10 Reasons to Track a Corporate Carbon Footprint
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In this article, we’ll explain what a corporate carbon footprint is, why it’s important, how it is measured, and reasons why your company should track it too.
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ISO 14001: Meaning, Standard and Requirements
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Have you ever wondered how leading organizations systematically manage their environmental impact while maintaining regulatory compliance and business growth with ISO 14001 Standard?
Environmental performance evaluation and keeping track of our environmental footprint is becoming not only a regulatory compliance, but a critical component for corporate environmental obligations to ensure cost savings, pollution prevention, improve life cycle analysis, and overall performance improvement for businesses.
Organizations seeking certification can partner with third-party auditors to ensure the processes required to gain a certification body such as an ISO 14001 are met.
In this comprehensive guide, we'll explore what ISO 14001 entails, how compliance delivers measurable benefits to your organization, and the specific requirements needed to acquire this internationally recognized certification.
ISO 14001 Environmental Management System: The Global Standard for Environmental Performance
What is ISO 14001?
ISO 14001 is an internationally recognized standard, developed by the International Organization for Standardization (ISO), which defines the requirements for implementing and maintaining an effective Environmental Management Systems (EMS).
As a whole, the management system standards depicted in ISO 14001 can allow companies to identify, manage, and monitor their environmental risks and responsibilities in a systematic way – making environmental management and overall sustainable development more approachable.
ISO 14001 consists of five key elements:
- Environmental Policy
- Planning
- Implementation
- Corrective Action
- Monitoring Under Management Review
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ISO 14001 Environmental Management Certification: The Path to Recognition
In order to obtain an ISO 14001 Environmental Management certification, it is necessary to provide documentation that proves that your company's Environmental Management System (EMS) meets the standard requirements.
Even if all of your plans to operate sustainably have yet to be fully implemented, your documentation must clearly illustrate a comprehensive roadmap with measurable milestones toward a more sustainable future. Furthermore, it is important that your documentation outlines future plans to employ these practices – such as via efforts to manage resource consumption, waste minimization, employ support techniques, or seek independent verification.
It is crucial that the company as a whole is cognizant of the environmental strategies in place so that the whole supply chain can work towards the company's environmental responsibilities and obtain them more efficiently via environmental controls.
“ We view the establishment of an EMS as a process that forces us to better organize our priorities and projects and to identify problems and exposures before they occur. – (K.J. Quinn & Co). ”
Environmental Management Systems (EMS)
What is an Environmental Management System?
Environmental Management Systems provide comprehensive, structured frameworks and practical implementation tools that empower organizations to strategically identify, manage, and reduce their environmental impact while simultaneously working toward their sustainability objectives.
This is achieved through the use rigorous documentation and continual progress reporting of a company's environmental performance metrics and corporate sustainability policies.
However, it is important to note that Environmental Management Systems adopt a flexible approach towards improving environmental performance and don't prescribe specific environmental targets that must be achieved across all organizations. Therefore, Environmental Management Systems should be adjusted or personalized by company management or leadership to align with the organization's unique industry challenges and individual sustainability goals.
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Benefits of Environmental Management Systems
An Environmental Management System is an affordable, methodical system that allows an organization to implement the systematic changes necessary to achieve an ISO 14001 certification. It helps identify and manage the environmental aspects present throughout an organization's operations, including those that are exceed regulatory requirements, are not compulsory, and would otherwise remain unaddressed in conventional business practices.
Environmental Management Systems allow companies with the robust tools needed to recognize, quantify, analyze, assess, and continuously reduce their carbon footprint. This structured approach also encourages organizations to proactively address environmental challenges and implement targeted actions to achieve new ambitious environmental objectives.
Establishing an Environmental Management System serves as the ultimate pathway for an organization to receive an ISO 14001 certification.
“ "An EMS motivates a company to constantly improve its environmental performance. The system operates in a loop.” – (Netsol Water). ”
As explained before, an ISO 14001 serves as a model to help a business or project establish effective environmental management practices. It also enables companies to cultivate a greater sense of trust and transparency with both internal and external stakeholders (i.e. consumers, investors, and employees) – ultimately enhancing brand reputation, gaining a competitive advantage, and supporting long-term business growth and resilience.
