Benefits of ISO 14001; 5 Benefits of EMS

The focus of the ISO 14001 standard is environmental management. This standard provides the layout for the implementation of an Environmental Management System (EMS) that allows organisations to monitor, manage and reduce their environmental impact. Further, the EMS helps organisations improve their environmental performance through efficient usage of resources and reduction in waste, helping them gain the trust of the stakeholders and customers. In this article, the ISO Council tries to introduce the benefits of ISO 14001.

What is an EMS?

EMS is a framework that allows organisations to achieve their environmental goals through consistent review, evaluation and improvement of their performance. Additionally, there is an assumption that with the help of constant review and evaluation, organisations can identify opportunities that will improve the organisation’s performance.

An EMS also helps an organisation address its regulatory requirements systematically and cost-effectively

Since this approach is proactive, it can help reduce the risk of non-compliance and improve health and safety practices for the employees. Moreover, EMS can address cost-related issues like energy conservation and promote a stronger operational control.

The basic elements of an EMS include:

• Reviewing the organisation’s environmental goals.
• Analysing its environmental impacts.
• Setting targets to reduce these impacts and establishing programmes to meet these objectives.
• The environmental objective is achieved through regular monitoring and measuring of these processes.

The benefits of ISO 14001 occur as an EMS constantly encourages an organisation to improve its environmental performance. The recommendations in ISO 14001 urge organisations to follow a repeating cycle where the organisation first commits to an environmental policy and then uses this policy to establish a plan.

The plan is created by setting objectives and targets for improving performance. After the implementation of the plan, the organisation evaluates its performance to gauge if the objectives were met. If the objectives are not met, the ISO 14001 recommends corrective actions.

This continuous cycle helps organisations to remain on top of their environmental policies and objectives. Hence, the benefits of ISO 14001 are incurred because of this constant, repeating cycle.

5 Benefits of ISO 14001

In today’s economy, organisations have no choice but to operate in a manner that is socially and environmentally sustainable. Incorporating the recommendations of ISO 14001 into the business allows organisations to comply with many local, state and federal regulations. The EMS also gives the organisation a competitive advantage. The other benefits of ISO 14001 include:

1.Management of environmental impacts

Managing environmental impact is the most significant advantage of acquiring ISO 14001 certification. The standard conducts environmental reviews to determine the organisation’s direct and indirect environmental aspects. Examples of direct environmental aspects include air emissions, waste, water emissions, resource use, local emissions, land use and risk of environmental accidents.

Examples of indirect environmental aspects include insurance, product life-cycle, capital investments and suppliers’ environmental management. By conducting reviews, the characteristics of each aspect can be identified, helping organisations create customised plans which mitigate their risks.

2.Ensuring legal compliance

For many businesses, it can be difficult to remain updated with all compliance obligations. Smaller organisations, for example, do not have the luxury of having a specific person or resource in charge of determining obligations. By adhering to the recommendations outlined in ISO 14001, organisations are able to comply with local authorities and environmental agencies.

As a result, the costly fines associated with non-compliances are avoided, which potentially enhances brand reputation.

3.Increased morale and retention

Being environmentally conscious is a big benefit when organisations are trying to attract and retain employees, especially from younger generations. The younger generation has an increased focus on purpose. Many “Millennials” state that they won’t work for a company that doesn’t have strong corporate social responsibility (CSR) practices.

4.Increased environmental awareness

The IS0 14001 encourages organisations to engage with employees and consider their feedback. When environmental policies are created by incorporating the inputs from all team members, it can raise engagement and awareness levels. The organisation can customise their plans using communication and training.

In the same vein, when employees are aware of the organisation’s attempt to improve their environmental performance, they become more loyal to the organisation. Hence, employee productivity and retention increase.

5.Reduced operational costs

By incorporating an EMS into the organisation, cost reduction occurs. Cost is reduced in two ways. First, by reducing waste, organisations spend less on purchasing new materials. Secondly, by working on environmental sustainability, the organisation has to spend a lesser amount on compliance with various regulations.

An additional benefit related to finances is that organisations with clear environmental objectives, like those outlined in ISO 14001, are able to sell more products. As the certification is internationally recognised, many organisations use it as a marketing tool and target a much broader and socially conscious market.

In the same manner, when organisations are applying for a tender, the ISO 14001 certification will potentially provide organisations with a competitive advantage during the bidding stage of the tender process.