Tag Archives: Climate Active / NCOS

FAQs for becoming certified under Climate Active – Part 3 [with video]

This article follows on from part 1 and part 2 of this series, in which we discussed general questions about carbon neutrality, scopes, the Climate Active Program and typical emissions sources in a Climate Active carbon footprint. In this blog post, we’ll address how to get certified carbon neutral under Climate Active and how much it costs to get certified under the Climate Active program.

How do I become certified under Climate Active?

To become certified carbon neutral under Climate Active, there are four basic steps.

  1. Determine your carbon footprint boundary
  2. Calculate your carbon footprint
  3. Get your carbon footprint verified
  4. Purchase carbon offsets and submit all documentation to the Commonwealth Government

What responsibilities do you have under Climate Active?

The following list shows your responsibilities under the Climate Active program. Please note that a registered consultant can help you with engaging a verifier, collecting all necessary data, completing your report and guiding you through the offset purchase process.

  • Sign Licence Agreement
  • Pay annual fee
  • Engage auditor/verifier
  • Complete report or provide all data to a Registered Consultant (please note that 100% Renewables is a Registered Consultant)
  • Purchase offsets
  • Sign the Public Disclosure Statement and submit the report
  • Submit web profile
  • Use the Climate Active trademark correctly

How much does it cost to become certified under Climate Active?

There are four fee components for getting certified under Climate Active

  • Engage a registered consultant to help you with the carbon inventory boundary and carbon footprint calculation
  • Engage a third-party validation provider to verify the work done by the registered consultant
  • Buy carbon offsets to achieve carbon neutrality
  • Pay Climate Active membership fees

NOTE:
Please contact us for an estimate of how much you will likely need to pay for these four fee components. We can provide you with a 1-page report.

Let’s have a look at these fees in detail.

How much do I have to pay a registered consultant?

We are a registered consultant under the Climate Active program. Our fees depend on the size and complexity of your organisation, on how much of the work you would like to do yourself, as well as on the emission sources that are included. It’s best to contact us for a quote. We will give you a fixed fee quote once we understand your circumstances a bit better.

How much do I have to pay a verifier?

Just like with registered consultant fees, verification costs also increase with the complexity and size of your organisation. It is likely that verification providers will charge a higher fee if you choose not to engage a registered consultant.

What is the difference between a registered consultant and a verifier?

A ‘registered consultant’ can be engaged to develop your carbon inventory boundary, carbon footprint and emission reduction strategy. They would liaise with you, your verifier and the Commonwealth. It is not mandatory, and you could do this step yourself, but it is highly recommended that you do engage a registered consultant as they have the skilled resources who have done the training and are experienced in this work.

A verifier is an independent third party who must be engaged to validate the carbon boundary and footprint. Your registered consultant cannot be the same person or business as the verifier so that there is no conflict of interest.

Could we do any of this work ourselves?

You can develop your own carbon footprint in accordance with the Climate Active rules if you have the in-house resources. In any case, you will need to engage a verifier. You might find that a verifier’s fees are then a little higher, as they may have to do more detailed checking than they would otherwise have to do.

How much do I have to pay for carbon offsets?

There is a wide range of costs, depending on the actual offset project, its location, accreditation standard and co-benefits, as well as the volume you are purchasing. The range can be from $1.50 to $28 per carbon offset.

It is usually helpful to run a workshop with your key stakeholders to work out your preferences and what is feasible given your emissions and budget.

How much are Climate Active membership fees?

Climate Active licence fees depend entirely on the size of your current footprint. There are four brackets which range from under 2,000 tonnes of carbon emissions to over 80,000 tonnes. You will pay between $820 to $2,627 inc GST for the lowest bracket, a fee which will be charged annually. If your footprint is greater than 80,000 tonnes, you will need to pay $18,911 inc GST annually. These fees increase by 2.5% every year.

Do I have to pay all these fees every year?

No. You will have to pay yearly Climate Active membership and carbon offset fees to continue to be a carbon-neutral company. And you do need to calculate your carbon footprint annually as well, but this would be much less than the first time, and you should make sure that all the data collection and calculation processes are documented so that you can do the work in-house, or mainly in-house.

