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The Clean Development Mechanism Executive Board (CDM EB) has temporarily suspended SGS’ accreditation for validation and verification of CDM projects. SGS submitted corrective actions in August and is committed to addressing the issues raised by the CDM EB and would expect that the temporary suspension will only impact a limited number of projects.

SGS was one of the first organisations to be accredited to perform validation/verification services under according to the CDM and has verified almost 50 % of the emission reductions issued worldwide under the CDM scheme.  SGS has always been, and remains, committed to ensuring the integrity of the CDM process.  Given the prompt reaction to the issues raised SGS were surprised that the CDM EB opted for such a harsh sanction as a temporary suspension.

The non-conformities mainly relate to how SGS documents the allocation of specific competencies to the projects and to adoption of emerging requirements in the new procedures. SGS has accepted that its procedures can be improved and has already implemented corrective actions for the majority of the issues raised.  SGS has not compromised on the skills required of its staff in the past and a more objective assessment method will only strengthen the team.

“We are committed to the re-instatement of our accreditation as quickly as possible. This will presumably take a few weeks to complete and is dependant upon the schedule of the CDM Executive Board, and the availability of their audit team,” says Michael Fahy, Head of Environmental Services.

In the meantime, the validation and verification project work for ongoing projects will continue as usual, except for the fact that no projects can be submitted for registration by the CDM Executive Board and SGS cannot request issuance of emission reduction certificates (CERs). This means that some of SGS customers may have to wait a few weeks longer than anticipated for the completion of their projects’ formal validation and verification procedures. SGS is not in a position to take on new projects as long as the suspension is valid.

“We are currently contacting our customers and explaining the situation to them and are doing our utmost to rectify matters as soon as possible,” says Michael Fahy.

Robert Dornau
VP Climate Change Programme
1, place des Alpes
CH - 1211 Geneva 1
t: +41 79 689 22 42

About SGS

The SGS Group is the global leader and innovator in inspection, verification, testing and certification services. Founded in 1878, SGS is recognized as the global benchmark in quality and integrity. With more than 55,000 employees, SGS operates a network of over 1,000 offices and laboratories around the world.