What is the ISO 14068-1 Standard?
Adopting the ISO 14068-1 standard is a significant step towards minimizing environmental impacts by fully integrating sustainability practices such as emission calculation and life cycle analyses. This standard enables businesses to reduce their carbon footprint, ensure legal compliance, and gain an eco-friendly image. Therefore, before implementing this standard, businesses must complete emission calculations and LCA requirements.
Released in late 2023, ISO 14068-1 is a new international standard that sets requirements for organizations to achieve carbon neutrality. This standard applies to the products, services, or events produced or organized by organizations. ISO 14068-1 can be used by any organization of any size in any sector. It considers all greenhouse gases, not limited to carbon dioxide, and requires using a whole value chain or life cycle approach whenever possible. It is designed to work with ISO's own calculation standards. To understand this structure, the related ISO standards are examined first:
- ISO 14064-1: This standard defines the requirements for inventorying and reporting greenhouse gas (GHG) emissions. Organizations report direct and indirect GHG emissions according to this standard by calculating them.
- ISO 14067: Involves calculating and reporting the carbon footprint of products. This standard evaluates GHG emissions arising from the life cycle of a product.
- ISO 14064-3: This standard defines the requirements for verification and validation of GHG emissions. Independent verification organizations assess the accuracy and reliability of an organization's GHG statement according to this standard.
- ISO 14065: Defines the requirements for verification and validation organizations. This standard specifies the competence and qualification requirements for organizations conducting verification and validation processes.
- ISO 14066: Defines the competence requirements for verification and validation teams. This standard covers the training, experience, and skill requirements of verification and validation teams.
- ISO 14064-2: Specifies the requirements for GHG projects. This standard covers the requirements for planning, implementing, and reporting GHG reduction projects.
- ISO 14021: Concerns self-declared environmental claims about the environmental characteristics of products. The term "self-declared" indicates that the claim is made by the manufacturer or provider and is defined by Environmental Label II. For example, labeling a product as "carbon neutral" means that this claim is made by the manufacturer or provider and can be verified according to ISO 14021 standards.
- ISO 14026: Provides principles, requirements, and guidance on how to communicate environmental footprint information (e.g., carbon footprint, water footprint).
In the structure established with ISO 14068-1 and the standards listed above, data obtained from ISO 14064-1 and ISO 14067 standards are used to create a carbon footprint statement. This statement is converted into a carbon neutrality report and claim according to ISO 14068-1. Verification and validation processes are carried out according to ISO 14064-3, ISO 14065, and ISO 14066 standards. ISO 14021 and ISO 14026 standards guide the environmental labeling and declaration processes. This structure ensures that the carbon neutrality process is transparent, verifiable, and reliable, helping organizations manage their carbon emissions effectively.
Another international standard used to verify and document carbon neutrality is PAS 2060, developed by the British Standards Institution (BSI) in 2010, providing a framework to ensure the accuracy and reliability of carbon neutrality claims. Therefore, companies using PAS 2060 are expected to transition to ISO 14068-1 without difficulty. However, there are some differences between them. While both aim to achieve carbon neutrality, they offer different approaches and requirements. PAS 2060 provides a simpler and more specific approach, while ISO 14068-1 adopts a broader and more detailed framework that covers all greenhouse gases and value chain emissions.
Usage Areas and Target Audiences of ISO 14068-1 Standard
The ISO 14068-1 standard applies to any organization, product, or service aiming to achieve and prove carbon neutrality. This standard appeals to a wide range of users in various areas targeting carbon neutrality. Below are detailed descriptions of these user groups:
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Companies
- Small and Medium Enterprises (SMEs): SMEs aiming to support environmental sustainability goals can use ISO 14068-1 to reduce their carbon footprint and achieve carbon neutrality.
- Large Corporations: Large companies operating in various sectors can adopt this standard to improve their environmental performance and ensure legal compliance.
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Local Governments
- Municipalities and District Administrations: Local governments can develop sustainable city planning and management strategies by using ISO 14068-1 to achieve carbon neutrality for cities and towns.
- Regional Governments: Regional government bodies can use this standard to implement wide-ranging environmental strategies and policies.
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Financial Institutions
- Banks and Investment Companies: Financial institutions aiming for sustainable finance and green investments can apply ISO 14068-1 in their operations and investment portfolios.
