G lobalG reenStandardsISO14000 and Sustainable Developm entINTERNATIONAL INSTITUTE FORSU S TA I NA B L E DE V E L O P M E N TIN S T I T U T IN T E R NAT I O NA L D UD V E L O P P E M E N T DU R A B L EG lobal G reen Standards: ISO14000 and Sustainable D evelopm entINTERNATIONAL INSTITUTE FORSU S TA I NA B L E DE V E L O P M E N TIN S T I T U T IN T E R NAT I O NA L D UD V E L O P P E M E N T DU R A B L EG L OB A L G R E E N S T A NDA R DS : Copyright The International Institute for SustainableDevelopment 1996All rights reservedPrinted in CanadaCanadian Cataloguing in Publication DataMain entry under title:Global green standards: ISO 14000 and sustainable developmentIncludes bibliographical references.ISBN 1-895536-05-71. ISO 14000 Series Standards. 2. Environmental protection - Standards. 3. Sustainable development. I. International Institute for Sustainable Development. TS155.7.G461996 658.4'08C96-920166-4This publication is printed on recycled paper.International Institute for Sustainable Development161 Portage Avenue East - 6th FloorWinnipeg, ManitobaR3B 0Y4Core support for IISDs research activities is provided bythe Canadian International Development Agency (CIDA),Environment Canada, and the Government of Manitoba.IS O1 4 0 0 0A ND S US T A I NA B L E D E V E L OP ME NTAcknow ledgm entsIISD is publishing this book as part of its Program on Measures andIndicators. It is also tied to our earlier work on Business Strategies forSustainable Development and Corporate Reporting. The Institute isresponsible for the contents of the document, which is the result ofefforts by several individuals. The project was supervised by StephanBarg, who planned the work and carried it to completion, includingfinalresponsibilityforediting.RobertGaleprepareddraftmaterialswhich are reflected in the text of this publication. Advice and editingassistancewe reprovidedbyAlanKnight.Helpfulsuggestionswe remadebyAaronCosbey,Art Hanson,JennyHi l l a rd,Sh e l d o nMacLeod, David Runnalls, Nola-Kate Seymoar, Konrad von Moltke,John Wolfe, and Wan Hua Yang.JulieWagemakerswasresponsibleforpublication.SusanMi s k i m a nandJacquiePilonhelpedwithtypingandadministrativemanage-ment.G L OB A L G R E E N S T A NDA R DS : PrefaceThisre p o rtisaheads-upanalysisaboutISO14000standards.Adecadefromnowwemayre c o g n i zethesestandardsasoneofthemost significant international initiatives for sustainable development.ISO14000definesavo l u n t a ryenvironmentalmanagementsystem.Usedinconjunctionwithappropriategoals,andwithmanagementcommitment, the standards will help improve corporate performance.They will provide an objective basis for verifying a companys claimsaboutitsperformance.Thisisparticularlyimportantinrelationtointernational trade, where at present almost anyone can make asser-tions about environmental performanceand there are only limitedmeans to address veracity.Consumers,governments,andcompaniesupanddownthesupplychain are all seeking ways to reduce their environmental impact andincrease their long-run sustainability. For companies, the key goals aretobecomemoreefficienttogetmoreoutputperunitofinputwhile earning profits and maintaining the trust of their stakeholders.The ISO 14000 voluntary standards should help. It is important tonotethattheISO14000standardsdonotthemselvesspecifyenvi-ronmentalperformancegoals.Thesemustbesetbythecompanyitself, taking into account the effects it has on the environment, andthe views of its stakeholders.How then can ISO 14000 help meet the global need to move towardsustainable development?Implementationofamanagementsystembasedapproachwillhelpcompanies focus attention on environmental issues, and bring theminto the main stream of corporate decision-making.ISO 14000 is designed to provide customers with a reasonable assur-ance that the performance claims of a company are accurate. In fact,I SO14000wil l helpintegratet heenvi ronmental managementsystems of companies that trade with each other in all corners of theworld.These positives, however, come with a price tag. The ISO process hasnot fully involved all countries or levels of business. Some consumerandenvironmentalorganizationsmaywellbescepticalofvo l u n t a rystandards.AndthereisalargemeasureofcapacitybuildingneededIS O1 4 0 0 0A ND S US T A I NA B L E D E V E L OP ME NTthroughout the world in order for this system to work well. Finally,sustainabledevelopmentre q u i resthatissuesofhumanwe l l - b e i n gbe added to environmental and economic policies. While sustain-abledevelopmentisintroducedwithinISO14000standards,thedetaileddocumentsdealalmostexc l u s i velywithenviro n m e n t a lissues.In this publication, IISD tracks the development of these standardsandprovidesinterpretationofthem.There p o rthighlightswhatcompanies need to think about and what stakeholders interested insustainable development should understand about the ISO 14000initiative. We anticipate adding further information and analysis asevents unfold during the implementation phase. Interested readersshoul dcheckourInternetsi te(http:/ /i i sd1.i i sd.ca/)fortheseupdates,incl udinganextensiveannotatedbibliography,andforinformation on IISDs work on Business, Trade, and Measures andIndicators.Arthur J. HansonPresident and CEOIS O1 4 0 0 0A ND S US T A I NA B L E D E V E L OP ME NTTable of C ontentsAcknowledgmentsPrefaceChapter 1: Introduction 1Why are Standards Important for Environmental Management Systems ? 1What is an Environmental Management System (EMS) and what is ISO 14000? 2Why Is Business Interested? 5Internal Benefits 5External benefits 5Why Should Environmentalists Be Interested? 6Relevance To Sustainable Development 7Chapter 2: Voluntary Standards In Context 10Who Writes Voluntary Standards? 10Voluntary Standards and Regulation 13Advantages and Challenges of Voluntary Standards 17Advantages of Voluntary Standards and Guidelines 18Challenges Faced by Voluntary Standards and Guidelines 18Chapter 3: ISO 14000 and Global Trends 19I SO 14000 and Global Trends 19Voluntary Standards and the Developing World 20Issues for Developing Countries: Results of a UNIDO Expert Group Meeting 23Voluntary Standards and the GATT/WTO 24Chapter 4: TC 207 and ISO 14000 27How it Started 27The Scope of TC 207 28ISO 14000 Organizational Standards 29Environmental Management Systems (EMS) 29Environmental Auditing (EA) 30Environmental Performance Evaluation (EPE) 31ISO 14000 Product Related Standards 32Environmental Labeling (EL) 32Life Cycle Analysis (LCA) 33Environmental Aspects of Product Standards (EAPS) 34Terms and Definitions 34Related Initiatives 34BS7750: Specification for Environmental Management Systems 34The European Eco-Management and Audit Scheme (EMAS) 36The Canadian Standards Association Environmental Program 38Chapter 5: Environmental Management Systems and Environmental Auditing 41What Are They? 41How They Work 42What Can They Do? 50What They Cannot Do 51Management Systems and Managing Performance 51Certification/Registration 53Credibility and Recognition 54Chapter 6: Environmental Labeling 57What Is It? 57How It Works 58What Can It Do? 61Challenges 62Public and Private-sector Certification Programs 64Credibility and Recognition 64Trade Issues 65Chapter 7: Life Cycle Assessment 66What Is It? 66How It Works 68Eco-Profiling System (EPS) Volvo/Swedish Industry 68Method for Comparatively Evaluating the Environmental Impact of Products CML, Netherlands 69ISO Standards 71What Can It Do? 73Challenges 74Chapter 8: Environmental Performance Evaluation 75What Is It? 75How It Works 76What Can It Do? 79What It Cannot Do 80Chapter 9: The Challenge Ahead: Voluntary Standards and Sustainability 82Understanding the Trends 82Voluntary Standards and Sustainability 83Standards, Trade and Environmental Management 85Standards, Trade, Health and Social Welfare 86Principles of Sustainable Performance 88The Challenge Ahead 89Appendix 1: Technical Committee (TC) 207 Membership 91Appendix 2: Selected Bibliography and Internet Websites 94G L OB A L G R E E N S T A NDA R DS : C hapter 1IntroductionWhy are Standards Important for EnvironmentalManagement Systems?Why is there so much interest in the ISO 14000 standards?How willbusiness make use of them?How will regulators respond to them?Ofwhatinterestaretheytoenvironmentalandotherinterestgro u p s ?Whataretheinternationaltradeimplications?Howwilltheyaffectdeveloping countries?And how can they further sustainable develop-ment?These are the questions addressed in this document. The ISO 14000 series of standards has been designed to help enter-prisesmeettheirenvironmentalmanagementsystemneeds.Theyhave been under development by theI nt ernat i onal Organi zati onforSt a n d a rdizati on(ISO)si nce1991.Theyconsi stofasetofdocumentsthatdefi nethekeyel ementsofamanagement system that will help anorganization address the environmen-talissuesitfaces.Themanagementsystemincludesthesettingofgoalsand priorities, assignment of responsi -bilityforaccomplishingthem,mea-suringandre p o rtingonresults,andexternalverificationofcl aims.Eve nthough the first standards in the serieswill not be published until late 1996,many organizations have been imple-menting the system using the drafts since mid 1995. There is intenseinterest in these standards around the world. However, there is often alackofclearunderstandingaboutwhattheyareandwhatroletheycan play.The ISO 14000 standards have been designed to help an organizationimplementorimproveitsenvironmentalmanagementsystem.Thestandards do not set performance values. They provide a way of sys-1IS O1 4 0 0 0A ND S US T A I NA B L E D E V E L OP ME NTThe management systemincludes setting goalsand priorities,assignment ofresponsibility foraccomplishing them,measuring and reportingon results, and externalverification of claims.2G L OB A L G R E E N S T A NDA R DS : tematically setting and managing performance commitments. That is,theyareconcernedwithestablishinghowtoachieveagoal,notw h a tthegoalshoul dbe.Inaddi tiontothecoremanagementsystems standards there are also a number of guidelines that providesupporting tools. These include documents on environmental auditing,e n v i ronmentalperformanceevaluationandenvironmentallabelingand life cycle assessment. Akeycharacteri sticofthesestandardsi stheirvo l u n t a rynature .Voluntary in this case means that there is no legal requirement to usethem.Thisisnottosaythatanorganizationmaynotre q u i reitssupplierstomeettheseenvironmentalmanagementsystem(EMS)s t a n d a rds,thuscreatingade facto re q u i rement.Howe ve r,sucham a rket-basedre q u i rementisstillconsideredvo l u n t a ry.Thesup-pliermaychoosenottoimplementthestandardsandtol ookforother markets.Since the standards have been designed as voluntary, the decision toimplementwillbeabusinessdecision.Businessdecisi onsare,ofcourse,influencedbymorethantheshort-termbottomline.Them o t i vationmaycomefromtheneedtobettermanagecompliancewithenvironmentalregul ations,fromthesearchforprocesseffi-ciencies,fromcustomerrequirements,fromcommunityorenviron-mentalcampaigngrouppre s s u res,orsimplyfromthedesiretobegoodcorporate citizens. The source of the motivation is not important tothe utility and benefit of the standards. What is an Environmental Management System (EMS)and what is ISO 14000?Any