GHG Verification: Introduction to Supply Chain Emissions (Scope 1, 2, 3)

GHG Verification: Introduction to Supply Chain Emissions (Scope 1, 2, 3)

Certification Department, Kenichiro YAMAMOTO

1. BACKGROUND

“Climate change” refers to the phenomenon of long-term changes in the global climate. “Global warming”, which is one
factor in climate change, is the phenomenon of rising temperatures due to increased levels of greenhouse gases (hereinafter,
GHG, abbreviation: GHG1) in the atmosphere worldwide. It has been reported that global warming has a wide range of effects
on the planet as a whole, including the following:
1) Temperature rise: The average temperature of the planet is rising due to increasing levels of GHG, causing extreme
temperature changes and changes in weather patterns.
2) Melting of glaciers and rising sea levels: Glaciers and ice sheets are melting as a result of warming, contributing to rising
sea levels.
3) Extreme weather events: Extreme weather events such as heat waves, torrential rain, typhoons, etc. are increasing, causing
abnormal weather conditions that are impacting agricultural products and ecosystems.
4) Impacts on ecosystems: Ecosystems are changing due to warming, and decreased biodiversity and ecosystem collapse are
feared.
5) Impacts on agriculture and food supplies: Global warming also affects agricultural production, and reduced harvests and
destabilized food supplies may become problems.
Measurement and reporting of GHG emissions are the foundation for global warming countermeasures, and a number of
international standards and guidelines have been established. Understanding these makes it possible for companies and
organizations to reduce environmental loads and build the foundation for realizing a sustainable economy. This paper describes
the concrete standards and guidelines, focusing on the importance of GHG verification and evaluation of emissions in supply
chains.

2. INTERNATIONAL STANDARDS AND GUIDELINES FOR MEASUREMENT AND REPORTING OF

GHG EMISSIONS

A number of international standards and guidelines for measurement and reporting of GHG emissions exist, including the
following:
1) United Nations Framework Convention on Climate Change (UNFCCC) guidelines: Under the UNFCCC, each country is
required to report its own GHG emissions. The UNFCCC provides international guidelines on measurement, reporting and
verification of GHG, supporting reporting by each country based on a methodology with international consistency.
2) Greenhouse Gas Protocol (hereinafter, GHG Protocol): This is a standard for evaluating and reporting GHG emissions by
companies and organizations, and defines the concepts of Scope 1, Scope 2 and Scope 3.
3) ISO 14064: This is an international standard on measurement, reporting and verification of GHG, which provides
comprehensive guidelines for GHG measurement and reporting methods, data management and verification processes. ISO
14064 comprises the following parts.
① ISO 14064-1: Quantification and reporting of GHG – Provides methods for evaluation of GHG emissions by companies
(organizational level).
② ISO 14064-2: Quantification and reporting of GHG – Focuses on project-based efforts, providing methods for evaluating

Certification Department, Innovation Development Division, ClassNK

*1The revised UNFCCC reporting guidelines on annual inventories for Parties included in Annex I to the Convention (Decision
24/CP.19, Annex) specify seven types of greenhouse gases (GHG): carbon dioxide (CO2), methane (CH4), dinitrogen oxide (N2O),
hydrofluorocarbons (HFCs), perfluorocarbons (PFCs), sulfur hexafluoride (SF6) and nitrogen trifluoride (NF3).

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the effects of specific projects in reducing or removing GHG (project level).

