Verifying GHG Statement to ISO 14064-3

GHG (Greenhouse Gas) verification is formal and a crucial step for organizations to ensuring the accuracy and credibility of reported GHG data. The level of assurance provided during the verification process can be conducted at two levels: limited assurance and reasonable assurance.

Understanding these levels helps organizations choose the appropriate level of verification based on their needs and regulatory requirements.

Levels of Assurance

Comparison of Limited and Reasonable Assurance

	Limited Assurance	Reasonable Assurance
Level of Confidence	Moderate	High
Scope of Review	Less extensive, limited testing and inquiry	Comprehensive, detailed testing and analysis
Procedures	Inquiry, analytical procedures	Detailed data testing, site visits, and thorough review
Report Content	Moderate confidence statement, significant issues noted	High confidence statement, detailed opinion, and recommendations
Cost and Time	Typically lower-cost and quicker	Typically higher-cost and more time-consuming

Definition: Limited assurance provides a lower level of confidence compared to reasonable assurance. It involves a review process that is less extensive but still aims to offer a moderate level of assurance regarding the accuracy and reliability of GHG data.

Review Procedures: Limited assurance typically involves inquiry and analytical procedures, including a review of documentation, interviews with key personnel, and limited testing of data.

Assessment Focus: The focus is on identifying any obvious errors or inconsistencies rather than performing an in-depth examination of all aspects of the GHG inventory.

Report Outcome: The verification report for limited assurance usually contains a statement that expresses a moderate level of confidence in the GHG data, noting any significant issues or areas for improvement.

Definition: Reasonable assurance provides a higher level of confidence in the accuracy and reliability of GHG data. It involves a comprehensive examination and detailed testing of the data, methodologies, and reporting processes.

Detailed Procedures: Reasonable assurance involves detailed procedures such as extensive data testing, in-depth review of methodologies, and site visits to verify the implementation of GHG reduction measures.

Thorough Assessment: The verification process includes a thorough assessment of all relevant aspects of the GHG inventory, including data accuracy, methodology compliance, and reporting quality.

Report Outcome: The verification report for reasonable assurance offers a high level of confidence in the GHG data and includes a detailed opinion on the accuracy and reliability of the reported information, along with any identified issues and recommendations.

Factors to Consider when Deciding on Level of Assurance

Regulatory Requirements: Some regulations may specify the required level of assurance for GHG reporting. Ensure compliance with these requirements when choosing the level of assurance.
Stakeholder Expectations: Consider the expectations of stakeholders, including investors, customers, and regulatory bodies, which may influence the choice between limited and reasonable assurance.
Complexity of GHG Inventory: For complex GHG inventories with multiple emission sources and reduction measures, reasonable assurance may be more appropriate to provide a comprehensive review.
Budget and Resources: Limited assurance may be more cost-effective and faster, but it may not meet the needs for high confidence and detailed review required by certain stakeholders or regulations.

Benefits of Limited Assurance

Cost-Effective: Generally less expensive and faster to complete.
Moderate Confidence: Provides a reasonable level of confidence that major issues are identified.
Appropriate for Smaller Organizations: Suitable for smaller organizations or those with less complex GHG inventories

Benefits of Reasonable Assurance

High Confidence: Offers a high level of assurance regarding the accuracy and reliability of GHG data.
Detailed Review: Provides a thorough examination of GHG data, methodologies, and reporting processes.
Enhanced Credibility: Increases credibility with stakeholders and regulatory bodies due to the comprehensive nature of the review.

DEKRA's GHG verification provides critical assurance regarding the accuracy and reliability of GHG reporting. By engaging in a rigorous verification process, organizations can validate the accuracy of their GHG data, ensure compliance with relevant standards, and enhance their reputation among stakeholders.

Limited assurance offers a moderate level of confidence with a less extensive review process, while reasonable assurance provides a higher level of confidence through a comprehensive examination. Choosing the appropriate level of assurance depends on regulatory requirements, stakeholder expectations, the complexity of the GHG inventory, and available resources. Both levels of assurance play a crucial role in ensuring the credibility and effectiveness of GHG reporting and management.

Verification Process

Determining the scope of verification is a foundational step in the GHG verification process. It involves setting clear boundaries for the GHG inventory, identifying all relevant emission sources, and defining the reporting periods to be assessed. This step ensures that the verification process covers all necessary aspects and aligns with regulatory requirements and organizational goals.
Once the scope is defined, the next phase is to develop a robust verification plan. This plan outlines the specific methodologies and standards that will be employed, the timeline for the verification activities, and key areas that require focused attention. Creating a detailed verification plan facilitates a systematic and organized approach, allowing for efficient data collection, comprehensive analysis, and thorough assessment. It also helps in anticipating potential challenges and ensuring that all critical components of the GHG inventory are accurately verified.

