Validation, verification and certification of CDM projects

CDM (Clean Development Mechanism)

CDM under Kyoto Protocol is a economic-flexible practice to enhance the projects with the different exercises aiming for reducing the greenhouse gas emission. The participant of the project intends to claim economic benefit through emission reduction realized under the project. The Designated Operational Entities (DOEs) are designated by United Nations Framework Convention on Climate Change (UNFCCC) who are expected to validate the design of the project, to verify the amount of emission reduction and to certify it in writing. KPMG AZSA Sustainability Co., Ltd. is one of the DOEs to render validation, verification and certification services to the participants of CDM projects. KPMG AZSA Sustainability Co., Ltd. helps the system of Kyoto Mechanism work and contributes mitigation of the climate change of the planet.

Quality Policy for Validation and Verification on Greenhouse Gas Emission

We recognize it to be a common issue to entire human beings on this planet, to mitigate the possible climate changes due to the increase of the greenhouse gas density. For this purpose, various organizations such as The United Nations, Japan Government and different municipal governments operate the economically flexible practices including emission trading system. We understand that it is our mission to contribute to the smooth and effective operations by rendering validation for emission reduction scheme, and verification for assertion of emission reduction by the project participants under the practices abovementioned. Hereby we decide the basic policies for the quality of our services, aiming to execute validation and verification services with sufficiently high quality, and to ensure that the practices abovementioned should work with sufficient effectiveness.

Basic Policies

1. We are committed to rendering our services with sufficient level of quality to properly respond to diversified requirements of our clients and society, to give good satisfaction and acquire the adherent trust from them.
2. We are committed to bringing our people of integrity and specialty by actively getting engaged, appraising and giving proper posts to our professionals, to establish a business group of specialties with high qualities.
3. We are committed to comprehending the significance of duty of privileged information which is one of the most basic codes of our professional ethics and never to disclose the secrets received through the engagements to others without reasonable grounds.
4. We are committed to maintaining the independence in mental attitude to conduct in fair, unbiased and independent manner, and to refrain from such relationship or appearance as may appear doubtful in our independency.

These quality policies are documented and disclosed to public on our website.

Ryuta Uozumi,
Chief Executive Officer,
KPMG AZSA Sustainability Co., Ltd.

Published on January 1st, 2011

Impartiality Policy

Impartial Business Operation and Appropriate Fee

KPMG AZSA Sustainability personnel (KPMG) always conduct themselves with impartiality and integrity as professional, and seek for appropriate fee accordingly.

Performance of Business Activity with Impartiality and Integrity

KPMG AZSA Sustainability personnel conduct themselves with integrity, objectivity and skepticism, being free of conflicts of interest and bringing to professional relationships an unbiased state of mind.

Prohibition against Conflicts of Interest

KPMG AZSA Sustainability personnel engage in business with paying attention to the existence of conflicts of interest.

Securement of Appropriate Fees

KPMG AZSA Sustainability seeks for appropriate fees in accordance with provided services.

Prohibition of Referral Fees, Contingent Fees, and Commission

KPMG AZSA Sustainability does not receive referral fees, contingent fees, and commission in order to obtain business.

List of CDM Projects

Currently no intended CDM projects are listed.

Project name	Host country	Project description	Period of comments

Appeals and Complaints

1. Response to Claims

1. Any claim will be received by us as such, if made in writing and supported by appropriate reasons, by a project participant or other parties concerned in relation to our validation activities or our verification and certification activities and within 30 days after occurrence of the reason for the claim.
2. We will designate a person who will clarify the relevance of the facts and propose a solution to be responsible for the said claim.
3. The claimant has the right to object to the person designated in the above paragraph.
4. Further procedures will be followed in accordance with our "Information Management Manual" (CDM-RU-IMM) and "Corrective and Preventive Actions Guidelines" (CDM-PR-CPA).

2. Response to Appeals

1. When any objection to a decision regarding the certification activities has been filed in writing and supported by appropriate reasons within 30 days after the occurrence of the reason for the objection by the project participants or other parties concerned, such objection shall be accepted by us as an appeal.
2. We will set up an Arbitration Board, which will clarify the relevance of the facts and propose a solution.
3. The appealer has the right to raise objections to constituent members of the arbitration conference.
4. Further procedures will be followed in accordance with our "Information Management Manual" and "Corrective and Preventive Actions Guidelines".

3. Secrecy Obligation

Our employees and technical specialists are under an obligation to keep secret the information of the project participants known to them in the course of the auditing and registration activities. They shall not disclose any information to any third party, unless approved in writing by the project participants in advance or required by law or by the appropriate administrative authorities.