What is ISO 14064:2018?
ISO 14064:2018 has been designed measuring, reporting, and managing greenhouse gas (GHG) emissions. The use of this standard is often cited directly within GHG reporting directives, together with the GHG Protocol standards, which is a similar GHG monitoring and reporting framework. The application of ISO 14064:2018 allows for the development of a detailed GHG inventory to support an organisation in its compliance with strict EU GHG and ESG measuring and reporting directives. ISO 14064:2018 divides GHG emissions into three separate categories:
Scope 1: Direct GHG emissions from sources owned or controlled by the organisation. Examples: boilers, company vehicles, industrial processes, land use and forestry.
Scope 2: Indirect GHG emissions from imported energy.
Scope 3: Indirect GHG emissions from other sources. Examples: employee commuting (excluding company vehicles), transportation of purchased fuels, emissions from downstream leased assets.
Further subdivision exists within each Scope to ensure a comprehensive GHG inventory can be established, covering all relevant emission sources from an organisation’s activities.
How does it work?
The GHG emissions calculation methodology, outlined by the ISO 14064:2018 guidelines, are similar to those detailed by the GHG Protocol, with some key differences:
- Defining the organisational boundary: Organisations can consolidate its facility-level GHG emissions either via the control approach, financial or operational, or the equity share approach. This is similar to the definitions provided by the GHG Protocol Corporate Standard.
- Establishment of a baseline: Unlike the GHG Protocol Corporate Standard, ISO 14064:2018 encourages the establishment of a baseline. This will allow for consistent comparisons between current emission levels and the baseline, providing a clear trajectory of emission levels and allowing for easy identification of further emission reduction opportunities.
- Collection of activity data: Activity data from the organisation is gathered from each relevant emission source, including energy use, fuel consumption, waste output, and more. For Scope 1 and 2, the activity data would consist of purchased quantities of fuels or car mileage for example. The type of activity data used for Scope 3 is usually more broad, due to the variety of different emission sources encompassed within this category. The activity can include, but is not limited to, employee commuting kilometres and type of vehicles used, postage details, types and quantities of purchased products.
- Quantification of emissions: Unlike the GHG Protocol, no exact calculation tools are provided by ISO 14064:2018. However, specific and detailed methodologies are outlined within the standard. This is due to the fact that calculations of certain emission sources, specifically within Scope 3, may require varying approaches. The relevant emission factors used are also only permitted from credible sources, such as the IPCC, UK’s DEFRA, or internal emission factors from individual suppliers.
- Third party verification: ISO 14064:2018 also provides guidance on achieving third party verification from certified bodies.
Why adopt ISO 14064:2018?
This standard is applicable across a range of industries. Firstly, ISO 14064:2018, provides a strict framework for measuring, calculating, and reporting GHG emissions. Therefore, adopting and assessing carbon footprints using this standard perfectly aligns with regulatory and government GHG programmes, such as those established by the EU’s Taxonomy, Emissions Trading Scheme (ETS) and Corporate Sustainability Reporting Directive (CSRD). For example, the accurate measurement and reporting of emissions across all scopes, guaranteed by this standard, assures alignment with the Taxonomy’s technical screening criteria and the CSRD’s mandatory disclosures. Similarly to the GHG Protocol, the detailed carbon inventory established by the application of ISO 14064 allows for the identification of carbon-intensive operations and value chains within an organisation. This can be important in the preparation for the EU’s CBAM definitive regime, to be implemented in 2026, as well as avoiding financial penalties or other compliance-related costs for the lack of accurate GHG emissions reporting.
Organisations within energy-intensive or heavily regulated sectors, such as energy producers, heavy manufacturers, and chemical companies are able to apply this carbon accounting standard to achieve and manage compliance with national and international regulations, including the aforementioned EU directives and schemes. Other key sectors suitable for the application of ISO 14064:2018 include technology and IT, such as data centres and tech manufacturing, agriculture and food production.
This standard is also applicable to those organisations seeking to take part in voluntary GHG registries and sustainability reporting initiatives, such as the Science Based Targets Initiative (SBTi). Using this standard will assist in corporate decision making, such as identifying emission reduction opportunities and increasing profitability by reducing energy consumption. It also aligns with the requirements for joining internationally recognised voluntary GHG registries and sustainability reporting initiatives, such as the Science Based Targets Initiative (SBTi).