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ISO 14064: Objectives and Requirements

ESG / CSRLegislation & Standards

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Kara Anderson

updated 15 Jan 2025

UK Copywriter at Greenly

CO2e, or carbon dioxide equivalent, is a standardised unit used to measure the climate impact of various greenhouse gases. While carbon dioxide (CO2) is the most commonly referenced greenhouse gas, it’s not the only one contributing to global warming. Other gases, such as methane (CH4) and nitrous oxide (N2O), have a much higher warming potential than CO2, making it difficult to compare their effects on the climate. CO2e solves this by providing a way to express the impact of different greenhouse gases using a single, comparable metric.

Whether you’re reading a corporate sustainability report, assessing your personal carbon footprint, or reviewing climate policy targets, you’re likely to encounter CO2e. But how exactly is it calculated, and why is it such a crucial tool in the fight against climate change?

👉 In this article, we'll explore what CO2e is, how it’s calculated, and why it plays a key role in emissions reporting and sustainability efforts.

What is CO2e?

ISO 14064 is an international standard developed by the International Organisation for Standardisation (ISO) to provide a consistent framework for measuring, reporting, and verifying 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.

ISO 14064 overview

ISO 14064 is divided into three interconnected parts, each targeting a different aspect of GHG management:

ISO 14064 Part	Focus Area	Key Details
ISO 14064-1: GHG Inventories and Reporting	Organisational-level GHG Accounting	Provides principles and requirements for developing and managing a GHG inventory, including identifying direct and indirect emissions (Scope 1, 2, and 3) and reporting data transparently.
ISO 14064-2: GHG Projects	Project-Based Emissions Reduction and Removal	Focuses on quantifying, monitoring, and reporting emissions reduction projects. Examples include renewable energy installations or reforestation efforts.
ISO 14064-3: GHG Verification and Validation	Third-Party Data Verification	Provides a framework for verifying and validating GHG data and assertions, ensuring accuracy, reliability, and consistency in emissions reporting.

💡 By dividing the standard into these three parts, ISO 14064 ensures a comprehensive approach to emissions management - covering everything from data collection to independent verification.

Key requirements of ISO 14064

ISO 14064 sets out specific requirements for organisations aiming to measure, report, and verify their GHG emissions. These requirements are divided across the three parts of the standard, each focusing on a different aspect of emissions management.

ISO 14064-1: GHG inventories and reporting requirements (organisational level)

ISO 14064-1 outlines the principles and criteria for creating a GHG inventory at the organisational level. Its key requirements include:

GHG inventory development: Organisations must establish a comprehensive GHG inventory, identifying all relevant emission sources and carbon sinks. This involves defining the organisational boundaries (eg. operational control, financial control, or equity share).
Emission classification: Emissions must be categorised as:
Scope 1 (Direct emissions): Emissions from owned or controlled sources.
Scope 2 (Indirect emissions from energy use): Emissions from purchased electricity, heat, or steam.
Scope 3 (Other indirect emissions): Emissions from the value chain, including supply chain activities and business travel.
Quantification and methodologies: The standard requires using recognised quantification methodologies and emission factors to ensure consistency and accuracy. Organisations must also disclose the methods used for measuring emissions and any assumptions made.
Transparency in reporting: Reports should clearly present the results of emissions measurements, including:
The reporting period.
Data sources and calculation methods.
Any limitations, assumptions, or uncertainties affecting the data.
Data verification: To ensure data integrity, ISO 14064-1 recommends independent third-party verification, though it is not mandatory under this section.

ISO 14064-2: GHG project requirements (project level)

ISO 14064-2 focuses on specific projects aimed at reducing or removing GHG emissions, such as renewable energy initiatives or afforestation projects. The key requirements include:

Project definition: Clear definition of the project scope, including boundaries, objectives, and expected GHG reduction outcomes.
Baseline scenario: Establishment of a baseline scenario representing the emissions level without the project intervention, to measure actual emission reductions accurately.
Quantification and monitoring:
Selection of recognised methodologies for measuring GHG reductions.
Implementation of a monitoring plan to track project performance over time.
Transparency and reporting: Reporting should disclose all relevant project data, including how reductions were calculated and any uncertainties involved.
Data management and retention: Maintenance of records to support future audits and verification.

ISO 14064-3: GHG verification and validation requirements

ISO 14064-3 provides the framework for validating and verifying GHG data to ensure its accuracy and reliability. It is often used for third-party audits of GHG reports and project claims. Key requirements include:

Verification planning: A clear verification plan must outline:
The level of assurance required (reasonable or limited).
Objectives and criteria for data verification.
The scope of data being verified.
Data assessment: Verification involves reviewing the GHG inventory or project data to:
Confirm data accuracy.
Identify any errors or inconsistencies.
Ensure alignment with ISO 14064 principles.
Validation statements: Upon successful verification, a statement is issued confirming the accuracy of the GHG data, supporting stakeholder confidence in reported results.

Summary of the core requirements of ISO 14064 across its three parts:

ISO 14064 Part	Key Requirements	Examples
ISO 14064-1 (Organisational Level)	Develop a GHG inventory covering all emission sources. Classify emissions as Scope 1, 2, and 3. Use consistent quantification methods. Report data transparently and ensure traceability.	Tracking emissions from company-owned vehicles (Scope 1). Calculating electricity emissions using regional emission factors (Scope 2). Reporting supplier emissions for purchased goods (Scope 3).
ISO 14064-2 (Project Level)	Define project scope and boundaries. Establish a baseline for measuring GHG reductions. Implement monitoring systems. Disclose calculation methods and assumptions.	Installing solar panels on company facilities and measuring emission reductions. Forest restoration projects measuring carbon sequestration over time.
ISO 14064-3 (Verification & Validation)	Plan the verification process, defining scope and level of assurance. Assess GHG data accuracy. Validate methods used for emissions reporting. Issue a verification statement.	Conducting a third-party audit of a company’s GHG report. Validating carbon offset claims from a wind energy project before issuing credits.