What is the ISO 14001 Standard?
Does it matter which version, ISO 14001 (2004) or ISO 14001 (2015), is used for your organization's management approach and certification journey?
The current version of ISO 14001 (2015) establishes more rigorous legal compliance requirements for organizations seeking ISO certification in comparison to its predecessor. It uses concrete environmental definitions and also includes new sections not previously found in ISO 14001 (2004), which focused on proactive initiatives for environmental protection and life-cycle analysis.
ISO 14001 Standard Terms and Definitions
As part of ISO's international standardization initiative to structure all management system and ISO standards the same way, the ISO 14001 (2015) revisions adopted the Annex SL high-level structure – which implements the use of mandatory definitions, common core requirements, and consistent clauses across all ISO management system standards.
New Requirements
However, the biggest change to ISO 14001 (2015) are the new requirements for executive leadership engagement, strategic stakeholder interactions, the necessity for comprehensive risk-management, proactive pollution prevention measures, increased 'essential documentation' requirements, and heightened organizational accountability regarding environmental impacts across the entire value chain.
Reduce Carbon Emissions
ISO 14001 (2015) mandates that organizations demonstrate a higher level of commitment and executive leadership with regards to the development, implementation, and continuous improvement of their Environmental Management Systems.
Rather than simply vowing to not cause further harm to the environment, the company must strive to actively reduce their carbon footprint and other aspects of their environmental impact.
Provide Assurance to Stakeholders
The new ISO 14001 requires organizations to systematically identify and consider the needs and expectations of all other relevant stakeholders involved in the business or project, and to thoroughly assess potential environmental, business, and reputational consequences if the objectives of their EMS are not achieved.
Environmental Targets
In contrast to ISO 14001 (2004), ISO 14001 (2015) requires organizations to consider how their environmental goals will impact both internal operations and of the company impact both internal operations and broader society. This allows for a more thorough risk-management assessment and creates opportunities to improve upon environmental targets previously set in place, helping to further develop their integrated management system.
Regulations
Lastly, the new ISO 14001 (2015) requires organizations to adhere to the new, stricter environmental regulations in place. For example, the life cycle of a product or service and its environmental impact on the environment is imperative in the new ISO 14001. Products and services must be designed and utilized in alignment with the environmental targets set by the organization. This ultimately allows the company to improve their sustainability, while also positively impacting the environment and building a more successful business.
As established above, ISO 14001 (2015) employs more quantitative performance indicators, numerical data, empirical evidence requirements, and precise terminology to strengthen the efficiency and effectiveness of an Environmental Management System, while demanding more comprehensive environmental stewardship from organizations seeking ISO 14001 certification.
Given these substantial updates, greater performance expectations, and stricter requirements of ISO 14001 (2015) in comparison to the outdated ISO 14001 (2004) – environmental management experts strongly recommended organizations to implement and align their overall management system with the current ISO 14001 standard to ensure optimal environmental and business benefits.
The table below will further depict the differences between ISO 14001 (2004) and ISO 14001 (2015):
| Feature | ISO 14001:2004 | ISO 14001:2015 |
|---|---|---|
| Context of the Organization | No specific requirements to understand the organization context | Requires organizations to understand the context in which they operate, including internal and external issues |
| Leadership | Less emphasis on leadership | Emphasizes the role of top management in integrating environmental management into business processes |
| Risk-based Thinking | No explicit requirement for risk-based thinking | Introduces risk-based thinking to identify and address potential risks and opportunities |
| Environmental Objectives | Objectives were required but with less emphasis on how to achieve them | Requires setting environmental objectives and planning to achieve them, including criteria for evaluating performance |
| Communication | Communication was more internally focused | Requires both internal and external communication on environmental performance and the effectiveness of the EMS |
| Documentation | Focus on documented procedures | Less prescriptive on documentation, allowing flexibility in how information is documented |
| Life Cycle Perspective | No specific requirement to consider a life cycle perspective | Requires organizations to consider the environmental aspects of their activities, products, and services from a life cycle perspective |
| Performance Evaluation | Emphasis on internal audits and management review | Focuses on performance evaluation including monitoring, measurement, analysis, and evaluation of environmental performance |
| Continual Improvement | Requires continual improvement but less structured approach | Structured approach to continual improvement of the EMS to enhance environmental performance |
Why Your Company Should Seek to Be Certified By ISO 14001
The easiest way to think about the benefit of acquiring an ISO 14001 is to compare it the benefits of a degree in higher education.
