1. CLIMATE PROGRAMME
CHANGE
BECAUSE GREENHOUSE GAS EMISSIONS MATTER

2. GREENHOUSE
GAS EMISSIONS
MATTER TO US
AND OUR FUTURE.
THAT’S WHY WE CARE

3. THE SGS CLIMATE CHANGE
PROGRAMME offers a range of
services addressing the growing need
for mandatory and voluntary reporting of
greenhouse gas emissions. We aim to
facilitate trade in greenhouse gas (GHG)
emissions and promote harmonization
through application of standardized
verification procedures. Whether you
are in the EU Emission Trading Scheme
(ETS), opt out of the EU ETS, have a
Joint Implementation (JI) or Clean
Development Mechanism (CDM) project
or simply want to voluntarily report, we
have the service for you.
Your GHG emissions and emission
reductions matter to us - and our future.
That's why we are committed to
YOUR COMPANY, YOUR
ensuring they are reported in a
complete, consistent, transparent,
accurate and faithful manner.
SHAREHOLDERS AND YOUR
We validate projects to ensure they STAKEHOLDERS NEED TO BE
comply with the relevant eligibility
criteria.
SURE THAT THESE DATA ARE
We verify emissions to determine
compliance with mandatory emission
limits and for voluntary reporting.
RELIABLE. YOU CAN TRUST SGS.
And we certify emission reductions.

4. We hold multiple accreditations and are
continuously expanding these. Currently
we are accredited for CDM, EU ETS, UK
ETS, California Climate Action Registry
(CCAR), Chicago Climate Exchange
(CCX) and Clean Air Canada.
We employ competent, trained staff
and sub-contractors.
We have offices in over 1,000 locations
in 140 countries. We have one close to
your project or your facility.
We offer services to all kinds of clients
– ranging from the smallest through to
the largest multi-site / multi-country
emitters, and from simple through to
complex and diverse project portfolios.
All of our services share one
indisputable benefit – they are backed
by the SGS brand name.
WHATEVER YOUR NEEDS,
SGS OFFERS YOU
AN OPINION
YOU CAN DEPEND ON

5. EU EMISSION
EU ETS requires annual reporting of
emissions data and regulatory compliance.
To meet the tight deadlines associated
with EU ETS across the EU 25, we offer
a split verification process. Every year,
TRADING in Q3/Q4 we will undertake the strategic
analysis and risk analysis (see Annex 5
of the EU ETS Directive,
http://europa.eu.int/comm/environment/
SCHEME climat/emission/ implementation_en.htm
in order to establish compliance with
the approved monitoring plan. We will
also identify opportunities for improvement
and review available data. The following
Q1, we will complete the verification,
usually by desk review. This is particularly
important in 2005 when issues are
most likely to arise.
ACCREDITATION
We are committed to offering verification
SPLIT VERIFICATION TO services throughout the EU. SGS Affiliates
throughout the EU 25 are either gaining
local accreditation or planning to use
MEET DEMANDING existing accreditations issued by other
EA Member Accreditation Bodies and
recognized under the EA Multilateral
DEADLINES Agreement (www.european-
accreditation.org).
With offices and EU ETS trained staff in
all of the EU 25 counties, you can be
assured of a locally based service with
local language capability and a knowledge
of local legislation and EU ETS reporting
requirements.
Whether large or small, single or multi-
facility, you can rely on SGS.
WHY CHOOSE THE SPLIT VERIFICATION PROCESS?
Early check on your internal system
Interim data to aid market related
decisions (buy, sell, wait)
Time to raise and resolve issues
with the Competent Authority (CA)
Earlier warning of opportunities for
improvement

6. VALIDATION
To protect the environmental and
financial integrity of the CDM and JI, we
are accredited to offer rigorous validation
services designed to ensure that projects
generate real, long term emission
AND reductions.
Validation involves a desk study and
international stakeholder consultation
VERIFICATION followed by confirmation of key data
and assumptions in the host country.
We use our network to source local
assessors with knowledge of local
OF CDM AND language, common practice, customs
and the prevailing policy and legislative
environment.
JI PROJECTS
CDM rules require that a different
Designated Operational Entity (DOE)
performs the services of validation and
verification, with the exception of Small
Scale CDM projects where the same
DOE can act in both roles.
IF YOU DIDN’T CHOOSE SGS TO
VALIDATE YOUR PROJECT...
Design of project activity; Submission of
Project Design Document to DOE
VALIDATION PROCESS
DOE: Checks validation requirement
NEW METHODOLOGY
APPROVED
METHODOLOGY
EB: To consider new
methodology
If approved, DOE:
EB
Finalises validation
YES
REGISTRATION PROCESS
Request for review within 8 weeks
NO
EB: Conduct and conclude review
within two meetings
CDM project Project activity rejected,
activity registed possibly to start process again

