I don't understand why this is a standard.
First: It requires that every command line tool add support for this environment variable. It may not be much effort for each project, but it adds up to a ton of developer time. Even if this standard gains traction, some apps will slip through the cracks. So in the success case, many users will still be annoyed that one or two of their tools print colors when they shouldn't.
Second: As the FAQ on that page mentions, people can configure their terminal emulators to squelch color. NO_COLOR only matters for users who want color in some applications and not others. In that case, are certain applications supposed to refuse supporting NO_COLOR? Will all users want the same set of programs to behave that way? Are users supposed to unset NO_COLOR before running those programs?
At that point, it seems like a more complex version of using some aliases that add --color=never (or whatever the appropriate flag is). Or if the user prefers to disable color by default, they could set $TERM to "xterm-old" and alias their favorite commands to add --color=always. Either way, there's no need for another environment variable.
Really though, this seems like it should be a feature of the shell or the terminal emulator. Does the process name match certain patterns? Pass color codes through. No? Strip them. That would solve the problem for all programs past, present, and future. And total development effort would likely be less than that needed to implement NO_COLORS in every command line tool.