ISO 14068 for Procurement is Vital for your Supply Chain

Want to prove your organisation is carbon neutral? ISO 14068 (formerly known as PAS 2060) is the internationally recognised standard used to prove carbon neutrality. It’s designed to guide organisations to measure, manage and certify their carbon footprint. This impacts every sector in a company, with procurement teams in particular affected as supply chain emissions could account for up to 90% of a company's carbon footprint. As such, procurement teams are increasingly expected to drive sustainability across supply chains. To fully address this, understanding ISO 14068 for procurement is critical for a sustainable supply chain.

ISO 14068 for Procurement: Key Facts

ISO 14068 standard defines the requirements for carbon neutrality in products, services and organisations. It ensures a rigorous approach by covering three essential pillars:

• Accurate Measurement: Greenhouse gas (GHG) emissions must be measured consistently, covering Scope 1 (direct), Scope 2 (energy-related) and Scope 3 (supply chain).
• Reduction First: Priority must be given to reducing emissions before using high-quality carbon offsets.
• Independent Verification: All claims must undergo external ISO 14068 verification to prove compliance and avoid misleading declarations.

The major challenges that the supply chain could face when reporting carbon, without the ISO 14068 standard in place, include: inconsistent reporting methodologies, lack of independent verification and difficulty distinguishing genuine carbon neutrality from marketing claims. Adopting ISO 14068 for procurement addresses these challenges by creating a clear evaluation framework that procurement teams can apply in supplier screening, tendering and ongoing monitoring. Likewise, employing the services of third-party sustainability consultants to guide ISO 14068 implementation will help accelerate accreditation and streamline carbon management plans.

Equipping Your Procurement Team with ISO 14068 Support

As emissions from the supply chain contribute significantly to an organisation’s carbon footprint, it’s important to prioritise ISO 14068 training for the procurement team.

• Train Procurement Teams: Procurement professionals must understand the details of ISO 14068, including how to review supplier documentation, evaluate third-party verification and recognise credible carbon neutrality claims. Training ensures teams can confidently apply the standard in real-world procurement decisions.
• Integrate Standards into Procurement Policies: Organisations should embed ISO 14068 for procurement into supplier codes of conduct, tender requirements and contractual obligations.
• Engage and Support Suppliers: Not all suppliers, particularly SMEs, will have the resources to achieve ISO 14068 carbon neutrality certification immediately. Larger organisations can offer ISO 14068 support, guidance and collaboration to help smaller suppliers build capability and align with standards.
• Establish Ongoing Verification and Audits: Regular supplier assessments and third-party audits ensure compliance with ISO 14068 verification over time, preventing backsliding or outdated claims.
• Leverage Digital Tools for Transparency: Carbon accounting and procurement platforms can be integrated with ISO 14068 support to provide real-time tracking, verification records and emissions data across the supply chain. This strengthens transparency and improves reporting accuracy.

Learn More: Understanding ISO 14068: A Sustainable Future with Carbon Neutrality

Key Challenges Facing ISO 14068 for Procurement

The benefits of ISO 14068 for procurement span improvement in the quality of the business operation, stakeholder engagement and industry compliance. However, it also faces significant challenges that could affect the implementation of the standard in supply chains, especially on a global scale. These must be recognised and proactively managed:

Data Gaps and Reliability: Scope 3 data can be difficult to gather, and suppliers may report emissions using inconsistent methodologies.

Solution - Introduce standardised reporting templates aligned with the ISO 14068 standard and require third-party audits of supplier data. Digital procurement platforms can also streamline emissions tracking and reduce manual data errors.

Cost Implications: Certification and verification come with costs that some suppliers may struggle to absorb. This can lead to resistance or withdrawal from supply chain participation.

Solution - Procurement teams should communicate the long-term commercial benefits of certification, including stronger market access and reduced regulatory risks. Working closely with a third-party sustainability verifier can help communicate the business benefits of ISO 14068 accreditation to stakeholders.

Risk of Over-reliance on Carbon Offsets: Some suppliers may pursue carbon neutrality claims primarily through offsetting, rather than reducing actual emissions. This weakens the integrity of supply chain sustainability.

Solution – Offsets are only recommended as a last resort, after all reduction strategies have been exhausted. Procurement policies should explicitly limit reliance on offsets and mandate clear evidence of emissions reduction before offsetting.

The Business Benefits of ISO 14068 for Procurement

1. Ensuring Credibility of Carbon Neutrality Claims
   Procurement teams are often presented with carbon-neutral products or services, but without independent verification, these claims are vulnerable to accusations of greenwashing. ISO 14068 verification provides a transparent framework to confirm that suppliers meet rigorous standards, giving confidence to buyers and stakeholders alike.
2. Managing Risk in Scope 3 Emissions
   For most organisations, Scope 3 emissions, those linked to suppliers, transport and distribution, make up the largest share of their carbon footprint. Embedding ISO 14068 for procurement ensures suppliers provide consistent and verified data, reducing the risk of non-compliance with reporting frameworks like the Corporate Sustainability Reporting Directive (CSRD) or the UK’s Streamlined Energy and Carbon Reporting (SECR).
3. Aligning with Investor and Regulatory Expectations
   Investors increasingly demand proof of carbon neutrality that is independently certified. The ISO 14068 standard aligns procurement practices with global disclosure frameworks, helping companies to avoid financial penalties, reputational risks and loss of access to capital.
4. Gaining Competitive Advantage
   Organisations that build procurement capability around ISO 14068 support will differentiate themselves from competitors. By requiring ISO 14068 carbon neutrality certification in supplier contracts, companies can demonstrate verifiable progress towards sustainability targets, strengthening brand reputation and market share.

The Bottom Line

The ISO 14068 standard sets out requirements for achieving and communicating carbon neutrality in a consistent, verifiable and globally recognised way. When organisations embed ISO 14068 support into their procurement processes, they can ensure that supplier claims are independently validated, reduce risks of greenwashing and strengthen their competitive edge in markets where sustainability credentials increasingly determine customer and investor confidence.