ISO 14068: The Guide to the New Standard for Carbon Neutrality

What Is ISO 14068?

ISO 14068-1 is an international standard that provides a framework for demonstrating and achieving carbon neutrality. It was launched in November 2023 by the International Organization for Standardization (ISO) as part of the ISO 14000 environmental management family. Its full title is ISO 14068-1:2023 – Climate change management – Transition to net zero – Part 1: Carbon neutrality.

ISO 14068-1 officially replaces PAS 2060, the widely used but now retired specification developed by the British Standards Institution (BSI) in 2010. While PAS 2060 offered a way for organizations to claim carbon neutrality, ISO 14068-1 takes this a step further by introducing a more robust, science-aligned, and globally consistent framework.

As PAS 2060 is being phased out, organizations are now encouraged - and in many cases, expected - to transition to ISO 14068-1 for any claims around carbon neutrality.

Why Was ISO 14068 developed?

ISO 14068-1 was released in response to growing global concern around greenwashing, the lack of standardization in carbon neutrality claims, and the increasing pressure for credible climate action. Until now, the absence of a universally accepted international standard for carbon neutrality has led to inconsistency, confusion, and in some cases, misleading environmental claims.

The UN, investors, consumers, and governments are demanding greater accountability and transparency from businesses regarding their environmental impact. ISO 14068-1 was created to provide:

• A standardized approach to defining and achieving carbon neutrality.
• Greater rigor and credibility to carbon neutrality claims.
• A way to align with science-based targets and net zero trajectories.
• A common language for organizations, regulators, and stakeholders.

Ultimately, ISO 14068-1 aims to enhance trust and eliminate vague or misleading carbon neutrality declarations by requiring organizations to follow a structured, transparent process.

How Do You Comply with ISO 14068?

ISO 14068-1 sets out a clear pathway for achieving and claiming carbon neutrality:

1. Measure

Organizations must start by accurately measuring their greenhouse gas (GHG) emissions. This includes:

• Defining organizational and operational boundaries.
• Measuring emissions across Scopes 1, 2, and (at least partially) 3, in line with recognized methodologies (e.g., GHG Protocol).

Providing a credible carbon footprint baseline as the foundation for action.

2. Set Targets

Organizations are required to set time-bound carbon reduction targets aligned with recognized climate science, such as the Paris Agreement goals or Science-Based Targets initiative (SBTi) guidance.

The targets must reflect a pathway to net zero emissions, showing a commitment to long-term, sustained reductions - not just short-term fixes.

3. Develop and Implement a Carbon Reduction Plan

A key requirement of ISO 14068-1 is that organizations must have a detailed GHG reduction plan, including:

• Actions to reduce emissions within their operations and value chain.
• Timelines, responsibilities, and measurable outcomes.
• Regular monitoring and review processes.

This phase emphasizes that offsetting cannot be the main strategy. Real reductions are expected to form the core of any carbon neutrality claim.

4. Offset Residual Emissions

Only after taking all possible steps to reduce emissions should an organization offset its residual (i.e., unavoidable) emissions using high-quality carbon credits.

Offsetting under ISO 14068-1 must meet strict criteria, including:

• Credits must be verified, additional, permanent, and not double-counted.
• Only used for emissions that cannot yet be eliminated through direct action.

Additionally, organizations must be transparent about:

• The quantity and type of credits used.
• The registry or system used for offsets.
• The rationale behind offsetting choices.

This process aligns ISO 14068-1 with best practice principles and ensures that carbon neutrality is not simply a matter of “buying offsets.”

What's The Difference Between ISO 14068 and PAS 2060?

While PAS 2060 laid important groundwork, ISO 14068-1 introduces several key enhancements and differences:

1. ISO 14068’s Scope Requirements

PAS 2060 allowed greater flexibility in terms of which emissions to include.

ISO 14068-1 requires broader inclusion of Scope 3 emissions, especially those that are material or significant.

This shift reflects a more realistic view of an organization’s full climate impact.

2. ISO 14068’s alignment with Net Zero

PAS 2060 focused on achieving a carbon neutral status, sometimes even through 100% offsetting.

ISO 14068-1 emphasizes a transition to net zero, ensuring that neutrality is a stepping stone, not the end goal.

3. ISO 14068’s Role For Offsetting

Under PAS 2060, organizations could claim carbon neutrality largely through offsets.

ISO 14068-1 restricts the role of offsets and insists on genuine reductions first.

4. ISO 14068’s Level of Verification and Transparency

PAS 2060 encouraged transparency but didn’t strictly mandate independent verification.

ISO 14068-1 places a stronger emphasis on independent validation, clear documentation, and ongoing accountability.

How Does Verification Work?

ISO 14068-1 allows for different levels of assurance and verification, depending on how robust and credible the organization wants its claim to be:

• Self-declaration: An organization can declare compliance internally, following all ISO 14068-1 steps and documenting them.
• Third-party validation: For maximum credibility, organizations can seek independent verification from accredited third parties.

Third-party verification involves a comprehensive audit of:

• Emissions calculations.
• Reduction plans and progress.
• Offset quality and integrity.
• Transparency of reporting.

ISO doesn’t mandate third-party assurance, but for most external-facing claims - especially those used in marketing, regulatory filings, or tenders - independent verification is strongly recommended, and increasingly expected.

Why Should You Comply With ISO 14068?

Complying with ISO 14068-1 offers organizations a wide range of strategic, reputational, and operational advantages, including:

1. Credibility and Trust

ISO 14068-1 is the most rigorous carbon neutrality standard currently available. It effectively shields organizations from accusations of greenwashing, helping build trust with customers, investors, and regulators.

2. Tender and Procurement Advantage

Many government and corporate procurement frameworks now require evidence of verified climate action. ISO 14068-1 provides a credible and internationally recognized proof point that can improve an organization’s competitive positioning.

3. Structured Climate Strategy

ISO 14068-1 provides a clear framework for carbon management, helping organizations plan strategically and avoid piecemeal or reactive approaches to decarbonization.

4. Internal Engagement

Following the standard can enhance internal awareness, foster collaboration across departments, and support broader sustainability culture within the organization.

Conclusion

ISO 14068-1 marks a major step forward in climate standards, offering a clear, science-aligned, and globally credible framework for carbon neutrality. By replacing PAS 2060 with a stricter and more transparent system, ISO 14068-1 sets a new benchmark for organizations serious about sustainability.

Whether you are aiming to cut emissions, strengthen brand integrity, win tenders, or simply operate more responsibly, adopting ISO 14068-1 signals real climate commitment—not just words, but action.

At Seedling, we give SME teams the tools and expert guidance they need to comply with confidence - get in touch!

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