GHG Verification

ISO 14064-3 is the standard that defines the ACTIVITY of verifying and validating greenhouse gas assertions. While 14064-1 and 14064-2 say what is to be quantified, 14064-3 defines how that quantification is independently assessed: level of assurance, materiality, evidence gathering and how the statement is worded.

The aim is that verifications performed by different bodies are comparable and trustworthy. Without a common method each verifier would choose its own depth and the statements would not be equivalent.

• Organisations wanting their greenhouse gas statement verified
• Those requiring validation and verification for carbon-credit projects
• Businesses subject to regulatory reporting
• Sustainability teams procuring verification services

• The principles of verification and validation activities: impartiality, an evidence-based approach, a conservative approach
• Determining the assurance level: limited or reasonable
• Defining the materiality threshold and assessing misstatements
• Strategic analysis and risk assessment
• The verification plan and the sampling approach
• Evidence-gathering methods: review, recalculation, site visit, interview
• Assessing findings and checking corrections
• Independent review and decision
• The content and wording of the verification statement

• ISO 14064-3
• ISO 14064-1
• ISO 14064-2
• ISO 14065
• ISO 14066

• ISO 14064-3
• ISO 14064-1
• ISO 14064-2
• ISO 14065
• ISO 14066

1. 1Defining the Scope and BoundariesThe organisational boundaries (operational or financial control), the reporting period, the scopes included and the materiality threshold are set out in writing.
2. 2Preparation of the Inventory by the OrganisationThe organisation prepares the inventory report containing its calculation and data sources. The verifier cannot perform that calculation; the impartiality rule does not permit it.
3. 3Strategic Analysis and Risk AssessmentThe risk of misstatement in the data flow is assessed; the sampling plan and the extent of site visits are built on that risk.
4. 4Verification PlanThe level of assurance (limited or reasonable), the materiality threshold, the method of gathering evidence and the site visits are planned.
5. 5Gathering EvidenceData trails are followed back to source: invoices, meter readings, supplier records and production data are checked. Emission factors and the calculation method are verified.
6. 6Site VisitAt selected sites the data collection process is examined on the spot; measurement points and record-keeping arrangements are observed.
7. 7Closing Out the FindingsMisstatements and nonconformities are communicated to the organisation; the report is corrected and the corrections are re-checked.
8. 8Independent Review and StatementAfter a review independent of the verification team, a verification statement is issued that states the level of assurance explicitly.

ISO 14064-3 defines two levels of assurance. Under REASONABLE assurance the depth of evidence and the sampling are wider and the statement is worded positively. Under LIMITED assurance the examination is narrower and the statement is worded as nothing having come to attention to the contrary. Reasonable assurance is markedly more costly; which level is required is usually set by the party the statement is submitted to — a regulator, a customer or an exchange.

• Details of the verification body and the verification team
• The organisation verified, the reporting period and the organisational boundaries
• Scopes included and exclusions made
• Standard applied and level of assurance
• Materiality threshold
• The verified total emissions figure and its breakdown by scope
• Summary of the verification activity and the site visits
• Misstatements identified and corrected
• The verification conclusion and the text of the statement

A verification statement belongs solely to the reporting period verified and the organisational boundaries defined; the following year's data requires a new verification. The statement is not a certificate and does not run on a three-year certification cycle. Verification also does not mean that emissions are low or that a target has been met; it shows only that the reported figure has been calculated correctly.

Greenhouse gas verification and validation activities are accredited under ISO 14065; the verification itself is performed to ISO 14064-3 and the competence of verification personnel is defined by ISO 14066. Assurance engagements, by contrast, are governed by assurance standards such as ISAE 3000 and do not fall within accredited certification. In both frameworks the impartiality rule is decisive: the party that performs the calculation cannot verify that same calculation. EUROLAB holds internationally recognised accreditation from accreditation bodies that are signatories to the ILAC and IAF mutual recognition arrangements; which verifications can be offered within accredited scope is confirmed in writing at the quotation stage.

• Organisational GHG
• Project GHG