environment

Climate change MITIGATION Emissions of (GHGs), been so effective sinceISO introduced Standards in the ISO 1406x series them in 2006 that many governmental for assessing and verifying GHG emissions bodies regulating GHG emissions have especially dioxide (CO2) from ISO 14064-1 (GHG emissions adopted these standards and made • and removals for organizations – them mandatory for assessing and burning fossil for , are corporate level) verifying GHG emissions regulated • ISO 14064-2 (GHG emissions causing change. ISO standards within schemes. and removals for organizations – Since then, ISO has published a related project level) play a role in mitigating its effects. standard, ISO 14067, for determining the • ISO 14064-3 (validation and GHG emissions, or , of verification of GHG statements) ISO 14065 (requirements products. This document describes the • for verification bodies) is a significant threat standards in the ISO 1406x series and • ISO 14066 (requirements to life on , so humankind needs how these contribute to the transition for verifiers) to first reduce and then ultimately to a zero-carbon economy. • ISO 14067 (GHG emissions eliminate emissions of . of products) Fortunately, this transformation to a zero-carbon economy is already hap- Taking action pening in many industrial, commercial Climate change is the single largest and municipal sectors, with ISO stand- threat facing humanity and biodi- ards playing a pivotal role in making versity. There is strong evidence that this happen. increasing concentrations of green- Based on the premise that monitoring, gases in the – validating and verifying GHG emissions notably CO from burning fossil fuels enables organizations to better target 2 for energy and transportation – are and control them, ISO technical com- mittee ISO/TC 207 for environmental changing the Earth’s climate. The other management has produced several key GHGs are (CH4), which standards in the ISO 1406x series to is typically generated when organic manage greenhouse gases from organi- such as sewage decompose,

zations, projects and products. All three nitrous (N2O) and halogenated parts of ISO 14064, for example, have compounds.

Climate change mitigation – 1 Principle greenhouse gases, their (GWP) and main sources

GAS ESTIMATED GWP* MAIN SOURCES Scientists have determined the Global RELATIVE TO CO2 Warming Potential (GWP) of all GHGs. Carbon dioxide 1× Fossil- for power This is the warming potential of a

(CO2) generation, transportation and relative to CO2. Halogenated gases, such

domestic heating/cooking as sulphur hexafluoride (SF6), hydro- (HFCs) and perfluoro- Methane 28× Fermentation, decomposition of (PFCs), typically have the highest (CH4) wastes, & gas industry, mines GWPs. This means that these GHGs can

Nitrous oxide 265× , fossil-fuel make a big contribution to climate change, (N2O) combustion, industry even if their emissions are much lower

than CO2. (see table opposite) Sulphur hexafluoride 22 500× Electrical insulation, medical Unless humankind takes firm and prompt (SF6) applications, tracer gas action to reduce GHG emissions, the Earth will become much, much warmer, sea levels Perfluorocarbons 6 630× to 17 400× Electronics manufacturing, will rise and there will be greater extremes in (PFCs) , fire suppressants, . In simple terms, medical applications Many scientists means many more storms, , major 4× to 8 060× Refrigeration, air conditioning, floods and heatwaves. This in turn leads to believe that (HFCs) insulation, fire suppressants, losses in , crop failures and - age to . continued changes trifluoride 17 200× Used as a source in the The threats are so severe that many sci- (NF3) electronics industry (plasma etching, entists believe that continued changes in climate will cause silicon chips, semi-conductors, LCD in climate will cause a mass extinction panels) as well as in the photovoltaic of biodiversity and make the Earth unin- a mass extinction and chemical laser industries habitable for most species, including us. According to the Intergovernmental Panel of biodiversity. on Climate Change (IPCC), we need to con- tain the average global temperature rise to within 1.5 °C and do so by 2030. * Source : The Intergovernmental Panel on Climate Change (IPCC) www.ipcc.ch

