Modern supply chains face scrutiny not just for cost and efficiency, but for their environmental footprint too. Organisations obtaining an ISO 14068 carbon neutrality certification could use it as a transformative tool for building resilient supply chains that stand up to the scrutiny of environmental regulations.
What is ISO 14068 Carbon Neutrality?
ISO 14068 is the international standard for verifying claims of carbon neutrality. Unlike the older benchmarks PAS 2060, this ISO standard ensures alignment with international best practices, robust emissions accounting and an emphasis on actual carbon reductions before offsetting.
Key Principles of ISO 14068:
- Credibility: Requires comprehensive carbon accounting, reduction strategies and independent verification.
- Consistency: Aligns with existing ISO frameworks like ISO 14064, ISO 14001 and the GHG Protocol.
- Transparency: Mandates public disclosure of emissions data, offsets used, and reduction initiatives.
- Science-based: Supports the achievement of net zero through validated, progressive decarbonisation.
As businesses transition from PAS 2060 vs ISO 14068, the latter offers a globally recognised, science-driven pathway to verified carbon neutrality.
Learn More: PAS 2060 is being replaced by ISO 14068
Achieving ISO 14068 Certification
To meet ISO 14068 carbon neutrality certification, organisations must demonstrate that they:
- Measure: Conduct accurate and complete GHG inventories for all relevant scopes.
- Reduce: Prioritise emissions reductions through proven actions.
- Offset: Offset only those emissions that are truly unavoidable.
- Disclose: Communicate results transparently, including offset quality and reduction strategies.
- Verify: Undergo independent third-party certification to validate carbon neutrality claims.
Building a Sustainable Supply Chain
A sustainable supply chain integrates environmental, social and governance (ESG) practices across all stages, from raw material sourcing to product delivery and end-of-life management. ISO 14068 plays a crucial role in this transformation by enforcing transparent emissions tracking and proactive emissions reduction.
Steps to Build a Sustainable Supply Chain with ISO 14068:
- Carbon Mapping & Baseline Assessment
- life cycle assessments (LCAs) and emissions inventories for Scope 1, 2 and 3.
- Evaluate supplier emissions and material impacts.
- Decarbonisation Strategy
- Set Science-Based Targets (SBTs) for emissions reduction.
- Implement energy efficiency, renewable energy and low-carbon technologies.
- Supplier Engagement
- Integrate sustainability criteria into procurement.
- Offer training and tools to suppliers for emissions reduction.
- Offsetting Residual Emissions
- Invest in high-integrity carbon offset projects that meet ISO 14068 permanence and verification requirements.
- Independent Certification
- Partner with a certification body to verify compliance with ISO 14068 and publicly disclose results.
Business Benefits of a Sustainable Supply Chain
A sustainable supply chain benefits the environment and delivers measurable business gains, making it necessary investment for organisations.
Operational Resilience: Sustainable supply chains support diversified sourcing, reducing vulnerability to climate-related disruptions. It also increases the predictability and reliability of logistics.
Risk Mitigation: It protects against regulatory fines, litigation and reputational harm. Building a sustainable supply chain will also help prepare organisations for compliance with frameworks such as the EU Corporate Sustainability Reporting Directive (CSRD) and US Securities and Exchange Commission (SEC) climate disclosure rules.
Customer Loyalty and Brand Equity: It helps build consumer trust by proving carbon neutrality and environmental responsibility.
Access to Sustainable Finance: Aligning with ESG investment criteria and facilitates access to green bonds and sustainability-linked loans. ISO 14068 can be integrated into ESG reporting frameworks like Carbon Disclosure Project (CDP), Global Reporting Initiative (GRI) and Task Force on Climate-related Financial Disclosures (TCFD).
Cost Savings: Enhancing energy and resource efficiency could result in lower operational costs.
Supply Chain Decarbonisation Through ISO 14068
Decarbonising the supply chain is essential for achieving meaningful and measurable climate action, particularly as Scope 3 emissions, those not directly produced by the company but within its value chain, often constitute the largest share of a business's carbon footprint. At its core, ISO 14068 encourages businesses to go beyond mere offsetting and instead prioritise real reductions in emissions across the supply chain. This involves working closely with suppliers, logistics providers and partners to map carbon-intensive processes, implement improvements and validate outcomes.
Sector-Specific Benefits of a Sustainable Supply Chain
While all industries benefit from embedding sustainability into their supply chains, the impact and application of ISO 14068 vary across sectors. Understanding these sector-specific benefits enables businesses to tailor their carbon neutrality strategies more effectively.
Construction
The construction sector is one of the largest contributors to global greenhouse gas emissions, particularly through the production and use of materials such as cement, steel, and glass. A sustainable supply chain in this industry focuses on reducing embodied carbon, which refers to emissions generated throughout the lifecycle of construction materials. Here’s how ISO 14068 can enhance sustainable supply chain in construction:
- Lower Embodied Carbon: ISO 14068 helps reduce embodied emissions via material selection, reuse, and green concrete.
- Regulatory Readiness: Prepares firms for embodied carbon disclosure mandates in the UK, EU and North America.
- Client Preference: Firms aligned with ISO 14068 can more readily meet sustainability requirements and win contracts with environmentally conscious clients.
Mining
Mining is an energy-intensive industry with significant emissions resulting from the use of diesel-powered equipment, heavy transport and ore processing. A sustainable supply chain in mining focuses on reducing emissions across these operations and in the sourcing of equipment, chemicals and other inputs.
- License to Operate: Carbon neutrality improves community relations and environmental licensing prospects.
- Energy Transition Readiness: Supports decarbonisation in energy-intensive operations through renewables and fuel switching.
- Investor Attraction: ESG-focused investors increasingly favour mining companies demonstrating decarbonisation progress.
Manufacturing
In manufacturing, emissions arise from raw material sourcing, production processes, machinery and logistics. A sustainable supply chain in this sector leverages ISO 14068 to streamline operations, reduce waste and optimise energy use.
- Process Efficiency: Reducing emissions often aligns with reducing waste and improving production efficiency.
- Export Competitiveness: ISO 14068 enhances international credibility, aiding trade with regions requiring carbon disclosures.
- Innovation: Drives adoption of greener technologies such as hydrogen and circular design.
Shipping & Logistics
The shipping and logistics industry is central to global trade but also a major source of carbon emissions, contributing about 7% of global GHG emissions.
- Fuel Transition Support: Provides a framework for transitioning to low-emission fuels and alternative propulsion.
- Scope 3 Leadership: Logistics providers with ISO 14068 offer low-carbon delivery, supporting clients’ sustainability goals.
- Green Corridor Alignment: Helps firms participate in green shipping corridors with verified emissions reductions.
Learn More about ISO 14068
To support organisations on their journey, we are hosting an insightful session tomorrow in collaboration with credible carbon credit provider, One Tribe. This session: Achieve Carbon Neutrality with ISO 14068 aims to help attendees:
- Understand the scope of ISO 14068
- Define carbon neutrality vs net zero
- Navigate the requirements of ISO 14068
- Understand the role of verified carbon offsets
- Apply the standard to organisational contexts
- Learn from real-world application
Attendees who participate in the full hour will receive a CPD certificate within 28 days of the webinar.
The Bottom Line
The transition to a low-carbon economy is accelerating, and the ISO 14068 carbon neutrality certification is a critical framework that enables organisations to stay competitive, compliant and credible. ISO 14068 provides the structure needed to build supply chains that are environmentally responsible and economically resilient. To learn more about how to integrate carbon neutrality into your operations, visit this page.