Why ISO 14064 matters

ISO 14064 plays a critical role in helping organisations manage their environmental impact, improve sustainability performance, and demonstrate accountability in a world increasingly focused on climate action. By offering a standardised framework for GHG measurement, reporting, and verification, it brings multiple benefits for businesses, regulators, and stakeholders.

Here’s why ISO 14064 is essential:

Enhanced credibility and transparency
Implementing ISO 14064 ensures a consistent and reliable approach to emissions reporting. This standard requires organisations to disclose their methodologies, assumptions, and data sources, reducing the risk of greenwashing and making sustainability claims more trustworthy.

Regulatory compliance
As environmental regulations become stricter worldwide, ISO 14064 offers a solid framework for organisations to meet compliance requirements. Many governments and sustainability frameworks, such as the EU Corporate Sustainability Reporting Directive (CSRD) and the UK SECR, align with ISO 14064 standards.

Supporting emission reduction strategies
ISO 14064 provides a foundation for setting and tracking emission reduction targets by clearly outlining how to measure current emissions and monitor progress over time. This data can inform energy efficiency measures, renewable energy projects, and supply chain improvements.

Facilitating participation in carbon markets
Organisations aiming to engage in carbon trading schemes or offset programs need reliable emissions data. ISO 14064 supports the credibility of carbon reduction projects, ensuring emission reductions are measurable and verified before being issued as carbon credits.

Strengthening stakeholder relations
Investors, customers, and partners increasingly expect businesses to demonstrate sustainability leadership. ISO 14064 provides a transparent framework for emissions disclosure, helping organisations build trust and improve brand reputation.

Operational efficiency and cost savings
By identifying high-emission areas within operations, ISO 14064 can highlight inefficiencies and opportunities for cost reduction, such as energy-saving initiatives or resource optimisation.

How to implement ISO 14064 in your organisation

Successfully implementing ISO 14064 involves a structured approach to measuring, reporting, and verifying greenhouse gas (GHG) emissions. By following these steps, organisations can ensure compliance with the standard while gaining valuable insights into their environmental impact.

Step 1: Identify organisational boundaries and emission sources

Determine the boundaries of the GHG inventory (eg. operational control, financial control, or equity share).
Identify all relevant emission sources, including direct emissions (Scope 1), indirect emissions from energy use (Scope 2), and value chain emissions (Scope 3).

Step 2: Develop a GHG inventory and quantify emissions

Establish a GHG inventory covering all identified emission sources.
Apply standardised methodologies and emission factors, such as those from the GHG Protocol or IPCC Guidelines, to ensure accuracy.
Include data quality controls to avoid material errors or omissions.

Step 3: Implement monitoring and reporting systems

Set up systems for continuous data collection and monitoring, ensuring consistency over time.
Develop clear reporting structures that outline emission data, calculation methods, and any assumptions made.
Include disclosures on data limitations and uncertainties for full transparency.

Step 4: Set reduction targets and action plans

Use the GHG data collected to identify high-emission areas and develop targeted reduction strategies.
Establish short- and long-term emission reduction goals aligned with science-based targets.

Step 5: Seek third-party verification (ISO 14064-3)

Engage a qualified third-party verifier to review the GHG inventory or project data.
The verification process involves checking data quality, methodologies, and the accuracy of reported figures.
After successful verification, the organisation receives a statement confirming the data’s reliability.

Step 6: Continuous improvement and reporting

Regularly update the GHG inventory to reflect operational changes.
Adjust data collection methods and emission reduction strategies as needed.
Disclose progress transparently in sustainability reports and stakeholder communications.

By following these steps, organisations can not only comply with ISO 14064 but also build a foundation for credible, long-term climate action. A structured implementation ensures emissions data is both actionable and verifiable, supporting regulatory compliance and enhanced stakeholder trust.

How Greenly can help your company

At Greenly, we specialise in helping organisations measure, manage, and reduce their greenhouse gas emissions in alignment with international standards like ISO 14064. Our suite of carbon management services ensures companies can meet their sustainability goals with accuracy and confidence.

Here’s how Greenly can support your organisation:

GHG Inventory Creation and Management
Our platform assists organisations in developing a comprehensive GHG inventory, ensuring all emission sources are accounted for, including Scope 1, 2, and 3 emissions.
Project-Based Emissions Management
For businesses undertaking carbon reduction initiatives, Greenly provides the tools to quantify, monitor, and report emission reductions. Whether it’s renewable energy installations or supply chain efficiency projects, we help track impact and results.
Data-Driven Insights for Reduction Strategies
Beyond compliance, our platform provides actionable insights to help you identify key emission hotspots and develop tailored reduction strategies. This ensures your sustainability efforts go beyond reporting and lead to measurable results.
Support for Regulatory Compliance and Carbon Markets
Whether you're aiming to comply with national regulations, such as SECR or CSRD, or seeking to participate in carbon markets, Greenly's solutions ensure your data is audit-ready and meets the highest standards for accuracy and transparency.

By leveraging Greenly’s expertise, your organisation can streamline the complex process of GHG emissions management, helping you take meaningful steps toward a lower-carbon future. Get in touch with us today to find out more.