PCS SDG 006 Sustainability & SDG Integrity Standard_v1.0

Document Control

Document identification

• Document code: PCS-SDG-006

• Title: Sustainability & SDG Integrity Standard

• Scope: Defines mandatory sustainability requirements and SDG integrity rules for PCS projects, including “do no harm”, safeguards linkage, SDG contribution evidence, monitoring and reporting requirements, verification expectations, labelling rules, transparency, and enforcement for misstatements.

• Outcome: Ensures sustainability claims and SDG-related disclosures under PCS are credible, evidence-based, and verifiable.

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Superseded versions

No superseded versions for v1.0.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 Standard shall be used. Superseded versions shall be archived and retained for traceability and audit purposes, consistent with PCS governance rules.

Chapter 1 - Introduction

1.1 Background

1. The Planetary Carbon Standard (PCS) integrates sustainability and SDG integrity as core pillars of its program architecture. Global climate mechanisms, including the Paris Agreement Article 6 framework, emphasize that climate mitigation must be implemented in a manner that is environmentally sound, socially responsible, and beneficial to local communities. PCS recognizes that international carbon markets must evolve beyond pure emissions accounting and demonstrate measurable progress toward sustainable development outcomes.

2. This Sustainability & SDG Integrity Standard establishes the policies, responsibilities, governance arrangements, and assessment procedures required to ensure that all PCS-registered projects operate in accordance with global best practices in sustainability, safeguards, and the UN Sustainable Development Goals (SDGs). It applies across all project sectors and geographies participating in PCS.

1.2 Purpose

1. The purpose of this Standard is to ensure that PCS projects:

• prevent negative environmental and social impacts;

• promote measurable, verifiable contributions to the SDGs;

• align with ICVCM Core Carbon Principles and UNFCCC guidelines;

• follow consistent MRV frameworks for SDG tracking;

• transparently disclose impacts through the PCS Registry;

• qualify for PCS SDG Labels based on evidence of contribution; and

• maintain trust among Host Parties, communities, buyers, and the public.

1.3 Role of Safeguards and SDGs in PCS

1. Safeguards and sustainable development contributions are mandatory requirements for project registration and ongoing credit issuance. SDG contributions also serve as differentiating attributes for high-integrity carbon credits, enabling buyers to support projects that go beyond emissions reductions.

2. This Standard defines:

• threshold safeguard requirements,

• procedures for SDG monitoring and reporting,

• verification responsibilities,

• data quality and robustness requirements,

• eligibility for PCS SDG Labels.

1.4 Relationship to Other PCS Standards

1. This Standard shall be applied in conjunction with:

• PCS-STD-001 – Avoidance of Double Counting & CA Requirements

• PCS-STD-002 – CORSIA Eligibility Standard

• PCS-STD-004 – Validation & Verification Standard

• PCS Registry & Digital Infrastructure Protocol

• PCS Safeguards Instructions Annex

• PCS MRV Protocol

1. In case of conflict, the standard providing greater protection of environmental or social integrity takes precedence.

Chapter 2 - Scope

2.1 Material Scope

1. This Standard applies to:

2. all mitigation activities registered under PCS;

3. all project stages: registration, validation, monitoring, verification, issuance, renewal, and de-registration;

4. all project methodologies, irrespective of technology type;

5. all claims relating to SDG contributions, including PCS SDG Labels.

2.2 Project Scope

1. Project types covered include but are not limited to:

2. Renewable energy generation

3. Energy efficiency

4. Waste management

5. Industrial process improvements

6. AFOLU / Nature-based solutions (REDD+, forestry, land restoration)

7. Agriculture & livestock

8. Household energy

9. Water purification

10. CCS, BECCS, DACCS

11. Transport and urban infrastructure

2.3 Exclusions

1. This Standard does not apply to:

• Sustainability claims made by buyers of carbon credits;

• Corporate ESG reporting or corporate SDG claims;

• Non-quantifiable or speculative SDG impacts;

• Investor returns or financial impacts;

• Political, cultural, or ideological claims unlinked to SDGs.

2.4 Geographic Scope

1. Applies to all Host Parties regardless of income level, provided the project:

• complies with Host Party laws,

• is authorized (where applicable) for Article 6 use,

• satisfies national safeguard requirements.

Chapter 3 - Objectives

1. This Standard aims to:

3.1 Ensure No Harm

1. Prevent adverse impacts on the environment, communities, workers, and cultural heritage.

3.2 Ensure Measurable SDG Contributions

1. Promote transparent, defensible, and verifiable contributions to the SDGs.

3.3 Establish Robust Safeguards

1. Implement mandatory environmental, social, community, human rights, and governance safeguards.

3.4 Harmonize With Global Integrity Systems

1. Ensure alignment with ICVCM Core Carbon Principles, UNFCCC Article 6 guidance, CORSIA co-benefit expectations, and sustainable development frameworks.

3.5 Support Host Party Priorities

1. Ensure consistency with national laws, NDC implementation priorities, and local development goals.

3.6 Enable PCS SDG Labelling

1. Allow issuance of PCS SDG Labels—Basic, Enhanced, Leadership—based on measurable performance.

Chapter 4 - PCS Sustainability Principles

4.1 Do No Harm Principle

1. Projects must demonstrate no significant environmental or social harm. This includes:

• complying with all safeguard requirements,

• identifying potential risks,

• implementing mitigation plans,

• having functioning grievance mechanisms.

4.2 Human Rights and Community Protection

1. Projects must respect:

• human rights,

• Indigenous rights,

• cultural identity,

• free, prior, and informed consent (FPIC) where required.

4.3 Transparency & Accountability

1. Projects must disclose:

• safeguard screening results,

• SDG contribution indicators,

• monitoring data,

• community consultations,

• corrective actions.

4.4 Social Inclusion and Community Benefit

1. Projects must include disadvantaged or vulnerable groups in consultation and participation.

4.5 Independent Verification

1. All SDG claims must be independently validated and verified by a PCS-approved Validation & Verification Body (VVB).

Chapter 5 - PCS Safeguards Framework

1. Projects must complete and pass the PCS Safeguards Assessment.

2. The safeguards framework includes the following categories:

5.1 Environmental Safeguards

1. Projects must:

• avoid or mitigate pollution, emissions, waste, contamination;

• protect biodiversity, water quality, and soil health;

• avoid deforestation, ecosystem degradation, habitat destruction;

• avoid land-use conflicts and ensure land-right verification.

5.2 Social Safeguards

1. Requirements include:

• no forced or child labor;

• compliance with national labor laws;

• fair working conditions and occupational health and safety;

• no displacement without compensation;

• protection of vulnerable populations.

5.3 Community Safeguards

1. Projects must demonstrate:

• early and continuous stakeholder engagement;

• community consent where required;

• functioning grievance mechanisms;

• equitable benefit-sharing arrangements.

5.4 Governance Safeguards

1. Projects must ensure:

• transparency and anti-corruption practices;

• clear ownership and tenure rights;

• compliance with Host Party laws;

• accurate and truthful disclosure in PCS submissions.

1. Safeguards must be validated and verified at each crediting period renewal.

Chapter 6 - PCS SDG Contribution Requirements

6.1 Eligibility for SDG Contributions

1. A project may claim SDG contributions only if:

• the claim aligns with the UN SDG framework;

• the contribution is material, measurable, and directly attributable to the project;

• data are collected according to a monitoring plan;

• the impact is verified by a VVB.

6.2 Categories of SDG Contributions

1. PCS distinguishes between:

• Output-level: Direct project deliverables (e.g., number of solar lanterns distributed).

• Outcome-level (accepted for labelling): Changes in behavior or conditions (e.g., reduction in household kerosene use).

• Impact-level (highest tier): Long-term transformations (e.g., reduction in respiratory illness rates).

