ISO Announces New Net Zero Standard at London Climate Action Week
At the end of June, at London Climate Action Week, it was announced that the International Organisation for Standardisation (ISO) would publish a new Net Zero Standard. This is expected to be launched in November 2025 at COP30, with a public consultation period set to open earlier that year. Though the drafting process is being led by the British Standards Institution (BSI) in collaboration with ICONTEC, Columbia’s National Standards Body, there will be collaboration and input from over 170 countries through various national standards bodies.
Significance of the ISO Net Zero Standard
ISO accreditation has become synonymous with responsible corporate environmental practices, hence the announcement of a Net Zero ISO Standard garnering widespread attention of the sustainability community. ISO has already developed a set of internationally recognised environmental standards for businesses, the most notable of which is ISO 14001, the standard for Environmental Management Systems. However, it has also developed standards for measuring carbon footprints for both products (ISO 14067) and for organisations (ISO 14064-1). These standards were developed to be both universal and robust and can be independently verified by external auditors. As a result, the uptake of ISO standards has been hugely successful, with over 500,000 certifications in ISO 14001 across more than 180 countries globally.
ISO Net Zero Standard to Build on Existing Guidelines
The forthcoming standard will build upon the ISO Net Zero Guidelines established in 2022, known as IWA 42:2022. It is essential to understand that we already have a good sense of what these Standards will look like, given that in 2022, ISO already published a set of Guidelines on Net Zero (IWA 42:2022). This publication includes standard definitions, ten overarching principles for Net Zero target setting, and actionable guidance for companies achieving these targets by 2050 at the latest. This was widely well received when it was first published but needed more specifics that organisations ultimately require when looking to set their own Net Zero targets. For example, on target setting, the Guidelines have broad comments such as stating that targets should cover Scope 1, 2 and 3 emissions and that targets should be “consistent with 50 % global GHG emissions reductions by 2030 (from a 2018 global baseline), achieving net zero by 2050 at the latest”. These sorts of statements provide clear boundaries but lack detail. For example, regarding sector-specific targets, the Guidance recommends setting interim and long-term targets in line with sector-specific science-based pathways. However, the publication only provides a handful of specific examples for 2050 reduction targets rather than a comprehensive set of detailed requirements for each sector. Notably, these examples come from the Science-Based Targets Initiative (SBTi) Net Zero sector-specific standards, which hopefully suggests potential future collaboration between the two organisations.
“The announcement of the new ISO Net Zero Standard is a significant milestone in global sustainability efforts. At Net Zero Now, we align closely with these international standards, ensuring that our protocols not only meet but also elaborate on the rigorous criteria set by bodies like ISO. This new standard will provide clearer guidelines for businesses, helping them achieve credible Net Zero solutions” - Harry Llewellyn, Climate Research Manager at Net Zero Now, commented.
Relationship Between SBTi and ISO Net Zero Standards
SBTi Corporate Net Zero Standard, published in 2021, is generally considered the leader in Net Zero target setting for companies globally. However, recent backlash over its announcement earlier this year that it was considering loosening its requirements on Scope 3 offsetting has caused some reputational backlash. As covered in a separate blog, SBTi is still iterating and improving on its own Net Zero standard. Still, there must be an explicit acknowledgement and collaboration between the two organisations as their standards develop in parallel. To date, there have been no formal statements from either body addressing this relationship. However, the ISO Net Zero Guidelines’ use of the SBTi Net Zero sector-specific 2050 reduction targets is an indication that there will be likely collaboration across the two standards. Fundamentally, they are both based on the science behind aligning with 1.5 °C pathways, and they both have the same overall objective in mind. However, there may still be minor differences in the detailed requirements. For example, the ISO Guidelines advise companies to set interim targets every 2 to 5 years, whereas SBTi requires interim targets only to be set 5 to 10 years from the baseline year. Though ISO may change this to align with SBTi or visa-versa, there will likely be these sorts of discrepancies throughout the two standards. This will present a challenge when developing these ISO Standards since the first of the ten principles set out in the ISO Net Zero Guidelines is Alignment, which should include aligning with the existing SBTi Net Zero Standard.
Future Prospects for the ISO Net Zero Standard
There is an opportunity for the ISO Net Zero Standard to build on the great work that SBTi has already done to define what Net Zero means for companies across a range of sectors in alignment with science-based reduction pathways. By acknowledging the credible work done already by SBTi, hopefully, what ISO can offer is the ability to offer clarity in areas of confusion, such as offsetting residual emissions, as well as drawing on its extensive global reach to ensure accelerated global uptake of Net Zero target setting. Long-term, as is the case with other ISO standards, it would be a huge step forward if Net Zero targets for both ISO and SBTi were able to be accredited by independent third parties, as this would accelerate the implementation of corporate Net Zero target setting worldwide.
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