2 – Climate change mitigation Climate change mitigation – 3 This means we need to use energy more validating and verifying GHG emissions. The role of efficiently, replace fossil-fuelled sources These standards apply the principle that, of energy with zero-carbon, renewable in order to control an activity, we first ISO standards Standards in the ISO 1406x series energy sources to transform to a sustain- need to measure it. They are founded for GHG assessment and verification ISO standards have many roles in able zero-carbon economy. on the principles that apply to all • ISO 14064-1:2018, Greenhouse tackling climate change, from stra- There have already been many suc- ISO standards, i.e. harmonization, con- gases – Part 1 : Specification with tegic, governmental and organi- guidance at the organization level cesses in this transformation, with sistency, comparability, traceability and, zational levels, through to tactical for quantification and reporting technologies and techniques available above all, validity. As such, they serve as of emissions and applications at the project and even to reduce GHG emissions. In some indus- a useful complement to ISO 14001:2015, removals product levels. ISO standards in the trial sectors, emissions of CO2 have fallen Environmental management systems – • ISO 14064-2:2019, Greenhouse ISO 1406x series provide the tools for and ISO standards have played a crucial Requirements with guidance for use, and gases – Part 2 : Specification with organizations to develop the starting guidance at the project level for role in making this happen. are designed to integrate easily within an point for all programmes to control quantification, monitoring and This document describes the standards organization’s existing environmental reporting of greenhouse gas and then eliminate GHG emissions, in the ISO 1406x series for assessing, management framework. emission reductions or removal which is the baseline inventory. This enhancements can be at an organizational level, or • ISO 14064-3:2019, Greenhouse at the detailed level of an individual gases – Part 3 : Specification with process or product, also known as a guidance for the verification and carbon footprint. Having such data validation of greenhouse gas statements and information enables organiza- ISO 14065:2013, Greenhouse tions, regulatory bodies and compa- • gases – Requirements for green- nies to make informed decisions and house gas validation and verifica- then track their progress in reducing tion bodies for use in accreditation GHG emissions. or other forms of recognition The box on the right shows the • ISO 14066:2011, Greenhouse gases – Competence require- main standards in the ISO 1406x ments for greenhouse gas valida- series whilst the following sections tion teams and verification teams explain how these standards , • ISO 14067:2018, Greenhouse how they fit together and how they gases – Carbon footprint of play a big part in tackling climate products – Requirements and guidelines for quantification change.

4 – Climate change mitigation Climate change mitigation – 5 Two types of boundaries apply here : ∙∙ The organizational boundaries refer to any facilities for which the organization has practical and financial responsibilities.

∙∙ The operational boundaries refer to the organization’s activities, such as burning fossil fuels for heating and .

Once the organization has established these boundaries, ISO 14064-1 provides guidance on developing a register of direct and indi- rect emissions ; for example, employees travelling by air count as an indirect emis- Quantifying GHG emissions sion. The entity can then decide on appro- priate methods set out by ISO 14064-1 for ISO published all three standards sinks ”. ISO designed the stand- quantifying these emissions. in the ISO 14064 series in 2006, ard for any organization requiring If a GHG emission is The standard also contains advice on verify- revising them in 2018 and 2019. tools and guidance on evaluating ing the organization’s inventory ; verification and reporting GHG emissions. Spe- within the company is defined as the process of evaluating the ISO 14064-1 for cifically,ISO 14064-1 describes how data and methods to determine accuracy. quantifying GHG emissions an organization can create a list boundaries, then The 2018 amendments to ISO 14064-1 reflect at the organizational level of sources and sinks by first con- the increasing number of organizations The standard specifies how sidering its boundaries ; if a GHG the company has reporting indirect emissions. Furthermore, organizations develop auditable emission is within the company it includes new guidance on the measure- GHG inventories, where an inven- boundaries, then the company complete control of ment and reporting of specific examples tory is defined as the “sum of an has complete control of these of GHG sources and sinks based on users’ organization’s GHG sources and emissions. these emissions. experience.

