ISO 14068 is the forthcoming international standard for verifying carbon neutrality, set to replace the widely used PAS 2060:2014 standard in 2024. This standard establishes comprehensive guidelines for organisations to accurately measure, manage, and verify their carbon neutrality claims, ensuring transparency and consistency in global carbon accounting practices.

Understanding ISO 14068

What is ISO 14068?

ISO 14068 is an international standard currently in development that will serve as the definitive framework for organisations to verify their carbon neutrality claims. Published in 2024, ISO 14068 will supersede PAS 2060:2014, which has been the leading standard for demonstrating carbon neutrality. The transition to ISO 14068 reflects the growing need for a globally harmonised approach to carbon management, providing more rigorous and standardised guidelines for organisations across various sectors.

ISO 14068 is part of the broader ISO 14000 family of environmental management standards, which focus on various aspects of environmental sustainability, including environmental management systems, lifecycle assessment, and greenhouse gas accounting. The introduction of ISO 14068 will align carbon neutrality verification with these established standards, ensuring a comprehensive and integrated approach to managing environmental impacts.

The Significance of ISO 14068 for Carbon Neutrality

A Unified Global Standard

One of the key objectives of ISO 14068 is to establish a unified global standard for verifying carbon neutrality. As organisations around the world increasingly commit to achieving carbon neutrality as part of their sustainability strategies, the need for a consistent and credible standard has become more pressing. ISO 14068 addresses this need by providing clear, internationally recognised guidelines for measuring, managing, and offsetting carbon emissions.

For example, a global corporation with operations in multiple countries would benefit from ISO 14068 as it ensures that their carbon neutrality claims are verified using the same criteria, regardless of where the operations are located. This consistency helps to build trust among stakeholders, including investors, customers, and regulators, by ensuring that carbon neutrality claims are credible and comparable across different markets.

Enhanced Transparency and Accountability

ISO 14068 places a strong emphasis on transparency and accountability in carbon neutrality claims. The standard requires organisations to provide detailed and transparent information about how they measure their greenhouse gas (GHG) emissions, what strategies they have implemented to reduce these emissions, and how any remaining emissions are offset. This transparency is crucial for building stakeholder confidence and ensuring that carbon neutrality claims are not just a marketing exercise but reflect genuine environmental commitment.

For instance, a UK-based financial services firm that adopts ISO 14068 would be required to disclose comprehensive information about its GHG emissions, including direct emissions (Scope 1), indirect emissions from purchased energy (Scope 2), and significant indirect emissions from its value chain (Scope 3). By adhering to these stringent reporting requirements, the firm can demonstrate that its carbon neutrality claim is based on thorough and credible data, enhancing its reputation as a responsible and transparent organisation.

The Transition from PAS 2060:2014 to ISO 14068

Why the Transition is Necessary

PAS 2060:2014 has been the benchmark for carbon neutrality verification for over a decade, providing organisations with a structured process for declaring carbon neutrality. However, as global climate policies have evolved and the urgency of addressing climate change has intensified, the limitations of PAS 2060 have become more apparent. ISO 14068 was developed to address these limitations by providing a more comprehensive and internationally recognised framework that reflects the latest developments in carbon management and environmental science.

The transition from PAS 2060 to ISO 14068 is also driven by the need for greater consistency in how carbon neutrality is verified across different regions and sectors. While PAS 2060 has been widely adopted, it is a Publicly Available Specification (PAS) rather than a full ISO standard, meaning it lacks the same level of global recognition and acceptance as ISO standards. ISO 14068 will provide a more robust and widely accepted standard, ensuring that carbon neutrality claims are held to the highest possible standard globally.

What to Expect from ISO 14068

Organisations transitioning from PAS 2060 to ISO 14068 can expect new and enhanced requirements that reflect the latest best practices in carbon management. These include more detailed guidelines for calculating and reporting GHG emissions, stricter criteria for carbon offsets, and enhanced requirements for continuous improvement in emissions reduction.

For example, under ISO 14068, organisations may be required to use more advanced methodologies for measuring Scope 3 emissions, which often represent the largest share of an organisation’s carbon footprint. Additionally, the standard is expected to place greater emphasis on the quality of carbon offsets, ensuring that they are verifiable, permanent, and aligned with global carbon reduction goals.

