Takeaways
- The unified standards create a single global framework for easier, consistent GHG accounting.
- Verified emissions data offer credible disclosures essential for investor and regulator confidence.
- Businesses acting early will gain a competitive sustainability advantage.
- Investments in technology, skills, and strategy integration are critical for successful adoption.
With global climate action accelerating, businesses face mounting pressure to accurately measure, manage, and disclose greenhouse gas (GHG) emissions. Historically, companies have relied on two significant but separate standards: ISO 14064/14067 and the GHG Protocol. Handling these different frameworks created challenges such as confusion, duplicated efforts, and resource-intensive reporting.
On September 9, 2025, the International Organisation for Standardisation (ISO) and the Greenhouse Gas Protocol (GHG Protocol) announced a strategic partnership to harmonise these two leading standards into one comprehensive global framework for GHG emissions accounting. This new unified standard will streamline emissions reporting for Scopes 1, 2, and 3, making it easier and more credible.
This is particularly important for Malaysian companies, aligning with emerging requirements such as Malaysia’s National Sustainability Reporting Framework (NSRF) and IFRS S2 climate disclosures.
Table of Contents
What Are the Unified Standards?
ISO and the GHG Protocol have launched a strategic partnership to create unified global standards for greenhouse gas emissions accounting. This merger integrates ISO’s 1406X family of standards, notably ISO 14064 for organisational GHG reporting and ISO 14067 for product carbon footprints, with the GHG Protocol’s recognised corporate accounting standards covering Scope 1, 2, and 3 emissions. The goal is to deliver a co-branded, harmonised standard that provides businesses, regulators and investors around the world with a consistent and credible framework for emissions measurement, reporting and verification.
Why it matters
Many companies currently face confusion because of overlapping or conflicting reporting frameworks around greenhouse gas (GHG) emissions. The new unified standard simplifies compliance with evolving regulatory regimes such as Malaysia’s National Sustainability Reporting Framework (NSRF) and the IFRS S2 climate disclosure standards. Verified and consistent emissions reporting builds investor trust and accelerates the transition to net-zero by encouraging robust data and accountability. Notably, almost all S&P 500 companies reporting emissions to CDP use the GHG Protocol in some form, highlighting its global influence and the importance of integration with ISO.
Upcoming milestones
- Drafts for public consultation are expected during 2025 as part of an inclusive stakeholder engagement process.
- Final unified standards are anticipated in the second half of 2026, timed to align with mandatory climate disclosure regulations evolving worldwide.
- The outcome will include updated guidance on Scope 3 emissions, product carbon footprints and verification procedures to meet market demands.
What to expect
The integration of ISO’s formal audit and verification rigour with the GHG Protocol’s comprehensive emissions accounting methodology creates a powerful unified framework for businesses. This standard will address all emission scopes, with particular emphasis on the often complex and challenging Scope 3 value chain emissions. By harmonising these approaches, companies can expect greater clarity and consistency in meeting regulatory requirements, preparing voluntary disclosures, and fulfilling investor due diligence expectations.
How Will This Impact Business Leaders?
Business and sustainability leaders can expect:
- Simplified compliance: One unified standard replacing multiple conflicting frameworks.
- Greater efficiency: Streamlined data management reduces duplication and cost.
- Enhanced credibility: Verified and transparent reports build trust with regulators, investors, and stakeholders.
- Improved regulatory alignment: The framework supports Malaysian NSRF, IFRS S2, and aligns with international standards.
Expert support remains integral to help businesses implement these new unified standards effectively in changing policy environments.
What Are the Key Differences Between ISO 14064 and the GHG Protocol?
While aligned, the standards have distinct roles:
- The GHG Protocol focuses on operational guidance for categorising and calculating GHG emissions, particularly across the value chain (Scope 3).
- ISO 1406x series (including ISO 14064-1, ISO 14064-2, ISO 1464-3, ISO 14067, ISO 14068, etc.) formalise requirements for data quantification, reporting, and independent verification to ensure credibility and regulatory compliance.
Using both provides an end-to-end, credible framework—from detailed calculation (GHG Protocol) to assured reporting.
Why Is Scope 3 Emissions Reporting So Important?
Scope 3 emissions—indirect emissions throughout an organisation’s value chain—often make up the largest share of total corporate emissions but are the most difficult to measure and report.
The unified standards will reinforce Scope 3 accounting by combining:
- The GHG Protocol’s detailed 15-category Scope 3 framework, covering upstream and downstream activities.
- ISO’s third-party verification and assurance standards, which promote trustworthy and consistent reporting.
This comprehensive approach will meet growing investor and regulator expectations for transparent, complete value chain emissions disclosure. Organisations—especially SMEs—are encouraged to pursue capacity-building and practical guidance to meet these complex requirements.
What Challenges Should Businesses Expect?
Challenges
- Investment: Significant upfront costs to upgrade data systems and software for accurate emissions capture and management, especially for complex Scope 3 data.
- Capability gaps: Many businesses, particularly SMEs, lack in-house expertise for robust emissions quantification, reporting, and verification.
- Organisational change: Successfully embedding new accounting standards requires executive leadership commitment and cultural shifts within organisations.
- Data complexity: Collecting consistent, reliable data across suppliers and multiple operations remains a significant hurdle.
Solutions
- Invest in technology: Adopt modern automated software platforms to improve data accuracy and reduce human error. Bernard Business Consulting offers tailored guidance for SMEs.
- Build capacity: Deliver practical workshops and training programmes to develop internal skills, such as our Bernard Business Academy’s Product Carbon Footprint Reporting Workshop.
- Embed sustainability in strategy: Leaders must integrate GHG management into core business strategy to foster cultural change, operational alignment, and flexibility.
- Standardise data management: Use interoperable platforms /software and harmonised standards for transparent supply chain emissions reporting.
At Bernard Business Consulting, we specialise in helping businesses in Malaysia and beyond integrate sustainability into their core strategies. With expertise in greenhouse gas management, ESG reporting, and climate compliance, we support organisations to accelerate their transition to net-zero while creating long-term value. Our practical solutions and targeted training empower companies to navigate evolving frameworks like NSRF and IFRS S2 with confidence and impact.
Contact us today to explore how we can help your organisation strengthen climate resilience, manage your GHG emissions effectively, achieve NSRF compliance, and stay ahead in Malaysia’s evolving sustainability landscape.
Public Workshop
September 25, 2025 | November 20, 2025 @ 9:00 AM to 5:00 PM MYT
Navigating Sustainability Reporting Using IFRS Sustainability Disclosure Standards
This interactive IFRS workshop offers expert-led guidance and hands-on tools to help businesses identify ESG risks, uncover opportunities, and align with Malaysia’s NSRF.