ISO 14068-1: Transitioning to the New Carbon Neutrality Standard in 2025

The carbon neutrality landscape is undergoing a significant transformation as PAS 2060, the widely-used British standard, makes way for ISO 14068-1, a more robust international standard. The ISO Standard replaces PAS 2060 from 1st January 2025 and represents more than just a change in documentation – it signals a fundamental shift in how organisations approach and validate their carbon neutral claims.

What is ISO 14068-1?

ISO 14068-1 is an international standard that provides organisations with a framework to achieve carbon neutrality. It outlines the process of measuring greenhouse gas emissions, implementing reduction strategies, and using verified carbon offsetting to reach Net Zero emissions. 

Historically, the term "carbon neutral" lacked a universally agreed-upon definition, and the PAS standard suffered from several key deficiencies, leading to confusion and potentially misleading claims. ISO 14068-1 addresses this by providing a globally recognised framework, ensuring greater clarity and rigour in demonstrating genuine carbon neutrality achievements.

A cornerstone of ISO 14068-1 is the establishment of a clear hierarchy: Reduce, Remove, Offset. This hierarchy ensures that organisations cannot simply offset their way to neutrality, emphasising the critical importance of genuine emission reductions. Unlike PAS 2060, which permitted carbon neutrality claims based on limited scope and solely on offsets, ISO 14068-1 mandates concrete evidence of emission reductions before any offsetting can be considered.

Key Changes in Carbon Neutrality Reporting

ISO 14068-1 significantly strengthens the requirements for Carbon Reduction Plans (CRPs), now termed 'carbon neutrality management plans'. 

While PAS 2060 outlined five key elements, ISO 14068-1 mandates thirteen, demanding a more comprehensive and rigorous approach.

Key differences in the new CRP requirements include:

1. Carbon Neutrality Pathway and Methodology: The pathway must include three targets: a short-term reduction, a long-term reduction, and a date for eradicating all feasible carbon emissions. Any deviations from accepted science-based methodologies must be explained, and the pathway should be published as part of the carbon neutrality claim.
2. Science-Based Targets: The pathway should follow science-based methods, such as those from the IPCC or SBTi, aligning with the 1.5°C target.
3. Continual Improvement: A continuous reduction in carbon footprint is required in every reporting period, starting from the first year.
4. Public Disclosure: The carbon reduction pathway must be transparently published in any carbon neutrality declaration.
5. No Backdating: Emission reductions made before the reporting period cannot be counted. ISO 14068-1 takes a stricter approach, requiring a formal commitment to carbon neutrality first, with businesses only claiming neutrality after demonstrating reductions.
6. Offsets: Offsets are only permissible after demonstration of reductions.
7. Emission Reduction and Removal Activities: These activities must avoid social or environmental harm, adhering to the "do no harm" principle.

Scope 3 Emissions and Boundary Requirements

ISO 14068-1 mandates comprehensive reporting of Scope 3 emissions, unlike previous standards that often treated value chain emissions as optional. Organisations are now required to conduct a thorough inventory of all upstream and downstream emissions across their entire value chain, quantify and report these emissions, and develop strategies for their reduction.

Stricter Boundary Requirements

ISO 14068-1 introduces stricter guidelines for defining organisational boundaries. The new standard mandates alignment with ISO 14064-1 for organisational boundaries and ISO 14067 for product boundaries. Notably, organisations are now required to provide context regarding their parent company's carbon footprint – a requirement that was previously optional under PAS 2060.

The Role of Offsets in ISO 14068-1

While offsetting remains part of the carbon neutrality toolkit, ISO 14068-1 ensures it complements rather than replaces genuine emissions reductions. Organisations must first demonstrate genuine reductions with offsets used to address remaining emissions. Removals can be considered only after exhausting all feasible internal reduction opportunities. This structured framework reinforces the credibility of carbon neutrality efforts, emphasising substantive climate action and meaningful environmental impact.

Preparing Your Organisation for ISO 14068-1

The new regulated landscape around claims made relating to environmental benefits (Green Claims Code) has made organisations cautious about communicating their climate plans. Compliance with the ISO standard provides exactly the sort of alignment with an external framework that is required under the code and should give businesses confidence in making carbon neutral claims.      

Looking Ahead

The transition to ISO 14068-1 signifies a significant advancement in the evolution of carbon neutrality standards. By mandating real reductions, comprehensive measurement, and robust governance, it ensures that carbon neutral claims carry genuine environmental weight. Embracing these higher standards will not only benefit the planet but also contribute to the development of more efficient, resilient, and successful businesses for the future.

For organisations committed to their environmental impact, the message is clear: proactive preparation for the transition to ISO 14068-1 is crucial. While the new standard may present greater challenges compared to its predecessor, it offers a more credible and transparent pathway to genuine carbon neutrality. In an era where environmental credentials hold increasing importance, this represents a valuable opportunity.

Contact us to learn how your organisation can transition to ISO 14068-1.

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