Summary of Toitū Carbon Programmes' Standard
Toitū has three organisational GHG programmes: Toitū carbonreduce, Toitū net carbonzero and Toitū climate positive. All programmes are based on and fully incorporate GHG measurement standard ISO 14064 part 1, and align with the requirements of the Greenhouse Gas Protocol corporate standard. We have aligned our programme requirements with the recently updated standards. The Toitū carbon certification programme is accredited by JASANZ.
Toitū Climate Positive certification builds on the same requirements for Toitū net carbonzero, but requires applicants to go beyond on each step to achieve a positive impact. These additional requirements align with the same standards as well as aligning with Science Based Target initiative principles for reducing emissions. Read more about what we think climate positive means here.
The key requirements to achieve our Toitū carbon programme certifications are outlined here.
We define key terms in the glossary below.
Measure
The activities measured are categorised by activity type. These categories are standardised as Categories 1-6 under ISO 14064-1:2018 and Scopes 1-3 under GHG Protocol, with an additional 15 sub categories in Scope 3. These groupings are mapped against one another below, as well as showing Toitū's own subcategories based on the two frameworks and typical activities.
Toitū boundary: which activities must be included
The following applies for Toitū carbonreduce, Toitū net carbonzero and Toitū climate positive organisation certification.
- The following emissions sources must be included in the inventory (unless they are so small they are insignificant):
- All direct emissions from the activities of the organisation, or the part of the organisation being certified. Direct emissions come from assets owned or controlled by the organisation, such as emissions from fleet vehicles, boilers, generators and HVAC systems.
- All emissions from imported energy (electricity, heat and steam)
- Emissions from business travel and freight paid for by the organisation
- Emissions associated with waste disposed of by the organisation, as well as the transmission and distribution of electricity, and natural gas
- When developing their inventory, organisations must also consider:
- the purpose of the inventory, and the parties that are likely to use the inventory to make decisions
- Additional indirect GHG emissions considered relevant to intended inventory users. These emissions must be reported where it is a reasonable assumption that the activity is included in the inventory, and where the certification claim implies that the activity is included in the inventory.
Toitū Climate Positive certification also requires:
- The full value chain must be screened for an estimated level of climate impact. This process aligns with the 15 categories of the GHG Protocol Corporate Value Chain (Scope 3) Standard and the 4 Indirect Emissions Categories under ISO 14064-1:2018.
Reporting
- Organisations must prepare a GHG inventory report. This allows users to understand the inventory and key matters associated with the organisations’ operations
- Organisations must make their verification or assurance statement available to their identified intended users. This statement provides some key information about audit process outcomes such as any limitations identified by the auditors.
Manage and reduce impacts
In addition to a robust measurement of emissions, our programmes have other requirements that drive emissions reductions over time, leading to carbon neutrality. Other requirements of our Toitū carbonreduce and Toitū net carbonzero programmes include:
- Organisations must set emissions reduction targets and identify projects to reduce emissions in order to meet these targets
- Organisations must either achieve emission reductions within six years of their initial measurement period (base year), and every six years thereafter, or they must show that they have met or exceeded industry benchmarks. The reductions would ideally be absolute emissions reductions, but improvement in emissions intensity is also accepted.
Toitū climate positive certification also requires:
- Organisations set targets to achieve
- absolute reduction (as opposed to intensity reduction) of category 1 and 2 emissions, aligned to 1.5°C warming
- absolute reduction of Toitū boundary category 3 to 6 emissions (see above), aligned to well below 2°C warming
- supplier engagement and other methods (such as intensity targets that meet SBTi definitions) for the remainder of the value chain emissions (such as purchased goods and services, capital goods, investments, downstream leased assets).
- engage with staff, customers or suppliers to support broader decarbonisation.
- Organisations must demonstrate progress towards their science-aligned reduction targets on a three year cycle to maintain climate positive level certification.
Compensating for annual emissions
Organisations seeking Toitū net carbonzero certification
- Compensate for any net emissions by purchasing carbon credits or using non-credited removals that meet Toitū’s requirements. The compensation must cover a minimum of the total Toitū mandatory boundary outlined above.
Organisations seeking Toitū climate positive certification
- Compensate for any net emissions by purchasing carbon credits or using non-credited removals that meet Toitū's requirements. The compensation must cover a minimum of the total Toitū mandatory boundary outlined above to 125%.
