In the context of global transformation to model green development sustainable, with trend-setting mechanisms credits carbon policies on carbon neutral is increasingly clear. Among the standards are widely recognized, ISO 14064 is the frame a comprehensive guide to help businesses just evaluate the level of emissions newly created platform to participate in the carbon market in a transparent way reliable.
So, ISO 14064, what is? including the part? Deploy and bring practical benefits what for business? This article Lac Viet Computing will provide information fully and clearly accessible to the unit is entering the switch green.
1. ISO 14064 is what? Why business need care?
1.1 Workflow Definition
ISO 14064 is a set of standard international Organization for standardization international (ISO) issued to guide the organization/business in the measurement, reporting and verification of greenhouse gas emissions (GHG) emissions in a transparent consistency. In simple words, this is the “common language” for businesses to calculate emissions, which I created from the production activities, the business – from it management, as well as cutting emissions efficiency.
This standard set doesn't just stop at the recorded data. More importantly, ISO 14064 help business build a transparent system to demonstrate to stakeholders that they are actively implementing environmental responsibility from measurement to action to reduce emissions realistic. This means in the context of the world are increasingly attach importance to sustainable development and green transformation.
1.2 ISO 14064 in the context switch green
Switch green no longer is the choice that trend has become mandatory for the business to maintain competitiveness in the long term. In it, credits carbon emerged as a financial instrument important: if the business reduce the amount of emissions they can generate “credits carbon” – the same as a valuable commodity, may sell or exchange on the market.
To do this, businesses need to demonstrate emissions were accurate measurement, reducing the true, verified by the Tuesday of independence. That is when ISO 14064 develop the role – as a standard platform that helps businesses step into the market only carbon legally reliable.
1.3 why business should care now?
- Requests from international partners: more and more global corporations, especially in the manufacturing industry, retail, pharmaceutical, ... are requesting the supply chain information, emission, transparency and commitment reductions. If the business is no measurement system according to international standards such as ISO 14064 very easy to be removed from the large bids.
- Policy-compliant ESG prepare for specified future: ESG (environment, social, governance) is not only a set of indicators to report. It is gradually becoming the criteria to call capital, listing, approaches, financial incentives – ISO 14064 is an essential part in the structure ESG.
- Market participants credit only voluntary carbon: With ISO 14064, businesses can prove effective projects to reduce emissions (such as using renewable energy, improved technology), turn those efforts into financial benefits really. The voluntary carbon market is forecast can reach values of hundreds of billions of DOLLARS in the coming decade.
- Competitive advantage sustainability: measuring emissions not only is “homework” environment that is the way for businesses to understand the operation of intrinsic detect the point of energy consumption, optimal costs and operate more efficiently.
According to the report McKinsey in the year 2023, more than 90% of the multinational enterprise have set out specific requirements on emissions greenhouse for their suppliers. This suggests that: if the business has not started to measure emissions according to international standards, they are facing the risk of being left behind in the global value chain.
2. The main sections in ISO 14064
The ISO 14064 consists of 3 main parts, corresponding to each management target different pathways to reduce emissions, market participants credits carbon.
2.1. ISO 14064-1: to quantify and report greenhouse gas emissions of the business
The first part of the standard focuses on the measurement of the greenhouse gases arising from the production activities of business. The core of the ISO 14064-1 is to help businesses determined to be “realistic painting” on the emission level, from which goal setting plan to reduce emissions specific.
Business need to do?
- Determine the scope of the organization (i.e. those parts, factory production facilities, which is calculated on the measurement system).
- Determine the source emission privacy, including: emissions directly as gas CO₂ emitted from fuel-fired furnaces in the plant. Emissions indirectly as electricity consumption from the national grid.
- Data collection and reporting emissions by year.
Practical example: A shoe factory in Vietnam when applying ISO 14064-1 will conduct a survey of gasoline consumption, energy use, emissions from oven rubber... to calculate the emissions of CO₂, CH₄, N₂O, respectively. From there, they build report emissions greenhouse according to standard templates for service announced internally or sent to our international clients.
Enterprise value received:
- Have a system for reporting emissions transparency can verify that enhances your credibility in the eyes of investors/international partners.
- Detect the “hot” spots in the operating wasting energy from that optimize production costs.
- Create a platform to set emissions target of net 0 (Net Zero) in the long term.
2.2. ISO 14064-2: projects that reduce greenhouse gas emissions
The Monday of the standard guide to the activities, initiatives or projects that businesses implement to minimize the amount of greenhouse gases arise. ISO 14064-2 help businesses measure, prove that the solution enhancements they are applied really bring efficient in terms of emission.
Apply for the project?
- Improvement project device to save power, reduce fuel consumption.