6.3 Evidence Requirements

1. Evidence must be:

• quantitative where possible (e.g., kWh, liters, tons, hours, mortality rates);

• derived from recognized indicators;

• supported by baseline and monitoring data;

• referenced to source documents;

• auditable and replicable.

6.4 SDG Monitoring Plan

1. Every PCS project must include:

• SDG indicators,

• data sources,

• frequency of monitoring,

• roles and responsibilities,

• QA/QC measures.

Chapter 7 - PCS SDG Label System

1. PCS establishes a 3-tier SDG label system to differentiate the depth of SDG contributions.

7.1 PCS SDG Basic (Level 1)

Minimum Requirements:

1. All PCS Safeguards passed.

2. At least 2 Outcome-level SDG contributions.

3. Monitoring plan for SDGs implemented.

4. Annual SDG reporting via PCS Portal.

5. Verified by a VVB.

7.2 PCS SDG Enhanced (Level 2)

Requirements:

1. All PCS Safeguards passed.

2. At least 4 SDGs, including at least one Impact-level contribution.

3. Quantitative monitoring indicators for each SDG.

4. Third-party verification of monitoring indicators.

5. Evidence of co-benefit distribution to communities.

6. No significant negative impacts on any stakeholder group.

7.3 PCS SDG Leadership (Level 3)

High-Integrity Requirements:

1. All PCS Safeguards passed with no moderate or high-risk findings.

2. At least 6 SDGs, with at least two Impact-level contributions.

3. Demonstrated transformational impacts (long-term socio-environmental benefits).

4. Documented community co-design and inclusion.

5. Use of advanced monitoring tools (remote sensing, digital surveys, IoT).

6. Sustained positive trends across ≥ 2 monitoring periods.

7. Verification of impact by VVB and PCS Secretariat audit.

8. Credits issued from Leadership projects may be tagged in the PCS Registry as PCS SDG-L.

Chapter 8 - SDG Assessment At Registration

8.1 General Provisions

1. The SDG assessment at the time of registration forms an integral component of the PCS project cycle and establishes the foundation on which all future sustainability claims and SDG labels are based. At this stage, the Project Proponent shall demonstrate that the project has been systematically evaluated for its potential to generate positive contributions to sustainable development while avoiding adverse environmental, social, community, or governance impacts.

2. The assessment must provide a clear and internally consistent representation of the project’s anticipated sustainability profile and must be submitted as part of the registration documentation prior to validation.

8.2 Scope of the Assessment

1. The SDG assessment conducted at registration shall encompass three core elements:

1

Safeguard Screening

A safeguard screening consistent with the PCS Safeguards Framework.

2

SDG Identification & Justification

Identification and justification of the SDGs that the project is expected to contribute to.

3

Monitoring Approach Development

Development of an initial monitoring approach that establishes baseline conditions, monitoring indicators, and reporting arrangements.

1. These elements collectively ensure that the project adheres to the “do no harm” principle, that SDG contributions are clearly defined and evidence-based, and that mechanisms for monitoring and verification are embedded into the project design from the outset.

8.3 Safeguard Screening

1. At registration, the Project Proponent shall complete the PCS Safeguards Form, demonstrating compliance with the environmental, social, community, and governance safeguards defined under this Standard.

2. The safeguard screening shall identify potential risks associated with project implementation and classify those risks in accordance with the PCS risk categorization framework. Where any risk is identified as moderate or higher, the Project Proponent shall develop an Environmental and Social Management Plan or equivalent risk mitigation plan addressing the identified concerns.

3. Projects presenting unmitigated high-risk impacts may not proceed to validation until adequate corrective measures have been incorporated.

8.4 Identification of SDG Contributions

1. The Project Proponent shall identify all Sustainable Development Goals that the project is expected to influence in a material and verifiable manner.

2. For each SDG selected, the Proponent shall provide a justification that establishes a clear causal link between the project activity and the anticipated contribution. This justification shall reference the specific SDG targets and, where applicable, describe the expected outcomes or impact pathways.

3. SDG claims must reflect realistic, evidence-based expectations rather than aspirational or speculative benefits, and the exclusion of SDGs that are typically associated with a given project type shall be justified by the Proponent.

8.5 Establishment of Baseline Conditions

1. For each SDG identified, the Project Proponent shall establish baseline conditions against which future improvements will be assessed.

2. Baseline conditions shall be described quantitatively where feasible and shall be derived from reliable data sources such as historical records, surveys, government statistics, environmental assessments, or community consultations.

3. The baseline shall represent conditions prior to project implementation and shall be sufficiently detailed to permit a credible comparison between pre-project and post-project states during verification.

8.6 Preliminary Monitoring Approach

1. As part of the registration package, the Proponent shall submit a preliminary monitoring approach describing how SDG contributions will be measured during the crediting period.

2. This approach shall specify the indicators that will be monitored, the sources of data that will be used, the frequency of monitoring, and the measures taken to ensure quality and consistency of reported information.

3. The monitoring approach shall be proportionate to the scale and complexity of the project and shall be designed to ensure that SDG contributions can be independently verified.

4. Where the Proponent intends to seek an enhanced SDG label, the monitoring approach shall include more rigorous or advanced data-collection techniques consistent with the requirements of the higher label tier.

8.7 Stakeholder Engagement

1. The Project Proponent shall demonstrate that the identification of SDG contributions and associated baseline conditions has been informed by meaningful stakeholder engagement.

2. The consultation process shall be undertaken prior to validation and shall involve affected communities, workers, local authorities, and other relevant stakeholders. The Proponent shall provide a summary of the consultation process, including the methods used, the stakeholders consulted, the issues raised, and the manner in which stakeholder feedback has been reflected in the project design.

3. Where applicable, evidence of compliance with national or customary requirements for engagement with Indigenous peoples shall also be provided.

8.8 Validation and Review Requirements

1. The Validation and Verification Body shall assess the SDG assessment submitted at registration and confirm whether the information provided is complete, reasonable, and consistent with the PCS requirements.

2. The VVB shall determine whether the safeguard screening has been conducted appropriately, whether the SDG claims are supported by a coherent justification, whether the baseline conditions are credible, and whether the preliminary monitoring approach is adequate to support verification during the crediting period.

3. The VVB’s conclusions shall be recorded in the Validation Report.

8.9 PCS Secretariat Review

1. Following VVB validation, the PCS Secretariat shall undertake a review of the SDG assessment to ensure that all requirements have been satisfied and that the project meets the minimum threshold for registration under the PCS.

2. The Secretariat may request clarifications, revisions, or additional evidence where necessary.

3. Registration approval shall be accompanied by a PCS SDG Registration Assessment Notice, which shall form part of the public project file maintained in the PCS Registry.

8.10 Registration Decision

1. Upon completion of the assessment, the PCS Secretariat shall issue one of the following determinations:

• acceptance for validation,

• conditional acceptance pending minor amendments, or

• rejection.

1. Projects may only proceed to validation and subsequent stages of the PCS project cycle after receiving confirmation that the SDG assessment meets the requirements of this Standard.

Chapter 9 - SDG Assessment At Monitoring And Issuance

9.1 General Provisions

1. The assessment of SDG contributions during monitoring and issuance ensures that sustainability benefits claimed at registration are substantiated through measurable evidence and validated through independent third-party verification. It provides the basis for determining whether a project has achieved, exceeded, or failed to meet SDG contributions anticipated at registration, and whether the project remains eligible for issuance of PCS carbon credits and, where applicable, the award or renewal of a PCS SDG Label. This assessment is conducted at each monitoring interval and forms part of the regular verification cycle.

9.2 Monitoring Responsibilities of the Project Proponent

1. The Project Proponent shall implement the SDG monitoring plan approved at registration and must ensure that all indicators are monitored in accordance with the frequency, methods, and data-quality provisions described therein.

