Iso 9000 and iso 14000

The overriding goal of ISO-14000. (History 1995)

As ISO-9000 becomes a way of life for the global business community, ISO-14000 is
almost ready to debut with its own set of standards for voluntary environmental
compliance.

Much has been heard recently about the antiregulation sentiment sweeping across the
country. Lawmakers in Washington have responded with talk of "regulatory reform" and
programs aimed at "re-inventing government."

One of the targets of this regulatory backlash has been the ever-burgeoning flood of
environmental laws and regulations continuing to impose burdens on corporate America.
A common thread running throughout this rhetoric has been a perception that government
is too big and that corporate self-policing and self-management can achieve far greater
benefits at far less cost.

It is unlikely that meaningful relief from environmental regulations will come any time
soon. However, a major step in the direction of voluntary corporate initiatives in this area
is on the horizon.

Getting Ready for 14000

The Geneva-based International Standards Organization, with the assistance of

representatives from over 40 countries, is in the final stages of developing ISO-14000, a
set of voluntary international environmental quality standards designed to promote sound
corporate management of environmental compliance matters.

When fully adopted in early 1996, the standards will allow companies to obtain ISO-
14000 certification of their operations in recognition of the development of these
comprehensive environmental quality standards.

ISO-14000 is the second major undertaking of the International Standards Organization

in developing international quality management systems for business enterprises. In the
mid-1980s the Organization adopted its ISO-9000 series of standards for corporate
quality management. The ISO-9000 program provided a formal mechanism for certifying
that a company had developed and integrated certain quality management principles into
its business operations.

While initially slow to gain acceptance in the business community, ISO-9000

certification is fast becoming a necessary part of standard business practices, both in the
US and abroad. It is estimated that by 1996, 12,000 US companies will be ISO-9000-
certified, up from only 100 in 1990. Internationally, more than 50,000 companies have
received ISO-9000 certification.

The idea behind extending the ISO quality management principles into the environmental
arena arose out of the historic United Nations Conference on Environment and
Development held in Rio de Janeiro in 1992.

Joe Cascio, IBM program director/environmental, health and safety standardization, and
chairman of one of the ISO technical advisor groups, reports that the Rio conference
discussions produced "a proliferation of national and regional environmental
management, labeling and audit schemes that could have impacted international trade in a
very severe way." The need to bring some standardization to these conflicting programs
ultimately provided the impetus for the formation of ISO-14000.

What IS0-14000 is - and isn't - About

What, then, is ISO-14000 all about? The overriding goal of ISO-14000 is to develop a
comprehensive system of universally accepted corporate standards to ensure that
companies will be in a position to successfully manage their environmental compliance
matters.

ISO-14000 is not about developing regulations to attain certain pollution standards.

Instead, the focus is on the management of environmental issues or the development of
internal corporate management programs ultimately leading to responsible and verifiable
operating strategies that will result in the efficient use of natural resources and the
protection of the environment.

ISO-14000 calls for the development of corporate Environmental Management Systems

(EMSs) to guide not only the environmental performance of a company's industrial
operations but also the potential environmental impact of the goods or services produced.

As envisioned by ISO-14000, an effective corporate EMS requires that a company review

the environmental issues and challenges confronting the organization and ultimately
develop policies, objectives, target strategies and production processes to meet and
properly manage these challenges.

ISO-14000 spells out in detail the guiding principles for the development of effective
EMS programs:

First and foremost, ISO-14000 acknowledges that environmental management must be

among the highest corporate priorities. ISO-14000 also acknowledges that a company and
its highest levels of management must demonstrate their commitment to the EMS
process.
Additionally, for effective implementation of EMS programs, ISO-14000 recognizes the
importance of adequate resources, including proper employee training, to the success of
any EMS.

Finally, ISO-14000 recognizes that standardized and comprehensive procedures must be

in place in order to correctly assess the effectiveness of these EMS programs and ensure
the accountability of responsible corporate managers for the success or failure of these
endeavors.

Moving beyond philosophical principles, ISO-14000 also details the critical elements of
an effective EMS. It requires companies to perform an "Initial Environmental Review" of
their operations. This review will include an identification of all regulatory obligations
and potentially significant environmental impacts of a company's operations. This initial
review must also include an honest assessment of the company's compliance status and
the extent to which the company is meeting its regulatory obligations.

Once this review is completed and a company understands the status of its environmental
compliance efforts, it can then move on to the EMS planning process. ISO-14000 states
as one of its guiding principles that "an organization should focus on what needs to be
done - it should have a purpose and a plan."

For the implementation of an EMS, the purpose and plan includes the development of
overriding environmental policies, the establishment of environmental objectives and
targets to meet these policy goals, and the preparation of a strategic plan and management
program aimed at implementing these identified policies and objectives through
scheduled action items.

The remaining critical component of an effective EMS, as recognized in ISO-14000, is

the development of procedures to measure and monitor a company's success in carrying
out its EMS and achieving its environmental policy and performance goals.

Critical components of ISO-14000 are the development of standardized performance

evaluation and auditing procedures. Once completed, these procedures will be used as
benchmarks to assess the true effectiveness of any EMS.

The EMS program outlined in ISO-14000 is by no means revolutionary. In fact, critics of

ISO-14000 argue the program is nothing more than a paperwork exercise with few
benefits and many burdens. Proponents offer that evaluating existing compliance,
documenting findings and actively attempting to manage the environmental impact of
one's operation is a challenge for even the most e nvironmentally responsible of corporate
citizens.

The corresponding benefits to be gained from this process, say these proponents, include
the fostering of good public relations and community and consumer support, the
simplification of the compliance challenge through an understandable and orderly EMS
implementation process, and the opportunity for cost savings and increased profits
resulting from proactive management of environmental liabilities and the thoughtful
development of pollution prevention and resource conservation strategies.

What Will the Impact Be?

At this early stage in the ISO-14000 development process, it is hard to predict the exact
impact these new standards will have on the industrial community, including the
converting industry. Many observers are predicting the impact to be significant and
pervasive. In part, this view is bolstered by the dramatic integration of the ISO-9000
standards into the industrial community.

It is expected that companies with substantial international operations will be obligated to

pursue ISO-14000 certification as this program continues to gain momentum abroad.

For US operations the impact is a little less certain. The Environmental Protection
Agency (EPA) has adopted a "wait and see" attitude on ISO-14000. To date, the Agency
has resisted programs that have strayed too far from traditional "command and control"
regulatory schemes. Recently, though, with its Common Sense Initiatives and
Environmental Leadership Program, EPA appears to be moving in the direction of
affirming, if not promoting, ISO-14000-styled programs.

In order for ISO-14000 to truly catch on in the US, however, EPA must move beyond
merely a tacit recognition of the program and provide tangible benefits to the regulated
community for achieving ISO-14000 recognition.

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