③ ISO 14064-3: Quantification and reporting of GHG – Provides methods for verification and validation of GHG statements
and qualification of verifiers.
4) IASE 3410: An international standard established by the Institute of Internal Auditors (IIA) which focuses mainly on GHG
reports as part of assurance work for nonfinancial information by financial auditors. IASE 3410 secures the reliability of
environment-related data and reports, and contributes to enhancing the transparency of information related to sustainability.
These standards and guidelines have the following important roles in evaluations of environmental impacts by countries and
organizations and promotion of initiatives toward sustainability.
1) Enhancement of transparency and reliability: Measurement and reporting in accordance with these standards and guidelines
ensure the transparency and reliability of the emissions data of organization and companies, and allows stakeholders to make
judgments based on accurate information.
2) Possibility of comparison and evaluation: Data based on these guidelines makes it possible to compare and evaluate
emissions between different organizations, companies and industries, making it possible to promote efforts to achieve
sustainability and improvement of corporate performance.
3) Observance of regulations and risk management: Although regulations related to GHG emissions exist in many countries
and regions, data collection and reporting in accordance with these standards and guidelines supports observance of those
regulations and aids in reducing the risk of violations.
4) Sustainable management: Measurement and improvement of emissions by the reporting organization or company makes it
possible to carry out initiatives to reduce environmental impacts. This contributes to long-term management strategy and
improvement of brand value.
5) Response to requests by customers and consumers: With heightened concern about the environment, many customers and
consumers are interested in information about sustainability. Reporting based on these standards and guidelines is one means
of responding to their requests.
6) International cooperation and initiatives: Because these standards and guidelines are widely referenced internationally, they
can be used as common standards by different countries and regions, facilitating international cooperation and initiatives,
and thus have the potential to strengthen the response to global issues.
It can be said that measurement of GHG emissions using these standards and guidelines is an important step for evaluating
and improving environmental loads as part of the sustainability strategy of an organization or company. Which standard is
selected will depend on the purpose of the organization, industry, local regulations, available resources, etc. Large companies
and organizations may also use a combination of the elements of these standards. Regardless of which standard or guideline is
selected, proper understanding and use of the selected standard/guideline is essential, but in particular, this paper will explain
the GHG Protocol and the theoretical and practical methods for evaluating emissions in Scope 1, Scope 2 and Scope 3 in supply
chains.

3. OVERVIEW OF THE GHG PROTOCOL

The GHG Protocol Corporate Accounting and Reporting Standard (GHG Protocol) is an international framework for
measurement, reporting and verification (MRV) of GHG which was developed jointly by the World Resources Institute (WRI)
and the World Business Council for Sustainable Development (WBCSD) in 1998, and now is used by companies and
organizations when evaluating GHG emissions and establishing sustainable business strategies. The GHG Protocol is widely
accepted as an important tool for supporting evaluation and reduction of emissions as part of a sustainable management strategy,
and is mainly used by companies and organizations as a tool when evaluating their own GHG emissions and managing impacts
on the environment.
The GHG Protocol has the following distinctive features.
1) Coverage of emissions sources: The Protocol covers GHG emissions across all the activities of the reporting company,
including emissions from process and combustion of fuel, emissions in the process of generating electric power for use, and
other emissions related to the supply chain and life cycles of products.
2) Methods of calculating and reporting GHG emissions (GHG emissions accounting reporting methods): The Protocol

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provides methods for GHG emissions accounting reporting methods for each Scope. Companies are required to select the
proper methods for detailed measurement and reporting of the GHG emissions attributable to their own activities.
3) Response of companies to sustainability: The GHG Protocol supports the efforts of companies to develop sustainable
management strategies. Based on evaluations of the amount of GHG emissions, companies can implement countermeasures
such as energy-saving measures, introduction of renewable energy, etc., and can construct a sustainable business model that
reduces loads on the environment.
4) International standardization: Because the GHG Protocol is widely recognized as a common international framework, it is
used by companies and organizations in countries throughout the world. This facilitates evaluation and comparison of the
GHG emissions of different countries and regions.
By chapter, the content of the GHG Protocol is as follows.
Chapter 1 GHG Accounting and Reporting Principles Guidance on the principles of accounting and reporting of GHG
emissions.
Chapter 2 Business Goals and Inventory Design
Chapter 3 Setting Organizational Boundaries Guidance for setting organizational boundaries.
Chapter 4: Setting Operational Boundaries Guidance on setting operational boundaries.
Chapter 5: Accounting for GHG Reductions
Chapter 6: Tracking Emissions Over Time Guidance on setting temporal performance data.
Chapter 7: Identifying and Calculating GHG Emissions
Chapter 8: Managing Inventory Quality
Chapter 9: Reporting GHG Emissions Guidance and calculation and reporting of GHG emissions.
Chapter 10: Verification of GHG Emissions

4. CALCULATION OF GHG EMISSIONS BY THE GHG PROTOCOL

The GHG Protocol provides the classification of Scope 1, Scope 2 and Scope 3 for GHG emissions accounting.

Fig.1 Source: Ministry of the Environment materials, “Toward calculation and reduction of supply chain
emissions”.

