Current state and advances in the implementation of ISO 14000 by the food industry. Comparison of ISO 14000 to ISO 9000 to other environmental programs

Trends in Food Science & Technology 9 (1999) 395±408

Current state and advances in the implementation of ISO 14000 by the food industry. Comparison of ISO 14000 to ISO 9000 to other environmental programs Ioannis D. Boudouropoulos and Ioannis S. Arvanitoyannis* Food Chemistry & Biochemistry Laboratory, Food Science Department of Faculty of Agriculture, P.O. Box 265, Aristotle University of Thessaloniki, 54006 Thessaloniki, Greece (Hellas) (fax: +30-31-998789; e-mail: [email protected]) Nowadays, environmental pollution has become a very critical and acute issue and in view of the increasing number of industrial accidents both the public and ecological movements have managed to increase the sensitivity of governments of many countries toward these problems. Environmental awareness resulted in the recent promulgation of a new environmental standards, ISO 14000/EMS, aiming at universal acceptance to improve the environmental *Corresponding author.

Review performance of companies, to minimize liabilities and to enhance the image of the companies. Food companies have just started to endorse this. In contrast, the chemical and the automobile industries were the ®rst to adopt these new ISO 14000 standards. # 1999 Elsevier Science Ltd. All rights reserved.

The emergence of global environmental awareness

The advent of the Green revolution has driven consumers toward demanding, environmentally friendly products. Products must be manufactured by processes generating minimum waste, to be energy ecient and have a negligible impact on the environment. Furthermore, in order to qualify a product as environmentally friendly, a detailed life cycle analysis, from cradle to grave, is required. The time has come that a product will no longer be considered a quality product in the broad sense unless it is in line with ecological requirements [1]. Strong public pressure in Europe and the United States has pushed companies toward awareness that consumers are strongly interested in the interactions of business operations with the environment. This trend, in conjunction with a steadily growing number of regulatory requirements, has convinced companies to develop their own environmental management systems. An Environmental Management System (EMS) considers a company's organization through a thorough review of operations, and analyses how the actions of a company a€ect environmental issues [2]. Organizations contemplating the implementation of ISO 14000 have to evaluate the impact an EMS is anticipated to have on its internal structure and its ability to meet external expectations. Over the last two decades the management pro®le of environmental issues has undergone severe changes moving from regulation compliance to voluntarily meeting environmental goals and objectives. This vision of proactive environmental management is the focus behind ISO 14000 [3]. Some of the main events that initiated the concept and development of the ISO 14000 series are given in Table 1. Therefore, the introduction of worldwide standards addressing environmental concerns is opportune. These new international standards, known as ISO 14000, o€er a means of providing a rational environmental approach to extremely complex and controversial issues [1]. The International Standards Organization (ISO) promulgates this new set of standards for environmental

0924-2244/99/$ - see front matter Copyright # 1999 Elsevier Science Ltd. All rights reserved. PII: S 0 92 4 - 2 24 4 ( 9 9 ) 0 0 00 8 - 4

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Table 1. Most important milestones preceding the development of ISO 14000 series [4±7] Year

Event

1955

Princeton, New Jersey. International Symposium on Environment. Stockholm. United Nations' sponsored conference on Human Environment. Washington. Carter administration published its Global 2000 Report. World Trade Commission published its in¯uential Our Common Future. Code of Management Practices by Chemical Manufacturer's Association (CMA) Costa Rica established National Biodiversity Institute. Coalition for Environmentally Responsible Economies (CERES) Responsible Care European Union's Eco-Management and Audit Scheme Regulation (EMAS) ISO 14000 Series

