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Policy & Disclosure

Net-zero standard's fate hinges on transition-plan clause

ISO's net-zero standard has cleared its first comment window; its transition-plan clause now faces a ratification path expected to run into 2027.

The document in play runs 91 pages, a long way from the loose guidelines suggested two years ago by nonprofits and companies including Amazon, FedEx, Google, Intel, Mars, McDonald's and Meta. Its central requirement is a two-year clock: an organization that sets a net-zero target must publish a detailed roadmap of the steps it will take, converting a corporate pledge into a dated schedule.

The first real comment window on the draft closed Sept. 9, twelve weeks after consultations opened June 17, putting responses from more than 170 national standards bodies into the hands of International Organization for Standardization staff. The ratification course ahead has no fast lane: if members request significant revisions, an updated draft of ISO 14060, the Standard for Net-Zero Aligned Organizations, must be circulated before any final vote. Final approval requires two-thirds of the advisory committees and 75 percent of all voting ISO members, which is why people familiar with ISO governance anticipate the standard will not come up for a final vote until early 2027.

That two-year roadmap is the likely fault line. Alexia Kelly, managing director of the carbon policy and markets initiative at High Tide Foundation and a member of the ISO net-zero technical advisory group, expects the demand to be a sticking point; a former corporate sustainability executive herself, she said most companies will not be able to get approval to participate and that she does not see how the draft can be sold to the C-suite. Some bodies involved in the review simply consider the standard overly complicated.

The long runway to ratification matters beyond Geneva: until a standard lands, net zero stays whatever each company says it is, at a moment when arguments over that label are already moving into arbitration and courts, as this publication documented in August in the dispute between Norway and Exxon. A ratified standard would hand those disputes a common yardstick.

The standard's value will be settled in redrafting, not at the final vote, because the two-thirds and 75-percent hurdles mean any serious dissatisfaction sends the text back for a fresh circulation, and the clause most likely to be sanded down is the one doing the work: the public, dated transition plan. If the requirement survives revision, early 2027 will give allocators the first common definition of net zero that carries a schedule with it; if it falls out, ratification will have certified a word instead of a plan.

Sources & further reading
Trellis (GreenBiz)
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