1) Scope 1: Direct emissions = Direct emissions of GHG by the reporting company (fuel combustion, industrial processes)
Scope 1 means GHG emissions attributable to the direct activities of the reporting company. Concretely, emissions of the
following GHG are included:
① Combustion of fuels: GHG emissions generated when using fuels owned by the company. For example, emissions from
gasoline- and diesel-fueled vehicles and combustion in gas boilers are included.
② Emissions from processes: GHG emissions generated by the manufacturing processes or industrial processes of a company.
As examples, this includes the production of cement and steel.
③ Leaks: GHG emissions generated unintentionally by activities of the reporting company. As examples, this includes leaks
of cooling liquids and methane gas.
Scope 1 GHG emissions are emissions that can be controlled directly by the reporting company itself, and can be reduced by

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optimization of fuel use and manufacturing processes, etc.

2) Scope 2: Indirect emissions = Indirect emissions accompanying the use of electricity, heat and steam supplied from another
company.
Scope 2 refers to GHG emissions indirectly related to the activities of the reporting company, and mainly includes GHG
emissions due to consumption of electric power and the use of heat or steam.
3) Scope 3: Other indirect emissions = Indirect emissions other than Scope 1 and Scope 2 (emissions by other companies
related to the activities of the company)
Scope 3 indicates other GHG emissions indirectly related to the activities of the reporting company, and includes the
company’s supply chain and the life cycles of sold products. Since direct control of Scope 3 GHG emissions by the company
itself is difficult, the cooperation of supply chain companies, the effect on customers, etc. is considered. However, reductions
are possible by improvement of supply chain management and manufacturing processes, etc. Concretely, Scope 3 includes the
following three types of emissions, which are further classified in 15 categories:
① Purchases from suppliers: GHG emissions when the company purchases raw materials or products.
② Use of sold products: GHG emissions generated when consumers use products manufactured by the company. For example,
this includes emissions associated with office supplies and various types of purchased services.
③ Waste treatment: GHG emissions generated when the treatment of wastes is consigned to an outside contractor.

15 Categories in Scope 3
Scope 3 categories Corresponding activities (examples)
1 Purchased good and services Purchases of raw materials, outsourcing of packaging, purchases of consumables.
Increases in production equipment (in the case of equipment constructed or manufactured
2 Capital goods over multiple years, reported in the final year when construction/manufacture is
completed).
Upstream processes (extraction, refining, etc. of purchased fuels.
Fuel- and energy-related activities
3 Upstream processes (extraction, refining, etc. of fuels used in power generation) of
not included in Scope 1 or Scope 2
purchased electric power.
Inbound logistics purchased by the reporting company, transportation and distribution
Transportation and distribution
4 between the company’s own facilities, outbound logistics (where the company is the
(upstream)
owner).
Transportation and treatment of waste by outside contractors (excluding waste
5 Waste generated in operations
having value, i.e., recyclable content).
6 Business travel Business travel by employees.
7 Employee commuting Commuting by employees.
Operation of leased assets leased by company. (Because these are reported in Scope
8 Leased assets (upstream) 1 and Scope 2 in the accounting, reporting and disclosure system, most leased assets
do not fall under this category.)
Transportation and distribution Shipping transportation (transportation after the company is the owner), storage in
9
(downstream) warehouses, retail sales.
10 Processing of sold products Processing of intermediate products by downstream companies.
11 Use of sold products Use of products by users.
End-of-life treatment of sold
12 Transportation and treatment of products upon disposal by users.
products
Operation of leased assets owned by the company as lessor and leased by other
13 Leased assets (downstream)
entities.
Operation of franchise system members supervised by the reporting company falling
14 Franchises
under Scope 1 or 2.
15 Investments Operation of investments, including equity and debt investments and project finance.
Others (optional) Daily lives of employees and consumers.

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Source: Ministry of the Environment materials, “Toward accounting and reduction of supply chain emissions”.

