How to effectively integrate climate change into ISO management systems 

By Caroline Chamberland, M.Sc, MBA 

With the 2024 amendment to the ISO standards, certified organizations must rethink their approach to climate change. Section 4.1, now enriched, requires companies to determine whether climate issues influence their organizational context. This requires strategic thinking that goes beyond simple greenhouse gas (GHG) assessments.

In this article, we explore in depth the implications of this amendment, the risks to be anticipated and the opportunities for innovation for companies committed to responsible, sustainable management.

A crucial amendment: Understanding Clause 4.1

As of February 2024, clause 4.1 of ISO standards explicitly states, “The organization shall determine whether any issues arise from climate change.” From 2025, ISO registrars will systematically verify this integration.

This means that organizations must assess climate impacts from several angles:

1. Internal: are operational processes vulnerable to extreme climatic events?
2. Value chain: will supply chains or customers be affected by these phenomena?
3. Contextual: what are the economic, social, technological, legal and environmental risks and opportunities?

Systematic approach: integrating climate issues into PESTEL

To meet this requirement, an in-depth analysis according to the PESTEL framework (political, economic, social, technological, environmental, legal) is essential. Here is a detailed analysis:

Environmental

Climate disturbances, such as heat waves, floods, droughts, forest fires and hurricanes, can disrupt production activities. Shortages of raw materials, transport interruptions and prolonged power cuts are all realities that need to be prepared for.

Companies also need to assess the availability of natural resources:

• Could a water shortage affect your business?
• Is agricultural land, essential for some suppliers, threatened by desertification?
• Does the limited availability of wood due to forest fires affect my raw material prices?

Political and social

Climate change is influencing public policy and societal expectations. Social pressure for sustainable and equitable practices is growing. Companies consuming massive amounts of water in desert regions could be targeted by citizens’ campaigns, or even strict regulations.

It is therefore imperative to plan responses to these pressures in advance, and to integrate stakeholder expectations.

Economic and technological

Future investments will be aimed more at securing operations than maximizing profits. As such, organizations need to explore technologies that can strengthen their resilience.  

Although these investments represent an initial cost, they can avoid considerable losses in the long term. Organizations need to be aware that future investments will be aimed at securing business processes rather than maximizing profits. 

Legal

The legislative framework surrounding GHG emissions, operating permits and environmental standards is evolving rapidly. Companies need to monitor these changes to avoid penalties or unexpected costs.

Impact on the Supply Chain

Even if your organization seems little exposed to direct climate risks, your suppliers may not be so resilient. A prominent example is Porsche, which had to reduce production in 2024 due to flooding that paralyzed one of its critical suppliers.

To anticipate these risks, apply PESTEL analysis to your suppliers:

• Identify those operating in high-risk regions.
• Diversify your sources of supply to limit your dependence.
• Choose suppliers who have themselves integrated proactive management of climate issues.

Understand customer expectations with regard to climate issues

Customers, whether organizations or end users, are increasingly interested in their suppliers’ approach to climate issues. They may demand :

• A measurable reduction in your carbon footprint.
• A robust contingency plan to ensure delivery continuity in the event of a climate crisis.
• Innovative initiatives demonstrating your commitment to sustainability.

Turning constraints into opportunities

Although climate change poses many challenges, it is also a tremendous opportunity for organizations ready to innovate. Here are a few ways in which you can turn these constraints into levers for growth:

1. New business models: explore new business models linked to the circular economy, emerging markets linked to green technologies or resilience solutions.
2. Operational savings: improving energy efficiency or optimizing resources can often reduce costs while minimizing environmental impacts.
3. Collaboration: create synergies with other companies to pool efforts in the face of climate risks.

The importance of training and tools

To effectively integrate climate issues, organizations need to enhance the skills of their teams. Specific training in ISO standards and their updating in relation to climate change is an essential investment.

In conclusion

Integrating climate issues into ISO management systems is not an option, but a necessity for organizations concerned with their sustainability. This implies a holistic approach, taking into account the impacts on all operations, from the supply chain to customer expectations.

By adopting a proactive strategy, you can turn these challenges into opportunities, innovate your practices and contribute to a sustainable future.To find out more, explore our complimentary articles and discover our specialized training courses to strengthen your management systems in the face of climate challenges. Let’s work together to build sustainable, high-performance resilience.