Now imagine that you're in a job interview to become a junior environmental scientist. You've never held the position before, but you're passionate about the subject and know that you're up to the job. But how does the hiring manager know that you're qualified for the position? Can we really expect them to simply take our word for it?
Thankfully, in this imaginary scenario, they don't have to – as a degree from a higher educational institute is usually used to verify your credentials. Furthermore, our degrees prove that we've invested time and money to acquire extensive experience and knowledge. The likelihood of being taken seriously on a job interview is greater if you have enrolled in higher education, or any other post-education experience that allows you to obtain a proper certification.
Well, the same is true for companies who hold an ISO 14001 certification – the proof of adhering to the practical tools and frameworks provided by ISO 14001 establishes greater security for all third-parties involved in the project.
The international standard will encourage investors, employees, and society to trust your company's mission. It proves to stakeholders that the company is taking steps that positively impact the environment.
“ Over the past several years, many public and private sector organizations have implemented EMS and their numbers grow daily. These organizations report a number of important EMS benefits. – (Environmental Protection Agency). ”
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ISO 14001: An International Standard with Benefits Toward Continual Improvement
There are many benefits to acquiring an ISO 14001 certification for your company - whether you're international or locally operated organization.
Let's take a look at some of the benefits below:
Improve Performance
Similar to the ideal of corporate sustainability, receiving an ISO approval for your company can ensure your business runs more efficiently and successfully.
The flip cards below will explain some of the ways that ISO 14001 could help boost efficient business performance:
Streamlined Resource Use
ISO 14001 encourages more efficient use of energy and materials, reducing waste and operational costs.
Stronger Regulatory Compliance
The standard helps identify and meet environmental regulations, lowering the risk of fines or legal issues.
Improved Risk Management
ISO 14001 enables businesses to anticipate and control environmental risks before they escalate.
Better Brand Image
Certification demonstrates environmental responsibility, which boosts customer and stakeholder trust.
Environmental Benefits
Getting an ISO certification has a number of positive environmental impacts. It can help maximize waste reduction, improve resource efficiency, lower overall expenditures, and commits a company to monitoring their environmental impact and carbon footprint.
The drop down section below will explain the various environmental benefits associated with ISO 14001:
Waste Reduction
ISO 14001 encourages organizations to reduce waste through more efficient operations and responsible disposal practices.
Improved Resource Efficiency
Through structured environmental management, companies can use materials, energy, and water more efficiently.
Lower Overall Expenditures
Efficient resource use and waste reduction often lead to significant cost savings over time.
Commitment to Environmental Monitoring
ISO 14001 requires continuous monitoring and improvement of a company’s environmental performance, including carbon footprint tracking.
Reduce Waste
The new ISO 14001 (2015) requires that companies significantly decrease the amount of waste they produce.
This could include the following efforts:
- Cutting back on the use of superfluous machinery
- Avoiding unnecessary consumption
- Utilizing renewable energy sources wherever possible
Reduce Costs
Reducing waste can not only benefit the environment and help a company to run more efficiently, but it is also cost effective.
Obtaining an ISO 14001 (2015) certification motivates companies to reduce their waste, to improve their energy usage and raw materials sourcing, as well as to optimize their carbon footprint. As a result, the organization will see continual improvement when it comes to operating costs, too.
Also, keep in mind – if less production and materials are required, simpler insurance plans can be purchased to protect the company. This decreases the company's expenditures, while simultaneously benefiting the environment.