organization that has more than a few employees needs to havemanagement systems in place in order to conduct its affairs rationally.T h e rewillbeafinancialsystem,whichdefineshowdecisionsonspendi ng,cashmanagement ,budgeti ngprocesses,accounti ngsystems, and so on, will be made. In addition, delegation of authority,a p p rovalprocesses,andchequesigni ngcontrolswill becove re d .Us u a l l y,thefinancialmanagementsysteminalargecompanywilloccupy the attention of many employees at the operational and exec-u t i velevels.Organizationsalsohavepersonnelmanagementdepart-ments, sales and marketing functions, and manufacturing or produc-tionunitsallwithamanagementsystemthroughwhichdecisionsa remadeandday-to-dayactivitiesaredirected.Justasallofthese3IS O1 4 0 0 0A ND S US T A I NA B L E D E V E L OP ME NTa reasofendeavourarecomplexandre q u i replannedandsystematica p p roaches,sotoodoenvironmentalandsustainabledeve l o p m e n tissues.ISO14000isbeingdevelopedtomeetthedemandforanenviron-mental management system that will be consistent for many sorts oforganizations. The ISO 14000 set of standards and guidelines definesthecoreenvironmentalmanagementsystemitself,andtheauditingprocedures necessary for verification. It also defines three sets of toolsthatareimportantinimplementinganEMS:lifecycleassessment,e n v i ronmentalperformanceevaluation,andenvironmentallabeling.Accompanyi ngthestandardsthem-selves is another body of material thatdefineshowconformitytothestan-d a rdswi l l beassessed.I SO14000standardsdonot,however, define thespeci ficenvironmentalperf o r m a n c egoal st hat anorgani zat i onshoul dattain. These are left up to the organi-zation itself.At thetimeofwri ti ngthi sre p o rt ,these standards and guidelines were invari ousphasesofcompl et ion.Thecore EMS and auditing standards werep rettywell infi nalform,whiletheotherswe reinvariousstagesofcom-pletion.Three sets of tools thatare important inimplementing an EMS:life cycle assessment,environmentalperformance evaluation,and environmentallabeling.ISO 14000 Series of DocumentsThesearethecurrentdocumentsthatformtheISO14000series.Their expected date of coming into force, or current state of develop-ment, is also listed.Document # Document Name State of DevelopmentISO14001 Environm ental M anagem ent System s Published Sept. 1/96Specification W ith G uidance for U seISO14004 Environm ental M anagem ent System s Published Sept. 1/96G eneral G uidelines on Principles, System s and Supporting TechniquesISO14010 G uidelines for Environm ental Auditing Published O ct. 1/96G eneral Principles of Environm ental AuditingISO14011 G uidelines for Environm ental Auditing Published O ct. 1/96Audit procedures Part 1: Auditing of Environm ental M anagem ent SystemISO14012 G uidelines for Environm ental Auditing Published O ct. 1/96Q ualification C riteria for Environm ental AuditorsISO14020 Environm ental Labeling G eneral PrinciplesC Dfor ballot 1998ISO14021Environm ental Labeling D IS - 1998Self-declaration C laim s Term s and D efinitionsISO14022 Environm ental Labeling C Dfor com m ent 1998Self-D eclaration C laim s Sym bols ISO14023 Environm ental Labeling W D- 1998Testing and Verification M ethodologiesISO14024 Environm ental Labeling PractitionerC Dfor ballot 1998Program s G uiding Principles, Practices and C ertification Procedures of M ultiple C riteria (Type I) Program sISO14025 Environm ental Labels and D eclarations N P - 2000Environm ental Inform ation Profiles Type III G uiding Principles and ProceduresISO14031 Evaluation of the Environm entalW D- 2000Perform ance of the M anagem ent Systemand its Relationship to the Environm entISO14040 Life C ycle Assessm ent D IS - 1998Principles and Fram ew orkISO14041 Life C ycle Assessm ent Inventory Analysis C D- 1999ISO14042 Life C ycle Assessm ent Im pact Assessm ent W D- 2000ISO14043 Life C ycle Assessm ent Interpretation W D- 2000ISO14050 Term s and D efinitions D IS - 1998ISOG uide 64 G uide for the Inclusion of Environm entalD IS - 1997Aspects in Product Standards4G L OB A L G R E E N S T A NDA R DS : D IS - D raft International Standard, undergoing voting for final approval; C D- C om m ittee D raft, ready for presentation tothe full technical com m ittee; W D- W orking D raft; N P - Approved N ewW ork Item .Why Is Business Interested?In broad terms, ISO 14000 can fill two requirements in an organiza-tion. The first is the internal need for a system that will help the orga-nizationaddressallofthelegal,commercialandotherchallengesrelated to the environment that face it today. The second is the needto be able to assure those outside of the company that the company ismeeting its stated environmental policies.Internal BenefitsReduce incidents and liability: A systematic approach to manag-ing environmental issues can help to ensure that environmentalincidents and liability are reduced. Efficiency: A systematic approach can help to identify opportu-nities to conserve material and energy inputs, to reduce wastesand to improve process efficiency.Performance: A systematic approach to management leads indi-rectlytoimprovedenvironmentalperformanceandimprove dcost control.Improved corporate culture: Top management commitment toi m p rovedenvironmental management,clearlydefinedgoals,responsibilitiesandaccountabilities,createsagreaterawarenessandunderstandingofenvironmentalissuesandanimprove dcorporate culture.External benefitsT h i rdpartyassuranceandrecognition:Companiesoftenhavetodemonstratethattheirproductsandservicesmeetcert a i nconditions.Thisisexactlywhatstandardsdoefficiently,espe-ciallywhencombinedwiththirdpartyconformityassessmentprograms.Theyreduceoreliminatetheneedofcompaniestoindividuallyinspecteachsuppliersproductsandserviceswithits own auditors. International standards such as the ISO 14000series provide the widest possible recognition of this assurance. Market access: ISO 14000 may become a pre-requisite of doingbusiness. Companies have turned to agreed-upon internationalstandardsasawayofmeetingcertainexpectations.Customersmaydemandthattheirsuppliersmeetspecificenviro n m e n t a l5IS O1 4 0 0 0A ND S US T A I NA B L E D E V E L OP ME NTgoals and have ISO 14000 certification to ensure that the goalsare being met.Regulatory relief: Regulators may begin to recognize the assur-ance provided by ISO 14000 and offer some sort of regulatoryre l i e f,suchaseasierpermitting,fewerinspectionsandstre a m-lined reporting requirements, to those who implement EMS. Expression of due diligence: By using ISO 14000 to systemati-callyidentifyandmanageenvironmentalriskandliability,thecourts, investors and lenders, and regulators may all use it as asign of due diligence and commitment to good environmentalmanagement.Publi cimageandcommunityrelations:ThepresenceofanEMS, the information it produces and the attention it demandswill help an organization communicate with its stakeholders. Financialmarkets:Havinganinternationallyre c o g n i zedEMSin place will improve investor confidence and access to capital,and potentially provide access to preferential insurance rates.Why Should Environmentalists Be Interested?Most outside stakeholders are more interested in how an organizationactually performs than in the tools it may use to achieve that perfor-mance.StakeholderinterestgoesbeyondsimplyknowingthatanEMS is in place. ISO 14000 does not set environmental performancestandards. It leaves these up to the organization, saying only that itspolicies must include a commitment to comply with all relevant lawsand regulations.Howthencanthoseinterestedinimprovingenvironmentalperf o r-mancemakeuseofthesystem?First,ISO14000providesausefultoolwithwhichtoholdcompaniesaccountable.Whenacompanydoes establish a positive environmental policy, the ISO 14000 systemcanbeusedtocheckthatitisactuallyaccomplishingitsgoals,andre p o rtingappropriatelyonthem.Fu rt h e r m o re,companiescanbeencouraged to insist that all of their suppliers meet the environmentalpolicy goals. Finally, just the existence of an EMS in a company willusually lead to environmental performance improvements. It is in thenature of organizations that when an issue is brought into their man-agementstru c t u re,theytrytodealwithitsystematicallyandposi-6G L OB A L G R E E N S T A NDA R DS : 7IS O1 4 0 0 0A ND S US T A I NA B L E D E V E L OP ME NTtively. If encouraged by substantive inputs from customers, environ-mentalgroupsandotherstakeholders,thechancesofimprove m e n tbecome greater.The EMS and performance are closely related, because it is the EMSthat generates the information by which performance is measured andfuture plans established. Thus, stakeholders should want to know twothingsaboutanorganizationinwhichthestakeholderisintere s t e d :thefactthatithasanISO14000compliantEMS,andanunder-standingoftheorganizationsenvironmentalpoliciesandgoals.Byproviding a common basis for defining an appropriate environmentalmanagementsystemformanykindsoforganizations,I SO14000p rovidesacontextwithinwhichanorganizationsclaimsaboutitsenvironmental performance can be assessed.Relevance To Sustainable DevelopmentSustainabledevelopmentinvo l vesthesimultaneousimprovementoftheeconomy,theenvironment,andthewell-beingofpeople.Themost commonly used definition comes from the World CommissiononEn v i ronmentandDe velopment(theBrundtlandCommission)thattiestheissueofsustainabilitytofuturegenerations.Itisgive nh e reinfull,withthequalifierstheCommissionfeltitnecessarytoadd to the single sentence usually quoted.Sustainabledevelopment isdevelopment that meetstheneedsofthepresent without compromisingtheability of futuregenera-tionsto meet their own needs. It containswithin it two key con-cepts: theconcept of needs, in particular theessential needsof theworldspoor, to which overridingpriority should begiven;and theidea of limitationsimposed by thestateof technologyand social organization on theenvironmentsability to meetpresent and futureneeds.Thusthegoalsof economic and social development must bedefined in termsof sustainability in all countriesdeveloped ordeveloping, market-oriented or centrally planned. Interpretationswill vary, but must sharecertain general featuresand must flow 8G L OB A L G R E E N S T A NDA R DS : from a consensuson thebasic concept of sustainabledevelopmentand on a broad strategic framework for achievingit.1Inthecorporatecontext,IISDhasdevelopedthefollowingdefini-tion:For thebusinessenterprise, sustainabledevelopment meansadoptingbusinessstrategiesand activitiesthat meet theneedsoftheenterpriseand itsstakeholderstoday whileprotecting, sus-tainingand enhancingthehuman and natural resourcesthatwill beneeded in thefuture.2Thisdefinitioncapturesthespiritoftheconceptproposedinthereport of the World Commission on Environment and Developmentand focuses attention on areas of specific interest and concern to busi -ness enterprises. It recognizes that economic development must meettheneedsofthebusinessenterpriseanditsstakeholders.Thelatterincludeshareholders,lenders,customers,employees,suppliersandcommunities who are affected (either positively or negatively) by thee n t e r p r i s esbusinessacti vities.Thedefini ti onalsohighlightsthedependenceoftheenterpriseseconomicacti vitiesonhumanandnaturalre s o u rces,inadditiontophysicalandfinancialcapital.Ite m p h a s i zesthateconomicactivitymustnotirreparablydegradeordestroy these natural and human resources.It is important to note, however, that sustainable development cannotbeachievedbyasingleenterprise(or,forthatmatter,bytheentirebusiness community) in isolation from the rest of society. Sustainabledevelopment is a pervasive philosophy to which most participants intheglobaleconomy(includingconsumersandgovernments)mustsubscribe if we hope to meet todays needs without compromising theability of future generations to meet their own.ISO 14000 will contribute to sustainable development to the extentthatithelpsorganizationsmeettheabovedefinition.Itshouldbenoted that ISO 14000 deals with environmental management despiteitspreambl estatementthatitisbasedonthegoalsofsustainabledevelopment. For example, Environment is defined as:1World Commission on Environment and Development. 