There are two main ways of determining ISO speed of digital cameras, according to ISO 12232: ‘saturation based’ and ‘noise based’. The saturation-based speed is calculated from the exposure that would reach the upper limit of the capacity of the sensor or circuitry (ie on the verge of being blown out), and it is generally the method that is used for the highest quality.
It is fixed so that in effect an 18% grey will give an exposure that is 12.8% of the exposure that would result in saturation, or to put it another way, a 100% diffuse-reflective surface will give an exposure that is 71% of the exposure that would result in saturation. That is half a stop of overexposure latitude over 100% reflectance and just a shade less than three stops of headroom over 18%.
This means that if the camera setup follows the ISO standard, and there are no specular highlights in the picture, a reading from an 18% grey card will give an exposure that results in no part of the image being exposed at more than about 2/3 of the maximum the sensor/circuitry can handle. (The highest diffuse reflectance of everyday objects is around 95%, and most of the things we call ‘white’ are 90% reflective or less).
This headroom could be seen as an allowance for specular highlights, or for metering off areas with less than 18% average reflectance, or a combination of those.
Therefore it should be no surprise that an exposure compensation of up to +⅔ of a stop can be given by photographers who meter carefully.
Best,
Helen