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CarbonCrop Team

Understanding ISO and GHGP in Carbon Accounting


forest growing in mountains

How do companies measure and report on their carbon footprints? Enter ISO and GHGP - two key frameworks in the world of carbon accounting and sustainability. They provide standards and guidelines for measuring, managing, and reporting greenhouse gas (GHG) emissions and removals. Let's break down what these acronyms mean and why they're so important.


What are ISO and GHGP?

ISO (International Organization for Standardization)

ISO could be called the global standard-setter. It's an international, independent, non-governmental organisation that creates standards for just about everything - including how we measure and report on greenhouse gas emissions.


Key Standards Related to Carbon Accounting:

  1. ISO 14064

    • Part 1 (ISO 14064-1)Guides companies on how to design, develop, and report their greenhouse gas inventories. It covers everything from setting boundaries to quantifying emissions.

    • Part 2 (ISO 14064-2)Focuses on projects. If you have a reforestation project or are installing renewable energy, this standard helps you measure its impact.

    • Part 3 (ISO 14064-3)Ensures accuracy in reporting by focusing on validating and verifying reported greenhouse gas data.

  2. ISO 14065:

    • Sets the bar for the competency, consistency, and impartiality of bodies checking your emissions data.

  3. ISO 14066:

    • Defines the skills and knowledge needed for those validating and verifying greenhouse claims.


GHGP (Greenhouse Gas Protocol)

If ISO sets the rules, GHGP is your comprehensive playbook. It's a globally recognised framework for measuring and managing GHG emissions from private and public sector operations, value chains, and mitigation actions.


Key components relating to carbon accounting


  1. Corporate Standard:

    • The go-to guide for companies to measure and report their greenhouse gas emissions. It sets a standard approach, making it easier to set boundaries, track emissions over time, and report on progress.

  2. Corporate Value Chain (Scope 3) Standard:

    • Helps companies look at emissions across their entire value chain, providing a method to measure and report on these emissions. 

  3. Product Life Cycle Standard:

    • Covers the carbon footprint of a product from start to finish, setting the approach to quantify emissions throughout the product’s life cycle.

  4. Mitigation Goal Standard:

    • Helps track progress over time for those setting greenhouse gas reduction goals.

  5. Project Protocol:

    • Provides a framework to quantify the benefits of set climate change mitigation projects, including activities like afforestation and reforestation.


Comparison and Integration


ISO Standards (e.g. ISO 14064-1)

GHGP (Greenhouse Gas Protocol)

What it does

Provides a global framework to quantify, monitor, report on, and verify greenhouse gas emissions and removals, ensuring environmental integrity.

Provides standardised frameworks to measure and manage greenhouse gas emissions from business operations, value chains, and mitigation actions.

Scope

Focuses on specific projects, or the application of carbon removals, verifying their proper use in carbon accounting.

Focuses on using removals to address greenhouse gas emissions across entire value chains and product life cycles.

Implementation Requirements

Requires detailed documentation, including organisational boundaries, greenhouse gas sources, sinks, reservoirs, a detailed greenhouse gas inventory plan, and an established greenhouse inventory.

Requires data on emission sources from all scopes (1, 2, and 3), defined operational boundaries, and a detailed greenhouse gas inventory plan.

Use

Internal reporting and verification of carbon reduction projects.

Supports participation in carbon markets and regulatory frameworks.

For external reporting and disclosures. 

Supports corporate sustainability reporting and compliance with regulatory requirements.

Verification and Validation

Must be third-party verified to ensure accuracy and credibility of claims.

Can be third-party verified and provides detailed guidance on verification processes.

Flexibility

Less flexible, providing a structured approach tailored to specific organisational needs and projects.

Moderately flexible, with a standardised framework that can be customised based on organisational size, sector, and specific reduction goals.


Putting into practice using New Zealand's forestry sector


ISO Standards

ISO standards are useful for forestry projects that need robust validation and verification processes. They ensure accurate measurement of how much carbon those trees are actually sequestering.


Example: 

  1. NZ Forest Company Ltd starts a reforestation project aimed at restoring native forests on degraded land in the North Island of New Zealand.

  2. ISO 14064-2 guides NZ Forest Company Ltd to define clear project boundaries, covering specific land areas and tree species for reforestation. They implement ISO-compliant methodologies for carbon stock assessment, supported by a structured greenhouse gas inventory plan.

  3. A comprehensive greenhouse gas inventory plan is developed, detailing the methods for measuring carbon sequestration, including sample plot selection, measurement frequency, and data management practices.