5. SUPPLY CHAIN GHG EMISSIONS ACCOUNTING PROCEDURE

The procedure for evaluation of supply chain GHG emissions includes data collection and measurement, the methodology of
GHG emissions calculations, and consideration of uncertainties. The following explains the details of these respective items.
1) Data collection and measurement
The amount of GHG emissions generated by various activities in the supply chain is quantified by data collection and
measurement. The main procedure is as follows.
① Determination of the scope: First, decide the target scope for evaluation (Scope 1, Scope 2 or Scope 3). It is important to
clarify which scope applies to activities in the supply chain.
② Establishment of a data collection plan: Understand the activities in the supply chain, and plan the range and frequency of
data collection. In some cases, cooperation with suppliers and cooperating companies involved in the supply chain may be
necessary.
③ Data collection: Based on the data collection plan, collect data on the amounts of energy use, fuel use, purchased raw
materials, etc. These data are necessary in evaluations of the amount of GHG emissions attributable to each activity in the
supply chain.
④ Improvement of measurement accuracy: It is important to collect data that are as accurate as possible. Therefore, efforts to
improve the reliability of measurements are necessary, for example, by improving the accuracy of measuring equipment,
etc.
2) Calculation of emissions
In calculating supply chain GHG emissions, the appropriate calculation methodology for each scope is to be used. The
following is a simple explanation of the measurement methodologies for each scope.
① Scope 1 (direct emissions)
- 1. Collect the types and consumption of fuels used (petroleum, natural gas, etc.) = Amount of activity, and the GHG emissions
generated by designated processes = Amount of activity
- 2. Confirm the emission factors (emissions unit values) of the GHG generated by combustion of each fuel.
- 3. Volume of greenhouse gas emission (t-CO2e) = Amount of activity x Emission unit value (emissions per unit of activity).
② Scope 2 (energy-derived indirect emissions)
- 1. Amount of use of energy such as purchased electricity, steam, HVAC, etc. = Amount of activity
- 2. Confirm the emissions unit value corresponding to each type of energy used.
- 3. Volume of greenhouse gas emission (t-CO2e) = Amount of activity x Emission unit value.
③ Scope 3 (other indirect emissions)
Although Scope 3 is divided into 15 respective categories, there are two accounting methods for the emissions of each category,
as shown in - 1. and - 2. below. Examples of calculation are shown in - 3.
- 1. Submission of emission data by the related trading partners (method using primary data).
- 2. Reporting by trading partners in the form of “Total emissions (** tons) in production for the reporting company in fiscal
year @@”. This method uses the calculation formula “Emissions = Amount of activity x Emission unit value”.
• The reporting company collects the amount of activity.
• The emission unit values are obtained from an external database or provided by the trading partner.
- 3. Examples of calculation
• Calculation of emissions related to raw material purchases (Scope 3, Category 1)
- Collect the amounts of raw materials and parts necessary in production of products.
- Confirm the emission unit value related to the production of each raw material and part, and calculate the volume of GHG
emissions by multiplying the amounts purchased by the emission unit value.
• Calculation of emissions related to product transportation (Category 4)
- Collect the product transportation distances and the means of transportation (truck, ship, airplane, etc.)
- Confirm the emission unit value corresponding to each transportation distance and means of transportation, and calculate

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the volume of GHG emissions by multiplying the transportation volumes by the emission unit value.
• Calculation of emissions related to employee commuting and business travel (Category 6, 7)
- Collect the distance and means of employee commuting and business travel.
- Confirm the emission unit value based on the distance and means of transportation, and calculate the volume of GHG
emissions by multiplying the amounts of commuting by the emission unit value.
• Calculation of emissions related to waste treatment (Categories 5, 12)
- Collect the types of waste and their treatment methods (disposal, recycling, incineration, etc.), confirm the emissions unit
values for each treatment method, and calculate the GHG emissions by multiplying the volumes of each type of waste by
the emission unit value.
*Please refer to the guidance provided by the Ministry of the Environment, etc.
https://www.env.go.jp/earth/ondnaka/supply_chain/gvc/estimate.html
3) Consideration of uncertainties
In evaluating supply chain GHG emissions, it is important to consider the uncertainties accompanying measurement and data
collection. As a method for understanding the effects of data uncertainty on evaluations of emissions and obtaining highly-
reliable results, the following points are to be considered.
① Evaluation of uncertainties: Evaluate the uncertainties accompanying data collection and measurement.
② Effects of uncertainties: Corrections may be made considering the effect of data uncertainty on the amount of emissions.
Corrections are to be made based on a statistical technique that takes uncertainty into account.
③ Reporting of uncertainties: The results of evaluations of uncertainties are to be reported appropriately in the report of GHG
emissions. As a result, the reliability of the evaluation results can be shown clearly.
Evaluation of supply chain GHG emissions is a complex process, and proper data collection and measurement, use of the
GHG emissions calculation methodology, and consideration of uncertainties are indispensable for obtaining accurate evaluation
results.

