Commitments to achieve net zero emissions are increasing among companies, financial institutions, cities, regions and other organizations. At the same time, there is a growing need for common and consistent criteria regarding what net zero means, how targets should be set and how progress should be reported.
In response to this need, the International Organization for Standardization (ISO) published IWA 42:2022 – Net Zero Guidelines in November 2022. The document provides guiding principles and recommendations for developing and implementing credible strategies to achieve net zero greenhouse gas (GHG) emissions.
 
What is IWA 42:2022?
IWA 42:2022 is an International Workshop Agreement (IWA) developed through a collaborative process involving relevant stakeholders to provide practical guidance on a specific subject.
The document aims to support a more consistent understanding and application of the net zero concept and to promote greater alignment between different voluntary initiatives, standards, policies and regulatory approaches.
The guidelines can be used by different types of organizations, regardless of their size, sector or geographical location.
IWA 42 addresses net zero in the context of international climate goals and the need to limit global warming to 1.5°C above pre-industrial levels.
The document guides organizations towards achieving net zero as soon as possible and no later than 2050, while emphasizing early and sustained action to reduce emissions.
 
What does Net Zero mean?
In the context of IWA 42, achieving net zero requires greenhouse gas emissions to be reduced significantly to a residual level consistent with an applicable science-based pathway, with residual emissions counterbalanced by appropriate greenhouse gas removals.
This means that net zero should not be understood as allowing current emissions simply to be offset through the purchase of carbon credits.
At the core of the approach is the actual reduction of emissions, both from the organization's own operations and across its value chain.
 
Key principles of IWA 42:2022
The guidelines emphasize several key principles that should be taken into account when developing a credible net zero strategy.
Urgency
IWA 42 emphasizes the need for organizations to take action as early as possible rather than postponing major emission reduction efforts until close to the final net zero target date.
Ambition
Organizations should set sufficiently ambitious targets that reflect the scale and urgency of the climate challenge.
Prioritization of emission reductions
The primary focus should be on preventing and reducing greenhouse gas emissions.
The use of carbon credits or other offsetting mechanisms cannot replace the need for substantial emission reductions on the pathway to net zero.
Science-based decision-making
Targets and actions should be aligned with current scientific evidence and pathways consistent with limiting global warming to 1.5°C.
Credibility
Net zero commitments should be supported by credible plans, measurable targets, appropriate indicators and demonstrable progress.
Equity
The transition to net zero should take into account differences between organizations, sectors and regions, as well as impacts on relevant stakeholders.
Transparency and accountability
Climate targets, methodologies, indicators, assumptions and achieved results should be communicated in a clear and transparent manner.
 
How can an organization develop a Net Zero strategy?
IWA 42:2022 provides a framework that can be used to structure the process of developing and implementing net zero targets.
1. Establishing commitment and responsibilities
Net zero targets should be integrated into the organization's strategic management.
Management responsibilities, necessary resources and mechanisms for monitoring and evaluating implementation should be established.
2. Defining the scope and baseline
The organization should determine which activities, organizational units and sources of emissions fall within the scope of its net zero strategy.
An appropriate baseline should also be established against which future progress can be assessed.
3. Setting long-term and interim targets
The long-term net zero target should be supported by specific and measurable interim targets.
These targets enable progress to be tracked over time and corrective action to be taken where necessary.
4. Addressing significant emissions
IWA 42 encourages organizations to consider not only direct emissions from their own operations but also significant indirect emissions across the value chain.
Depending on the organization's activities, these may include emissions associated with suppliers, transport, materials, product use and other activities outside the organization's direct operational control.
5. Planning and implementing emission reduction measures
Once targets have been established, the organization should identify and implement specific decarbonization measures.
Depending on the nature of its activities, these may include:

• improving energy efficiency;
• using energy from renewable sources;
• changing production processes and technologies;
• optimizing transport and logistics;
• changing the materials used;
• working with suppliers to reduce emissions;
• developing products and services with a lower climate impact.