- Project system installation, solar energy or energy use of biomass instead.
- The program behavior change energy consumers in business insider.
Obvious benefits that businesses get:
- If measured verification according to ISO 14064-2, efforts to reduce emissions can be converted into credits carbon – a property that can be sold on the voluntary carbon market.
- Increase accessibility of funds to support green or financial incentives from international institutions.
- Consolidation images business has the responsibility to create advantages when participating in tenders of international projects.
Illustrative example: A company in the field of logistics convert the entire delivery car from car use oil to electric vehicles, at the same time investment in solar power system at the warehouse. If these activities are measured according ISO 14064-2, they can fully register emission reductions do credits carbon.
2.3. ISO 14064-3: Verify appraisal report greenhouse gas
Not only the measurement report, the business wants to assert prestigious need to undergo verification by a party Tuesday independently – this is the main content of ISO 14064-3. This section sets out the principles, verification process to ensure authenticity, transparency and reliability of data on greenhouse gas that business publication.
Points to note:
- The verification should be done by the competent unit is recognized domestic or international.
- The verification process usually includes test input data, calculation methodology, literature and interviews commissioning groups.
Why is this step important?
- Only when there is independent verification, the report greenhouse gas or credits carbon valuable new use in the transaction, report, ESG, or meet the requirements of the partners.
- Help business control, internal quality, avoid errors, minimize legal risks in the environmental report.
Practical example: A textile business has announced emissions decreased by 15% in 2 years thanks to process improvement dyed fabric. To confirm this is accurate, they hire an organization independent verification to check the whole process, certification of materials according to ISO 14064-3.
Three parts of the ISO 14064 is three pillars help businesses not only measure the emission reduction effect, but also built trust with partners, market, financial institutions. If business is on the transition to green, this is a standard indispensable to ensure that all steps are internationally recognized from action to report and certification.
3. Practical benefits when businesses apply ISO 14064
The application of ISO 14064 not merely meet an international standard on the environment. Businesses are directed to model sustainable production, this is a strategic tool to bring clear benefits long-term, both in terms of operation and brand positioning.
- Enhance credibility, the ability to join the global supply chain
In the context of multinational corporations increasingly tightened requirements for sustainable development, the business can provide data emissions transparency according to ISO 14064 will be the entry ticket to join or maintain position in the global supply chain. With respect to the business of manufacturing – where greenhouse gas emissions are often higher – this as more important. A reliable report will help partners peace of mind that your business has the responsibility and capacity to control emission efficiency.
- Open street market participants credits carbon
One of the most practical benefits when applied ISO 14064 is business could transform efforts to reduce emissions of credits carbon. These credits can be sold or exchanged on the voluntary carbon market, generating additional revenues. In particular, in the sector have the potential to reduce emissions as large as energy, transport, construction or agricultural – having clear standards such as ISO 14064 help ensure transparency, the actual value of each credit is created.
- Optimize operation and reduce energy costs
In the process of applying ISO 14064, business required to reviewing the entire operating procedures to determine the source emission. This helps to detect the points, energy expenditure, or materials not required, thereby building innovative solutions specific. Benefits bring is to reduce operating costs, energy use more effectively reduce the pressure long-term finance.
- Policy-compliant ESG, increased attractiveness in the eyes of investors
Many investors today reviews business not only financial indicators but also based on the level of implementation of commitments on the environment, social, governance (ESG). The deployment of ISO 14064 is proved specific for the effort, risk management, environment and practice sustainable development. This contributes to increase in level of credibility in the round capital, tender or strategic partnership.
- Increase business opportunities access to the international market
According to a survey by PwC in the year 2023, the business development standard measure greenhouse gas soon have the ability to rise 12% chance of contracting with international partners, thanks to the ability to meet the requirements of transparency about emissions. This figure is meaningful in the context of the market, such as Europe, America, Japan, are adopting the mechanism of the carbon tax and control the environment more closely.
4. The basic steps to implementing ISO 14064 in business
The deployment of ISO 14064 not too complicated if the business has clear roadmap with tools appropriate support. Here are 5 basic steps to help business step by step building measurement systems to verify emissions to meet the international standards.
Step 1: assess the current state system, emission current
Before building a new system, businesses need to understand the real state of its emission. This includes checking the source of greenhouse gas as fuel consumption, electrical, commissioning manufacturing equipment... this helps the business identify those areas that are large emitters should be priority control.
Step 2: Define the scope, measurement, data collection, greenhouse gases
ISO 14064 your business needs clearly defined measurement range – that is, the parts, processes, or facilities which will be put into the system calculates emissions. After that, businesses need to collect real data such as the amount of fuel use, electricity bill, record operating machinery... to do the calculation basis.
