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ISO 14068-1:2023 – What the New Standard about Carbon Neutrality Means for Companies
After intense work, the ISO 14068-1 standard for the achievement of carbon neutrality was published in November 2023. Goal of the International Organization for Standardization (ISO) is to harmonise and professionalise the market.
As of now, companies can have their organisation and their measures for carbon neutrality certified according to the new ISO standard, and thus follow the approved norms. Carbon credits play a central role in this. Read here, what you should know about them.
Carbon Neutrality: A Popular Label That Leaves a Few Questions Open
Companies wanting to contribute to the net-zero goal of the Paris Agreement face a number of challenges. The first obstacle is that there are hardly any binding guidelines regarding appropriate measures, such as the reduction and compensation of greenhouse gases. The legislation remains vague, as recently evidenced by the results of the COP28 UN Climate Change Conference in Dubai.
Many companies select voluntary initiatives and authorities themselves and act according to their guidelines. They do that in order to not remain inactive and to be able to claim the increasingly important category of carbon neutrality for their business. Hence, there are a number of organisations that support companies in quantifying, monitoring, and reporting their greenhouse gas emissions on the basis of defined criteria. A known example is the SBTi approach, in which economic actors set so-called science-based targets.
The numerous voluntary initiatives for climate-friendly companies work with a wide variety of terms, definitions, and criteria. This results in a significant uncertainty in companies, consumers, and courts. What makes a statement about positive contributions to climate issues credible? Which approaches have integrity and which ones are prone to criticism?
This is where the ISO 14068-1 standard is clear and binding. Compared to other standards, it offers a clearly defined path to a label that can be used in communication with stakeholders. The prerequisite for that is long-term commitment, standardised reduction of emissions in the company, and compensation with high-quality carbon credits.
ISO 14068-1: What Does the Standard Comprise?
The ISO 14068-1 standard is part of the 14060 family of standards concerned with the topic of greenhouse gases. It contains internationally stipulated definitions, principles, and criteria for carbon-neutral organisations and products. The new norm is based on the widely used ISO 14064-1 and ISO 14067 standards for the calculation of the Corporate Carbon Footprint (CCF) and the Product Carbon Footprint (PCF).
Attention: Do Not Confuse!
The “Net zero guidelines” (IWA 42:2022), published in the year 2022 by the ISO as well, feature similar content but do not have the status of an international standard.
The ISO 14068-1 standard, titled “Climate change management – Transition to net zero”, is about advancing comprehensive greenhouse gas management. The standard is the first ever to determine strict criteria for the emission reduction certificates. It defines four central steps in this process:
Calculation of the greenhouse gas balance
Development of an action plan for achieving carbon neutrality and step-by-step implementation
Compensation of the remaining emissions
Creation of a report on carbon neutrality
Similar to other management norms, ISO 14068-1 follows a continuing approach. Companies must regularly record their carbon footprint, implement reduction measures, compensate greenhouse gases, and report, if they want to keep their certification according to the standard.
What Are the Benefits of ISO 14068-1 for Companies?
The ISO 14068-1 standard, just as any feasible norm, balances between what should happen according to scientific findings and what can happen in reality. In this respect, it is not a comprehensive solution for all climate problems but a very successful compromise.
Many market participants and companies still appreciate the new standard because there are also clear benefits for the companies and for achieving global climate goals.
● Clarity and international comparability: You can be certified internationally according to a uniform standard of a widely recognised and credible organisation. A German company that is certified in accordance with this standard can thus easily be compared to a Canadian company with the same certification. This way, the path to climate neutrality is professionalised.
● Feasibility with simultaneous effectiveness: According to the ISO 14068-1 standard, carbon neutrality is in the near future for companies. Instead of demanding a sudden, radical reorientation of the company structure, the standard allows companies to increasingly compensate their emissions through credible and high-quality carbon credits in the first place. At the same time, however, companies must commit themselves to successively lessening the portion of compensation and focus on reducing their own emissions.
● Confident communication: Certified companies can use a claim at an early stage.
High-Quality Carbon Credits: A Component for Your ISO Certification
According to the ISO standard, certain carbon credits can be applied towards the achievement of carbon neutrality. The standard determines which qualities the carbon credits must fulfil and how the proportions of avoidance and removal must develop over time.
thyssenkrupp Material Services provides companies with carbon credits, which can be used within the framework of the ISO standard – from self-commitment to defined climate goals. We provide you with the appropriate carbon credits and assist your company with a high-quality portfolio on the path to a solid sustainability strategy.
Act Now for Your Climate Goals
The new ISO standard can be an incentive for companies to become active, to get on the right track of climate policy, and no longer shy away from seemingly unachievable requirements. Climate neutrality until 2050 – that is the goal. But even this mammoth task is attainable when split into many single steps. The ISO 14068-1 standard is a universal norm that serves as an instruction and motivation at once.