2. Monitoring data shall reflect the conditions of the project during the monitoring period and shall be supported by verifiable evidence, including primary datasets, technical reports, operational records, community feedback, and other sources deemed appropriate to the nature of the SDG contribution.

3. The Project Proponent shall maintain complete documentation for all monitoring activities for audit and verification purposes.

9.3 Monitoring Report Requirements

1. The Project Proponent shall prepare a Monitoring Report for each reporting period that includes a comprehensive account of SDG performance. The Monitoring Report shall:

• describe the actual values of each SDG indicator monitored during the period;

• compare monitored results against the baseline established at registration;

• identify any deviation from expected performance and its causes;

• describe any changes to local conditions affecting SDG contributions;

• report on the implementation of safeguard measures and the status of risk mitigation; and

• document stakeholder feedback or grievances received during the reporting period.

1. Monitoring Reports shall be prepared in a format consistent with PCS requirements, and all data supporting SDG claims must be included as annexes or referenced through accessible datasets.

9.4 Treatment of Changes in SDG Contributions

1. Where monitoring reveals that SDG contributions differ from expectations established at registration, the Project Proponent shall provide an explanation supported by evidence.

2. Material improvements may strengthen eligibility for higher tiers of the PCS SDG Label, while material underperformance may affect the project’s label level or render a project ineligible for SDG labelling.

3. The Project Proponent must disclose any significant negative impacts identified during the monitoring period and describe corrective actions undertaken.

4. The table below summarizes how PCS interprets changes in SDG performance:

Table 9-A. Treatment of SDG Performance Changes

Observed Change During Monitoring	Implication for SDG Label	Required Action
Actual performance exceeds expected outcomes	Eligible for label upgrade (subject to verification)	Provide supporting data and justification
Actual performance matches expectations	Label preserved	Continue monitoring as planned
Actual performance is below expectations but still positive	Label maintained but flagged for review	Provide explanation and corrective plan
No measurable SDG benefit achieved	Label downgraded or suspended	Corrective actions required before next issuance
Negative SDG impact identified	Label revoked; issuance halted	Mandatory mitigation and Secretariat review

9.5 Verification Requirements

1. During verification, the Validation and Verification Body shall assess the Monitoring Report to determine whether SDG data are complete, accurate, and consistent with the approved monitoring plan and with PCS requirements.

2. The VVB shall evaluate:

1

Adequacy of data sources and monitoring methods

Assess whether the data sources and methods used for monitoring are appropriate and sufficient.

2

Accuracy and plausibility of reported indicator values

Evaluate whether the reported values are credible and consistent with expectations.

3

Consistency between project activity and observed SDG outcomes

Confirm the causal link between the project activity and observed outcomes.

4

Handling of safeguard risks and any grievances raised

Review how safeguard issues and grievances were managed during the monitoring period.

5

Appropriateness of corrective actions for deviations

Assess whether corrective actions for any deviations were adequate and implemented.

6

Evidence supporting claims for PCS SDG Label upgrading

Verify the data supporting any requested label upgrade.

7

Alignment with Host Party or local development frameworks

Where relevant, check alignment of SDG contributions with local or national frameworks.

1. The VVB shall summarize its findings in the Verification Report, indicating whether SDG contributions have been verified, partially verified, or found to be unsubstantiated.

9.6 Secretariat Review and Issuance Decision

1. Following verification, the PCS Secretariat shall undertake a review of the Monitoring Report and the VVB’s conclusions. The Secretariat may request additional documentation or clarification from either the Project Proponent or the VVB.

2. The issuance of carbon credits and the award or continuation of any PCS SDG Label shall be contingent upon:

• the satisfactory verification of SDG contributions;

• the absence of unresolved safeguard risks;

• consistency between reported SDG contributions and the approved SDG monitoring plan;

• completion of all required corrective actions (if applicable).

1. The Secretariat shall issue a formal SDG Monitoring & Issuance Decision Notice, which shall be published in the PCS Registry alongside relevant monitoring and verification documents.

9.7 SDG Label Review at Issuance

1. The PCS SDG Label assigned to a project shall be reviewed at each issuance cycle. Projects may experience:

• Label confirmation: when SDG performance is consistent with expectations.

• Label upgrade: when verified evidence demonstrates improved or expanded SDG contributions.

• Label downgrade: when performance fails to meet the threshold of the current label tier.

• Label suspension or removal: when adverse impacts, unmitigated risks, or unsubstantiated SDG claims are identified.

1. A project seeking a label upgrade must submit verifiable data demonstrating that the higher-tier requirements—such as increased SDG coverage, higher impact-level outcomes, or enhanced monitoring—have been fulfilled.

9.8 Treatment of Safeguard Findings During Monitoring

1. Monitoring may reveal new risks or impacts not identified during registration. The Project Proponent is obligated to report such findings and implement corrective actions.

2. The Secretariat may require amendments to the Environmental and Social Management Plan or request additional monitoring or consultation.

3. Failure to address safeguard concerns may result in suspension of the project’s SDG label or, in severe cases, suspension of credit issuance.

9.9 Data Transparency and Registry Disclosure

1. All SDG-related monitoring information that has undergone verification shall be published in the PCS Registry to promote transparency and market confidence. The project’s public profile shall include:

• verified SDG indicators,

• the level of PCS SDG Label granted,

• summaries of safeguard performance,

• the Secretariat’s issuance decision.

1. Confidential information shall be handled in accordance with PCS confidentiality provisions but may not be withheld when it materially affects the integrity of SDG claims.

9.10 Special Provisions for Transformational or High-Impact Projects

1. Projects seeking the PCS SDG Leadership label must demonstrate, through robust evidence, that SDG contributions are not only maintained but strengthened over time. These projects may be subject to enhanced monitoring requirements, periodic audits by the Secretariat, or additional verification cycles, particularly when contributions are complex, large-scale, or dependent on multiple actors.

9.11 Issuance Outcome

1. Based on the assessment of SDG contributions during the monitoring period, the project may receive one of the following outcomes:

2. Issuance Approved: SDG contributions satisfactorily verified and safeguards maintained.

3. Issuance Approved with Conditions: Minor corrective actions to be addressed before the next cycle.

4. Issuance Deferred: Additional data or corrective actions required before issuance.

5. Issuance Rejected: Material safeguard failures, unverifiable SDG claims, or other non-compliance.

6. Each issuance decision shall be recorded in the PCS Registry and made publicly available.

Chapter 10 - Validation & Verification Of SDG Contributions

10.1 General Provisions

1. Validation and verification of SDG contributions constitute essential components of the PCS assurance framework. Validation at the time of registration ensures that the SDG assessment has been conducted in a manner consistent with the requirements of this Standard and that the project’s proposed contributions are grounded in credible baseline conditions, appropriate indicators, and a defensible causal logic.

2. Verification at each monitoring interval provides assurance that reported SDG performance is based on measurable evidence collected in accordance with the approved monitoring approach.

3. Together, these processes safeguard the integrity, accuracy, and transparency of SDG claims associated with PCS carbon credits and PCS SDG Labels.

10.2 Role of the Validation & Verification Body (VVB)

1. The VVB is responsible for performing an independent, impartial, and robust assessment of SDG-related documentation submitted by the Project Proponent during both validation and verification stages.

2. The VVB shall possess the technical competence, sectoral expertise, and methodological familiarity necessary to evaluate sustainability indicators, safeguard compliance, and SDG impact pathways.

3. The VVB’s responsibilities include:

• reviewing the completeness and adequacy of the SDG assessment;

• determining whether baseline conditions are accurate and representative;

• evaluating the appropriateness of monitoring indicators;

• confirming the suitability of data-collection methods;

• assessing evidence supporting claimed SDG outcomes and impacts;

• verifying the continued effectiveness of safeguard measures; and

• documenting findings in the respective Validation or Verification Report.

