No Result
View All Result
SUBSCRIBE | NO FEES, NO PAYWALLS
MANAGE MY SUBSCRIPTION
NEWSLETTER
Corporate Compliance Insights
  • Home
  • About
    • About CCI
    • CCI Magazine
    • Writing for CCI
    • Career Connection
    • NEW: CCI Press – Book Publishing
    • Advertise With Us
  • Explore Topics
    • See All Articles
    • Compliance
    • Ethics
    • Risk
    • FCPA
    • Governance
    • Fraud
    • Internal Audit
    • HR Compliance
    • Cybersecurity
    • Data Privacy
    • Financial Services
    • Well-Being at Work
    • Leadership and Career
    • Opinion
  • Vendor News
  • Library
    • Download Whitepapers & Reports
    • Download eBooks
    • New: Living Your Best Compliance Life by Mary Shirley
    • New: Ethics and Compliance for Humans by Adam Balfour
    • 2021: Raise Your Game, Not Your Voice by Lentini-Walker & Tschida
    • CCI Press & Compliance Bookshelf
  • Podcasts
    • Great Women in Compliance
    • Unless: The Podcast (Hemma Lomax)
  • Research
  • Webinars
  • Events
  • Subscribe
Jump to a Section
  • At the Office
    • Ethics
    • HR Compliance
    • Leadership & Career
    • Well-Being at Work
  • Compliance & Risk
    • Compliance
    • FCPA
    • Fraud
    • Risk
  • Finserv & Audit
    • Financial Services
    • Internal Audit
  • Governance
    • ESG
    • Getting Governance Right
  • Infosec
    • Cybersecurity
    • Data Privacy
  • Opinion
    • Adam Balfour
    • Jim DeLoach
    • Mary Shirley
    • Yan Tougas
No Result
View All Result
Corporate Compliance Insights
Home Governance

GHG Verification an Overlooked Board Responsibility?

Fiduciary duty of directors can’t co-exist with hands-off approach to sustainability

by John Peiserich
June 28, 2023
in Governance, Opinion
greenhouse gas emissions

Organizational buy-in of sustainability goals must go all the way to the top, including the board of directors, if those goals have any hope of being met. As ESG columnist John Peiserich explores, there are some nuances board directors should be aware of regarding greenhouse gas emissions.

Boards of directors are the lynchpin to effective sustainability programs. Effective sustainability programs can only be created and maintained when there is consistent support from the management team. Without this, rank-and-file employees will not buy into the sustainability program and, therefore, the program will struggle to be successful. 

Not only does the board need to establish the appropriate sustainability program for the company, but it also needs to ensure that monitoring and verification procedures are in place to track the progress of the company along the sustainability journey.

Why should the board of directors care?

Individual board members have several fiduciary responsibilities related to sustainability that they owe to the organization and its stakeholders, including:

  1. Duty of care: Board members have a duty to exercise reasonable care and diligence in overseeing the affairs of the organization. This includes staying informed about the organization’s operations and making informed decisions.
  2. Duty of obedience: Board members have a duty to ensure that the organization complies with its legal and regulatory obligations.
  3. Duty to monitor: Board members have a duty to monitor the organization’s operations, including its financial performance and risk management practices.
  4. Duty to plan: Board members have a duty to develop and implement a strategic plan that ensures the long-term success of the organization.

These fiduciary duties are designed to ensure that board members act in the best interests of the organization and its stakeholders. By fulfilling these duties, board members can help to ensure long-term success of the organization and protect the interests of stakeholders.

If a board member fails to meet their fiduciary duty, they may individually face legal and regulatory risks, reputational risk and financial/liability risk. A board member who fails to meet these duties may be held personally liable for damages resulting from their actions or inaction. Breach may include failing to exercise reasonable care in overseeing the organization’s activities, such as by failing to monitor financial performance or risk management practices. Board members should also seek legal and professional advice when necessary to ensure that they are meeting their fiduciary duties appropriately.

To ensure that corporate actions are appropriate, board members should follow good management practices. Board members should have a thorough understanding of the organization’s business operations, strategy, risks and opportunities. This understanding will enable board members to make informed decisions and provide effective oversight.

Board members should establish effective governance structures, including clear roles and responsibilities, decision-making processes and accountability mechanisms. This will enable the board to oversee the organization’s activities effectively. Tracking processes allow board members to monitor the organization’s performance against its strategic objectives. By regularly reviewing financial and non-financial information board members can ensure that the organization is operating effectively and in line with its mission and values.

Risk management is a key function of the board. Board members should identify and manage financial, operational, and reputational risks. This includes establishing effective risk management programs, monitoring risk exposure, and taking appropriate actions to mitigate risks. Part of risk management includes compliance with legal and regulatory requirements, including financial reporting, environmental, social, and governance regulations.

