The British Standards Institute (BSI) has launched a scheme to help organisations transition to net zero after research identified a lack of clarity and guidance as a key barrier preventing many from reaching targets on time and within budget.
The Net Zero Pathway is designed to provide a transparent and consistent approach through the use of international standards and guidelines published by the International Organisation for Standardization (ISO). Using formal data verification and ongoing audits – including carbon footprint data, carbon reduction plans and planned business growth – the BSI will evaluate whether an organisation’s targets are realistic, achievable and will deliver net zero by 2050 or sooner. In theory, this could help organisations “overcome the barriers” preventing them from reaching their objectives.
The Pathway, published by business standards and improvement company BSI, uses an organisation’s verified carbon footprint data, carbon reduction plans and consideration of planned business growth to evaluate whether targets are realistic, achievable and will deliver net zero by 2050 or sooner.
The guidance comes after BSI’s Net Zero Barometer 2024 showed, for 23% of organisations, a lack of clarity on what net zero means and guidance on how to act was hindering progress. Additionally, while the majority of organizations (83%) were committed to achieving the UK’s legally binding emissions target, 92% said barriers remain in place preventing action. Gaps in internal skills and knowledge were also preventing organisations from knowing how to take action (19%) and only 15% said they were clear on how the offsetting market operates.
Matt Page, managing director UK & Ireland, assurance, BSI, said: “BSI’s research demonstrates that the appetite to reach net zero by 2050 is there, yet nine in ten say barriers remain in place preventing organisations from taking action. Helping organisations to understand both where they are on this journey, and what that transition means for them, their supply chain and their stakeholders, can help bridge that gap and ultimately build societal confidence in the progress being made.
“The Net Zero Pathway is an independent process that ensures reduction targets are set against an accurate baseline that has been verified to confirm all relevant emissions have been considered. This is designed to build credibility in an organisation’s journey to becoming and maintaining net-zero status, and ultimately accelerate action on the climate transition to benefit people and planet.”
The scheme will be conducted over three phases, including an initial optional discovery workshop to help companies get ready to calculate their carbon footprint – including Scope 3 emissions.
Then, the organisation’s carbon footprint is verified against the requirements of the quantification and reporting of greenhouse gas emissions standard (ISO 14064-1). According to BSI, this ensures that reduction targets are set against an accurate baseline which has been independently verified to ensure all relevant emissions have been considered, thus ensuring an accurate reading on an organisation’s journey to becoming net zero.
Finally, the business can implement its carbon reduction plans, and BSI audit these against the key principles of the ISO Net Zero Guidelines (IWA 42:2022). Throughout this process, BSI provides other gap assessments, training or certifications, such as Energy Management (ISO 50001), as part of the process.
ESG clarity guidance
The BSI has also recently published guidance designed to support organisations, including SMEs, to help understand the complex landscape around ESG regulations and reporting.
The guidance explores the role of standards for the integration of ESG throughout organisations in the wake of a growing number of regulations and frameworks that organisations are reporting against, from the EU’s Corporate Sustainability Reporting Directive and the UK’s Modern Slavery Act, to the IFRS S1 and S2 disclosure requirements.
It provides analysis of the current ESG reporting landscape and sets out how implementation of International (ISO) and national (BSI) Standards can help organisations determine what to report on, and how. The guidance is published alongside an accompanying tool designed to enable organisations to identify relevant standards to support their ESG reporting needs, enabling users to filter for standards relevant to topics such as climate change, biodiversity and human rights.
Susan Taylor Martin, chief executive of the BSI, commented: “Environmental, Social and Governance reporting is intended to measure an organisation’s impact, and is an important tool in helping to accelerate progress towards a fair society and sustainable world. However, the ESG reporting landscape is complex to navigate and can be confusing for organisations.
“BSI aims to be a trusted partner helping organisations deliver on their ESG reporting requirements by using standards to simplify and streamline the process.”
