Carbon Neutrality: What are the requirements for ISO 14068 and how are they different from PAS 2060?
This blog serves as a guide to carbon neutrality claims made to comply with the ISO 14068-1:2023 standard, formerly PAS 2060.
Introduction
PAS 2060, the original guidance/legislation/etc for Carbon Neutrality/X, was officially retired by BSI on the 30th November 2025, with ISO 14068-1 now the expected reference point going forward for all carbon neutrality claims.
ISO 14068-1:2023 is the international successor to PAS 2060. It puts more weight on real reductions (before offsets), requires a clearer pathway to net zero, and tightens disclosure and verification.
What is ISO 14068?
An international standard for making and verifying carbon neutrality claims as part of a credible transition to net zero. It requires:
- a defined subject and boundary.
- a carbon neutrality management plan and pathway.
- annual public reporting (QES-style) with specific disclosures.
- independent verification of the claim (ISO 14064-3 or equivalent).
Why align to ISO 14068-1?
- Credibility over “offset-and-forget”: The standard prioritises reductions and in-boundary removals over offsets. Companies must disclose unabated vs residual emissions and only offset once reductions are delivered and documented, raising the credibility of claims and curbing offset-only behaviour.
- Meets buyer and investor expectations: Uses a recognised international benchmark and a shared vocabulary with ISO 14064/14067/14001/50001. The ISO badge reassures stakeholders that the claim is evidence-based and comparable, helping bids and due diligence. The formulation “Carbon neutral in accordance with ISO 14068-1:2023, independently verified” cuts through generic claims and stands up to supplier audits.
- Governance and control: Requires clear ownership, targets, KPIs, review triggers and documented information. That makes neutrality auditable, embeds it in risk and ESG processes, turning “projects” into controlled, repeatable business practice.
- Regulatory alignment: Aligns neutrality claims with net-zero frameworks and disclosure regimes (CSRD, ISSB/TCFD, SBTi, UK Transition Plans). Minimises rework later and reduces the chance of claims conflicting with emerging rules on offsets and double counting.
- Higher-quality offsets: Demands evidence on programme governance, additionality, permanence, leakage, serial numbers, retirement, and (where relevant) corresponding adjustments. This tightens procurement discipline and lowers reputational and financial risk.
- Better data: Raises the bar on inventory quality (methods, factors, uncertainty), captures removals and reversals, and addresses aviation/shipping non-CO₂ impacts. This results in more reliable KPIs and a stronger foundation for a broader net-zero plan.
ISO 14068-1 vs PAS 2060
|
Checklist |
PAS 2060 |
ISO 14068 |
|
Issuer |
BSI (UK) |
ISO (International) |
|
Status |
Withdrawn by 30th Nov 2025 |
Active |
|
Scope Coverage |
Scopes 1–2 required; Scope 3 where relevant |
Scopes 1–2 required; Scope 3 where relevant |
|
Public Report (QES) |
Required |
Required |
|
Verification of Claim |
Self/other/3rd-party allowed |
3rd party verification strongly recommended |
|
Action Hierarchy |
Offset |
Reduce → Remove → Offset |
|
Management Plan |
Required (lighter) |
Required (detailed) |
|
Offset Quality |
Recognised schemes |
Recognised schemes plus governance due diligence |
|
Corresponding Adjustments |
Not explicit |
Disclose if applied |
|
Unabated vs Residual Disclosure |
Not explicit |
Explicitly required |
Necessary compliance steps
- Baseline Period Set: The chosen base year, baseline footprint, rationale, and any recalculations or new inclusions.
- Carbon neutrality management plan: Reduction targets (short/long term), governance and responsibilities and monitoring indicators (KPIs).
- Annual GHG inventory: Subject and boundary, methodology references (e.g., GHG Protocol/ISO 14064), emissions factors sources, uncertainty, and intensity metrics.
- Verification: The verification/assurance level, standard used (e.g., ISO 14064-3), verifier identity and date, and scope of the opinion (inventory and/or claim).
- Reductions and removals evidence: Quantified in-boundary reductions/removal enhancements achieved in the period, with comparison to baseline/prior year and a statement of unabated vs residual emissions.
- Offset details: Credit programme and methodology, country, vintage, quantities, serial numbers, retirement evidence, whether corresponding adjustments apply, and confirmation that credits cover residual emissions (at least Scopes 1–2, as applicable) and meet quality criteria (additionality, permanence, leakage, no double counting).
Common Pitfalls to Avoid
- No clear statement of unabated vs residual emissions.
- Relying mainly on offsets without a reduction pathway.
- Missing serial numbers/retirement evidence or silence on corresponding adjustments.
- Simple carbon management plan, with no KPIs, data owners, monitors or triggers for rebaseline.
Closing Discussion
Being compliant with ISO 14068-1 isn’t just about getting a ‘carbon neutral’ badge – it’s about proving that your neutrality claim is real, independently verified, and part of a credible transition to net zero, in a format that investors, customers and regulators can trust
At MyCarbon, we help businesses navigate this evolving landscape with clarity and confidence. From double materiality assessments to sustainability data governance roadmaps, our team translates complex regulation into practical action.
If you’d like to get started or to update from PAS 2060 to ISO, get in touch with our experts.
Related articles:
EDUCATION: Supporting Tonbridge's Sustainability & Net-Zero Strategy
MANUFACTURING: BHJ Meat Meets Net-Zero
E-COMMERCE: THG's Effective E-Commerce Net-Zero Validation