While many board members do not consider the need to engage with stakeholders as a routine obligation, board members should engage with stakeholders, including employees, customers, investors and community groups, to understand their perspectives and concerns and to ensure that the organization is operating in establishing appropriate corporate missions and values, then tracking those missions and values.

wind turbines
Governance

What Companies Around the Globe Need to Know About EU Sustainability Reporting

by John Peiserich
March 28, 2023

By the beginning of next year, large companies in the EU or that do a substantive amount of business in EU countries will be required to issue sustainability disclosures under new rules. ESG columnist John Peiserich sorts through the details.

Read moreDetails

The board and greenhouse gas verification

One issue a board of directors should care about is greenhouse gas (GHG) verification. Many countries and jurisdictions have mandatory reporting requirements for GHG emissions. Ensuring compliance with these regulations is important to avoid legal and financial penalties. Environmental issues are becoming increasingly more important to investors and stakeholders. Negative reports can damage the reputation of the organization and lead to negative publicity.

GHG emissions represent a significant regulatory and financial risk for many organizations. Understanding and managing these risks is important for ensuring the long-term viability of the business. Regulatory compliance costs, energy costs and other operational costs are all impacted by GHG emissions. Reducing GHG emissions can lead to cost savings and improved financial performance.

What is GHG verification?

As a result, tracking and reporting GHG emissions are more and more important at the board level. GHG verification is exactly what it sounds like — a verification that the data and reporting are correct. GHG emission reporting verification helps to ensure the accuracy and credibility of the reported emissions data. This is important for making informed decisions about climate change mitigation strategies and for demonstrating the effectiveness of GHG reduction programs. Additionally, many jurisdictions have mandatory reporting requirements for GHG emissions, and verification may be required to ensure compliance with these regulations.

Verification of GHG emissions data can help build confidence in reported data and can demonstrate a commitment to transparency and accountability. Investors and stakeholders are increasingly interested in the environmental performance of companies and organizations. GHG emission reporting and associated verification can help to identify areas where improvements can be made to reduce emissions and can provide valuable feedback for refining GHG reduction strategies.

What the board should expect: a common verification protocol – ISO 14064-3

The International Organization for Standardization (ISO) is an independent, non-governmental organization that develops voluntary, consensus-based standards — across more than 24,000 standards —  covering management, manufacturing and technology. ISO Standard No. 14064 is specific to GHG emissions and is the ISO standard for quantifying, monitoring, reporting and verifying GHG emissions and removals. The standard includes three parts:

  1. Specification with guidance at the organization level for quantification and reporting of GHG emissions and removals.
  2. Specification with guidance at the project level for quantification, monitoring, and reporting of GHG emission reductions or removal enhancements.
  3. Specification with guidance for the validation and verification of GHG assertions.

Part 3 of the standard outlines the requirements for third-party verification of GHG emissions and removals. The verification process involves an independent auditor evaluating the GHG inventory and reduction program to ensure that it complies with the requirements of the standard. The verification process includes:

  1. Planning and scoping the verification.
  2. Reviewing the GHG inventory and reduction program.
  3. Conducting on-site visits and interviews.
  4. Reviewing and verifying the data and calculations.
  5. Issuing a verification statement.

The verification process provides assurance, which is defined as a limited or reasonable level of assurance depending on the scope, to stakeholders that the GHG reporting is accurate, complete and reliable. It also identifies areas where improvements can be made to further reduce GHG emissions and improve the program’s effectiveness.

Conclusion

Overall, using ISO 14064-3 for GHG verification provides a consistent and transparent process for evaluating GHG reporting. ISO 14064-3 is a widely recognized and respected standard for GHG verification, and it has been adopted by many organizations around the world. Some jurisdictions specify the reporting and verification protocols to be used and they may differ from ISO. Some jurisdictions have their own protocols. The Climate Registry General Verification Protocol is also widely used. 

Regardless of the type of verification protocol used, it provides an established process that board members can rely upon to return a result which in turn confirms that corporate GHG reporting is accurate, complete and reliable — all critical to the board’s needs.

This article was first published by J.S. Held and is republished here with permission.

Tags: Board of DirectorsBoard Risk OversightESG
Previous Post

HIPAA’s Privacy Rule Is 20 Years Old. Why Do Organizations Keep Breaking It?

Next Post

Regulatory Gray Areas Make Telemarketing Compliance a Tough Call

John Peiserich

John Peiserich

John Peiserich is a senior vice president in J.S. Held’s Environmental, Health & Safety — Risk & Compliance group. With over 30 years of experience, John provides consulting and expert services for heavy industry and law firms throughout the country with a focus on oil and gas, energy and public utilities. He has extensive experience evaluating risk associated with potential and ongoing compliance obligations, developing strategies around those obligations, and working to implement a client-focused compliance strategy. He has appointments as an independent monitor through EPA’s Suspension and Debarment Program. John routinely supports clients in a forward-facing role for rulemaking and legislative issues involving energy, environmental, oil and gas, and related issues.