7. Verification involves repeated visits to
the project to verify the implementation
of the monitoring plan and verification and
certification of emission reductions (ERs).
Turning Emission Reductions into CASH
We believe that we can realistically
offer cost effective verification and
certification of ERs on a monthly or
quarterly basis, turning an annual yield
of Certified Emission Reductions (CERs)
into a regular cash flow. With over
1,000 offices in 140 countries, more
often than not we will be closer to your
project than anyone else.
Verification experience reduces risk
We know you have worked long and
hard and invested heavily to get this far.
We have extensive experience of
verification from the UK ETS, EU ETS,
CCAR, voluntary projects and other
schemes. Don’t risk any further delay or
problems. Choose a partner with a
proven track record.
...SGS IS YOUR NATURAL
PARTNER FOR VERIFICATION
AND CERTIFICATION OF CDM
AND JI PROJECTS
AND THE
FIRST TIME
YOU CROSS
THE LINE,
YOU’LL
DESERVE A
CELEBRATION!

8. CALIFORNIA CLIMATE
ACTION REGISTRY
The California Climate Action Registry
(CCAR and www.climateregistry.org) is
a non-trading register where participants
are invited to register certified (verified)
GHG emissions. Two reasons to do so
are to create an authoritative record of
an entity’s historic emissions and gain
experience in reporting. Companies can
WWW.CLIMATEREGISTERY.ORG
then make better informed decisions
about abatement options and will be
better able to understand the implications
of California’s legislative regime.
SGS North America Inc. is an accredited
certifier to the CCAR. We apply the
same principles and procedures to
verification in California as we do in the
EU ETS, UK ETS and CDM.
Consequently, we firmly believe that we
are bringing best practice to verification
in the US and we will continue this
practice as we expand our services into
other schemes and initiatives
throughout the US.
CCAR is also developing project
protocols to include forestry and SGS
will be providing certification services to
these activities as well.

9. VOLUNTARY ACTIVITIES
AND OTHER SCHEMES
SGS validates and verifies emissions
reductions from voluntary projects that
are scientifically credible but fail to meet
compliance criteria – usually for political
reasons. For example, the host country
has not ratified the Kyoto Protocol or
the project started before 2000. The
projects must be additional to business
as usual activities, account for leakage,
minimize negative environmental and
social impacts and have infrastructure
and resources that will demonstrate
that emissions have been avoided.
VOLUNTARY PROJECT DEVELOPERS CHOOSE
SGS BECAUSE OF OUR BRAND NAME.
SGS verifies voluntary GHG inventories
that can be used for public or internal
reporting, cost management and
demonstrating to shareholders and
regulators that senior management is
aware of the potential impact of a
carbon constrained economy on the
future of your business.
SGS is active in a range of other voluntary
schemes such as CCX and Canada
Clean Air where third party verification is
required. As new schemes and initiatives
develop and the demand for reliable
third party involvement materializes, we
will invest in gaining accreditation to
offer highly credible services.
The SGS Climate Change Programme
offsets emissions from corporate
funded air travel by purchasing carbon
offsets from CLIPP www.clipp.org

10. WHY ARE DATA AND
COMPLIANCE SO
IMPORTANT?
GHG emission trading is a market-based
regulatory instrument. Rights to emit
GHGs are an asset and the emissions
are a liability. Consequently, significant
and sometimes substantial sums of
money will need to be passed through
company accounts, with impacts upon
financial performance. Accurate and
reliable data is needed to make
management decisions. Chief financial
officers and financial accountants will
need to be confident that the data are
correct before annual accounts can be
signed off. Getting the data wrong
could have unpleasant consequences.
Mandatory Emission Trading Schemes
also have compliance requirements.
Failure to comply could result in a range
of penalties, culminating in criminal
charges for directors.
GREENHOUSE GAS
EMISSIONS
MATTER
TO US ALL.
TAKE THEM
SERIOUSLY.

11. CONTACT US:
SGS is the world’s leading inspection,
verification, testing and certification
company. SGS is recognized as the
global benchmark for quality and
integrity. With 42,000 employees, SGS
operates a network of about 1,000
offices and laboratories around the
world. Our aim is to be the clear global
leader and innovator in inspection,
verification, testing and certification
services, building upon our brand,
integrity, unique network and the
excellence of our people.
www.climatechange.sgs.com
climatechange@sgs.com

12. WWW.SGS.COM
© 09 - 2005 - SGS SA - All rights reserved