Carbon Footprint Standard Qualification Requirements. 3 January Issue 1.1

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Carbon Footprint Standard Qualification Requirements Carbon Footprint Ltd, Worting House, Church Lane, Basingstoke, RG23 8PX, UK +44 (0)1256 345 645 info@carbonfootprint.com www.carbonfootprint.com

Quality Control Version number: 1.1 Date: Report produced by: Report reviewed by: Director approval: John Buckley Managing Director, Carbon Footprint Ltd Rebecca Pattison Senior Environmental Consultant, Carbon Footprint Ltd Wendy Buckley Client Director, Carbon Footprint Ltd Page I

Table of Contents 1. Introduction... 1 2. Carbon Footprint Standard CO 2 e Assessed... 3 3. Carbon Footprint Standard Reducing CO 2 e... 6 4. Carbon Footprint Standard Carbon Neutral... 8 5. Transparency & Verification... 10 6. Apply for the Carbon Footprint Standard... 11 7. Abbreviations / Acronyms... 12 8. Glossary of terms... 13 9. Useful links... 15 Page II

1. Introduction 1.1. Carbon Footprint Standard The carbon footprint standard draws on and pulls together the leading standards in assessing, reporting and offsetting emissions. It is an internationally recognised standard that enables business to promote their low carbon credentials, whilst giving their customers confidence that an internationally approved process has been followed and verified against. The standard can apply to organisations, services, products and events. There are three levels of the standard: 1. Carbon Footprint Standard Assessed 2. Carbon Footprint Standard Reduced 3. Carbon Footprint Standard Carbon Neutral Assessed Organisation Reduced Organisation Carbon Neutral Organisation Assessed Product Reduced Product Carbon Neutral Product Assessed Service Reduced Service Carbon Neutral Service Assessed Event Reduced Event Carbon Neutral Event Page 1

1.2. The Two Key Principles of the Standards 1. Improve the accuracy of assessments and reporting 2. Improve transparency associated with communication 1.3. Benefits for a Company Implementing the Carbon Footprint Standard Give consumers and business confidence Give qualifying companies confidence in their own processes Demonstrate environmental credentials Enhance market reputation Motivate employees 1.4. How to Achieve certification The requirements for each level of certification are explained in the following sections of this document. If your company already follow the appropriate methodology, then the final step of qualification is verification by Carbon Footprint Ltd. 1.5. Use Once a company has achieved the standard for their business whether for their organisation, product, service or event, they can use the Carbon Footprint Standard logo in their marketing materials to demonstrate their carbon credentials. The Carbon Footprint Standard logos are trademarks of Carbon Footprint Ltd and can only be used under licence from Carbon Footprint Ltd. Licences are usually provided for a period of 12 months. 1.6. About Carbon Footprint Ltd Carbon Footprint Ltd has been a leading provider of carbon calculations, carbon reduction strategies and neutrality standards since 2004. Their website carbonfootprint.com is the home to the most popular freely available online carbon calculator tools for individuals, households and small businesses. Carbon Footprint Ltd provides calculation and verification services to companies of all sizes including multinational organisations for their compliance greenhouse gas reporting or voluntary reporting on systems such as the CDP (previously known as the Carbon Disclosure Project). Carbon Footprint Ltd is a founding member of the Quality Assurance Standard (QAS) for Carbon Offsetting. The QAS continues to give confidence to businesses and individuals that the calculation methodology being used has been independently verified and the offset project meets the highest standards available in the offsetting industry. In addition the scheme includes an audit process to verify that offset providers are following this standard and fulfilling the full offsetting obligations for their customers. Carbon Footprint Ltd s own Quality Management System (QMS) is certified by BSI to ISO 9001:2015 and their own Environmental Management System is certified by BSI to ISO 14001:2015. Page 2

2. Carbon Footprint Standard CO 2 e Assessed 2.1. Introduction The Carbon Footprint Standard CO 2 e Assessed can be applied to organisations, products, services and events. It shows that an appropriate assessment methodology has been followed. It will have either been independently assessed by an approved assessor or verified by Carbon Footprint Ltd s team of specialist greenhouse gas emission assessors. Assessed Organisation Assessed Product Assessed Service Assessed Event 2.2. Methodologies approved To qualify for the Carbon Footprint Standard CO 2 e Assessed, the footprint assessment must have been completed against one of the leading internationally recognised methodologies. The Carbon Footprint Standard CO 2 e Assessed recognises these standards as being robust methodologies: For Organisational Footprinting o WRI Greenhouse Gas reporting o BEIS Voluntary Reporting Guidelines (previously DECC) For Product and Service Footprinting o BSI s PAS 2050:2011 o ISO 14001:2015 o Greenhouse Gas Protocol Product Standard For Events o BSI s PAS 2060 o ISO 20121 2.3. Assessment Scope and Boundaries An early stage of any assessment is to clearly define the boundaries and scope of the assessment, to be made publically available. Page 3

