Validation and Verification Process

AUDIT PROCESS  

1. Pre-engagement 

   1. Pre-selection. The ERS Secretariat pre-selects VVBs to perform Validation or Verification and provides them with the Project summary, type of engagement, and scope.
   2. Pre-agreement. The VVB must review the information provided. Following such review, the VVB must either accept or decline and provide a provisional team composition.
   3. The final VVB selection is made by ERS based on the following criteria:
      1. Availability on the mentioned time frame;
      2. Audit Team knowledge and skills, based on auditors’ CVs, with a focus on local knowledge (including language proficiency and experience with comparable projects);
      3. Day rates of the Audit Team members;
      4. Previous Performance Evaluation(s).

2. Planning and Engagement 

   1. Upon the ERS Secretariat's selection of the VVB, the Project Mandate is used to initiate engagement between ERS and the chosen VVB for Validation or Verification. 
      1. The Project Mandate acts as a contract and a detailed outline of the Validation or Verification process.
      2. ERS must pre-fill:
         • Project details: Name, ID, Project Design Document, Risk Matrix, Developer Due Diligence;
         • Validation details: Context, Objective, Engagement Type, Scope, Level of Assurance;
         • References: Programme version, Methodology version, Validation & Verification Procedure version.
      3. The VVB must complete:
         • The Strategic Analysis as defined by ISO 14064-3;
         • The Risk Assessment as defined by ISO 14064-3;
         • The team composition, along with the Validation/Verification Fees;
         • Evidence-gathering activities;
         • If applicable, detailed information on site visits, including a description of the activities, costs, material and preliminary schedule or timeline;
         • The general Safeguards Declaration section.
      4. Upon reception of the Project Mandate, the VVB must complete it within twenty (20) business days.
   2. In addition, each member of the VVB team selected for the Validation or Verification must disclose all real and potential conflicts of interest, including significant transactions or relationships that might cause a conflict, via the Declaration of Interest form.

3. Validation/Verification Execution

   1. The VVB must perform the Validation/Verification activities as per the Audit Plan mentioned in the Project Mandate. 
      1. The VVB can revise the Audit Plan during the Validation/Verification execution if necessary. 
      2. Any revisions to the Validation/Verification plan must be documented internally, including the reasons for the changes, and communicated to the ERS Secretariat.

4. Completion

   1. Upon executing the Validation/Verification, the VVB is responsible for completing the Validation/Verification Report and sharing it with both the ERS Secretariat and the Developer. The report must include:
      1. The Validation/Verification process, including details on the audit team, the methods employed and the evidence-gathering activities. 
      2. The list of findings, including photographs, data summaries, or any other supporting evidence.
      3. A list of all observed non-compliances outlining the steps to be taken and the expected outcomes of the corrective actions. Recommendations associated with non-compliance are categorised as follows:
         • Corrective Action Request (CAR). The VVB considers that the applicable ERS requirements still need to be met. Any CAR must be addressed before issuing a Validation/Verification decision. 
         • Clarification Request (CL). The VVB considers that the information is insufficient or not clear enough to determine if the ERS requirements have been met. Any CL must be addressed before issuing a Validation/Verification decision.
         • Forward Action Request (FAR). The VVB expresses the need to execute an action that, while not mandatory, is considered essential for compliance in future audits. 
         • Project Termination. The VVB finds evidence that the Project violates one or more “blocker risks” or safeguards. In such cases, ERS reserves the right to reject or withdraw certified status. Refer to Project Failure in the ERS Programme for more details. 
      4. The VVB’s conclusion and a first opinion (unmodified, modified, adverse).

5. Corrective Action Plan 

   1. Upon receiving the Validation/Verification Report, the Developer must provide a Corrective Action Plan within fifteen (15) business days to tackle the issue(s) raised by the VVB. The plan must also establish a system for monitoring its implementation.
      1. Approval. If the VVB deems the Corrective Action Plan sufficient to clear all CARs and CLs, the Report can be sent for Review.
      2. Rejection. If the VVB deems the Corrective Action Plan insufficient to clear all CARs and CLs, the Developer must submit an updated Plan integrating the VVB's feedback and modify it until it is validated by the VVB. 
         • The Developer must submit the revised Corrective Action Plan within fifteen (15) business days.
         • The Developer must submit as many Corrective Action Plans as necessary until obtaining the VVB’s Validation/Verification.

6. Independent Review 

   1. The VVB must send the drafted Validation/Verification Report to reviewers. 
      1. Reviewers are individuals appointed by the VVB who were not involved in the validation or verification process and must cross-check the initial conclusions and statements.
      2. Reviewers can ask for clarifications at any point. 
   2. The Independent Review must confirm that: 
      1. Validation/Verification activities have been completed per the agreement and the Validation/Verification Procedure. 
      2. Evidence to support the decision is sufficient and appropriate. 
      3. Significant findings have been identified, resolved, and documented.

7. Final Opinion 

   1. Upon completing the Validation/Verification review, the VVB must issue its final opinion to confirm the claims or to suspend the Project’s activities (unmodified, modified, adverse).
      1. If Validation/Verification is successful, the Project documentation, along with the Validation/Verification Report, is published on the ERS Registry, and Restoration Units can be issued as defined by the Registry Procedures. 
      2. If Validation/Verification is unsuccessful, the Project’s status is updated on the ERS Registry, and the issuance of Restoration Units is halted as defined by the Registry Procedures. 

8. Handling of appeals & complaints

   1. VVBs must have a documented process to receive, evaluate and make decisions on appeals & resolve complaints.
   2. VVBs must update the Validation/Verification Report in case changes and new discoveries happen after the report publication. The new version of the Report must be published on the ERS Registry.