Fiscal Benefits and Legal Compliance
In addition to the clear, positive environmental effects of obtaining an ISO 14001 (2015), it also has a wide array of fiscal benefits. For instance, obtaining an ISO 14001 guarantees that your company is acting in accordance with all current regulations and legal obligations.
This legal compliance provides investors, employees, and consumers with the assurance that the company can be trusted and is worth collaborating with in future business partnerships. Ultimately, this provides the company with a competitive advantage.
Several companies have been successful with ISO 14001, including:
- Toyota – Having implemented ISO 14001 back in 1998, Toyota has been able to manage the environmental impact of their manufacturing systems and improve resource efficiency, boost stakeholder confidence, and reduce emissions.
- Coca-Cola – This popular soda company has made use of ISO 14001 to improve their recycling processes, improved water efficiency by 20%, and work towards reduced carbon emissions by 25%.
- Canon – The camera company heard around the world has benefited from ISO 14001 as it has helped them to improve life cycle management and reduce carbon emissions by 30% from baseline levels.
ISO 14001 Certification: Where Can Your Company Get It?
ISO 14001 is an international standard that can be granted by the American Standards Institute (ANSI), the International Accreditation Forum (IAF), and the BSI Group.
The ISO 14001 certification is renewable for up to a period of three years, after which another ISO 14001 can be requested.
Requirements to Obtain an ISO 14001: Environmental Responsibilities
In order to acquire an ISO 14001, it is necessary to provide documentation that a company's Environmental Management System is aligned with current standards. While not all corporations will have the exact same Environmental Management System, it's important that the company is dedicated to working towards all of the targets they have established.
A clear assessment of environmental performance must be included in the documentation in order to obtain an ISO 14001. This testament should include numerical data on the use of water, electricity, and gas, how much waste is produced, air emissions, sewage disposal, and plans for future maintenance on activities that could produce a large carbon footprint.
Requirements for an ISO 14001 include:
- Clear Mission or Policy Statement: The company must have a clear, concise mission statement on how they plan to prevent pollution and protect the environment – and how their project will continue to employ their environmental goals. The company must also demonstrate the potential benefits and risks of their efforts to positively impact the environment.
- Assessment for Environmental Performance: A clear assessment of environmental performance must be included in the documentation in order to obtain an ISO 14001. This testament should include numerical data on the use of water, electricity, and gas, how much waste is produced, air emissions, sewage disposal, and plans for future maintenance on activities that could produce a large carbon footprint.
The multi modal content below will provide some sample mission statements by industry:
Fashion: Our mission is to minimize environmental impact across our production lifecycle — from sourcing sustainable textiles to responsible water use and waste management — in full alignment with ISO 14001 standards.
Food: We commit to implementing environmentally sound practices in sourcing, packaging, and distribution, reducing food waste and emissions at every stage, while adhering to ISO 14001 principles.
Construction: We aim to integrate ISO 14001 by minimizing material waste, reducing on-site emissions, and responsibly sourcing building materials for more sustainable construction outcomes.
Airline Travel: Our environmental mission is to reduce fuel emissions, manage onboard and airport waste, and improve energy efficiency in alignment with ISO 14001 environmental objectives.
Technology: We strive to design and operate with sustainability in mind — reducing electronic waste, lowering energy usage, and ensuring ethical sourcing — as part of our ISO 14001-aligned environmental strategy.
This management review and data evaluation will allow the company to create and instill a sustainable plan with environmental goals that align with their company's mission, and begin their journey towards being more environmentally friendly.
- Internal Audits: All production and environmental practices must be assessed via internal audits to ensure that they comply with legal requirements. A good place to start is to make a list of all the machinery or environmental plans currently put in place, and assess each piece of equipment one at a time.
It is imperative to show that your company is prepared to respond in the event of an emergency, with as little damage done to the environment as possible : such as electricity loss, fire, or a flood.
- Compliance Obligations: Any third party associated with the company seeking to obtain an IOS 14001 must also comply with the Environmental Management System measures your company has put in place.
