Understanding ISO 14068: A Sustainable Future with Carbon Neutrality

The transition from PAS 2060 to ISO 14068 occurred on 1^st January 2025. The change marks a focal moment for sustainability frameworks and carbon reduction strategies. This standard provides a robust framework for measuring, managing, and reporting greenhouse gas (GHG) emissions. In this article, we will explore the intricacies of ISO 14068, the difference between PAS 2060 and ISO 14068, its implications for businesses, and the pathway to achieving carbon neutrality.

What is ISO 14068?

ISO 14068 is an international standard focused on climate change management, specifically addressing the transition to carbon neutrality. Published in November 2023 and introduced in January 2025, it replaces the previous PAS 2060 framework, establishing a more rigorous and scientifically validated approach to carbon neutrality claims. This standard is designed to help organisations quantify the carbon footprints of their organisation or product, implement reduction strategies, and engage in offsetting practices where necessary.

The Importance of ISO 14068

The significance of ISO 14068 lies in its structured methodology for achieving genuine carbon neutrality. By prioritising emission reductions over offsetting, it aligns with global climate goals, such as those outlined in the Paris Agreement. This standard enhances the credibility of carbon neutrality claims and promotes a culture of transparency and accountability within organisations.

Key Principles of ISO 14068

ISO 14068 is built upon several core principles:

• Quantification of Emissions: Organisations are required to systematically measure their GHG emissions across all operations by following key standards, including ISO 14064-1 for organisational-level quantification and reporting, ISO 14067 for product carbon footprint assessment..
• Reduction Focus: The standard emphasises the importance of reducing emissions at the source based on science-based targets before considering offsetting.
• Transparent Reporting: Companies must provide clear and comprehensive reports on their carbon management efforts, ensuring third-party verification in accordance with ISO 14064-3. .
• Quality Offsetting: When offsetting is necessary, it should be done using high-quality, certified carbon credits that meet specific criteria for real, additional, measurable, and permanent GHG emission reductions or removals.

Transitioning from PAS 2060 to ISO 14068

As ISO 14068 takes precedence, organisations currently relying on PAS 2060 must prepare for a significant transition. Effective from 1^st January 2025, PAS 2060 is no longer applicable for new carbon neutrality claims. This transition period allows businesses to adapt their strategies and align with the new standard.

Understanding the Differences

While PAS 2060 primarily focused on demonstrating carbon neutrality through carbon offsets, ISO 14068 adopts a more comprehensive approach. It integrates net zero ambitions, urging organisations to prioritise substantial emissions reductions within their value chains. This shift is crucial for aligning corporate strategies with global climate objectives.

Preparing for the Change

To successfully transition from PAS 2060 to ISO 14068, organisations should consider the following steps:

1. Conduct a Gap Analysis: Assess current practices against the requirements of ISO 14068 to identify areas for improvement.
2. Implement Science-Based Targets: Establish ambitious yet achievable GHG reduction targets that align with global net zero goals. These targets should be based on the latest climate science to ensure that the targets are consistent with the pathways needed to limit global warming to 1.5°C and support the transition to net zero emissions.
3. Enhance Reporting Practices: Develop transparent reporting mechanisms that facilitate third-party verification of carbon neutrality claims.
   
   

The Framework of ISO 14068

ISO 14068 provides a structured framework that organisations can utilise to navigate their carbon neutrality journey effectively. The standard comprises several key components that guide entities in their efforts to achieve and demonstrate carbon neutrality.

Emission Quantification

At the heart of ISO 14068 is the requirement for organisations to quantify their GHG emissions. This involves:

• Creating a GHG Inventory: This is the inventory that calculates the business's carbon footprint aligned with the ISO14064-1 and the GHG Protocol.
• Identifying Emission Sources: Recognising direct and indirect emission sources within the organisation's operations.
• Data Collection: Gathering accurate data on energy consumption, production processes, transportation activities, and any other business activities.

• Calculating Emissions: Using established methodologies to calculate total emissions based on collected data.
• Offsetting Remaining Emissions: Using high-quality, certified carbon credits to offset any remaining emissions. The criteria for carbon credits should ensure they are real, additional, measurable, and permanent.
• Creating a GHG Report: This report showcases the organisation’s carbon footprint, comparing it to the baseline year, and presents the offset certificates for carbon neutrality. For certification, BSI will audit this report. Tunley’s external verification service ensures that it passes.

Develop a Carbon Neutrality Management Plan

Once emissions are quantified, organisations must prioritise reduction strategies in a robust Carbon Neutrality Management Plan. This includes:

• Setting Reduction Targets: Establishing specific, measurable targets for emissions reduction aligned with scientific recommendations.
• Developing a Carbon Neutrality Pathway: Creating a detailed pathway that outlines the steps and timelines for achieving carbon neutrality. This pathway should include short-term and long-term targets, as created above, with specified dates for achieving significant milestones.
• Implementing Energy Efficiency Measures: Identifying and deploying technologies and practices that enhance energy efficiency across operations.
• Engaging Stakeholders: Collaborating with employees, suppliers, and customers to promote sustainable practices throughout the value chain.
• Monitoring and Reporting: Establishing procedures for regular monitoring and reporting of progress. This includes maintaining documented information and making carbon neutrality reports publicly available.
• Ensuring Continual Improvement: Regularly reviewing and updating the carbon neutrality management plan to reflect new scientific knowledge, technological advancements, and changes in organisational structure or activities. This ensures ongoing improvement in GHG management and reduction efforts.

