14. February 2024

New standard for companies on managing climate change

Climate change caused by anthropogenic activity has been identified as one of the greatest challenges facing the world. A new ISO standard will provide companies with a tool to achieve and demonstrate carbon neutrality, thereby contributing to curbing anthropogenic climate change.

Climate change has implications for both human and natural systems and can lead to significant impacts on resource availability and decline in biodiversity among other things.

A new standard for managing human-induced climate change, ISO 14068-1; Climate change management – Transition to net zero, was recently published and provides companies and organizations with a structured approach to achieving carbon neutrality, thus contributing to the global agreement to achieve net-zero greenhouse gas (GHG) emissions by 2050.

By implementing the standard, companies also get clear definitions of when a company or a product is considered to be carbon neutral. This is useful to companies who may use it in their documentation of their efforts to achieve carbon neutrality.

- We all want to demonstrate that we contribute to achieving the international targets for dealing with global warming. And what could be more satisfying than to be able to say that your product is climate neutral or carbon neutral, as it is termed in the standard? However, there is a risk of diluting the impact of the statement when no common framework exists and companies can claim carbon neutrality as they please. This ISO standard will provide clarity in terms of what is required of companies in order to use this claim, says Bo Weidema, Senior Advisor at 2.-0 LCA Consultants and member of the standardization committee S-1000/U04 Environmental Management at Danish Standards.

Applies to companies as well as products

The standard can be used by all types of companies and organizations, private and public, wanting to work in a structured way to make either their organisation or their products climate neutral. Products may be consumer-oriented or B2B and may include all types of goods and services, including events and financial services.

- First and foremost, the standard provides a common framework and equal conditions for competition for companies. For example, to be able to claim climate neutrality companies must implement it in the lifecycle context of their product portfolio. In terms of consumers, it provides more certainty that companies' climate-neutrality claims can be trusted. The standard also provides guidance on how companies can make the transition to climate neutrality, Bo Weidema explains.

ISO 14068-1 establishes a hierarchy for carbon neutrality where GHG emission reductions (direct and indirect) and GHG removal enhancements within the value chain take priority over offsetting. It also includes requirements for carbon neutrality commitments and making carbon neutrality claims.

The ISO standard is recognized internationally and provides companies and organizations across borders and industries with a common set of criteria for measuring and reporting carbon neutrality. This ensures consistency and enables comparison between organizations' efforts to become carbon neutral and allows stakeholders to assess and benchmark the efforts.