The environment is a hot topic worldwide, much like the summer of 2023, perhaps even a bit too hot. More and more businesses want to do more, especially when they realize their impact on greenhouse gas (GHG) emissions. The ISO 14001 certification, while not specifically targeting GHGs, can assist by addressing all environmental impacts a company may have.
This standard, which bears a resemblance to ISO 9001, aims to implement an environmental management system. Based on the PDCA (Plan-Do-Check-Act) concept, its requirements focus on planning the system and its resources based on the organization’s context and environmental issues, implementation, monitoring, and improvement. Thus, the standard does not specify what must be done but helps build a risk management system by assisting in prioritizing environmental risks.
Initially, management must demonstrate commitment to three subjects:
More and more companies desire better environmental management throughout their supply chain. When these organizations assess their own environmental impact, they quickly realize that a significant portion of this impact comes from their suppliers. Consequently, they now require ISO 14001 certification from suppliers to reduce this impact, without adding the burden of auditing them to confirm improvement. This requirement is increasingly appearing in tenders from major contractors such as governments, state-owned enterprises, and some large corporations. Slowly but surely, this requirement is cascading down to secondary and subsequent suppliers. Not being certified may soon become a short-term issue.
Even when not a formal requirement, businesses are increasingly analyzing the Environmental, Social, and Governance (ESG) aspects of potential partners. ISO 14001 certification is one element demonstrating the ESG implications of an organization. Therefore, a competitor with certification may be favored without your knowledge. Obtaining certification thus becomes a competitive advantage.
Reviewing and managing environmental risks involves some financial investments but can also lead to financial gains through reduced raw material usage, energy savings, or waste reduction. Obtaining and maintaining an environmental management system certification requires an analysis of environmental risks, prompting companies to reconsider their practices instead of maintaining the status quo. These potential savings can be substantial.
For example, a company that previously generated $30,000 annually in plastic waste from product cutting modified its manufacturing process to eliminate this waste production. In addition to reducing waste treatment costs, they saved on raw material purchases, resulting in significant savings. The initial investment paid off within three years, and they continue to save money since then.
ISO 14001 certification demonstrates clear commitment from management to improving environmental performance, positively impacting credibility with both external partners and employees. Different objectives are documented, communicated to employees, and incorporated into operational procedures, turning intentions into concrete actions. The labor shortage that has persisted for several years has also led to a high turnover rate among employees. In a world where work is increasingly present at home, societal values are increasingly brought to the workplace. Employees predominantly wish to work for a company that does not degrade the environment, and such commitment from management can reduce turnover rates while enhancing attractiveness to new talents. According to a 2019 American study, “75% of American millennials would be willing to accept lower pay to work for a socially responsible company” (Peters, 2019).
Since the 2015 update of the ISO 9001 standard, several other standards, including ISO 14001 and the ISO 45001 health and safety standard, have been revised for better alignment. This alignment facilitates integrating all these standards into a single management system. For instance, handling non-conformities is done the same way, whether they are quality, environmental, or health and safety deviations, which is also true for document management. Internal audits can also be conducted jointly, evaluating different aspects of the standards during a single process audit. The same applies to external audits, where auditors can conduct a combined audit, reducing audit costs and time required.
Requiring suppliers to be ISO 14001 certified does not automatically grant you an environmental green flag. Indeed, a company can obtain certification with basic environmental objectives. Certification ensures that a system is in place to manage environmental risks and that this system is continually improved, so the environmental performance achieved may not match the environmental ambitions of another organization. For example, oil companies are often ISO 14001 certified. They protect the environment by managing spill risks, comply with government emissions regulations through carbon taxes, and improve their environmental performance. However, they are not required to include the impact of their product on the environment in their certification framework, allowing them to compare themselves with a wind turbine company.
Therefore, do not hesitate to clearly communicate your own environmental objectives to your clients so they can choose you with full knowledge.
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