With the expansion of trade markets into the global arena,
it is vital that environmental performance become equalized so that businesses
and industries can compete on a level "environmental playing field."
For this reason, the International Organization of Standardization (ISO), a
non-governmental federation of representatives from 120 countries, is
developing a series of voluntary environmental management standards and
guidance that encourage a more equitable environmental management framework for
businesses worldwide. The standards can help improve an organization's
environmental performance through a systems management approach and continuing
improvement principles.
Need for International Environmental Standards
Many international efforts have addressed environmental
problems and trade-related environmental issues that affect industries. One
outcome of these efforts was the formation of an ISO technical committee to
review the need for standardized environmental management systems (EMSs). Many
factors fuel the need for international standards: a primary one is the
competitive disadvantage that certain countries face because of inconsistencies
in international environmental regulations and the enforcement of those
regulations.
For example, the environmental regulatory burden on the U.S.
gross national product, which has been estimated at between 3 to 8 percent,
places companies at a great disadvantage as they compete against products from
companies without such environmental regulatory burdens. Other driving factors
include non-tariff trade barriers such as European environmental product
labeling requirements.
ISO 14000 establishes the foundation so that companies
strive for improved environmental performance in order to increase their
competitive advantage, not to meet regulatory mandates.
ISO 14000 Series
The ISO 14000 standards currently under development address
a broad range of environmental disciplines that include a basic EMS, auditing,
performance evaluation, product labeling, life cycle assessment, and product
standards. All the standards except the EMS are "guidance" documents.
Only one standard, the ISO 14001 EMS, is a "specification"
standard that serves as the model for a firm's environmental management system.
Companies will receive certification only for the ISO 14001 EMS
standard. This certification can be a self-certification process or a
third-party certification.
The standards can be classified into two general categories:
organizational evaluation and product evaluations. The organizational
evaluations include EMS, the environmental auditing, and the environmental
performance standard. The produce evaluation standards include life cycle
assessment, environmental labeling, and environmental aspects in product
standards.
EMS - ISO 14000
As outlined in the ISO 14001 specification, the EMS standard
presents a generic model for an environmental management system that a company
must adopt. The EMS is a tool that will provide companies with a method to
systematically manage their environmental activities.
The basic components of the EMS standard include (1) a
policy statement (including a commitment to compliance, prevention, and
continuous improvement), (2) an analysis of environmental impact and legal
requirements, (3) a statement of goals/objectives/targets and initiatives, (4)
a corrective action plan, and (5) a management review system. The EMS does not
establish additional environmental compliance requirements or any performance
levels but provides instead the framework for a company to meet the
environmental goals and objectives that it sets for itself. The EMS does not
prescribe additional protection but environmental provides a structure to
protect the environment in a reliable and consistent manner.
The Standards Development Process
This series of ISO 14000 standards is being developed by the
ISO Technical Committee 207. Thirty-five countries including the United States
are members of this committee. The American National Standards Institute (ANSI)
oversees the U.S. delegation. While the ISO 14000 environmental standards are
being developed as a private sector initiative, the committee and its working
groups include representatives from a broad range of industrial, consulting,
governmental and academic entitites.
The process by which standards are developed is as follows.
First, each participating country formulates a national position. Next, a
working draft, a committee draft, and a draft international standard are
developed in turn. Commenting and formal balloting take place along the way.
The ISO 14001 Standard, expected to be completed in July 1996, will be followed
by other guidance standards. All interested parties are encouraged to
participate in the standard development process.
Effects of ISO 14000 Standards on Businesses
The ISO 14000 standards are being designed to apply to all
businesses and industries, large and small, including the service industry.
Businesses serving an international market either directly or indirectly will
be the first to be affected. While businesses can expect European businesses to
lead in requiring suppliers to be ISO 14001 certified, even the U.S. Department
of Energy is planning to require certification by certain contractors by 1997.
Because of its universal applicability, the ISO 14000 series has the potential
for much broarder acceptance and adherence than the ISO 9000 quality
standards.
Potential Benefits and Implications
The potential benefits of the ISO 14000 standard are
numerous. Above all, a company with an ISO 14000 certification will have a
strong competitive advantage in the international and national market place.
Environmental trade barriers will be reduced to encourage trade. An enhanced
public image, demonstration of environmental commitment, and improved
environmental recognition of products will accompany ISO 14001 certification.
The EMS should lead to the use of more efficient and cost-saving pollution
prevention projects, reductions in potential liabilities, lower insurance
premiums, more favorable lending status, a shift toward more proactive and
integrated environmental strategies, and greater personnel awareness and
involvement in multimedia environment-related issues.
Regulatory flexibility for companies that are third-party
certified is being considered by Federal and State regulatory programs.
Regulatory authorities have long recognized that companies with formalized
environmental management systems in place are less likely to violate
environmental laws. The ISO 14001 standard is consistent with governmental
policies on compliance assurance systems and is, in fact, a more detailed and
comprehensive system. Pennsylvania, Florida, and California are in the lead in
pursuing regulatory flexibility pilot studies.
To Prepare for ISO 14000 . . .
Companies should now (1) consider signing onto or attending
ANSI- or Technical Advisory Group- (TAG) sponsored conferences and seminars,
(2) work with trade associations, participate in on-line information exchanges
such as the Global Network for Environmental Technology, or (3) join other
information providers such as Project 14000. Companies already certified under
the ISO 9000 quality standards and those with strong environmental management
frameworks will be better prepared for the new standards. The success of ISO
14000 will depend on a visionary approach by businesses toward market-driven
environmental performance with a new "systems" approach to
incorporating environmental aspects into all levels of operations.
The ISO 14000 series of standards and guidelines are the
most comprehensive environmental management initiatives ever undertaken by the
private sector. The standards are expected to be the international
environmental benchmark for conducting business in the global market place for
the 21st century. ISO 14000 represents a fundamental shift toward market-driven
environmental management standards.
North Carolina ISO 14000 Conference
The Office of Waste Reduction is planning an ISO 14000
conference in early Fall. If your company is interested in pursing special
environmental projects including ISO 14000, contact the Office of Waste
Reduction.