- Insurance Companies: Can use this standard to manage environmental risks and develop sustainable insurance products.
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Products and Services
- Consumer Products: Manufacturers can apply ISO 14068-1 to reduce the carbon footprint of their products and achieve neutrality.
- Industrial Products: Companies in heavy industry and manufacturing sectors can use this standard to ensure the carbon neutrality of the industrial products they produce.
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Events
- Conferences, Seminars, etc.: Event organizers can apply ISO 14068-1 to minimize the environmental impacts of their events and achieve carbon neutrality.
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Buildings
- Residential and Commercial Buildings: Construction companies and building owners can apply ISO 14068-1 to improve the environmental performance of their buildings and achieve carbon neutrality.
- Public Buildings: Can use this standard to ensure carbon neutrality in the management and operation of government and public buildings.
ISO 14068-1 is a comprehensive standard designed for a wide range of users. This standard enables any organization, product, or service to achieve carbon neutrality and transparently and reliably prove the process of achieving this goal. The broad scope of ISO 14068-1 makes it an important tool for any organization aiming to achieve sustainability and environmental responsibility goals.
ISO 14068-1 Standard Implementation Guide
ISO 14068-1 offers the following steps to users who want to achieve and maintain carbon neutrality:
- First, top management must commit to achieving and maintaining carbon neutrality.
- The scope and boundaries of carbon neutrality are determined. This can be the organization itself or a product (good or service).
- A carbon footprint is calculated by considering all direct and indirect GHG emissions and any GHG reductions within the subject boundaries to determine the starting position. ISO 14068-1 encourages using other standards in the ISO 1406x series for these calculations.
- A carbon neutrality management plan is prepared, including short- and long-term goals, planned GHG reduction or removal activities, and the selection of carbon credits.
- Before making a carbon neutrality claim, GHG reductions must be achieved compared to the initial level. Once the net carbon footprint is determined for the reporting period, carbon credits are purchased to offset this footprint. Only carbon credits with certain quality characteristics are considered usable.
- After completing this process, the organization can claim carbon neutrality for the reporting period.
- Carbon neutrality is an ongoing process. These steps are repeated, and the carbon neutrality plan is updated. GHG emissions, reductions, and the carbon footprint for offsetting are recalculated for the next reporting period.
Organizations may face various challenges in data collection and the carbon neutrality process when implementing ISO 14068-1. Carbon footprint calculation considers the entire life cycle or value chain and includes supply processes. Upstream and downstream calculations are made as part of the supply processes. These calculations cover the indirect (Scope 3) greenhouse gas emissions of the product or organization, and collecting data or making reliable estimates for some indirect emissions can be difficult.
Carbon neutrality should not be claimed for just one year; it should be seen as part of a long-term emission reduction journey. The standard acknowledges that it is not always possible to reduce emissions every year, especially for products, where there may be slower progress periods following significant emission reductions. However, these slower progress periods must still align with long-term reduction targets. Organizations must show a genuine commitment to achieving carbon neutrality without resorting to the easy way of simply purchasing carbon credits.
Benefits of ISO 14068-1 Standard
Organizations using the standard benefit in two main ways: internally and externally. Internally, this standard provides organizations with a clear and comprehensive guide to achieving carbon neutrality. This guide helps organizations manage, reduce, and ultimately neutralize their emissions more effectively. Additionally, it guides improving and making internal processes more efficient. This means optimizing energy use, minimizing waste, and creating a more sustainable business model overall.
Externally, complying with this standard enables organizations to demonstrate their commitments and achievements in carbon neutrality transparently and reliably. Compliance with a rigorous standard on carbon neutrality enhances organizations' accountability to customers, stakeholders, and regulatory bodies. This strengthens the organization's reputation, increases customer trust, and makes it more attractive to potential business partners and investors. It also facilitates compliance with environmental regulations and meeting potential legal obligations. These external benefits support organizations' sustainability efforts and contribute to becoming a more responsible corporate citizen overall.
References
BSI. “ISO 14068-1:2023 Climate change management – Transition to Net Zero – Part 1: Carbon neutrality.” 2024.
ISO. “Climate change management- Transition to net zero.” 2023.