ISO Net Zero standard: The new gold standard for credible climate targets

The goal is ambitious: to create globally uniform, verifiable and credible requirements for the transition to net zero. The ISO Net Zero standard is aimed at organizations of all sizes, industries and regions, as well as cities, governments and individuals. For the first time, it creates a universal framework that harmonizes the various approaches and definitions currently shaping the market.

The key points of the new ISO Net Zero standard

The new ISO Net Zero standard (probably ISO 14060 "Net Zero Aligned Organizations") is being created as part of the ISO 14060 series and builds on the previous ISO Net Zero Guidelines (IWA 42:2022). It supplements the existing ISO 14068-1 on climate neutrality and thus creates a coherent system for various climate targets.

The binding requirements of the ISO Net Zero standard are significantly stricter than many previous approaches. All direct and indirect emissions (Scope 1, 2 and 3) must be accounted for and addressed with specific targets. The target paths are clearly based on the 1.5-degree target of the Paris Agreement, which means that no compromises are made in terms of the scientific basis.

Particularly relevant in practice: organizations must make a binding commitment that includes the time period, reduction and removal measures (mitigation and removals). Residual emissions may only be offset by human-induced removal technologies - such as reforestation, direct air capture or enhanced weathering. Offsetting is only permitted in a clearly defined transition phase and must be reported transparently.

Current development status and schedule of the ISO Net Zero standard

The ISO Net Zero standard is currently in the Working Draft (WD) stage; a Committee Draft (CD) should be available for public comment by the end of June 2025. The consultation will be followed by the Final Draft International Standard (FDIS), which will then enter the approval process. The public consultation is expected to begin at COP30, which will give companies and other organizations the opportunity to contribute their experiences and requirements.

Thousands of experts from over 170 countries are involved in the development of the ISO Net Zero standard to integrate the latest scientific findings and ensure broad acceptance. This international cooperation is crucial for the subsequent recognition and implementation of the standard.

ISO Net Zero standard vs. SBTi: complementary approaches for Net Zero

In addition to the new ISO Net Zero standard, there is already the Science Based Targets initiative (SBTi), which has established itself as the "gold standard" for science-based corporate targets. Both standards pursue the goal of putting companies and organizations on a credible path to net zero emissions, but differ in their approach, scope and level of detail.

Target group and scope of application

The ISO Net Zero standard is a global, universal standard for organizations of all sizes, industries and sectors. It is being developed by ISO as an international standard and is intended to be applicable and certifiable worldwide. The focus is on harmonization and broad acceptance, which makes it attractive for a wide range of organization types.

The SBTi Net Zero Standard, on the other hand, was developed specifically for companies that want to set science-based climate targets. It has not yet been applied to countries, cities or individuals, but is demanded by many investors and stakeholders as proof of ambitious climate protection and enjoys a high level of trust in the financial world.

Methodological differences and requirements

Both standards are based on the 1.5 degree target, but differ in their methodological approach. The ISO Net Zero standard integrates the latest climate science and builds on existing ISO guidelines, while SBTi is based on IPCC scenarios and scientific reduction pathways.

In terms of emissions coverage, both standards are in agreement: all significant emissions along the value chain must be recorded. The ISO Net Zero standard makes this mandatory for all scope categories, while SBTi also focuses on materiality and relevance.

The objectives differ in the details: the ISO Net Zero standard requires binding targets for reductions and removals, whereby residual emissions can only be offset by recognized measures. SBTi calls for short-term (5-10 years) and long-term targets (by 2050) with a reduction of over 90% of all emissions, whereby residual emissions must be offset by permanent removals.

Reporting and certification

A key difference lies in certification: the ISO Net Zero standard can be certified worldwide according to proven ISO procedures, which offers companies the security and recognition they are accustomed to. SBTi offers validation and verification by the initiative itself, but no formal certification according to ISO logic.

Both standards require mandatory reporting and traceability. The ISO Net Zero standard provides for annual progress reports, while SBTi has tightened up monitoring and tracking with its new version (V2).

Cooperation instead of competition

It is important to understand that the two standards are not in competition with each other. SBTi is involved in the development of the ISO Net Zero standard as a "liaison organization". The aim is to make the standards compatible and interoperable so that companies can combine both approaches. The ISO builds in part on the methodology and sector objectives of the SBTi, but goes beyond this and also addresses government and social stakeholders.

Practical implications of the ISO Net Zero standard for companies

The new ISO Net Zero standard will significantly simplify the transition to net zero worldwide by creating uniform, verifiable and robust requirements for all types of organizations for the first time. This will harmonize internationally the previously very different and sometimes contradictory definitions and approaches.

The global orientation and comparability means that companies, cities and governments can align their climate targets according to the same principles and methods. This makes it much easier to compare and understand net zero strategies and creates planning certainty for long-term investments.

Specifying clear criteria for the accounting and reduction of all emissions as well as for the permitted methods for offsetting and removal strengthens confidence in net zero targets. The independent verification of the measures increases the credibility of the reported progress and successes.

Conclusion: A new chapter for climate protection

The new ISO Net Zero standard marks an important milestone in the development of global climate protection standards. It will serve as a common denominator for credible climate protection worldwide and enable organizations to pursue their climate targets efficiently, transparently and verifiably. Together with established standards such as SBTi, it will create a robust system that accelerates the transition to net zero and reduces the risks of bad investments.

For companies, this means Those who are already systematically recording and reducing their emissions today are well equipped for the coming requirements. Investing in solid climate accounting pays off - both in terms of credibility and strategic planning. Because one thing is certain: the time of non-binding climate promises is coming to an end.