You will only need to pay the validation provider once every three years.

Does the size of my company matter?

Yes, absolutely. Because of the rigour and multi-step process that is involved with getting certified under Climate Active, there is a certain amount of cost involved with becoming carbon neutral under Climate Active.

To give you an example, the smallest bracket under Climate Active is between 0 and 2,000 tonnes of yearly emissions for organisations. 2,000 tonnes of carbon emissions roughly equal the electricity consumption of 300 homes or the fuel consumption of 600 cars.

Say your organisation emitted 100 tonnes of carbon emissions yearly. Climate Active fees would be $820 inc GST, while registered consultant and verification costs can vary between $500 and $10,000 each, depending on who you engage. Carbon offset costs will range from $1,200 to $2,800, depending on the exact carbon credits you would like to purchase.

Do I have to calculate my carbon footprint every year?

Yes, you will have to calculate your carbon footprint every year. Your organisation might have changed, or your carbon footprint boundary, or the way you collect your data. Your business activity may also have changed, resulting in a higher or lower carbon footprint. You may have outsourced activities that were previously insourced. The carbon intensity of the grid may also have changed, resulting in potentially lower emissions.

It is essential to calculate your carbon footprint every year so you can see the effect of those changes. It will allow you to celebrate any success you’ve had with emissions reductions or getting closer to your goal. Alternatively, it will be a good opportunity to put a particular focus on emissions that might have increased over time or that you want to target with your next emission reductions projects.

We recommend using a consultant such as 100% Renewables to help with the yearly calculation, but if you have the skills set and availability inhouse, you can undertake this activity yourself.

If you are going through Climate Active certification for the first time, the whole process can seem a bit confusing. Engaging a registered consultant such as 100% Renewables will ensure a smooth and easy process. Please download our Climate Active brochure to find out more about how we can help you with your Climate Active certification.

100% Renewables’ staff are registered consultants with Climate Active. If you would like to achieve certification, or prepare for certification, please contact Barbara.

Feel free to use an excerpt of this blog on your own site, newsletter, blog, etc. Just send us a copy or link and include the following text at the end of the excerpt: “This content is reprinted from 100% Renewables Pty Ltd’s blog.

 

FAQs for becoming certified under Climate Active – Part 2 [with video]

One of our service offers is helping our clients determine their Climate Active carbon footprint and obtain Climate Active certification from the Commonwealth Government. Over the last few months, we’ve received many calls of organisations wanting to find out more about Climate Active accreditation, which resulted in the publication of  Part 1 of this series.

In Part 2 of this series, we will discuss more details about scope 1, 2 and 3 emissions and what emission sources typically form part of a Climate Active carbon footprint. In the final blog post of this series, we will go into more details about how to get certified under Climate Active.

What are scope 1, scope 2 and scope 3 emissions?

Scope 1 emissions are emissions directly generated at your operations, such as burning natural gas or driving company cars, or refrigerant gases in your air conditioning equipment.

Scope 2 emissions are caused indirectly by consuming electricity. These emissions are generated outside your organisation (think coal-fired power station), but you are indirectly responsible for them.

Scope 3 emissions are also indirect emissions and happen upstream and downstream of your business. Examples are waste, air travel, the consumption of goods and services, contractor emissions, or leased assets.

Overview of GHG Protocol scopes and emissions across the value chain

Figure 1: Emission sources and scopes – graphic adjusted from the Corporate Value Chain Accounting and Reporting Standard

Supply chain emissions/Scope 3 categories

According to the GHG Protocol, specifically the Corporate Value Chain Accounting and Reporting Standard, there are 15 categories of supply chain/scope 3 emissions

Upstream supply chain emissions

  1. Purchased goods and services
  2. Capital goods
  3. Fuel- and energy-related activities (not included in scope 1 or scope 2)
  4. Upstream transportation and distribution
  5. Waste generated in your operations
  6. Business travel
  7. Employee commuting
  8. Upstream leased assets

Downstream supply chain emissions

  1. Downstream transportation and distribution
  2. Processing of sold products
  3. Use of sold products
  4. End-of-life treatment of sold products
  5. Downstream leased assets
  6. Franchises
  7. Investments

While this list looks a bit overwhelming, not all emission sources will be relevant. It’s important to prioritise your data collection efforts and focus on your most significant and relevant emission sources. You can ask questions such as whether you expect the emission source to be large relative to your scope 1 and scope 2 sources, or whether you have influence over the activity, or whether your stakeholders deem the emission source relevant.