1972 1980 1987 1988 1989 1989 1990 1994 1996

management aiming at its universal acceptance. The ISO has more than 120 member countries, and its function has been to harmonize current national standards, primarily technical standards, across countries. More than 10 years ago, ISO put forward and implemented the 9000 standards, in an attempt to establish a global standard of quality management. Primarily driven by European companies, ISO 9000 stands for a voluntary standard of compliance that requires most multinational companies to be certi®ed with, should they wish to do business in Europe. It is expected that something quite similar will happen with the environmental standard, 14000, and that most multi-national companies will require their suppliers to be certi®ed [4]. The awareness of companies to the signi®cance of the sustainable environment becomes obvious by the voluntary adoption of codes and regulations related to sustainability from the part of the business community [5±7]. The ISO 14000 series emerged primarily as a result of the Uruguay round of the GATT negotiations and the Rio Summit on the Environment held in 1992. The two most important results coming out from the United Nations Conference on Environment and Development, or Earth Summit, held in Rio de Janeiro, Brazil, 1992, were Agenda 21 and ISO 14000. Agenda 21 which is a comprehensive set of guidelines for achieving sustainability earned a universal acclaim since it was adopted by 172 nations at the conference. ISO 14000 is a group of standards including ISO 14001 which addresses environmental management and pollution prevention in an e€ort to achieve sustainable development [8]. By late 1994, several European countries had stated their intention to commit themselves to the basic principles of sustainability formulated during the 1992 Rio Earth Summit. The United States managed to lose the leading role they had in developing

national environmental legislation in the late 1960s and the early 1970s, despite some e€orts by President Clinton to establish the Environmental Technology Initiative (ETI) in 1993 and other environmental programs such as the President's Council on Sustainable Development (PCSD) [9]. Nowadays, new regulations requiring EMS implementation gain ground continuously in most countries. It has been a challenge for environmental management to decide which systems to design and how to implement them in a cost-e€ective way. The ®rst two published standards, often considered as the pillars of ISO 14000 are ISO 14001, Environmental management systemsÐSpeci®cation with guidance for use, and ISO 14004, Environmental management systemsÐGeneral guidelines on principles, systems and supporting techniques [10]. These two documents are the pillars of the ISO 14000 series since they specify the requirements against which a company's environmental management system (EMS) is to be judged. Four other documents on auditing principles and procedures, auditor quali®cations and life cycle assessment principles have been approved and published since October 1996 [11]. Merging environmental management and standardization has been an arduous task for the Technical Committee 207 (TC 207) mainly because of the great variety of the already existing environmental organizations and systems overlapping each other in this ®eld (Fig. 1) [11, 12].

Technical committee 207 (TC 207)

SAGE recommended that the ISO establish a new technical committee to develop standards in the following areas: . . . . . . .

Environmental Management System (EMS) Environmental Auditing (EA) Environmental Performance Evaluation (EPE) Life Cycle Analysis (LCA) Environmental Labeling (EL) Terms and de®nitions (T&D) Environmental Aspects of Product Standards (EAPS)

The standards being developed by TC 207 can be categorized as those that are organizational and those that are product related [13, 14].

Environmental management systems (EMS) What is environmental management?

Published by ISO on September 1, 1996, ISO 14001, an environmental management system, is de®ned as follows: ``The set of managerial activities which de®nes the environmental policy, objectives and which implements these activities by means of planning for environmental objectives, measurement of results and the control of

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397

Fig. 1. Evolution of ISO 14000 standard [11, 12].

environmental e€ects'' [15]. Environmental Management represents a multi-purpose tool for an organization to watch over the interactions that its products and activities have with the environment and to continuously improve the level of environmental performance [16].

What is environmental management system?

That part of the overall management system which includes organizational structure, planning activities, responsibilities, practices, procedures, processes and resources for developing, implementing, achieving, reviewing and maintaining the environmental policy.

What is environmental policy?