6. Addressing residual emissions
After feasible emission reduction measures have been implemented, some emissions may remain that cannot, at that time, be fully eliminated.
IWA 42 addresses the role of removals, offsets and carbon credits, but within an approach that gives priority to emission reductions.
Approaches used to address residual emissions should be credible, transparent and consistent with the principles of the document.
7. Nature protection and restoration
IWA 42 also includes recommendations related to the protection and restoration of nature.
This aspect is important because natural ecosystems play a role in both carbon storage and removal, as well as in resilience to climate change.
However, actions towards net zero should not be used as a justification for disregarding other environmental impacts or as a substitute for the need to directly reduce emissions.
8. Monitoring, measurement and review
The organization should periodically assess progress towards its targets using appropriate indicators and reliable data.
Where necessary, the net zero strategy, interim targets and action measures should be reviewed and updated.
9. Transparent communication
Public claims relating to net zero should be clear, accurate and supported by information on the approach used, scope, methodology, results and limitations.
IWA 42 places particular emphasis on claims, monitoring, measurement, indicators, reporting and communication as essential elements of a credible net zero approach.
 
Net Zero and carbon neutrality – is there a difference?
The terms net zero and carbon neutrality should not automatically be used interchangeably.
IWA 42 was developed specifically as guidance for achieving net zero greenhouse gas emissions and does not provide guidance on achieving carbon neutrality for organizations, products or services.
The practical distinction is significant.
Net zero involves a long-term process of decarbonization and substantial emission reductions, with greenhouse gas removals used to counterbalance residual emissions that cannot be eliminated.
Therefore, the use of carbon credits or other offsetting mechanisms alone is not sufficient to achieve net zero.
 
Relationship with ISO 14001 and greenhouse gas management standards
IWA 42:2022 can be used alongside existing standards and management systems.
For an organization implementing ISO 14001, climate targets and emission reduction actions can, in practice, be integrated into existing processes for setting environmental objectives, operational control, monitoring, performance evaluation and continual improvement.
This does not mean that IWA 42 forms part of the requirements of ISO 14001 or that its implementation is required for ISO 14001 certification. The two documents serve different purposes but can be used as complementary tools.
For the quantification and reporting of greenhouse gas emissions and removals at the organizational level, IWA 42 refers, among other sources, to ISO 14064-1 and the GHG Protocol.
In this way, IWA 42 can support the connection between strategic climate targets and established approaches to measurement, management and performance improvement.
 
Can an organization be certified to IWA 42:2022?
IWA 42:2022 contains guiding principles and recommendations, rather than a set of requirements intended for management system certification.
Its primary purpose is therefore to provide a common framework for developing, evaluating and improving net zero strategies.
Organizations can also use the guidelines as a reference point for an internal assessment of their climate targets and plans – for example, to determine whether an appropriate scope and baseline have been established, whether significant emissions are covered, whether interim targets have been set and whether net zero communications are sufficiently transparent and substantiated.
 
Why is IWA 42 important for businesses?
The significance of the document goes beyond setting a long-term climate target.
A consistent net zero approach can support organizations in:

• managing climate-related risks and opportunities;
• assessing emissions across the value chain;
• setting decarbonization priorities;
• engaging with customers and suppliers;
• determining investment priorities;
• improving the reliability and comparability of climate-related information;
• reducing the risk of unclear, inconsistent or insufficiently substantiated climate claims.

Of particular importance is the transition from general statements of climate ambition to measurable targets, specific actions, traceable results and transparent reporting.
 
IWA 42:2022 – Net Zero Guidelines provides an international framework for organizations seeking to develop a consistent and credible approach to achieving net zero greenhouse gas emissions.
At the core of the document is the principle that net zero should be achieved primarily through real and substantial emission reductions, supported by science-based targets, interim milestones, action across the value chain, monitoring of results and transparent communication.
For organizations, this transforms net zero from a general climate commitment into a structured process that can be integrated into strategic management, risk management and existing management systems.