  4. Using ISO 14064-2 guidelines NZ Forest Company Ltd calculates the carbon sequestration rates from their forest areas. This involves measuring tree growth, biomass accumulation, and soil carbon changes.

  5. The company then reaches out to an independent verifier to assess the accuracy of the carbon sequestration calculations. The verifier uses ISO 14064-3 standards to ensure data integrity and transparency.

  6. Finally, NZ Forest Company Ltd compile a detailed report of the findings, including the total amount of carbon sequestered, methodologies used, and verification results. This report is used for regulatory compliance and participation in carbon markets.


Greenhouse Gas Protocol (GHGP)

NZ Forest Company Ltd leverages the GHGP to assess emissions not just from their operations, but across their entire value chain. This includes Scope 3 emissions from transportation, suppliers, and the full lifecycle of forestry products, capturing the bigger picture.


Example

  1. The NZ Forest Company Ltd applies the GHGP to assess emissions not just from their operations, but across their entire value chain, covering all three scopes of emissions:

    • Scope 1: Direct emissions from sources owned or controlled by the company, such as fuel combustion in company vehicles and machinery used in forest management.

    • Scope 2: Indirect emissions from purchased electricity used in facilities and operations.

    • Scope 3: Other indirect emissions, including those from transportation of goods, employee travel, outsourced activities, and the full lifecycle of forestry products.

  2. They implement a data management system to track and record emissions data across all relevant activities. This includes fuel usage logs, electricity bills, transportation records, and supplier information.

  3. Next, they start to analyse the collected data to identify major sources of emissions. Using the GHGP guidelines to calculate total emissions for each scope and identify areas for potential reduction.

  4. NZ Forest Company Ltd then extends the assessment throughout the entire value chain, including upstream and downstream activities in their calculations.

  5. They begin to develop and implement strategies to reduce emissions. Including transitioning to an electric vehicle fleet for their office based staff, investing in solar power, improving supply chain efficiency, and promoting sustainable forestry practices championed by their crews.

  6. Using the GHGP framework to prepare an annual sustainability report, NZ Forest Company Ltd highlights the company’s emissions, reduction efforts, and progress towards reduction goals. As they continue to work towards their decarbonisation goals, they update the strategies used based on performance and new opportunities for improvement.


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ISO and GHGP might seem like an unnecessary step when starting the carbon accounting process, but they're important tools for maintaining transparency and adding trust to your net-zero claims. ISO provides the rigorous, internationally recognised standards, while GHGP offers flexible, comprehensive guidelines for measuring and managing emissions across entire value chains. Together, these frameworks are helping organisations effectively account for their emissions reductions, set realistic targets, and maintain the integrity of their claims. 


Ready to take your carbon accounting to the next level?

Explore how CarbonCrop can simplify access to carbon markets and provide the data you need to meet the rigorous standards of ISO or GHGP today. Visit CarbonCrop today to learn more and report on your net-zero journey with confidence.


 

Glossary


Carbon Sequestration: The process of capturing and storing atmospheric carbon dioxide in a carbon sink, like forests.


Greenhouse Gases (GHG): Gases that trap heat in the atmosphere, contributing to global warming and climate change. Common examples include carbon dioxide, methane, and nitrous oxide.


ISO (International Organisation for Standardisation): An international, independent, non-governmental organisation that develops and publishes standards to ensure the quality, safety, efficiency, and interoperability of products, services, and systems.


GHGP (Greenhouse Gas Protocol): A comprehensive global standardised framework for measuring and managing greenhouse gas emissions from private and public sector operations, value chains, and mitigation actions.


Scope 1 Emissions: Direct greenhouse gas emissions from sources that are owned or controlled by the company (e.g. emissions from company vehicles).


Scope 2 Emissions: Indirect greenhouse gas emissions from the generation of purchased electricity, steam, heating, and cooling consumed by the reporting company.


Scope 3 Emissions: All other indirect emissions that occur in the value chain of the reporting company, including both upstream and downstream emissions (e.g. emissions from transportation of goods, waste disposal, and product use).


Boundary Setting: Defining the physical or organisational limits for the GHG inventory, which determines what emissions are included or excluded.


Biomass Accumulation: The increase in organic material in living organisms, particularly plants, which can store carbon and thus help in reducing atmospheric carbon dioxide levels.


Data Management System: A software, or systematic method, for collecting, storing, and analysing data, ensuring accuracy and efficiency in managing information.


Mitigation Actions: Steps taken to reduce adverse effects on the environment, particularly those aimed at reducing greenhouse gas emissions or enhancing carbon sequestration.

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