2021 Organization Compliance Report

Last updated

Attachments
    Loading...

2021 ICROA Accredited Organization Annual Compliance Report

Drive down your carbon footprint | Carbon Calculator

 

The Code of Best Practice ensures ICROA Accredited organisations, and their clients, undertake carbon management strategies that lead to ambitious and impactful climate action.

The Code of Best Practice is structured as follows:

  • Section 1: Carbon management services
  • Section 2: Sourcing and use of carbon credits for offsetting

In cases where an organisation does not deliver certain elements of a carbon management service or sub- contracts these elements (e.g. GHG emissions reduction advisory services), then the Accredited organisation is not required to adhere to the corresponding requirements in Section 1. Section 2 must be completed in full.

For the sake of clarity, services not covered by this Code of Best Practice include, but are not limited to, services related to compliance and pre-compliance activities such as the provision of carbon credits and non- project-based carbon instruments (e.g. allowances) in connection with clients’ current or future regulatory obligations.

Further, this Code of Best Practice does not cover environmental instruments or activities when they are not used to offset a client’s footprint e.g., tree planting services, Energy Attribute Certificates (EACs). EACs are proof of ownership of zero-emission electricity and shall therefore not be used for offsetting but as an accounting tool to lower emissions in ‘Scope 2’. Consequently, EACs are not in the scope of this Code of Best Practice.

The Code of Best Practice is written using terminology to enable organisations to assess their compliance. The following terms are defined in accordance with established terminology of the international standards community:

  • The term “shall” indicates a ‘requirement’ strictly to be followed, without deviation, in order to be in compliance.
  • The term “should” indicates a ‘recommendation’ for a course of action that is preferred but not strictly required.
  • The term “may” indicates a ‘permissible’ course of action within the limits of the Code of Best Practice.
  • The term “can” indicates a ‘possible or capable’ situation that is actual or potential.

 

Tip Icon Tip Icon - Light Bulb Idea - 647x601 PNG Download - PNGkit
  • As a reminder the 2021 ICROA Compliance Period covers the period from January 1, 2021 to December 31, 2021
  • Under each section that you are required to complete below - you must provide detailed information that demonstrates you have fulfilled the requirement of the ICROA Code.  You can also provide attachments as necessary.
  • When you've completed the Compliance Report please send an email to Lisa Marroquin (lm@climate-check.com)

Attestations

Attestation to actively advance ICROA Principles

Please check the boxes below to confirm that your organization commits to the ICROA Principles

As an ICROA Accredited organisation, I commit to actively advancing the ICROA Principles:

*End users of carbon credits, e.g. clients of ICROA Accredited organisations


 

Attestation of Completeness and Accuracy

Please upload as an attachment  the Attestation of Completeness and Accuracy of this 2021 Annual Compliance Report. A template is provided on the right under attachments.

Section 1: Carbon Management Services

1.1 GHG Emissions and Removals Inventories (Footprint)

During the 2021 Compliance Period did your organization perform or sub-contract the following carbon management services (please check all that apply):

 

1.1.1 Require clients to measure their GHG Inventory

The Accredited organisation shall actively require clients to measure their GHG inventory.


 

 

 

1.1.2 Perform GHG inventory measurement activities with accepted Standards and Emission Factors

If an Accredited organisation performs GHG inventory measurement activities for clients or sub- contracts these to a third-party, then; they shall perform these activities in accordance with the WRI/WBCSD GHG Protocol Corporate Accounting and Reporting Standard (including the GHG Protocol’s Scope 2 Guidanceand Corporate Value Chain (Scope 3) Standard) or ISO 14064-1:2018. Further, they shall measure in accordance with accepted standards and shall use where possible publicly available and nationally relevant emissions factors from reputable and recognized sources, for example, the IPCC, published Government data, peer reviewed studies.

Additionally, supplier specific emission factors or calculations are encouraged, provided the supplier has derived their calculations using standards or guidance that are applicable to their operation and the intended use of the organisation completing the measurement.

Please provide a list of all GHG Inventories completed during the 2021 Compliance Period.


