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PAS 2060 White Paper

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Table of Contents 1.0 Introduction ................................................................................................................................ 3

2.0 Carbon Neutrality or CarbonZero ............................................................................................... 3

3.0 Business Benefits ........................................................................................................................ 3

4.0 PAS 2060:2010 Process ............................................................................................................... 4

4.1 Measurement ......................................................................................................................... 5

4.2 Reduction ................................................................................................................................ 6

4.3 Offsetting ................................................................................................................................ 6

4.4 Documentation and Validation ............................................................................................... 6

5.0 Routes to becoming “CarbonZero” ............................................................................................. 8

The CarbonZero molecule logo is a registered trademark for co2balance and is available for use under licence from co2balance for recognised accredited programs.

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1.0 Introduction Organisations that assess their GHG (Green House Gas) emissions have been claiming over the years that they are “carbon neutral” by reducing their carbon impacts and offsetting the remainder through a variety of schemes such as renewable energy projects and forestation. Previously these claims have not been based on a recognised set of standards leading to an element of mistrust and scepticism as to how valid these claims are and how they can be substantiated. This has driven the need for the introduction of a British standard or Publicly Available Specification (PAS 2060), to produce a common definition and a recognised method of validation. PAS 2060 builds on existing environmental standards such as the ISO 14,000 series and PAS 2050 - The assessment of the life cycle greenhouse gas emissions of goods and services. This specification can be applicable to activities, products, services, buildings, projects, towns, cities and even events. This specification aims to restore integrity to the concept by establishing requirements for demonstrating carbon neutrality.

2.0 Carbon Neutrality or CarbonZero A condition in which there is no net increase in the global emission of greenhouse gases to the atmosphere as a result of greenhouse gas emissions associated with the subject. A CarbonZero condition exists where there is no net increase in the global emission of greenhouse gases to the atmosphere, as a result of greenhouse gas emissions associated with the subject. The specification recognises that entities are unlikely to achieve “carbon neutrality” through reduction measures alone and therefore carbon offsetting will have some role to play. However the PAS does not allow for declarations to be made solely on the basis of offsetting, other than during the first application period as a means of facilitating the process. Subsequently carbon reduction has to be proved in absolute or emissions intensity terms.

3.0 Business Benefits

The PAS 2060 provides numerous benefits as it allows companies to

Demonstrate environmental integrity

Provide a clear and credible message to instil customer trust in their environmental messages

Meet increasing customer demand for environmentally friendly products and services

Engage and motivate their staff and stakeholders to reduce costs through operational and behavioural changes

Differentiate their business from the competition to increase their revenue and market share.

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4.0 PAS 2060:2010 Process

Measurement

Assess GHG emissions based on accurate and complete raw data.

Set Target To Reduce Emissions

Implement a Carbon Management Plan by declaring the commitment to carbon neutrality by adopting several reduction strategies.

Offset

At the end of the reduction phase, GHG emissions will be offsett by high quality, certified carbon credits (Gold Standard, Clean Development Mechanism, Joint Implementation or Voluntary Carbon Standard)

Document and Validate

Standard-compliant declaration of achievement of neutrality, through a set of statements known as Qualifying Explanatory Statements (QES). There must be a public disclosure of all the documentation that supports the carbon neutrality claim.

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4.1 Measurement

The assessment should include 100% of Scope 1 and Scope 2 emissions all Scope 3 emissions that contribute more than 1% of the total footprint. Scopes are divided into the following.

Scope 1 – Direct Emissions (fuel combustion, company owned vehicles)

Scope 2 – Indirect Emissions (such as purchased electricity for own use)

Scope 3 – Indirect Emissions (outsourced operations, business travel in vehicles not owned by the company, embodied energy in products purchased, waste disposal)

Measure

• PAS 2050

• WBCSD/WRI Protocol

• ISO 14064-1

Reduce • EN 16001

Offset • ISO 14064-2

Declare

PAS 2060

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4.2 Reduction Entities must develop and implement a Carbon Footprint Management Plan in order to achieve accurate reductions in GHG emissions. There must be a process in place for undertaking periodic assessments of performance against the plan and for implementing corrective action to ensure targets are achieved. Entities should also have sufficient resources to achieve the Carbon Footprint Management Plan. The frequency of assessing performance against the plan should be commensurate with the timescale for achieving carbon neutrality. Successful implementation of the Carbon Management Plan should demonstrate emission reductions, either a reduction in the total amount of carbon emitted (in absolute terms) or a reduction in carbon intensity (in relative terms). In the case of the latter, GHG reductions must be greater than the economic growth rate for the region in which the entity operates.

4.3 Offsetting

The PAS 2060 requires that the total amount of carbon emissions at the end of a reduction period be offset by high-quality, certified carbon credits which meet the following criteria:

• From one of the PAS 2060 approved schemes (for example the Clean Development Mechanism, Joint Implementation, The Gold Standard or Voluntary Carbon Standard)

• Genuinely additional (i.e. reductions that would not have happened anyway) • Verified by an independent third party to ensure that emission reductions are

permanent, avoid leakage (so that emissions are not increased in another area as a result of the project reductions) and are not double counted.

