RESEARCH PAPER · ISO 14068

ISO 14068 – Carbon Neutrality

SustainStep Insights · 3 min read

Introduction to ISO 14068

Climate change is one of the biggest environmental challenges facing the world today. Industries, vehicles, power plants, and many other human activities release greenhouse gases, especially carbon dioxide (CO₂), into the atmosphere. These emissions contribute to global warming and climate change. To address this issue, the International Organization for Standardization (ISO) introduced ISO 14068-1:2023, a standard that provides guidance on how organizations can achieve carbon neutrality in a credible and transparent manner.

What is ISO 14068?

ISO 14068 is an international standard for carbon neutrality. It explains the proper process that organizations should follow to reduce their impact on climate change. Instead of simply claiming to be carbon neutral, organizations are expected to measure their greenhouse gas emissions, reduce them as much as possible, and only then compensate for the remaining unavoidable emissions through verified carbon removal or carbon offset projects.

What is Carbon Neutrality?

Carbon neutrality means balancing the amount of carbon dioxide released into the atmosphere with an equivalent amount of carbon dioxide removed or avoided elsewhere. The objective is to achieve a net climate impact of zero for the emissions being addressed.

For example, if a company emits 100 tons of CO₂ in a year, it should first reduce those emissions by improving its operations. If it is still unable to eliminate all emissions, it can compensate for the remaining emissions by supporting verified environmental projects that remove or reduce an equivalent amount of CO₂.

What are Carbon Credits?

A carbon credit is a certificate that represents one metric ton of carbon dioxide (or its equivalent greenhouse gases) that has been reduced or removed through a verified environmental project.

Environmental projects such as forest restoration, renewable energy generation, methane capture, or carbon removal technologies can generate carbon credits after independent verification. Organizations that cannot eliminate all of their emissions may purchase these credits to compensate for their remaining emissions.

It is important to understand that purchasing carbon credits does not reduce the pollution produced by a company's own factory. Instead, it supports projects elsewhere that reduce or remove an equivalent amount of greenhouse gases from the atmosphere. This is based on the principle that carbon dioxide mixes throughout the Earth's atmosphere and affects the global climate regardless of where it is emitted.

The ISO 14068 Approach

ISO 14068 encourages organizations to follow a clear sequence:

  1. Measure greenhouse gas emissions.
  2. Reduce emissions through operational improvements and cleaner technologies.
  3. Continue improving environmental performance.
  4. Calculate the remaining unavoidable emissions.
  5. Compensate only those remaining emissions using verified carbon credits or carbon removal projects.
  6. Communicate carbon neutrality transparently and with supporting evidence.

This approach ensures that carbon credits are used only as a final step, rather than as a substitute for reducing emissions.

Advantages of ISO 14068

ISO 14068 helps organizations:

  • Improve environmental responsibility.
  • Reduce greenhouse gas emissions.
  • Build trust with investors, customers, and regulators.
  • Reduce the risk of misleading environmental claims (greenwashing).
  • Support long-term climate goals and sustainability initiatives.

Limitations

Although carbon credits help balance global greenhouse gas emissions, they do not eliminate pollution at the company's own location. Local air pollutants such as dust, smoke, sulfur dioxide, and nitrogen oxides still affect nearby communities. Therefore, ISO 14068 emphasizes that organizations should prioritize reducing their own emissions before relying on carbon credits.

Conclusion

ISO 14068 provides a structured and internationally recognized framework for achieving carbon neutrality. Its main principle is simple: measure emissions, reduce them as much as possible, and compensate only for the unavoidable remainder through verified carbon credits or carbon removal projects. By following this approach, organizations can make more credible climate commitments while contributing to global efforts to reduce the impacts of climate change.

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