1987. Our CommonFuture. Oxford, p. 47.2International Institute for Sustainable Development. 1992. BusinessStrategy forSustainableDevelopment: Leadership and Accountability for the90s. IISD,Winnipeg, Canada, p. 116.9IS O1 4 0 0 0A ND S US T A I NA B L E D E V E L OP ME NTSurroundingsin which an organization operates, includingair,water, land, natural resources, flora, fauna, humans, and theirinterrelation. Note: Surroundingsin thiscontext extend from within an orga-nization to theglobal system.3Howe ve r,thehumanaspectofsustai nabledevelopmentdoesnotreceive much mention in the documents. ISO 14000 does not, itself,meetalltheneedsofcorporationswishingtomovemoretow a rds sustainabledevel opment.ISO14000standardswillendeavourtobringenvironmentali ssuesintothemainstreamofthecorporate decision-making process. The route to sustainable development, then,isthroughthecompanysgoalswithre g a rdtoitsstakeholders,whoa recalledinterestedpart i e s.Onceagain,itisthecombinationofvo l u n t a ryresponsesbycompanies,oftendrivenbyconsumerandcampaigner forces, that will be important.3Section 3.3 ISO 1400110G L OB A L G R E E N S T A NDA R DS : C hapter 2 Voluntary Standards In C ontextIn ever yday language, a standard is something that is used as a basisforcomparisonagainstwhichsomethingmaybeassessed.Inthisgeneral sense, most organizations have extensive experience with stan-dards. They have standards that describe various attributes or charac-teristics that a product must have for reasons of interface, quality, orsafety; they have standards that define performance levels and valuesthat products, processes or services must achieve; and they have stan-dards that define processes and systems that describe what must be inplace or how an action is to be conducted. They will have standardsfor accounting, engineering, manufacturing, occupational health ands a f e t y,environmentalprotection,humanre s o u rcemanagement,col-lective bargaining, and employment equity.Manyofthesestandardsmaybeinternaltoanorganization.Theyhave been developed to improve and promote consistency, efficiencyorcompeti tiveadvantage.Ma n y,howe ve r,willbeexternaltotheorganization.Thesefallintotwobroadcategories:thosethatarem a n d a t o ryandregulatedbygovernment,andthosethatarevo l u n-tary and developed and managed by the private-sector. Where regula-t o rystandardsaremandatedbylegislation,priva t e - s e c t o r,vo l u n t a rystandards represent a type of self-regulating activity. The violation of aregulatory standard might lead to fines or litigation; the violation ofanindustrystandardcouldleadtolossofcertificationandbusinessopportunity.Who Writes Voluntary Standards?Theoretically, voluntary standards can be written by anybody. Havingthem used and recognized, however, is a much more difficult proposi-tion.Mi c rosofthasdonei tve rysuccessfull ywithMSDOSandWindows. Apple has had more limited success with Mac/OS. CPM, apopularoperatingsystemintheearly80s,isalmostneverheardofanymore.Allofthesestandardswe rewrittenbyorforindividualcompanieswhothenusedthemtodifferentiatethemselvesi nanattempt to gain market share.11IS O1 4 0 0 0A ND S US T A I NA B L E D E V E L OP ME NTAnothersituationoccurswhencompaniesgettogethertodevelopacommon standard or standards for their industry. This happens whencompetitors decide that it does not make much sense to compete atthe level of the basic technical platform. They prefer to compete at am o reval ue-addedl evel ,usual lybecausetheyfeel thatthi swil lenhance the overall market, for example, a VCR from any companycan be plugged into a TV from any other company. These types ofstandards are usually developed by industry experts with a little pushf romaccountantsandmarketers.In d u s t ryassociationsandpriva t e -sector standards developers often provide the forum.When looking at a broader base of consumers, public safety or tradeissues are involved and a standard is more likely to be developed usinga broader consensus process, governed by strict guidelines and regula-tions. These types of standards are most often developed by private-sector standards writing organizations such as the Canadian StandardsAssociation (CSA) who act as professional facilitators of a consensualprocess. These standards development organizations are often accred-ited bodies who provide process assurances. Electrical safety standardsare a good example.Evenwhenthedevelopmentprocesshasbeenbroadened,howe ve r,there is still potential competition between standards. The competi-tion is now between jurisdictions and not just companiesalthoughthereisstillmuchatstakeforthosecompanieswhodobusinessinm o rethanonejurisdiction.Thistypeofeconomicallyinefficientcompetitionusuallymotivateseffortstoharmonizestandards.Localbodiesbegintoworkwithintheframew o rkofstateorprov i n c e ;p rovincesbegintoworkwithinanationalframew o rk;andnationsbegin to cooperate in international fora.TheISO,theInternationalOrganizationforSt a n d a rdization,basedin Geneva is one of the key international voluntary standards devel-opmentbodies.Formedin1946,its members are the most represen-t a t i veofstandardsbodiesintheircountri es.Therearenow111countries representing over 95% oftheworldsindustrialoutput.Thes t a n d a rdsdevelopedbytheISOare available to the member coun-tries to adopt or adapt as they seefit .IntheTechnical Barri erst oAlthough all ISO standardsare developed as voluntarystandards, many areeventually cited inlegislation.12G L OB A L G R E E N S T A NDA R DS : TradeAgreementoftheGATT,signatoriesareencouragedtoadoptinternationalstandardsoftheISO.AndalthoughallISOstandardsa redevelopedasvo l u n t a rystandards,manyareeventuallycitedinlegislation.TheISOhasinplacearigorousandcomplexprocessforstandardsdevelopment. When it is proposed that a new standard be developeditmustbeapprovedeitherbythemembersofanexistingtechnicalcommittee whose scope of work includes the subject of the proposedstandard, or by the Technical Management Board of the ISO whenthere is no existing Technical Committee (TC)withanappropriatescope.OnceaTechnicalCommitteeisestablishedandhashaditsscope approved by the Technical Management Board it may establishsubcommittees and working groups to carry out the work. There arecurrently over 190 active technical committees and over 11000 ISOstandards have been published.Technical Committees secretariats are managed by member bodies ort hei rdesi gnatesandnotbythecentral secretari at i nGe n e va .MembershipintheISOdoesnotre q u i reactivemembershipinalltechnical committees, thus each technical committee must separatelyinvitethenationalmemberbodiesoftheISOtoparticipateinitsactivities. National member bodies may join a technical committee asp a rt i c i p a t i n gmembers(theymustcommitthere s o u rcesnecessarytoactivelyparticipateinthemeetingsforwhichtheygetavote)orobserver members (they receive all committee materials but do noth a vetoactivelyparticipateinthecommitteesanddonotre c e i veavote).Inadditiontonationalmemberbodies,otherinterestgro u p smayparticipateintheactivitiesofatechnicalcommitteeasliaisonmembers. Liaison members have the right to fully participate in thedevelopment process but they do not have a vote. As of June 1996,membershipofTC207inenvironmentalmanagementconsistedof67 countries, and 22 liaison organizations (see list in Appendix 1).ChoosingtoparticipateinanISOcommitteere q u i resasignificantcommitment.Meetingscantakeplaceanywhereintheworld,thevolume of information that must be dealt with is substantial and theprocess is complex. As a result, those who participate are those whocanmosteasilyidentifytheexpertiseandcanaffordthetimeandmoney to participate. The result is that even though the membershipof the ISO is very broad and representative, the active participants incommittee meetings can often look like meetings of OECD membercountries and multi-national business meetings. It is recognized thatthevalueofthestandardsdevelopedwillonlyincreasewithgre a t e r13IS O1 4 0 0 0A ND S US T A I NA B L E D E V E L OP ME NTparticipation in their development. And the ISO does have a develop-ing country committee (DEVCO) that attempts to support and findfundingforlessaffluentmemberstoparti cipate.Howe ve r,thereisstill a discrepancy in participation.Responsi bil i tyforensuri ngbal -ancedparticipationfromtheful lrangeofparti esi nterestedi nag i venissueliesinlargepartwiththenationalmemberbodies.TheI SOrecommendst hat memberbodydelegationsre p resentabal-ancedviewbutthereisnostrictre q u i rementforthis,noristhereanenforcementmechanism.Thetypicalprocessisforthememberbody to put in place a national advisory group or committee whoses t ru c t u remirrorstheinternationalcommitteestru c t u re,andwhosetask is to develop national positions. The national committees wouldthenincludemembersfromallareasofinterestandthememberschosenbythesenationalcommitteestobedelegatestotheinterna-tional meetings speak on behalf of the national committee and not asindividuals.Inpractice,somecountriesmakeasignificantefforttoensure this balance while others do not. The participation in interna-tionalcommitteesofmembersfromli ai songroupsre p re s e n t i n gspecial interests also helps to provide balance.Voluntary Standards and RegulationVoluntary environmental management systems standards are meant toassistcompaniesthatarecommittedtoresponsiblemanagementoftheir environmental issues. This commitment must exist throughoutthe organization but especially at the management level. For voluntarymeasures to work effectively and to become a living part of a corpo-rateorganizationtheremustbefullsupportfromtheleadership.Withoutthis,andwithoutthesortofexternalpre s s u rethatcomesfrom the enforcement of regulation, it is all too easy for middle man-agers to feel justified in giving lowerprioritytovoluntaryinitiativesand to starve them of the resources they need to succeed.Voluntaryenvironmentalmanagementalsoincludesmanagingcom-pliance with regulatory requirements. This overlap between voluntarys t a n d a rdsandregul ationsmeansthattheycannotbeconsideredasThe ISO does have adeveloping countrycommittee (DEVCO) thatattempts to support andfind funding for less affluentmembers to participate.14G L OB A L G R E E N S T A NDA R DS : mutuall yexc l u s i ve.Proponentsofvo l u n t a rystandardsarguethatp roperlydesigned,monitoredandenforcedtheycancomplement