6 – Climate change mitigation Climate change mitigation – 7 ISO 14067 for the carbon footprints of products

ISO 14067 describes the processes of determining

the indirect and direct CO2 emissions of products. ISO 14064-2 for quantifying GHG The scope applies to a single impact category – emissions at the project level the climate change impacts of products, where the carbon footprint (CFP) is defined as the sum ISO 14064-2 describes processes for quanti- of GHG emissions and GHG removals in a product fying, monitoring and reporting GHG emis- system, expressed as CO2-equivalents. ISO 14067 sion reductions or removal enhancements applies the widely used, proven International at the project level. In this respect, a project Standards for life-cycle assessment (LCA), is defined as a discrete activity or endeav- ISO 14040 and ISO 14044. our ; some examples include : ∙∙ An facility at a case study sewage treatment plant designed to ISO 14064-2 capture methane and then use the In 2014, the Forest Carbon Alliance methane to generate power in a gas in reforested 112 hectares of agricultural with native species of for offsettingCO ∙∙ 2 tree. Known as the Ontario Biodiversity emissions, in which trees are sinks or Afforestation Project, its aim was to absorbers for CO 2 convert agricultural used for fallow ∙∙ A carbon-capture-and-storage facility, into forest in order to increase biodiversity

where an underground well would and remove higher volumes of CO2 from CO provide a for captured 2 the atmosphere. The projected CO2 ISO 14064-2 applies a life-cycle approach removals were calculated according to assessing GHG emissions and removals to ISO 14064-2 and the Alliance from projects. The standard describes how commissioned external verifiers to assess the results, according to ISO 14064-3. users quantify the baseline emissions from The verifiers then determined that the sources and then explains the requirements project would remove an additional for quantifying the GHGs that sinks, or reser- 56 kilotonnes of CO2 over the hundred- voirs, remove from the atmosphere. project period.

8 – Climate change mitigation Climate change mitigation – 9 GHG removals are relevant because a ISO/TC 207’s subcommittee SC 7, Green- product might reduce the impacts of cli- house gas management and related mate change ; for example, techniques activities, to align with ISO 14064-1 and to remove CO2, such as carbon-capture- ISO 14064-2. and-storage, or capturing and using ISO originally published ISO 14067 as a methane from anaerobic digestion. technical specification ISO( /TS 14067) Applying the principles of LCA, in 2013. When ISO reviewed, revised ISO 14067 describes processes for deter- and republished this specification as mining GHG emissions and removals a higher-status standard in 2018, the from acquiring raw materials through working group responsible for the to the end of the product’s life, i.e. a standard aligned it with other GHG cradle-to-grave analysis. The standard standards, especially ISO 14064-3 for also describes how users can determine the processes of validation and verifi- a partial CFP, a cradle-to-factory-gate cation. And to ensure that verification analysis, or the CFP during the life of bodies apply ISO 14064-3 in a sound the product in use. and consistent manner, ISO developed ISO 14067 provides users with sig- ISO 14065 and ISO 14066. Validation and verification nificant benefits ; for example, the methods in the standard allow manu- ISO 14064-3 for verifying and validating GHG statements facturers and users of a product to One of ISO’s many strengths has been producing standardized tools track the performance of the product, for independent validation and verification. ISO 14064-3 fulfils this assess how design changes affect role. The standard specifies requirements and provides guidance the CFP of the product and provide GHG removals are on verifying and validating reports of GHG emissions, reductions information for consumers to make and removals. The terms verification and validation are defined as informed decisions about the product. relevant because follows : Moreover, there are several different ∙∙ Verification : a process for evaluating a statement of historical approaches to calculating CFPs, which a product might data and information to determine if the statement is materially can mean different results depend- correct and conforms to criteria ing on how each method works. For reduce the impacts ∙∙ Validation : a process for evaluating the reasonableness of the instance, ISO 14067 focuses on climate assumptions, limitations and methods that support a statement change impacts ; it was developed by of climate change. about the outcome of future activities

