Friday, June 3, 2011

Evolution And Future Challenges Of ISO 14001 Standards

Evolution And Future Challenges Of ISO 14001 Standards

There has been a clear shift in the profile of users of EMS since the 1990s. Typically, the early adopters of the ISO 14001 Standard were in the heavy industry and manufacturing sectors – companies that had large-scale environmental impacts and experience of using ISO 14001 Standards in management.
There has been a clear shift in theprofile of users of EMS since the1990s. Typically, the early adoptersof the standard were in theheavy industry and manufacturingsectors – companies thathad large-scale environmentalimpacts and experience of usingstandards in management.

However, as environmental issues have increased in importance, organizations in the service and support sectors have adopted EMS as well. The spectrum of EMS users has broadened to areas including zoos, farming, schools and universities, military services, media, ships and airlines.

ISO 14001 certification now reaches cruise ship companies, marine transportation services, container carriers and leading ship classification societies.

Almost all airlines and airports can be expected to be certified within the next ten years. Recreation, holidays, browsing in shopping malls. More and more small- and medium-sized enterprises are discovering the benefits of certification. The myth that ISO 14001 is difficult to implement for small business is de-bunked by the fact that more than 200 German chimney sweeps are certified.

The number of EMS users will continue to grow, particularly as ISO 14001 penetrates more effectively into supply chains.

The real challenge in the future, however, will be how well the ISO 14001 participants deal with the most compelling environmental threats – climate change, resource use, biodiversity loss and legal compliance.

For ISO 14001 to maintain its international currency as a force for environmental protection, it will need to demonstrate that it is able to support action on these areas and remain an effective tool for sustainable consumption and production.

ISO14001: A Deterrent against Environmental Degradation

Over the last few years, ISO 14001 has gained considerable support of business communities and governments worldwide. Business communities consider it a catalyst which ensures continued business and provides an opportunity to boost trade with customers overseas. Governments look at it as a useful agent to soften the local industry to comply with environmental legislation.
ISO 14001 is being pushed as an agenda, therefore, which will help in lowering environmental impacts that occur because of the manufacturing sector. On the surface, the picture is quite rosy.
For large manufacturers adopting ISO 14001 is quite practical and makes economic sense. The major assumption while formulating the ISO 14001 was that there is no informal manufacturing sector (because of poor representation and inactive role of the developing countries at TC207). Informal sector in Pakistan is a major component of the manufacturing sector and provides useful support to the formal sector. The informal sector exists within the populated areas, making it extremely hard to regulate. Therefore, the environmental impacts due to this sector are quite significant.
ISO 14001 requires the suppliers of a manufacturer to have an Environmental Management System (EMS) in place as well. For a supplier operating from a small facility in a congested area and meager resources, how can s/he be expected to hire a consultant to develop an EMS? In a country which has a significant informal manufacturing sector, high unemployment due to deteriorating economic condition, high inflation, limited resources, weak monitoring agencies and deteriorating infra-structure, with all these constraints, how is it possible for the manufacturing sector to adopt ISO 14001 in it’s true spirit?
Even if a manufacturer adopts the ISO 14001, what is the guarantee that s/he will get business? What is the incentive for the non-exporting manufacturers to adopt ISO 14001? How can the industry be convinced that ISO 14001 is an opportunity not an obstacle? Considering all these factors, this paper will analyze the current status of ISO 14001 adoption in Pakistan, reasons for adoption, deterrents in adoption, and recommendations on how those deterrents can either be removed or minimized, and it’s overall impact on the environment and economy.

ISO 14001 Standards Audit

ISO 14001 sets out a system that can be audited and certified. In many cases, it is the issue of certification that is critical or controversial and is at the heart of the discussion about the trade implications.Certification means that a qualified body (an accredited certifier) has inspected the EMS system that has been put in place and has made a formal declaration that the system is consistent with the requirements of ISO 14001.The standard allows for self-certification, a declaration by an enterprise that it conforms to ISO 14001. There is considerable skepticism as to whether this approach would be widely accepted, especially when certification has legal or commercial consequences. At the same time, obtaining certification can entail significant costs, and there are issues relating to the international acceptanceof national certification that may make it particularly difficult for companies in some countries to achieve credible certification at a reasonable cost. For firms concerned about having certification that carries real credibility, the costs of bringing in international auditors are typically quite high, partly because the number of internationally recognized firms of certifiers is limited at present.2The issue of accreditation of certifiers is becoming increasingly important as the demand increases.Countries that have adopted ISO 14001 as a national standard can accredit qualified companies as certifiers, and this will satisfy national legal or contractual requirements. However, the fundamental purpose of ISO is to achieve consistency internationally. If certificates from certain countries or agencies are not fully accepted or are regarded as second class, the goal will not have been achieved. It is probable that the international marketplace will eventually put areal commercial value on high-quality certificates, but this level of sophistication and discrimination has not yet been achieved. It is essential to the ultimate success of the whole system that there be a mechanism to ensure that certification in any one country has credibility and acceptability elsewhere.The ISO has outlined procedures for accreditation and certification (Guides 61 and 62), and a formal body, QSAR, has been established to operationalize the process. At the same time, a number of established national accreditation bodiesheavily involved in ISO have set up the informal International Accreditation Forum (IAF) to examine mechanisms for achieving international reciprocity through multilateral agreements (MLAs). However, these systems are in the earlystages, and many enterprises continue to use the established international certifiers, even at additional cost, because of lack of confidence in the acceptability of local certifiers.Given the variability in the design of individual EMS and the substantial costs of the ISO 14000 certification process, there is a growing tendency for large companies that are implementing EMS approaches to pause before taking thislast step. After implementing an EMS and confirming that the enterprise is broadly in conformance with ISO 14001, it is becoming routine to carry out a gap analysis to determine exactly what further actions would be required to achievecertification and to examine the benefits and costs of bringing in third-party certifiers.
ISO 14001 Standards Certification

ISO 14001 Standards sets out a system that can be audited and certified. In many cases, it is the issue of certification that is critical or controversial and is at the heart of the discussion about the trade implications.

Certification means that a qualified body (an accredited certifier) has inspected the EMS system that has been put in place and has made a formal declaration that the system is consistent with the requirements of ISO 14001 Standards.

The standard allows for self-certification, a declaration by an enterprise that it conforms to ISO 14001 Standards. There is considerable skepticism as to whether this approach would be widely accepted, especially when certification has legal or commercial consequences. At the same time, obtaining certification can entail significant costs, and there are issues relating to the international acceptance of national certification that may make it particularly difficult for companies in some countries to achieve credible certification at a reasonable cost. For firms concerned about having certification that carries real credibility, the costs of bringing in international auditors are typically quite high, partly because the number of internationally recognized firms of certifiers is limited at present.

The issue of accreditation of certifiers is becoming increasingly important as the demand increases.