ISO 14000 THE VALUE OF CONFORMANCE CERTIFIABLY GREEN - Dr. V. THANIKACHALAM 1
A Voluntary Management Tool:
• Developed by the International business • • • •
community. Provides companies with methodically structured their environmental impacts. Allows your business to avoid risks and costly confusion. Incorporates environmental controls into the daily operations. Consistent, predictable, and costeffective. 2
Limits of ISO 14000 • Does not mandate environmental performance beyond managements’ commitment. • Compliance to existing regulations. • A dedication to continuous improvement. 3
What will happen to my company if I ignore ISO 14000? • Ultimate environmental disasters can
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cripple even a major corporation. Draw pickets to your door step. Bog you down in endless litigation. Initiate wide spread boycotts of your products. Cost you millions.
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Beware of ...... • Cost many billion for cleanup, settlements, and legal penalties. • Investors can take off the company from their preferred lists.
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Global Acceptance • As a means of expending global markets. • Reduce the risks entailed by multiple, often conflicting, environmental regulations. • Follow responsible environmental ethics to maintain market competitiveness. • Reduction in energy consumption. 6
Holistic Approach • EU has adopted ISO 14000 as its sole EMS (Environmental Management System) • Replaced Eco-Management and Audit Scheme (EMAS) [EN 14001 / IS 14001] 7
Universal Approach • Central to a growth strategy that gives an • • • •
organization access to global alliances and new markets. Leads to greater efficiencies. Reduces materials and operating costs. Incorporates quality into the entire process. Span the entire management spectrum – material costs, productivity, quality, liability, health, and safety.
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Eco-Efficient Companies Do Better
• Eco-efficient companies are better
managed companies, and better managed companies are the most successful. • Confirm the bottom-line benefits of environmental management. • Environmental actions, far from acting as cost penalties, actually increased profitability. • Company typically can save money by pollution reductions.
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Investors Expect an EMS
• ISO 14001 assures investors that the company is in control. • Enhances stock value. • Improves the ability to obtain capital.
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World Bank’s Policy
• Evaluates proposals heavily based on
environmental management. • Company’s environmental controls will define the potential to raise capital. • Credit rating companies recommend the lending industry to finance only those operations with definable and controlled environmental risks. 11
Good Corporate Citizenship A market tool
• Use their environmental responsibility
as a budget of distinction. • Provide consumers another reason for buying their products. • Seek out, display, and promote seals of certification and environmentally – proactive labels. 12
Empowering Employees Leads to Success • ISO 14000 removes the walls and empowers • • • • • •
individuals within an organization. Elevates environmental management to a corporate concern. Facilitates change and improvement. ISO 14000 training teaches employees the effect on the environment of their work duties. Trains the employees to minimize the hazards. Includes environmental management in the job description. It becomes everyone’s tasks and everyone’s personal responsibility.
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Impact of not Implementing ISO 14000 on the Corporate (Case – 1. Exxon)
• The Exxon Valdez Collided with a reef in Prince William Sound, Alaska • The resulting oil spill has costed Exxon upward of $ 3 billion for clean up, settlements, and legal penalties. • Customers publically cut up their Exxon credit cards. • Investors took Exxon off their preferred lists. 14
Need for Environmental Management Guidelines • Reduction of energy consumption and • • • • • •
material wastes. Meeting environmental regulations. Saving on fines and penalties in causing pollution and environmental degradation. Gaining the confidence of stockholders and financial institutions. Improving public image. Manufacturing environmentally safe products. Controlling the costs due to company wide environmental management system.
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Global Acceptance of ISO 14000 • • • • • • • • • •
Sweden South Korea The European Union Germany Great Brittan The Netherlands Norway Philippines Japan 113 Countries endorsed ISO 14000
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Multinational Corporations • • • • • • • • • • •
SGS Thomson Hitachi Fuji Electric Company Ltd. Bristol Myers Ford Volvo Rockwell International Sony Toshiba Corporation 3M Canon Inc.
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Advantages of ISO 14000
• Canon reduced energy consumption by 25 percent.
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Project XL (eXcellence in Leadership) • ISO 14000 – A way of empowering business • • • •
to take control of environmental responsibility. Encourage to meet the challenge with far greater flexibility. Government sets the goal. Looks to business to develop its own creative solutions. An effort that allows companies with demonstrated leadership in pollution control to operate under lower requirements than the law provides.
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Leaders • Intel and 3M have been the first to avail themselves of this opportunity. • A genuine turning point in allowing business to take the lead. • American Express recently installed energysaving lighting in its 51 story Manhattan headquarters building and saving more than 40 percent of its electric bills. 20
Jeri International Park, Malaysia
• Plan to utilize solid and liquid wastes to generate electricity through incineration and digestion. • JIP’s planned city entirely energy selfsufficient.
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Pollution Prevention Pays
• 3M, a leader in environmental • • • •
management. 4000 improvements. Eliminated 1.3 billion pounds of pollutants. Saved $ 170 million. Enhanced the company’s public image. 22
Xerox • Established waste-free products, factories and offices. • Produced tremendous savings. • Earned the company numerous awards for outstanding public service.
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Eco-Efficient Companies • Eco-efficient companies are better managed companies, and better managed companies are the most successful.
