CEMARS and the carboNZero programme

1. CEMARS and the carboNZero programme Ann Smith – Acting Chief Executive 22 August 2012

2. Who we are? • A wholly owned subsidiary of LandcareResearch, a Crown Research Institute owned by the New Zealand government • Board • Independent Advisory Panel • A GHG certification body accredited by the Joint Accreditation System of Australia and New Zealand (JAS-ANZ)

3. Our numbers 2 offices: Lincoln and Auckland 5 countries 17 staff 200+ clients 775+ certifications 265,000+ tCO2e offsets 1.86m+ tCO2e reductions 74.5m+ tCO2e verified footprint

4. Our credentials Our credentials • ISO 14065:2007 accredited by the Joint Accreditation System of Australia and New Zealand (JAS-ANZ) to verify/certify against • ISO 14064-1:2006 (organisation) • PAS 2050:2008 (product) • Assessed by the UK Environment Agency and licensed under the UK Climate Change Act 2008 as meeting and exceeding the Carbon Trust Standard for the Carbon ReducEQUItion Commitment (CRC) and Energy Efficiency Scheme • Accredited by the Carbon Disclosure Project as a verification standard suitable for organisations reporting into the CDP

5. What we do? • Certify organisations, products, services, events • Two certification brands • CEMARS (Certified Emissions Measurement And Reduction Scheme) • carboNZero programme • Provide rules, tools and guidance • Undertake the third party audits • Programme requirements are influenced by and aligned with international standards and sector best practice

6. What is it all about? • Climate change is the issue • GHG emissions is the problem • Price on carbon to encourage emissions reduction is the solution • Carbon trading is the mechanism • 1 tonne of CO2e is the currency • Measurement and verification is essential Six greenhouse gases are measured and converted to carbon dioxide equivalents (CO2e) by multiplying by Global Warming Potentials from the Assessment Reports of the Intergovernmental Panel on Climate Change (IPPC)

7. What are companies doing? • Setting corporate climate change policies • Measuring and reporting their corporate greenhouse gas emissions • Setting emissions reduction targets • Offsetting their emissions • Influencing others to measure, report and reduce • Participating in compliance schemes • Participating in voluntary schemes • Preparing climate change adaptation plans

8. What is driving companies to take action? • Regulators • Compliance reporting/trading • Fair trading • Shareholders • Annual reporting • Some stock exchanges require risk disclosure including carbon emissions • Institutional investors • Global Reporting Initiative (GRI) • Carbon Disclosure Project (CDP) • Ethical investment • Dow Jones Sustainability Index • FTSE4Good • Insurance and banking • UNEP Finance Initiative (UNEP FI) • The Geneva Reports • Equator Principles • Carbon Disclosure Project • 655 institutional investors worth US$78 trillion • Over 3,000 listed companies report from over 60 countries • Insurance Associations with climate change focus • Association of British Insurers • Malaysia Insurance Institute • National Association of Insurance Commissioners (USA) • National Association of Mutual Insurance Companies (USA) • United Nations Environment Programme’s Finance Initiative

9. Consumer law and advertising standards • Accurate and not misleading • Substantiated and verified • Relevant to the company, product or service • Used in the appropriate context or setting • Footprint based on full life cycle • Footprint based on international standards • Offsets must be additional • Ensure claims are certified • Ensure certifier is accredited Fair Trading Act 1986 Guidelines for Carbon Claims July 2009

10. What is involved? What is involved? • Measure footprint • An emissions inventory report • Product carbon footprint report • Reduce emissions • An emissions management plan • Offset the emissions that can’t be reduced • Cancel carbon credits equivalent to your remaining emissions

11. What is a footprint? What is a footprint? • Organisation • An account of the operational GHG emissions owned and controlled by the organisation with defined boundary and scope • Scope 1 • Scope 2 • Scope 3 • Product • An account of the GHG emissions associated with the life cycle of the product • Upstream • Core process • Downstream

12. Six greenhouse gases

13. Three scopes Scope 1emissions Fuel (petrol, diesel), coal, gas, process emissions from sources owned or controlled by company, e.g. boilers, vehicle fleet Scope 2emissions Purchased electricity, heat and steam Scope 3emissions Contractors, business travel (air travel, trains, coaches, taxis, rental cars), couriers, freight, waste to landfill

14. Organisationvsproduct boundary and scope

15. What we do? • Certify footprints in accordance with ISO 14064-1 (organisation), PAS 2050 (product) and the Programme rules for management and reduction • We provide the rules, tools, templates and guidance for clients to prepare for audit • Audits are undertaken by internal and contracted auditors – we train and assess auditors • We undertake the independent reviews and issue certificates • We issue and control the use of the CEMARS and carboNZero certification marks • Support clients through marketing and implementation of management plan

16. What our clients do? • Register on the programme • Access rules, templates and guidance via password protected page • Access E-Manage on-line inventory management tool with approved emissions factors • Prepare for audit: • Emissions inventory report • Emissions management and reduction plan • Disclosure statement • Undergo audit and address any issues that arise • Receive certificate and access to the certification marks or logo • Implement the emissions management programme

17. International standards International standards

18. How we relate to standards and reporting schemes?

19. Why certification? • Provides a level playing field by interpreting the standards in a consistent manner • This is critical for sectors, supply chains and suppliers responding to government and other corporate procurement requirements • Enhances credibility by providing internationally recognised assurance over carbon claims • This is critical for exporters and supply chains • Provides the additional rules needed for certified companies to be able to use a mark or logo • This enhances access to markets

20. What makes us successful? • Standards and science based • Accreditation by JAS-ANZ– internationally recognised • Integration of compliance requirements with voluntary standards thus reducing duplication of effort for clients • Recognition by the UK regulator • Provision of rules, tools, templates, guidance • Rigorous peer review of resources provided • Rigorous independent review of results of verification • Marketing the achievements of clients and the value of certification • Working with partners • Willingness to collaborate with our accreditation body to develop policies and procedures for the emerging greenhouse gas standards

21. What is reported?

22. What is required for the offset or carbon credit?