The Carbon Footprint Standard branding must only be used to promote the credentials of the subject(s) included within the assessment scope and boundary. Example For a multinational company with offices and factories in USA, UK and China. If the assessment only covers the offices in the USA then this must be clearly defined. The Carbon Footprint Standard branding in this case can only be used for the USA offices and must not be used to promote the full organisation as having achieved the Carbon Footprint Standard, or any of the overseas offices or factories. The boundaries statement shall also include which sources of greenhouse gas emissions have been included in the assessment. For an organisation this would typically include: All of Scope 1 and Scope 2 emissions as defined by WRI s Greenhouse Gas Protocol. Plus Scope 3 emissions that are easily calculated. The table below shows the typical Scope of emissions for an organisation. The assessment must as a minimum include all emissions from buildings, fuel and transport that are under the direct control of the entity. The assessment should also define which greenhouse gases have been included. As a minimum, the following greenhouse gases should be included: Carbon Dioxide Nitrous Oxide Methane If any of these are not included then a statement must clearly define which are not included in the assessment and why this is the case. 2.4. Product and Services The boundary definition should as a minimum include Cradle to Factory Gate, however in many instances it could also include Cradle to Customer, Cradle to Grave or Cradle to Cradle. 2.5. Emissions Factors Emissions factors must be used from leading sources, and must be the most recently available versions of these factors. The Carbon Footprint Standard CO 2 e Assessed recognises these sources of emissions factors as being suitable. For Organisational Footprinting: BEIS (previously DECC) WRI s GHG Protocol Page 4

Nationally produced factors by government bodies (e.g. Environmental Protection Agency (EPA)) IEA for international country specific electricity factors For product footprinting, the approved factors are those included for the organisational footprinting plus other product and material lifecycle factors. Approved international databases include: Ecoinvent Bath University ICE factors 2.6. Communication All communications relating the footprint assessment must be clear and include the scope and boundary of the assessment. It must not overstate the assessment that has been made. 2.7. Verification The assessments need to either be carried out or verified by an approved verification body. Independent verification is highly respected and often results in extra points being awarded for reporting (e.g. with CDP). Page 5

3. Carbon Footprint Standard Reducing CO 2 e 3.1. Introduction The Carbon Footprint Standard CO 2 e Reduced can be applied to organisations, products, services and events. It shows that an appropriate assessment methodology has been followed, and the emissions have been reduced. It will have either been independently assessed by an approved assessor or verified by Carbon Footprint Ltd s team of specialist greenhouse gas emission assessors. Reduced Organisation Reduced Product Reduced Service Reduced Event 3.2. How to qualify To achieve the Carbon Footprint Standard Reducing CO 2 e the requirements for the Carbon Footprint Standard CO 2 e Assessed, will have been achieved at least twice over multiple years (this principle applies to organisational footprinting as well as Product and Services footprinting). There are three ways of showing Emission Reductions: Reducing Absolute Emissions (i.e. the total carbon footprint) Reducing Emissions by per unit of turnover (e.g. reductions of x tonnes of CO 2 e on a per Million USD turnover basis). Note reductions against turnover should also be corrected for inflation. Reducing Emissions by per unit of production (e.g. reductions of x tonnes of CO 2 e on a per widget basis) Note: One off events are not able to achieve Carbon Footprint Standard Reducing CO 2 e status. However, events that are repeated on a regular basis e.g. annual conferences, may qualify for this standard if they can show a reduction in emissions compared to the previous year or baseline year. Page 6

Although not a specific requirement of the standard we strongly recommend to set a carbon reduction target, and measure against this target on an annual basis. Page 7

4. Carbon Footprint Standard Carbon Neutral 4.1. Introduction To qualify for the Carbon Footprint Standard Carbon Neutral an organisation, product, service or event must have first achieved the Carbon Footprint Standard CO 2 e Assessed status. Following this all emissions must then be offset using carbon credits that have been generated by projects that meet the requirements outlined in this section. Carbon Neutral Organisation Carbon Neutral Product Carbon Neutral Service Carbon Neutral Event 4.2. Qualifying Carbon Offset Standards Following an assessment of the emissions using the standards and methodologies defined earlier in this document, the emissions can be offset through carbon offsets projects that meet the leading international standards. The standards currently approved are defined by the Quality Assurance Standard (QAS) for Carbon Offsetting. In general, the standards include: Verified Carbon Standard (VCS) Gold Standard Verified Carbon Reduction (Gold Standard VER) Certified Emission Reductions (CER) Gold Standard CERs Page 8

The following project examples are excluded from meeting the QAS and hence also excluded from the Carbon Footprint Standard Carbon Neutral requirements: large scale Hydropower projects (>20MW) use the destruction of trifluoromethane (HFC23) or nitrous oxide (N2O) from adipic acid production project methodologies; forestryrelated unless based on sustainable REDD+ project methodologies which include adequate mitigation to cover project failure. More information on the Quality Assurance Standard can be found at www.qascarbonneutral.com 4.3. Carbon Credit Retirements All carbon credits must be either be purchased via a QAS approved carbon offset provider or be able to demonstrate that carbon credits have been retired on behalf of the company, and relating to the product and assessment period being offset against. The carbon offset retirements must also be completed within a 12 month period of the entity the offsetting relates to. Page 9

