Climate Change: Case Study

CLIENT: Aluminum Association of Canada

TASK: Greenhouse Gas Verification

LOCATION: Québec, Canada

In 2002, the Aluminum Association of Canada and the Government of Quebec signed a covenant to voluntarily reduce an additional 200,000 tons of greenhouse gas (GHG) emissions by the end of 2007. The government also signed individual agreements with three aluminum firms in the province - Alcan Inc., Alcoa Inc. and Aluminerie Alouette Inc.  The covenant proposes gradual, permanent reductions that allow for growth in the industry, and acknowledge the contribution to the collective effort to reduce greenhouse gas emissions.

As part of these individual agreements, each company was required to have its emissions inventory verified by a certified third-party auditor prior to submission to the government.  First Environment, along with its local partner Bureau de Normalisation du Quebec, was chosen by all three companies to complete these audits. First Environment conducted a detailed audit of each company, visiting a total of 15 sites in a period of two months.

As an initial step, First Environment's auditors developed an understanding of the systems used to calculate, aggregate and report GHG emissions data at the corporate level.  We then performed a top-level review of all of the GHG emissions data reported by the sites in Québec.  To ensure the completeness and accuracy of the data used to calculate GHG emissions, First Environment conducted visits to certain facilities and tested the controls and procedures used by site management. During each visit, the team conducted detailed testing by obtaining evidence supporting the amounts and disclosures in the GHG statement, testing the mathematical formulas used, testing the methodologies used to aggregate data, and assessing significant estimates made by management.

For the sites not visited, First Environment conducted desktop reviews of GHG data, based on an understanding of those sites’ operations and procedures.

To identify any issues that could impact the rollup of the company’s GHG emissions, First Environment correlated findings from the site audits and reviews with our knowledge of both the aluminum industry and the companies’ operations. The team tested the integrity and accuracy of the central level GHG emission data aggregation process.