10 – Climate change mitigation Climate change mitigation – 11 Users can apply the principles in the the required criteria. This is critical for organiza- standard at organization, project and tions, regulators and other stakeholders – such product levels. ISO developed the as investors – to make informed decisions. standard for external bodies – such The 2019 amendments to ISO 14064-3 harmo- as third-party verification bodies. It is nized the definitions of verification and valida- therefore based on the four principles tion across standards, as well as adding annexes of independent assessment, which are which provide guidance on applying standards impartiality, ethical conduct, fair presen- based on over a decade of using the standard. tation and due professional care. Many regulatory bodies worldwide have Working in harmony adopted ISO 14064-3 as a mandatory accreditation standard, such as within The three ISO 14064 standards and ISO 14067 emissions trading schemes. dovetail within a systematic framework of ISO 14064-3 provides many tools that are assessment, validation and verification. based on proven techniques in financial At the initial level, ISO 14064-1, ISO 14064-2 accounting. These tools allow users to and ISO 14067 respectively describe processes assess the project or inventory in three and requirements for assessing the GHG emis- main areas : the information system, sions of organizations, projects and products. the data itself and a comparison of the As each of these standards results in statements assertion with verification data. Using of GHG emissions, ISO 14064-3 then specifies the concept of materiality from account- how third parties validate and verify these ing, verifiers can assess how accurate statements. the assertion is and define a materiality Meanwhile, ISO 14065 provides a quality threshold that helps to identify the use- assurance framework for third-party valida- fulness of the information and whether tion and verification bodies. Since the skills, any misinformation has occurred and knowledge, experience and qualifications of been transferred. personnel is a critical aspect of verification A verifier’s statement according to bodies, ISO 14066 in turn specifies the com- ISO 14064-3 confirms whether an organi- petency requirements for such staff. The fol- zation’s reported GHG emissions, reduc- lowing three sections describe ISO 14065 and tions and removals are consistent with ISO 14066 in more detail.

12 – Climate change mitigation Climate change mitigation – 13 The ISO 1406x series at a glance Validating and verifying GHG emissions

ISO has published two standards to ensure that validation and ISO 14064-2 ISO 14067 verification bodies assess GHG statements in a consistent, robust ISO 14064-1 Quantify, monitor Develop a CFP Design and develop and report emission per functional unit and comparable manner. The first standard, ISO 14065:2013, GHG inventories reductions and or a partial CFP for organizations Greenhouse gases – Requirements for greenhouse gas validation removal enhancements per declared unit and verification bodies for use in accreditation or other forms of recognition, applies to organizations, whilst the second, ISO 14066:2011, Greenhouse gases – Competence requirements

GHG inventory GHG project CFP study report for greenhouse gas validation teams and verification teams, applies and report documentation to the personnel who perform the assessments. and report ISO 14065 1) is an organizational accreditation standard based on five principles. These are : ∙∙ Impartiality Requirements ∙ Competence of assessment personnel GHG statement GHG statement GHG statement of the ∙ applicable A factual approach to decision making GHG programme ∙∙ Engagement type consistent with the needs of the intended user or intended ∙∙ Openness users ∙∙ Confidentiality

ISO 14064-3 The standard contains both general and specific requirements. Specification with guidance for the verification and validation The general requirements include : mechanisms of governance of greenhouse gas statements and management ; legal and contractual matters ; impartiality ; liability and financing. Specific requirements include : specifica- tions for the management system for GHG assessments ; planning ; risk assessment ; managing personnel and their competencies ; ISO 14066 operations ; communications ; records ; processes for validation ISO 14065 Competence or verification ; appeals ; and complaints. Requirements for requirements for validation and GHG validation verification bodies teams and verification teams

1) At the time of writing, ISO is revising ISO 14065. The scope will be extended to include validating and verifying environmental information.

