Learning Outcomes
By the end of this lesson, you should be able to:
- Be able to review scope and boundaries of an emissions inventory
- Be able to review calculations and report for an emissions inventory
- Understand how to reach a conclusion at the end of an inventory
- Reporting and reviewing according to ISO14064
Video Duration: 25 minutes approximately
Lesson Notes
Reviewing Scope and Boundaries
Things to Check:
- Does the data in the inventory align with the agreed scope and boundaries?
- If the entity is not a full legal entity, how is it defined?
- Are all assets, facilities, personnel etc. fully included.
- If KPIs are used, does the organisational boundary align with the KPI boundary?
Organisational Boundaries:
- Need to be correctly established in the GHG statement
- Needs to be a true and fair representation of the organisation
For image see Reference Link 1.
Operational/Scope Boundaries
Verification of scope includes:
- Review of organisational processes for emission sources
- Verify all emissions sources have been identified
- Review of purchased fossil fuel sources
- Check correct emission scopes have been assigned
- Check emissions have been correctly apportioned (e.g. electricity in a shared office)
- Consistent methodologies used between GHG statements and across facilities
- Check for changes in organisational and assets during the reporting period (e.g. purchase or sale of equipment, change of location
Inclusions/Exclusions
For both organisational and reporting boundaries:
- Ensure that all inclusions and exclusions are clearly stated
- Are any exclusions material?
- Are material exclusions suitably justified?
Also include relevant observations from site visit.
Reviewing Calculations and Report
Check for Completeness
Is anything missing? Consider:
- Conversations: an example of missing information could be travel booked other ways than through travel agent
- Checking back to spend: look at finance systems to see if there are other suppliers
- Sense check: do the numbers make sense?
- Ensure any large differences in activity data or calculated emissions between reporting periods are explained
- Check emissions factors are correct
Reviewing Calculations
- Re-calculating – do you get the same answer?
- Follow spreadsheet calculations through from initial data to final numbers
- Are calculations understandable?
- Pivot tables can be useful here
- Sense-checking:
- Are numbers in the order of magnitude you would expect for the sector?
- Are the numbers similar to the previous year?
Reviewing the Inventory Report
ISO 14064-1:2018 list mandatory, recommended and optional inclusions for the report
- Mandatory:
- Organisational boundaries
- GHG Inventory Report
- Base Year
- Methodologies
- Emissions and Removals by Source
- Uncertainties
- Data Management
- Responsibilities
- Documentation and Records
- Recommended:
- Indirect GHG emissions
- Verification
- Reporting on GHG reductions
- Audit
- Optional:
- Sector-specific information
- GHG inventory for different time periods
- Stakeholder engagement
- Future projections
- Comparative performance
- Additional environmental metrics
Reaching a Conclusion
- A conclusion is reached based on the evidence that has been gathered and evaluated. Verifier then drafts a verification opinion
- Decision made on whether to issue an opinion or to disclaim the issuance of an opinion
- If the responsible party does not correct any material misstatement or nonconformity in an agreed period of time, the verifier shall take this into account when reaching the conclusion
Opinions
- Opinions refer to formal conclusions provided by auditory regarding the accuracy and reliability of the organisation’s GHG inventory
- Opinions assess whether the reported GHG emissions and removals are presented fairly and in accordance with criteria of ISO14064
- 4 types:
- Unqualified
- Qualified
- Adverse
- Disclaimer of opinion
Verification Reporting
- A verification report must contain at least:
- Relevant title
- An addressee/client name
- A statement that the responsible party is responsible for the preparation and fair presentation of the GHG statement in accordance with the criteria
- A statement that the verifier is responsible for expressing an opinion on the GHG statement based on the verification
- A description of the verification evidence-gathering procedures used to assess the GHG statement
- The verification opinion
- The date of the report
- The verifier’s location
- The verifier’s signature
- A summary of the GHG statement
- Reference to the verification criteria
- Verification scope
Levels of Assurance
Auditor’s Role in the Review Process
- Auditor begins by analysing the collected evidence to ensure it supports the GHG data:
- This includes cross-referencing with organisational boundaries and emissions sources
- Evaluating effectiveness of the organisation’s data management systems and controls, ensuring that they can prevent misstatements
- Reviews changes from previous reports
- Drafts the report, including:
- Verification process which they have gone through
- Evidence which was gathered
- The auditor’s opinion, based on the level of assurance achieved
Conclusion
- Reviewing scope and boundaries of emissions inventory
- Reviewing calculations and report
- Reaching conclusions
- Defining opinions according to ISO14064, and levels of assurance
- How to report and review
- Things to look out for throughout the review process