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ISO 14064: Objectives and Requirements
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By Kara Anderson, UK Copywriter, on 15/01/2025
Updated by Kara Anderson, on 30/03/2026
With regulatory pressure intensifying and stakeholders demanding greater transparency around climate impact, understanding how to measure and report greenhouse gas (GHG) emissions has never been more important. ISO 14064 provides the internationally recognised framework for doing exactly that.
In this article, we'll cover:
What ISO 14064 is and how it's structured
The key requirements
Why ISO 14064 matters for your organisation
How to implement it in practice
What is ISO 14064?
ISO 14064 is an international standard developed by the International Organisation for Standardisation (ISO) to provide a consistent framework for measuring, reporting, and verifying greenhouse gas (GHG) emissions. It is part of the broader ISO 14000 family, which focuses on environmental management standards designed to support sustainability efforts across industries.
ISO 14064 is particularly valuable for organisations seeking to improve transparency around their carbon footprint, ensure regulatory compliance, and participate in voluntary sustainability initiatives or carbon markets.
The standard is divided into four interconnected parts, each targeting a different aspect of GHG management:
| ISO 14064 Part | Focus Area | Key Details |
|---|---|---|
|
ISO 14064-1
|
Organisational Level | Principles for GHG inventories, including the 2018 requirement to move from Scopes to 6 Reporting Categories. |
|
ISO 14064-2
|
Project Level | Quantifying, monitoring, and reporting emissions reductions or removal enhancements (critical for carbon credits). |
|
ISO 14064-3
|
Verification & Validation | The framework for the audit itself - defining how to verify that a GHG statement is accurate. |
|
ISO 14066:2026
|
Competence & Remote Audit | Updated in early 2026 to provide the formal requirements for teams conducting remote and hybrid verification using digital evidence. |
By dividing the standard into these parts, ISO 14064 ensures a comprehensive approach to emissions management - covering everything from data collection to independent verification.
The core requirements: how ISO 14064 works in practice
Think of ISO 14064 as the 'Financial Accounting Standards' but for carbon. Just as a company can't just make up its own way of reporting profit, it shouldn't make up its own way of reporting emissions.
The standard is broken into three parts, each serving a specific role in your sustainability journey.
ISO 14064-1: building your carbon map (the organisation)
If you want to manage your footprint, you first have to find it. This part of the standard is about creating a GHG Inventory (a complete list of every gram of carbon your company is responsible for). It is no longer enough to just report electricity and gas; the 2018/2024 updates require a deep dive into your entire value chain.
Consolidation Approach
You must formally choose between Equity Share (accounting based on ownership %) or Control (financial or operational).
This choice must be applied consistently to avoid "cherry-picking" low-emission assets.
The 6-Category Reporting Model
ISO 14064-1 requires emissions to be classified into six categories:
- Direct GHG emissions and removals (e.g., company vehicles, onsite boilers)
- Indirect emissions from imported energy (e.g., electricity, steam)
- Indirect emissions from transportation (e.g., freight, commuting, travel)
- Indirect emissions from products used (e.g., purchased goods, water, waste)
- Indirect emissions from use of products (e.g., customer energy use)
- Indirect emissions from other sources
Significance and Materiality
You must define a process to determine which indirect emissions (Categories 3–6) are significant.
Supply chain emissions cannot be ignored. Any exclusions must be supported with a technical justification.
ISO 14064-2: project-level quantification
This is the standard used for carbon offset projects or internal insetting initiatives. It focuses on the Baseline vs. Project methodology.
The Baseline Scenario
You must technically describe what the GHG emissions would have been in the absence of the project. This is the Primary Effect.
Secondary Effects (Leakage)
You must account for unintended consequences. If impacts shift emissions elsewhere, that leakage must be subtracted from total carbon savings.
Additionality & Permanence
The project must prove that the climate benefit is additional to what would have happened anyway, and that the carbon removal is permanent.
SO 14064-3: verification and validation
This is the technical framework for the audit process itself. In the current regulatory environment, this is often the most scrutinised section.
Level of Assurance
You must define the depth of the audit before verification begins.
Assurance Option
Limited Assurance
A plausibility check, commonly used for voluntary reports. The auditor assesses whether the statement appears credible, but does not test primary evidence as deeply.
Assurance Option
Reasonable Assurance
A high level of assurance requiring the auditor to examine primary data sources. This is the gold standard for 2026 CSRD compliance.
Materiality Thresholds
Before the audit begins, a materiality percentage is agreed, such as 5%. If identified errors exceed that threshold and materially change the total footprint, the verification is failed.