- Contribute to broader social and environmental outcomes by investing financial or labour resources in a project that helps the wider sector or society decarbonise, make a just transition, or adapt to climate change impacts. This investment contribution needs to be equivalent to the cost of offsetting 75% of the programme’s mandatory emissions at Toitū's set price of carbon ($8/ton as of January 2022).
Glossary of terms
Term | Definition | Reference |
|---|---|---|
All measured emissions | All emissions within the Toitū carbon programmes boundary plus any additional emissions chosen for measurement, typically selected following a significance criteria screening assessment. | Toitū definition |
Avoidance and reduction credits | A tradable, non-tangible instrument representing a unit of carbon dioxide-equivalent (CO2e) – typically one tonne - that is reduced or avoided by a project that is additional to a Business-as-Usual scenario, and is certified/verified to an internationally recognised carbon accounting standard | Adapted by Toitū |
| Carbon neutral | A carbon accounting term referring to the practice of balancing an entity's emissions for a given inventory period with an equivalent amount of high-quality carbon offsets resulting in a net emissions balance of zero; emissions minus equivalent offsets (for comparison, see also net zero and Toitū net carbonzero certification) | Adapted by Toitū from ISO and Science Based Targets initiative |
| Carbon negative | A carbon accounting term referring to the practice of balancing an entity's emissions for a given inventory period with an equivalent amount of high-quality carbon offsets resulting in a negative net emissions balance; emissions minus more than equivalent offsets Equivalent terms sometimes used are carbon positive, climate positive, typically when referring to more than just the emissions balance. (for comparison, see also carbon neutral and Toitū climate positive certification) | Adapted by Toitū |
| Category 1 emissions and removals | Direct GHG emissions and removals occur from GHG sources or sinks inside organisational boundaries and that are owned or controlled by the organisation. Examples include combustion of petrol in a company owned vehicle fleet, combustion of LPG in company owned equipment, and fugitive emissions from a company owned refrigeration system. Note: also known as Scope 1 under ISO 14064-1:2006 or GHG Protocol Corporate Standard. See below tables for how the frameworks align. | ISO 14064-1:2018. Specification with guidance at the organization level for quantification and reporting of greenhouse gas emissions and removals. |
Category 2 emissions | Indirect emissions from [production of] energy – electricity, heat, steam, cooling, compressed air Note: also known as Scope 2 under ISO 14064-1:2006 or GHG Protocol Corporate Standard. See below tables for how the frameworks align. | ISO 14064-1:2018. Specification with guidance at the organization level for quantification and reporting of greenhouse gas emissions and removals. |
Category 3-6 emissions | All Indirect emissions (with the exception of Category 2) in the value chain of the organisation. Includes, but not limited to transportation services, other products and services used by the organisation, use of products sold by the organisation. Note: also known as Scope 3 under ISO 14064-1:2006 or GHG Protocol Corporate Standard. See below tables for how the frameworks align. | ISO 14064-1:2018. Specification with guidance at the organization level for quantification and reporting of greenhouse gas emissions and removals. |
Compensate | Measurable climate mitigation outcomes, resulting from actions outside of the value chain of a company that compensate for emissions that remain unabated within the value chain of a company | Voluntary Carbon Markets Integrity Initiative, 2021: Consultation Report: Aligning Voluntary Carbon Markets with the 1.5C Paris Agreement Ambition. |
Double claiming [accounted within the national inventory of the country of origin] | A situation in which the same emission reduction or removal is claimed by two different entities towards achieving climate change mitigation, e.g. once by the country in which the emission reduction or removal occurs, and once by the entity using an emissions unit or credit. | Voluntary Carbon Markets Integrity Initiative, 2021: Consultation Report: Aligning Voluntary Carbon Markets with the 1.5C Paris Agreement Ambition. |
