UNDERSTANDING GHG VERIFICATION: WHY IT MATTERS AND HOW TO GET STARTED
Climate change is one of the most critical environmental issues we face today. With growing demands for transparency and accountability, understanding and verifying your greenhouse gas (GHG) emissions is becoming a pivotal part of corporate strategy. In this article, we’ll explore the essentials of GHG verification—what it entails, why it’s vital, and how to effectively implement it.
What is GHG?
Greenhouse gas (GHG) refers to gases that trap heat in the atmosphere, contributing to the greenhouse effect and global warming. The primary GHGs include carbon dioxide (CO₂), methane (CH₄), nitrous oxide (N₂O), and fluorinated gases.
Why should I disclose my organisation’s GHG emissions?
Disclosing your organisation's GHG emissions is essential for several reasons:
Transparency and Accountability: Demonstrates your commitment to environmental responsibility and builds trust with stakeholders.
Regulatory Compliance: Ensures adherence to legal requirements and participation in reporting programs.
Reputation Enhancement: Strengthens your brand's reputation by showcasing your sustainability efforts.
Operational Efficiency: Identifies opportunities to reduce emissions and improve operational efficiency, potentially lowering costs.
Stakeholder Engagement: Engages investors, customers, and partners who are increasingly prioritising sustainability.
Risk Management: Helps identify and mitigate climate-related risks to your business.
WHAT ARE THE BENEFITS OF GHG REPORTING?
Ensure compliance with legal requirements and participation in reporting programmes
Demonstrate your commitment to sustainability
Build trust among stakeholders with transparent reporting and third-party verification
Identify improvements to help reduce carbon footprint
Enhance reputation by sharing accurate carbon reporting information
How do I disclose my organisation’s GHG emissions?
Disclosing GHG emissions involves publicly sharing information about an organisation’s carbon footprint. This transparency allows stakeholders, including investors, customers, and regulatory bodies, to evaluate the organisation's environmental impact. Effective disclosure practices include:
Publishing detailed GHG inventories and reports.
Participating in voluntary reporting initiatives, such as the Carbon Disclosure Project (CDP).
Aligning disclosure with recognised standards and frameworks, such as the Global Reporting Initiative (GRI) and the Task Force on Climate-related Financial Disclosures (TCFD).
Measurement, Reporting, and Verification (MRV) of GHG Emissions
Measurement, Reporting, and Verification (MRV) is a comprehensive process of measuring (and monitoring) GHG emissions, compiling and reporting this information to a system, program or body; and subjecting this reported data for third-party verification. MRV encompasses:
Measurement: Quantifying and monitoring GHG emissions using standardised methods and tools.
Reporting: Documenting and disclosing GHG emissions data in a transparent and consistent manner.
Verification: Evaluating a statement of data and information to determine if the statement is materially correct and conforms to criteria.
By implementing an MRV system, organizations can track their progress toward emission reduction targets, comply with regulatory requirements, and enhance their environmental performance.
What is GHG Verification?
GHG verification involves assessing and reporting carbon footprints, enabling companies, buildings, and cities to more accurately calculate carbon emissions and identify areas for improvement. It provides a systematic approach to quantifying GHG emissions and ensures the integrity and transparency of reported data.
Why Do You Need GHG Verification?
Quantifying GHG emissions from owned sources, as well as those associated with upstream and downstream supply chains, is essential for organisations aiming for carbon neutrality or net zero. Carbon footprint verification allows organisations to voluntarily demonstrate the robustness of their carbon footprint calculations and measurements through public reporting. This process builds trust amongst stakeholders, reduces costs by identifying further hotspots following verification and proves your commitment to sustainability, boosting your organisation’s reputation.
How Do You Get Started?
Quantify Your Carbon Footprint: Organisations should begin by quantifying their carbon footprints through either an Organisational Carbon Footprint or Product Carbon Footprint assessment.
The World Resources Institute & World Business Council for Sustainable Development’s Greenhouse Gas Protocol provides a framework for measuring and reporting emissions. It encompasses three main scopes:
Scope 1: Direct emissions from owned or controlled sources.
Scope 2: Indirect emissions from the generation of purchased energy.
Scope 3: All other indirect emissions from the supply chain and other activities.
ISO 14064-1 is another common standard that is used by organisations which contains requirements and guidance for quantifying and reporting GHG emissions and removals at an organisational level, covering design to verification of a GHG inventory.
2. Consider Standards for Product Carbon Footprint Assessment:
GHG Protocol Product Lifecycle: Helps organisations assess the environmental impact of their products across their entire lifecycle, from raw material extraction to end-of-life disposal.
ISO 14067: Provides guidelines for the quantification and communication of the carbon footprint of products, enhancing credibility through carbon labeling and declarations.
3. Getting started on the verification process: Once data is gathered, the organisation should select a recognised verification standard, like ISO 14064, and engage a certified third-party verifier. Clear documentation and transparent reporting are key to ensuring a successful verification, which ultimately strengthens credibility and compliance with regulations.
What is the GHG Verification Process?
The process starts with pre-engagement activities to confirm the type of engagement, level of assurance, objectives, criteria, scope and materiality threshold.
Then a verification team is selected, followed by a series of planning activities to develop a verification plan & evidence-gathering plan.
Subsequently, verification activities are executed based on the plans.
The process concludes with the issuance of verification report including the conclusion and opinion of the verification team.
Through the whole process, the transparency and credibility of an organization’s GHG reporting is largely improved. Generally, ISO 14064-3 is the standard to be referred to for GHG verification.
Ready to Get Started?
GHG reporting and verification are increasingly important for organisations who want to send a powerful message about the strength of their company’s commitment to achieving sustainable operations. To show that commitment, organisations today need an experienced third-party independent verification body like Bureau Veritas that helps organisations measure and report on their carbon footprint rigorously and transparently.
As a leader in the reporting and verification of GHG emissions with over 15 years of experience in regulatory and voluntary emissions verification, our proven track record and global expertise make us the trusted partner you need to ensure your GHG emissions reporting is accurate, credible, and transparent. Contact us today and take the next step towards sustainability and a greener future.
Sustainability Manager
Bureau Veritas Singapore
With growing demands for transparency and accountability, verifying your greenhouse gas (GHG) emissions is becoming a pivotal part of corporate strategy. Disclosing your emissions improves operational efficiency, potentially lowers cost and mitigates climate-related risks to your business.