The transition to ISO 14068 will also involve a shift towards more rigorous third-party verification processes. Organisations will need to work closely with independent auditors to ensure that their carbon neutrality claims are fully compliant with the new standard. This increased scrutiny will help to prevent greenwashing and ensure that carbon neutrality claims are based on robust and credible evidence.

The Importance of ISO 14068 for Businesses

Mitigating the Risks of Greenwashing

As companies increasingly use carbon neutrality as a key component of their sustainability branding, the risk of greenwashing—making misleading or unsubstantiated environmental claims—has grown. ISO 14068 addresses this risk by providing a clear and rigorous framework for verifying carbon neutrality, ensuring that companies cannot simply claim to be carbon neutral without providing credible and transparent evidence.

For example, a UK retail company that claims carbon neutrality under ISO 14068 will need to ensure that all aspects of its carbon management strategy are thoroughly documented and independently verified. This includes not only the measurement of GHG emissions but also the quality and impact of carbon offsets. By adhering to ISO 14068, the company can protect itself from accusations of greenwashing and build stronger relationships with environmentally conscious consumers.

Supporting Long-Term Sustainability Goals

ISO 14068 is designed to support organisations in achieving long-term sustainability goals by encouraging continuous improvement in carbon management. The standard requires organisations to not only offset their remaining emissions but also to implement ongoing strategies for reducing emissions over time. This focus on continuous improvement ensures that organisations are not just achieving carbon neutrality as a one-time goal but are actively working towards reducing their overall environmental impact.

For instance, a manufacturing firm that adopts ISO 14068 might implement a range of initiatives to reduce its carbon footprint, such as investing in renewable energy, improving energy efficiency, and optimising supply chain operations. By integrating these initiatives into its overall business strategy, the firm can ensure that it continues to reduce its emissions and contribute to global sustainability efforts, even after achieving carbon neutrality.

Enhancing Global Competitiveness

In an increasingly globalised market, companies that adhere to internationally recognised standards like ISO 14068 are likely to gain a competitive advantage. As more businesses and consumers demand transparency and accountability in environmental claims, organisations that can demonstrate compliance with ISO 14068 will be better positioned to attract investment, build brand loyalty, and expand into new markets.

For example, a UK technology company that achieves carbon neutrality under ISO 14068 can leverage this certification to enhance its reputation and differentiate itself from competitors. The company can use its ISO 14068 certification to demonstrate its commitment to sustainability in tenders, marketing materials, and investor communications, helping to secure new business opportunities and attract ESG-focused investors.

Preparing for ISO 14068

Review and Strengthen Carbon Management Practices

To prepare for the adoption of ISO 14068, organisations should review and strengthen their carbon management practices. This includes reassessing how GHG emissions are measured, ensuring that all relevant sources are accounted for, and updating carbon reduction strategies to align with the new standard’s requirements. Companies should also evaluate the quality of their carbon offsets and consider investing in higher-quality offsets that meet the stricter criteria of ISO 14068.

For example, a UK-based construction company might conduct a comprehensive review of its carbon footprint, identifying areas where emissions can be reduced and ensuring that all offsets used are certified under recognised international standards. By taking these steps, the company can ensure that its carbon neutrality claims are fully compliant with ISO 14068 and that it is well-positioned for the transition.

Engage with Stakeholders and Communicate the Transition

As businesses transition to ISO 14068, it is important to engage with stakeholders and communicate the changes clearly and transparently. This includes informing customers, investors, employees, and other stakeholders about the transition, explaining what the new standard entails, and highlighting how it enhances the credibility and accuracy of carbon neutrality claims.

For instance, a UK financial institution might issue a communication to its stakeholders explaining that it is transitioning from PAS 2060 to ISO 14068 and outlining the benefits of the new standard. The institution could also provide updates on how it is enhancing its carbon management practices to meet the requirements of ISO 14068, helping to build trust and demonstrate its commitment to sustainability.

Why Choose ESG Pro Limited?

At ESG Pro Limited, we specialise in helping companies transition to ISO 14068 and develop robust carbon management strategies. Our team of expert ESG consultants provides comprehensive support in GHG emissions measurement, carbon offset verification, and third-party audits, ensuring that your business is fully prepared for the adoption of ISO 14068.

• Expertise in GHG carbon emissions reporting and compliance with ISO 14068
• Tailored solutions for transitioning from PAS 2060 to ISO 14068
• Strategic guidance to enhance transparency, accuracy, and credibility in carbon neutrality claims

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