1. The VVB shall carry out these responsibilities objectively and in accordance with PCS-STD-004, the PCS VVB Requirements, and applicable ISO 14064-3 and 14065 principles.

10.3 Validation of SDG Contributions

1. During validation, the VVB shall assess whether the SDG assessment submitted by the Project Proponent is complete, coherent, and consistent with PCS rules. The VVB shall determine whether:

1

Safeguard Screening

The safeguard screening has identified all material risks and whether mitigation measures are appropriate and credible.

2

SDG Selection

The SDG selection is reasonable and describes a logical chain of causation between project activities and anticipated SDG outcomes.

3

Baseline Conditions

The baseline conditions are derived from reliable sources, reflect the reality of pre-project conditions, and allow meaningful comparison with future performance.

4

Monitoring Plan

The preliminary SDG monitoring plan specifies indicators that are measurable, attributable to the project, and proportionate to the scale of the claimed SDG contributions.

5

Stakeholder Consultation Evidence

Stakeholder consultation evidence confirms that the views of affected groups have been considered in the SDG assessment.

1. Validation conclusions shall be recorded in the Validation Report, including any reservations, recommendations, or corrective actions required prior to the commencement of monitoring.

10.4 Verification of SDG Performance

1. Verification is conducted at each monitoring interval and assesses whether the SDG contributions reported by the Project Proponent have been achieved, partially achieved, or not achieved.

2. The VVB shall determine whether:

• monitoring was conducted in accordance with the approved monitoring plan;

• the data collected are accurate, traceable, and appropriately documented;

• indicators were measured using acceptable methods and tools;

• deviations from planned performance have been adequately explained;

• changes in project conditions have been appropriately reflected; and

• safeguard measures have remained effective throughout the monitoring period.

1. Verification shall include on-site assessments, remote assessments, interviews, data sampling, and review of documentary evidence, as appropriate to the project type and scale.

10.5 Evaluation of Evidence

1. The VVB shall evaluate the quality, completeness, and reliability of evidence supporting SDG claims. Evidence may include primary data (such as operational records, surveys, or measurements) and secondary data (such as national statistics, satellite imagery, research reports, or government publications).

2. The VVB shall apply conservative judgment when evidence is uncertain or incomplete.

3. The following table provides an indicative hierarchy of evidence for SDG verification:

Table 10-A. Hierarchy of Evidence for SDG Verification

Evidence Type	Description	Credibility Level
Direct primary data	Measured data, field observations, instrument readings	Highest
Verified operational records	Logs, utility data, maintenance records, digital monitoring	High
Third-party studies	Independent reports, academic data, external evaluations	Moderate
Secondary datasets	Government statistics, IEA/FAO/WHO data	Moderate
Community feedback	Surveys, stakeholder interviews	Contextual
Proponent-generated estimates	Expert judgment, assumptions	Lowest

10.6 Verification of Safeguard Compliance

1. Verification shall include an assessment of safeguard performance. The VVB shall review:

• whether mitigation measures were implemented as planned;

• whether any new risks emerged during the monitoring period;

• whether grievances were addressed appropriately;

• whether compliance with Host Party requirements has been maintained.

1. Any major safeguard non-compliance shall result in the suspension of SDG claims and may also affect credit issuance.

10.7 Assessment of Eligibility for PCS SDG Labels

1. The VVB shall assess whether the project meets the criteria for the PCS SDG Label tier assigned at registration or whether performance during the monitoring period warrants an upgrade or downgrade. The assessment shall be based on verified SDG results, robustness of monitoring, and the presence or absence of negative impacts.

2. The PCS Secretariat may require additional evidence or an independent review for Leadership-tier claims or when the VVB identifies ambiguous or borderline cases.

10.8 Treatment of Discrepancies and Non-Conformities

1. Where discrepancies or non-conformities are identified during validation or verification, the VVB shall classify them in accordance with PCS-STD-004:

• Material Non-Conformity: A finding that undermines the integrity of SDG claims and must be resolved prior to issuance.

• Minor Non-Conformity: A finding that does not materially affect SDG integrity but must be addressed by the next verification period.

• Observation: A potential improvement or risk that does not affect current issuance.

1. Corrective actions shall be documented, implemented, and verified before the next issuance cycle.

10.9 Verification Report Requirements

1. The VVB shall prepare a Verification Report summarizing:

• the scope of the verification;

• the methodologies used;

• the evidence reviewed;

• the assessment of each SDG indicator;

• any safeguard findings;

• conclusions regarding SDG contributions; and

• recommendations concerning the PCS SDG Label.

1. The Verification Report must include clear statements of conformity or non-conformity and shall be submitted to the PCS Secretariat in accordance with program deadlines.

10.10 Secretariat Review and Quality Assurance

1. The PCS Secretariat shall review the Verification Report to ensure completeness and adherence to PCS requirements. The Secretariat may request clarification from the VVB or additional evidence from the Project Proponent where necessary.

2. In cases involving significant discrepancies or high-impact SDG claims, the Secretariat may initiate a quality assurance review or an independent assessment.

3. Issuance of PCS carbon credits and confirmation or adjustment of the PCS SDG Label shall be based on the Secretariat’s review of the VVB’s conclusions and supporting evidence.

10.11 Verification Outcome and Registry Publication

1. Upon completion of its review, the PCS Secretariat shall issue an SDG Verification Decision, indicating whether SDG contributions have been verified, partially verified, or rejected.

2. This decision shall be recorded in the PCS Registry and disclosed publicly alongside relevant documentation, including the Verification Report and a summary of SDG performance.

3. Projects with unverified SDG contributions may still receive carbon credits if emission reductions are validated, but they shall not receive or maintain a PCS SDG Label until SDG claims are fully verified.

Chapter 11 - Methodology Requirements & Sector-Specific Rules

11.1 General Provisions

1. This chapter establishes the requirements for incorporating sustainability and SDG considerations into PCS methodologies and defines sector-specific provisions necessary to ensure that SDG assessments under PCS are coherent, consistent, and proportionate to the nature of each mitigation activity. These provisions complement the technical requirements of the project-level methodologies and ensure alignment between project design, safeguard obligations, and the monitoring of SDG contributions.

2. Methodology developers shall ensure that all methodologies under PCS include explicit instructions regarding the identification, measurement, and verification of relevant SDG contributions, as well as precautionary requirements for the management of associated sustainability risks.

3. No methodology shall be approved under PCS unless it satisfies the minimum requirements stipulated in this chapter.

11.2 Integration of SDG Requirements in Methodologies

1. All PCS methodologies shall incorporate the following elements:

11.2.1 Description of Relevant SDGs

Each methodology shall describe the SDGs that are commonly associated with the activity type and identify key impact pathways. This description is intended as guidance and does not preclude project-specific SDG contributions that fall outside standard pathways, provided such contributions are justified and supported by evidence.

11.2.2 Identification of Material Sustainability Risks

Each methodology shall identify the environmental, social, community, and governance risks typically associated with the activity type. Where specific risks are known to occur frequently in similar contexts (e.g., water-use competition for hydroelectric projects), the methodology shall include additional risk screening requirements.

11.2.3 Indicator Selection Framework

Methodologies shall define a set of acceptable indicators for monitoring SDG contributions. Indicators may be drawn from internationally recognized sources, including UN SDG indicators, WHO, FAO, IRENA, OECD, or national statistical agencies. Methodologies shall also allow Project Proponents to propose context-specific indicators if supported by a justification consistent with MRV principles.

11.2.4 Requirements for Baseline and Monitoring Approaches

Methodologies shall describe standardized or recommended approaches for establishing baselines for SDG indicators and for monitoring performance over time. These approaches shall reflect best available data, local conditions, and internationally recognized assessment practices.

11.2.5 Safeguard-Specific Provisions

Where certain project types entail particular sustainability risks, methodologies shall require enhanced safeguard assessments or monitoring measures. These additional requirements become binding for all projects applying the methodology.

