Get Ready ... ISO 14000 is Just Around the Corner

[From the Source - Summer 1995]

As the world economies have become more integrated, business standards have continued to shift from a national to an international focus. Regardless of the industry, there needs to be a basis for the fair exchange of goods and services despite the cultural, regulatory, and currency differences between countries. The International Organization for Standardization (ISO) has been a driving force behind this movement. You may have noticed that ISO does not correspond with the organization's full name. "ISO" is actually not an acronym, but derived from the Greek word "isos", meaning equal. ISO is a global federation of standards organizations representing nearly 100 countries whose mission is to facilitate the exchange of goods and services on a global level. ISO became the leader in the arena of international standardization with the development of the now familiar quality standards ISO 9000.

Why international environmental management standards?

There are many forces that have contributed to the movement for common worldwide environmental management standards. Global environmental problems, regulatory differences between nationals, trade agreements, multi-national companies, and consumer demand for environmental friendly products are just a few. Consumer demand for environmentally friendly products in Europe and more restrictive product laws in some European countries have in some cases amounted to non-tariff trade barriers. U.S. participation in the development of international standards will help to insure that these European markets remain open to our exports. Depending upon who's doing the estimating, the environmental regulatory burden on the U.S. gross national product is anywhere from 3% to 8%. This places U.S. companies at a tremendous disadvantage when competing against products from countries without such regulatory burdens. This is fueling the current political trend towards deregulation in the U.S. For industry, the adoption of market-driven environmental management standards is an opportunity to justify deregulation and level the international playing field.

Who is drafting the standards?

ISO 14000 standards are being developed by the ISO Technical Committee 207. There are 35 countries, including the United States, who are members of this committee. The U.S. delegation is being overseen by the American National Standards Institute (ANSI). Representing the U.S. on the committees and work groups are a host of professionals from industry, consulting, government, and academia. The process of developing a standard begins with each country formulating a national position. Next, a working group creates a draft document. After approval at the sub-committee level, a Committee Draft (CD) is circulated for comment and then ballot. A Draft International Standard (DIS) is then issued for final commenting. If you desire to know more about the ISO process, contact ANSI at 212-642-4900.

What are the standards?

There are five primary standards in ISO 14000. Three of the standards, Environmental Management Systems (EMS), Environmental Auditing (EA), and Environmental Performance Evaluation (EPE), are management related, and the Environmental Labeling and Life-Cycle Assessment standards are product related. The EMS Standard consists of specifications for policy, planning, implementation, corrective action, and management review for an environmental management program. The EA Standards are guidelines for audit procedures and auditor qualifications. The EPE Standard provides direction in the evaluation of systems and determination of performance.

The Environmental Labeling Standard is intended to harmonize legal and cultural differences between countries in product labeling. Issues addressed are third party certification/seal programs and manufacturer self-declarations. Exactly what information is to be contained in ecolabels has been an area of significant debate. As a result, this standard has not progressed as far through the process. The Life-Cycle Assessment Standard specifies the use of life-cycle tools in product evaluation to improve environmental performance. A life-cycle assessment is a study of the impact on the environment resulting from the production and use of a product from the extraction of raw materials to the final disposal of waste. Some concerns at issue in the development of ISO 14000 include the cost of implementation, non-recognition by regulating agencies, application to under-developed countries, trade barriers, and disclosure of audit information during certification. Committee Drafts (CD) may be obtained from ANSI (212-642-4900) or ASTM (215-299-5487). The Draft International Standards (DIS) that were approved at the Oslo meeting in June should be available by August.

Will ISO 14000 affect me?

How do I know if my company needs ISO 14000 certification? Ask yourself these three questions: Does my facility export products? Does it supply foreign companies operating in the U.S.? Does it supply other manufacturers who in turn export products? If you answer yes to any of these questions, chances are you will be hearing a lot more about ISO 14000 in the future.

What can be done now?

Although there will not be any finalized standards until next year, beginning to prepare now will give you a head start for ISO certification. The first standards to be completed will be EMS and environmental auditing. These standards are the furthest along in the process and are the least likely to change. Preparing for the EMS Standard can be done without extensive effort, and may translate into immediate benefits. The EPE, LCA, and labeling standards are further from reaching a finalized form.

Most heavily regulated industries in the U.S. should be well prepared for the EMS Standard. The EMS Standard can be viewed as a blueprint for an environmental management program or as a means of bench marking an established program. To achieve EMS certification you will need to have an environmental policy, identify environmental aspects related to the operation, show regulatory compliance, have objectives and targets that address all environmental aspects in a manner consistent with the environmental policy, define responsibilities, and provide appropriate training. Procedures need to be established for maintaining communication, documenting activities, maintaining operational control, monitoring and measuring key aspects and activities, taking corrective and preventive action, and maintaining records. Finally, the system must be audited periodically with managerial review of the system to ensure continual improvement.

From a marketing standpoint, benefits associated with an effective EMS include meeting the customer's environmental expectations and certification criteria, enhanced image and product recognition, and access to more markets. In the manufacturing operations, an EMS will provide better cost control, more efficient management of resources, and reduce potential liabilities. Liability limitation will also lower insurance costs. An EMS can improve access to capital by demonstrating due diligence and satisfying investor criteria. Externally, an EMS can improve industry-government relations, expedite permitting processes, and help maintain good public relations.