regulatorystandardsandachieveimportantpublicpolicyobjectives.Others argue that although it would seem logical to assume that vol-u n t a rystandardsmaycomplementre g u l a t o rystandards,theymayalsocompetewithorattempttoreplacere g u l a t o rystandards.Theconcern is that there will be a devolution of public authority to theprivate-sector.TheISO14000seriesprovidetoolsforusebyanorganizationinaccomplishing its goals. They are intended to be flexible, and there-fore of use in a wide variety of situations. They apply perhaps mostreadilytolargecompanieswhohaveaformalmanagementsystemalready in place, and the expertise and resources to add environmentalissues to that system. However, theprincipleshavebeendesi gnedtoappl yal sotosmal l erbusi nesses,andtonon-businessorganizationsofal l ki nds.Theymayal sobeappliedi nave rywi devarietyofecosystems and regulatory regimes.Thiswideapplicabilityispossiblesincethestandardsdonotspecifyt heenvi ronmental perf o r m a n c etargets an organization must meet.That i s,t hest andardset ti ngp rocessdoesnot set i t sel ft heimpossiblegoalofdefiningappro-priate performance standards for allecological, social and economic sit-uations.Rather,itsetsthegoalofcontinual improvement, and (of course) obeying the law. These stan-dards work with existing regulatory requirements and provide a wayto manage and monitor performance. The designers of ISO 14000 have often stated that they do not wishittobecomeamodelforregulationiti sexplicitlyavo l u n t a rysystem.ThisissuealsoarosewhentheEc o - ManagementandAu d i tScheme(EMAS)wasfirstproposedbytheEu ropeanUni on(seeChapter3).EMASwasinitiallydraftedasamandatorysystem,butindustry objected strongly. This resulted in EMAS being introducedasavo l u n t a rysystem.Thecurrentvo l u n t a rynatureofEMASis,however, subject to review. Despite the wishes of those involved in the... the standard settingprocess does not set itselfthe impossible goal ofdefining appropriateperformance standards forall ecological, social andeconomic situations.Rather, it sets the goal ofcontinual improvement,and (of course) obeyingthe law.d e velopmentoftheISO14000standards,howe ve r,therearethosewho feel that, as with EMAS, some governments may be inclined tolegislate compliance.There is some movement in this direction already in various parts ofthe world. In North America the more likely occurrence will be somesort of accommodation between regulators and companies who havevoluntarily chosen to implement the standards. A company that candemonstratethatithasawell-functioningEMSmayreceiveregula-tory enforcement relief so that governments can devote their enforce-mentre s o u rcestocompani esi nwhomtheyhavel essfai thwi threspecttolegal compliance.Thed e g reeoff a i t hwi lldependonthe credibility of the assurance pro-vided by the organization that hasi mpl ementedI SO14000.Howwill regulators view self-assessmentorself-declarationofcompliance?Anaudi tbyanexternal expertbringsanimportantdisciplinetotheassuranceofcompl i anceaslong as the appropriate checks andbalances are in place to ensure theaudi ti scredi bl e.I ftheauditi sslack or unprofessional, its value islost.Regulatorswillneedtodefinethecharacteristicsofanacceptableaudit process. If the audit does not meet their requirements, they willneedtobeabletointerveneappro p r i a t e l y.Inaddition,iftheaudititselfiscredible,andshowsunacceptableresults,interventionwillagain be necessary.A regulatory system that relies in part on ISO 14000 compliance willneed to have these provisions: Minimum performance standards in all applicable areas of cor-porate environmental impact. This presumably is the intent ofexisting regulations. Statement of the acceptable qualifications of auditors andacceptable procedures for audits. This might be based on therequirements of national standards certification and confor-mance bodies.15IS O1 4 0 0 0A ND S US T A I NA B L E D E V E L OP ME NTA company that candemonstrate that it has awell-functioning EMS mayreceive regulatoryenforcement relief so thatgovernments can devotetheir enforcement resourcesto companies in whom theyhave less faith with respectto legal compliance. Reporting requirements for audit results. This would alsorequire consideration of whether to make part or all of the audit results public. Timeliness requirements for both audits and reports, to ensurethat problems and gaps are reported without undue delay.Existing requirements to report on and deal quickly with contraventions to the regulations would presumably remain inplace. The right to intervene on the part of the regulators, and a legalprocess for intervening, if the company is not meeting therequirements. A definition of the criteria under which a company will be eligible for the ISO 14000 based regime, instead of the normalregulatory regime.Thus, ironically, in order to reduce regulatory burden and some gov-ernment expenditures, new regulations will be necessary. They will bei nadditionto,ratherthaninplaceof,theexi stingre g u l a t i o n s ,because the need for the government to intervene will always remain,and cannot be replaced by a voluntary system. The analogy with thecorporate income tax system is instructive. Companies are required tofilefinancialstatementsalongwiththeirself-declarationofincomeand tax payable. For large companies, those statements are indepen-dentlyaudited.Ne ve rtheless,theincometaxcol lectorsretainafullrange of powers to intervene directly with the company; powers thatare necessary in cases where the voluntary system breaks down.Fi n a l l y,itisimportanttorememberthatanysystemintroducedinparallel to the existing regulatory system will need to pass the test ofpublic acceptability. If the system is not credible with the public andstakeholder groups, it will be challenged loudly and probably success-fully.In general there has been a trend away from environmental regulationofthecommand-and-controltypetoregulationbasedoneconomici n s t rumentssuchaspollutionchargesandtradablepermits.Su c ha p p roachesre q u i redifferentsortsofinformationthanjustcompli-ance records in order to ensure that environmental goals are met. Inorder to ensure that the desired environmental outcome is achieved,the authorities will need to monitor all relevant factors. An EMS canbe designed so that it meets the information demands of the regula-tors in an efficient manner. 16G L OB A L G R E E N S T A NDA R DS : 17IS O1 4 0 0 0A ND S US T A I NA B L E D E V E L OP ME NTAdvantages and Challenges of Voluntary StandardsThe fact that these voluntary standards have been developed by con-sensusencouragescompaniestousethem.Theyaredevelopedbycommitteesofpeerstoimprovetheirownenvironmentalmanage-mentsystems,notbygovernmentsandimposed.Aprocessthatincludes industry may well produce more practical tools than a regu-l a t o ryprocess,especial lyifthecompaniesi nvo l vedi nthedesignimplementthesystemthemselves.Theinvo l vementbyotherinter-ested parties such as governments, NGOs, and corporate advisors likelawyers and accountants, contributes to a widely applicable product.A key aspect of the ISO 14000 standards is their international accept-ability. They will be available for use by enterprises all over the world,asthecommoninternationalapproachtoenvironmentalmanage-ment and verification of environmental performance claims. This cansimplifyinternati onaltradeandi nter-companypro c u rement.Fo rexample, a company that designs and markets clothing may wish toenter the market for environmentally friendly clothing. In order todo this, it must first define exactly what environmental goals will bemeti nordertoconvi ncecustomersthat theyshoul dbuytheseclothes. The company would probably look at any existing industryclaims, and do market survey work to define what customers want. Itwould then revise its own production processes to meet these goals,usinganISO14000compliantmanagementsystemtoimplementpolicies and procedures that will ensure that it meets its goals. It willalso demand that its suppliers comply with the same (or more rigor-ous)goals.ItisherethatISO14000canbeuniquelyusefulwiththe goals set, and the management system in place, the measurementandauditprovisionscanassurethattheenvironmentalclaimsarevalid at all stages of the production process. This is much more effi-cient than a system where the clothing manufacturer had to design itsown program audit to ensure compliance among its suppliers.Anoftenexpressedconcernisthatvo l u n t a rystandardsimplythel owestcommondenominator.Thisconcernhasbeenvoicedwithrespect to the ISO 14000 system. As with any document that emergesf romaconsensus-basedapproach,thisconcernisconstantlybeforethose sitting at the negotiating table. While the consensus process isdesigned to make it impossible for a single significant player to over-rule the wishes of the larger representative group, articulate and force-fulparticipantscanhavetremendousinfluenceoveracommittee.There is also a concern with how issues that have reached a stalemateare handled, since it is all too easy to remove the stalemate by remov-ingtheissue.Intheend,committeemembersmustbalancetheirinterest in having a standard be as demanding as possible with theirinterest in having the standard widely adopted and therefore useful.Making a voluntary standard so demanding that it is unlikely to beadopted will cause it to be of little or no use.Intheend,theuseofacommoninternationalapproachhelpstolevel the playing field. This should simplify business for investors,lendersandinsurersallowingthemtobetterservetheircustomers.This should also be true for regulators, as they increasingly pay atten-tion to the international implications of national or local decisions. Advantages of Voluntary Standards and Guidelines They are developed on the basis of consensus They are flexible and w idely applicable They are voluntary, discretionary, and proactive They m ay reduce conflict betw een the regulator and industry They m ay encourage others to im prove their level of perform ance They m ay be a pow erful incentive to trigger change Their related certification program s provide regulators w ith a level of confidence in an organizations perform ance, allow ing scarce inspectionresources to be applied to other com panies They prom ote harm onization and are therefore understood and accepted byexternal stakeholders (banks, insurance com panies, stockholders, regulators) They help to create a level playing field They encourage em ployee com m itm ent to environm ental responsibilityChallenges Faced by Voluntary Standards and Guidelines C oncern that they im ply a devolution of governm ent responsibility C oncern that voluntary im plies low est com m on denom inator C oncern that they can be ignored C oncern that certification schem es be credible, unbiased and w idely recognized C oncern over the inclusiveness of the processhave developing countries,sm all organizations and special interest groups been m eaningfully involved?18G L OB A L G R E E N S T A NDA R DS : 19IS O1 4 0 0 0A ND S US T A I NA B L E D E V E L OP ME NTC hapter 3 ISO14000 and G lobal TrendsISO 14000 and Global TrendsThe global pressures and trends that have resulted in the developmentofISO14000havealsohadmanyotherimpacts.Thischapterdis-cussesthesepre s s u res,andsomeofthevariousresponsesthathavecome forward. The concept of sustainable development manifests a growing realiza-tion that humanity must change its ways if it is to survive and prosperin this world. This realization has been building for years, but it wascrystallized for many people by the 1987 book Our Common Future,the report of the United Nations Commission on Environment andDevelopment, commonly called the Brundtland Commission.Our Common Fu t u recalledforanewdevelopmentpath,whichitlabeledsustainabledevelopment.Itshowedhowpresenttrendsareboth degrading the environment and leaving more and more peoplepoor and vulnerable. It asked the question, How can such develop-ment serve the next centurys world of twice as many people relyingon the same environment?4Our Common Futurebecame the basis of a series of global conferenceson the vital issues of sustainable development, the first of which wastheRiodeJaneiroEarthSummit,heldin1992.Thishasbeenfol-l owedbyconferenceson(amongotherthings)biodive r s i t y,popula-tion, social development, human settlements, climate change, and soon.Theseareinter-governmental conferences,aimedatre a c h i n gagreement on steps that nations should take both together and indi-vidually to address the problems in the topic area.At the same time, international agreements have been negotiated on anumber of specific environmental issues. These include the MontrealProt ocol ,of 1987,onozonedepl et i ngchemi cal s;theBasel4World Commission on Environment and Development. 