5. Transparency & Verification For all levels of Carbon Footprint Standard, transparency is a key factor. To achieve the three levels of the standard covered in this document, the organisation applying for the standard must be able to show transparency. As a minimum requirement transparency should include: For the Assessment: 1. The methodology followed/used for the assessment 2. The definition of the Scope and Boundaries of the assessment 3. The results of the assessment For the Reduction: For Neutrality: 1. The Assessment transparency (as shown above) 2. Tracked emissions over two or more years 1. The Assessment transparency (as shown above) 2. Information about the project used: a. The name of the project b. The standard it is verified against c. The amount of emissions offset Page 10

6. Apply for the Carbon Footprint Standard To apply for the Carbon Footprint Standard, please contact our team of consultants who will explain the process for your specific organisation, product, service or event. Email: info@carbonfootprint.com Tel: 01256 345645 Page 11

7. Abbreviations / Acronyms Abbreviation BEIS BSI CDP CER DECC DEFRA EMS EPA GHG IEA ISO PAS QAS QMS REDD VCS VER WRI Definition Department for Business, Energy and Industrial Strategy British Standards Institute Previously known as Carbon Disclosure Project Certified Emission Reduction Department for Climate Change Department for the Environment, Food and Rural Affairs Environmental Management System Environmental Protection Agency Greenhouse Gas International Energy Agency International Organisation for Standardisation Publicly Available Specification Quality Assurance Standard Quality Management System Reducing Emissions from Deforestation and Degradation Verified Carbon Standard Verified Emission Reduction World Resources Institute Page 12

8. Glossary of terms There are many terms that are specifically used in measuring and offsetting emissions that many will be unfamiliar with. The table below aims to help provide information on some of the most common terms used in carbon management. Term Carbon Credit Carbon Footprint Carbon Neutral Carbon Offsets Carbon Reduction Carbon Registry CER CDM CO 2 e EMS Emissions Factors Growth Metric ISO 14001 ISO 9001 Kyoto Protocol Paris Agreement Meaning Relates to one tonne of CO 2 e The amount of CO 2 e released into the atmosphere as a result of the activities of a particular individual, organisation or community Having a net zero carbon footprint by balancing emissions released with an equivalent amount sequestered, avoided or offset Compensating emissions produced by funding an equivalent carbon saving elsewhere Reducing carbon emissions from the previous measurement or compared to a base line measurement An electronic registry system which records offsets, purchases, sales and retirements of project based carbon offsets Certified Emissions Reductions carbon credits issued by the CDM Executive Board from emissions reductions achieved by CDM projects under rules of the Kyoto Protocol Clean Development Mechanism defined in the Kyoto Protocol that provides for emissions reduction projects which generate CERs to help countries meet part of their emission reduction commitments under the Kyoto Protocol Carbon Dioxide Equivalent. This is the common unit for describing GHG s for any quantity and type of GHG it signifies the amount of CO 2 which would have the equivalent global warming impact Environmental Management System a set of processes and practices that enable an organisation to reduce its environmental impacts and increase its operating efficiency Values used to convert activity data, such as distance travelled, litres of fuel used or tonnes of waste disposed into carbon emissions Used to examine a company s historical growth which can be used to calculate and compare emissions e.g. per USD million turnover Sets out criteria and maps out a framework that an organisation can follow and be audited and certified against for their EMS Sets out the criteria for a quality management system and the standard is based on a number of quality management principles An International Agreement under which industrialised nations commit to reducing their GHG emissions An International Agreement within the United Nations Framework Convention on Climate Change (UNFCCC) dealing with greenhouse gases emissions mitigation, adaptation and finance starting in the year 2020. This aims to follow on from the Kyoto Agreement Page 13

PAS 2050 QAS Retirements (carbon) VCS VER A public available standard produced by BSI, defining a methodology for carbon lifecycle assessments of products Quality Assurance Standard provides a methodology and independent assurance for carbon offset providers Involves cancelling and thus effectively removing carbon credits from emissions trading schemes (or carbon registries) as a method for offsetting carbon emissions Verified Carbon Standard standard for voluntary carbon offsetting, ensuring that all project based voluntary emission reductions that are independently verified meet its criteria Verified Emission Reduction provide additional social and community benefits in addition to high quality carbon offsetting. One VER is the equivalent of 1 tonne CO 2 reduced. Page 14

9. Useful links The following links are provided for convenience. These are to external sources these links were checked and valid when this document was first published. If these external links have changed, then please notify Carbon Footprint Ltd, so they can be updated in subsequent issues. Useful links URL ICE www.circularecology.com/embodiedenergyandcarbon- footprintdatabase.html#.wh41abgczgc Carbon Footprint Ltd www.carbonfootprint.com CDM Registry cdm.unfccc.int CDP www.cdp.net/en IEA www.iea.org ISO www.iso.org/iso/home.html PAS 2050 shop.bsigroup.com/en/forms/pass/pas2050/ PAS 2060 www.bsigroup.com/engb/pas2060carbonneutrality/ QAS www.qascarbonneutral.com VCS Registry www.vcsregistry.com WRI Greenhouse Gas Protocol www.ghgprotocol.org Page 15