11.2.6 Requirements for Advanced Monitoring

Methodologies that support eligibility for the PCS SDG Leadership label shall outline options for digital monitoring systems, including remote sensing, IoT devices, or other advanced data-collection mechanisms, where applicable.

11.3 Sector-Specific Rules

1. PCS recognizes that different project categories exhibit distinct sustainability profiles. The following subsections establish sector-specific rules that methodologies must incorporate to ensure appropriate treatment of SDG contributions and safeguard risks.

11.3.1 Renewable Energy & Energy Access

Renewable energy projects often contribute to a range of SDGs, including energy access, air pollution reduction, economic development, and employment generation.

Methodologies covering this sector shall therefore:

1. identify typical SDG impacts, such as contributions to SDG 3 (Health), SDG 7 (Energy), SDG 8 (Decent Work), and SDG 13 (Climate Action);

2. require baseline assessments of local energy access conditions, energy poverty levels, and prevailing energy sources;

3. include guidance for quantifying air-quality improvements or health-related impacts where such impacts are material;

4. specify risks related to land use, water consumption (for hydro), community displacement (for wind or hydro), and biodiversity interactions; and

5. prescribe additional monitoring for high-impact claims, such as changes in household energy expenditure or local employment rates.

11.3.2 AFOLU & Nature-Based Solutions (Forestry, Land Use, Agriculture)

AFOLU and NBS projects have complex sustainability profiles due to significant interactions with land tenure, biodiversity, communities, and livelihoods.

Methodologies shall therefore:

1. specify requirements for assessing land tenure, land rights, customary rights, and Indigenous claims;

2. require biodiversity assessment consistent with recognized biodiversity frameworks;

3. outline risk assessment procedures for leakage into adjacent areas;

4. provide a framework for monitoring community livelihood impacts;

5. specify minimum requirements for Free, Prior and Informed Consent (FPIC) where Indigenous peoples or customary landholders are affected;

6. define indicators related to forest health, productivity, water availability, and social well-being; and

7. provide instructions for managing potential conflicts between carbon mitigation and food security objectives.

A formal Land and Community Impact Table shall be included in all AFOLU methodologies, similar to the structure below:

Table 11-A. Required AFOLU Impact Assessment Elements

Impact Area	Minimum Required Assessment Elements
Land Tenure & Rights	Legal status, customary rights, community agreements, FPIC requirements
Biodiversity	Baseline biodiversity assessment, habitat mapping, species-risk identification
Livelihoods	Income sources, resource dependence, vulnerability mapping
Water Resources	Water use, seasonal availability, hydrological impacts
Social Dynamics	Community representation, conflict history, local governance
Food Security	Agricultural reliance, land-use competition, dietary implications

11.3.3 Waste Management & Circular Economy

Methodologies for waste-related mitigation activities shall:

1. identify impacts relating to public health, sanitation, occupational safety, and local environmental quality;

2. require assessment of informal sectors where waste picking or recycling is prevalent;

3. describe safe operational practices and handling of hazardous materials;

4. establish indicators for reductions in landfill volumes, air pollutants, or open burning; and

5. require monitoring of occupational health and safety measures for workers.

11.3.4 Industrial Processes, Fuel Switching & Energy Efficiency

Methodologies addressing industrial mitigation activities shall:

1. assess risks related to worker safety, chemical exposure, and industrial process hazards;

2. include indicators related to improved operational efficiency, reduced emissions, or cost savings that benefit workers or local communities;

3. specify monitoring requirements for workplace conditions where relevant; and

4. describe environmental risk controls for emissions, effluents, or waste associated with industrial activities.

11.3.5 CCS, BECCS & DACCS

Methodologies for engineered carbon-removal technologies must adopt enhanced SDG and safeguard provisions due to the complexity and technical risks of such systems.

Methodologies shall therefore:

1. describe safety and risk-mitigation requirements for CO₂ transport, compression, injection, and storage;

2. incorporate monitoring specifications for leakage risks and community safety;

3. define SDG indicators linked to job creation, worker training, and long-term technology transfer;

4. include requirements for monitoring local environmental impacts such as noise, land disturbance, and water usage; and

5. require reporting on the energy intensity of capture operations and its implications for net sustainable development outcomes.

11.3.6 Household Energy & Community-Scale Technologies

Projects providing household energy solutions (e.g., cookstoves, water filters, micro-grids, solar home systems) shall:

1. define indicators for household health, indoor air quality, time savings, and household economics;

2. require baseline surveys consistent with best practices in social research;

3. outline procedures for sampling households and ensuring representativeness;

4. address gender-specific impacts; and

5. ensure that the equipment supplied meets quality and durability standards.

11.4 Adjustments to Methodological Requirements Over Time

1. Methodologies may be updated to incorporate new sustainability science, technological advancements, stakeholder expectations, Host Party requirements, or ICVCM/UNFCCC rule changes. When methodologies are revised, corresponding updates to SDG requirements shall be incorporated, and projects seeking to use new SDG indicators or higher SDG labels shall comply with updated provisions.

11.5 Consistency with Host Party Priorities

1. Methodologies shall require that SDG contributions be consistent with Host Party development priorities, policies, and national frameworks. Where Host Parties provide guidance on SDG monitoring or national indicators, methodologies shall reference such guidance to ensure alignment.

11.6 Methodology Review and Approval by PCS

1. Each methodology submitted for approval under PCS must undergo a review by the PCS Secretariat to determine whether the methodology sufficiently addresses SDG and safeguard requirements. The Secretariat may consult independent experts where necessary. Approval may be granted, conditionally granted, or denied based on the methodology’s ability to meet the requirements described in this Standard.

11.7 Linkages Between Methodologies and PCS SDG Labels

1. Methodologies shall clearly identify whether projects applying the methodology may seek PCS SDG Basic, Enhanced, or Leadership labels and, if so, which SDG pathways, advanced indicators, or enhanced monitoring provisions are required for higher label tiers.

11.8 Publication and Transparency

1. All methodologies approved under PCS shall be published in the PCS Methodology Library and shall include details of the SDG components defined in this chapter.

2. Any updates or revisions to methodology documents shall be publicly disclosed and versioned in accordance with PCS governance procedures.

Chapter 12 - Record Keeping & Transparency Requirements

12.1 General Provisions

1. Record keeping and transparency constitute fundamental pillars of the Planetary Carbon Standard. The integrity of SDG contributions relies upon the availability of complete, accurate, and verifiable records maintained throughout the project cycle.

2. This chapter defines the minimum requirements for preserving and disclosing SDG-related information to ensure that all stakeholders—including Host Parties, Verification Bodies, credit buyers, local communities, and the public—have access to reliable and consistent information.

3. Transparency is further facilitated through the PCS Registry, which is supported by a blockchain-based ledger ensuring immutability, traceability, and public accessibility of key project documents and SDG performance data.

12.2 Responsibilities of the Project Proponent

1. The Project Proponent shall establish and maintain a comprehensive record-keeping system capable of storing all documents, datasets, and evidence related to SDG contributions and safeguard performance. Records shall be maintained in a manner that ensures completeness, clarity, accessibility, and protection against unauthorized alterations.

2. The system shall be designed to preserve information for the entire duration of the crediting period and for a minimum of seven years beyond the final issuance or de-registration of the project.

3. Records to be maintained shall include, at minimum:

• the PCS Safeguards Form completed at registration and all subsequent updates;

• baseline data and sources used to establish pre-project conditions;

• monitoring data for each SDG indicator, including raw datasets and analysis outputs;

• versions of monitoring and verification reports;

• stakeholder consultation records, including meeting summaries, attendance lists, and feedback logs;

• the Environmental and Social Management Plan (where applicable);

• evidence of implementation of mitigation measures;

• documentation relating to grievances and their resolution; and

• correspondence with the PCS Secretariat and Verification Bodies regarding SDG matters.