6. SIGNIFICANCE OF THIRD-PARTY VERIFICATION OF GHG EMISSIONS ACCOUNTING REPORTS

Greenhouse gas emissions accounting reports are a method for quantitatively evaluating the GHG emissions generated by the
reporting organizations and companies. Third-party verification plays an extremely important role in ensuring the reliability and
accuracy of GHG emissions accounting reports. The following explains the significance of third-party verification in GHG
emissions accounting reporting.
1) Enhancement of reliability and transparency
Third-party verification is a means of confirming that GHG emissions accounting reports are reliable. The accuracy and
transparency of the information is enhanced by verification by an independent third-party verification organization. This
increases trust in the content and methodology of GHG emissions accounting reports, and means that stakeholders can accept
information on the organization’s environmental performance with greater confidence.
2) Compliance with legal requirements and regulations
In some countries and regions, GHG reporting is required based on specific regulations and legal requirements. Third-party
verification plays a crucial role in satisfying these requirements. GHG emissions accounting reports that have received third-
party verification have legal credibility and support compliance with regulations.
3) Improvement of internal management
Third-party verifications also provide insights into the processes and data management methods of an organization. The
verification process highlights points that require improvement in the methods of preparing GHG inventories and the reliability
of data collection, and makes it possible for the reporting organization to obtain information for improving its own environmental
management process.
4) Strengthening of external reporting
The GHG inventory is the basis for reporting to external stakeholders such as investors, customers, suppliers, etc. A GHG
emissions accounting report that has received third-party verification can provide information, which has been verified by
independent experts, to these stakeholders. This heightens the reliability and transparency of the reporting organization and

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strengthens external communications.

The third-party verification is an indispensable element for improving the reliability and value of the GHG inventory. By
including third-party verifications in the process of evaluating the environmental impacts of an organization and promoting
improvement measures, it becomes possible to realize more effective sustainability.

7. USE OF GHG EMISSIONS ACCOUNTING REPORTS AND DATA

The important points for the use of GHG emissions accounting reports and data are understanding the results of evaluations
of GHG emissions, reporting and transparency of the results, and formulation and improvement of a GHG reduction strategy.
1) Understanding the amount of GHG emissions
An understanding of a company or organization’s GHG emissions is an important source of information for understanding
its efforts for sustainability and impacts on the environment.
① Comparison with the previous fiscal year: Trends in GHG emissions and the progress of improvement efforts can be
understood by comparison with past results.
② Industry benchmarks: The reporting company’s own performance can be evaluated by comparison with other companies in
the same industry and the average of the industry as a whole.
③ Importance of GHG Protocol scopes: It is possible to understand the importance and effects of emissions in each of the
categories of Scope 1, Scope 2 and Scope 3.
④ Risks and opportunities: An understanding of the amount of GHG emissions is also useful for identifying the risks of
climate change and the opportunities of a sustainable business model.
2) Reporting and transparency of results
In GHG emissions accounting reports, sharing with internal and external stakeholders is important. Transparent reports not
only enhance the trust of a company, but can also be an important means of communicating the company’s initiatives for
sustainability.
① GHG emissions accounting reports: Measurement methods, evaluation of uncertainties, the status of progress of initiatives,
etc. are included in GHG emissions accounting reports.
② External reporting: GHG emissions accounting reports can be used in external reporting through the company’s CSR Report,
Sustainability Reports, official website etc.
③ Guidelines for sustainability reports: Transparency is secured by reporting based on international sustainability reporting
guidelines (e.g., Global Reporting Initiative (GRI) Guidance).
3) Formulation and improvement of GHG reduction strategy
The company’s GHG reduction strategy is formulated and improved based on its GHG emissions accounting reports. This
makes it possible to reduce GHG emissions and promote efforts for sustainable business.
① Setting of GHG reduction targets: Based on the results of the GHG emissions accounting report, appropriate GHG emissions
reduction targets are set, taking into account setting of concrete, measurable, realistic and planned targets.
② Construction of the GHG reduction strategy: Strategies such as countermeasures for activities with large GHG emissions,
introduction of renewable energy and improvement of energy efficiency are established.
③ Continuous improvement: After the GHG strategy is implemented, periodical verification and improvement are carried out.
It is important to grasp the results achieved and the issues to be addressed in order to continuously promote improvement of
the strategy.
Use of GHG emissions accounting report data plays an important role in giving concrete form to the sustainability efforts of
a company or organization. It is thought that transparent reporting and formulation/improvement of a GHG reduction strategy
can contribute to a more sustainable management strategy.

