ISO 14068-1: carbon neutrality, done credibly
ISO 14068-1:2023 is the first international standard for carbon neutrality.
It supersedes the UK's withdrawn PAS 2060, and it changes the order of operations: quantify the footprint, reduce and remove emissions within the value chain, and only then offset what remains.
This page explains what the standard requires, how the hierarchy works, and where it sits relative to net zero and UK reporting.
What ISO 14068-1 is, and why it replaced PAS 2060
ISO 14068-1:2023 is the first international standard for carbon neutrality. Its full title is “Climate change management — Transition to net zero — Part 1: Carbon neutrality”, and it was published in November 2023[1].
The standard provides principles, requirements and guidance for achieving and demonstrating the carbon neutrality of a subject — which can be an organisation or a product, including goods, services, events and buildings. It centres on quantifying, reducing and offsetting a carbon footprint[1].
For UK organisations, the headline change is one of lineage. ISO 14068-1 supersedes and builds on PAS 2060, the British specification that previously governed carbon neutrality claims. BSI stopped delivering its PAS 2060 scheme from 1 January 2025, after a 24-month transition window[2].
Our companion analysis of the older standard covers the detail of the change in our PAS 2060 transition guide.
What the standard actually requires
ISO 14068-1 sets out a connected sequence rather than a checklist.
A credible carbon neutrality claim has to rest on a quantified footprint, a documented plan, real reductions, and only then offsetting of what remains.
Quantify the carbon footprint. The starting point is a complete greenhouse gas inventory for the subject, built on established accounting — ISO 14064-1 for organisations and the GHG Protocol scopes — covering the relevant direct and indirect emissions[4].
Set a carbon neutrality management plan. The standard requires a documented plan with a defined pathway and targets, and a commitment from senior management to deliver it[3].
Apply the reduction hierarchy. Emissions must be reduced and removed within the value chain before offsetting is used — reductions and removals come first, offsetting last[1].
Offset residual emissions. Only the emissions that remain after the hierarchy has been applied are balanced by offsetting, using credits that meet the standard’s quality provisions[3].
Make a transparent claim. The standard sets clear disclosure expectations so that carbon neutrality claims are true, fair, scientifically valid and communicated transparently[1].
The carbon neutrality hierarchy
The defining feature of ISO 14068-1 is its hierarchy. The standard prioritises direct and indirect emission reductions and removal enhancements within the value chain over offsetting[1].
In practice this means offsetting cannot substitute for action. An organisation establishes a pathway with short- and long-term targets to minimise its footprint, and offsetting addresses only the residual that genuine reduction cannot yet eliminate[3].
| Step | What it covers | Priority |
|---|---|---|
| Quantify | Measure the footprint via ISO 14064-1 / GHG Protocol | Foundation |
| Reduce | Cut direct and indirect emissions across the value chain | First |
| Remove | Enhance removals within the value chain | Second |
| Offset | Balance residual emissions with quality credits | Last resort |
Because removals and reductions are prioritised, the standard provides detailed expectations for the credits used when reduction is not yet possible, helping organisations avoid low-integrity offsetting[3].
Carbon neutrality vs net zero and the SBTi
ISO 14068-1 is framed as part of the “transition to net zero”, but carbon neutrality and net zero are distinct claims[1].
Carbon neutrality, under ISO 14068-1, is a state in which residual emissions are balanced by offsetting after the reduction hierarchy has been applied. It can be achieved at a given point in time[1].
Net zero, by contrast, demands deep absolute decarbonisation across the value chain in line with climate science, with only a limited share of hard-to-abate residual emissions neutralised by permanent removals.
Frameworks such as the Science Based Targets initiative set the validation criteria for that pathway.
The practical implication: an ISO 14068-1 carbon-neutral claim is a credible, verifiable statement about a footprint today, but it is not equivalent to an SBTi-validated net-zero target. Organisations pursuing both should treat carbon neutrality as a milestone on the longer net-zero journey, supported by a structured net-zero strategy.
Relevance to UK reporting
ISO 14068-1 is a voluntary standard, not a UK legal requirement.
It does not replace mandatory regimes — it sits alongside them.
