Carbon neutrality refers to the balance between the amount of greenhouse gas emissions produced and the amount removed from the atmosphere, resulting in a net-zero carbon footprint. The globally recognised standard for verifying carbon neutrality has been PAS 2060:2014. However, this standard is being phased out in 2024, as it is re-designated as ISO 14068, reflecting the evolving landscape of carbon management and verification.

Understanding Carbon Neutrality

What is Carbon Neutrality?

Carbon neutrality is achieved when an organisation, event, or product’s net greenhouse gas (GHG) emissions per the GHG Protocol are equal to zero. This means that the amount of carbon dioxide (CO2) and other GHGs emitted into the atmosphere is balanced by an equivalent amount of carbon removal or offsetting efforts. Achieving carbon neutrality is a key goal for many companies and governments worldwide as part of their broader sustainability and climate action strategies.

The process typically involves three main steps: measuring the carbon footprint, reducing emissions where possible, and offsetting the remaining emissions by investing in projects that remove or capture carbon, such as reforestation, renewable energy projects, or carbon capture and storage technologies. The goal of carbon neutrality is to ensure that activities do not contribute to global warming by balancing emissions with equivalent reductions or removals.

The Role of PAS 2060:2014 in Verifying Carbon Neutrality

What is PAS 2060:2014?

PAS 2060:2014 is the globally recognised standard for demonstrating carbon neutrality. Developed by the British Standards Institution (BSI), PAS 2060 provides a consistent and credible way for organisations to declare their carbon neutrality. It outlines the requirements for quantifying, reducing, and offsetting GHG emissions and includes guidelines for verifying and certifying carbon neutrality claims.

PAS 2060:2014 has been widely adopted by organisations around the world as the gold standard for carbon neutrality. It ensures that companies follow a transparent and robust process when claiming carbon neutrality, including a commitment to continuous improvement in emissions reductions. Verification under PAS 2060 involves independent third-party audits to ensure that all criteria are met, providing confidence to stakeholders that the carbon neutrality claim is genuine and credible.

For example, a UK-based retailer that seeks to achieve carbon neutrality for its operations would use PAS 2060:2014 to measure its carbon footprint, implement emissions reduction strategies, and invest in carbon offsets. The retailer would then undergo an independent verification process to confirm that it has met all the requirements of PAS 2060 before declaring itself carbon neutral.

Transition from PAS 2060:2014 to ISO 14068

Why is PAS 2060:2014 Being Phased Out?

As the landscape of carbon management and climate action evolves, so too do the standards that govern how organisations measure and verify their carbon footprints. PAS 2060:2014 is being phased out in 2024 and re-designated as ISO 14068. This transition reflects the need for a more globally recognised and harmonised approach to carbon neutrality, aligned with the latest developments in climate science and international climate policy.

The move to ISO 14068 is part of a broader effort to standardise carbon neutrality verification across different regions and industries, ensuring consistency and credibility in how carbon neutrality is achieved and reported. ISO standards are internationally recognised and widely adopted, making ISO 14068 the new benchmark for organisations seeking to demonstrate carbon neutrality in a way that meets global expectations.

For companies that have been using PAS 2060:2014, the transition to ISO 14068 will require adjustments to their carbon management strategies and processes. While many of the core principles of PAS 2060 will carry over to ISO 14068, there will be new requirements and guidelines that reflect the latest best practices in carbon accounting, emissions reduction, and verification.

What Does ISO 14068 Mean for Businesses?

ISO 14068 will provide a comprehensive framework for verifying carbon neutrality that is consistent with international standards and practices. This new standard will include updated guidelines for measuring and reporting carbon emissions, implementing reduction strategies, and verifying carbon neutrality claims through third-party audits. It will also place a greater emphasis on transparency, accountability, and continuous improvement in carbon management.

For businesses, adopting ISO 14068 means ensuring that their carbon neutrality claims are aligned with the latest global standards, which can enhance their credibility and reputation in the marketplace. Companies that transition from PAS 2060 to ISO 14068 will need to review and update their carbon management processes, engage with third-party auditors to verify their claims, and communicate their carbon neutrality achievements in a way that meets the new standard’s requirements.

For example, a manufacturing company that has been certified under PAS 2060 will need to update its carbon accounting practices to comply with ISO 14068. This may involve adopting new methodologies for measuring emissions, enhancing its emissions reduction strategies, and ensuring that all carbon offsets meet the stringent requirements set out by the new ISO standard.