1987. Our CommonFuture. Oxford, p. 4.20G L OB A L G R E E N S T A NDA R DS : C o n vention,of1989,ontransboundarymovementofhazard o u swastes; the Framework Convention on Climate Change, of 1992; andthe Convention on Biological Diversity, also of 1992.All of this inter-governmental activity amounts to the creation of newsets of regulations aimed at reducing environmental pressures on theplanet. Many of these measures have real impacts on companies, bothby constraining their actions and by creating opportunities for prof-itable business.While individuals were pressing their governments to act, people werealsochangingthei rownconsumptionhabits.Substantialmark e t shave developed for green products, once again creating both chal-lenges and opportunities for business.Companies have responded to this rapid change in a variety of ways,as they attempt to meet their customers demands, comply with regu-latory requirements, increase efficiency, and seek out new opportuni-ties.ISO14000isoneoftheseresponses.Whil eitmaynothaveformal links to all of the processes and initiatives mentioned above, itfitsintothesamecontextandresultsfromthesameunderl ying pressures. Here we will consider two aspects in particular: the impli-cations of ISO 14000 for developing nations and the relevance to thenew World Trade Organization, which came into being as a result ofthe GATT Uruguay Round of negotiations.Voluntary Standards and the Developing WorldThe implications of the ISO 14000 series are important in both thedeveloped and developing world. Some special steps may have to betakentoensurethatnewstandardsforenvironmentalmanagementand sustainability do not reduce the opportunities of the developingworld to trade with industrialized countries.Businessand industry, includingtransitional corporations,should recognizeenvironmental management asamongthehighest corporateprioritiesand asa key determinant to sustain-abledevelopment. Someenlightened leadersof enterprisesarealready implementingresponsible careand product stewardshippoliciesand programs, fosteringopennessand dialoguewithemployeesand thepublic and carryingout environmental auditsand assessmentsof compliance. Theseleadersin businessandindustry, includingtransitional corporations, areincreasingly21IS O1 4 0 0 0A ND S US T A I NA B L E D E V E L OP ME NTtakingvoluntary initiatives, promotingand implementingself-regulationsand greater responsibilitiesin ensuringtheir activitieshaveminimal impactson human health and theenvironment.Source: UNCED, Agenda 21, (1993).While the ISO 14000 standards will have important implications fordeveloping countries, they find it difficult to participate in the devel-opment of the standards to the degree that the potential impact of thestandards would suggest. The standards development process involvesalargenumberofinternationalmeetings,operatinginaglobalandfairly decentralized way. If a country is not represented at all of thesub-committeeandworkinggroupmeetings,itisdifficulttoinflu-ence the process. While the travel costs may be a deterrent, an evengreater one is the need to devote the time and effort of several peopleto becoming expert in the issues, and to developing national positionsthat will serve the countrys needs and have an impact on the process.This makes it difficult for the standards to fully reflect the needs ofthe developing world or its commercial realities.From the viewpoint of developing countries, the evolution of the ISO14000 series is akin to a set of international trade negotiations. Theresults might have a significant impact on the countrys trade and pro-ductionprocesses,theyaremultilateral,andtheycoverarangeofissuesthatre q u i reclosestudyandinvo l vementtobefullyunder-stood.Thefactthatthenegotiationsareaboutvo l u n t a rystandard sdoes not reduce the importance of the potential trade impact.The rate of the development of the ISO 14000 series has been veryrapid. The normal checks and balances of multilateral, inter-govern-mental negotiations are replaced by the ISO processes. While the ISOp rocessisrigorous,itismovingmuchmorequicklythannormaltrade negotiations. As a result, the need to devote substantial effort tokeep up with and contribute to the process is increased.A further challenge developing countries will face is the need to buildtheinstitutionalinfrastru c t u renecessarytoservetheneedsoftheircorporate citizens. Implementing ISO 14000 will require a sophisti-cated system of training and auditing, which will not be put in placequickly. If a country cannot put in place its own infrastructure it willlikelybeexpensivetobuytheneededservicesontheinternationalmarket.Organizationsindevelopingcountriesarealsoconcernedhowtheywil ldefinethepolicies,objectivesandtargetsneededwhenimple-22G L OB A L G R E E N S T A NDA R DS : mentingtheISO14000environmentalmanagementsystem.Ind e velopedcountrieswithexperiencedandactivere g u l a t o rysystemsand well-understood notions of best or acceptable practice, an organi-zation should be able to formulate its policies, objectives and targetsinanacceptablewaywithoutunduedifficulty.Indevelopingcoun-trieswithoutfullydevelopedre g u l a t o ryandbusinessstandardsinplacethismaybemoredifficult.ImplementinganEMSmaytakeconsiderably more time and effort. Alternatively, the value of imple-mentation may be challenged because of weak or inappropriate per-formancepoliciesobjectivesandtargets.Ontheothersideoftheargument, with appropriate internationals u p p o rtandinvestment,thenewstan-d a rdsmayprovideatremendousincen-tive to strengthen developing world insti-tutions.Fi n a l l y,i fI SO14000doesbecomei m p o rtanttoworldcommerce,andafactor in defining competitive advantage,count ri esandcompani est hatbestunderstand it and can work within it willbe better positioned to increase trade andmarket access. So the incentives for suc-cessful implementation are great.Becauseoftheseimportantimplicationsfordevelopingcountries,theircapacitytocontributetotheinternationalstan-d a rdsprocessshoul dbeasubj ectofconcern to development agencies. There should be programs to fundthedevelopmentofexpertise,theanalysisofpositions,andatten-danceatmeetings.Thiscapacity-buildingshouldbeaimedatboththe government and the corporate sectors. In addition, the develop-mentoftheinternalcapacitytotrainandcertifyauditors,andthecapacity to provide them with the tools they need, will be critical.If ISO 14000 doesbecome important toworld commerce, anda factor in definingcompetitiveadvantage, countriesand companies thatbest understand it andcan work within it willbe better positioned toincrease trade andmarket access.Issues for Developing Countries: Results of a UNIDOExpert Group MeetingThe problem of spreading knowledge and understandingof the standards: In this context it was important to focus on how the principlesunderlying the standards were communicated i.e. mandatoryvs. voluntary application of the standards. It was also impor-tanttoclearlyestablishthecause-effectrelationshipsinactualbusiness operations, i.e. that the implementation of quality ande n v i ronmental managementsystemswe reintendedtobethemotivating force behind the standards as opposed to mere certi-fication. In all this the particular situation and vulnerability ofsmall and medium sized enterprises (SMEs) needed to be keptsquarely under consideration.There was a clearly expressed concern over the lack of expertiseat all levels, be they recognized accreditation bodies, auditors orconsultants on quality management and environmental manage-ment. This expertise was crucial to the process of implementingstandards and tracking implementation.T h e rewasal ackofphysi cal infrastru c t u re,rangi ngfro mm e t rologyfaci lities,cali brationcapabil ities,laboratoriesanda c c reditati onstru c t u res,whichinhibitedthepropagationofe n v i ronmentalandqualitymanagementsystems.He re,give nthecostsandtherangeoffacilitiesre q u i red,regionalinstitu-tionsandregional networksmayprovideafruitfulbasisfordeveloping the requisite technical infrastructure.Internationally, there was a need to support mutual recognitionofaccreditationbodi esandcerti fi cationschemes.Te c h n i c a lcompetence was considered a key to the recognition of accredi-tati onandcertificationbodies,andinordertodemonstratecompli ancewi thpertinentinternationalguideli nes.Forthisreason,ifnoother,developingcountriesneededtopart i c i p a t efully in bodies such as ISO/CASCO to exert their influence inthe formulation of guidelines in this area.En v i ronment al l abel i ngschemes,at t hi spoi nt ,we re consideredasbeingmoreseriousnon-tariffbarriersthanenvi-ronmentalmanagementsystemsstandards.Se veralquestions23IS O1 4 0 0 0A ND S US T A I NA B L E D E V E L OP ME NTremained unresolved on these schemes. Often, the very criteriaon which such schemes were established were open to question,and there was little agreement on the scientific basis on whichcommon criteria could evolve. Here again, developing countriesneeded to exert the fullest possible influence on the process offormulating international technical criteria.Fi n a l l y,whilethestandardsandschemesbeingdiscussedwe revo l u n t a ryinnature,therewasaneedfordevelopingcountrygovernments to lend their weight to, or take initiatives on, suchaspects as the accreditation infrastructure, and special support toSMEs. Without their support, the fear was that there would beno change, and the situation would result in lost opportunities,at best, or diminished industrial competitiveness, at worst.Source: United NationsIndustrial Development OrganizationReport on an Expert Group Meetingon thePotential EffectsofISO 9000 and ISO 14000 Seriesand Environmental Labelingon