Chem395:ISO 14001

This page is for Jesse Federman's case presentation

ACME Chemical Corporation

ACME Chemical Corporation

Proposed ISO Certification 14001 Report

Proposed by: Jesse Federman

Submitted March 21, 2008

Uploaded April 8, 2008

Report Outline

• Introduction • Advantages of ISO 14001 Certification • Framework • Cost/ Benefit Analysis

• ISO 14000 Requirements

• Implementation • Conclusion • Budget Proposal • Appendix A (Documents)

About ACME Chemical Corporation

“Acme Chemical Company has become an internationally recognized leader in the manufacture of sulfur-based heterocyclic building blocks. Major products include 2 thiopheneacetyl chloride (TAC), 5-methoxybenzothiophene, 2 methylthiazoline and 2 chloro 4 aminothiazole. Customers include Eli Lilly, Bristol Myers and Glaxo Smithkline.”

Summary of Proposal:

The ISO 14001 standard is welcomed for detailing the managerial and work "arrangements" to enable corporations to exercise effective control over the implementation of environmental policies. For ACME, the putative (money) benefits of these "arrangements" include the identification of the obstacles blocking policy implementation - organizational barriers, specification of realistic and monitorable goals and the means to align policies and programs with those goals, as well as the chemical processes ACME uses. The ISO 14001 outlines "risk avoidance" and places an emphasis on innovation and creativity. The ISO 14001 for ACME needs to incorporate participatory and more flexible systems of management. Introduction -What is ISO 14000? ISO 14000 is a series of environmental standards for companies to use a structure for managing their impact on the environment. These standards, developed by the International Organization for Standardization (ISO), provide a framework for companies and businesses to follow to realize their effect on the environment. The standards include many environmental disciplines and foster international relations for industrial practices for economic and environmental gain. This paper provides a summary of ISO 14000 Standards. The ISO14000 series standards include the following:

• ISO 14004 provides information on the development and implementation of EMS • ISO 14010 provides general principles of environmental auditing • ISO 14011 provides guidance on EMS (Environmental Management Systems) • 14012 provides information to guide auditors for ISO qualification • ISO 14013/5 provides information for auditors and other assessment materials • ISO 14020+ labeling topics • ISO 14030+ provides information on performance and monitoring within an EMS • ISO 14040+ covers life cycle issues / analysis

ISO14001 the most well known standard, but is the only ISO 14000 standard that exists where it is possible for a company to be certified by an external authority.

The breakdown of the standards is as follows

•Management System Standards ISO 14001 - Environmental Management Systems (EMS) – Specifications that provide guidance for company practices ISO 14004 - Environmental Management Systems - General guidelines on principles, systems and supporting techniques •Organizational Evaluation Standards ISO 14010/11/12 - Guidelines for Environmental Auditing - General principles/Audit procedures/Qualification criteria for environmental auditors. These documents are the guidelines that environmental auditors should satisfy. Other ISO 14000 standards have reached the international standard stage. They deal with environmental site assessment, environmental labeling, environmental performance, life cycle assessment, as well as terms and definitions.

Advantages of ISO 14001 Standards for the Environmental Industry:

Companies that are ISO 14000 certified positively affect the environment in many ways. There are several advantages ISO 14000 companies have over non-certified ISO 14000 companies. Being ISO certified will alleviate many of the pressures companies face. They are as follows: •Using energy and natural resources more efficiently can lower other internal costs and increase productivity.

