ISO’s New Net-Zero Standard: What You Should Know

ISO launches development of first verifiable net zero standard

ISO has moved beyond voluntary guidelines and started formal development of its first international standard for organizational net zero claims. The work began in June 2024. A public consultation is scheduled for November 2025, coinciding with COP30.

The new standard, ISO 14060 – Net Zero Aligned Organizations, aims to give businesses and public bodies a framework they can verify independently. ISO describes the initiative as a response to growing concerns about greenwashing. Companies will face clearer requirements for what constitutes a legitimate net zero commitment.

This matters for UK businesses because fragmented approaches to carbon claims create confusion in supply chains and procurement. Many organizations already face scrutiny over their climate statements. A recognized international standard could provide the clarity that clients, regulators, and investors increasingly demand.

From voluntary guidelines to mandatory requirements

The new standard builds directly on IWA 42:2022, the Net Zero Guidelines that ISO published at COP27 in November 2022. Those guidelines established common definitions and recommendations across net zero principles, target setting, value chain emissions, removals, offsets, claims, reporting, and equity considerations.

However, guidelines remain advisory. The upcoming standard will impose verifiable requirements. ISO has stated explicitly that the standard will support independent verification of organizational claims. This represents a significant shift in how net zero commitments can be assessed and challenged.

More than 1,200 experts from over 100 countries contributed to the original guidelines. ISO made them available without charge, recognizing the need for widespread access. The guidelines already recommend interim targets every two to five years, alongside at least a 50% emissions reduction by 2030 against a 2018 baseline.

The British Standards Institution leads the drafting process, working with ICONTEC in Colombia. Input is expected from experts in more than 170 countries. The current working group includes close to 150 specialists from private companies, academic institutions, non-governmental organizations, and civil society groups.

ISO has confirmed the standard will emphasize limited use of offsets, stronger reliance on scientific evidence, respect for Indigenous knowledge, and attention to circular economy approaches. These elements reflect ongoing debates about what constitutes genuine carbon reduction versus accounting manipulation.

Commercial implications for UK businesses

For UK companies, the standard arrives as regulatory and commercial pressure around climate claims intensifies. The Advertising Standards Authority has banned numerous environmental claims in recent years. Procurement frameworks increasingly require evidence of credible carbon reduction. Consequently, businesses need defendable positions on net zero, not aspirational statements.

Public sector suppliers face particular scrutiny. PPN 06/21 requires carbon reduction plans from suppliers bidding for central government contracts above £5 million annually. Similar requirements appear in local authority tenders. An internationally recognized standard could streamline compliance by providing a common framework that procurement teams accept across jurisdictions.

Private sector supply chains are also tightening requirements. Large manufacturers and retailers ask suppliers to demonstrate emissions reduction that aligns with science-based targets. Without a consistent standard, each customer relationship can demand different reporting formats, different baseline years, and different calculation methodologies. This creates administrative burden and increases the risk of inconsistent claims.

Financial institutions are scrutinizing climate commitments more carefully. Banks and insurers face their own net zero obligations. Therefore, they need assurance that clients’ carbon reduction plans are credible. A verifiable ISO standard could influence lending decisions, insurance premiums, and investment criteria.

The standard may also affect competitive positioning. Companies that achieve certification early could differentiate themselves in tenders and customer relationships. Conversely, businesses without credible net zero strategies may face exclusion from certain contracts or markets. This creates a commercial incentive beyond regulatory compliance.

Importantly, the standard is not yet finalized. The consultation process runs through late 2025. Businesses should monitor developments rather than waiting for publication. Early engagement with the draft requirements could inform internal carbon strategy and avoid costly retrospective adjustments.

What the standard means for carbon strategies

Several elements of the draft standard will likely challenge current business practices. The emphasis on limited offset use means companies cannot buy their way to net zero without substantial direct emissions reduction. This affects organizations that have relied heavily on carbon credits to meet targets.

The requirement for interim targets every two to five years creates ongoing accountability. Many businesses set long-term goals for 2040 or 2050 without clear intermediate milestones. The standard would make such approaches insufficient. Organizations need demonstrable progress at regular intervals.

