NetNada's Emission Analysis Methodology

01

Eligibility

Businesses can pursue certification for corporate entities, subsidiaries, or brands, but not individual products or services. Companies in certain restricted sectors are ineligible.

Non-brand entities like events or film projects may qualify under separate standards.

02

Measurement

a. Measurement Boundaries

For 2024 certification (2023 emissions), entities must track cradle-to-customer emissions for the full calendar year or overlapping fiscal year. Must include all products, services, and business activities. Coverage requirements include all Scope 1, all Scope 2, and 8 of 15 Scope 3 categories.

b. Data Requirements

For Scope 1 and 2, actual metered or billed data is encouraged over modelled estimates. Activity data is strongly advised for emissions comprising 5%+ of total footprint. For non-small companies, activity data is required for Scopes 1 and 2 beginning in the second certification year.

Activity data includes litres of fuel, kWh of electricity, kilometres by plane, kilograms of material — providing more accurate measurement than spend-based approaches alone.

c. GHG Measurement and Verification

Three pathways based on company size:

d. Third-Party Verification Requirements

All verification reports should follow five common principles of carbon footprint verification: relevance, completeness, consistency, transparency, and accuracy.

Verifications must conform to ISO 14064-3, ISAE3000, ISAE 3410, or Corporate GHG verification guidelines from ERT. Reports must specify limited or reasonable assurance level.

Third-party verifier qualifications:

• • Minimum five years corporate history in carbon accounting/lifecycle analysis
• • Minimum 25 documented client engagements
• • Minimum five years auditing corporate GHG footprints of companies over $100M annual revenue
• • Demonstrated independent control and ownership
• • Ability to act as unbiased third party
• • Minimum five years experience with one or more referenced verification standards

e. Renewable Energy Purchases for Scope 2

Renewable Energy Certificates (RECs) that are bundled or unbundled with energy purchases may be used to make 'market-based' adjustments to the total emissions from your electricity consumption.

Requirements: vintage years must be purchased within the certification year or one year prior (e.g., 2022 or later for 2023 emissions), and must be from the same grid subregion as electricity consumption.

f. Corrections to Measurement Reports

Errors or omissions exceeding the 5% materiality threshold require restatement. If restated emissions are lower, the company may bank surplus credits for future years. If higher, companies are encouraged to address shortfalls.

03

Reductions

a. Requirements for Reduction Action Plan

All certification-seeking organisations must develop a Reduction Action Plan. Minimum requirements include at least two initiatives reducing emissions within 12–24 months. For entities exceeding $5M revenue, at least one Scope 3 emissions measure is required. Annual progress reports are needed for recertification.

Science-Based Target Setting

Organisations over $100M revenue must establish a 2030 science-based reduction target covering all emissions. This can be a default 50% reduction from 2023 baseline, a Science-based Targets Initiative endorsed target, or a well-documented sector-specific science-aligned target.

Organisations under $100M revenue are strongly encouraged but not required to set 2030 targets.

b. Checkpoint Year Requirements

Note: Exact goal mismatches are excusable if pending reduction actions or alternative clear reduction plans are demonstrated.

04

Compensation and Offsets

Certifying entities are required to contribute to greenhouse gas mitigation projects at a level proportional to their measured emissions (all products, services, and operations) by making investments beyond the value chain.

Carbon credit criteria:

• • Third-party verification required (Gold Standard, Verified Carbon Standard, Climate Action Reserve, American Carbon Registry, European Biochar Certificate)
• • Vintage year restrictions: 2020–2023 for most credits; 2017–2023 for forestry/land-use
• • No project start date requirements if vintage year criteria are met

Credits must come from approved project categories. Companies are encouraged but not required to follow suggested allocation targets across their portfolio.

05

Disclosure

Certified companies must publicly disclose the following on the NetNada Brand Profile Directory:

1. Total annual GHG footprints by Scope 1, 2, and 3
2. Annual emissions intensity for recertifying entities; historical absolute emissions encouraged
3. Total annual investment in carbon credits and project types
4. Certified product or service categories
5. Reduction action plan summaries and science-aligned targets
6. Progress toward past reduction plans

06

Advocacy

Certified entities are strongly encouraged to engage in lobbying, education and stakeholder (e.g. customer, supplier, employee, consumer) mobilisation efforts in support of climate solutions.

Activities include:

1. Climate lobbying at any political level (direct or collaborative)
2. Internal climate literacy via NetNada Sustainability Academy and staff education
3. Consumer climate literacy engagement

Re-certifying companies must provide one example of label use in a digital or real-world setting.