ISO 14000

ISO 14000

ISO 14000 is a family of standards related to environmental management that exists to help organizations (a) minimize how their operations (processes etc.) negatively affect the environment (i.e. cause adverse changes to air, water, or land); (b) comply with applicable laws, regulations, and other environmentally oriented requirements, and (c) continually improve in the above.

ISO 14000 is similar to ISO 9000quality management in that both pertain to the process of how a product is produced, rather than to the product itself. As with ISO 9000, certification is performed by third-party organizations rather than being awarded by ISO directly. The ISO 19011 audit standard applies when auditing for both 9000 and 14000 compliance at once.

The requirements of ISO 14001 are an integral part of the European Union‘s Eco-Management and Audit Scheme (EMAS). EMAS‘s structure and material requirements are more demanding, foremost concerning performance improvement, legal compliance and reporting duties.

Environmental management systems

The concept of an environmental management system evolved in the early nineties and its origin can be traced back to 1972, when the United Nations organized a Conference on the Human Environment in Stockholm and the United Nations Environment Programme (UNEP) was launched (Corbett & Kirsch, 2001). These early initiatives led to the establishment of the World Commission on Environment and Development (WCED) and the adoption of the Montreal Protocol and Basel Convention.

In 1992, the first Earth Summit was held in Rio-de-Janeiro, and served to generate a global commitment to the environment. In the same year, BSI Group published the world's first environmental management systems standard, BS 7750. This supplied the template for the development of the ISO 14000 series in 1996, by the International Organization for Standardization, which has representation from committees all over the world (ISO) (Clements 1996, Brorson& Larsson, 1999). As of 2010, ISO 14001 is now used by at least 223 149 organizations in 159 countries and economies.

Development of the ISO 14000 series

The ISO 14000 family includes most notably the ISO 14001 standard, which represents the core set of standards used by organizations for designing and implementing an effective environmental management system. Other standards included in this series are ISO 14004, which gives additional guidelines for a good environmental management system, and more specialized standards dealing with specific aspects of environmental management. The major objective of the ISO 14000 series of norms is "to promote more effective and efficient environmental management in organizations and to provide useful and usable tools - ones that are cost effective, system-based, flexible and reflect the best organizations and the best organizational practices available for gathering, interpreting and communicating environmentally relevant information".

Unlike previous environmental regulations, which began with command and control approaches, later replaced with ones based on market mechanisms, ISO 14000 was based on a voluntary approach to environmental regulation (Szymanski &Tiwari 2004). The series includes the ISO 14001 standard, which provides guidelines for the establishment or improvement of an EMS. The standard shares many common traits with its predecessor ISO 9000, the international standard of quality management (Jackson 1997), which served as a model for its internal structure (National Academy Press 1999) and both can be implemented side by side. As with ISO 9000, ISO 14000 acts both as an internal management tool and as a way of demonstrating a company’s environmental commitment to its customers and clients (Boiral 2007).

Prior to the development of the ISO 14000 series, organizations voluntarily constructed their own EMS systems, but this made comparisons of environmental effects between companies difficult and therefore the universal ISO 14000 series was developed. An EMS is defined by ISO as: “part of the overall management system, that includes organizational structure, planning activities, responsibilities, practices, procedures, processes and resources for developing, implementing, achieving and maintaining the environmental policy’ (ISO 1996 cited in Federal Facilities Council Report 1999).

ISO 14001 standard

ISO 14001 sets out the criteria for an environmental management system. It does not state requirements for environmental performance, but maps out a framework that a company or organization can follow to set up an effective environmental management system. It can be used by any organization that wants to improve resource efficiency, reduce waste and drive down costs. Using ISO 14001 can provide assurance to company management and employees as well as external stakeholders that environmental impact is being measured and improv. ISO 14001 can also be integrated with other management functions and assists companies in meeting their environmental and economic goals.

ISO 14001, as with other ISO 14000 standards, is voluntary (IISD 2010), with its main aim to assist companies in continually improving their environmental performance, whilst complying with any applicable legislation. Organizations are responsible for setting their own targets and performance measures, with the standard serving to assist them in meeting objectives and goals and the subsequent monitoring and measurement of these (IISD 2010).

The standard can be applied to a variety of levels in the business, from organizational level, right down to the product and service level (RMIT university). Rather than focusing on exact measures and goals of environmental performance, the standard highlights what an organization needs to do to meet these goals (IISD 2010).

ISO 14001 is known as a generic management system standard, meaning that it is relevant to any organization seeking to improve and manage resources more effectively. This includes:

• single site to large multi-national companies
• high risk companies to low risk service organizations
• manufacturing, process and the service industries; including local governments
• all industry sectors including public and private sectors
• original equipment manufacturers and their suppliers.