theTradeof DevelopingCountries. Vienna, 23-25 October,1995.Voluntary Standards and the GATT/ WTOBecause ISO 14000 is directed, at least in part, at smoothing the wayforinternationaltrade,itisnaturaltoaskhowitwillrelatetotheWorld Trade Organization and the agreements that resulted from theUruguayRoundoftradenegotiations.Theconcernthatdifferings t a n d a rdsofenvironmentalmanagementorcodesofpracticemaycreate non-tariff barriers to trade has led to a great deal of interest inharmonization. In the context of the WTO agreements, two issues arise with respectto ISO 14000. The first of these is the extent to which ISO 14000interacts with, or is affected by, the WTO agreements. The primarya reaforregulati onbytheWTOisthatofgovernmentactiviti es.Fu n d a m e n t a l l y,thegoalofinternat ionaltradeagreementsistore q u i rethatimportsbetreatedthesameasdomesticallypro d u c e dgoodsandservices(nationaltreatment),andtopre ventdiscrimina-tionbygovernmentsagainstthepurchaseofgoodsorservicesfor specific countries (non-discrimination). The ISO 14000 standards aredesignedasstandardsforcorporations,notcountries.There f o re ,unlessthegovernmentofacountryre q u i resitsimporterstoadopt24G L OB A L G R E E N S T A NDA R DS : 25IS O1 4 0 0 0A ND S US T A I NA B L E D E V E L OP ME NTISO 14000, the question of whether companies adopt it or not willnot really be a question of interest under the WTO rules.Twocomponent sof theWTOagreement sarere l e vant :t heAgreement on Technical Business to Trade (TBT), and the Code ofGoodPractice.TheTBTAgreementcoversanysortofre s t r i c t i o nplaced on imports or exports based on product standards and techni-cal regulations, and describes how such restrictions must be prepared,adopt edandappl i ed.Techni cal regul ati onsmandatethatt hep ro d u c tscharacteristics(ortheprocessandproductionmethods,ifthey affect the final products characteristics) must meet some require-ment.Atechnicalregulationmightre q u i re,forexample,thatallimported automobiles must be equipped with catalytic converters, orthataproductmustbelabeledinacertainway,ormustundergoc e rtaintestsbeforeenteringthecountry.St a n d a rdsarenon-manda-tory descriptions of a products characteristics (or of the process andp roductionmethods),specifi edbyare c o g n i zedbody,suchasanati onalstandard-sett i ngbody,orani nternati onal agre e m e n t .St a n d a rdsmaybethebasisfornational-leveltechnicalre g u l a t i o n s .Eco-labels, discussed below, are considered to be standards.TheCodeofGoodPracticeforthePreparation,AdaptationandApplication of Standards is Annex III to the TBT agreement. It dealswithnon-mandatorystandards,andurgesthatcountriesbringtheirnationalstandardizingbodiesintocompliancewi ththeCode.Itextendsthenationaltreatmentandnon-discriminationprinciplesofthe GATT to voluntary standards, and says that standards should beprepared in a way that is open and transparent, and open to input bythose affected.ISO 14000 has been designed primarily to be of use to companies intheirrelationswiththeirsuppli ersandtheircustomers.WhethercompanieschoosetouseISO14000ornotisabusinessdecision,basedonthenormalbusinesscriteria.TheWTOrulesdonotdealwith these issues, except through the encouragement in the Code ofGood Practice.Finally, ISO 14000 deals with management systems. The specific per-formance goals that companies will set, are not included in the ISO14000re q u i rements.Theperformancere q u i rementswillalsobeabusinessdecisionforthecompany,andonceagainnotwithinthepurview of the WTO rules. This is a very different situation than if ag overnmentsetsperformancegoalsforproductsimportedintoitscountry, in which case the normal WTO rules of national treatmentand non-discrimination will apply.26G L OB A L G R E E N S T A NDA R DS : Theconclusionisthatthereisnotmuchlikelihoodofaconflictb e t weenthere q u i rementsofISO14000andthere q u i rementsofinternationaltradelawasimplementedbytheWTOagre e m e n t s .This is not to say, of course, that ISO 14000 is irrelevant to interna-tional trade. Indeed, it is designed primarily to assist the flow of trade.However, it must be said that no cases have yet been brought beforetheWTO regarding these issues, and therefore this interpretation ispreliminary. As jurisprudence develops, new issues may emerge.ThesecondissueraisedbytheWTOagreementsandISO14000concerns eco-labeling. Here, there is the possibility for an eco-label tobecome an informal or even formal requirement for selling a productin a country. If this is the case, as is discussed further in Chapter 6,the eco-label then becomes something of a technical barrier to tradeandtheWTOrulesmightbere l e vant.There-launchedTradeandEnvironment Committee of the WTO is watching the environmentallabeling standards closely. Their concern centres on the relationshipb e t weenenvironmental productlabelsandproductionandpro c e s smethods.TheGATTre q u i resthatproductsbetreatedasequalforpurposesoftradeiftheirattributesareequal.Nodiscriminationisa l l owedbasedontheproductionandprocessmethodsusedinthemanufacture of the product according to the most widely held inter-pretation of the rules. Eco-labelingre q u i rements,sincetheyareoftenbasedonlifecyc l eassessmentmethods,dohavethepotentialtoentertheareaofpro-duction and process methods. If eco-labels are used to restrict marketaccess then there is every likelihood that they will be challenged. Thisis because a government requirement for eco labels as a condition ofgovernment procurement or of importation, would create a technicalbarriertotrade,andwouldbenodifferentfromthegove r n m e n tsettingatechnicalregulation.Anysuchregulationsshouldbechal-lenged under the WTO rules.The question here is as much for the WTO as for the ISO labelings t a n d a rds.En v i ronmental i mprovementgai nsaremadel argel ythrough process changes. How then can you write eco-labeling stan-d a rdswithoutaddressi ngproducti onprocessesandmethods?AWTOsecretariatpaperpre p a redfortheCommitteeonTradeandEnvironment does argue that the TBT was meant to cover standardsbased on process and production methods, but there is as yet no con-sensus among the members of this question.C hapter 4 TC207 and ISO14000How it StartedTherecentinterestinvo l u n t a rymanagementsystemstandardshass e veralrelatedorigins.First,theBusinessCouncilforSu s t a i n a b l eDe velopmentwasi nstrumental inpromotingindustry - c o n s e n s u sstandards as a means to improve environmental performance and inbringing this concern to the attention of the international standardsd e velopmentbodies.Second,managementandtechnicalstandard swere discussed in preparatory meetings for the 1992 Earth Summit,Uni tedNati onsConferenceonEn v i ronmentandDe ve l o p m e n t(UNCED) in Rio de Janeiro. Third, voluntary standards were delib-erated at the Uruguay Round of the GATT. Fourth, individual com-panies, frustrated at having to deal internationally where there are nos t a n d a rds,andincreasinglyaffectedbypre s s u refromgove r n m e n t s ,e n v i ronmentalandconsumergroups,areseekingstandardsasameans of conformity to an accepted norm. The response of the ISO and IEC (the International ElectrotechnicalCommission) was to jointly establish an adhoc group, the StrategicAdvisoryGroup on the Environment (SAGE) in June of 1991. TheSAGE deliberations lasted until December 1992 at which time theysubmittedtheirre p o rtandrecommendationstotheISOandtheIEC.SAGErecommendedthattheISOestablishanewtechnicalcommittee to develop standards in the areas of:Environmental Management Systems (EMS) Environmental Auditing (EA) Environmental Performance Evaluation (EPE)Life Cycle Analysis (LCA)Environmental Labeling (EL)Terms and Definitions (T&D)Environmental Aspects of Product Standards (EAPS)27IS O1 4 0 0 0A ND S US T A I NA B L E D E V E L OP ME NTIn January of 1993 the ISO Technical Management board approvedthe SAGE recommendations and established a new technical commit-tee, TC 207 (see Appendix 1), to manage the development of thesestandards. In March of 1993 the management of the TC 207 secre-t ari atwasawardedtotheSt a n d a rdsCounci l ofCanada.TheCanadian Standards Association took on the task of administering thesecretariat on behalf of the Council. In June, 1993 the first plenarymeet ingofthenewtechni cal commi tteewashel di nTo ro n t o ,Canada.The Scope of TC 207The new technical committee was given the following mandate by theTechnical Management Board.Title: Environm ental M anagem entScope: Standardization in the field of environm ental m anagem ent tools andsystem sExcluded: Test m ethodsSetting lim it valuesSetting perform ance levelsStandardization of productsN ote: TC207 w ill have close cooperation w ith TC176 in the fields of m an-agem ent system s and audits. (TC176 is responsible for the ISO9000series of quality m anagem ent systemstandards.)At its first meeting in Toronto, TC 207, based on the recommenda-tionsofSAGE,establishedsixsubcommitteesandaworkinggro u pwith secretariats based in different countries (noted in parenthesis):SC1 Environmental Management Systems (UK)SC2 Environmental Auditing (Netherlands)SC3 Environmental Labeling (Australia)SC4 Environmental Performance Evaluation (USA)SC5 Life Cycle Analysis (France/Germany)SC6 Terms and Definitions (Norway)WG1 Environmental Aspects of Product Standards (Germany)28G L OB A L G R E E N S T A NDA R DS : Each of the subcommittees in turn established a number of workinggroups to undertake specific projects:SC1/WG1 EMS SpecificationSC1/WG2 EMS GuidanceSC2/WG1 EA PrinciplesSC2/WG2 EA ProceduresSC2/WG3 Auditor Qualification CriteriaSC2/WG4 Site AssessmentsSC3/WG1 General Principles for Practitioner ProgramsSC3/WG2 Self-declaration ClaimsSC3/WG3 Guiding Principl es for En v i ronmental Labeling Pro g r a m sSC4/WG1 EPE for Management SystemsSC4/WG2 EPE for Operational SystemsSC5/WG1 General Principles and ProceduresSC5/WG2 Inventory Analysis (General)SC5/WG3 Inventory Analysis (Specific)SC5/WG4 Impact AnalysisSC5/WG5 Improvement AnalysisSC6 has no working groups.The standards being developed by TC 207 can be categorized as thosethat are organizational and those that are product related.ISO 14000 Organizational StandardsEnvironmental Management Systems (EMS)The EMS subcommittee has developed specification and a guidancedocument. The specification document is designed for organizationsinterestedincertificationorregistration.Theguidancedocumentisnot intended for registration purposes. In both cases, the approach isto enable an organization to integrate an EMS into its existing man-agementsystem.Bydevelopinganenvironmentalpolicyandobjec-29IS O1 4 0 0 0A ND S US T A I NA B L E D E V E L OP ME NTtives, an organization will be able to assess its environmental perfor-mance with audits and the application of other environmental man-agementtoolsandstandards.ThetwoEMSdocumentsstressthat significant commitments from the highest levels of management andthroughout the organization are essential.ThespecificationdocumentISO14001,isbasedonBS7750andEMAS,(di scussedi nmoredetail furtheron.)Itdetail sthecorerequirements of an EMS that, when implemented, will allow an orga-nizationtoidentifyandmanageitsenvironmentalre s p o n s i b i l i t i e s .These requirements are used as