Goals and general objectives set by the company concerning the environment as formally expressed by executive management. The environmental policy is an element of the general policy. It is understood that the environmental policy will respect relevant environmental legislation and regulations. A prerequisite for choosing objectives and targets is an evaluation of environmental e€ects [5]. A guiding principle in choos-

ing objectives and targets is that these should address signi®cant environmental e€ects, although ISO 14000 does not require that all such e€ects are targeted simultaneously [10]. The vision of ISO of an EMS includes establishing a company environmental policy that expresses ``the commitment of top management to comply with applicable laws and continuous improvement'' [16]. Although that policy forms the basis for setting objectives and targets and measuring and monitoring the progress toward the targets, addressing problems, and analysing and revising the management system speci®c performance goal are not part of the EMS [2]. EMS requires the organization to de®ne its environmental policy: 1. The policy must be appropriate to the nature, scale, and environmental impacts of its activities, products or services. 2. Moreover, a commitment should be stated with regard to continuous improvement, pollution prevention, compliance with relevant environmental legislation and regulations, or other requirements to which the organization subscribes. It should be clari®ed that an ISO 14001 audit will not be a

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legislation compliance audit but an audit related to ISO 14001 conformance. Finally, the environmental policy of the organisation must be documented, implemented, maintained, and communicated to all employees and made available to the public [5]. The main requirements and steps for establishing an EMS according to ISO 14001 standard are summarised in Table 2.

Bene®ts by implementing ISO 14000

Among the bene®ts of ISO 14000 certi®cation is enhancement of a company's public image and it o€ers a degree of safeguards against lawsuits. Mismanagement of environmental regulations can result in sti€ penalties and time-consuming lawsuits for not adhering to these regulations. The ISO 14000 standard provides the ¯exibility to the organisation to modify, customize and implement a system that meets its site speci®c operations and business model [3]. Although the fear of a high investment of an EMS/ISO 14001 implementation may dissuade organisations from its implementation, managers should bear in mind that the estimated expenditure often proves to be lower because of the existence of another system related to quality or enviromental assurance [20]. Companies who have implemented an EMS have seen improvements in the following areas: . Environmental Liability (ensure that environmental issues are considered strategically, rather than as a one-o€ special exercise). . Reduced Operating Cost (prevention and waste reduction). . Management of Change in Supply (checking if certain supplies will be available in the near term and in the long term).

. Increased Productivity . Improved Financial Performance (1995 Statistics show that lower production costs are related to ``cleaner'' ®rms). . Maintenance of consistent compliance with legislative & regulatory requirements . Declining paperwork . Waste reduction . Improved Community and Customer Relations (public image). . Employee Motivation (``feelgood factor'', and increased motivation suggesting improvements and cost savings). . Improved Environmental Performance (EMS with ISO 14000). . Potential Impact on world Trade (need for uniform standards, WTO) [3, 6, 20, 21].

ISO 14000ÐEnvironmental management system

Although the reduction of pollution is the main goal of ISO 14000, the amount of reduction is not clearly stated. Therefore, reduction results from voluntary actions supported by the management system. Voluntary programs such as ISO 14000 must justify their existence. A challenge facing supporters of ISO 14000 is convincing companies to register to the standard. There is a perception in industry that the bene®ts of registration may not outweigh the costs of the e€ort. Historically, the US has used legislation and regulation to reduce pollution. Big companies are accustomed to complying with environmental regulation and recognize such e€orts as a cost of doing business. Registration to ISO 14001 o€ers several bene®ts but companies can opt for an e€ective EMS and good environmental performance without registration [22].

Table 2. The ®ve basic EMS steps [5, 10, 17±19] 1. Commitment and policy 2. Planning 3. Implementation

4. Measurement and Evaluation

5. Review and Improvement

An organization de®nes its environmental policy and ensures commitment to it. Top management must commit to continuous improvement of the EMS, thorough documentation, prevention of pollution, and compliance with applicable law and communication to employees. An organization formulates a plan to ful®ll its environmental policy with a multidisciplinary team. After having assessed the impact of processed products on the environment, objectives and targets are set. The third step is to put the plan into action by providing resources and the necessary support mechanism to achieve the environmental policy and the objectives and targets. In this step, the organization de®nes the roles and responsibilities of all involved in the process, including senior management representatives. It identi®es and provides necessary resources. The organization establishes and implements training procedures and internal and external communications procedures. The organization measures, monitors, and evaluates its environmental performance against its objectives and targets. It also generates speci®c procedures for conducting reliable performance evaluations. The organization conducts audits of the EMS to identify areas that require improvement and non-conformances that must be corrected. The ®nal major step is to develop procedures to review in order to improve its overall environmental performance. This step also comprises comparison of actual performance with its objectives and targets and identi®cation of causes and de®ciencies.