14 – Climate change mitigation Climate change mitigation – 15 Overview of GHG standards and programmes

There are numerous programmes and schemes where GHG standards have either played a significant role, or where there is still scope for them to make a substantial contribution to monitoring, reporting and reducing GHG emissions. These include the Framework Convention on Climate Change (UNFCCC), the Intergovernmental Panel on Climate Change (IPCC) Methodology Reports, the GHG Protocol Corpo- rate Standard of the World Business Council for (WBCSD), and the ’s Trading System (EU ETS).

case study EU Emissions Trading System ISO 14066 dovetails with ISO 14065 and describes the skills, knowl- The European Union’s Emissions edge and experience that GHG verifiers need. It is underpinned by the Trading System (EU ETS) is the principles of independence, integrity, fair presentation, due profes- world’s first and currently largest sional care, professional judgment, and an evidence-based approach. trading scheme for allowance ISO 14066 then details the knowledge that assessors require. This in GHG emissions. The scheme includes an understanding and experience of data processing, audit- applies to over 11 000 energy- ing, technical knowledge, and an understanding of GHG programmes intensive industries and aviation and how these operate. in 27 EU countries, accounting for The standard then describes the competencies that assessors must 45 % of the EU’s GHG emissions. have to review statements of GHG emissions and those for processes Since its inception over ten ago, the EU ETS has set targets to of validation and verification.ISO 14066 also specifies requirements, reduce emissions by 20 % by 2020, and evidence needed, for assessors to demonstrate that they both using 1990s emissions of GHGs as possess and apply the required competencies, and that they are able a baseline, and by 40 % by 2040. to maintain their skills. The EU met the 2020 target by 2019.

16 – Climate change mitigation Climate change mitigation – 17 As with other emissions trading schemes that countries Other standards outside the EU have developed, GHG standards includ- ing ISO 14064-1, ISO 14064-3 and ISO 14065 have played in the series a crucial role in validating and verifying emissions The ISO 1406x series of standards has – and hence made a significant contribution to these already demonstrated a role in reductions in GHGs. Although the ISO 1406x series was climate change mitigation. Building developed as voluntary standards, many organizations on their successes, the experiences of such as the EU have made them mandatory, recognizing users and other needs, ISO/TC 207 is their value and importance in reducing GHG emissions. developing other standards that will This means that the ISO 1406x standards still have an make further contributions in the trans- untapped potential to help contain and then reduce formation to a zero-carbon economy, emissions elsewhere. as well as standards for climate change adaptation. Both new and developing standards will provide management tools and techniques for climate change adaptation, , environ- mental finance, carbon-risk disclosure and accreditation. These new and forth- coming standards include : ∙∙ ISO 14030-1, Environmental performance evaluation – Green debt instruments – Part 1 : Process for green bonds ∙∙ ISO 14030-2, Environmental performance evaluation – Green debt instruments – Part 2 : Process for green loans ∙∙ ISO 14030-3, Environmental performance evaluation – Green debt instruments – Part 3 : Taxonomy

18 – Climate change mitigation Climate change mitigation – 19 ∙∙ ISO 14030-4, Environmental performance evaluation – Green debt More information instruments – Part 4 : Verification ISO Website : www.iso.org ∙∙ ISO 14080:2018, Greenhouse gas ISOfocus magazine : www.iso.org/isofocus management and related activities ISO videos : www.iso.org/youtube – Framework and principles for Follow us on Twitter : www.iso.org/twitter methodologies on climate actions Join us on Facebook : www.iso.org/facebook ∙∙ ISO 14097, Framework and principles for assessing and reporting investments and financing activities related to climate change ∙∙ ISO/IEC 17029:2019, Conformity assessment – General principles and requirements for validation and verification bodies

The last standard in this list, ISO/IEC 17029, developed jointly by ISO and the Interna- tional Electrotechnical Commission (IEC), is the generic standard encompassing the application of ISO 14065 and ISO 14064-3. ISO/TC 207 will continue to develop standards wherever there is a need.

20 – Climate change mitigation Climate change mitigation – 21 About ISO

ISO (International Organization for Standardization) is an independent, non-governmental international organization with a membership of 164* national stand- ards bodies. Through its members, it brings together experts to share knowledge and develop voluntary, consensus-based, market-relevant International Stand- ards that support and provide solutions to global challenges. ISO has published more than 22 500* International Standards and related documents covering almost every industry, from technology to safety, to agriculture and healthcare. For more information, please visit www.iso.org.

*October 2019

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