ISO 14001

Courtesy: ISO 14001

ISO 14001 encourages a company to continually improve its environmental performance. Apart from the obvious – the reduction in actual and possible negative environmental impacts – this is achieved in three ways:

• Expansion: Business areas increasingly get covered by the implemented EMS.
• Enrichment: Activities, products, processes, emissions, resources, etc. increasingly get managed by the implemented EMS.
• Upgrading: The structural and organizational framework of the EMS, as well as an accumulation of knowledge in dealing with business-environmental issues, is improved.

Overall, the CI concept expects the organization to gradually move away from merely operational environmental measures towards a more 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, which can result in reducing their environmental impact. In addition to improvements in performance, organizations can reap a number of economic benefits, including higher conformance with legislative and regulatory requirements by adopting the ISO standard. By minimizing the risk of regulatory and environmental liability fines and improving an organization’s efficiency, benefits can include a reduction in waste, 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. 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. 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 also serve to reduce trade barriers between registered businesses. 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 nonprofit) 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:

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 EMS 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 in so much that 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 one is sometimes incorrectly referred to as “self-certify” or “self-certification”. This is not an acceptable reference under ISO terms and definitions, as it can lead to confusion in the market. The user is responsible for making their own determination.

Option two is often referred to as a customer or 2nd-party audit, which is an acceptable market term.

Option three 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.

ISO 14001 and EMAS

In 2010, the latest EMAS Regulation (EMAS III) entered into force; the scheme is now globally applicable, and includes key performance indicators and a range of further improvements. As of April 2017, more than 3,900 organizations and approximately 9,200 sites are EMAS registered.