the basis for certification or registra-tionaudits.Thespecificationindicatesthatitisapplicabletoanyorganization which desires to: Implement an EMS Assure itself of its conformance with a stated environmentalpolicy Demonstrate such conformance to others Seek certification/registration of its EMS by an external organi-zation Make a self-determination and declaration of conformance withthe standardTheEMSguidelinedocumenttakestheCanadiandocument,CSAZ750 A Voluntary Environmental Management System, as its point ofd e p a rt u re.Itprovidesinformationontherationale,benefits,andscope of the EMS. The document discusses five key principles of anEMSmodelbasedoncontinuali mprovement:commitmentandpolicy, planning, implementation, measurement and evaluation, andreview and improvement. Environmental Auditing (EA)En v i ronmentalauditinghasbeenaquicklygrowingfieldforsometime.Howe ve r,thereislittlecommonalityofunderstanding.Mo s te n v i ronmentala u d i t sundertakesometypeofassessmentofenvi-ronmentalre g u l a t o rycompliance,environmentalperformance,duediligence or real or potential liabilities associated with a site or struc-ture. Until recently, few have dealt with management practices.Tobegintobringsomeclaritytothisfield,oneofthefirsttasksb e f o retheEAsubcommitteewastodefinethedifferencebetwe e n30G L OB A L G R E E N S T A NDA R DS : 31IS O1 4 0 0 0A ND S US T A I NA B L E D E V E L OP ME NTaudits,assessments,re v i ewsandothertypesofinvestigations.Anauditisdefinedasasystematic,documented,verificationprocessofo b j e c t i velyobtainingandevaluatingevidencetodeterminewhetherthe specified information about the subject matter conforms with theaudit criteria. In other words, an audit is not the search for new infor-mation but the verification of claims based on the information avail-able to support the claims. It was further determined that the priorityissuestobetackledwe retheauditoftheEMS.Anyworkonsiteassessments or performance/compliance audits would come later.The audit subcommittee, therefore, began work on three documents:anenvironmentalauditprinciplesdocument;anEMSauditpro c e-d u redocument;andanenvironmentalauditorqualificationsdocu-ment. The principles document, ISO 14010, considers issues such asobjectivity, independence and competence; due professional care; sys-tematic procedures; audit criteria, evidence and findings; and the reli-abil i t yofaudi tfi ndi ngsandconcl usi ons.Thesepri nci pl esarecommontoalltypesofenvironmentalaudits.TheEMSpro c e d u redocument,ISO14011,wasdesignedtoprovidethebasisforplan-ning and performing an audit to determine conformance with EMSauditcriteria.Itconsiderstheresponsibilitiesofthevariouspart i e sincluding the client, the auditee and auditor. It defines the process forscoping, planning, executing and completing the audit. The auditorqualificationcriteriadocument,ISO14012stipulatesthecriteriaintermsofeducation,workexperience,formaltrainingandpersonalattributes and skills. Ati tsJune1996meeti ngi nRi odeJa n e i ro,thesubcommi tteedecided not to pursue any work on environmental compliance auditsor audits of environmental statements. Work is underway to prepare ajustification to proceed with the development of a guideline for envi-ronmental site assessments. Environmental Performance Evaluation (EPE)The methods for measuring actual environmental performance is thefocusofthissub-committee.Inevaluatinghowbusinessesapproache n v i ronmentalperformance,twodifferentelementsareoftentakenintoconsideration:operationsandmanagement.Companyopera-tionsviewtheperformanceatindividualsitestodeterminewhichre s o u rcesarebeingusedandtheirresultingproducts,by p ro d u c t s ,emissions and waste. The management system sets goals and suppliesresources needed to achieve these goals.32G L OB A L G R E E N S T A NDA R DS : SC4 is developing a systematic approach to evaluating environmentalperformance within this context. EPE must also take into considera-tion the need for environmental performance indicators (EPIs). A sys-tematic approach to the development of credible, usable EPIs is alsove ryi mportant.Inadditi on,agoodEPEsystemmayprovi deacommon framework for credible environmental performance reporting.ISO 14000 Product Related StandardsEnvironmental Labeling (EL)Regrettably, environmental claims on product labels are often vague,trivial, unsubstantiated, meaningless, ambiguous, or completely mis-leading. Inaccurate product labels can promote cynicism about manu-f a c t u re rsclaims:theyareseentohavemore to do with short term profit takingthan environmental benefits. The first task before the EL subcommit-teewastocategorizethedifferenttypesof labels. Once this was done they couldbegintodevelopsomecommonstan-d a rds.Theybeganbyidentifyingthre ed i f f e rentcategories:TypeI,practitionerp rograms;TypeI I ,sel f -decl arat i onclaims, Type III, and quantified productinformation(QPI)orre p o rtcardpro-grams. They began work on the first twocategories as well as on a set of principlesforal ltypesofenvi ronmental l abel s.Ori gi nallytheseprincipleswe retobed e velopedtogiveguidancetothecom-mitteemembersonly.Howe ve r,itsoonbecameevi dentt hatt heyshoul dbedeveloped as a separate public document. Work on Type III or reportcard labeling programs began in late 1995.TypeIl abel ingprogramsarethesortwithwhichmostpeoplearefamiliar. They provide criteria against which a product is evaluated. Iftheproductpassesitearnsthel abel .Theseprogramsareusuall ydesignedsuchthatonlythetop10or15percentofproductswillqualify. There are currently close to 30 of these programs around theworld,programssuchasEn v i ronmentalChoiceinCanadaorBl u eFor many peopleinterested inpurchasing lessharmful products, thelack of reliableinformation onproduct labelsundermines theirconfidence in amanufacturersincentive to seekfurther productimprovements.33IS O1 4 0 0 0A ND S US T A I NA B L E D E V E L OP ME NTAngel in Germany. The subcommittee is not trying to harmonize allof these existing product criteria standards, rather it is attempting todevelop the ground rules for designing and running such a programso that the different programs may be recognized or agree to mutuallyaccept each others labels.Type II labeling is based on common terms, definitions and symbols.If self-declarations are made using the common terms, definitions, orsymbols then there is some confidence in what they mean and in theiraccuracy. A process is also being developed for the verification of theseclaims. TypeIIIlabels,likenutritionallabels,provideinformationonasetseriesofconsiderations.LikeTypeIIlabel stheyprovideconsumerinformation and do not indicate that the product has passed a certainset of criteria. All of these types of environmental labels may make use of life cycleassessment practices.Life Cycle Analysis (LCA)Byre v i ewingexistingapproachestoLCA,thissub-committeewillprovide guidance on how to assess the environmental burden of prod-ucts.Theseincludematerialandenergyuse,productionpro c e s s e s ,distributi onmethods,re c ycli ng,andwaste disposal options. LCA is a holis-tic and scientific approach for evaluat-ingtheenvironmentalimpactassoci-ated with a process, product, or activ-ity. The assessment can be consideredi nfourstages:i niti ation;i nve n t o ryanalysis; impact analysis; and interpre-tation or improvement analysis. Thesub-committee,SC5,isdeve l o p-ingfourdocuments,oneoneachofthe four phases mentioned above. Thefirstdocumentalsoincludesasetofprinciples for conducting an LCA....the environmentalburden of products.These include materialand energy use,production processes,distribution methods,recycling, and wastedisposal options.34G L OB A L G R E E N S T A NDA R DS : Environmental Aspects of Product Standards (EAPS)Si ncei t maynotdevel oppro d u c tstandards, TC 207 created a workinggroup to prepare a guide on the envi-ronmentalaspectsofproductstan-dards (EAPS) to be used by those whowill be developing product standards.This is a key long range issue, in thatit deals with product standards them-s e l ves,rat hert hanmanagementsystems.Overtime,therevi si onofproduct standards has the potential tohave a significant impact on environ-mental performance. Terms and DefinitionsItisthetaskofSC6toensurethattherearecommondefinitionsa c rossallofthecommitteesandworkinggroupsofTC207.SC6doesnotwritethedefinitions,ratheritensuresthatthedefinitionsbei ngdevelopedarecoordinated.Se veralinstanceshaveoccurre dwhere two groups have developed definitions for the same term. SC 6identifies these disharmonies, brings them to the attention of the dif-ferent committees and if requested will help to facilitate their harmo-nization. SC6 will eventually publish a listing of the common termsand definitions for TC 207. Related InitiativesT h reeotherinitiativeshaveplayedasignificantroleinhelpingtoshapet heI SO14000seri es:theBri ti shSt a n d a rds,(BS)7750Specification for Environmental Management Systems, the EuropeanUnions Eco-Management and Audit Scheme (EMAS), and the CSAEnvironmental Management Program.BS 7750: Specification for Environmental Management SystemsTheBri ti shSt a n d a rdsInsti tute(BSI )publi shedadraftBr i t i s hSt a n d a rd,BS7750SpecificationforEn v i ronmentalMa n a g e m e n tSystems, in March 1992. A second edition was published in 1994. ItisaspecificationforanEMSratherthanaguidancedocument.ItThe assessment can beconsidered in fourstages: initiation;inventory analysis;impact analysis; andinterpretation orimprovement analysis.p rovidesdetailsabouthowanorganizationcanensurecompliancewith its chosen environmental policies and objectives. It also providesguidance on how to implement an EMS.The BS 7750 EMS specification is designed to improve the environ-mentalperformanceofalltypesandsizesoforganizationsandisunderpinned by a systematic and integrated managerial approach, thecreation of corporate environmental policy and objectives, and by thekeyconceptofenvironmentalauditing.(BS7750sharescommonmanagementsystemprincipleswiththeBS5750specificationforquality management systems; though the latter is not an operationalprerequisite).The specification provides details on the following requirements: theenvironmentalmanagementsystem;environmentalpolicy;organiza-tionandpersonnel;environmentaleffects;environmentalobjective sandtargets;onenvironmentalmanagementprogram;operationalcontrol; environmental management records; environmental manage-ment audits; environmental management reviews. It was designed tobecompatiblewiththeEUEc o - ManagementandAuditScheme(EMAS),avo l u n t a ryregulationwhichcameintoeffecti nAp r i l ,1995.The requirement for an environmental effects register, that is, a list ofthe significant environmental effects, direct and indirect, of the activi -ties, products, and services of the organization is a major objective ofthespecification.Theseeffects includeregistering the significant effects of emis-sionstotheatmosphere,discharges towater, solid and other wastes, land cont-amination, and resource use.TheBS7750doesnotdefineorsetspecificenvi ronmentalperf o r m a n c ecriteria,objectives,indicators,targets,or timetables for a business or organi-zation. The single level of performancespecifiedistomeetthere q u i re m e n t sof the standard. After its release, the draft specificationwasexami nedi naspeci al st udyi n volvingover450organizationsand 35IS O1 4 0 0 0A ND S US T A I NA B L E D E V E L OP ME NTThe BS 7750 does notdefine or set specificenvironmentalperformance criteria,objectives, indicators,targets, or timetables fora business ororganization. The singlelevel of performancespecified is to meet therequirements of thestandard. 