1. Define Organisational and Operational Boundaries Clearly

One of the most common issues during GHG verification is inconsistent boundary setting.

Organisations must clearly determine:

• Which subsidiaries and operations are included in reporting
• Whether the reporting approach follows operational control or financial control principles
• How joint ventures and leased assets are treated
• Which facilities and business activities fall within the reporting boundary

Without clearly established boundaries, organisations risk double counting, omissions, and inconsistencies across reporting periods.

2. Strengthen Carbon Data Collection Systems

Reliable GHG reporting depends heavily on the quality, consistency, and traceability of activity data collected across operations.

Many organisations continue to rely on decentralised spreadsheets, manual calculations, and disconnected reporting processes. While this may be manageable at an early stage, it often creates significant challenges during GHG audits and verification exercises, particularly when organisations need to consolidate data across multiple facilities, departments, or subsidiaries.

Before undergoing a GHG audit, organisations should assess whether their carbon data management systems are:

• Standardised across departments
• Consistent across reporting periods
• Traceable to source documentation
• Subject to internal review and approval processes
• Properly documented and archived

Examples of supporting evidence commonly reviewed during verification include:

• Electricity and utility bills
• Fuel consumption records
• Refrigerant top-up logs
• Production and operational data
• Transport and logistics records
• Waste disposal records
• Supplier and procurement information

As assurance expectations under NSRF and IFRS S2 continue to increase, organisations should also consider digitalising their carbon data collection and management processes through dedicated ESG or carbon management software solutions.

Digitalised systems can help organisations:

• Improve data accuracy and consistency
• Reduce manual calculation errors
• Enhance data traceability and audit readiness
• Streamline multi-site data consolidation
• Monitor emissions performance more efficiently
• Strengthen internal governance and reporting controls

More importantly, digitalisation allows organisations to respond more efficiently to verification requests by ensuring supporting evidence and calculations are centrally managed and readily accessible.

Weak data traceability and fragmented documentation remain among the leading causes of delays and findings during GHG verification exercises. Organisations that invest early in structured and digitalised carbon data systems are generally better positioned to manage assurance requirements confidently and efficiently.

3. Improve Documentation and Methodology Governance

A common misconception is that accurate calculations alone are sufficient for audit readiness.

In reality, GHG verification also focuses heavily on the transparency and consistency of methodologies and assumptions used.

Organisations should maintain documented records for:

• Emission factors applied
• Calculation methodologies
• Data assumptions and estimations
• Changes in reporting methodologies
• Internal reviews and approvals
• Version control and reporting adjustments

Strong documentation practices improve transparency and reduce the likelihood of audit disputes or restatements.

4. Assess Scope 3 Emissions Readiness

Scope 3 emissions are becoming increasingly important under IFRS S2 and global supply chain expectations.

Unlike Scope 1 and Scope 2 emissions, Scope 3 emissions often involve complex value chain data that may require collaboration with suppliers, logistics providers, contractors, and customers.

Companies should begin by identifying material Scope 3 categories such as:

• Purchased goods and services
• Transportation and distribution
• Employee commuting
• Business travel
• Waste generated in operations
• Capital goods
• Use of sold products

Although many organisations are still at an early stage in Scope 3 reporting, early preparation allows businesses to gradually improve data quality and supplier engagement over time.

5. Establish Strong Internal Governance and Accountability

Carbon reporting is no longer solely a sustainability function. It increasingly requires integration across finance, operations, procurement, risk management, and internal audit functions.

Organisations preparing for GHG audits should establish:

• Clear roles and responsibilities
• Internal approval and review procedures
• Data ownership accountability
• Escalation processes for reporting issues
• Periodic internal verification checks

This governance structure is essential in supporting the reliability and consistency of climate-related disclosures under NSRF and IFRS S2.

6. Conduct a Pre-Assurance Gap Assessment

One of the most effective ways to prepare for a GHG audit is to conduct a structured pre-assurance review or gap assessment.

This helps organisations identify weaknesses before external verification begins, including:

• Data gaps and inconsistencies
• Weak internal controls
• Missing documentation
• Methodology issues
• Scope boundary concerns
• Assurance readiness risks

A proactive assessment significantly reduces the risk of delays, qualification findings, and reporting challenges during formal verification processes.