All standards are periodically reviewed by ISO to ensure they still meet market requirements. The current version of ISO 14001 – ISO 14001:2004 is under review as of April 2012.

Basic principles and methodology

Plan – establish objectives and processes required

Prior to implementing ISO 14001, an initial review or gap analysis of the organization’s processes and products is recommended, to assist in identifying all elements of the current operation and if possible future operations, that may interact with the environment, termed environmental aspects (Martin 1998). Environmental aspects can include both direct, such as those used during manufacturing and indirect, such as raw materials (Martin 1998). This review assists the organization in establishing their environmental objectives, goals and targets, which should ideally be measurable; helps with the development of control and management procedures and processes and serves to highlight any relevant legal requirements, which can then be built into the policy (Standards Australia/Standards New Zealand 2004).

Do – implement the processes

During this stage the organization identifies the resources required and works out those members of the organization responsible for the EMS’ implementation and control (Martin 1998). This includes establishing procedures and processes, although only one documented procedure is specified related to operational control. Other procedures are required to foster better management control over elements such as documentation control, emergency preparedness and response, and the education of employees, to ensure they can competently implement the necessary processes and record results (Standards Australia/Standards New Zealand 2004). Communication and participation across all levels of the organization, especially top management is a vital part of the implementation phase, with the effectiveness of the EMS being dependant on active involvement from all employees (Federal Facilities Council Report 1999).

Check – measure and monitor the processes and report results

During the check stage, performance is monitored and periodically measured to ensure that the organization’s environmental targets and objectives are being met (Martin 1998). In addition, internal audits are conducted at planned intervals to ascertain whether the EMS meets the user's expectations and whether the processes and procedures are being adequately maintained and monitored (Standards Australia/Standards New Zealand 2004).

Act – take action to improve performance of EMS based on results

After the checking stage, a management review is conducted to ensure that the objectives of the EMS are being met, the extent to which they are being met, that communications are being appropriately managed and to evaluate changing circumstances, such as legal requirements, in order to make recommendations for further improvement of the system (Standards Australia/Standards New Zealand 2004). These recommendations are incorporated through continual improvement, plans are renewed or new plans are made, and the EMS moves forward.

Continual Improvement Process

The core requirement of a continual improvement process (CIP) is different from the one known from quality management systems. CIP in ISO 14001 has three dimensions (Gastl, 2009):

• Expansion: More and more business areas get covered by the implemented EMS.
• Enrichment: More and more activities, products, processes, emissions, resources etc. get managed by the implemented EMS.
• Upgrading: An improvement of the structural and organizational framework of the EMS, as well as an accumulation of know-how in dealing with business related environmental issues.

Overall, the CIP-concept expects the organization to gradually move away from merely operational environmental measures towards a strategic approach on how to deal with environmental challenges.

Benefits

ISO 14001 was developed primarily to assist companies with a framework for better management control that can result in reducing their environmental impacts. In addition to improvements in performance, organizations can reap a number of economic benefits including higher conformance with legislative and regulatory requirements (Sheldon 1997) by adopting the ISO standard. By minimizing the risk of regulatory and environmental liability fines and improving an organization’s efficiency (Delmas 2001), benefits can include a reduction in waste and consumption of resources, and operating costs. Secondly, as an internationally recognized standard, businesses operating in multiple locations across the globe can leverage their conformance to ISO 14001, eliminating the need for multiple registrations or certifications (Hutchens 2010). Thirdly there has been a push in the last decade by consumers, for companies to adopt better internal controls, making the incorporation of ISO 14001 a smart approach for the long term viability of businesses. This can provide them with a competitive advantage against companies that do not adopt the standard (Potoki&Prakash, 2005). This in turn can have a positive impact on a company’s asset value (Van der Deldt, 1997). It can lead to improved public perceptions of the business, placing them in a better position to operate in the international marketplace (Potoki&Prakash 1997; Sheldon 1997). The use of ISO 14001 can demonstrate an innovative and forward thinking approach to customers and prospective employees. It can increase a business’s access to new customers and business partners. In some markets it can potentially reduce public liability insurance costs. It can serve to reduce trade barriers between registered businesses (Van der Deldt, 1997). There is growing interest in including certification to ISO 14001 in tenders for public-private partnerships for infrastructure renewal. Evidence of value in terms of environmental quality and benefit to the taxpayer has been shown in highway projects in Canada.

