ISO 14065:2020 is an international standard that establishes requirements for the validation or verification of environmental information. Beyond GHG (greenhouse gas) statements, ISO 14065 now encompasses additional environmental topics such as the issuance of green bonds, origination of green loans, and climate actions by financiers.
The credibility of environmental data significantly improves when accredited validation or verification bodies meet the rigorous requirements set forth in ISO 14065. So, when working with a validation and verification body, make sure they meet the new requirements correctly.
The updated ISO 14065:2020 is also expected to be referenced in standards and programs concerning other environmental aspects, like water footprints and environmental labelling.
What does this mean for organisations?
The updated ISO 14065:2020 standard introduces significant implications for organisations, especially those involved in environmental management and sustainability reporting.
Overall, ISO 14065:2020 helps organisations enhance the integrity and effectiveness of their environmental reporting and compliance, providing a robust basis for their sustainability initiatives and contributing to their long-term environmental and business goals.
Enhanced credibility: ISO 14065:2020 establishes rigorous requirements for validation and verification bodies (V/VBs) that assess environmental information, including greenhouse gas (GHG) emissions statements.
For organisations, using V/VBs that comply with this standard can significantly enhance the credibility and reliability of their environmental reporting. This is particularly relevant in sectors where accurate environmental information is critical, such as in emissions trading or sustainability reporting.
Improved compliance and market confidence: Organisations that align with V/VBs accredited under ISO 14065:2020 can ensure their environmental data meets international standards, aiding compliance with regulatory requirements and increasing confidence among stakeholders, including investors, customers, and regulatory bodies. And facilitates communication without accusation of greenwashing.
Facilitation of international trade and green finance: For organisations involved in international markets or seeking financing through green bonds or green loans, ISO 14065:2020 provides a framework that supports the validity and acceptance of their environmental claims.
This can facilitate smoother trade relations and access to international green finance opportunities, as stakeholders can rely on the standardized, verified reporting of environmental impacts and initiatives.
Risk management: The standard helps organisations manage environmental risks more effectively. By adhering to ISO 14065:2020 through their engagements with accredited V/VBs, organisations can be more confident in the data they present and use this information to inform strategic decisions, enhance sustainability practices, and mitigate potential environmental liabilities.
Strategic decision-making and policy development: With ISO 14065:2020, organisations can use validated and verified data to shape their environmental strategies and policies. This data-driven approach ensures that their environmental initiatives are not only compliant with global standards, but are also effective in achieving their sustainability goals.
Broadening scope of environmental information: The standard acknowledges the expanding scope of environmental reporting beyond traditional GHG emissions to include other significant areas like water footprints and climate actions by financiers. This broadened scope requires organisations to consider additional environmental parameters in their sustainability practices, offering a more comprehensive approach to environmental stewardship.
Read the official IAF Mandatory Document for the Application of ISO 14065:2020
Importance of verification and validation
Accredited validation or verification bodies (V/VBs) play a crucial role in environmental reporting, such as in greenhouse gas disclosure and trading schemes. The precision of reported environmental data, like CO2-equivalent emissions or removals, is highly valued by users of this information.
Examples of usage include organisational GHG emissions reporting for regulatory or public communication purposes, and in commodity trading where GHG offset credits are transacted.
Verification is a critical process where a verification body evaluates an organisation’s, product’s, or project’s GHG statement against specific verification criteria, primarily dealing with historical data and information. For standards such as ISO 14064-1, ISO 14067, and ISO 14064-2, this assessment checks for conformity with the set criteria and ensures that the GHG statements are both accurate and reliable. The verification activities are structured around clearly defined objectives, scope, level of assurance, materiality, and criteria.
On the other hand, validation is a process where a validation body examines a project’s GHG project plan against set validation criteria, focusing on the assessment of potential future outcomes. Since the release of ISO 14064-3:2019, validation is acknowledged as a suitable technique for evaluating forecasted or projected information, which might include anticipated GHG emission reductions at both organisational and project levels.
Context: What is The International Accreditation Forum?
The updates originate from The International Accreditation Forum (IAF). The IAF serves as a global network of accreditation organisations, committed to facilitating international trade by establishing universal principles for conformity assessments. These assessments are crucial as they bolster market confidence by ensuring that products, services, and systems meet specific international standards.
IAF's role extends to accrediting entities that certify management systems, products, processes, services, and personnel, along with those that conduct validation and verification. By promoting the worldwide acceptance of these accredited certificates and statements, IAF adds value to all stakeholders, streamlining global trade processes.
