ISO 14064-A standard to measure the organizational carbon emissions

Standard ISO 14064 has three parts, each part is having specifications:

1. Organization Level Part 1: Specification with Guidance for Quantification and Reporting of Greenhouse Gas Emissions and Removals

This part of ISO 14064 is intended to guide organizations in the quantification and reporting of GHG emissions and removals, outlining the principles, requirements, and guidance necessary for the preparation of GHG inventories that are complete, transparent, and accurate. The basic elements need to be organizational boundary setting; identification of sources and sinks of GHG; choice of appropriate calculation methods; and assurance of accuracy and completeness of data. Through proper implementation of Part 1, an organization will be able to establish a baseline of its emissions and, over time, measure its progress.

2. Part 2: Project-Level Specification with Guidance for Quantification, Monitoring, and Reporting of Greenhouse Gas Emission Reductions or Removal Enhancements

Part 2: this part guides at project level specifications required for GHG quantification, monitor, and report on emission reductions or removal enhancements that a project or activity achieves. It lays down the requirements for designing projects, determination of baselines, plans for monitoring, and protocols for reporting. This part is of core importance to organizations working on carbon offsetting projects or having any other initiatives leading to the reduction of emissions—how they ensure that their claims are actually so, and also how transparency in such reduction efforts can be achieved.

3. Part 3: Requirements with Guidance for GHG Verification and Validation of Greenhouse Gas Assertions

Part 3 of ISO 14064 discusses validation and verification processes of GHG assertions at either the organizational or project level. The document offers specifications and guidelines to independent third-party entities for examining the accuracy, reliability, and completeness of GHG inventories, as well as emission reduction claims. This section aims at ensuring the credibility and integrity of GHG information reported by organizations and assures stakeholders with adequate confidence in the reported data for decision-making in mitigation strategies vis-à-vis climate change.

GHG accounting may have several benefits to an organization in many ways.

Direct Cost Savings: It has been seen companies who are serious towards climate change, had direct cost savings with time. Measures like Energy efficiency, wastes reduction, and resource management has led towards profitability.

Revenue growth: This is where sustainable practices attract environmentally sensitive customers and investors, hence driving sales and investments. According to a report by the CDP, companies that report and manage and reduce their carbon footprint had an 18% higher return on investment compared to companies that don't.
https://www.cdp.net/en/articles/companies/how-can-companies-address-their-scope-3-greenhouse-gas-emissions

Risk Management: Proactive reduction of carbon emissions reduces regulatory risks and future-proofs operations, besides supporting a range of international and national GHG reporting schemes.

Brand Value: Improved corporate image translates to increased customer loyalty and a differentiated market position. Unilever's Sustainable Living Plan measured and had targets for GHG emissions reduction, and its sustainable brands grew 46% faster than the rest of the business.

https://www.unilever.com/news/press-and-media/press-releases/2019/unilevers-purpose-led-brands-outperform/

ISO 14064 provides a basis for organizations to measure, manage, and reduce GHG so that it is controllable for the worldwide efforts of mitigation towards meeting sustainability goals related to climate change.

There are certain challenges business has faced at the time of carbon accounting.

1. Of fundamental challenge is the decision on what data to collect in GHG accounting. This requires the definition of operational boundaries of the organization and identification of its activities contributing to carbon emissions, which may be quite complex.

2. Self-measurement of emissions risks introducing unintentional bias and possibly missing some sources of emission.

Demand is becoming evident for GHG accounting as knowledge among consumers increases and investor interest grows. By reporting through this standard, companies would realize it does not only helps in the savings but also built better reputation and stronger relationships with stakeholders.

FAQs:

What is ISO 14064?

Answer: ISO 14064 is an international standard providing all-inclusive framework for the quantification, monitoring, reporting, and verification of GHG emissions and removals. It guides any organization in measuring, managing, and reducing the carbon footprint.

Why do GHG emissions of an organization need to be measured?

GHG emissions need to be measured so that organizations understand their environmental impact and can set reduction targets, track progress, and express a commitment to sustainability. This also enables regulatory compliance and stakeholder expectations.

Why is third-party verification important in GHG accounting?

Answer: Third-party verification provides an organization with an independent assessment of the accuracy and reliability of GHG data, enhances trust in GHG data by the stakeholders, offers transparency, and facilitates informed decisions about mitigation strategies on climate change.

What are the steps entailed in verification according to ISO 14064?

1. Verification planning—conduct document review, strategic analysis and risk assessment, and develop an evidence-gathering and verification plan.
2. Verification activities—conduct on-site verification
3. Independent review—assess GHG calculation and statement, form and draft an opinion
4. Issue opinion

What are the common issues to be faced in carbon accounting organizations?

Answer: Typical challenges are identification of scope and boundaries from where data should be collected, accuracy and completeness of data, integration of GHG accounting into the existing business processes of a company, and potential of bias measurement without proper policy on self-measured emissions.

How can GHG accounting be integrated into the business processes of organizations?

Answer: GHG accounting in companies can be integrated into the organizational matrix and automated by aligning it with the business strategy of an organization, including metrics of sustainability in performance appraisals, cross-functional collaboration, and making GHG management practices part of operational workflows.

What role do all the stakeholders play in GHG Accounting?

GHG accounting, through such stakeholders as customers, investors, regulators, and employees, becomes a driving force. These stakeholders engage in driving demand for transparency, accountability, and sustainability. This stakeholder engagement allows organizations to bring their GHG management into conformity with broader societal expectations and various regulatory requirements.