Conformity Assessment

ISO 14001 can be used in whole or in part to help an organization, for profit or not-for-profit, better manage its relationship with the environment. If all the elements of ISO 14001 are incorporated into the management process, the organization may opt to prove that it has achieved full alignment or conformity with the international standard, ISO 14001, by using one of four recognized options. These are:^[6]

1. make a self-determination and self-declaration, or
2. seek confirmation of its conformance by parties having an interest in the organization, such as customers, or
3. seek confirmation of its self-declaration by a party external to the organization, or
4. seek certification/registration of its environmental management system by an external organization.

ISO does not control conformity assessment; its mandate is to develop and maintain standards. ISO has a neutral policy on conformity assessment. One option is not better than the next. Each option serves different market needs. The adopting organization decides which option is best for them, in conjunction with their market needs.

Option 1 is sometimes incorrectly referred to as 'self-certify" or "self-certification". This is not an acceptable reference under ISO terms and definitions, for it can lead to confusion in the market.^[7] The user is responsible for making their own determination. Option 2 is often referred to as a customer or 2nd party audit, which is an acceptable market term. Option 3 is an independent third-party process by an organization that is based on an engagement activity and delivered by specially trained practitioners. This option was based on an accounting procedure branded as the EnviroReady Report, which was created to help small and medium-sized organizations. Its development was originally based on the Canadian Handbook for Accountants; it is now based on an international accounting standard. The fourth option, certification, is another independent third-party process, which has been widely implemented by all types of organizations. Certification is also known in some countries as registration. Service providers of certification or registration are accredited by national accreditation services such as UKAS in the UK

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ISO 14001 and EMAS

In 2010, the latest EMAS Regulation (EMAS III) entered into force; the scheme is now globally applicable, includes key performance indicators and a range of further improvements. Currently, more than 4,500 organisations and approximately 7,800 sites are EMAS registered.

Complementarities and Differences

ISO 14001‘s environmental management system requirements are an integral part of EMAS. However, proponents of EMAS like to think of it as the most credible and robust environmental management instrument on the market^{[citation needed]}, adding several elements on top of the requirements of the international standard. Additional requirements include:

• stricter requirements on the measurement and evaluation of environmental performance against objectives and targets.
• government supervision of the environmental verifiers to ensure compliance with environmental legislation
• strong employee involvement; EMAS organisations acknowledge that active employee involvement is a driving force and a prerequisite for continuous and successful environmental improvements. Most EMAS organisations introduce employee participation schemes at all levels of the organisation to anchor the environmental management and audit system in the organisation successfully.
• environmental core indicators creating multi-annual comparability within and between organisations
• mandatory provision of information to the general public through the validated environmental statement which is based on a comprehensive environmental impact assessment
• registration by a public authority after verification and validation by an independent and accredited/licensed environmental verifier.

Changing from ISO 14001 to EMAS

Organizations applying ISO 14001 only have to take a few steps to become registered under EMAS: The two main differences involve an environmental review to identify significant environmental aspects as well as publishing an environmental statement. Apart from that, minor changes need to be made to a number of other elements during the process of becoming EMAS registered.

ISO 14001 Use in Supply Chains

There are many reasons why ISO 14001 should be potentially attractive to supply chain managers including the use of the voluntary standard to guide the development of integrated systems, its requirement for supply chain members in industries such as automotive and aerospace, the potential of pollution prevention leading to reduced costs of production and higher profits, its alignment with the growing importance of corporate social responsibility, and an ISO registered system may provide firms with a unique environmental resource, capabilities and benefits that lead to competitive advantage.

Emerging areas of research are starting to address the use of this standard to show that ISO 14001 registration can be leveraged across the supply chain for competitive advantage.^[8] By looking at ISO 14001 registered firms, information from the study compared different amounts of integration and sustainability in the supply chain. Several research propositions and an empirical framework posit the impacts of ISO 14001 on supply chain design.

The propositions include:

1. ISO registration leading to more proactive environmental management including process and performance measurement related to sustainability across a supply chain;
2. That ISO registered plants with formal environmental management systems will have higher levels of communication required between OEMs and Tier I suppliers;
3. ISO registered plants with direct relationships to other registered plants in their supply chain will have higher levels of waste reduction and cost efficiency than nonregistered plants;
4. ISO registered plants with direct relationships to other registered plants in the supply chain will have sustainable practices and projects with better ROI than nonregistered firms;
5. ISO registered plants with direct relationships to other registered plants will have higher levels of customer relationship management and will be positively associated with greater expansion opportunities and image than nonregistered plants;
6. ISO registered plants with direct relationships to other registered plants will have fewer issues with employee health and reduced numbers of safety incidents than nonregistered plants;
7. ISO registered plants with a direct relationship to other registered plants will have a strong positive relationship between formal communication, training, monitoring/control systems and firm performance; and
8. ISO registered plants with a direct relationship to other registered plants will have higher levels of involvement and communication, which will be positively related to more internal and external integration with supply chain members.