Strategic & Risk Analysis
The auditor assesses the risk of misstatement by reviewing not only the final numbers, but also the data management systems and collection processes behind them.
Summary table: ISO 14064 at a glance:
| ISO 14064 Part | Key Requirements | Practical Examples (2026 Context) |
|---|---|---|
|
ISO 14064-1
(Organisational Level) |
|
|
|
ISO 14064-2
(Project Level) |
|
|
|
ISO 14064-3
(Verification & Validation) |
|
|
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How to implement ISO 14064 in your company
The goal of implementation isn't just to have a number - it’s to build a data trail that can survive a professional audit. Here is the practical path to getting your organisation certified.
How to Build an ISO-Compliant GHG Reporting Process
This step-by-step timeline shows the practical sequence for preparing an ISO 14064-aligned greenhouse gas inventory and getting it ready for verification.
1
Formalise Your Reporting Policy
Before touching any data, create an internal rulebook that locks in your technical choices so they cannot shift halfway through the year.
Consolidation Rule
Formally document whether you are using Operational Control or Equity Share.
Recalculation Policy
Define when you will restate your Base Year. For example, if an acquisition increases your footprint by more than 5%, your policy should require recalculation to preserve fair comparison over time.
2
Run a Significance Screening
You do not need to measure every paperclip, but you do need to prove why some sources were excluded.
The Action
Conduct a high-level scan across all 6 ISO categories. For heavy categories such as Category 4: Purchased Goods, use spend-based data or sector averages to test significance.
The Documentation
Create a Significance Register. If you exclude a category, record the technical justification. “We didn’t have the data” is not an acceptable audit defence.
3
Make Your Data Traceable
This is the most important step for passing an audit. Every number should have a clear trail back to its source.
Use Original Sources
Move away from broad averages and toward actual units: kilowatt-hours from a utility bill, litres from a fuel card, or kilograms from a waste contractor.
Be Honest About Accuracy
Record the confidence level of each dataset. High-quality digital meter data may be low uncertainty; estimated area-based office calculations may be high uncertainty. That transparency improves audit credibility.
4
Create the ISO-Compliant GHG Report
This is not a general sustainability brochure. It is a technical declaration that must align with ISO principles such as Relevance, Completeness, Consistency, Accuracy, and Transparency.
Include Your GWP Values
Clearly state which IPCC Assessment Report you are using for Global Warming Potentials, such as AR6.
Disclose Exclusions
Be explicit about data gaps or exclusions. For auditors, transparency is often more important than claiming 100% perfection.
5
The Verification Audit
The final stage is the independent review by an accredited verifier. This is the truth test of the whole process.
Strategic Analysis
The verifier reviews your business context and data management system to identify high-risk areas for misstatement.
Evidence Gathering
The auditor samples reported figures and traces them from the final report back to original source documents such as utility bills or fuel receipts.
Verification Statement
Once satisfied, the verifier issues the formal statement. In the 2026 regulatory environment, this document is a key defence against greenwashing claims.
Why ISO 14064 matters
If you’re operating in the modern global market, estimated carbon numbers are no longer enough. ISO 14064 has shifted from a voluntary gold standard to a practical necessity for several important reasons:
The End of Vague Green Claims
As of 2026, consumer protection laws such as the EU Green Claims Directive make it unlawful to use claims like “eco-friendly” or “carbon neutral” without specific, third-party verified proof. ISO 14064-3 provides the recognised audit framework that gives marketing claims defensible scientific evidence and helps protect against greenwashing allegations.
Meeting CSRD and SEC Requirements
For companies subject to the CSRD in Europe or SEC climate disclosure requirements in the US, reporting must be audit-ready. ISO 14064 helps structure the internal GHG inventory in a way external auditors can verify, reducing reporting friction and cutting months of back-and-forth during annual compliance cycles.
Access to Green Capital
In 2026, banks and investors increasingly tie lending terms and investment decisions to verified ESG performance. An ISO-verified carbon footprint is often required for Sustainability-Linked Loans, showing that climate targets are grounded in measurable reality rather than unsupported ambition.
Supply Chain Pressure
Even smaller companies are being pushed by large customers to provide verified emissions data for Scope 3 reporting. An ISO 14064-compliant inventory makes you a lower-risk supplier and strengthens your position in increasingly competitive procurement processes.
