Verification Dictionary

This section contains terms and definitions commonly used in relation to greenhouse gas emissions verification. Please note that programs or regulations may have their own definitions.

A | B | C | D | E | F | G | H | I | J | K | L | M | N | O | P | Q | R | S | T | U | V | W | X | Y | Z | Top

A

Accreditation

A voluntary process by which an organization meets the standards established by an accrediting body. With respect to greenhouse gas verification, accreditation conveys that a verification body has demonstrated it has the required processes and systems in place to comply with the requirements of ISO 14065 and is qualified to carry out verification activities in accordance with a given greenhouse gas program.

Assurance

An expression of confidence that occurs in the context of an accountability relationship between two independent parties.

B

C

Conclusion

A determination made by the verification body based on the facts and evidence collected during the course of the verification. The conclusion(s) are formed at the end of the verification activities and form the basis for the verification opinion on the greenhouse gas assertion.

Conflict of Interest

A situation in which, because of other activities or relationships with a potential client, a verifier or verification body's objectivity in performing verification activities is, or might be, compromised. This results in an inability to render an impartial conclusion on the greenhouse gas assertion.

Control Risk

The risk that the organization's or project's control procedures and information/data management system will not detect or rectify an error or discrepancy.

D

Detection Risk

The risk that the verification body will not identify an error, omission or misrepresentation.

E

Evidence

The information contained in the organization's or project's records underlying the greenhouse gas assertion. Evidence can be obtained from a combination of tests or analytical procedures including inspection, observation, interviews, external conformation procedures (e.g. laboratory test results), computation, or other quantitative analysis.

F

G

Greenhouse Gas Assertion

Declarations or factual statements made in relation to greenhouse gas emissions. Greenhouse gas assertions can include annual greenhouse gas emissions reports, emission reduction claims for offset credits, voluntary carbon disclosures, carbon netural claims.

H

I

Independence

The ability to maintain objectivity throughout the verification to ensure that the findings and conclusions will be based only on objective evidence examined during the verification process, and not biased by employment, financial benefits, personal relationships, professional relationships, or other interests.

Information / Data Management System

A framework, consisting of policies, processes and procedures for the collection, processing, control and management of data and information to ensure accuracy, transparency and reliability of the greenhouse gas assertion.

Inherent Risk

The risk of an error due to the complexity of the project or inventory, or the lack of capacity on the part of the responsible party to manage or quantify the greenhouse gas emissions.

Intended User

The individual or organization to whom the responsible party reports information and who relies on that information to make decisions. This may be one of more of the following: the program authority, the general public, shareholders, other stakeholders; and purchasers of any generated credits.

Internal (Peer) Reviewer

While a single individual may fulfill all the knowledge and skill requirements for a verification team, ISO 14065 requires that someone not directly involved with the verification activities confirms that all verification activities have been completed. The internal (peer) reviewer is also responsible for evaluating the verification processes and outcomes and reviewing the conclusion formed by the verification team.

ISO Standards

The International Organization for Standardization (ISO) consists of a worldwide federation of member bodies such as the Standards Council of Canada. ISO appoints technical committees, comprised of subject matter experts to draft standards. 75% of the voting member bodies must approve the draft standard for it to become a recognized standard.

ISO 14064-1

Refers to a document titled: ISO 14064-1 (2006) Specification with guidance at the organizational level for quantification and reporting of greenhouse gas emissions and removals. This standard provides guidance for quantification and preparation of greenhouse gas emissions inventories for organizations.

ISO 14064-2

Refers to a document titled: ISO 14064-2 (2006) Specification with guidance at the project level for quantification, monitoring and reporting of greenhouse gas reductions or removal enhancements. This standard provides guidance for quantification, monitoring and reporting of greenhouse gas data and information for projects.

ISO 14064-3

Refers to a document titled: ISO 14064-3 (2006) Specification with guidance for the validation and verification of greenhouse gas assertions. This standard provides guidance for "how" to conduct a validation or verification.

ISO 14065

Refers to a document titled:ISO 14065 (2007) Requirements for greenhouse gas validation and verification bodies to be used for accreditation or other forms of recognition. This standard provides requirements on "who" can conduct validations and verifications.

J

K

L

Level of Assurance

The degree of confidence required by the intended user in the verification statement. The level of assurance dictates the nature of the verification statement and the level of effort required by the verification body to determine if there are any material errors, omissions or misrepresentations in the greenhouse gas assertion. In general, there are two levels of assurance - reasonable and limited. Absolute assurance is not possible.

Limited Level of Assurance

Limited assurance refers to a moderate or medium level of assurance that the evidence obtained during the conduct of the verification supports the greenhouse gas assertion. The verification body will provide an opinion as to whether or not anything has come to their attention that would cause them to conclude that the greenhouse gas assertion is not free from material discrepancies. Verifications conducted to a limited level of assurance generallyinvolve fewer verification activities, such as inquiry, analytical procedures and discussion, and only reduce the risk of an inappropriate conclusion to a moderate level. A limited level of assurance provides a moderate or medium level of assurance and is also know as 'low', 'negative', or 'neutral' assurance.