1. The Project Proponent must ensure that all records are available for review by the Validation & Verification Body, the PCS Secretariat, Host Party authorities, and—where relevant—community representatives or auditors.

12.3 Requirements for Monitoring Data Storage

1. Records related to SDG indicator monitoring must be stored in a manner that preserves data integrity.

2. Where digital monitoring tools (e.g., remote sensing, IoT sensors, survey applications) are used, the Project Proponent shall archive all underlying data files, calibration certificates, timestamps, and system logs. Any modification or transformation of the data shall be documented, including version histories, data-cleaning procedures, and assumptions applied.

3. Where sampling is employed, records of sampling frames, sampling methodologies, survey instruments, and raw survey responses must be preserved. Any deviations from approved monitoring methodologies shall be justified and recorded.

12.4 Use of the PCS Registry for Transparency

1. The PCS Registry serves as the primary platform for transparency regarding SDG contributions. The Registry maintains public access to key project information, while sensitive information is protected in accordance with PCS confidentiality requirements.

2. The Registry shall publish:

• the project’s SDG assessment at registration;

• the SDG-related sections of Monitoring Reports and Verification Reports;

• summary results of safeguard screenings;

• the current PCS SDG Label assigned to the project and the justification for label changes;

• the Secretariat’s issuance decisions related to SDG contributions; and

• any public notices of non-conformities or corrective actions.

1. The blockchain layer integrated into the PCS Registry shall store cryptographic hashes of SDG monitoring datasets, ensuring that the authenticity of reported data can be independently verified.

12.5 Public Disclosure of SDG Performance

1. The PCS Secretariat shall ensure that key SDG performance information is disclosed publicly in a manner that is accessible, understandable, and consistent with international transparency expectations.

2. Public disclosure shall provide insight into:

• the SDG contributions achieved by each registered project;

• the extent to which contributions have been verified by a VVB;

• the evolution of SDG performance across monitoring periods; and

• any material changes to the project that affect SDG outcomes.

1. Information disclosed on the PCS Registry shall be accompanied by sufficient contextual explanation to facilitate interpretation by non-technical audiences, while retaining the accuracy necessary for expert review.

12.6 Confidentiality Provisions

1. While PCS prioritizes transparency, it recognizes that certain categories of information may warrant protection due to commercial confidentiality, personal privacy, or national policy sensitivity.

2. Project Proponents may request confidential treatment of specific documents; however, the burden of proof lies with the Proponent to demonstrate that disclosure would cause substantial harm or violate applicable legal obligations.

3. The following shall not be kept confidential under any circumstances:

• SDG claims;

• SDG monitoring indicators and verified results;

• safeguard risks and mitigation measures;

• PCS SDG Labels and associated justifications;

• any finding that materially affects the environmental or social integrity of the project.

1. The PCS Secretariat shall make the final determination on confidentiality requests, and decisions shall be recorded in the project file.

12.7 Host Party Access to SDG Records

1. To support Host Party reporting under the Paris Agreement Enhanced Transparency Framework, the PCS Secretariat shall provide Host Parties with access to SDG performance information for projects within their jurisdiction.

2. The Registry shall include functions enabling Host Parties to view:

• SDG baseline conditions;

• verified SDG outcomes;

• safeguards performance;

• community consultation outcomes;

• SDG Labels and any changes over time.

1. Host Parties may request additional documentation, and the PCS Secretariat shall facilitate access while respecting confidentiality provisions.

12.8 Verification Body Access to Records

1. The Validation & Verification Body shall have unrestricted access to records relevant to SDG contributions, including raw monitoring data, field records, stakeholder engagement documentation, and any information required to perform a credible assessment.

2. The Project Proponent is obligated to provide such access promptly and shall not restrict the VVB’s ability to conduct independent review, site visits, or interviews with stakeholders.

3. Where the Proponent fails to provide adequate access, the VVB shall document this as a non-conformity, and the PCS Secretariat may suspend verification or issuance activities until the issue is resolved.

12.9 Record Retention Period

1. All records relating to SDG contributions shall be retained by the Project Proponent for the duration of the project’s active crediting period plus a minimum of seven years following the final issuance of PCS credits or the project’s de-registration.

2. Where national legal requirements impose a longer retention period, the longer requirement shall apply.

12.10 Accuracy, Integrity, and Protection of Records

1. Project Proponents must ensure that all records are safeguarded against loss, unauthorized modification, and degradation. Digital records shall be backed up regularly, and physical records shall be maintained under secure conditions.

2. Alterations to previously submitted documents shall be tracked using version control, and any changes that materially affect SDG contributions must be reported to the PCS Secretariat.

3. In the event of record loss or corruption, the Proponent shall notify the Secretariat within thirty days and implement corrective measures. Serious failures to maintain adequate records may result in suspension of the project’s SDG Label or carbon-credit issuance.

Chapter 13 - Non-Compliance, Corrective Actions & Enforcement

13.1 General Provisions

1. This chapter establishes the framework through which the Planetary Carbon Standard (PCS) identifies, classifies, and responds to non-compliance relating to SDG contributions, safeguard obligations, and associated reporting requirements. The provisions herein apply to all projects, Project Proponents, and Validation & Verification Bodies operating under PCS.

2. The enforcement mechanisms described in this chapter ensure that PCS maintains the highest level of environmental and social integrity, transparency, and accountability across its entire program, and that deviations from required procedures are addressed promptly and consistently.

13.2 Identification of Non-Compliance

1. Non-compliance may be identified by the Validation & Verification Body, the PCS Secretariat, Host Party authorities, impacted communities, or any third party providing credible evidence of a breach. Non-compliance may arise during registration, monitoring, verification, issuance, or at any other point in the project cycle.

2. Non-compliance includes, but is not limited to:

• incomplete, inaccurate, or misleading SDG reporting;

• failure to implement required safeguard measures;

• unaddressed stakeholder grievances or social-risk incidents;

• deviation from approved SDG monitoring plans;

• manipulation or falsification of data;

• failure to maintain adequate record keeping;

• obstruction of VVB access to information or sites;

• material impacts on communities, ecosystems, or workers;

• breaches of Host Party requirements or applicable law.

1. The PCS Secretariat reserves the right to classify any issue as non-compliance where it materially affects the credibility of SDG claims or safeguard commitments.

13.3 Classification of Non-Compliance

1. Non-compliance shall be classified by the PCS Secretariat or the VVB in the following categories, which reflect the severity, materiality, and implications for issuance:

13.3.1 Material Non-Compliance

A material non-compliance is a breach that fundamentally undermines the reliability of SDG claims, safeguard integrity, or monitoring results. Material non-compliances require immediate corrective action and may result in suspension of SDG Labels or issuance rights. Examples include falsified data, unmitigated high-risk safeguard findings, and significant harm to communities or the environment.

13.3.2 Minor Non-Compliance

A minor non-compliance is a deviation that does not materially affect SDG integrity but requires correction before or during the next verification cycle. Examples include incomplete data entries, administrative inconsistencies, or minor deviations from monitoring frequency.

13.3.3 Observations

Observations are potential risks or areas for improvement that do not currently constitute non-compliance. Observations should be addressed to prevent escalation into minor or material non-compliance.

13.4 Corrective Action Requirements

1. Upon identification of non-compliance, the PCS Secretariat shall issue a formal notice requiring the Project Proponent to prepare a Corrective Action Plan.

2. The plan shall:

• describe the nature and cause of the non-compliance;

• identify corrective actions to remedy the issue;

• specify responsible parties;

• provide timelines for implementation;

• outline measures to prevent recurrence; and

• include supporting evidence and documentation.

1. The Secretariat may require the plan to be reviewed or endorsed by the VVB. Where significant safeguard concerns exist, the Secretariat may require additional third-party assessments or on-site inspections.