 

 

 

 

1.1.3 Perform product or service footprints on a life cycle basis

If Accredited organisations conduct product or service footprints or if they sub-contract these activities to a third-party, then; the Accredited organisations shall determine these footprints on a life cycle basis*. As examples, the PAS 2050, WBCSD-WRI GHG Protocol Product Life Cycle Accounting and Reporting Standard (2011), Greenhouse Friendly Program, Bilan Carbone documents, ISO 14067, ISO 14040 and 14044 or any other relevant and credible guidelines developed and/or adopted by international or national organisations in the future can provide guidance on how to estimate product and service emissions on a life cycle basis.

*The WBCSD-WRI GHG Protocol Corporate Value Chain (Scope 3) Accounting and Reporting Standard (2011) and WBCSD-WRI GHG Protocol Product Life Cycle Accounting and Reporting Standard (2011) provide international requirements and guidance, however, these documents are being considered by ICROA and are not incorporated explicitly into the ICROA Code of Best Practice.

Please provide a list of all Product and/or Service Footprints completed during the 2021 Compliance Period.


 

 

 

1.1.4 Disclosure and Justification of RFI

If Accredited organisations perform any footprinting measurement for air travel, then; they shall publicly disclose and justify (e.g., on their website) what Radiative Force Index (RFI) they apply when calculating air travel emissions.


 

 

 

 

1.1.5 Accuracy of Calculators

If Accredited organisations provide calculators for clients to quantify trips, events, energy usage, etc or sub-contract this to a third-party, they shall ensure calculators are always accurate to the latest published emission factors and recognised GHG accounting practices.


 

 

 

 

1.2 GHG Emissions Reduction Advisory Services

During the 2021 Compliance Period did your organization provide GHG emission reduction advisory services:


1.2.1 Encourage science-aligned emissions abatement targets

Accredited organisations shall encourage clients to set science-aligned emissions abatement targets, aligned to the UNFCCC and Paris Agreement goals. Clients shall be encouraged to perform a comprehensive assessment of opportunities to reduce direct and value chain emissions aligned with science.


 

1.2.2 Encourage clients to set carbon abatement targets and to be transparent in reporting

For product or service offers (e.g., carbon neutral deliveries), Accredited organisations shall encourage their clients to set carbon abatement targets and be transparent in reporting. Ideally, recognised protocols for applying the mitigation hierarchy / carbon neutrality should be followed such as BSI PAS 2060 and NCOS.


 

 

1.2.3 Encourage clients to transparently communicate performance targets

Accredited organisations shall encourage clients to transparently communicate performance relative to their short, medium and long term abatement targets. Likewise, clients’ product and/or service activities (as defined in 1.2.2) shall be transparently communicated and in the public domain, e.g. on the client’s website.


 

 

 

1.2.4 Encourage clients to increase ambition

Accredited organisations shall encourage clients to increase ambition and go beyond their abatement targets through the use of offsetting.


 

 

1.2.5 Internal Emission Reduction Opportunities

Accredited organisations may outsource the assessment of internal emissions reduction opportunities to a subcontractor, and under such circumstances the subcontractor shall be contractually obligated to satisfy the requirements of the Code of Best Practice.


Did you organization outsource internal emission reduction opportunities during the 2021 Compliance Period?

 

1.3 Offsetting

1.3.1 Approved Carbon Standards

Accredited organisations shall only use/sell carbon credits that are approved by ICROA in relation to their offsetting services.


No response required - please see Section 2.1 for guidance.

 

1.3.2 Retirement of Credits

Accredited organisations and/or their clients shall retire carbon credits used for voluntary offsetting in a recognised third-party registry. These carbon credits shall adhere to Section 1.3.1 regardless of the third-party registry used. Further, when making a carbon neutrality and/or offsetting claim, retirements should be made in advance of such claim or according to recognised protocols (e.g. BSI PAS 2060) or explain why this is not the case and provide substantiation including how risk is managed - both the contractual risks and reputational risks associated with marketing claims as stated in Section 2.4.


During the 2021 Compliance Period, did your organization retire credits for the client in advance of them making their carbon neutrality and/or offsetting claim? If you check more than 1 box below please explain your answer and provide supporting documentation.