Related Posts

seeing outside the box

Disrupters See the World Differently — and Act Accordingly

by Jim DeLoach
May 13, 2025

Critical differences in culture, technology adoption and talent strategies determine which organizations shape markets and which scramble to respond

eu flags brussels

EU’s Regulatory Retreat? The Omnibus Package’s Impact on Sustainability Reporting

by Jon Solorzano, Kelly Rondinelli and Jacob Baltzegar
April 28, 2025

Extended timelines and reduced requirements offer relief as substantial reforms remain under consideration

data abstract green purple

66% of CISOs Worry Cyber Threats Are More Advanced Than Companies’ Defenses

by Staff and Wire Reports
April 25, 2025

US business sector falling behind in adoption of renewable energy

signing deal signature

When the Ink Dries: 6 Critical Post-Transaction Areas That Make or Break M&A Success

by Jim DeLoach
April 14, 2025

Poor follow-up once the deal is closed can cause culture clashes & value erosion

Next Post
telemarketing compliance

Regulatory Gray Areas Make Telemarketing Compliance a Tough Call

No Result
View All Result

Privacy Policy | AI Policy

Founded in 2010, CCI is the web’s premier global independent news source for compliance, ethics, risk and information security. 

Got a news tip? Get in touch. Want a weekly round-up in your inbox? Sign up for free. No subscription fees, no paywalls. 

Follow Us

Browse Topics:

  • CCI Press
  • Compliance
  • Compliance Podcasts
  • Cybersecurity
  • Data Privacy
  • eBooks Published by CCI
  • Ethics
  • FCPA
  • Featured
  • Financial Services
  • Fraud
  • Governance
  • GRC Vendor News
  • HR Compliance
  • Internal Audit
  • Leadership and Career
  • On Demand Webinars
  • Opinion
  • Research
  • Resource Library
  • Risk
  • Uncategorized
  • Videos
  • Webinars
  • Well-Being
  • Whitepapers

© 2025 Corporate Compliance Insights

Welcome to CCI. This site uses cookies. Please click OK to accept. Privacy Policy
Cookie settingsACCEPT
Manage consent

Privacy Overview

This website uses cookies to improve your experience while you navigate through the website. Out of these, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may affect your browsing experience.
Necessary
Always Enabled
Necessary cookies are absolutely essential for the website to function properly. These cookies ensure basic functionalities and security features of the website, anonymously.
CookieDurationDescription
cookielawinfo-checbox-analytics11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Analytics".
cookielawinfo-checbox-functional11 monthsThe cookie is set by GDPR cookie consent to record the user consent for the cookies in the category "Functional".
cookielawinfo-checbox-others11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Other.
cookielawinfo-checkbox-necessary11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookies is used to store the user consent for the cookies in the category "Necessary".
cookielawinfo-checkbox-performance11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Performance".
viewed_cookie_policy11 monthsThe cookie is set by the GDPR Cookie Consent plugin and is used to store whether or not user has consented to the use of cookies. It does not store any personal data.
Functional
Functional cookies help to perform certain functionalities like sharing the content of the website on social media platforms, collect feedbacks, and other third-party features.
Performance
Performance cookies are used to understand and analyze the key performance indexes of the website which helps in delivering a better user experience for the visitors.
Analytics
Analytical cookies are used to understand how visitors interact with the website. These cookies help provide information on metrics the number of visitors, bounce rate, traffic source, etc.
Advertisement
Advertisement cookies are used to provide visitors with relevant ads and marketing campaigns. These cookies track visitors across websites and collect information to provide customized ads.
Others
Other uncategorized cookies are those that are being analyzed and have not been classified into a category as yet.
SAVE & ACCEPT
No Result
View All Result
  • Home
  • About
    • About CCI
    • CCI Magazine
    • Writing for CCI
    • Career Connection
    • NEW: CCI Press – Book Publishing
    • Advertise With Us
  • Explore Topics
    • See All Articles
    • Compliance
    • Ethics
    • Risk
    • FCPA
    • Governance
    • Fraud
    • Internal Audit
    • HR Compliance
    • Cybersecurity
    • Data Privacy
    • Financial Services
    • Well-Being at Work
    • Leadership and Career
    • Opinion
  • Vendor News
  • Library
    • Download Whitepapers & Reports
    • Download eBooks
    • New: Living Your Best Compliance Life by Mary Shirley
    • New: Ethics and Compliance for Humans by Adam Balfour
    • 2021: Raise Your Game, Not Your Voice by Lentini-Walker & Tschida
    • CCI Press & Compliance Bookshelf
  • Podcasts
    • Great Women in Compliance
    • Unless: The Podcast (Hemma Lomax)
  • Research
  • Webinars
  • Events
  • Subscribe

© 2025 Corporate Compliance Insights