Environmental Management System According to International Standard ISO 14001

Whether it’s a large corporation or a medium-sized enterprise, an increasing number of companies today recognize their responsibility to protect the environment. Within the internationally recognized ISO 14001 standard, these companies find a systematic framework for continuously improving their own environmental performance. By implementing an environmental management system, organizations can contribute to the pillar of sustainability and meet society’s expectations.

The well-known environmental standard demands controllable processes to:

• Record and evaluate environmental aspects
• Reduce negative environmental impact
• Continuously improve resource efficiency

Considerations of risks and opportunities, compliance with laws and other binding obligations, as well as increased environmental awareness among employees, are additional aspects leading to competitive advantages and contributing to securing the future of companies.

Focusing on the holistic approach: This is one of the goals of ISO 14001. Within its scope, the aim is not only to prevent environmental destruction but also to actively protect the environment, considering the life cycle perspective and the expectations of relevant stakeholders.

Scope in ISO 14001 – What You Need to Know

Focusing on the holistic approach: This is one of the goals of ISO 14001. Within its scope, the aim is not only to prevent environmental destruction but also to actively protect the environment, considering the life cycle perspective and the expectations of relevant stakeholders.In this context, the scope is of particular importance. This is because the life cycle concept compels companies to think beyond their own boundaries: the responsibility for their products and services does not end at the company’s premises. According to the ISO 14001 standard, environmental management also involves examining processes in upstream and downstream activities, such as raw material procurement, development, storage, and transportation, even the use and disposal of products and by-products.

However, most companies face uncertainty when it comes to understanding the scope of their environmental management system. Where do the physical and organizational boundaries of the environmental management system begin and end, and what is the meaningful applicability? This is a particular challenge when dealing with complex corporate entities, especially since senior management has the freedom and flexibility to define the organizational, functional, and spatial boundaries themselves. Lack of clarity in delineation compromises the coverage of significant environmental aspects.

Capturing the Scope – What Does ISO 14001 Require?

Chapter 4.3 of the environmental standard requires a clear definition of spatial, functional, and organizational corporate boundaries. Consequently, the delineation must be factual and representative, encompassing all relevant activities with significant environmental aspects and impacts so that stakeholders are not misled. The scope must be defined by the organization, documented, and made available to stakeholders, for example, using a facility map.

What must be considered?

• Activities, products, or services with significant environmental aspects.
• Relevant internal and external issues that significantly affect the intended results (contextual consideration) – external issues include environmental conditions that affect or are affected by the organization.
• Legal and other obligations arising from stakeholder expectations.
• Organizational unit(s), function(s), and physical boundaries.

Once the scope has been defined, all activities, products, and/or services within the organization falling within this scope must be included in environmental management to ensure credibility. Exceptions for negative environmental aspects (including indirect environmental aspects) or to avoid binding obligations must not be made. In the event of changes, such as due to an expansion of operational activities, the scope must be reassessed.

Benefits of Environmental Management

ISO 14001 is the most well-known and successful international standard that sets requirements for an environmental management system. Its purpose is to provide organizations with a framework to systematically protect the environment and respond to changing environmental conditions.

A key success factor is the commitment of top management to environmental corporate governance. This is evidenced, among other things, by a clear environmental policy, long-term environmental goals, and appropriate environmental technology.

The environmental standard is applicable to all organizations, regardless of size or industry. The foundation for continuous improvement, as in other management system standards, is the PDCA cycle (Plan-Do-Check-Act).

Scope in ISO 14001 – Conclusion

• Once a company’s scope has been defined in accordance with the environmental standard, it forms the basis for the following, considering the life cycle approach:
• Identification of environmental aspects and their impacts
• Determination of legal and other obligations
• Introduction of criteria for risk assessment
• An effective environmental management system thus provides the following benefits, among others:
  • Continuous improvement of environmental performance
  • Mitigation or reduction of negative environmental impact
  • Reduction of environmental risks
  • Achieving legal certainty through systematic identification and evaluation of laws and regulations
• Cost savings through systematic and future-oriented thinking and action
• Increased identification and motivation among employees
• Strengthening trust among the general public, customers, authorities, banks, and insurance companies
• Promotion of image and competitiveness nationally and internationally
• Meeting customer requirements