In short: ISO 14064-1:2018 is the international standard for quantifying and reporting an organisation’s greenhouse gas emissions and removals. It helps organisations build a structured GHG inventory that can be mapped to commonly requested Scope 1, 2 and 3 information. Nexus Consultancy helps Malaysian organisations build that inventory and get it ready for verification, backed by HRD Corp-claimable training.

 

Measure What Matters • Report With Confidence • Build Climate Credibility

Whether your customers call it a carbon footprint, a carbon accounting exercise, or simply “your Scope 1, 2 and 3 data,” a GHG inventory built to ISO 14064-1 is how you produce numbers that hold up.

And in Malaysia, those requests are arriving fast. Sustainability reporting requirements are pushing GHG data down the supply chain, and suppliers to listed companies are increasingly being asked for Scope 1, 2 and 3 emissions data, often for the first time.

What’s changing: Malaysia’s sustainability reporting requirements are phasing in across listed companies over the next few years. Scope 3 reporting and assurance expectations are expected to develop progressively as the NSRF phases take effect and regulators finalise related requirements. As your customers move through this timeline, expect more requests for supplier GHG data. Building your inventory before that request lands gives you a head start over competitors who scramble afterward.

What is ISO 14064-1?

ISO 14064-1:2018 sets out exactly how to build a credible GHG inventory. It covers how to draw your boundaries, what counts as your emissions and removals (the greenhouse gases your operations release, and any your operations take back out, for example through trees you own), and how to document it all so the numbers stand up to independent checking. In short, it turns a rough carbon estimate into a structured inventory an independent body can verify.

It is Part 1 of the ISO 14064 series, the part that deals with your organisation’s overall carbon footprint, and the part your company actually needs. Parts 2 and 3 serve different needs and are not required for a company inventory. For a quick guide to what applies to you, see “What do I actually need?” in the FAQ below.

A GHG inventory built to ISO 14064-1 covers:

• Organisational and operational boundaries: defining exactly what counts as your emissions

• Quantification of direct and indirect emissions: across the standard’s six emission categories, which map cleanly onto the familiar Scope 1, 2 and 3 (see below)

• A base year and recalculation policy

• Data quality and uncertainty assessment

• A structured GHG report with the audit trail a verifier needs

 

A note on Scopes and categories

Many organisations think in terms of the GHG Protocol’s Scope 1, 2 and 3. ISO 14064-1:2018 uses six categories of direct and indirect emissions instead, but the two line up neatly:

• Category 1 = Scope 1: direct emissions from sources you own or control

• Category 2 = Scope 2: indirect emissions from imported energy (electricity, steam, heating, cooling)

• Categories 3 to 6 = Scope 3: all other indirect, value chain emissions, including transportation, purchased goods and products you use, use of your sold products, and other sources

So you can keep speaking in Scopes with your customers while reporting in ISO 14064-1’s category structure. We handle the mapping for you.

 

ISO 14064-1 and the GHG Protocol: What’s the Difference?

Both are frameworks for measuring and reporting greenhouse gas emissions, and in practice they are often used together. The key differences:

The simplest way to think about it: the GHG Protocol tells you how to calculate your emissions. ISO 14064-1 sets the requirements that make your inventory credible and verifiable. They are complementary, not competing. Most organisations calculate using the GHG Protocol and apply ISO 14064-1’s principles and reporting requirements to produce an inventory an independent body can audit.

So which do you need?

• If a customer, bank or scheme simply asks for your carbon footprint or Scope 1, 2 and 3 data, GHG Protocol based reporting may be enough to get started.

• If you need a verifiable inventory that is ready for audit, increasingly the expectation in supply chains and for assurance, ISO 14064-1 is the standard to build to.

Nexus Consultancy works with both, so we help you pick the right starting point for where your customers are heading, and avoid rebuilding your inventory later.

 

Why ISO 14064-1 Matters Now in Malaysia

Malaysian organisations are building GHG inventories now for several connected reasons:

• Supply chain pressure is rising. Listed companies are passing sustainability data requests down to their suppliers, driven by Malaysia’s National Sustainability Reporting Framework (NSRF), led by the Securities Commission Malaysia through the Advisory Committee on Sustainability Reporting, and the Simplified ESG Disclosure Guide (SEDG) from Capital Markets Malaysia. Manufacturing, oil & gas, oil palm and packaging exporters tend to feel it first.

• A carbon tax is on the way. In Budget 2026, the government confirmed a carbon tax to be introduced by 2026, starting with the iron, steel and energy sectors, aligned with the National Carbon Market Policy and the forthcoming Climate Change Bill. Coverage is widely expected to broaden over time, so an auditable inventory built now is smart forward planning, even if your sector is not in the first wave.

• Financing is tightening. Banks are increasingly linking loan terms to verified sustainability data through sustainability linked loans.

• Procurement is shifting. A documented GHG inventory is becoming a real differentiator in government and listed company (PLC) tenders.

• There is a capability building window. Malaysia’s manufacturing sector i-ESG Framework runs its “Just Transition” phase (Phase 1.0) from 2024 to 2026, the window for early movers to build lasting advantage before Phase 2.0 (2027 to 2030).

Key Requirements of ISO 14064-1

What to Track Across Scope 1, 2 and 3

• Scope 1 (Category 1), direct emissions from sources you own or control: company vehicles, on-site fuel combustion, and process emissions.

