GHG Inventory Report Verification

I. INTRODUCTION TO GHG INVENTORY REPORT VERIFICATION SERVICES

In the context of Vietnam and the international community accelerating the transition to a low-carbon economy, aiming for the net-zero emission goal, and enhancing corporate responsibility for climate change, the quantification, inventory, and reporting of greenhouse gas (GHG) emissions are increasingly becoming critical elements in corporate governance, legal compliance, supply chain management, and international market integration.

A GHG inventory report provides information on the emission sources, GHG emissions, and removals of an organization within a defined reporting period. For this information to be reliable enough for management, disclosure, or provision to stakeholders, GHG data and statements must be reviewed independently, objectively, and systematically based on defined criteria.

With the orientation of “Building Trust - Stepping firmly into Integration”, GIC Vietnam provides verification services for GHG inventory reports prepared in accordance with ISO 14064-1:2018 and/or agreed GHG inventory criteria, to provide an objective conclusion on whether the GHG information is presented in accordance with the applicable criteria and is free from material misstatements.

In Vietnam, facilities listed in the categories required to conduct GHG inventories periodically issued by the Prime Minister are responsible for organizing inventories, preparing, and submitting reports in accordance with legal regulations on GHG emission reduction, ozone layer protection, and technical guidelines applicable to specific sectors.

In that context, independent verification under ISO 14064-3 helps enhance the reliability of GHG data and inventory reports, while supporting organizations in improving their carbon data management systems. ISO verification results do not replace the review, appraisal, or approval by competent authorities; the use of verification results for compliance purposes depends on the requirements of the applicable documents or programs.

Through independent verification activities, GIC Vietnam assists organizations/enterprises in:

• Enhancing the reliability, accuracy, and transparency of GHG data and inventory reports;
• Evaluating the completeness and appropriateness of the organizational boundaries, reporting boundaries, identified GHG emission sources, and sinks;
• Assessing quantification methodologies, activity data, emission factors, assumptions, calculations, and the GHG data consolidation process;
• Identifying deviations, omissions, and weaknesses in the data collection, control, or management systems that could materially affect the reported GHG information;
• Assisting enterprises in reviewing and completing information, data, and evidence for the preparation and submission of GHG inventory reports in compliance with Vietnamese laws and sector-specific technical guidelines;
• Strengthening the credibility of information provided to regulatory agencies, customers, investors, parent companies, partners, and stakeholders in the supply chain;
• Creating a reliable data foundation for ESG governance, establishing emission reduction goals and plans, managing carbon, and preparing to participate in carbon markets or GHG emission-related mechanisms;
• Improving carbon data governance capacity, supporting data preparation to meet international market and supply chain requirements, including CBAM and other relevant carbon mechanisms.

GIC Vietnam's verification activities are developed and implemented based on international standards, verification criteria, and requirements of the applicable programs. Depending on the purpose, scope, and subject of verification, the applied or referenced standards may include:

For the verification body and the competence of the expert team:

• ISO/IEC 17029:2019 Conformity assessment — General principles and requirements for validation and verification bodies;
• ISO 14065:2020 General principles and requirements for bodies validating and verifying environmental information;
• ISO 14066:2023 Environmental information — Competence requirements for teams validating and verifying environmental information.

For the verification process:

• ISO 14064-3:2019 Greenhouse gases — Part 3: Specification with guidance for the verification and validation of greenhouse gas statements;
• ISO 14064-5:2026 Greenhouse gases — Part 5: Guidance on activities and techniques used remotely during the validation and verification of greenhouse gas statements;
• Other requirements of the verification program or relevant GHG programs.

Criteria for the GHG inventory report may include:

• ISO 14064-1:2018 Greenhouse gases — Part 1: Specification with guidance at the organization level for quantification and reporting of greenhouse gas emissions and removals;
• GHG Protocol Corporate Accounting and Reporting Standard, when selected by the client or the applicable program;
• Current Vietnamese legal regulations on GHG inventory and reporting, including the list of facilities required to conduct inventories, requirements for report preparation and submission, and technical regulations and guidelines applicable to each sector;
• Standards, methodologies, regulations of the GHG program, market, or other specific requirements suitable for the intended use of the verification results.