Emissions Reduction target | The desired level of emissions a Toitū programme participant has committed to achieve by a specified target year, relative to a base year. Targets are typically either near term/short term (5-15 years), and long term (e.g. by the year 2050) | Toitū definition |
| Impact contribution | Toitū Climate Positive term used to describe initiatives that contribute to broader social and environmental outcomes in relation to climate change | Toitū definition |
ISO 14064-1:2018 | ISO 14064-1:2018 means the international standard Greenhouse gases – Part 1: Specification with guidance at the organizational level for quantification and reporting of greenhouse gas emissions and removals issued by the International Organization for Standardization. | Toitū carbon programme Organisation Technical Requirements |
| Net zero | Net Zero is a state where gross Scope 1, 2 and 3 emissions are significantly reduced (90-95 per cent) through your entire value chain, and remaining 'hard to abate' residual emissions are neutralised with removals. This should not be used as a synonym for carbon neutral. Net Zero is a future commitment, carbon neutral is a current accounting balance. | Adapted by Toitū from Science Based Targets initiative |
Non-credited removals | Measured and verified removals within the reporting organisations measurement boundary that are not registered as a carbon credit | Toitū definition |
Removal credits | A tradable, non-tangible instrument representing a unit of carbon dioxide-equivalent (CO2e) – typically one tonne - that is removed (or sequestered) by a GHG sink project and is certified/verified to an internationally recognised carbon accounting standard | Adapted by Toitū |
Science aligned/Science based targets | Targets are considered ‘science-based’ if they are in line with what the latest climate science deems necessary to meet the goals of the Paris Agreement – limiting global warming to well-below 2°C above pre-industrial levels and pursuing efforts to limit warming to 1.5°C. The Toitū carbon programmes refer to the Science Based Targets Initiative (SBTi) for the latest criteria and guidance on aligning to being science based. | |
Toitū carbon programmes boundary | A core set of minimum emissions sources required for inclusion in Toitū programme organisation level GHG emissions measurements (unless an emissions source is shown to be de minimis), which include: a. All [direct] Category 1 and [indirect] 2 emissions, (GHG Protocol Scope 1 and 2) b. [indirect] Category 3 emissions associated with business travel and freight paid for by the organisation (GHG Protocol Scope 3) c. [indirect] Category 4 emissions associated with waste disposed of by the organisation, and transmissions and distribution of electricity and natural gas, where appropriate; and (GHG Protocol Scope 3) d. [indirect] any Sector specific mandatory emissions sources as outlined by the Programme (GHG Protocol Scope 3) | Toitū carbon programme Organisation Technical Requirements |
| Toitū carbonreduce certification | A Toitū certification offering that shows an entity is measuring, managing, and reducing their emissions in line with ISO 14064-1:2018 and Toitū requirements. Reductions over time are mandatory. | Toitū definition |
| Toitū climate positive certification | A Toitū certification offering that shows an entity is measuring, managing, reducing and offsetting emissions in line with ISO 14064-1:2018 and Toitū requirements, while going beyond to create an overall positive impact. Reductions over time in line with 1.5C targets are mandatory. | Toitū definition |
| Toitū net carbonzero certification | A Toitū certification offering that shows an entity is measuring, managing, reducing and offsetting emissions in line with ISO 14064-1:2018 and Toitū requirements. Reductions over time are mandatory. | Toitū definition |
Toitū Technical Requirements | Technical Requirements means the document entitled Technical Requirements: Requirements for Toitū net carbonzero and carbonreduce certified organisations (Organisation Technical Requirements) issued by Toitū Envirocare from time to time and containing the technical principles and rules for certification under the Programme. | Toitū carbon programme Organisation Technical Requirements |
Mapping categories across frameworks
The following table shows how ISO 14064-1:2018 Categories correspond to the GHG Protocol Corporate Standard and Scope 3 Standards, as well as Toitū's own activity subcategorisation used in our emissions calculation software. The Science Based Targets initiative also aligns with the GHG Protocol groupings.