 

 

1.4 Transparent and Robust Communications

If during the 2021 Compliance Period your organization provided GHG emission reduction advisory services please provide a response to Sections 1.4.1 -1.4.5.

1.4.1 Communication of Total GHG Emissions

While being cognisant of the client’s rights to confidentiality, Accredited organisations shall encourage clients to communicate their carbon inventory and reduction activities, including but not necessarily limited to the following:

  • The client’s total GHG emissions associated with the organisation, product, service or event.

 

 

1.4.2 Communication of Actions taken to reduce emissions

 While being cognisant of the client’s rights to confidentiality, Accredited organisations shall encourage clients to communicate their carbon inventory and reduction activities, including but not necessarily limited to the following:

  • Actions being taken by the client to reduce GHG emissions.

 

 

1.4.3 Communication of GHG Emissions Offset

While being cognisant of the client’s rights to confidentiality, Accredited organisations shall encourage clients to communicate their carbon inventory and reduction activities, including but not necessarily limited to the following:

  • Any GHG emissions that are being offset for the client, and details of the project(s) generating the carbon credits (for example, if a portfolio approach is used).

 

 

 

1.4.4 Communication of the link to the offset registry

While being cognisant of the client’s rights to confidentiality, Accredited organisations shall encourage clients to communicate their carbon inventory and reduction activities, including but not necessarily limited to the following:

  • A link to the registry where the carbon credits have been retired.

 

 

1.4.5  Communication of Uncertainties and Risks

While being cognisant of the client’s rights to confidentiality, Accredited organisations shall encourage clients to communicate their carbon inventory and reduction activities, including but not necessarily limited to the following:

  • Any uncertainties or risks associated with the carbon footprint or internal or external emission reductions.

 

 

 

 

Section 2: Sourcing and use of carbon credits for offsetting

2.1 Carbon Standards

When Accredited organisations are offsetting, or contracting to offset GHG emissions on behalf of a client, they shall only use carbon credits sourced from projects that are validated, verified and registered under the following carbon standards endorsed/conditionally endorsed by ICROA:

  • American Carbon Registry (ACR)
  • Architecture for REDD+ Transactions (ART) The REDD+ Environmental Excellence Standard (TREES)
  • Climate Action Reserve (CAR)
  • Emissions Reduction Fund (ERF) of the Australian Government
  • Global Carbon Council (GCC)
  • Gold Standard
  • UNFCCC Mechanisms
  • UK Woodland Carbon Code (UK WCC)
  • Verra’s Verified Carbon Standard (VCS)

Non-carbon Accounting Standards: Accredited organisation may use carbon credits which have another certification such as for biodiversity or any other sustainable development component. For example, a project under the VCS may also achieve certification under Climate, Community and Biodiversity Standard (CCB) to demonstrate additional benefits associated with the project. These carbon credits must be labelled as appropriate.


During the 2021 Compliance Period, did your organization use (sell, transfer and/or retire) credits on behalf of a client for voluntary offsetting from the following standards (Please check all that apply):

For each of the standards checked above please provide a comprehensive list of all transactions which includes at a minimum, the sale date, transfer and/or retirement date, the project name, the volume sold, the client/organization sold to and the carbon credit serial reference number.

 

During the 2021 Compliance Period, did your organization use (sell, transfer and/or retire) carbon credits which have another certification such as CCB?


 

2.2 Exceptions

The following exceptions apply to the endorsed carbon standards in Section 2.1. Accredited organisations shall comply with these exceptions, if applicable:

2.2.1 Government-Approved Schemes

Carbon credits from approved Government schemes may be provided by Accredited organisations to their clients, on the strict condition that Government scheme certified carbon credits shall only be used within the context of the Government scheme and shall not be sold as voluntary carbon credits outside the context of the Government scheme, unless these methodologies have been separately approved by ICROA.

During the 2021 Compliance Period, did your organization use (sell, transfer and/or retire)  voluntary carbon credits from Government Schemes? 


