Summary of Toitū Carbon Programmes' Standard

Toitū has two accredited organisational GHG programmes: Toitū carbonreduce and Toitū carbonzero. Both 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.

Toitū also offers Toitū climate positive certification, which builds on the same requirements for Toitū 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. This programme is currently in the process of achieving accreditation. Read more about what we think climate positive means here.

The key requirements to achieve our Toitu carbon programme certifications are outlined here. We define key terms in the glossary below.


Measure

Toitū boundary: which activities must be included

The following applies for Toitū carbonreduce, Toitu carbonzero and Toitu 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.

Toitu 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 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 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 Toiū's set price of carbon ($8/tonne 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

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.

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.

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.

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 contributionToitū climate positive term used to describe initiatives that contribute to broader social and environmental outcomes in relation to climate changeToitū 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

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.

Science Based Targets initiative

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 Technical Requirements

Technical Requirements means the document entitled Technical Requirements: Requirements for Toitū 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