13.5 Deadlines for Corrective Actions

1. Corrective actions must be completed in accordance with deadlines set by the PCS Secretariat, taking into consideration the severity of the issue and the potential risks to stakeholders.

2. Deadlines typically fall into the following categories:

• Immediate, where material harm or imminent risk is involved;

• Within 90 days, for material non-compliances without immediate danger;

• By the next monitoring or verification cycle, for minor non-compliances; and

• Within a period determined by the Secretariat, for complex cases requiring phased implementation.

1. Failure to meet corrective-action deadlines may result in escalation, including suspension or cancellation of SDG Labels or issuance restrictions.

13.6 Suspension of SDG Claims and Labels

1. The PCS Secretariat may suspend the SDG Label of a project if:

• verified evidence of material non-compliance exists;

• safeguard risks have not been adequately mitigated;

• SDG indicators are missing, manipulated, or unverifiable;

• the Project Proponent obstructs verification or access to information;

• the project causes or fails to prevent harm to communities or ecosystems.

1. Suspension may apply to the specific SDG Label tier or, where necessary, to all SDG claims associated with the project. During suspension, the project remains eligible for carbon credit issuance only if emission reductions remain verified, but all SDG-related claims shall be withheld until verification confirms compliance.

13.7 Suspension or Restriction of Issuance

1. The PCS Secretariat may suspend issuance of carbon credits where SDG or safeguard non-compliance suggests that the project is not operating in accordance with the expectations of environmental or social integrity.

2. Issuance may be suspended when:

• harm to local communities has occurred or remains unresolved;

• environmental degradation attributable to the project has occurred;

• SDG claims are materially overstated;

• repeated non-compliance indicates systemic failures;

• Host Party authorizations or approvals are withdrawn or under review.

1. Issuance shall resume only upon verification that corrective actions have been implemented and that compliance has been restored.

13.8 Revocation of Labels or Project Status

1. The PCS Secretariat may revoke a project’s SDG Label or project status under the following conditions:

• deliberate falsification of SDG or safeguard data;

• repeated material non-compliance across consecutive monitoring cycles;

• persistent refusal to cooperate with the VVB or Secretariat;

• confirmed harm to community health, safety, or rights;

• serious environmental damage attributable to the project;

• violation of applicable laws or Host Party conditions.

1. Revocation is a permanent action unless the project is re-registered under a future PCS cycle following a comprehensive resubmission and independent audit.

13.9 Reporting of Serious Incidents

1. The Project Proponent shall promptly report any serious incidents affecting worker safety, community welfare, environmental conditions, or project operations. A serious incident includes fatalities, severe injuries, large-scale environmental contamination, or major operational failures.

2. The Secretariat may require:

• additional verification by an independent expert;

• immediate suspension of credit issuance;

• enhanced monitoring obligations; or

• communication with Host Party authorities.

1. Failure to disclose serious incidents constitutes material non-compliance.

13.10 Grievance Mechanism and Community Complaints

1. The PCS Secretariat shall maintain a grievance mechanism through which communities, individuals, and organizations may report concerns related to SDG performance or safeguard violations. Complaints shall be evaluated according to their severity, credibility, and potential impacts.

2. The Project Proponent shall cooperate fully in the investigation of grievances and shall implement corrective actions as required. Where grievances reveal systemic or significant issues, the Secretariat may initiate enforcement actions under Sections 13.6 to 13.8.

13.11 Appeals and Reconsideration

1. Project Proponents may appeal enforcement decisions in accordance with the PCS Appeals Procedure. Appeals shall be based on:

• errors in interpretation of PCS requirements;

• errors in procedural fairness;

• new evidence that materially affects the decision; or

• demonstrable inconsistencies in enforcement.

1. The appeal shall be reviewed by the PCS Regulatory Committee or an independent panel designated for this purpose. Decisions of the Committee shall be final.

13.12 Publication of Enforcement Actions

1. Consistent with PCS transparency requirements, all enforcement decisions—including suspensions, revocations, and material findings—shall be published in the PCS Registry except where disclosure would violate legal obligations or confidentiality provisions. The objective of public disclosure is to maintain integrity and deter misconduct.

13.13 Restoration of Good Standing

1. Projects that have addressed non-compliance may request a restoration of Good Standing. Restoration requires:

• full implementation of corrective measures;

• verification by a VVB or independent auditor;

• approval by the PCS Secretariat; and

• confirmation that no new risks remain outstanding.

1. Once restored, a project may resume reporting SDG contributions and may be considered for SDG Label reinstatement or upgrade following successful verification.

Chapter 14 - Definitions

1. For the purposes of this Standard, the following terms shall have the meanings assigned to them below. Where definitions in this chapter conflict with those established in the PCS Program Definitions Document (once issued), the definitions in the PCS Program Definitions shall prevail.

2. Sustainable Development Goals (SDGs) The United Nations Sustainable Development Goals as adopted under the 2030 Agenda for Sustainable Development, comprising 17 goals and associated targets and indicators that guide global development priorities. For PCS, SDG contributions refer to measurable, verifiable improvements that can be causally attributed to the project.

3. SDG Contribution A material, attributable, and verifiable improvement associated with one or more SDGs resulting from project activities. Contributions may occur at the output, outcome, or impact level, but only outcome- and impact-level improvements may be used for PCS SDG Label eligibility.

4. SDG Indicator A measurable parameter used to monitor and report progress toward an SDG contribution. Indicators must be quantifiable wherever feasible, attributable to the project, and supported by acceptable evidence.

5. SDG Baseline The conditions existing before the implementation of the project against which SDG contributions during the crediting period are assessed. Baselines shall be derived from reliable data sources and described in sufficient detail to ensure comparability during verification.

6. SDG Monitoring Plan A structured plan describing how SDG indicators will be monitored throughout the crediting period, including data sources, methodologies, frequency of data collection, and quality assurance and control measures.

7. PCS Safeguards The set of environmental, social, community, and governance protections established under this Standard to prevent or mitigate adverse impacts associated with project activities. All PCS projects must demonstrate compliance with these safeguards as a condition for registration and issuance.

8. Environmental and Social Management Plan (ESMP) A documented plan prepared by the Project Proponent describing the mitigation measures that will be implemented to address identified environmental and social risks. The ESMP shall outline responsibilities, timelines, monitoring requirements, and corrective-action mechanisms.

9. Safeguard Risk Classification The four-tier system used by PCS to categorize the severity of safeguard risks: Low, Moderate, Substantial, and High. The classification determines the extent of mitigation measures required and the project’s eligibility to proceed under PCS.

10. Outcome-Level Contribution A change in conditions, behaviors, or service delivery resulting from project outputs. Outcome-level contributions demonstrate tangible improvements beyond immediate project outputs and are eligible for PCS SDG Label claims.

11. Impact-Level Contribution A long-term, sustained improvement in socio-economic or environmental conditions attributable to project activities. Impact-level contributions may include improvements in health, income, resilience, biodiversity, or ecosystem conditions. These contributions are required for higher-tier PCS SDG Labels.

12. Stakeholder Any individual, group, community, organization, or authority that may be affected, directly or indirectly, by a project or its SDG contributions. Stakeholders may include affected communities, Indigenous peoples, workers, local authorities, civil society organizations, and vulnerable populations.

13. Stakeholder Consultation A formal process through which the Project Proponent engages with stakeholders to obtain their views, concerns, and feedback regarding project activities, safeguard risks, and anticipated SDG contributions. Stakeholder consultation must be undertaken prior to validation and documented in accordance with this Standard.

14. Grievance Mechanism A formal mechanism established by the Project Proponent to receive, document, and address concerns or complaints raised by stakeholders. The mechanism must be accessible, transparent, and responsive to community needs.