Step 3: Apply standard ISO 14064-1 or 14064-2 corresponding to the target
- If the business wants to measure the total current emissions shall be applied to ISO 14064-1.
- If the business is implementing projects to reduce emissions (such as improved technology, energy conversion) shall apply ISO 14064-2 to demonstrate the effectiveness of the project.
In this step, the business can coordinate with consultants or use software to manage emissions to ensure accuracy easy to update.
Step 4: Proceed with verification according to ISO 14064-3 with unit credits
To the reported emissions or result of reducing emissions valuable use (in the report, ESG, bid, apply for financial aid or register credits carbon), need to be verified by the Tuesday independently according to ISO 14064-3. This step is to ensure transparency, reliability of the entire system.
Step 5: register credits carbon (if eligible)
After the measurement data, trusted verified businesses can do registration record credits carbon if any emission-reduction project is eligible. This helps businesses not only regulatory compliance but also to create sources of economic benefit long-term from the switch green.
Suggestion tool support: Currently, many software specialized business support, data management, emissions, automated reports according to standard ISO 14064, integrated forms of verification. Choosing the right tools that will help shorten the deployment time, reduce costs and limit errors when collecting data.
5. The criteria for businesses to keep in mind to achieve the certification of ISO 14064
Here are the important criteria that any organization should also pay attention when implementing ISO 14064 if you want to be judged official recognition:
5.1. Ensure transparency in measurement data
Data on greenhouse gas emissions (GHG) should be collected, calculated and presented in a clear way, can test for screening. Business should be not only data, but also to demonstrate the methods of measurement, calculation formula with the original data source. To increase the reliability with stakeholders such as partners, investors or unit inspection.
Illustrative example: If a factory declaration has reduced power consumption by 15% thanks to optimized lighting system, you need to record, store utility bills before and after the improvement, the description of the measurement methods to prove the authenticity of the data.
5.2. Compliance with periodic reporting emissions
ISO 14064 requires businesses to maintain the measurement, reporting emissions cyclical clear – usually every year. This is not only to meet standards, but also helps enterprises track is the trend in emissions, the timely detection of irregularities to improve constantly the system of production.
Actual note: failure to maintain the calendar report regularly can cause the business to lose the opportunity to participate in the program support credits carbon or lose trust from global partners in the supply chain.
5.3. Have the system of internal control, storage clear demonstration
An important part of achieving certification of ISO 14064 is the business to build the system of internal control to ensure accuracy, consistency, completeness of data emissions. This includes the process of cross-checking of data storage, related documents and assign clear responsibilities for each department.
Control system effective internal will help minimize the risk of errors in reporting, at the same time the firm to the ready for step independent verification.
5.4. Ready to audit, verify from the Tuesday
Being an independent organization to verify the ISO 14064-3 not only is the mandatory step to be recognized that there is clear evidence that the business is serious action with the goal of reducing emissions. Businesses need to prepare full profile, streamline operational processes transparent to the inspection process goes smoothly.
6. Hints documentation – support tool implementing ISO 14064
The deployment of ISO 14064 will be a lot easier if the business is equipped with the right tools, materials and support from the reliable source. Here are some practical hints that entrepreneurs can start today:
- The sample material collected data greenhouse gas emissions (GHG): This is the form to help businesses easy entry of input data such as the amount of fuel used, the power consumption information, operating equipment... this document usually consists of the guidance section calculation, how to convert metric to emissions of CO₂ equivalent. To help standardize the measurement process, save processing time, avoid errors in calculations.
- System management software emissions complies with international standards: specialized software has the ability to integrate data from multiple sources, automatically calculate emissions, and report according to the format of ISO 14064. Many systems now also supports storing data in the cloud, integrated test function internally. Save manpower, reduce risks in data processing craft easily scale to manage emissions when business development.
- Contact the consultants and inspection reputation in and abroad: To deploy the right efficiency, enterprises should cooperate with the consultant have experience in the field of metrology verification of greenhouse gas. These organizations can help to assess the current status, system design, fit, prepare full profile to gain the certification quickly. Note select units have certificates capacity international experience in the industry in accordance with the field of activity of the enterprise.
- Updated information from international organizations such as IPCC, UNFCCC, VNEEP...: The regular updates of instructions, data, emission latest conversion factor or relevant policies from the international organization will help the business ensure that the system is always in accordance with global standards.
Implementing ISO 14064 not only is the walk to comply with environmental standards, which is long-term strategy to help businesses proactively control of emissions, improve operational efficiency and insists the responsibility with community and global partners. To start, let's find out properly prepared and take advantage of the support from professionals or appropriate tools. If your business is looking for specific direction to deploy ISO 14064, don't hesitate to contact 1:1 inquiry from our team of experts in the field of green transformation of Vietnam.