•Reducing potential dangers: contamination and pollution

•Fewer fines, inspections, taxes, insurance rates, penalties and other environmental costs by conserving energy, reducing waste,and recycling

•Banks favor ISO 14001 certified companies

•Growing international markets

•Lower the time it takes for inspections which will benefit the company and the environmental industry

•Consumers will have more confidence in ISO 14001 certified companies that conform to international standards

The benefits of ISO certification are to-fold. They can be both internally and externally beneficial to the company. Internal benefits are saving money and time through waste reduction and lower energy usage for the ISO 14001 standards. Educating employees about hazards and solutions and then training them. Having the proper documentation and information for inspectors, employees, insurance companies or other parties is also another added benefit.Companies that utilize the ISO certification can increase their competitiveness in the market and form partnerships with other partners at home or abroad. Achieving registration for the ISO 14001 EMS is costly ($70,000 for ACME). Some companies choose to save money and be ISO ready, which means that ISO 14001 is implemented but the company is not registered. Depending on what benefits (both external and internal) ACME is looking for, the decision to be ISO 14001 ready or ISO 14001 registered need to be carefully considered.

ISO 14000 Framework:

Certification for ISO 14000 is independent of the International Organization for Standardization (ISO). It is handled through an independent auditor and each country must create their own framework for registration (for instance each nation has its own council for ISO).The next stage is comprised of four parts. (1) company compliance with the ISO regulations (2) people who provide the ISO 140001 information (3) training and (4) government requirements and mandates. Organizations can become accredited to certify EMS and environmental auditors. Such programs are governed by the appropriate council for each respective nation.

Cost / Benefit Analysis:

To be a registered ISO 14000 certified company, there is a cost-benefit factor. ISO certification is not cheap – with a registration cost ranging from $70,000 - $105,000 for companies with 2-100 employees). There must an assessment of registration costs, ISO implementation and auditing costs.It is known that some companies are not fully aware of certain environmental hazards or posses faulty management techniques. Such practices can hurt a company and cause monetary and environmental damage than necessary. It is important to hire a consultant to implement ISO 14000 standards instead of using internal consultants because of the cost of training and other internal costs.There are three ways that a company can become ISO ready. (1) To save money, self-auditing can be done for the first party evaluation. This is not a common practice among companies (2) hire ISO 14001 consultants (3) become registered or remain ready for registration.

Time Requirements for ISO Certification:

Registration to ISO 14001 requires about twelve to eighteen months. This is about the same time that it takes to implement the ISO 14001standards.

Requirements and Implementation:

To be ISO 14001 registered (or ready), a company must meet five environmental requirements. 1.A Clear Company Environmental Policy Senior management is required to: •Establish an EMS and develop a company policy on issues and provide education about those issues and possible solutions regarding them 2.Clear Project Planning •The company must define the environmental aspects of its activities, products and services, and their impacts on the environment; •Compile a list of regulations and laws that apply to itself; •Set out its environmental objectives and targets considering environmental impacts, legal requirements, technological options and financial requirements; and •Create an environmental management program (water use, electricity use) 3.Implementation and Operation •Provide employees with the structure and responsibility of its processes •Establish / maintain procedures for communication, training, awareness and competence to make sure that all employees are aware of the EMS •Establish appropriate procedures to communicate with interested parties (employees, suppliers, customers); •Produced an EMS / ISO 14001 manual •Establish procedures for controlling documentation for ISO 14001 •Identify activities and processes which can affect the environment •Identify emergency events and design emergency action plans (EAP) •Conduct internal auditing •Hire consultants for auditing or registration 4.Checking and Corrective Action •Develop procedures with monitoring / measuring systems to monitor performance and compliance for specified goals •Define the responsibility and authority for investigations of emergencies and issues of non-compliance •Create a records system for EMS •Decide whether or not to register for ISO 14001 5.Management Review •Company review of the EMS for completeness and effectiveness

Conclusion

ISO 14000 is a series of environmental standards for companies to use a structure for managing their impact on the environment. The standards include many environmental disciplines and foster international relations for industrial practices for economic and environmental gain. For numerous companies, ISO certification allows for a “competitive edge in the market by showing concern for environmental issues.” 1 The purpose of this report was to outline the benefits, regulations, timelines and appropriate actions for ACME to achieve ISO 14001 certification.

References

1.) www.ISO.org

Appendix A – ISO 14001 Documents

• Forward to ISO 14001 Guide

• International Standardization Profile