CDP's approach to verification

 

 Importance of verification

 

CDP puts relevant climate information at the heart of business, policy and investment decisions. As GHG emissions become increasingly material to a number of sectors, climate data collected by CDP is of growing importance for decision making. Data quality is therefore paramount for data users such as investors, business customers and governments.

The growing demand for reliable data drives the importance of verification. Verification provides an independent assessment of the systems and processes used to monitor and report an organization’s climate information, together with the data that is included within a company’s GHG assertion or a CDP response.

The verification process reviews both the climate data provided and the systems, models and controls in place for collecting and managing it. As such, independent verifiers are able to bring objectivity and experience to the data review, enabling inefficiencies and errors to be identified. Ultimately this assists in the continual improvement of the processes used and the accuracy and usefulness of the data to feed into internal development and cost saving programs.

 

 What is CDP’s current approach to verification?

 

CDP encourages companies to verify data that is submitted. Whilst verification is not currently a requirement, it is encouraged through the CDP scoring methodology. The methodology allocates a noteworthy percentage of the scores to verification:

  • ~10% of total points under the disclosure score and
  • 10% - 15% of total possible points under the performance score

In addition, companies must gain full points on the Scope 1 and 2 verification questions (8.6 and 8.7) to qualify for entry to the CDP A-list.

 

 What are the verification requirements to gain full points in 2015?

 

To gain full points on verification, companies should report verification of 70% or more of their reported Scope 1 and Scope 2 emissions in questions CC8.6 and CC8.7 and that they have not excluded any relevant sources from their GHG boundary in question CC8.4.

Partial points will be available to companies verifying less than 70% of their reported Scope 1 and Scope 2 emissions or to those who have reported relevant exclusions from their boundary in the question CC8.4. No changes have been made to Scope 3 emissions verification requirements.

A company should attach a third party verification/assurance statement (e.g. PDF, letter from verifier, CDP verification template). This can also be part of a larger document such as a CSR report. Note: website links will NOT be taken into account (in certain circumstances screenshots will be accepted – e.g. EU ETS database)

This documentation needs to:

  1. clearly relate to GHG emissions;
  2. relate to the relevant scope;
  3. relate to the correct reporting year;
  4. state the verification standard used**
  5. contain a verification opinion or finding.

** Standard used needs to comply with CDP criteria – see list of accepted standards.

If a company has had verification of a report (e.g. a CSR report, or ESG data contained within an annual report), they should attach the report itself alongside the verification statement, so that scorers and data users can identify what data has been verified. It is also acceptable to attach the whole report if it includes the statement from the verifier.

As companies’ verification procedures are not necessarily linked to the CDP reporting cycle, ‘verification under way’ is accepted under the scoring methodology, with full points available as long as the previous verification/assurance statement is attached as proof of process.

In addition, companies that are required to use CEMS (continuous emissions monitoring systems) for regulatory purposes can also achieve full points where they can provide appropriate evidence. Companies for whom this is relevant should select “no third party verification – regulatory CEMS required” and complete the necessary details in accordance with the guidance.

CDP’s strategic goal is to drive action by companies and cities globally to reduce greenhouse gas emissions, safeguard water resources and prevent the destruction of forests. To achieve this goal CDP has four key aims, all of which are laid out in CDP’s strategic plan. One of these aims is to make environmental performance central to investment and business decisions by, amongst other things, improving the quality and accessibility of our data. As verification of data is a key component of this, CDP continuously reviews verification requirements and considers how we can further raise the bar on verification of environmental data.

Please note that CDP is committed to providing one year’s notice to companies about any changes that will come into place concerning verification requirements.

For further details on scoring and reporting requirements, please consult the CDP guidance and scoring methodology, watch a webinar on changes from 2014 to 2015 or refer to the verification FAQ document.

CDP has produced a list of standards that have been assessed and deemed suitable for CDP reporting and those that have been evaluated and are not considered appropriate.

 

 Where will companies find support around verification?

 

CDP is working with its verification partners to produce and publish supporting resources on this webpage. If these do not address your queries, please direct questions to verification@cdp.net. Alternatively, companies can contact CDP verification partners here.

 

“The analysis of companies for Socially Responsible Investment purposes is getting more and more fact-based, as reporting of environmental social and governance data has become increasingly common. In the near future, verification of such data will gain importance, as the requirements regarding data reliability continue to increase.”

- Bank Sarasin & Co. Ltd.

“Increasingly, verification will become an important factor in our assessment of supplier responses to future CDP requests.”

- PepsiCo Inc.

Want to know more?

> Contact one of our partners

Email verification@cdp.net to ask a question or give us your thoughts on verification. We will respond or send it to our expert working group.

Webinar recordings

1) Verification of Climate Data: benefits and importance of verification.

> Watch the webinar
> Download the accompanying notes

3) Verbessern Sie die Glaubwürdigkeit Ihrer Daten - durch Verifizierung: Was ist ein typischer Verifizierungsprozess? Was ist die Bedeutung für Firmen und welche Hilfeleistung stellt das CDP? Ist es zu spät um für 2012 eine Verifizierung vorzunehmen und dafür Punkte zu erhalten?

> Watch the webinar
> Download the accompanying notes

CDP white paper

Want to find out more about verification? Read the CDP paper, Verification of climate data. This paper provides an insight into verification and assurance, why third party verification is important and how it can benefit companies, along with practical guidance on the topic.

Verification working group

CDP has formed a verification working group, in which we collaborate closely with selected verification partners in order to support reporting companies with helpful resources and further develop CDP’s approach to verification.

CDP verification partners

Bureau Veritas LRQA


SGS  
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