The graphic below shows a graphical representation of a typical Climate Active boundary for emission sources.

Typical Climate Active boundary for emission sources

Figure 2: Typical Climate Active boundary for emission sources

What are the benefits of calculating supply chain/scope 3 emissions?

Just looking at your scope 1 and scope 2 emissions can give you a distorted picture of your environmental impact. Going through the list of upstream and downstream scope 3 emission sources is a great exercise to identify the carbon intensity of your value and supply chain. It encourages the quantification and reporting of emissions from various suppliers, which can help you drive greater emission reductions. It will also have a snowball effect by not only you focusing on reducing your direct emission sources, but also encouraging your suppliers to reduce theirs.

For many organisations scope 3 emissions can represent a much larger emission source than scope 1 and scope 2 emissions, and it is often eye-opening to calculate your carbon footprint across all three scopes. Also, the more scope 3 emission sources you include in your carbon inventory, the more credibility your statement of carbon neutrality will have.

Understanding scope 3 emissions will help you plan for potential future carbon regulations and can guide corporate procurement decisions and product design.

What emission sources are in a typical Climate Active footprint?

A Climate Active carbon footprint encompasses many emission sources across the three carbon accounting scopes. One of the first steps in getting certified under the Climate Active program is to determine your carbon footprint boundary.

You need to include all emissions that you have direct control or ownership of, such as natural gas, transport fuel usage by your vehicles, and electricity consumption in your operations. You also need to identify all emissions that are a consequence of your activities but are outside of your direct ownership or control, such as waste and contractors’ transport.

You must also include emissions from third party electricity use under your organisation’s control even if they are offsite, such as outsourced data centres, if these emissions are large relative to other emission sources.

You don’t need to include every single emission source, but you must assess all other direct and indirect emissions to determine whether they are ‘relevant’.

The relevancy test

Under Climate Active, particular emissions sources are relevant when any two of the following conditions are met:

  • The emissions are likely to be large relative to your electricity, stationary energy and fuel emissions
  • The emissions contribute to your GHG risk exposure, and including and addressing them will help you to avoid future costs related to energy and emissions
  • The emissions are deemed relevant by your key stakeholders (such as major customers, suppliers, investors or the wider community)
  • You have the potential to influence an emissions reduction
  • The emissions are from outsourced activities that were previously undertaken in-house, or from outsourced activities that are typically undertaken within the boundary for comparable organisations. Data centres and transport are typical examples of this.

If an emission source is relevant, you must include it in your carbon footprint boundary. You can exclude emissions that are not relevant, but you should disclose these in your public reporting documents.

You may find that many emission sources will be relevant, but you don’t have to collect data for all of them. For instance, if the associated emissions constitute less than 1% of the total carbon footprint, you can include the source in your boundary, but you don’t have to calculate its associated emissions.

There are many more questions to be answered, so stay tuned for Part 3 of this blog post series. If you are going through Climate Active certification for the first time, the whole process can seem a bit confusing. Engaging a registered consultant such as 100% Renewables will ensure a smooth and easy process. Please download our Climate Active brochure to find out more about how we can help you with your Climate Active certification.

100% Renewables’ staff are registered consultants with Climate Active. If you would like to achieve certification, or prepare for certification, please contact Barbara.

Feel free to use an excerpt of this blog on your own site, newsletter, blog, etc. Just send us a copy or link and include the following text at the end of the excerpt: “This content is reprinted from 100% Renewables Pty Ltd’s blog.