• Scope 2 (Category 2), indirect emissions from purchased electricity, steam, heating or cooling.

• Scope 3 (Categories 3 to 6), all other indirect emissions across your value chain: purchased goods, transport, business travel, waste, and the emissions your own suppliers report to you.

Scope 3 is where most Malaysian SMEs struggle, and it is the part listed company customers are now starting to ask about.

Benefits of Building an ISO 14064-1 GHG Inventory

• Verifiable sustainability data for customers, investors and lenders

• A ready answer to NSRF and SEDG supplier disclosure requests

• A foundation for carbon tax readiness and emissions reduction planning

• Better support for government and PLC tender submissions where GHG or ESG information is requested

• One auditable source of truth, replacing ad hoc spreadsheets rebuilt for every customer request

How verification works, and why we do not verify our own work

Nexus Consultancy helps you build and document your GHG inventory and get it ready for verification. The verification itself is carried out separately, by an independent validation and verification body.

That separation is not just good manners. It is how credible assurance works. Verification bodies are expected to operate to ISO 14065, which sets requirements for their impartiality and management of conflicts of interest. A body that helped build your inventory could not impartially verify it. By keeping consulting and verification separate, your verification statement carries full weight with customers, banks and regulators.

ISO 14064-1 does not force every organisation to obtain third party verification. But if a customer, bank, scheme or regulator requires it, and increasingly they do, you will want an inventory that is built to pass.

Why Act Now

• Early movers avoid the end-of-year scramble when customers request emissions data.

• A properly documented inventory takes several months to build, so starting early avoids rushed, low quality data.

• HRD Corp-claimable training may help eligible employers manage training costs, subject to approval, levy balance and HRD Corp requirements.

• Documentation that is ready for verification today means lower costs and fewer surprises once external assurance becomes required by regulators, customers, lenders or reporting frameworks.

Who Needs This

• Suppliers and vendors to Bursa Malaysia listed companies, especially in manufacturing, oil & gas, oil palm, packaging and logistics

• Exporters facing carbon related requirements from international buyers

• Companies pursuing ESG linked financing or sustainability linked loans

• Organisations already certified to ISO 14001 extending into formal carbon accounting

HRD Corp-Claimable ISO 14064-1 Training

Nexus Consultancy runs two HRD Corp-claimable training courses to build your internal GHG capability (claimable for eligible employers, subject to your levy status):

• ISO 14064-1 Awareness: covers quantification and reporting fundamentals, building your Scope 1, 2 and 3 (Category 1 to 6) inventory, and internal GHG reporting. View the course →

• GHG Verification & Internal Audit: covers validation and verification requirements under ISO 14064-3, preparing your team for independent verification. View the course →

Training builds your team’s capability to develop and document a GHG inventory. An independent body carries out verification separately.

Planning to claim? HRD Corp’s grant rules changed under Employer’s Circular No. 2/2026 (effective 15 June 2026), with tighter submission timelines and stricter approval conditions. Before you apply, it is worth reviewing what changed: read 3 Crucial HRD Corp Grant Changes Effective 15 June 2026.

What Most People Ask About ISO 14064-1

Q1. What is ISO 14064-1 and why does it matter now?
A: It is the international standard for quantifying and reporting an organisation’s GHG emissions and removals, your organisational carbon footprint. It matters now because Malaysia’s sustainability reporting requirements, the NSRF and the SEDG, are pushing GHG data requests down to SME suppliers.

Q2. I keep seeing “1, 2, 3” everywhere: ISO 14064-1, -2, -3 and Scope 1, 2, 3. What do I actually need?
A: They look alike but mean different things:

• ISO 14064-1, ISO 14064-2, ISO 14064-3 are three separate documents. Part 1 is the one your company needs (your GHG inventory). Part 2 is for one-off projects, and Part 3 is what your verifier uses, not you.

• Scope 1, 2 and 3 are types of emissions (direct, energy, and value chain). They sit inside your ISO 14064-1 inventory.

Bottom line: you need ISO 14064-1, and inside it you measure your Scope 1, 2 and 3 emissions.

Q3. We already calculate emissions using the GHG Protocol. Do we still need ISO 14064-1?
A: Yes, if you need your inventory verified. The GHG Protocol tells you how to calculate your emissions; ISO 14064-1 makes the result auditable, so an independent body can check it and give your customers, banks and lenders confidence. (If you only need a rough internal estimate, the GHG Protocol on its own may be enough for now.)

Q4. Does Nexus Consultancy verify our GHG inventory?
A: No, and that is deliberate. We build and document the inventory and prepare you for verification. An independent validation and verification body carries out the verification itself. Keeping the two separate is what keeps your verification statement credible and free of conflicts of interest (a core impartiality principle under ISO 14065).

Q5. Who typically needs to start a GHG inventory in Malaysia right now?
A: Suppliers to Bursa Malaysia listed companies, particularly in manufacturing, oil & gas, oil palm and packaging, as listed companies begin requesting Scope 3 data from their supply chains.

Q6. Is the training HRD Corp-claimable?
A: Yes, for eligible employers may apply for HRD Corp claims, subject to approval, levy balance and the latest HRD Corp grant requirements.

Q7. How does Nexus Consultancy support our GHG inventory journey?
A: From gap assessment through inventory design, data collection support, internal audit training and verification readiness, using the same disciplined approach we apply across our ISO 14001 and ESG advisory work.

Ready to build a GHG inventory your customers can trust?

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