M

Material Discrepancy

A material discrepancy in a greenhouse gas assertion refers to a discrepancy that exceeds the materiality threshold specified in the program rules, or in the professional judgment of the verification body, is likely to influence the decision of the intended user. A material discrepancy may be due to an individual discrepancy or the aggregate of several discrepancies and can be either qualitative or quantitative.

Materiality

The concept that individual or the aggregation of errors, omissions and misrepresentations could affect the greenhouse gas assertion and could influence the intended users' decisions. Specifically, materiality is used to confirm that the assertion about greenhouse gas emissions or removals is true and accurate within a specified degree of certainty (e.g. 5%) and is adequately supported by documentation and records. Judgments about materiality are made in light of surrounding circumstances and are affected by the size and / or nature of a misstatement.

Materiality Threshold

Used to guide the verification body's judgment on materiality in order to promote consistency within programs. May be expressed as an absolute value (e.g. 5,000 t CO₂ eq), a relative value (e.g. 2% of reductions claimed) or a hybrid of both (e.g. 5,000 t CO₂ eq or 2% of reductions claimed, whichever is less).

N

O

P

Project

A specific activity designed to reduce greenhouse gas impacts by either reducing greenhouse gas emissions and/or enhancing greenhouse gas removals.

Q

R

Reasonable Level of Assurance

Reasonable assurance refers to the verification body's degree of satisfaction that the evidence obtained during the conduct of the verification supports the greenhouse gas assertion and allows the verification body to conclude that the greenhouse gas assertion is free from material discrepancies. The types of verification activities that are conducted to obtain evidence during a reasonable assurance engagement so that the risk of an inappropriate conclusion is reduced to a low level include inspection, observation, inquiry, confirmation, computation, and analytical procedures. The verification body will also seek corroborating evidence from difference sources when forming the conclusion on the greenhouse gas assertion. A reasonable level of assurance provides a high level of assurance and is also know as 'high' or 'positive' assurance.

Responsible Party

Person or persons responsible for the greenhouse gas assertion and the supporting greenhouse gas information. This could include for example, the owner or operator of a facility, or a project proponent.

S

Sampling Plan

The sampling plan is a key component of the verification plan. It sets out the specific evidence that needs to be gathered and tested by the verification body during a site visit. The sampling plan will identify the number and type of records or evidence to be examined; the methodology that the verification body used to determine a representative sample; and the justification for the use of the methodology. Emission sources, data systems, and controls identified during the risk assessment as having an elevated risk for potential errors, omissions or misrepresentation are prioritized.

T

U

Uncertainty

The lack of certainty in emissions-related data resulting from the application of non-representative factors, incomplete data, lack of transparency, etc.

V

Validation

Process of systematic assessment to form an opinion on whether statements about future performance or project eligibility are reasonable. It is focused on assumptions, methodologies, justifications, plans and procedures.

Validation Body

Firm, company or organization that performs validation of greenhouse gas assertions. Only validation bodies can become accredited to ISO 14065 however, validation bodies may be an individual.

Verification

Process of systematic assessment to form an opinion on whether a statement about actual circumstances or past performance is true and correct. Only statements about actual performance, events or circumstances can be verified.

Verification Body

Firm, company or organization that performs verifications of greenhouse gas assertions. Only verification bodies can become accredited to ISO 14065 however, verification bodies may be an individual.

Verification Criteria

The policies, procedures or requirements used as a reference against which evidence is compared.

Verification Engagement

The employment of a verification body for the verification of an organization or project’s past greenhouse gas performance or reported greenhouse assertions. The commitment to undertake verification activities is administered through a commissioned, legally binding agreement between a client and a verification body.

Verification Plan

The verification plan will direct the verification approach and outlines the resources required to undertake the verification. The verification plan includes the sampling plan and is developed based on the results of the risk assessment, taking into consideration the size and complexity of the verification as well as the verification body’s experience and knowledge of the project or organization.

Verification Risk

The likelihood that the verification body will deliver an incorrect opinion. A result of the inherent risk, control risk, and/or detection risk associated with the verification. This is also known as 'audit risk'.

Verification Statement

The verification statement is produced for the intended user (e.g. stakeholders, regulator, client) by the verification body at the end of the verification engagement. The verification statement provides assurance on the statements in the greenhouse gas assertion through a conclusion and includes any qualifications or limitations.

Verification Team

One or more verifiers conducting a verification, supported if needed by technical experts. The verification team will appoint one verifier as the verification team leader. In the case that the team consists of one person, this person is expected to possess all the necessary competencies of the team.

Verifier

An individual who conducts verification activities as part of a verification team.