Climate Solutions Manager
Published: 9 Oct 2024
15 min read
What are Corporate Sustainability Standards
Many organisations worldwide have pledged to meet net-zero Emissions, aiming to help keep global warming below 1.5°C as agreed at COP15. These pledges are important, but they need clear guidelines and frameworks to ensure that sustainability strategies lead to real and measurable progress.
Why are there Corporate Sustainability Standards?
A variety of frameworks have been developed to support organisations on their journey to reducing carbon emissions. They help align companies with global climate goals, offering guidance on topics such as resource management, goal setting and reporting. Following these guidelines ensures that organisations act responsibly, and take accountability for their impact contributing to global efforts to combat climate change.
To reach net zero, these sustainability standards must be widely adopted to minimise the risk of organisations participating in greenwashing and contribute to collective global action to minimise the impacts of global warming.
What is PAS 2060?
PAS 2060 was first published in 2010, it aimed to provide the requirements for achieving carbon neutrality for products and organisations alike. After 15 years in operation, PAS 2060 will be retired at the end of 2025, and superseded by ISO 14068- 1:2023.
The standard provides organisations with a methodology for measuring and reducing greenhouse gas emissions and allows for the purchasing of carbon credits to offset any emissions that can’t be reduced.
What are the requirements of PAS 2060
Measure
PAS 2060 requires organisations to first measure their carbon footprint, accounting for all Scope 1 and 2 emissions, as well as any Scope 3 emissions that constitute more than 1% of the organisation’s overall emissions.
Reduce
Organisations must then create and implement a carbon reduction plan (CRP). This plan should clearly outline specific actions and targets for reducing emissions over time.
Offset
After reducing emissions, organisations can then offset remaining emissions using third-party verified carbon credits, these can be carbon avoidance or carbon removal credits.
Document
Organisations must document their carbon neutrality initiatives in a Qualifying Explanatory Statement (QES). This should be a public document that includes key information such as the carbon footprint calculation, reduction measures and offsetting activities.
Drawbacks
PAS 2060 does not require evidence of continual improvement to the organisation’s carbon footprint, which can lead to an over-reliance on carbon offsets, as opposed to meaningful reductions in carbon emissions. Additionally, a PAS 2060 application must be accompanied by at least one year’s worth of supporting data therefore, PAS 2060 should not be considered for new clients/projects after December 2024.
What is ISO 14068-1:2023
ISO 14068-1:2023 is a new standard under development by the British Standards Institute (BSI). As mentioned above, ISO 14068-1 replaces PAS 2060.
The standard aims to provide the requirements and guidance for achieving and demonstrating carbon neutrality. Unlike PAS 2060, the standard applies to organisations only and does not apply to products.
ISO 14068-1:2023 is a full international standard that prioritises carbon reduction initiatives. This standard requires evidence that reduction initiatives have taken place before any carbon offsetting is allowed.
What are the requirements of ISO 14068-1:2023
Measure
Organisations will need to measure their Scope 1, 2 and 3 emissions under this standard.
Reduce
They will then need to set clear and ambitious targets to reduce their emissions. Whilst purchasing carbon credits to offset emissions is allowed under this standard, organisations must be able to justify why offsets were purchased instead of undertaking further emission reductions.
Offset
Carbon removal offsets are approved to offset any ‘hard to remove’ emissions, providing they are less than 5 years old. This standard does not allow for the purchasing of carbon avoidance credits.
Document
ISO 14068-1:2023 also requires a carbon reduction plan, which documents the resources necessary to successfully deliver the plan, and the individuals responsible. The continuous improvement of the subject’s carbon footprint is required to maintain a carbon-neutral status unlike PAS 2060.
Drawbacks
It could be argued that ISO 14068-1:2023 requires a deep understanding of carbon accounting, emission reduction strategies and value chain emissions. Many organisations don’t have this expertise in-house and would therefore have to appoint an external third party to support them through the process, this could result in high costs to implement this standard which new and/or small companies may not have.
What is ISO 14064-1
ISO 14064 guides organisations in reporting their GHG emissions and removals. The primary objectives of the standard are to help organisations manage and report emissions, and set and achieve reduction targets. It is a part of the 3 part ISO 14064 standard and applies to any organisation of any size.
What are the requirements of ISO 14064-1
ISO 14064-1 is the first part of the 3-part standard, it aims to provide organisations with an approach to measure, report and verify their emissions and offsets.
Measure
Organisations must outline which emission sources and activities are included in their reporting however ISO 14064-1 does not require the reporting of Scope 3 emissions.
Reduce
ISO 14064-1 does not explicitly require organisations to reduce emissions before engaging in offsetting however it does emphasise the importance of regularly reporting GHG emissions including prioritising emission reductions.
Offset
ISO 14064-1 recognises the use of carbon offsets as a legitimate tool for managing GHG emissions however places a strong emphasis on transparency and accurate reporting. ISO 14064-1 allows for both avoidance and removal credits providing they are credible, verifiable and meet recognised standards for offset projects such as additionality and permanence.
Document
ISO 14064-1 requires an inventory management plan that outlines data collection and reporting, and regular review of the GHG inventory. Additionally, a comprehensive GHG report should be prepared to detail the organisation’s emissions and purchased offsets.
