Introduction
Carbon neutrality refers to the state achieved when an organization or entity balances its carbon emissions with the removal of an equivalent amount from the atmosphere.
Achieving carbon neutrality is a step towards the broader goal of net zero emissions, where all greenhouse gas emissions are reduced to near zero, with any residual emissions counterbalanced by removal from the atmosphere.
Some carbon and environmental consultancies and other bodies award logos and certificates based on their own idea and calculations of carbon neutrality.
There are several cynical concerns regarding carbon neutrality claims, primarily stemming from the ambiguity and complexity of what truly constitutes ‘carbon neutral’ practices. Sceptics often point to the lack of standardization in measuring and reporting emissions, which can lead to inconsistent and sometimes misleading claims. Additionally, there is apprehension about the reliance on carbon offsets, which some argue merely shift the responsibility of carbon reduction rather than eliminate emissions. The potential for ‘greenwashing’, where companies may exaggerate their environmental efforts for marketing purposes, further fuels scepticism.
Until recently, the closest to an official definition of carbon neutrality was provided by a British Standards Institution (BSI) (Publicly Available Specification), PAS2060, developed by BSI, has been a benchmark for carbon neutrality, providing a framework for achieving and demonstrating carbon-neutral status. It emphasizes transparency and credibility in carbon offsetting and reduction.
At the end of 2025, PAS2060 will be retired and superseded by a new verifiable internationals ISO standard Iso 14068-1. As a PAS2060 application requires at least one year of supporting data, it should cease to be considered from 1 year in advance of retirement i.e. December 2024.
ISO 14068-1, on the other hand, is a newer standard that builds upon the foundation laid by PAS2060. It offers a more comprehensive approach to managing greenhouse gas emissions, including broader scopes of emission categories and a stronger focus on long-term sustainability goals. This standard is designed to align with international climate commitments and provides a robust structure for organizations to integrate climate action into their core business strategies.
The transition from PAS2060 to ISO 14068-1 presents organizations with an opportunity to enhance their sustainability credentials. ISO 14068-1’s holistic approach not only addresses immediate carbon neutrality but also encourages ongoing improvement and innovation in environmental performance. By adopting ISO 14068-1, organizations can demonstrate a deeper commitment to sustainability, which can lead to improved stakeholder trust, potential cost savings from increased efficiency, and alignment with global sustainability trends.
In summary, while PAS2060 offers a solid starting point for carbon neutrality, ISO 14068-1 paves the way for integrated and strategic climate action. Organizations that embrace this evolution will find themselves at the forefront of sustainable business practices.
ISO 14068-1 2023
ISO 14068-1 is a part of the ISO 14000 family of standards related to environmental management that exists to help organizations minimize how their operations negatively affect the environment, comply with applicable laws, regulations, and other environmentally oriented requirements, and continually improve in the above.
ISO 14068-1 focuses on specific use cases and principles that guide organizations in integrating environmentally friendly practices into their business models and operations. The main principles include a commitment to continual improvement, compliance with legal and other requirements, pollution prevention, and resource management. The standard encourages organizations to consider the life cycle perspective of their activities, products, and services to identify opportunities for preventing environmental impacts.
ISO 14068-1 has 10 main principles:
- Transparency
- Conservative estimates
- Hierarchical approach (Reduce – Remove -Offset)
- Supporting transition
- Ambition
- Urgency
- Science-based approach
- Avoid adverse impacts (‘do no harm’)
- Accountability
Value chain and life-cycle approach
Offset Credits
The primary differences between Offset credits required for PAS 2060 and ISO 14068-1 pertain to the scope, applicability, and specific requirements of the carbon neutrality claims. PAS 2060, developed by the British Standards Institution, is a specification for the demonstration of carbon neutrality, providing a framework for organizations to quantify, reduce, and offset greenhouse gas (GHG) emissions. It requires a clear definition of the subject’s boundary, a carbon management plan, GHG assessments, reduction targets, and offsetting remaining emissions through credible schemes.
ISO 14068-1, on the other hand, is part of a series of international standards that provide guidance on quantifying, monitoring, reporting, and validating or verifying GHG assertions. It focuses on the principles and requirements for designing, developing, managing, and reporting GHG inventories that include GHG removals and emission reductions from market-based mechanisms. While both standards aim to support carbon neutrality claims, ISO 14068-1 offers a broader international perspective with a focus on GHG inventories and market-based mechanisms.
In summary, PAS 2060 is more prescriptive regarding the process for achieving carbon neutrality for a specific subject within an organization, whereas ISO 14068-1 provides guidance on accounting for GHG reductions and removals more broadly in the context of market-based mechanisms.
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