- Additional Resources to Meet Regulatory Requirements: Also, any new training regarding new Environmental Management System practices should be well documented amongst employees to ensure an efficient supply chain. This will reassure third parties and consumers that employees are competent and aware of the Environmental Management System practices in place.
Consistent communication, both within the company and to third party suppliers, ensuring that these new regulations are in progress – is also necessary to obtain an IOS 14001.
It is important to track and document your company's progress towards achieving their environmental goals, as well as any obligations your company has to any third parties.
- Strategic Approach & Tracking: Companies seeking to acquire an IOS 14001 should consistently monitor the state of their current Environmental Management Systems, and document the progress. Any mishap should be reported, and a plan for corrective action should be illustrated in the event any non-complaint action occurs again.
All in all, there are many documents required in order to successfully obtain an ISO 14001 (2015) – but an organized business will likely already have many of these documents in order.
The Process to Obtain an ISO 14001 (2015): How Your Can Company Get Started
Your company can get started with ISO 14001 by taking a look at its supply chains, implementing an effective EMS system, and seeking the help of a third party, external organization like Greenly to find the best practice right for your company and to continually improve ESG practices and be viewed as honorable to certified organizations.
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First, it is important to clearly define your company's objectives, and outline exactly how your company will achieve those goals.
Secondly, make sure that your team is committed and supports the general guidelines required throughout the process to acquire ISO 14001 process. They should receive proper training to ensure that the company's Environmental Management System can operate at maximum efficiency, and will also ensure that they're aware of the demands needed to document progress.
Lastly, it's important to summarize the tangible benefits or impact your organization has on the environment, and to establish attainable goals to promote environmental sustainability.
If your company is willing to monitor, adjust, and continuously implement new environmental regulations and record documentation of these actions – your company will be well on their way to obtaining an ISO 14001 (2015).
Increase New Business Opportunities and Gain New Customers with Greenly
Our climate experts are on hand to support your organization on the implementation of an effective environmental policy, as well as with your environmental communication!
We can provide assistance with the following and ultimate help your organization acquire a certification for ISO 2015 with:
- Our tailor-made life cycle analysis platform
- Assistance complying with the CSRD and addressing gap analysis
- Our user-friendly dashboard used as a valuable tool to connect with suppliers and stakeholders
Click here to learn more about Greenly and how we can help you reduce your carbon footprint.
Don't wait any longer, take the first step towards reducing your carbon footprint by requesting a free and non-binding demo with one of our experts today and finding the solution that best fits your business needs.
What About Greenly?
If reading this article about ISO 14001 has made you interested in reducing your carbon emissions to further fight against climate change – Greenly can help you!
The process to obtain an ISO 14001 can be confusing without the help of a third party, but don’t worry – we offer a free demo for you to better understand our platform and all that it has to offer – including assistance with boosting supplier engagement, personalized assistance, and new ways to involve your employees.
Learn more about Greenly’s carbon management platform here.
Sources
ISO https://www.iso.org/standards/popular/iso-14000-family
EPA https://www3.epa.gov/npdes/pubs/finalgu.pdf and https://www.epa.gov/ems and https://www.epa.gov/sites/default/files/2015-07/documents/ems_an-implementation-guide-for-small-and-medium-sized-organizations_2nded.pdf
Netsol Water https://www.netsolwater.com/what-is-an-environmental-management-system.php?blog=1334#:~:text=An%20EMS%20motivates%20a%20company,targets%20for%20improving%20environmental%20performance.
SGS Group https://www.sgsgroup.fr/~/media/Global/Documents/Press%20Releases/SGS%20Press%20Release%20FDIS%2014001%20Issued%20July%202%202015.pdf
Toyota https://global.toyota/en/detail/8032540
Coca-Cola https://www.coca-colacompany.com/policies-and-practices/environmental-policy
Canon https://global.canon/en/sustainability/report/pdf/canon-sus-2023-e.pdf
ANSI https://ansi.org/
IAF https://iaf.nu/en/home/
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