Value chain emissions present difficulties for many UK SMEs. Scope 3 emissions often dwarf direct emissions but remain hard to measure accurately. The standard will likely require transparent approaches to value chain calculation, even where data is imperfect. This means engaging suppliers and customers on their carbon footprints.

Verification represents another practical hurdle. Independent assessment costs money and requires documentation. Smaller businesses may struggle with the administrative burden. However, verification also provides protection against greenwashing accusations and strengthens the credibility of claims made to customers.

The standard’s global scope matters for businesses with international operations or supply chains. A single recognized framework reduces complexity compared to navigating different national requirements. For exporters, alignment with an ISO standard could ease market access in countries that adopt it as their benchmark.

Core requirements emerging from the guidelines

While the standard remains in development, the underlying guidelines indicate likely core elements. These points summarize the framework that businesses should anticipate:

• Organizations must set interim emissions reduction targets every two to five years, not just long-term goals for mid-century.
• A minimum 50% emissions reduction by 2030 is recommended, measured against a 2018 baseline or equivalent.
• Carbon offsets should play a limited role, with primary emphasis on direct emissions reduction within operations and value chains.
• Value chain emissions require transparent calculation and reduction strategies, not just reporting of direct operational emissions.
• Claims about net zero status must be independently verifiable through documented evidence and recognized assessment processes.
• Reporting should incorporate scientific evidence and, where relevant, Indigenous knowledge about environmental impacts.
• Circular economy principles should inform resource use and waste reduction strategies alongside carbon accounting.
• Equity considerations must feature in transition plans, recognizing that climate action affects different communities differently.
• Regular reporting on progress is expected, with clear disclosure of methodologies, assumptions, and data sources used in calculations.

Preparing for the new standard

Businesses should start preparing now, even though the standard will not be finalized until late 2025. Review your current carbon reduction commitments against the framework outlined in IWA 42:2022. The guidelines are freely available from ISO and provide a clear indication of the direction requirements will take.

Calculate your baseline emissions if you have not already done so. The 2018 baseline mentioned in the guidelines is now several years old. However, establishing a robust baseline with reliable data takes time. Many organizations discover significant gaps in their emissions data during this process.

Examine your use of carbon offsets critically. If your current strategy relies heavily on purchased credits, consider how you might shift towards direct reduction. This often requires investment in energy efficiency, renewable energy, or process changes. Therefore, planning should begin well before the standard becomes mandatory.

Engage with your supply chain early. Scope 3 emissions require cooperation from suppliers and customers. Building these relationships and gathering data takes months or years, not weeks. Larger businesses should consider how they will support smaller suppliers in meeting requirements.

Our net zero program for carbon reporting compliance helps businesses establish credible baselines and develop reduction strategies that align with emerging standards. We work with organizations to identify practical emission reduction opportunities that make commercial sense alongside compliance needs.

Monitor the consultation process when it opens in November 2025. ISO typically publishes draft standards for public comment before finalization. Businesses can submit feedback through national standards bodies like BSI. This represents an opportunity to shape requirements that will affect your operations.

Consider the administrative systems you will need for ongoing verification. Documentation, data collection, and reporting require processes and often software systems. Implementing these takes time. Waiting until the standard is finalized may leave you scrambling to catch up.

Authoritative sources and further information

The British Standards Institution leads the development process for the new ISO standard and provides updates on progress. BSI is the UK’s national standards body and plays a central role in international standards development.

ISO publishes the current IWA 42:2022 Net Zero Guidelines free of charge on its website. These guidelines form the foundation for the upcoming standard. Reading them provides the clearest indication of what requirements will emerge.

The Department for Energy Security and Net Zero sets UK government policy on climate commitments and coordinates the national net zero strategy. Their guidance helps businesses understand how international standards interact with UK regulatory requirements.

For businesses navigating public sector procurement, understanding PPN 06/21 carbon reduction plan requirements remains essential alongside the developing ISO standard. Our compliance services support organizations in meeting both current procurement obligations and preparing for emerging international frameworks.

Finally, businesses should watch for the public consultation announcement in late 2025. Participating in the consultation process allows UK companies to contribute practical perspectives from implementation experience.