Takeaways
- ISO 14068 enables credible carbon neutrality claims through quantified reductions and third-party verification, replacing PAS 2060 to minimise greenwashing risks.
- Verification directly enhances product marketability, brand image, and stakeholder trust, with firms gaining EU export edges amid compliance pressures.
- Start your journey in three practical steps: Measure, Decarbonise, and Verify.
ISO 14068 is the international standard for demonstrating carbon neutrality through rigorous quantification, reduction, and verification of greenhouse gas emissions. Published in 2023 and effective from January 2025, it replaces PAS 2060, prioritising actual emission cuts over mere offsetting to build credible claims in a sceptical market. This standard directly tackles business owners’ struggles in Malaysia’s low-carbon economy, where regulators, buyers, and investors demand proof of sustainability amid compliance pressures and net-zero ambition.
Table of Contents
What is ISO 14068?
ISO 14068 provides principles and requirements for organisations or products to achieve and verify carbon neutrality via a hierarchical approach:
Unlike PAS 2060, which allowed easier offsetting, ISO 14068 demands deeper value-chain reductions, aligning with Paris Agreement goals and phasing out greenwashing risks that erode brand trust.
Business owners face pain points like unverified claims leading to lost tenders or consumer backlash. ISO 14068 delivers independently audited proof, turning compliance into a verifiable asset for stakeholder reports. In Malaysia, where ESG reporting ties to Bursa listings and export rules, this standard ensures your neutrality claim withstands scrutiny from banks, suppliers, and government schemes.
What Are the Benefits of ISO 14068 Verification?
Verification boosts product marketability by enabling carbon neutral labels backed by global ISO credibility, helping Malaysian exporters differentiate in EU markets hit by CBAM tariffs on high-carbon goods. Companies report 20-30% gains in customer loyalty as buyers favour verifiable low-carbon products, directly addressing the pain of shrinking margins in eco-conscious supply chains.
Brand image strengthens through enhanced reputation and investor appeal. Certified firms attract ESG funds, with studies showing up to 15% valuation premiums amid Malaysia’s push for net-zero by 2050. It fulfils stakeholder expectations for reliable neutrality: regulators verify claims, reducing audit risks, while employees and partners see tangible progress reports, combating “talk-only” fatigue in boardrooms.
Operational wins include cost savings from efficiency audits. Firms cut energy bills 10-25% via targeted reductions, positioning your business as a low-carbon leader without massive capital expenditure.
Example of Malaysian Companies with PAS 2060 or ISO 14068
Tobacco Importers and Manufacturers Sdn. Bhd. (TIM) achieved PAS 2060 carbon neutrality for its operations from December 2022 to November 2023, quantifying emissions, implementing reductions, and offsetting residuals via verified credits. This verification helped TIM market sustainable manufacturing to global buyers, enhancing brand resilience amid tobacco sector scrutiny and securing supply chain approvals in a low-carbon shift.
Though specific ISO 14068 adoptions in Malaysia are emerging post-2025 rollout, firms using GHG software track emissions for verification, with early adopters in manufacturing reporting procurement wins. Persistent Systems (with Malaysian operations) earned an ISO 14068 carbon neutrality statement, demonstrating supply chain reductions that improved client trust and bidding success. These cases show how PAS 2060/ISO 14068 counters pain points like regulatory non-compliance fines (up to RM3 million under upcoming carbon taxes) by providing auditable proof, directly lifting sales in competitive sectors.
3 Steps to Start Your ISO 14068 Journey
Step 1: Measure
Conduct a baseline GHG inventory using ISO 14064-1 for your operations or ISO 14067 for products. Tools like GHG software simplify data collection on Scope 1, 2, and 3 emissions, revealing quick wins like energy switches that slash 20% of footprints immediately. Malaysian companies often overlook supply chains. This step pinpoints supplier emissions, avoiding penalties on exports.
Step 2: Decarbonise
Develop a climate change management plan with science-based targets (e.g., 50% cut by 2030), prioritising emissions reduction before offsetting using high-integrity carbon credits. Conduct a gap analysis against PAS 2060 eases transition. Engage verifiers for plans that meet the National Sustainability Reporting Framework, turning stakeholder demands into operational roadmaps with return on investment via cost savings.
Step 3: Verify
Submit reports for third-party validation (ISO 14064-3), claiming neutrality only post-audit and annual reviews ensure continual cuts toward net-zero. This finalises marketing assets like labels, directly boosting sales by 10-15% as seen in certified peers, while pre-empting investor pullouts in Malaysia’s green finance boom.
In today’s competitive low-carbon economy, business owners are encouraged to leverage ISO 14068 verification to transform sustainability from a compliance burden into a powerful market advantage. By securing this globally recognised verification, companies can prominently market their products or services as carbon neutral, capturing premium pricing and loyal customers who prioritise verifiable green credentials over vague promises. This not only elevates your brand above rivals scrambling to meet carbon neutral and net-zero demands but also builds lasting trust with stakeholders, driving revenue growth and positioning your business as a leader in the global shift to decarbonisation.
At Bernard Business Consulting, we specialise in integrating sustainability into your business strategy and guiding you to capture opportunities for sustainable growth. Read this article to understand how ISO 14064, 14067, and 14068 drive business growth and ESG success in Malaysia.
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