During the preparation and completion of the GHG inventory report under ISO 14064-1:2018, organizations/enterprises can refer to ISO/TS 14064-4:2025 Greenhouse gases — Part 4: Guidance for the application of ISO 14064-1.

When a GHG inventory report is registered for verification, specific verification criteria are determined based on the intended use of the GHG information, the needs of intended users, legal requirements, and the requirements of the applicable program. Before conducting the verification, GIC Vietnam agrees with the client on the applicable criteria, verification scope, reporting period, level of assurance, and materiality threshold appropriate for each verification engagement.

GIC Vietnam applies a risk-based and materiality-based verification approach. Before collecting evidence, GIC Vietnam conducts strategic analysis, risk assessment, and materiality determination to develop an appropriate verification plan, focusing on emission sources, data, quantification methodologies, and processes prone to material misstatements.

Depending on the scope, level of assurance, applicable criteria, and operational characteristics of the organization, the verification process may include:

• Reviewing organizational boundaries and GHG reporting boundaries;
• Identifying and assessing relevant direct and indirect emission sources, sinks, and emission categories;
• Evaluating the GHG data collection, control, consolidation, and management systems;
• Checking activity data, emission factors, quantification methodologies, assumptions, uncertainty levels, and calculations;
• Tracing data from the GHG inventory report back to consolidated data, records, vouchers, or primary evidence;
• Sampling and testing evidence based on the risk assessment;
• Interviewing responsible personnel and observing relevant activities, equipment, or emission sources;
• Performing recalculations, reconciliations, and analytical procedures as necessary;
• Evaluating the impact of individual misstatements and aggregating them against the determined materiality threshold as a basis for the verification conclusion.

Verification activities are performed with reasonable assurance or limited assurance, as agreed with the client and in accordance with the applicable criteria or verification program. Reasonable assurance provides a higher level of confidence but is not absolute assurance; limited assurance provides a lower level of confidence, with corresponding nature and extent of verification procedures.

Based on the objective, sufficient, and appropriate evidence collected, GIC Vietnam issues a Verification Statement, clearly stating the verified subject, scope, reporting period, applicable criteria, level of assurance, verification conclusion, and any caveats or limitations, if applicable.

III. WHY CHOOSE GIC VIETNAM?

• Professional competence and verification methodologies meeting international standards: GIC Vietnam is a conformity assessment body operating under international standards, with verification processes developed in accordance with ISO 14064-3, ISO/IEC 17029, and relevant requirements. The verification approach is based on risk assessment, materiality, and level of assurance, helping to focus on emission sources, data, and content that significantly impact the credibility of the GHG inventory report.
• Competent and practically experienced expert team: GIC Vietnam's expert team possesses knowledge and experience in environmental fields, greenhouse gas inventories, legal regulations, and specialized techniques. Experts are selected based on the specific operational characteristics of each enterprise, ensuring the verification process is conducted professionally, consistently, and effectively.
• Independence, objectivity, and confidentiality: GIC Vietnam is committed to maintaining independence, objectivity, and integrity throughout the verification process; controlling conflict-of-interest risks and ensuring client information confidentiality in accordance with conformity assessment principles.
• Enhancing data reliability and supporting carbon governance capacity improvement: Verification activities not only help enterprises increase the credibility and transparency of their GHG inventory reports but also identify areas needing enhancement in the emission data collection, control, and management processes. This provides a better foundation for information disclosure, ESG governance, developing emission reduction plans, and meeting requirements from customers, supply chains, or related carbon mechanisms.
• Professional, flexible, and efficient services: GIC Vietnam organizes verification activities suitable for the scale, operational sector, complexity, and needs of each enterprise. The process is implemented transparently, with close coordination and time optimization, enabling enterprises to utilize resources efficiently while still ensuring the quality and reliability of the verification results.