ISO 14001:2004 specifies requirements for an environmental management system to enable an organization to develop and implement a policy and objectives which take into account legal requirements and other requirements to which the organization subscribes, and information about significant environmental aspects. It applies to those environmental aspects that the organization identifies as those which it can control and those which it can influence. It does not itself state specific environmental performance criteria.

ISO 14001:2004 is applicable to any organization that wishes to establish, implement, maintain and improve an environmental management system, to assure itself of conformity with its stated environmental policy, and to demonstrate conformity with ISO 14001:2004 by

a) Making a self-determination and self-declaration, or

b) Seeking confirmation of its conformance by parties having an interest in the organization, such as customers, or

c) Seeking confirmation of its self-declaration by a party external to the organization, or

d) Seeking certification/registration of its environmental management system by an external organization.

All the requirements in ISO 14001:2004 are intended to be incorporated into any environmental management system. The extent of the application will depend on factors such as the environmental policy of the organization, the nature of its activities, products and services and the location where and the conditions in which it functions.

ISO 14001:2004 also provides, in Annex A, informative guidance on its use.

Benefits

ISO 14001 was developed primarily to assist companies in reducing their environmental impacts, but in addition to an improvement in environmental standards and performance, organizations can reap a number of economic benefits including higher conformance with legislative and regulatory requirements by utilizing the ISO standard. Firstly by minimizing the risk of regulatory and environmental liability fines and improving an organization’s efficiency, leading to a reduction in waste and consumption of resources, operating costs can be reduced. Secondly, as an internationally recognized standard, businesses operating in multiple locations across the globe can register as ISO 14001 compliant, eliminating the need for multiple registrations or certifications. Thirdly there has been a push in the last decade by consumers, for companies to adopt stricter environmental regulations, making the incorporation of ISO 14001 a greater necessity for the long term viability of businesses and providing them with a competitive advantage against companies that do not adopt the standard. This in turn can have a positive impact on a company’s asset value and can lead to improved public perceptions of the business, placing them in a better position to operate in the international marketplace. Certification to ISO 14001 can demonstrate an innovative and forward thinking approach to customers and prospective employees; it can increase a business’s access to new customers and business partners; and it can potentially reduce public liability insurance costs. Finally it can serve to reduce trade barriers between registered businesses.

Organizations can significantly benefit from EMS implementation through the identification of large cleaner production projects (e.g. which can drastically cut electricity costs in manufacturing industries). ISO 14001 can be a very effective tool to identify these cost savings opportunities for some organizations. Some organizations can falter in their planning, lack of senior management commitment and poor understanding of how ISO 14001 should be implemented and find themselves managing an ineffective EMS. Improvements that organizations can make include adequately planning their structure and allocating adequate resources, providing training, creating forums for discussion, setting measurable targets and working according to the philosophy of continuous improvement.