List of ISO 14000 series standards

• ISO 14001 Environmental management systems—Requirements with guidance for use
• ISO 14004 Environmental management systems—General guidelines on principles, systems and support techniques
• ISO 14015 Environmental assessment of sites and organizations
• ISO 14020 series (14020 to 14025) Environmental labels and declarations
• ISO 14030 discusses post production environmental assessment
• ISO 14031 Environmental performance evaluation—Guidelines
• ISO 14040 series (14040 to 14049), Life Cycle Assessment, LCA, discusses pre-production planning and environment goal setting.
• ISO 14050 terms and definitions.
• ISO 14062 discusses making improvements to environmental impact goals.
• ISO 14063 Environmental communication—Guidelines and examples
• ISO 14064 Measuring, quantifying, and reducing Greenhouse Gas emissions.
• ISO 19011 which specifies one auditprotocol for both 14000 and 9000 series standards together.

Further reading

• Boiral, O. (2007). "Corporate Greening Through ISO 14001: A Rational Myth?".Organization Science18: 127. doi:10.1287/orsc.1060.0224.
• Brorson, T & Larsson, G 1999, Environmental Management: How to Implement an Environmental Management System within a Company or Other Organization, EMS AB, Stockholm.
• Burden, L. 2010, How to up the EMS ante, <http://www.environmentalmanagementsystem.com.au/iso-14001-environmental-management-systems.html>
• Clements, R.B 1996, Complete Guide to ISO 14000, Prentice Hall, Upper Saddle River.
• Corbett, Charles J.; Kirsch, David A. (2009). "International Diffusion of Iso 14000 Certification". Production and Operations Management10 (3): 327. doi:10.1111/j.1937-5956.2001.tb00378.x.
• Delmas, Magali (2009). "Erratum to "Stakeholders and Competitive Advantage: The Case of ISO 14001"". Production and Operations Management13 (4): 398. doi:10.1111/j.1937-5956.2004.tb00226.x.
• Delmas, Magali; Montiel, Ivan (2009). "Greening the Supply Chain: When is Customer Pressure Effective?".Journal of Economics & Management Strategy18: 171. doi:10.1111/j.1530-9134.2009.00211.x.
• Federal Facilities Council Report 1999, Environmental Management Systems and ISO 14001, National Academy Press, Washington DC.
• Gastl, R 2009, CIP in Environmental Management, English management summary of: Gastl, R 2009, KontinuierlicheVerbesserungimUmweltmanagement - die KVP-Forderung der ISO 14001 in Theorie und Unternehmenspraxis, 2nd Edition, vdf, Zurich-Switzerland, envirocip.com
• Hutchens, S, Using ISO 9001 or ISO 14001 to Gain a Competitive Advantage, Intertek white paper, viewed 10 September 2010, intertek.com
• Jackson, Suzan L. (1997). "Monitoring and measurement systems for implementing ISO 14001". Environmental Quality Management6 (3): 33. doi:10.1002/tqem.3310060306.
• International Institute for Sustainable Development (IISD) 2010, ISO 14001, viewed 26 August 2010, iisd.org
• ISO 2007, The ISO survey of ISO 9000 and ISO 14000 Certifications: 16th cycle, ISO, Geneva.
• The ISO Survey of Management System Standard Certifications 2011: viewed 7 Jan 2013 http://www.iso.org/iso/home/news_index/news_archive/news.htm?refid=Ref1686
• Martin, R 1998, ISO 14001 Guidance Manual, National Centre for environmental decision-making research: Technical report, viewed 23 August 2010, usistf.org
• Potoski, Matthew; Prakash, Aseem (2005). "Green Clubs and Voluntary Governance: ISO 14001 and Firms' Regulatory Compliance". American Journal of Political Science49 (2): 235. doi:10.1111/j.0092-5853.2005.00120.x.
• RMIT University, Encyclopedia: ISO 14000 series, viewed 29 August 2010, rglobal.rmit.edu.au
• Sheldon C. 1997, ISO 14001 and Beyond: Environmental Management Systems in the Real World, Prentice Hall, New York.
• Standards Australia/Standards New Zealand 2004, Environmental management systems – Requirements with guidance for use.
• Szymanski *, Michal; Tiwari, Piyush (2004). "ISO 14001 and the Reduction of Toxic Emissions". The Journal of Policy Reform7: 31. doi:10.1080/1384128042000219717.
• Van Der Veldt, Danja (1997). "Case studies of ISO 14001: A new business guide for global environmental protection". Environmental Quality Management7: 1. doi:10.1002/tqem.3310070102.