It relies on the same greenhouse gas accounting foundations as statutory reporting: ISO 14064-1 and the GHG Protocol scopes[4]. The footprint work an organisation does for UK carbon reporting therefore feeds directly into an ISO 14068-1 assessment.
For organisations already operating an environmental management system, the carbon neutrality work also complements ISO 14001 certification, giving a consistent, auditable basis for both management and external claims.
BSI’s verification scheme for organisational carbon neutrality under ISO 14068-1 has been available since 1 March 2024, giving UK organisations an accredited route to substantiate their claims[2].
ISO 14068-1: frequently asked questions
What is ISO 14068-1?
ISO 14068-1:2023, “Climate change management — Transition to net zero — Part 1: Carbon neutrality”, is the first international standard for carbon neutrality. Published in November 2023, it provides principles, requirements and guidance for achieving and demonstrating the carbon neutrality of a subject — which can be an organisation or a product such as goods, services, events or buildings. It centres on quantifying, reducing and offsetting a carbon footprint, with a hierarchy that prioritises real emission reductions and removals within the value chain over offsetting.
Has PAS 2060 been withdrawn?
Yes. PAS 2060:2014, the UK-developed specification for demonstrating carbon neutrality, has been superseded by ISO 14068-1:2023. BSI allowed a transition period of 24 months from the publication of ISO 14068-1 and stopped delivering its PAS 2060 scheme from 1 January 2025, when PAS 2060 was withdrawn. Verification opinions previously issued against PAS 2060:2014 remain valid for the historical periods they covered, but new carbon neutrality claims should reference ISO 14068-1.
How does ISO 14068-1 differ from net zero and the SBTi?
Carbon neutrality under ISO 14068-1 is a state in which a subject’s residual emissions are balanced by offsetting, achieved after applying the reduction hierarchy. Net zero, as defined by initiatives such as the Science Based Targets initiative (SBTi), goes further: it requires deep absolute decarbonisation across the value chain in line with climate science before only a limited share of residual emissions is neutralised by permanent removals. ISO 14068-1 explicitly frames carbon neutrality as part of the transition to net zero, but a carbon-neutral claim is not the same as an SBTi-validated net-zero target.
Does ISO 14068-1 set a required reduction percentage?
No. ISO 14068-1 does not prescribe a specific emissions threshold or a fixed annual reduction percentage. Instead it requires a documented carbon neutrality management plan with a defined pathway, targets and a hierarchy that puts reductions and removals ahead of offsetting. Any specific percentage targets an organisation adopts come from its own plan or from external frameworks, not from a number fixed in the standard.
Is our existing PAS 2060 certification still valid?
Verification statements issued against PAS 2060:2014 provide assurance over the historical claims and data they covered, and those opinions remain valid for that period. However, BSI withdrew the PAS 2060 scheme from 1 January 2025, so new or renewed carbon neutrality claims should be made against ISO 14068-1:2023. BSI’s ISO 14068-1 verification scheme for organisational carbon neutrality has been available since 1 March 2024.
How does ISO 14068-1 relate to UK sustainability reporting?
ISO 14068-1 is a voluntary standard, not a UK legal requirement. It sits alongside mandatory regimes such as SECR and the emerging UK Sustainability Reporting Standards, and it relies on the same underlying greenhouse gas accounting — ISO 14064-1 and the GHG Protocol — that underpins those frameworks. A robust ISO 14068-1 footprint and reduction plan can therefore support the data and narrative that wider sustainability disclosures require, but the standard governs carbon neutrality claims rather than statutory reporting.
- ISO 14068-1:2023 — Climate change management — Transition to net zero — Part 1: Carbon neutrality — International Organization for Standardization (ISO) · First international standard for carbon neutrality; quantify, reduce and offset with a reduction hierarchy
- PAS 2060 to be withdrawn — what you should know — BSI (British Standards Institution) · ISO 14068-1 supersedes PAS 2060; BSI PAS 2060 scheme withdrawn from 1 January 2025; ISO 14068-1 verification from 1 March 2024
- ISO 14068-1 — Carbon Neutrality Verification — BSI (British Standards Institution) · Quantification, reduction, removal and offsetting of GHG emissions; built from the principles of PAS 2060
- Corporate Accounting and Reporting Standard — Greenhouse Gas Protocol · Underlying Scope 1, 2 and 3 emissions accounting framework