15. Verification Body (VVB) An independent, accredited entity responsible for validating the SDG Assessment at registration and verifying SDG performance during monitoring. The VVB shall operate in accordance with PCS-STD-004 and applicable ISO standards.

16. Monitoring Report A report prepared by the Project Proponent for each monitoring period, containing data and analysis relating to SDG indicators, safeguard performance, and any changes to project operations. The Monitoring Report forms the basis for verification of SDG contributions.

17. Verification Report A report prepared by the VVB documenting the results of the verification of SDG contributions, including assessment of indicators, evidence reviewed, safeguard compliance, and recommendations regarding SDG Label eligibility.

18. Corrective Action Plan A plan prepared by the Project Proponent in response to identified non-compliance. It shall describe corrective measures, timelines, responsible parties, and methods for demonstrating compliance.

19. Non-Compliance Any deviation from the requirements of this Standard, including inaccurate reporting, failure to implement safeguard measures, inadequate monitoring, or failure to provide access to information. Non-compliance may be classified as material, minor, or an observation.

20. PCS SDG Label A classification assigned by the PCS Secretariat reflecting the level of verified SDG contributions achieved by a project. The label may be awarded at three tiers—Basic, Enhanced, and Leadership—based on the criteria defined in this Standard.

21. Material Non-Compliance A serious breach of requirements that undermines the credibility of SDG contributions or safeguard integrity. Material non-compliance requires immediate corrective action and may result in suspension or revocation of SDG Labels or issuance rights.

22. Minor Non-Compliance A deviation from requirements that does not materially affect SDG integrity but must be addressed before the next verification cycle.

23. Observation A potential improvement or risk that does not currently constitute non-compliance but should be monitored to prevent future issues.

24. PCS Registry The digital platform operated under PCS, supported by blockchain-based mechanisms ensuring transparency, traceability, and immutability of project data, including SDG assessments, monitoring data, verification findings, safeguard records, and SDG Labels.

25. Evidence (for SDG Verification) Any data, record, observation, or document used to substantiate SDG contributions. Evidence may include primary measured data, field records, operational logs, stakeholder surveys, external studies, or government statistics, provided it satisfies PCS data-quality requirements.

26. Host Party The country or jurisdiction in which a PCS project is implemented. The Host Party may impose additional safeguard, consultation, or reporting requirements applicable to SDG contributions.

27. High-Impact Claims SDG claims involving substantial, long-term or transformational outcomes that materially affect communities or ecosystems. Such claims require enhanced evidence and verification, and may be subject to additional review by the PCS Secretariat.

28. Transformational Outcomes Sustained changes at scale that significantly alter socio-economic or environmental conditions beyond the immediate project boundary. Transformational outcomes are typically required for eligibility under the PCS SDG Leadership Label.

Annex 1 - SDG Indicator Guidance Table (Informative)

This annex provides an indicative set of SDG indicators commonly applicable to mitigation activities under PCS. Project Proponents may select from these indicators or propose alternatives where justified by context and supported by evidence.

Table A1 – Illustrative SDG Indicators for PCS Projects

SDG	Relevant Target(s)	Indicative Indicator Examples
SDG 3: Good Health & Well-Being	3.9	Reduction in indoor air pollution levels; reduction in respiratory symptoms; decreased exposure to harmful fuels
SDG 5: Gender Equality	5.4	Reduced time spent by women collecting fuel or water; enhanced role of women in project governance
SDG 6: Clean Water & Sanitation	6.1, 6.3	Volume of clean water provided; reduction in waterborne diseases; water quality improvements
SDG 7: Affordable & Clean Energy	7.1, 7.2	Number of households with improved energy access; renewable electricity generated
SDG 8: Decent Work & Economic Growth	8.3	Employment generated; worker training provided; local procurement impacts
SDG 9: Industry, Innovation & Infrastructure	9.4	Improved industrial efficiency; introduction of clean technologies
SDG 12: Responsible Consumption & Production	12.5	Waste treated or diverted; recycling rates; reduction in chemical use
SDG 13: Climate Action	13.1	Local adaptation benefits; capacity-building outcomes
SDG 15: Life on Land	15.1, 15.2	Area of restored ecosystems; biodiversity indices; forest condition metrics

These indicators are not exhaustive. Projects may introduce alternative or additional indicators provided they are measurable, attributable to the project, and aligned with internationally accepted SDG frameworks.

Annex 2 - Safeguard Risk Classification Framework (Normative)

This annex outlines the risk classification system used to categorize safeguard risks identified during SDG assessments. It must be applied consistently across all PCS projects.

Risk Categories and Definitions

Risk Category	Definition
Low Risk	Impacts are negligible or easily mitigated with standard project practices.
Moderate Risk	Impacts are limited in scale and can be mitigated with targeted interventions and monitoring.
Substantial Risk	Impacts may be significant and require comprehensive mitigation, stakeholder oversight, and monitoring.
High Risk	Impacts are severe, irreversible, or widespread; projects may not proceed without substantial redesign.

Application Requirements

• Projects with moderate or substantial risks must submit a detailed Environmental & Social Management Plan.

• Projects with high unmitigated risks cannot proceed.

• Risk classification must be validated by the VVB and reviewed by the PCS Secretariat.

Annex 3 - Requirements for Stakeholder Engagement Documentation (Normative)

This annex specifies the minimum documentation required to demonstrate meaningful stakeholder engagement.

Required Components

1. Stakeholder Identification List — Including community members, local authorities, affected groups, vulnerable populations, Indigenous communities, labor representatives.

2. Engagement Methods and Evidence — Evidence of public meetings, consultations, interviews, focus groups, or virtual engagement tools.

3. Consultation Materials — Copies of presentations, project documents shared, and translated materials where applicable.

4. Feedback Summary Matrix — A record demonstrating how stakeholder comments were received, analyzed, and incorporated.

5. Attendance Records — Sign-in sheets, photographs, and any verification of stakeholder presence.

6. Grievance Mechanism Documentation — Evidence of the project’s mechanism for receiving, documenting, and resolving grievances.

This documentation shall accompany the SDG assessment at registration and shall be made available during verification.

Annex 4 - Evidence Requirements for SDG Verification (Normative)

Verification requires the submission of evidence demonstrating the accuracy and reliability of SDG contributions. This annex categorizes acceptable evidence types.

Evidence Categories and Requirements

Evidence Category	Description and Requirements
Primary Measured Data	Instrument readings, monitoring equipment records, remote sensing outputs. Must include timestamps and calibration records.
Operational Records	Logs, maintenance records, operational data from facilities or equipment. Must be generated during project operation.
Field Surveys & Interviews	Community surveys, health assessments, user feedback datasets. Must include sampling protocols.
Independent Assessments	External evaluations, laboratory tests, academic studies. Must be relevant and methodologically sound.
Government or Agency Statistics	Data from national or local agencies. Must reflect conditions relevant to the project boundary.
Project Documentation	Internal records supporting outputs or outcomes. Must demonstrate consistency with other evidence.

Evidence must be sufficient to substantiate claimed SDG outcomes and shall be reviewed for completeness, consistency, and reliability during verification.

Annex 5 - PCS SDG Label Eligibility Summary Table (Informative)

This annex provides a consolidated summary of the eligibility requirements for each PCS SDG Label tier.

Table A5 – PCS SDG Label Requirement Summary

Label Tier	Minimum SDGs	Contribution Level	Monitoring Requirements	Verification Requirements
PCS SDG Basic	≥ 2	Outcome-Level	Annual monitoring	Standard verification cycle
PCS SDG Enhanced	≥ 4	≥ 1 Impact-Level	Quantitative monitoring for all SDGs	Third-party verification of all indicators
PCS SDG Leadership	≥ 6	≥ 2 Impact-Level	Advanced digital monitoring; trend analysis	Enhanced verification; Secretariat review

This table is for reference only; full criteria are detailed in Chapter 7.