Gathering information is the first critical step in the document review phase of GHG verification. This involves systematically collecting all relevant documents, including comprehensive GHG inventory reports, detailed calculation methodologies, and supporting data from various sources. By gathering these documents, the verification team ensures that they have a solid foundation of information to work with.
Once the documents are collected, a thorough review is conducted to assess the accuracy and consistency of the GHG data and reporting methodologies. This review aims to identify any discrepancies or inconsistencies in the data, ensuring that the reported GHG emissions are precise and credible. An essential part of this process is also to evaluate the methodologies used to calculate GHG emissions. The verification team checks that the methodologies and emission factors align with recognized standards such as the GHG Protocol and ISO 14064.
Ensuring compliance with these standards is crucial for maintaining the integrity and reliability of the GHG data, providing confidence to stakeholders and regulatory bodies alike. Through this meticulous process of information gathering and document review, organizations can lay the groundwork for accurate and transparent GHG reporting.

Conduct Interviews: Interview key personnel involved in GHG data management and reporting, gathering insights into their processes and practices to ensure accurate data collection and reporting. These interviews help to uncover any potential discrepancies and provide a deeper understanding of the methodologies employed.
Site Visits: Perform site visits to verify data accuracy and the implementation of GHG reduction measures. These visits are crucial for validating on-the-ground activities and ensuring that reported data align with actual practices. During site visits, auditors assess the physical setups and procedures to confirm the accuracy of reported GHG emissions and the effectiveness of reduction initiatives.
Cross-Check Data: Cross-check reported data with original sources and supporting evidence. This involves a detailed review of all documentation to verify the consistency and accuracy of the GHG data. By cross-referencing different data sources, the verification team can identify and rectify any inconsistencies or errors, ensuring the credibility of the reported emissions. This meticulous approach helps build stakeholder trust and ensures compliance with regulatory standards

Verification Report
- In the verification report, a concise summary of findings captures the primary results and key observations from the rigorous examination of GHG data and methodologies. This summary highlights the major strengths and any gaps discovered during the verification process, providing a clear and transparent overview for stakeholders.
- Following the findings, the report offers detailed recommendations aimed at addressing identified issues and enhancing GHG management practices. These recommendations are tailored to help organizations improve their data accuracy, method compliance, and overall environmental performance.
- Furthermore, the verification report outlines necessary corrective actions to resolve any discrepancies or non-compliance issues, ensuring that the organization can make the required adjustments to meet recognized standards. Implementing these corrective actions not only aligns the company's GHG reporting with regulatory requirements but also strengthens its commitment to environmental responsibility and transparency. Thus, the comprehensive nature of the verification report serves as a valuable tool for continuous improvement and reliable greenhouse gas accounting.
Follow-Up
- Implementation Monitoring: Monitor the implementation of corrective actions and improvements. By actively overseeing the implementation, organizations can ensure that all identified issues are being addressed promptly and effectively.
- Progress Review: Conduct follow-up reviews to assess progress and ensure ongoing compliance. These follow-up reviews are essential for verifying that corrective actions have been successfully implemented and that improvements in GHG management practices are sustained over time. Regular monitoring and progress reviews help to maintain the integrity of GHG data and reporting, ensuring that organizations remain compliant with regulatory requirements and continue to enhance their environmental performance. Additionally, these ongoing assessments provide valuable feedback to organizations, allowing them to continually refine and improve their GHG management strategies.
- By maintaining a consistent focus on implementation monitoring and progress review, organizations can build a robust framework for transparent and reliable GHG reporting, thereby bolstering stakeholder trust and demonstrating a commitment to sustainability.

DEKRA auditors employ the most current accounting principles and GHG calculation methodologies, including the complex verifications for Scope 3 categories. Positive verification statements can be shared publicly on your website, in your annual CSR reporting, and within various reporting frameworks to underline your commitment to accuracy in greenhouse gas accounting. Furthermore, these verified statements enhance stakeholder trust by demonstrating transparency and accountability in your environmental reporting practices.

By adhering to stringent GHG verification standards, your company not only meets regulatory requirements but also positions itself as a leader in sustainability initiatives. This commitment can lead to improved brand reputation, attracting environmentally conscious investors and customers who value corporate responsibility.

Verifying GHG Statement to ISO 14064-3

Levels of Assurance

Factors to Consider when Deciding on Level of Assurance

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