38 different industry sectors. Although many have reacted favorably,some reservations have been expressed about the ability of small andmediumenterprises(SMEs)toadoptBS7750.Ac c o rdingtothe(British) Federation of Small Businesses these reservations arise fromexperi encei ni mpl ementi ngt heBS5750qual i t ymanagementsystemsspecificationandincludeclaimsofdispro p o rtionatelyhighimplementation and registration costs. Some businesses are unhappywith the quasi-mandatory aspect of registration. They dislike industrypressure to conform to a standard and they fear being excluded fromtenderlistswhereregistrationisqualificationcriteria.Despitetheseconcerns, it was generally argued that the benefits of registration out-weigh costs.British Standards 7750 was a major influence on the development oftheISO14001specificationdocument.Howe ve r,accordingtotheterms of the Vienna Agreement (an agreement between the EuropeanUnionandtheISO)ifanISOdocumentisratifiedbytheUn i o nthen all competing National standards must be withdrawn. The EUhas now agreed to accept ISO 14001, so it will supersede BS 7750 byMarch 1997. The European Eco-Management and Audit Scheme (EMAS) Environmental initiatives in the European Union (EU) are guided byspeci fi cact i onpl ans.Themost recentprogram,t heFi f t hEnvironmental Action Program of 1992, is based on the concept ofsustainabledevelopmentandisfundamentallypro a c t i ve.Itissup-portedbyArticle130R,paragraph2oftheSingleEuropeanActof1987 which states:Action by theCommunity relatingto theenvironment shall bebased on theprinciplesthat preventativeaction should betaken,that environmental damageshould asa priority berectified atsource, and that thepolluter should pay. Environmental protec-tion requirementsshall bea component of theCommunitysother policies.TheFi ft hEn v i ronment al Act i onProgrami ncl udest heEc o -ManagementandAuditScheme(EMAS)toencouragethepriva t e -sector to improve its environmental performance. EMAS was adoptedJune 29, 1993 by the EC Council of Ministers as a regulation effec-tive April, 1995. All 12 member states are obliged to implement theregulation although it will remain voluntary as far as industry is con-36G L OB A L G R E E N S T A NDA R DS : cerned.Eachmemberstatemustdesignateanindependentnationalauthoritytooverseetheregulationwithin21monthsofitscominginto force.RegistrationtoEMASissitespecific.Thismeansthatacompanycannotregisteronbehalfofitssubsidiaries.TheEMASre g u l a t i o nrequires: Company adoption of an environmental policy Policy commitment to continuous5improvement Definition and implementation of environmental program andenvironmental management system Procedures for monitoring and verifying compliance Environmental audits at the sites concerned Preparation of a periodic site based Environmental Statement Independent verification of Environmental Statement Public access to verified statement Quantified improvement targets set at the highest managementlevelOneofthemajordifferencesbetweenEMASandBS7750istherequirement for an Environmental Statement that would have to bep re p a redforeve rysi t epart i ci pat i ngi nt hescheme.TheEnvironmental Statement should: Describe company activities at each participating site Assess all the significant environmental issues Summarize figures on pollutant emissions, waste generation, consumption of raw materials, energy and water, noise, andother significant data Consider other factors concerning environmental performance State the companys environmental policy, and describe itsprogram and management systems Emphasize significant changes since the previous statement Give details of the deadline for the submission of the next state-ment Identify accredited environmental verifier5Referred to as continual improvement in ISO deliberations.37IS O1 4 0 0 0A ND S US T A I NA B L E D E V E L OP ME NTTheEUsstandardizationbody,theComitEu ropendesNo r m e s(CEN) was directed by the European Council to develop standards tomeet the needs of EMAS. CEN created an environmental standard-ization Programming Committee (PC7) in the following areas: Environmental measurement standards Measurement methods for environmental properties of chemical substances and chemical products Pollution control methods and equipment Environmental management tools Methods for evaluation of environmental effects of products General aspects (terminology, symbols, definitions)The Programming Committee, PC 7, agreed that it would not dupli-cate the work being done within ISO TC 207 if the ISO committeecould develop its standards in an appropriate time frame. EMAS wastherefore a significant force driving the pace and scope of work of TC207.The issue of who sets standards has raised questions about the role ofregionaltradingblocksinstandardsdevelopment.Howvo l u n t a rymanagement standards may affect trade agreements such as the NorthAmerican Free Trade Agreement (NAFTA) remains an open question.Thismayultimatelybecomeanimportanti ssueforthetri lateralNorth American Commission for Environmental Cooperation whichwill oversee the environmental side agreement to NAFTA.The Canadian Standards Association Environmental Program The Canadian Standards Association (CSA) has developed consensus-based information for a range of environmental initiatives includingEMSandauditingsystems.BywayofaVo l u n t a ryEn v i ro n m e n t a lManagement Program, they are assisting businesses and organizationsin improving their environmental performance.TheCAN/CSAZ750-94informationproductentitled A Vo l u n t a ryEnvironmental Management Systemis based on the premise of preven-tion rather than end-of-pipe control. The EMS design should empha-s i zepre ventionbyidentifyingtheorganizationssignificantenviro n-mental effects, applicable laws and regulations, and priorities, and byfaci l i tat i ngcorre c t i veacti ons,systemsaudi ti ng,andoperati onprocesses and procedures.38G L OB A L G R E E N S T A NDA R DS : Theframeworkisbasedonfourgeneralprinciplesformanagementsystems: purpose, commitment, capability, and learning.1. Purposeconcernstheorganizationsenvironmentalpolicy;the risks associated with its activities, processes, products, andservices; and its environmental objectives and targets.2. Commitment refers to motivation according to environmen-talvalues;organizationalalignmentandintegration;andaccountability and responsibility.3. Capability refers to human, physical and financial resources;k n owledge,skills,andtraining;andinformationmanage-ment.4. Learningisaboutmeasuringandmonitoring,communica-tionandre p o rting,systemauditsandmanagementre v i ew ;and continuous improvement. These four aspects of the EMS are discussed with reference to a set ofpractical tools and a series of self-assessment questions.Three critical questions about the organizations environmental man-agement initiatives are:Where are we now?Where do we want to go?How do we want to get there?TheCSAhasalsodevelopedguidelinesforenvironmental auditing(CSA Z751-93). This is a process of objectively obtaining and evalu-ating evidence regarding an environmental matter. The results mustbe documented by factual data before the findings are communicatedto the client. Each process of the audit is performed and documented by an audit-ingteamwhichisresponsiblefordevel opingaplantodeterminewhat evidence is to be collected and why. It is the responsibility of theauditee to assist the team by providing them with the relevant infor-mation.Evidenceiscollectedfrompersonnel,third-parties,physical m e a s u rements,dataandre p o rtsandothertechniques.Aftertheresults are evaluated, the findings are released. 39IS O1 4 0 0 0A ND S US T A I NA B L E D E V E L OP ME NTAgoodenvi ronmental audi t will haveaudi torsperformingthep rocessobj ecti velyandi ndependentlyofactiviti esaudi ted.Theauditormustbefreefromconfli ctofinterest.Theaudi tre p o rtincludes the objectives and scope, referencing of the procedures andcriteria used, and the audit results.40G L OB A L G R E E N S T A NDA R DS : C hapter 5 Environm ental M anagem entSystem s and Environm entalAuditingISO14001 Environm ental M anagem ent System s Specification W ith G uidance for U seISO14004 Environm ental M anagem ent System s G eneral G uidelines on Principles, System s and Supporting TechniquesISO14010 G uidelines for Environm ental Auditing G eneral Principles of Environm ental AuditingISO14011 G uidelines for Environm ental Auditing Audit procedures Part 1: Auditing of Environm ental M anagem ent SystemISO14012 G uidelines for Environm ental Auditing Q ualification C riteria for Environm ental AuditorsWhat Are They?The ISO 14000 series environmental management and environmen-tal auditing standards are not about environmental performance per sebut about management systems. The difference is fundamental, andcan be the source of much confusion if not clearly understood. Ratherthan dealing with the values and limits of performance, with energyefficiency ratings and emission levels, a management system standardestablishes what the organization needs to do in order to manage itselfso as to meet its goals.Itisafundamental principleofISO14000thatorganizationssetthei rowngoal s,basedonwhateverconsi derationstheywishtoinclude,includingthedemandsofcustomers,regulators,communi-ties, lenders or environmental groups. That is, a company can set itsown objectives and targets for performance. The ISO 14000 manage-mentsystemprovidesaframew o rktodevelopplanstomeetthosetargets and to produce information about whether or not the targetsare met. The EMS and EA standards are then useful to the stakehold-ers of the organization who wish to be assured that the environmentalclaims of producers are valid. 41IS O1 4 0 0 0A ND S US T A I NA B L E D E V E L OP ME NTAgoodEMSstandardshouldimproveenvironmentalperf o r m a n c e .This is because the system will require that clear goals be set for envi-ronmental performance, and then the success in meeting the goals bemonitored. This focus of attention will often result in goals being sethigherthancurrentpractice,inanongoingprocessofconti nualimprovement. It is important not to over-stress this, however. Thesevo l u n t a rystandardswillencourageandfacilitateimprovement,buttheydonotreplaceperformancere q u i rementswhateverthesourc e .Vo l u n t a ryst andardswil l gi vet ool stocompani eswhowi shtoimprove,helpingthemtomoveinwhateverdirectionstheychoose.Properly enforced legal requirements will demand that all companiesmeet the performance standards set by the authorities.These standards are very similar in concept to the ISO 9000 series ofquality management and quality assurance standards. They include aspecificationwhichlistsanddefinesthemanagementsystemsele-ments that an organization must have in place if it wishes to demon-strate conformity with the standard and a guidance document whichprovides advi