8. ISSUES IN GHG EMISSIONS ACCOUNTING REPORTING AND THEIR SOLUTIONS

Various issues exist in GHG emissions accounting reporting. The following describes the respective issues and possible
solutions.

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1) Data availability and quality

• Issue: In GHG emissions accounting reports, a large volume of data is necessary, but there are cases where data is difficult
to obtain or the quality of the data is inadequate. In particular, collection of information on the supply chain is sometimes difficult.
• Solutions:
- To improve collection of supply chain data, it is important to strengthen cooperation with suppliers and build a consensus
on the provision of data.
- Efficient data collection can be realized by utilizing technologies that automate the data collection process.
- To improve the reliability of data, introduce proofreading and verification processes to secure data quality.
2) Issues related to methodology and standardization
• Issue: GHG emissions accounting reporting is a complex process, and differences in methodology and a lack of standards
can be problems. There is a possibility that calculation results may differ due to the use of different methods and standards.
• Solutions:
- Unify calculation methods by introducing an international standard such as the GHG Protocol or ISO 14064-1.
- With the cooperation of industry groups and experts, formulate a standard methodology and establish common industry-
wide standards.
- Describing the adopted methodology and calculation methods in a report, while maintaining transparency, will enable
comparisons with the evaluations of others.
3) Communication with stakeholders
• Issue: In some cases, communications with stakeholders regarding the results of GHG emissions accounting reports and the
company’s initiatives for sustainability are inadequate. Transparency and dialogue are important for responding to the
expectations of stakeholders.
• Solutions:
- Make GHG reports and CSR reports publicly available, and share the results of GHG emissions evaluations with
stakeholders.
- Give priority to regular dialogues with stakeholders, collect stakeholder feedback, and use that feedback to improve the
company’s sustainability strategy.
- Build a relationship of trust by implementing concrete countermeasures for important problems in line with the concerns
and expectations of stakeholders.
Action on these issues is extremely important for ensuring the reliability of GHG emissions accounting reports and realizing
a sustainable business strategy. Through improvement of data quality, promotion of standardization and transparent
communications with stakeholders, companies can establish more sustainable business models.

9. OUTLOOK FOR THE FUTURE

1) Evolution of technology and improvement of data accuracy: In data collection and measurement, introduction of new
technologies and improvement of data accuracy are expected. This is expected to improve the reliability of GHG emissions
accounting reports and contribute to improved sustainability of supply chains.
2) Promotion of global standardization: Unification of methodologies for GHG emissions accounting reporting are expected
as a result of progress in promoting international standardization. This is expected to facilitate comparisons between
companies and improve evaluations of sustainability.
3) Strengthening of cooperation with stakeholders: It is important to strengthen communications with stakeholders, and to
promote GHG emissions accounting reporting and practice of the company’s sustainable business strategy based on the
wishes of stakeholders.
4) Strengthening of partnership with suppliers: In improvement of the sustainability of supply chains, strengthening of
cooperation and collaboration with suppliers is necessary. Joint promotion of sustainable business models by companies and
their suppliers will enhance the possibility of realizing sustainability.
ClassNK (the Society) is involved in a large number of certification projects for GHG emissions accounting reporting, but
remarkable expansion can also be seen in certification projects and the number of examinations derived from those efforts,

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including emissions accounting in the logistics sector, beginning with marine and air transport and also including land
transportation, emissions offsetting using credits, green steel utilizing the mass balance method for steel makers, the SHIFT
Project sponsored by the Ministry of the Environment, and the J-Credit Scheme, among others. The Society will continue to
work to provide a diverse range of certification services responding to market demand, while also maintaining a high level of
quality.

REFERENCES

Website of Ministry of the Environment, Japan, Global Warming Countermeasures.

ISO 14064 Series.
Materials of the Greenhouse Gas Protocol Accounting and Reporting Standard

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