Choosing your framework: how ISO 14064 fits into the global landscape
In 2026, the carbon reporting landscape is much more crowded than it was a few years ago. While ISO 14064 and the GHG Protocol remain the big two, they now interact with several new heavyweights that dictate how businesses must operate.
If you’re deciding on a framework, here’s how the main players stack up:
| Framework | Primary Purpose | Best Used For... |
|---|---|---|
|
ISO 14064
|
Verification & Audit | Formal certification. It’s the "how to pass an audit" standard required for 2026 regulatory compliance. |
|
GHG Protocol
|
Accounting Logic | The "calculator" rules. It provides the most detailed math for complex areas like supply chain (Scope 3) emissions. |
|
CSRD (ESRS E1)
|
Legal Disclosure | Mandatory for EU-linked firms. It’s the law that tells you what must be in your annual report. |
|
ISSB (IFRS S2)
|
Financial Risk | Global investors. It treats carbon like a financial risk, making your climate data as readable as a balance sheet. |
Why ISO 14064 is important for UK companies
For UK businesses, carbon reporting is no longer just a best practice - it's a legal and commercial requirement for many companies. As the UK aligns its domestic rules with global standards, ISO 14064 has emerged as the bridge between raw data and regulatory compliance.
🇬🇧 UK Sustainability Reporting Standards (UK SRS)
Regulatory Context
UK SRS S1 and S2 (released 2026) require large and listed companies to disclose climate risks and GHG emissions.
The ISO Connection
ISO 14064-1 provides the technical structure behind your inventory, ensuring disclosures are audit-ready from day one.
📊 SECR Compliance
Who It Applies To
Large UK companies (250+ employees, £36m+ turnover, or £18m+ balance sheet) must report under SECR.
The ISO Value
Using ISO 14064-1 as your methodology gives your disclosures immediate credibility with Companies House and stakeholders.
⚖️ Anti-Greenwashing Rule (FCA)
Regulatory Pressure
FCA enforcement requires all sustainability claims to be clear, fair, and not misleading.
The Legal Shield
An ISO 14064-3 Verification Statement provides strong, defensible evidence that claims like “Net Zero” are backed by science.
🔗 Supply Chain & Procurement
Market Reality
Large organisations and public sector buyers require verified emissions data across their supply chains.
Competitive Advantage
An ISO 14064-compliant inventory positions you as a low-risk, transparent supplier and simplifies tender processes.
UK compliance summary: which rule applies to you?
| Regulation | Who it's for | How ISO 14064 helps |
|---|---|---|
|
UK SRS (S1 & S2)
|
Listed and Large Private Firms | Provides the reasonable assurance data structure required by the FCA and DBT. |
|
SECR
|
Firms with 250+ staff / £36m turnover | Offers a globally recognised methodology to cite in your annual Strategic Report. |
|
SDR (Labels)
|
UK Asset & Fund Managers | Verifies the underlying carbon data used for “Sustainable Focus” or “Impact” labels. |
FAQs: ISO 14064
Is ISO 14064 certification mandatory?
Technically, ISO 14064 is a voluntary standard. However, as of 2026, many regulations - such as the EU’s CSRD and various UK public procurement rules - mandate third-party assurance of carbon data. While you aren't legally forced to buy the ISO certificate itself, using the ISO 14064-3 framework for your audit is the most widely accepted way to meet these legal requirements.
How long does the verification process take?
For a medium-sized company with organised data, the verification process (from initial gap analysis to the final statement) typically takes 3 to 6 months. If you are aiming for Reasonable Assurance, expect a longer timeline as the auditor will need to perform deeper site visits and technical data testing.
What is the difference between ISO 14064 and ISO 14067?
While both are part of the same family, they have different targets:
- ISO 14064 looks at your organisation as a whole (your offices, fleet, and total supply chain).
- ISO 14067 is specifically for the Carbon Footprint of a Product (CFP). You would use this if you wanted to put a "Carbon Neutral" label on a specific item you sell.Can an SME (Small-to-Medium Enterprise) achieve ISO 14064?
Yes. In fact, many large corporations now require their SME suppliers to provide ISO-aligned data. For smaller firms, the standard allows for a proportional approach - focusing on the most material (significant) emission sources rather than every minor detail, making it much more manageable than it first appears.
What is the newly released ISO 14064-5?
Published in early 2026, ISO 14064-5 provides formal guidance on Remote Verification. It outlines how auditors can use digital evidence, satellite imagery, and remote e-audits to verify emissions data without being physically present at every site. This has significantly reduced the cost of auditing for companies with global or remote operations.
Close
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