EN ISO 14097:2026

Overview

EN ISO 14097:2026 is an international standard developed by CEN, adopting ISO 14097:2021. It provides a robust framework for the management of greenhouse gases and related activities within the finance sector. The standard sets out principles, requirements, and guidance for assessing, measuring, monitoring, and reporting investments and financing activities related to climate change. Its primary objective is to support financiers-including investors and lenders-in aligning financial flows with international climate goals, such as those outlined by the Paris Agreement, and to facilitate the transition to a low-carbon, climate-resilient economy.

This standard addresses:

• The alignment of investment and financing decisions with low-carbon transition and adaptation pathways;
• The impact of such decisions on climate mitigation (reducing greenhouse gas emissions) and adaptation (enhancing resilience);
• The management and disclosure of climate-related risks associated with financial assets.

Key Topics

EN ISO 14097:2026 covers several essential areas for effective greenhouse gas management in the context of finance:

• Principles for Climate-related Financial Assessment: The standard outlines key principles-such as relevance, consistency, transparency, accuracy, evidence-based and goal-oriented approaches-which underpin robust assessment and reporting activities.

• Framework for Disclosing Climate Risks and Opportunities: Enables financial institutions to identify, assess, and disclose climate change risks and opportunities affecting both their assets and broader strategy.

• Target Setting and Progress Tracking: Provides guidance on establishing measurable targets, selecting suitable metrics, and tracking progress towards low-carbon transition pathways for investees.

• Impact Assessment and Reporting: Offers a framework to document the link between climate actions undertaken by financiers, their intended outputs and outcomes, and contribution towards global climate goals.

• Monitoring and Verification: Details requirements for ongoing monitoring, record-keeping, and recommendations for independent verification and validation of reported data.

• Stakeholder Reporting: Supplies guidance for comprehensively reporting on climate-related activities to shareholders, clients, policymakers, regulatory authorities, and NGOs.

Applications

EN ISO 14097:2026 is applicable to a wide range of users in the finance sector, delivering practical value in multiple scenarios:

• Investment Portfolios: Asset managers and institutional investors can evaluate and disclose the climate alignment of their portfolios, supporting sustainable investment decisions.

• Lending Activities: Banks and lenders can assess climate-related risks and track the impact of their lending on mitigation and adaptation outcomes in the real economy.

• Financial Risk Management: The framework helps identify climate-related financial risks-such as stranded assets or exposure to carbon-intensive sectors-contributing to better risk assessment and management strategies.

• Sustainability Reporting: Provides a standardized methodology for reporting to regulatory authorities and stakeholders in line with global best practices, enhancing transparency and accountability.

• Policy and Regulatory Compliance: Aids financial organizations in meeting evolving expectations under international frameworks, including the Paris Agreement and EU sustainability disclosure requirements.

Related Standards

Implementing EN ISO 14097:2026 can be complemented by integration with other key standards, including:

• ISO 14064: Greenhouse gases – Requirements and guidance for organizational and project-level quantification and reporting of greenhouse gas emissions and removals.
• ISO 14080: Guidance for climate action planning and policies.
• ISO 14090: Principles for climate change adaptation.
• Taskforce on Climate-related Financial Disclosures (TCFD): Widely adopted framework for climate risk assessment in financial reporting.

These related standards offer additional tools and methodologies for a comprehensive, harmonized approach to climate-related finance and greenhouse gas management.

By adopting EN ISO 14097:2026, financial organizations improve their ability to drive effective climate action, fulfill regulatory and stakeholder expectations, and contribute to a sustainable, low-carbon future.