What is PAS 2060:2014?
Publicly Available Specification (PAS) 2060:2014 is an internationally recognised carbon accounting and reporting standard. Developed by the British Standards Institute (BSI), it provides a framework for organisations aiming to achieve and demonstrate carbon neutrality. By following this specification, organisations seeking compliance with EU regulations, such as the Carbon Border Adjustment Mechanism (CBAM) and the Corporate Sustainability Reporting Directive (CSRD), or planning on implementing evidence-based ESG strategies, can ensure carbon neutrality claims are substantiated, transparent, and aligned with best practice. As the PAS 2060:2014 is primarily focused on achieving Net Zero, the PAS 2060 guidelines provide steps for developing a carbon footprint management plan, implementing carbon mitigation measures. Therefore, the emissions assessment under this standard uses those outlined within ISO 14064:2018 or GHG Protocol, Scope 1, 2, and 3 emissions are categorised in the following way:
- Scope 1: Direct GHG emissions from sources owned or controlled by the organisation.
- Examples: boilers, furnaces, company vehicles.
- Scope 2: Electricity indirect GHG emissions account for the generation of purchased electricity consumed by the company.
- Scope 3: Other indirect GHG emissions assess emissions resulting from company activities that occur from sources not owned or controlled by the company.
- Examples: extraction and production of purchased materials, transportation of purchased fuels, and use of sold products and services.
How does it work?
The application of the PAS 2060:2014 standard involves the following steps:
- Emissions assessment: Organisations quantify their GHG emissions across Scope 1, 2, and 3, using internationally recognised standards, such as the GHG Protocol or ISO 14064:2018.
- Reduction plan: A detailed Carbon Footprint Management Plan is created to outline how emissions will be reduced over time.
- Offsetting: Remaining emissions, that cannot be eliminated from an organisation’s activities, will be neutralised using verified carbon offsets.
- Verification: Carbon neutrality claims must be independently verified, and a public declaration is required to ensure accountability.
Why adopt PAS 2060:2014?
PAS 2060:2014 benefits organisations across a variety of sectors, seeking to achieve and demonstrate carbon neutrality, via internationally recognised and evidence-based methodologies. PAS 2060 is particularly beneficial for organisations aiming to meet the growing demand from consumers, investors, and other stakeholders for services and products that are certified to be carbon neutral. For example, companies in manufacturing, retail, and service industries can apply PAS 2060:2014 to offset emissions, ensuring alignment with sustainability objectives and demonstrating leadership in reducing their environmental impact.
PAS 2060 is also crucial for organisations preparing to comply with emerging EU regulations, such as CBAM and CSRD. CBAM requires organisations to account for and offset carbon emissions embedded in imported goods from non-EU countries, imposing a carbon price on imports exceeding emissions allowed under the CBAM framework. By following PAS 2060, companies can verify carbon neutrality and minimise the financial risks of carbon costs imposed by the mechanism.
Furthermore, PAS 2060 aligns with ESG strategies by providing a clear and credible path to carbon neutrality. Organisations in sectors such as transportation, energy, and hospitality can particularly benefit from PAS 2060 by publicly claiming carbon neutrality and having this be supported by evidence-based calculations and third-party verification.
By achieving carbon neutrality, businesses can enhance their appeal to consumers, clients, and investors with an increasing focus on sustainability. The process of achieving carbon neutrality often uncovers energy inefficiencies and other areas of emissions reductions. This can result in long-term cost savings.