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ISO 14000: a new approach

Recent industrial accidents have proved that regulatory compliance is not enough to ensure against environmental degradation. Since mere compliance did not prove to be a complete prescription for environmental protection, awareness arose that a more proactive and comprehensive system like ISO 14001 was needed [23]. From a strategic viewpoint, many organizations are focusing on issues such as: quick response (to customer needs), customer relationships, core competence, and continuous improvement, in addition to conventional indicators including: cost control and technology in an e€ort to positively in¯uence customers' perceptions about companies [24]. ISO 14001 EMS could help organizations address these issues. Implementing an ISO-14001 EMS system could in the longterm remain the accustomed driven process [17]. EMS is the foundation upon which a company builds its own ISO 14000 plan. This EMS can be documented in an environmental manual, or maintained in sections of the company's quality or operation manual. Since ISO 14000 series embraces a broad range of activities, several standards had to be issued to describe them. The development of ISO 14000 series in terms of its standards is summarized in Table 3 [2, 6, 7, 25±27]. It is important to make all the involved parties in the implementation of a standard like ISO 14001 to realise what expectations are valid within the frame of sustainable development and which are not.

ISO 14001: What is and what is not

ISO 14001 requires that an organization develop an environmental management program to address all of its environmental objectives and targets and describe

how each will be achieved to a minimum extent regarded as acceptable by all countries [28]. One valuable feature of the ISO 14001 standard is that it includes a good, informative annex [5]. One annex of special importance is Annex DÐa Special Guidance for Small and Medium Enterprises (SME). A SME is de®ned as any organization up to 200 employees. The SME should prepare many of the ISO 14000 elements, such as objectives, targets, resources, guiding principles and the environmental manual, however not in as great depth (US Sub Tag 1,1995) [12]. The purpose and scope of the ISO 14001 standard are stated within the sections: ``Introduction'' and ``Scope''. Not surprisingly, the scope of ISO 14001 is very broad and is intended for ``all types and sizes of organizations''. After the scope of ISO 14001, the opening paragraphs emphasize the following general objectives: . The overall aim of the standard is to support environmental protection in balance with socioeconomic needs. . The environmental management system can be integrated with other management requirements as found in the ISO 9000 series, for example. . In order to achieve environmental objectives, the environmental management system should encourage organizations to consider implementation of best available technology where appropriate and where economically viable (EVABAT).

What the standard is not

The standard is not intended to address, and does not include requirements for, aspects of occupational health and safety management; it does not seek to discourage

Table 3. The development of the ISO 14000 series [2, 6, 7, 25±27] ISO 14000 ISO14001 ISO14004 ISO14010 ISO14011/1 ISO14012 ISO14013 ISO14014 ISO14015 ISO14020 ISO14021 ISO14022 ISO14023 ISO14024 ISO14031 ISO14040 ISO14041 ISO14042 ISO14043 ISO14050 ISO14060

