As both the number of companies reporting corporate greenhouse gas emissions and the diversity of organizations & applications using these results increase, the need for independent verification of the data and systems underlying GHG assessments becomes substantially more important.
The primary objective for most companies engaging a third-party verifier is to convey a higher degree of confidence in reported results and forecasts. Following successful verification, users of emissions data at every level – the general public, clients, senior management, stakeholders and investors – are provided with an independent statement of assurance that increases the credibility of the inventory and decreases the risks associated with material misstatements. Similarly, assessments verified against the same standards using the same criteria allow for a fair comparison of corporate emissions, targets and progress.
In 2014, over 760 investors representing approximately USD 92 trillion in assets formally backed the CDP’s climate change initiative. These signatories use the climate change data annually submitted to the CDP to assess risks and opportunities arising from environmental externalities and inform sustainable investment decisions. Clearly, ensuring the completeness, accuracy and transparency of reported data is paramount to the objectives of both the CDP and the investors; independent verification provides the mechanism to credibly achieve this. This paper provides a clear, concise summary of the upcoming changes to CDP verification requirements and scoring in 2015.