The goal of inventory quality management is to ensure that the inventory is:
• Complete
• Accurate
• Relevant
• Transparent
• Consistent
In other words – that the principles of ISO14064-1 are upheld.
Quality Assurance refers to plans and procedures to ensure that data is as precise, repeatable and
reproducible as possible, e.g. data collection templates to ensure data has been properly entered to
prevent/correct errors.
Quality Control refers to measures regulating the data collection processes and the standard of the data, e.g.
procedures for sample collection and instrument calibration.
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GHG inventory quality management
Examples of quality management measures
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GHG inventory quality management
This framework allows companies to ensure that all requirements of ISO14064-1 clause 8 have been taken
into consideration and no significant aspect of the inventory has been left uncontrolled.
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GHG inventory quality management
Record keeping
ISO14064-1 fundamentally requires the organisation to maintain adequate records to substantiate its inventory to a
GHG verifier. ISO14001 provides guidance for record management for environmental management systems. These
concepts are equally relevant to records for GHG inventories.
The organisation shall establish and maintain procedures for the identification, maintenance and disposition of
records to ensure that:
(a) they can be located
(b) they are periodically reviewed, revised as necessary and approved for adequacy by authorised personnel
(c) the current versions of relevant documents are available at all locations where operations essential to the
effective functioning of the environmental management system are performed
(d) obsolete documents are promptly removed from all points of issue and points of use, or otherwise assured
against unintended use, and
(e) any obsolete documents retained for legal and/or knowledge preservation purposes are suitably identified.
Documents shall be legible, dated (with date of revision) and readily identifiable, maintained in an orderly manner
and retained for a specified period.
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Session objectives
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Reporting requirements
Reporting
It is not a requirement of ISO14064-1 that the organisation produce or publish a report on its GHG
information. Clause 9.1 of ISO14064-1 is a ‘should’ clause and is therefore optional.
However, if an organisation chooses to have its GHG inventory verified or makes a public GHG statement
claiming conformance with ISO14064-1, this clause must be followed.
Clauses 9.2 and 9.3 are mandatory for publishers of GHG reports. Clause 9.3.2 (Recommended information)
is for consideration only and clause 9.3.3 provides optional reporting information.
Reporting
Clause 9.3.1 of ISO14064-1 provides a list of all
the essential elements a GHG report must have
if it is to comply with the standard.
Exercise
Compare the GHG section of this report to the
requirements of clause 9.3.1.
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Session objectives
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GHG Verification
Inherent – risk that the data and information reported automatically contains, either individually or when
aggregated, any actual or potential material discrepancies (errors, omissions, or misstatements).
• For example, inherent risk is related to the:
• complexity of the data and information management processes
• number of people involved in the data and information management, and
• number of steps taken to arrive at an aggregated figure.
Control – risk that the client’s internal control systems do not prevent, detect, or correct in a timely manner,
either individually or when aggregated, any actual or potential material discrepancies, and
Detection – risk that the assurance provider will either not address or not detect any material discrepancies that
have not been corrected by the client’s control system.
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GHG Verification
Note:
• Only detection risk can be controlled by the verifier
• If control and inherent risks are high, then the verifier must take steps to lower the detection risk
• A primary tool is the sampling plan
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GHG Verification
Relationship between types of risk
Acceptable
Sampling
plan
Level of risk
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GHG Verification
Sampling plans
A sampling plan is part of the verification plan that describes the amount and type of evidence the
verification body requires to successfully complete in order to potentially issue a ‘positive’ (i.e. passing)
opinion.
Example: natural gas usage including flow and CH4 concentration data is recorded every 2 minutes which
could mean over 262,000 records for a year.
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GHG Verification
Choosing a sampling tool
The appropriate tool for selecting a sample depends on the nature and type of GHG information and GHG
controls being assessed.
It is the way the verifier can manage the risk on the project.
Types of evidence
During fieldwork the verifier will be presented with different types of evidence including:
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GHG Verification
High
Sufficiency (Amount)
of Evidence
Low
Low High
Appropriateness of Evidence
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GHG Verification
high 1. Direct, personal knowledge, obtained through physical observation and/or your own
mathematical computations.
2. Documentary evidence obtained directly from reliable, independent external sources.
3. Documentary evidence that has originated outside the organisation’s data processing system
but has been received and processed by the responsible party.
4. Internal evidence, including documents produced, circulated, & stored within the
organisation’s information system. Internal evidence can typically be relied upon if produced
under satisfactory conditions of internal control.
5. Spoken & written representations by the organisation’s officers, directors, owners, &
employees - these should be corroborated by other types of evidence.
low
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Session 16
Current GHG reporting environment
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Session objectives
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Current GHG reporting environment
Drivers:
• Legislative (examples):
- Greenhouse Gas (GHG) Emissions Trading Scheme Regulations
- Companies Act 2006 (Strategic Report & Directors’ Report) Regulations
- Companies (Directors’ Report) and Limited Liability Partnerships (Energy and Carbon Report) Regs 2018
- Non Financial Information Reporting Directive
- Carbon Reduction Commitment
- Energy Savings Opportunity Scheme
• Other:
- Paris Agreement
- SEC
- Financial Stability Board – Taskforce on Climate-related Financial Disclosures
- Incidents
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Session 17
Course review
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Session 17
Course review
Improving
Improving performance,
performance, reducing
risk reducing risk
Course objectives
The objectives of this course are to provide information and case study practice on the following:
• Structure and vocabulary of ISO14064-1
• Relationship with other GHG standards, protocols, programmes and schemes
• The five fundamental principles
• Establishing organizational boundaries
• Establishing operational boundaries
• Quantification steps
• Exclusion management and transparency
• GHG sources, sinks and reservoirs
• Quantification methodologies
• Uncertainty
• Emission / removal factors
• Directed actions
• Base-year management
• GHG inventory quality management
• The GHG Assertion and GHG Report
• GHG quantification and verification
• Current GHG reporting environment
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Questions?
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Improving performance,
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