The Importance of Accurate Verification and Transparency

Risks of Inadequate Verification

As the transition from PAS 2060:2014 to ISO 14068 takes place, it is crucial for businesses to ensure that their carbon neutrality claims are accurately verified. Inadequate verification or failure to meet the requirements of the new standard could lead to accusations of greenwashing, where companies are perceived as overstating their environmental credentials. This can result in significant reputational damage, loss of consumer trust, and potential legal liabilities.

For example, a company that claims carbon neutrality without following the rigorous verification processes required by ISO 14068 might be exposed to scrutiny from regulators, investors, and environmental groups. If the company’s claims are found to be unsubstantiated, it could face legal challenges and damage to its brand reputation, which can be difficult to recover from.

The Role of Transparency and Continuous Improvement

One of the key principles of both PAS 2060 and the upcoming ISO 14068 is transparency. Companies are expected to provide clear and detailed information about their carbon neutrality claims, including how emissions were measured, what reduction strategies were implemented, and how any remaining emissions were offset. Transparency is essential for building trust with stakeholders and demonstrating a genuine commitment to sustainability.

In addition to transparency, continuous improvement is another critical aspect of carbon neutrality. Businesses are encouraged to not only achieve carbon neutrality but also to continuously reduce their carbon footprint over time. This means regularly reviewing and updating carbon management strategies, investing in new technologies and processes that reduce emissions, and ensuring that carbon offsets are of the highest quality.

For instance, a financial services firm that has achieved carbon neutrality through PAS 2060 might use the transition to ISO 14068 as an opportunity to enhance its emissions reduction efforts, such as by investing in renewable energy or improving energy efficiency across its operations. By demonstrating continuous improvement, the firm can maintain its leadership position in sustainability and build long-term resilience against climate-related risks.

Preparing for the Transition to ISO 14068

Review and Update Carbon Management Processes

To prepare for the transition from PAS 2060 to ISO 14068, businesses should review and update their carbon management processes. This includes reassessing how emissions are measured, ensuring that all relevant sources of GHG emissions are accounted for, and adopting the latest methodologies for carbon accounting and reporting. Companies should also review their emissions reduction strategies to ensure they are aligned with the new standard’s requirements.

For example, a UK-based logistics company that has previously been certified under PAS 2060 might need to update its carbon accounting system to include more detailed data on emissions from transportation and logistics operations. The company might also need to enhance its emissions reduction strategies by adopting cleaner technologies or optimising routes to reduce fuel consumption.

Engage with Third-Party Auditors

Verification by an independent third-party auditor is a key requirement of both PAS 2060 and ISO 14068. To ensure a smooth transition, businesses should engage with third-party auditors early in the process to understand the new requirements and ensure that their carbon neutrality claims are fully compliant with ISO 14068. This may involve working with auditors to review existing carbon management practices, identify gaps, and implement necessary improvements.

For instance, a multinational corporation with operations across multiple countries might engage a third-party auditor to conduct a comprehensive review of its carbon neutrality claims under PAS 2060. The auditor would then provide guidance on the additional steps needed to meet the requirements of ISO 14068, ensuring that the company’s claims remain credible and verifiable under the new standard.

Communicate the Transition to Stakeholders

As businesses transition to ISO 14068, it is important to communicate the changes to stakeholders clearly and transparently. This includes providing updates on how the company is adopting the new standard, what changes are being made to its carbon management practices, and how these changes will enhance the credibility and accuracy of its carbon neutrality claims. Effective communication can help maintain stakeholder trust and demonstrate the company’s ongoing commitment to sustainability.

For example, a UK retailer might issue a press release or update its sustainability webpage to inform customers, investors, and other stakeholders about its transition from PAS 2060 to ISO 14068. The company could highlight the benefits of the new standard, such as increased transparency and more rigorous verification, and provide examples of how it is continuing to reduce its carbon footprint.

Why Choose ESG Pro Limited?

At ESG Pro Limited, we specialise in helping companies navigate the transition from PAS 2060:2014 to ISO 14068. Our team of expert ESG consultants provides comprehensive support in carbon accounting, emissions reduction, and third-party verification, ensuring that your business remains compliant with the latest global standards.

• Expertise in GHG carbon emissions reporting and transition planning from PAS 2060 to ISO 14068
• Tailored solutions to enhance transparency, accuracy, and credibility in carbon neutrality claims
• Strategic guidance to support continuous improvement in carbon management practices

Our team at ESG Pro Limited is committed to helping businesses of all sizes achieve and maintain carbon neutrality in compliance with ISO 14068. With our support, you can ensure that your carbon neutrality claims are verified to the highest standards, building trust with stakeholders and positioning your company as a leader in sustainability.

• Proven track record in delivering successful carbon neutrality strategies
• Strategic guidance to align your business with global carbon management standards
• Ongoing support to ensure continuous improvement and stakeholder engagement