Drawbacks
ISO 14064-1 also requires a comprehensive understanding of GHG accounting. This standard is largely focused on reporting, as opposed to action. There is no mandated emission reduction meaning organisations can meet emission targets through purchasing offsets alone, limiting the overall impact on global climate change mitigation.
What is BSI Flex 3030
BSI Flex 3030 is a set of principles that can support organisations in meeting the requirements of other initiatives such as the Science Based Targets Initiative (SBTi), the Task Force on Climate-Related Financial Disclosures (TCFD) and the Carbon Disclosure Project (CDP). BSI Flex was developed with small businesses in mind and is primarily for use by SMEs with between 5-250 employees.
BSI Flex 3030 is also designed to work alongside formal management systems such as ISO 14001 (Environmental Management) or BS EN ISO 50001 (Energy Management). It provides high-level principles and a framework for an organisation to deliver a transition to net zero. It covers how organisations can measure their GHG baseline, set reduction targets and create a credible pathway to net zero, it does not, however, cover how to develop and maintain a formal carbon or net-zero management system which highlights its position as a high-level framework to support organisations at the start of the carbon management journey.
Natural Carbon Solutions, Eight Versa
The purpose of Natural Carbon Solutions (NCS) is to provide businesses with a transparent way to measure, verify and evidence carbon reduction efforts. This standard covers organisations, products and events.
What are the requirements of Natural Carbon Solutions (NCS)
Measure
Under the NCS accreditation, organisations must complete a detailed assessment of all GHG emissions associated with the organisation/product/event being measured.
Reduce
NSC prioritises the reduction of emissions before any offsetting activities. The framework includes setting specific and measurable carbon reduction targets.
Offset
Offsetting emissions is considered a valid step in the journey to net-zero but only after all efforts to reduce emissions have been made. Currently, both avoidance and removal credits can be purchased to compensate for any unavoidable emissions; however looking to the future, it is likely only removal credits will be approved under this accreditation.
Document
Organisations must implement a carbon reduction plan outlining the strategies and actions required to reduce their carbon footprint. If the organisation is using carbon offsets detailed documentation must be provided evidencing the chosen project is of high quality and environmental integrity.
Drawbacks
Although this accreditation emphasises the importance of carbon reduction, there are no mandatory reduction targets in place, this could result in some organisations relying on offsets to reach net-zero.
SBTi Corporate Net-Zero Standard
The purpose of the SBTi Corporate net-zero Standard is to guide companies in setting credible and measurable targets to achieve net-zero emissions. The Corporate net-zero Standard is suitable for any organisation but is particularly useful for those with large, complex operations and significant carbon emissions to ensure they commit to credible, science-based emission reduction targets.
What are the requirements of the SBTi CZS
Measure
Under the SBTi standard, companies are required to measure and record their Scope 1, 2 and 3 emissions.
Reduce
The standard requires organisations to reduce their greenhouse gas emissions by 90-95% by 2050 or earlier across Scopes 1, 2 and 3.
Offset
The STBi emphasises that companies must prioritise real emissions reductions and offsetting is only permitted for unavoidable emissions. The SBTi only allows for carbon removal offsets providing they do not form part of any near-term carbon reduction targets for organisations.
Document
Organisations are to document near-term (5-10 years) emission reduction targets including the percentage reduction and target years in addition to long term targets for reaching net-zero by 2050 with detailed plans for reducing emissions 90-95% across all scopes. This documentation will be formally submitted to the SBTi for validation will ensure they are aligned with the science based criteria for limiting global warming emissions.
Organisations must report annually on their emissions and progress towards meeting their targets, they are also required to publicly disclose their targets, progress and emission data.
Drawbacks
The SBTi corporate net-zero standard is a detailed initiative that requires a lot of time and resources. The standard also requires organisations to only purchase permanent carbon removal credits, which are typically more costly, and less widely available making this route less desirable and achievable for smaller businesses.
An overview of Corporate Sustainability Standards
Requires Scope 1, 2 and 3 reporting | Supports the use of carbon offsets | Offsets restricted to residual emissions | Third-party verified | Requires ongoing reporting of progress against targets | |
|---|---|---|---|---|---|
PAS 2060 | Scope 1, 2 and some scope 3 | Yes - avoidance and removal credits | Yes | No | No |
ISO 14086-1: 2023 | Yes, all scopes required | Yes - removal credits only | No | No | Yes - ongoing reporting is required to maintain carbon neutral status |
ISO14064-1 | No, only requires the reporting of Scope 1 and 2 | Yes - avoidance and removal credits | No | No | No |
NCS | Yes, all scopes required | Yes - avoidance and removal credits | Yes | Yes | Yes |
SBTi | Yes, all scopes | Yes - removal | Yes | Yes | Yes |
Benefits to Corporate Sustainability Standards for your business
Navigating corporate sustainability standards can be a daunting process, with so many to choose from it’s difficult to know which is going to be right for your business. Understanding and adhering to these frameworks can be of great benefit to your organisation, driving greater transparency, economic benefits and the opportunity to contribute to global decarbonisation efforts.