SGS Independent Verification Statement Loading...
SGS United Kingdom Limited (SGS) has been contracted by United Parcel Service General Service Co. (“UPS”) of 55 Glenlake Parkway, NE, Atlanta, Georgia 30328 for the independent third party verification of direct and indirect carbon dioxide equivalent emissions (CO2e) as provided in their 2012 GHG Assertion dated 10/5/2013. Verification was conducted in accordance with ISO 14064-3.
Roles and responsibilities
The management of UPS is responsible for the organization’s GHG information system, the development and maintenance of records and reporting procedures in accordance with that system, including the calculation and determination of GHG emissions information and the reported GHG emissions.
It is SGS’ responsibility to express an independent GHG verification opinion on the emissions as provided in the UPS GHG Assertion for the period 01/01/2012 – 31/12/2012.
Title or description activities
The scope of this engagement covers the assessment of emissions from the following source streams:
Scope 1 Emissions
- Jet fuel used in UPS owned aircraft
- Diesel and gasoline used in UPS controlled vehicles
- Compressed and liquefied natural gas used in UPS controlled vehicles
- Propane and LPG used in UPS controlled vehicles
- Natural gas, heating oil and propane used in UPS controlled facilities
- HFC’s (fugitive) from vehicle A/C systems and refrigerated trailers
Scope 2 Emissions
Electricity use in UPS controlled facilities
Scope 3 Emissions
Category 3 Fuel and energy related
- Upstream well to pump related emission to the point of (but excluding) combustion for Jet-A, Diesel, Gasoline, CNG, LNG, propane / LPG, Natural gas, heating oil and propane.
- Electricity – (generation and Transmission and distribution loss)
Category 4 Upstream transportation and distribution
- Subcontracted transportation including air, rail, ground and ocean
Category 5 Waste generated in operation
- Recycled Waste Streams
Category 6 Business Travel
- Car rental
- Personnel Vehicles
Category 7 Employee Commuting
Category 12 End-of-Life Treatment of sold products
- Landfilled, recycled
Category 14 Franchises
- UPS Stores – Electricity
- UPS Stores – Natural Gas
Data and information supporting the GHG assertion were historical in nature for Scope 1 & 2 emissions and historical / estimated for Scope 3.
The organisational boundary was established following the operational control approach on a global basis.
2011 and 2010 Scope 2
Please note that the Scope 2 electricity factors for 2011 and 2010 have been revised using updated emission factors to enable better comparisons over time.
The objectives of this verification exercise were, by review of objective evidence, to confirm whether the GHG emissions are as declared in the organization’s GHG assertion were:
- Accurate, complete, consistent, transparent and free of material error or omission.
- Determined in accordance with the verification criteria below.
Criteria against which the verification assessment was undertaken are the requirements of the ISO 14064-1:2006 Reference calculation methodologies used:
- Scope 1 & 2 emissions - World Resources Institute/World Business Council for Sustainable Development Greenhouse Gas Protocol: A Corporate Accounting and Reporting Standard, Revised Edition (the GHG Protocol)
- Scope 3 emissions, the World Resources Institute/ World Business Council for Sustainable Development Greenhouse Gas Protocol: Corporate Value Chain (Scope 3), Accounting and Reporting Standard.
Level of Assurance and Materiality
The level of assurance agreed is that of reasonable assurance. A materiality level of 5% was applied. Note that assessment of compliance and materiality was undertaken against the stated calculation methodology.
- Reporting period – 1st January to 31st December 2012
- Intended user of the Verification Statement: UPS management, Carbon Disclosure Project, staff, stakeholders and general public.
- Location/boundary of the activities: worldwide
- Types of GHGs included: CO2, CH4, N2O, HFCs
- Consolidation Approach: Operational Control
We planned and performed our work to obtain the information, explanations and evidence that we considered necessary to provide a reasonable level of assurance that the reported GHG emissions for the period are fairly stated. We conducted our verification with regard to the GHG assertion of UPS which included assessment of GHG information system and monitoring and reporting methodology. This assessment included the collection of evidence supporting the reported data, and checking whether the provisions of the standard and methodology referenced in the verification criteria, were consistently and appropriately applied. This statement shall be interpreted with the GHG assertion of UPS as a whole.
SGS’ approach is risk-based, drawing on an understanding of the risks associated with calculating GHG emission information and the controls in place to mitigate these risks. Our examination included assessment, on a sample basis, of evidence relevant to the reporting of emission information.
Based on the data and information provided by UPS and the processes and procedures conducted, SGS concludes with reasonable assurance that:
- The GHG inventory methodology applied by UPS is sound, valid and based on best practice
- The estimated annual emissions are accurate, complete, consistent, transparent and free of material error or omission in relation to the requirements of the calculation methodologies employed
UPS provided the GHG assertion based on the requirements of ISO14064-1: 2006. The GHG information for the period 1st January 2012 to 31st December 2012 disclosing emissions of 21,518 thousand metric tonnes of CO2 equivalent are verified by SGS to a reasonable level of assurance, consistent with the agreed verification scope, objectives and criteria.
Emissions by scope are verified as follows:
Scope 1: 11,716 thousand tonnes of CO2e
Scope 2: 823 thousand tonnes of CO2e
Scope 3: 8,979 thousand tonnes of CO2e
In addition to the emissions reported above, UPS has included in its GHG assertion that it has partially offset its emissions through the purchase and retirement of voluntary carbon offsets of 43,575 tonnes of CO2 equivalent, SGS has also verified that these credits have been retired and are from projects adhering to international quality standards. This verification is outside the scope of the ISO 14064-1:2006 inventory.
On behalf of
SGS United Kingdom Limited
23rd May 2013