Greenhouse Gas (GHG) Emissions Reporting Verification

GHG emission reduction targets are integral to our Nationally Determined Contribution (NDC) to achieving the objectives of the Paris Agreement, the global accord on climate change.

Australia’s current NDC outlines three primary emissions reduction targets:

1. Reduce emissions by 43% by 2030: Australia aims to cut its greenhouse gas emissions to 43% below 2005 levels by 2030.
2. Multi-year emissions budget (2021-2030): For the decade leading up to 2030, Australia has set an indicative emissions budget of 4381 million tonnes CO2-e. This budget aligns with the 43% reduction target.
3. Achieve net zero emissions by 2050: Australia is committed to reaching net zero emissions by the year 2050.
   Organisations reporting on GHG emissions are contributing to Australia’s overarching NDC.

Right now, businesses must report Scope 1 and 2 emissions (explained below). While reporting Scope 3 emissions isn’t mandatory in Australia under the NGER Scheme, it’s gaining attention.

For example, California now requires larger companies to report Scope 3 emissions, with assurance reporting set for 2030.

Scope 1 emissions are direct GHG emissions from sources that an organisation owns or controls. For example, if a company operates its own fleet of vehicles, the carbon dioxide emitted from their exhaust would be classified as Scope 1 emissions.

Scope 2 emissions are indirect GHG emissions from the generation of purchased electricity, steam, heating, and cooling consumed by the reporting organisation. If a company purchases electricity from a power plant, the GHG emissions from producing that electricity are considered Scope 2 emissions.

Scope 3 emissions are all other indirect GHG emissions that occur in a company’s value chain. This includes both upstream and downstream emissions, such as those associated with product transportation, waste disposal, employee business travel and the use of sold products. Scope 3 emissions are often the most significant part of an organisation’s carbon footprint and can be challenging to measure and manage due to their complexity and the involvement of third-party entities.

CFRD stands for ‘Compliance and Financial Reporting Disclosure’. It is a crucial component in the framework of corporate governance and financial transparency. This type of reporting requires organisations to disclose detailed information about their climate-related compliance with regulatory standards and their financial performance.

GHG emissions assurance is a service that provides independent verification and validation of a company’s greenhouse gas emissions data. This process ensures that the reported emissions are accurate, reliable, and in compliance with relevant standards and regulations.

GHG emissions assurance may be pursued by an organisation for a number of reasons such as contributing to their annual report, to communicate to their customer, to meet regulatory or investor reporting requirements, or publicly disclose their emission reduction achievements. In many cases those disclosures are required to be assured by an independent third party.

Furthermore, organisations seek third-party validation to ensure their current GHG emissions inventory aligns with inventory and reporting standards, frameworks and requirements. Emissions factors, calculations and disclosure regulations are continuously evolving and Intertek SAI Global ensures your organisation is appropriately inventorying and reporting your GHG emissions data.

While standard environmental audits cover a broad range of environmental practices, GHG emissions assurance focuses specifically on verifying the accuracy and completeness of greenhouse gas emissions data. This specialised service requires technical expertise in GHG accounting and reporting standards.

GHG emissions assurance helps organisations accurately measure and report their carbon footprint, which is crucial for setting and achieving sustainability goals. Verified data supports informed decision-making, helps track progress over time, and aligns with global climate action initiatives, contributing to broader efforts to mitigate climate change.