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Good Corporate Citizenship • • • • • • • •
Ben & Jerry Bath & Body AT & T Federal Express Hallmark Home Depot Honey well Levi Strauss
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Polaroid Reebok Target Stores Texas Instruments Time Warner Viacom Xerox 25
Consensus of these companies • Environmental stewardship is a marketable commodity.
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Japanese Initiatives – ISO 14001 Certified Companies • • • • •
Toyota Sony Chemical Rich Fujitsu Nippon Petroleum
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ISO 14000 Training Matrix Environmental Performance Function Training:
CEO / President EMS
Intent Identify Aspects and Impacts Awareness of Operations Reporting of Operations
Environmental Program Manager
“Training” through Communication
External Stakeholders
Management Function Training: Analyzing Industry Norms and External Forces
Environmental Performance “Operators”
Setting of Policies, Goals, and Objectives
Custodial Staff / Groundskeeping Staff
Specialized Operational Training (i.e., Hazardous Materials, Chemical Storage and Use [Env. And Safety] Chemical Choices)
Research and Development
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Environmental Policy Statements • Must originate from the company’s top management. • Summarize how the company plans to meet the requirements of ISO 14000 • Policy statements can be recorded in an Environment Management System Manual. 29
Standard Operating Procedures (SOPs) • Standard operating procedures are essential to • • • •
run the business. SOP describes what is to be done, when and where it is to done, and by whom and how it is to be done. These procedures are generally presented in a procedural manual. Should have procedures for normal operations. Should have procedures for emergencies.
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Job Instructions • Job instructions pertinent to EMS will be a part of detailed procedure. • Detailed procedure must tell the employees how to perform tasks in the most controlled manner possible. • Procedures must be deployed throughout a company and either kept on hand or displayed where work is performed. • Procedures should reference all guidelines by the employees. 31
Records • Keeping score • Quantify and record the outcomes of procedures.
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Scope of ISO 14001 • • 1. 2. 3. 4. 5.
Five Qualifiers Any organization that wishes to Implement, maintain, and improve an environmental management system Assure itself of its conformance with its stated environmental policy Demonstrate such conformance to others Seek certification / registration of its environmental management system by an external organization Make a self-determination and self-declaration of conformance with this international standard. 33
Environment • Surroundings in which an organization
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operates, including air, water, and natural resources, flora, fauna, humans and their interrelation. Surroundings in this context extend from within an organization to the global system. The inside of your plant is an environment. The places where your products are used are environments. The earth, land, water, animals and people around your facilities is an environment. 34
Environmental aspects • Element of an organization’s activities products or services that can interact with the environment. • A significant environmental aspect is an environmental aspect that has or can have a significant environmental impact. • Be aware of potential interaction with the environment, as well as actual interaction.
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Environmental Impact • Any change to the environment whether adverse or beneficial, wholly or partially resulting from an organization’s activities, products or services.
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Environmental Management System • The part of the over all management system that includes organizational structure, planning activities, responsibilities, practices, procedures, processes and resources for developing, implementing, achieving, reviewing and maintaining the environmental activity.
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Environmental Management System Audit • A systematic and documented verification process of objectivity obtaining and evaluating evidence to determine whether an organization’s environmental management system audit criteria set by the organization, and for communication of this process to management.
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Environmental Objective • Overall environmental goal, arising from the environmental policy, that an organization sets itself to achieve, and which is quantified where practicable.
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Environmental Performance • Measurable results of the environmental management system, related to an organization’s control of its environmental aspects, based on its environmental policy, objectives and targets.
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Environmental Policy • Statement by the organization of its intentions and principles in relation to its overall environmental performance which provides a framework for action and for the setting of its objectives and targets.
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Environmental Target • Detailed performance requirement, quantified where practicable, applicable to the organization of parts or parts there of, that arises from the environmental objectives and needs to be set and met in order to achieve those objectives.
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Interested Party • Individual or group concerned with or affected by the environmental performance of an organization
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Organization • Company, corporation, firm, enterprise, authority or institution, in part or combination thereof, whether incorporated or not, public or private, that has its own functions and administration.
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Prevention of Pollution • Use of processes, practices, materials or products that avoid, reduce or control pollution, which may include recycling, treatment, process changes, control mechanisms, efficient use of resources and material substitution.
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ISO 14001 IMPLEMENTATION CYCLE Management Reviews
Top Management Commitment
Environmental Policy
Audits • Internal • Registration Corrective / Preventive Action Emergency Plan Control Operations EMS Evaluation Write EMS Documentation
Identify: Aspects/Impacts Regulations
Continual Improvement
Training •Awareness •Implementation •Auditing
Set Objectives and Targets; Prepare Environmental Management Program
Allocate Resources * Responsibility / Authority * Money * Appoint management Representative 46
Mandatory Requirement • The organization shall establish and
maintain an environmental management system. • ISO 14001 specification directs companies that desire ISO 14000 certification not only to put an EMS in place, but to take steps to keep the EMS running at a level which will satisfy all requirements of the standard.
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Environmental Policy • Top management shall define the organizations environmental policy. • Top management must ensure concerning an organization’s environmental policy: appropriate to the nature, scale and environmental impacts of its activities products or services.
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Commitment • Top management in defining and evaluating the system, its requirements • Commitment to continual improvement and prevention of pollution. • Commitment to comply with relevant environmental legislation and regulations and with other requirements.
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Thank you for your commitment for environmental protection
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