399

Guide to Environmental Management Systems: General Guidelines Environmental Management Systems-Speci®cation with Guidance for Use. Environmental Management Systems-General Guidelines on Principle, Systems, and Supporting Techniques. Guidelines for Environmental Auditing-General Principles of Environmental Auditing. Guidelines for Environmental Auditing-Audit Procedures-Auditing of Environmental Management Systems. Guidelines for Environmental Auditing-Quali®cation criteria for auditors. Management of Environmental Audit programs. Initial Reviews. Environmental site Assessments. Environmental Labeling-General Principles. Terms and De®nitions for Self-Declaration Environmental Claims. Environmental Labeling-Symbols. Environmental Labeling-Testing and Veri®cation Methodologies. Environmental Labeling-Guiding Principles, Practices and criteria for Multiple Criteria-Based Practitioner Programs-Guide for certi®cation. Evaluation of the Environmental Performance. Environmental Management-Life Cycle Assessment-Principles and Guidelines. Environmental Management-Life Cycle Assessment-Goal and De®nitions/Scope and Inventory Analysis. Environmental Management-Life Cycle Assessment-Life Cycle Impact Assessment. Environmental Management-Life Cycle Assessment-Interpretation. Terms and de®nitions Guide on the Principles for ISO/TC SC6 Terminology Work. Guide 64 for the inclusion of environmental actions in product standards.

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an organization from developing integration of such management system elements. The standard does not state speci®c environmental performance criteria [5].

Similarity of ISO 14000 to other programs (responsible Care1, CERES, BS 7750, EMAS, ISO 9000, Keidahren Charter) Comparing ISO 14001 and Responsible Care1

The principles stated within the ISO 14001 environmental management system are de®nitely not new. Since most of them have already been stated by other programs, often with greater clarity and more rigor. One could cite for example, the ten guiding principles of the Process Safety Code of Management Practices speci®ed by the Chemical Manufacturers Association's (CMA) which were formally released by Responsible Care1 initiatives. The main aims of this product were to improve environmental performance and to improve industry's relationship to the public [29]. There are strong similarities in both structure and purpose between the ISO 14001 EMS standard and the Responsible Care Pollution Prevention Code. Both require senior management commitment; a planning process, including prioritization and goal setting; implementation and continuous improvement; measurement of progress; periodic evaluation of practices; and control of critical operations, and while both require input from interested parties, Responsible Care puts a great deal more emphasis on this aspect [6].

Comparing ISO 14001 and the CERES principles

Founded in 1989, the Coalition for Environmentally Responsible Economies (CERES) is a nonpro®t membership organization comprised of leading social investment professionals, environmental groups, religious organizations, public pension trustees, and public interest groups. The CERES Principles, released in 1989 as the Valdez Principles, aim at developing positive programs to prevent environmental degradation, assisting corporations in setting policy, and enabling investors to make informed decisions regarding environmental issues. These Principles established an ethic with criteria by which investors and others can assess the environmental performance of companies. Companies that endorse these principles pledge to go voluntarily beyond the requirements of the law. Comparison of ISO 14001 standard with the CERES Principles shows some obvious di€erences in emphasis. Thus, whereas the CERES Principles emphasize the need for corporations to protect the earth and act responsibly toward the environment in order to allow ``future generations to sustain themselves'', the ISO 14001 standard is more business-friendly and speci®es only that the organization ``shall consider'' the implementation of a particular point. It is evident that ISO

14001 is a compromise document written so as not to alienate the business community.

Comparing ISO 14001 and eco-management and audit scheme (EMAS)

ISO 14000 has been developed in the context of other EMS initiatives, such as the BS 7750 EMS standard and the European Union's Eco-Management and Audit scheme regulation (EMAS). The EMAS regulation also requires an organization to communicate its objectives and targets to the public. Disclosure allows public intervention at two levels. First the public can review a company's objectives and targets and ascertain which companies set the most (and least) aggressive goals for pollution prevention; second, the public can exert pressure on those companies which have less aggressive goals or which do not meet their objectives and targets [30]. The most obvious di€erence is that EMAS is a voluntary regulation while ISO 14001 is an international standard. Thus, whereas EMAS applies only to sites within the EU, ISO 14001 is applicable worldwide. Other key di€erences include the following: . EMAS is site-speci®c and relates to industrial activities, whereas ISO 14001 applies to activities, products and services across all sectors, including nonindustrial activities. . EMAS requires an extensive initial environmental review as part of the EMS which, though suggested, is not speci®cally required in ISO 14001. . EMAS requires the publication of a validated public environmental statement and an annual simpli®ed statement in contrast to ISO 14001. . EMAS calls for more extensive auditing than does ISO 14001 which only requires EMS auditing. . The EMS requirements in EMAS require the preparation of an environmental e€ects register, which is not required in ISO 14001 [6, 30].

