What Does ISO 14001 Mean To My Company?

There are several forces impacting the movement toward ISO 14001, including government regulations and industrial sector initiatives. But perhaps the most prevalent one is the tremendous amount of media coverage that environmental issues have had. Like it or not, environmental issues make great press. As a result, no matter what type of business you are in, environmental issues affect you.

Today, the environmental focus has two parts: reactive, corrective actions, such as superfund clean-ups, and proactive, preventive actions, such as recycling and environmental impact studies. ISO 14001 is a preventive management tool. By requiring management commitment to compliance with applicable legislation and regulations and to continuous improvement, it forms the basis for a systematic approach to the prevention of pollution. What makes it significantly different from other approaches is this: ISO 14001 is not a set of regulations or laws that require strict compliance. Rather, it is an internationally recognized standard that defines the criteria for a management system for developing and controlling those aspects of a firm's operations that can have an effect on the environment. It can be implemented in any business, from manufacturing to service and education. As such, it is not unlike other management systems such as quality systems, budget systems, financial control systems, to name just a few.

To put the matter into perspective, one may view the implementation of ISO 14001 as either evolutionary or revolutionary. In the evolutionary view, the implementation develops at a pace that is acceptable to its participants. Pros and cons are debated, improvements are made and, most importantly, conformance is voluntary. In the revolutionary view, implementation becomes a mandate of either a government or a business sector. Focus is immediately placed on conformance. Certification by an accredited third-party registrar is required, typically with a deadline established for registration.

In the fish-bowl environment created by the media, it may be in your firm's best interest to take a proactive stance, first toward conformance and then toward certification to ISO 14001. It may not make the media go totally away, but it will provide objective evidence that your management is committed to protecting the environment. Also, from a pure business view, conformance to the requirements of ISO 14001 may provide a competitive marketing advantage. It also provides your firm a proactive approach to risk management.

The majority of the benefits of conformance to ISO 14001 can be realized by a company without going the extra step of certification. However, there are two benefits that can only be realized by certification. These are: entry into controlled markets and public recognition. If you want to do business on an international level, it is likely certification will be a requirement. Even if your business is all domestic, certification and the accompanying public recognition may provide your firm with a marketing advantage. The risk you face is that your competition may obtain this advantage before you do.

As of the early 2005, there were approximately 8000 certifications issued in North America. Nearly 6000 of these were in the United States. This is a significant level of growth since 1997 when there were less than 100 certifications in the United States.

In March of 1997, The EU (European Union), a community of 15 member countries, formerly accepted ISO 14001, with a bridge document, as meeting its EMAS (European Eco-Management and Audit Scheme) requirements. Since one of the requirements of EMAS is for certain companies to have an environmental management system (EMS), it is clear that the number of certified companies will be higher than for those countries that do not have such a requirement, such as the United States. In other words, there is today, in Europe, a requirement for certain companies to be certified. In the United States, this action is paralleled by the automotive sector – the major OEMs have mandated certification to ISO 14001 for their suppliers.
Why would a foreign-based company care whether or not products they purchase and use were produced by a company certified to ISO 14001? Two reasons stand out. First, as industry moves to more of a global economy, there is a need to be viewed by your industrial peers as a Good Global Citizen. Second, on a more specific level, products produced in one country and exported to others will eventually find their way to an incinerator or landfill. Consequently, it may be very important to the importer to have confidence that a life-cycle analysis of the product has been performed and that this information is readily available. Although ISO 14001 does not specifically require life cycle analysis, some organizations include this activity in their process for aspect and impact analysis.

In addition to the automotive OEMs, certain other companies in the United States have taken the lead and are voluntarily pursing certification to ISO 14001. Many of these may be your suppliers in the chemical industry. Just as the chemical industry led the way in ISO 9001, they have also taken a proactive position with ISO 14001. Prior to the existence of ISO 14001, the CMA (Chemical Manufacturers Association) had developed a complete set of environmentally focused standards entitled Responsible Care®. Participation in this industry-driven, self-imposed program is a requirement of membership in CMA. The focus of this program is to improve performance in environmental, health and safety, address public fears and provide flexibility in implementation. Building upon this base (evolutionary), other chemical companies have moved toward certification.

Those companies that have proceeded with the certification process have realized some of the benefits of implementation, which include potential cost savings and improved ability to train new employees. They saw that a well-defined EMS system would serve their stakeholders well. Risks would be defined, proactive actions would be taken to prevent negative environmental impacts and, possibly, there would be less scrutiny by regulatory agencies.

The rubber industry, through its vast supply chain, is very closely aligned to the chemical industry. Additionally, most of the tire manufacturers and many rubber products manufacturers are multi-national. Consequently, they will be directly affected by requirements and mandates in effect in Europe and other parts of the world.

One final, perhaps speculative, thought: It took ISO 9001 several years to catch-on. It got a significant push when the Big-Three American automobile manufactures mandated it as part of QS-9000. ISO 14001 has been a published standard for nearly 9 years. It is possible that the growth of certifications to ISO 14001 may follow the path of ISO 9001. However, since ISO 14001 has such a far-reaching impact and application, do not be surprised if its growth ultimately exceeds that of ISO 9001. It will, if a government or more business sectors mandates certification.
 

Abstract What is ISO 14001 and how does it relate to an ISO 14000 certification? What Does ISO 14001 Mean To My Company? Will My Company Have To Get Certified? What Does My Company Have To Do To Get Started? A Noncompliance to Government Regulation Is Discovered During a Registration Audit. » What Happens? Conclusion: ISO 14000 Certification

What are the benefits of ISO 14001? What is the difference between ISO 14000 and ISO 14001? Why choose SQA for your ISO 14001 certification? What is the process for ISO 14001 certification? What comes after ISO 14001 certification?

Making the transition from thinking Quality to Building an environmental management system ISO 14001: Where Are We? Where Are We Going? SQA's general certification process