ISO Releases Draft Net Zero Standard

The International Organization for Standardization (ISO) announced on Wednesday the release of its long-awaited draft ISO Net Zero Aligned Organizations Standard (ISO 14060), its first global standard designed to support companies in developing credible and comprehensive net zero transition plans.

The new standard sets out principles and requirements for companies and other organizations to develop, implement and communicate a net zero aligned pathway, including setting emissions reduction targets, developing plans, taking actions and monitoring and reporting verifiable progress towards the net zero goals.

The launch of the new draft standard follows a 2-year development process, with ISO announcing in 2024 that it had started work on an international standard on net zero to follow up its 2022 Net Zero Guidelines. ISO said that the international working group developing the standard has been one of the largest in the organization’s history.

Susan Taylor Martin, Chief Executive at ISO’s UK member body, BSI, said:

“Two years ago, we announced the start of this important global process, convening government-recognized National Standards Bodies and their experts from around the world to bring clarity, credibility and trust to the energy transition.”

According to ISO, the new standard is aimed at providing globally consistent guidance for organizations navigating the transition to net zero, including setting out requirements for demonstrating that their strategy, targets and actions are compatible with reaching net zero, and that they are making credible and verifiable progress towards contributing to global net zero, in line with the Paris Agreement.

The standard covers reduction of direct and indirect GHG emissions within the value chain – including upstream and downstream processes – as well as counterbalancing of residual GHG emissions through carbon removal and storage, with priority given to action within the organization’s GHG inventory boundary, and an emphasis on deep GHG emission reductions in the near term. The standard also includes a section with additional guidance provided specifically for small and medium-sized enterprises.

Key requirements for alignment with the standard include setting interim and long-term emissions reduction targets, and publication of a transition plan within two years of setting a target, covering aspects including timelines, integration of strategy into the business model, and measurement and reporting on progress, as well as requirements for validation and verification.

Additional topics included in the standard include the role of carbon credits, management commitment and responsibilities, selection of relevant sectoral net zero pathways, Scope 1, 2 and 3 targets, scaling low carbon solutions, counterbalancing residual emissions – including quality criteria for carbon removals – and reporting, monitoring, validation and verification, among others.

ISO noted that the new standard applies to companies, corporations, firms, partnerships, non-governmental organizations or academic institutions, but not for regions, countries, states or cities, and that it was developed primarily for non-financial institutions, although it can be applied by financial institution to their non-financing activities.

Alongside the release, ISO has initiated a 12-week public consultation period through its national members in more than 170 countries, with plans for a country vote on the new standard later this year.

Noelia Garcia Nebra, Head of Sustainability and Partnerships at ISO, said:

“ISO 14060 has been developed to provide a globally agreed framework that helps organizations build credible transition plans while supporting resilience, innovation and long-term growth.”