 

2.2.2 Non-compliant carbon credits

Forecasted Mitigation Units (FMUs) issued by the Climate Action Reserve, forward carbon credits issued under Gold Standard’s forestry projects and Temporary or Long-term CER (t/l-CER) are not considered valid because they do not meet ICROA requirements.

During the 2021 Compliance Period, did your organization use (sell, transfer and/or retire)  any of the following credits?


 

 

2.2.3 Bundling

Where Accredited organisations offer their clients carbon credits from regional, emerging or innovative schemes to enhance VCM development and innovation, Accredited organisations shall demonstrate that the credits were effectively “bundled” with carbon credit retirements from at least one ICROA-endorsed carbon standard. In such scenarios, Accredited organisations should communicate to their clients that offsetting is achieved only through carbon credits from the ICROA-endorsed carbon standard. Any such bundling shall be transparently reported.

During the 2021 Compliance Period, did your organization use (sell, transfer and/or retire)  carbon credits from regional, emerging or innovative schemes?


 

 

2.3 Sustainability

All projects registered under an ICROA-endorsed carbon standard have a net positive or at least neutral impact on social, economic and environmental factors. Accredited organisations may promote sustainable development in the projects that they develop and/or provide. Accredited organisations should communicate whether and how they have assessed the sustainability impacts of their projects and promote the co-benefits or refer to the Sustainable Development Goals when evaluating their impacts. Sustainability standards such as CCB should be communicated appropriately so as not to be confused as carbon standards.


 

 

 

2.4 Delivery Assurance for Carbon Credits Sold in Advance of Verification

When Accredited organisations contract to sell carbon credits to a client in advance of verification and issuance of those credits (herein referred to as “Carbon Credits Sold in Advance of Verification”), they shall provide clients with appropriate and transparent levels of delivery assurance.


During the 2021 Compliance Period did your organization sell carbon credits in advance of verifications and issuance?


 

2.4.1 Delivery Guarantee and Appropriate Safeguards

At a minimum, such Accredited organisations shall either:

a)  Provide a contractual guarantee of delivery or replacement, by demonstrating the financial viability to underwrite such guarantee, i.e. Contractual Financial Guarantee, or by having in place ’Contractual Appropriate Safeguards’ to minimize the requirement for replacement and protect the guarantee; or

b)  When a delivery guarantee is not provided, have in place ’Appropriate Safeguards’ to minimize the risk of project under-performance. Appropriate Safeguards means the minimization of, and insurance against, risks by reserving a portion of the project portfolio as a ‘buffer’, to the extent and if reasonably required to safeguard performance adequately. Accredited organisations using such safeguards shall adjust their reservation practices based on experience and industry best practice where available.


 

 

 

2.4.2 Disclosure of Delivery Guarantee

At the point of sale, Accredited organisations shall transparently disclose if the delivery is guaranteed, the measures that are in place to minimize the risk of project under-performance and what sources of reductions and/or removals are eligible replacements, as applicable.


 

 

 

2.4.3 Development/Operational status of the Project

At the point of sale, Accredited organisations shall make reasonably available* the current development or operational status of the project and the expected date or dates of future verification and issuance.

* For the purposes of this document, “Reasonably available” will be taken to mean the following: in the instance of sales to the public (also known as “consumer sales”), information will be considered to be “reasonably available” when made publicly available on an Accredited organisation’s website or other publicly available materials / collateral. In the instance of corporate, or business-to-business, sales, information will be considered to be “reasonably available” when included in written communications or documents (e.g. contractual documents) pertaining to the appropriate sale, either at the behest of the Accredited organisation or the Accredited organisation’s client.


 

 

 

2.4.4 Provision of Verification Information to the Client

Accredited organisations shall make reasonably available to their clients, directly or on their website as applicable, the actual dates of verification and issuance; any deficiency in the verified volume relative to the volume actually sold to such clients; and the sources of any replacements.


 

 

 

2.4.5 Communication Materials to Clients that Purchase Carbon Credits

Accredited organisations shall provide clients that purchase carbon credits with clear and easy to understand communications materials and shall encourage them to communicate the nature of their carbon credit purchases accurately and transparently.