Category | Toitū Subcategory (based on ISO 14064-1:2018) | Subcategory (SBTi/GHGP S3) |
|---|---|---|
Category 1: Direct emissions and removals | Stationary combustion | Scope 1 |
Mobile combustion (incl. company owned or leased vehicles) | Scope 1 | |
Emissions - Industrial processes | Scope 1 | |
Removals - Industrial processes | Scope 1 | |
Leakage of refrigerants | Scope 1 | |
Treatment of waste | Scope 1 | |
Treatment of wastewater | Scope 1 | |
Emissions - Land use, land-use change and forestry | Scope 1 | |
Removals - Land use, land-use change and forestry | Scope 1 | |
Fertiliser use | Scope 1 | |
Addition of livestock waste to soils | Scope 1 | |
Addition of crop residue to soils | Scope 1 | |
Enteric fermentation | Scope 1 | |
Addition of lime to soils | Scope 1 | |
Open burning of organic matter | Scope 1 | |
Category 2: Indirect GHG emissions from imported energy | Imported electricity | Scope 2 |
Imported energy | Scope 2 | |
Imported electricity for EVs | Scope 2 | |
Category 3: Indirect GHG emissions from transportation | Upstream freight - Paid by the organisation | 4. Upstream transportation and distribution |
Upstream freight - Paid by suppliers/others | 4. Upstream transportation and distribution | |
Downstream freight - Paid by the organisation | 9. Downstream transportation and distribution | |
Downstream freight - Paid by the customer/others | 9. Downstream transportation and distribution | |
Employee commuting | 7. Employee commuting | |
Business travel - Transport (non-company owned vehicles) | 6. Business travel | |
Business travel - Accommodation | 6. Business travel | |
Client and visitor transport | 9. Downstream transportation and distribution | |
Working from home | 7. Employee commuting | |
Category 4: Indirect GHG emissions from products used by organization | Purchased goods and services | 1. Purchased goods and services |
Capital goods | 2. Capital goods | |
Purchased fuel and energy related activities | 3. Fuel and energy related activities | |
Disposal of solid waste - Landfilled | 5. Waste generated in operations | |
Disposal of solid waste - Not landfilled | 5. Waste generated in operations | |
Disposal of liquid waste - Not wastewater | 5. Waste generated in operations | |
Disposal of liquid waste - Wastewater | 5. Waste generated in operations | |
Disposal of liquid waste - Tradewaste | 5. Waste generated in operations | |
Use of assets | 8. Upstream leased assets | |
Transmission of energy (T&D losses) | 3. Fuel and energy related activities | |
Client supplied electricity | 3. Fuel and energy related activities | |
Category 5: Indirect emissions associated with the use of products from the organisation | Use stage of sold products | 11. Use of sold products |
Downstream leased assets | 13. Downstream leased assets | |
End of life stage of sold products | 12. End-of-life treatment of sold products | |
Investments | 15. Investments | |
Franchises | 14. Franchises | |
Processing of sold goods | 10. Processing of sold products |
The following table shows how the GHG Scope 3 standard subcategories align with the ISO 14064-1:2018 Categories.
Scope 3 Subcategory (GHG Protocol and SBTi) | ISO 14064-1:2018 Category |
|---|---|
1. Purchased goods and services | Category 4 [purchased goods, services, other] |
2. Capital goods | Category 4 [capital goods] |
3. Fuel and energy related activities | Category 4: Indirect GHG emissions from products used by an organization |
4. Upstream transportation and distribution | Category 3 [upstream transport and distribution for goods, which are emissions from freight services that are paid for by the organization] |
5. Waste generated in operations | Category 4 [services - waste disposal] |
6. Business travel | Category 3 [ Emissions from business travel mainly due to fuel burnt in mobile sources of combustion. Hotel nights might be included when linked to the business travel, i.e. a stay over for flight connections, when attending a conference or for other business purposes. The indirect emissions generated during the journey should also be included, if such data are available and significant.] |
7. Employee commuting | Category 3 [Emissions from employee commuting, including emissions related to the transportation of employees from their homes to their workplaces. Telecommuting may incur a greater use of energy for heating or cooling from part of the employee’s energy consumption at home and thus could be considered in this subcategory.] |
8. Upstream leased assets | Category 4 [Indirect GHG emissions from goods purchased by an organization [leased assets]] |
9. Downstream transportation and distribution | Category 3 [downstream transport and distribution for goods are emissions from freight services that are due to the first purchasers or other purchasers throughout the supply chain but not paid for by the organization.] |
10. Processing of sold products | Category 5 (ISO silent on processing of sold products) |
11. Use of sold products | Category 5 [emissions associated with the use of products from the organization [use stage] |
12. End-of-life treatment of sold products | Category 5 [emissions associated with the use of products from the organization [end of life]] |
13. Downstream leased assets | Category 5 [emissions associated with the use of products from the organization [downstream leased assets]] |
14. Franchises | Category 5 (ISO silent on franchises) |
15. Investments | Category 5 [emissions associated with the use of products from the organization [investments]] |