What is carbon neutrality
According to the IPCC (the United Nations body for assessing the science related to climate change), carbon neutrality is achieved when there is a balance between the greenhouse gas emissions produced and those removed from the atmosphere, within a clearly defined subject, scope, and timeframe.
For an organization, promoting carbon neutrality means outlining a transparent action plan. It starts with accurately measuring your carbon footprint, continues by prioritizing emission reductions and increasing removals throughout the value chain, and concludes, only for the remaining unavoidable portion, with potential offsetting through certified external projects.
It is important to clarify that a carbon neutrality claim does not mean that the company has not generated emissions or is free from other environmental and climate impacts, but rather attests to a concrete and verifiable commitment to measuring, reducing, and responsibly managing its emissions.
However, achieving this balance is a complex challenge due to dynamics such as:
- the limitations of natural sinks capable of absorbing carbon (such as forests, soil, and oceans), which can remove approximately 9.5–11 billion tonnes (Gt) of CO₂ per year, while global emissions exceed 37 Gt annually;
- the limitations of technological solutions for carbon capture and storage, which are still in the early stages of development or require very high costs and energy consumption;
- the risk of storage reversibility due to the fact that CO₂ accumulation in natural reservoirs like forests is not necessarily permanent (events such as wildfires or deforestation can, in fact, release the CO₂ back into the atmosphere).
All these limitations show us how reducing emissions at the source must always take priority over offsetting alone.
The European Union, through the Green Deal and the 2021 Climate Law, is working to address these issues by making the goal of becoming the first net-zero emissions continent by 2050legally binding, while setting an intermediate emissions reduction target of at least 55% by 2030.
What are the benefits of achieving carbon neutrality for a company
Aiming for carbon neutrality has tangible impacts on growth and competitiveness. Integrating carbon neutrality into your business model offers a series of concrete advantages that directly impact the financial and operational health of the organization.
Reputation and capital attraction
It enhances brand image, positioning the company as a responsible leader. This allows you to attract both customers who are increasingly conscious in their purchasing choices and investors who now use ESG criteria as a compass for their investments.
Mitigation of regulatory risks
Structuring climate data, responsibilities, and processes helps the organization proactively prepare for evolving requirements in reporting, procurement, and environmental communication. This reduces financial and operational exposure to increasingly stringent carbon regulations and taxes.
Operational efficiency and savings
Optimizing processes to reduce your carbon footprint can translate into greater energy efficiency and the elimination of waste, leading to clear savings on operating costs in the medium and long term.
Competitive advantage and market access
Structuring and verifying your carbon neutrality statement is now a key requirement for accessing certain markets, forming commercial partnerships, and qualifying as a preferred supplier in the value chains of major players. Furthermore, it often represents a rewarding criterion or even a prerequisite for participating in public and private tenders.
To ensure this commitment is not perceived as mere greenwashing and to guarantee that your efforts are scientifically sound, companies now have an important tool at their disposal: the ISO 14068-1standard. This international standard provides the guidance to measure and declare your carbon neutrality in a transparent and globally recognized way, helping to mitigate the risks of misleading communications or perceptions of greenwashing.
What is the ISO 14068-1:2023 standard and what has changed?
The ISO 14068-1:2023 is the international standard that defines the principles, requirements, and guidelines for achieving and demonstrating genuine carbon neutrality. This standard develops and harmonizes concepts globally that were previously introduced by the PAS 2060, strengthening the hierarchy between reductions, removals, and offsetting, as well as path planning and requirements for transparency and verifiability.
The main innovations and differences compared to the past can be summarized in these key points.
The binding hierarchy of actions
The standard prioritizes achieving carbon neutrality by first accurately quantifying greenhouse gases (according to standards such as ISO 14064-1 or the GHG Protocol), then progressively reducing direct and supply chain emissions, subsequently enhancing direct removals (such as reforestation), and only as a last resort for unavoidable residual emissions, resorting to high-quality carbon credits.
Integration with the ISO family
By adopting a structure harmonized with other ISO 14000 family standards, the new regulation integrates easily with existing corporate environmental management systems, such as ISO 14001 or ISO 14067 (dedicated to product Carbon Footprint).
Requirement for a management plan and public report
To declare carbon neutrality under ISO 14068-1, it is now mandatory to draft a detailed "Carbon Neutrality Management Plan" (with short- and long-term goals, roles, monitoring, and credit selection criteria) and publish a transparent "Carbon Neutrality Report." This document must make all data public, including calculation methodologies, results achieved, and the exact traceability of purchased and retired carbon credits.
Mandatory independent verification
While PAS 2060 previously allowed for self-declarations, ISO 14068-1 strictly requires that the carbon neutrality declaration be verified and validated by an independent third party. This independent third party ensures the accuracy of the data, providing a shield against the risk of greenwashing.
The 5 steps to obtain ISO 14068-1:2023 certification
Obtaining ISO 14068-1:2023 certification represents the result of a process structured. The standard provides a roadmap for companies, organized into five technical phases designed to transform environmental commitment into a solid, verifiable business process.
1. Carbon footprint measurement
Everything begins with the scientific calculation of greenhouse gas emissions in accordance with ISO 14064-1 or the GHG Protocol. In the latter case, emissions are categorized into Scope 1 (direct emissions), Scope 2 (indirect emissions from purchased energy), and Scope 3 (all other indirect emissions across the value chain).
2. Mitigation plan
The company must draft a detailed Carbon Footprint Mitigation Plan. This document must define precise decarbonization targets, timelines, climate KPIs to monitor progress, and planned financial investments.
3. Decarbonization strategies
The focus shifts to concrete action through technical and organizational measures. Key activities include improving the energy efficiency of production processes, transitioning to renewable energy sources, dematerialization, selecting low-impact raw materials, optimizing supply chain logistics, reducing and recovering waste, and adopting sustainable mobility models for staff.
4. Neutralization (offsetting)
Only after maximizing emission reductions can a company offset the remaining balance. This is achieved by purchasing certified carbon credits from high-quality (high-rated) carbon offsetting projects that guarantee genuine environmental benefits, project additionality, long-term permanence, and the absolute absence of double counting.
5. Third-party verification
The final step is an audit conducted by an independent, third-party certification body. This process validates the entire workflow, verifies compliance with ISO 14068-1, and issues the official certification, ensuring maximum market credibility.