Offsetting Practices

While the focus is on reduction, ISO 14068 acknowledges that some emissions must be offset to achieve carbon neutrality. Initially, this involves offsetting unavoidable and residual emissions. As organisations transition towards net zero, they must prioritise reducing emissions as much as feasibly possible, using offsetting only for the remaining residual emissions. This approach ensure that once carbon neutrality is achieve, organisations continue to reduce emissions and work towards the ultimate goal of net zero emissions. Along the journey from carbon neutrality to net zero emissions, organisations must engage in offsetting practices:

• Choosing High Quality Offsets: Ensuring that any carbon credits purchased are certified and represent genuine emission reductions.
• Supporting Local Projects: Investing in local carbon offset projects that contribute to community sustainability and development.
  
  

Benefits of Adopting ISO 14068

The adoption of ISO 14068 offers numerous advantages for organisations committed to sustainability. These benefits extend beyond compliance and can enhance overall business performance.

Enhanced Credibility

By adhering to ISO 14068, organisations can enhance the credibility of their carbon neutrality claims. This is achieved through:

• Third-Party Verification: Engaging independent consultants to verify emissions data and reduction efforts.
• Transparent Reporting: Providing stakeholders with clear, accessible information about carbon management practices.

Competitive Advantage

Organisations that demonstrate a commitment to sustainability can differentiate themselves from competitors. Benefits include:

• Attracting Consumers: Many consumers prefer to support brands that prioritise environmental responsibility.
• Improving Investor Relations: Investors are increasingly seeking companies with robust sustainability practices, making ISO 14068 compliance an attractive proposition.
• Staying Ahead of Competitors: Promoting your carbon reduction plans to your audience can boost engagement with your brand and position you ahead of your competition.
• Procurement Opportunities: Many procurement frameworks now list carbon reduction plans on their requirements. Having a plan will help to qualify for procurement opportunities.
  
  

Training and Support for ISO 14068 Implementation

Successful implementation of ISO 14068 requires adequate training and support for staff across all levels of the organisation. This ensures that everyone understands their role in achieving carbon neutrality.

ISO 14068 Training Programmes

Organisations can benefit from tailored training programmes designed to equip employees with the necessary skills and knowledge. These programmes typically cover:

• Understanding the Standard: Familiarising staff with the principles and requirements of ISO 14068.
• Emission Measurement Techniques: Teaching employees how to accurately measure and report GHG emissions.
• Reduction Strategies: Providing insights into effective emission reduction techniques and best practices.

Ongoing Support

In addition to training, organisations may seek ongoing support to navigate the complexities of ISO 14068 implementation. This can include:

• Consultation Services: Engaging experts to provide guidance on best practices and compliance strategies.
• Resource Materials: Accessing toolkits, templates, and guidelines to facilitate the implementation process.

Challenges in Implementing ISO 14068

While ISO 14068 provides a clear pathway to carbon neutrality, organisations may encounter several challenges during implementation. Recognising these obstacles can help in developing effective strategies to overcome them.

Data Collection Difficulties

Accurate data collection is essential for effective emissions management. Challenges may include:

• Inconsistent Data Sources: Variability in data quality and availability across different departments or locations.
• Resource Constraints: Limited personnel or budget to dedicate to data collection and analysis efforts.

Resistance to Change

Cultural resistance within an organisation can hinder the adoption of new practices. Strategies to address this include:

• Engaging Leadership: Securing buy-in from senior management to champion sustainability initiatives.
• Communicating Benefits: Clearly articulating the advantages of ISO 14068 compliance to all employees.

We help our clients overcome cultural resistance by securing buy-in from senior management, empowering them to champion sustainability initiatives, and crafting clear, compelling messaging that highlights the tangible benefits of ISO 14068 compliance. This approach ensures leadership alignment and employee understanding, creating a unified workforce ready to embrace sustainable practices.

Alignment with Global Climate Goals

ISO 14068 is designed to align with international climate initiatives, such as the Paris Agreement. As countries and organisations commit to ambitious emissions reduction targets, the standard will serve as a vital tool for achieving these goals.

Continuous Improvement

ISO 14068 encourages organisations to adopt a mindset of continuous improvement in their carbon management practices. This includes:

• Regular Reviews: Conducting yearly re-audits of emissions performance and reduction strategies.
• Adapting to New Technologies: Staying informed about advancements in carbon management technologies and practices.

The Bottom Line

ISO 14068 represents a significant advancement in the pursuit of carbon reduction and carbon neutrality. The updated BSI standard provides a structured framework for measuring, managing, and reporting GHG emissions, it enables organisations to take meaningful action towards sustainability. As businesses transition from PAS 2060 to ISO 14068, they will enhance their credibility and contribute to global efforts to combat climate change. With the right training, support, and technology, organisations can successfully navigate this transition and make a lasting impact on the environment.