PCS SG Safeguards Instructions Annex_v1.0

Document Control

• Document code: PCS-SG

• Title: Safeguards Instructions Annex

• Scope: Companion guidance to PCS safeguard and SDG forms; provides instructions for screening, scoring, evidence collection, corrective actions, grievance documentation, and VVB verification expectations.

• Outcome: Ensures consistent application of safeguards and SDG integrity requirements across project types and monitoring cycles.

Version history and change log

Table DC-1. Revision history

Version	Date	Status	Summary of changes	Prepared by	Approved by
v1.0	TBD	Draft	Release for public consultation	PCS	TBD

Superseded versions

No superseded versions for v1.0.

Governance note on versioning and archiving: Only the latest approved version of this Annex shall be used. Superseded versions shall be archived and retained for traceability and audit purposes. Printed or downloaded copies are uncontrolled; the PCS published version is the authoritative current version.

Purpose

This Safeguards Instructions Annex provides guidance for applying environmental and social safeguards, and assessing Sustainable Development Goal (SDG) contributions under the Planetary Carbon Standard (PCS). It is aligned with PCS Framework v2.0 Section 12 and relevant international standards.

Section A – Purpose and Scope

This Annex accompanies the PCS Environmental & Social Safeguards Form and the PCS SDG Impact Assessment Form. It provides detailed instructions on safeguard screening, scoring, evidence collection, and corrective actions. All PCS projects—Regular (Type A/B) and NBS (Type C)—must comply with these principles as part of registration, validation, and issuance cycles.

Section B – Environmental and Social Safeguard Principles

The PCS safeguard framework includes 15 principles adapted from IFC Performance Standards, and UNFCCC requirements:

Code	Safeguard Principle
E1	No harm to biodiversity and ecosystem services
E2	Protection and sustainable use of water resources
E3	Soil conservation and sustainable land management
E4	Pollution prevention and waste management
E5	Climate resilience and adaptation integration
E6	Land-use planning and ecosystem integrity
E7	Natural disaster and risk reduction considerations
E8	Compliance with host country environmental legislation
S1	Respect for human rights and equity
S2	Community health, safety, and security assurance
S3	Protection of indigenous peoples and Free, Prior, Informed Consent (FPIC)
S4	Promotion of gender equality and inclusion
S5	Protection of cultural heritage and traditional knowledge
S6	Labor rights, fair working conditions, and occupational safety
S7	Equitable benefit-sharing and livelihood enhancement

Section C – Screening and Compliance Scoring

Each safeguard must be screened during project design and re-evaluated during each monitoring cycle. The PCS Safeguards Form provides three scoring options:

• ☑ Compliant – All applicable safeguards fully met; supporting evidence available.

• ☐ Partially Compliant – Safeguard partially met; corrective action required.

• ☐ Non-Compliant / Not Applicable – Safeguard not met or not relevant to the project.

For each safeguard, the Project Developer must provide justification and documentary evidence. Evidence may include environmental impact assessments, monitoring data, consultation records, or government permits.

Section D – Evidence and Verification Requirements

Validation and Verification Bodies (VVBs) must verify the evidence provided for each safeguard. Evidence should be auditable and verifiable, including:

• Environmental Impact Assessments (EIA) or ESIA reports

• Water, air, and soil quality monitoring data

• Biodiversity surveys or ecosystem assessments

• Labor policy and health & safety records

• Stakeholder consultation minutes and grievance logs

Where evidence gaps exist, the VVB shall raise Corrective Action Requests (CARs) or Clarification Requests (CLs) for resolution before validation or issuance approval.

Section E – Corrective Actions and Grievance Mechanism

Non-compliance or partial compliance with safeguards must be addressed through corrective actions recorded in the PCS Project Monitoring Report (PMR) and Post-Registration Change Request (PRC) forms. A formal grievance mechanism must be established for affected stakeholders, providing accessible channels for submitting and resolving complaints. Records of grievances and resolutions must be maintained and submitted at each monitoring cycle.

Section F – SDG Impact Assessment Guidance

PCS projects must identify and report their contributions to the United Nations Sustainable Development Goals (SDGs). The PCS SDG Impact Assessment Form provides a framework for selecting relevant SDGs, defining indicators, and verifying outcomes. Developers should:

• Select only SDGs with demonstrable contributions backed by measurable evidence.

• Provide both qualitative (narrative) and quantitative (numerical) indicators where applicable.

• Align indicators with international references such as UNDP, GRI, and ISO 14064.

• Report updates during each monitoring period via the PMR form.

VVBs will assess the credibility of claimed SDG impacts and ensure they align with verified project outcomes and data integrity principles.

Section G – Alignment with PCS Framework and International Standards

PCS safeguards and SDG methodologies are aligned with the following frameworks and standards:

• PCS Framework v2.0 (Sections 7 and 12)

• UN Sustainable Development Goals (2015)

• IFC Performance Standards on Environmental and Social Sustainability (2012)

• ISO 14064-2:2019 (Greenhouse gases – Project-level quantification and monitoring)

• Paris Agreement Article 6.4 environmental integrity principles