• Retired after a maximum of 12 months to a credible registry

4.4 Documentation and Validation A declaration of commitment to carbon neutrality requires the entity to establish its carbon footprint and to come up with a Carbon Footprint Management Plan describing how it intends to achieve carbon neutrality. Declarations of commitment however will only be valid for a maximum period of one year after which the commitment and plan will need to be reviewed and renewed accordingly. Two Forms of Declaration are required

• The declaration of commitment to carbon neutrality which establishes the carbon footprint of the subject and documents a Carbon Footprint Management Plan detailing how carbon neutrality will be achieved.

• The declaration of achievement of carbon neutrality showing a reduction in the carbon footprint of the subject and the offset of the remaining GHG emissions.

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Achieving carbon neutrality solely though offsetting is not endorsed. Where the entity plans to maintain carbon neutrality, they will need to update their Carbon Footprint Management Plan at least every 12 months. The standard also requires an offset strategy to be adopted before the offset is purchased, outlining the estimated quantity, nature, type of offsets to be used. The standard stipulates three types of validation of the achievement of neutrality: self validation, other party validation and third party independent validation. Self-validation is basically the case of an entity validating its own carbon footprint and reduction achievements. Entities must confirm and be able to demonstrate that the quantification and actions undertaken to achieve carbon neutrality have been in accordance with the PAS 2060. The appropriate method for self validation and for presentation of the results shall be through the application of BS EN ISO 14064-1. Other party validation ensures that the methodology and data has been audited and verified, and is recommended for organisations who wish to market their carbon neutral status. This approach is superior to self-validation as it protects the organisation from criticism of a lack of robustness, and will strengthen confidence in the carbon neutrality claim as a result. Third party independent validation can only be provided by certification agencies and is an option that will evolve as organisations gain registration with UKAS (The United Kingdom Accreditation Service) - the sole national accreditation body recognised by government to assess, against internationally agreed standards, organisations that provide certification, testing, inspection and calibration services.

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5.0 Routes to becoming “CarbonZero” Route 1 This option involves setting a baseline date and determining the footprint of the defined subject over the first application period. Once this is complete and the footprint determined, the entity can commit to reduction and implement a Carbon Footprint Management Plan. The plan may involve a parallel programme of ongoing reductions and offsetting with reconciliation occurring at the end of the second application period to ascertain whether carbon neutrality has been achieved. Alternatively, the plan may focus solely on achieving reductions throughout the second application period at the end of which the residual footprint is determined and sufficient offsets obtained.

Route 2 This second options enables entities to take into consideration GHG emission reductions associated with the defined subject prior to the baseline date to enable declarations of neutrality. A Declaration of Achievement of carbon neutrality can therefore be made at the end of the first application period and can be based on reductions achieve during the first application period and the three years prior to the baseline date.

Define baseline

Measure Footprint

1st Application

Period

Carbon Declaration

Carbon Management Plan

Implement Plan Reduce Emissions

2nd Applicaation

Period

Carbon Declarataion

Update Carbon Management Plan

Implement Plan Reduce Emissions

3rd Application

Period

Previous Reduction - up to 3 years

Historical Reduction

Define Baseline

Recognise Historic Reduction

Offset Residual Emissions

Declaration of Achievement

1st Application

Period

Implement Carbon Management Plan

Reduce Emissions

Requantify Footprint

Offset Residual Emissions

2nd Application

Period

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Route 3 This route enables entities to use offsetting to account for all of the GHG emissions associated with the defined subject at the end of the first application period. Entities are therefore able to make a Declaration of Achievement of carbon neutrality at the end of the first application period based solely on offsetting.

co2balance and PAS 2060 co2balance UK Ltd is a leading carbon management provider offering carbon calculation, management and reduction services together with an ethical way to offset greenhouse gas emissions. This is achieved through energy efficiency and renewable energy projects across standards including Gold Standard and the Verified Carbon Standard. co2balance UK Ltd is a founder member of ICROA, the trade alliance which provides leadership and a unified voice advocating rigorous industry standards in the voluntary carbon management sector. As one of the world’s leading carbon management and offset providers we have extensive experience in dealing with a whole range of carbon management solutions from large scale businesses through to individual clients We can provide a full advisory service for PAS 2060. We can assist with any aspect of achieving PAS 2060 CarbonZero status, from a footprint assessment to developing a reduction plan and sourcing offset credits that meet the requirements of PAS 2060 to support your company’s objectives. We will work with your organisation to ensure that achieving CarbonZero status is cost-effective and strengthens your business proposition. For more information on how to achieve the standard, contact our team on 0845 094 2620.

Define baseline

Declaration of achievement

based on 100% offset

1st Application

Period

Implement Carbon Management Plan

Reduce Emissions

Declaration of Commitment and

Achievement

Requantify Footprint and Offset

2nd Application

Period

Update Carbon Manangement Plan

Reduce Emissions

Declaration of Commitment and

Achievement

Requantify Footprint and Offset

3rd Application

Period