Comparing ISO 9000 and ISO 14000

The ISO 14001 Environmental Management System (EMS) standard and the companion guideline are regarded as having evolved as a natural adjunct to the ISO 9000 series of quality management systems (QMS). While there was an attempt to model the EMS standard after the QMS standard, international environmental experts saw a need to signi®cantly depart from this standard. There are some major di€erences between quality management and environmental management that impede total correspondence between the two standards. For instance, whereas quality standards a€ect an organization and its customers, environmental standards have a greater reach and a€ect an organization's relationship to its neighbors, nearby creatures and ecologies, and ultimately, humankind. ISO 9000 registration has been strongly leveraged by customer/sup-

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plier relationships. ISO 9000 is being market-driven as ISO 9000 companies compellingly require their suppliers to become certi®ed and it is believed that there is sucient ISO 9000 momentum for a natural carry-through into ISO 14000 [31]. In Table 4 a synoptical comparison of the two standards is shown [6, 23]. Some components of the ISO 14000 series have no parallel in the ISO 9000 standards such as environmental labeling and life cycle assessment, as well the environmental performance evaluation guideline document. While the numbering system has some parallels, a one-to-one correspondence between document numbers and content does not exist. Auditing is part of both the ISO 9000 and the ISO 14000 standards. There are some similarities between the two corresponding documents (such as the consistent use of the verb should), but, in general, the documents di€er markedly. The ISO 9000 auditing documents are ISO 10011-1, which is the guideline for auditing quality systems; ISO 10011-2, which includes the quali®cation criteria for quality system assessors; and ISO 10011-3, which is the procedure for the management of assessment programs. The guidelines apply to internal quality system assessments that are required by the standard, as well as to external and extrinsic quality system assessments. In addition, ISO Guide 48 speci®es guidelines for thirdparty assessment and registration of a supplier's quality system [23]. Like ISO 9000, ISO 14000 mandates auditing to ensure that standard requirements are being met.

Guidelines for these audits and quali®cation guidelines for auditors are found in ISO 14010, 14011/1, and 14012. Audits may be performed internally by individuals within the company or by external auditors [30].

Applications of ISO 14000 Applications to the food industry

As with the ISO 9000 standards, the food industry has lagged behind other businesses in adopting the ISO 14000 series. In contrast, chemical companies and their trade associations and the automobile industry have been the most active participants in program development. This development was rather unexpected because the food industry has perhaps the most to gain from these new standards. The main environmental challenges for food companies have been listed as follows: water availability, waste water discharge, air emissions, by-product disposal or utilization, chemical residues, solid water disposal, and food packaging materials. Further complicating solutions to the problems is the basic need to provide a safe food supply. Compromises, for example, between, the shelf life of a food product and the choice of packaging material must be decided in favour of the quality of the product [1]. Another challenge facing many food processors is the need to separate and dewater solids from waste water. In the ®eld of packaging materials food companies have managed to put together a satisfactory environmental performance. The 1995 Annual Report for

Table 4. Comparison of ISO 9000 and ISO 14000 [6, 23]

Aims

Structure Environmental aspects

Contents

401

ISO 90000

ISO 14000

Provides suppliers organizations a means for demonstrating to customer organizations the achievement of requirements for quality; enhances the achievement of a supplier organization in providing overall performance in relation to objectives for quality. Mixture of management activities, process requirements, and veri®cation requirements; separate guidance.standard The supplier shall de®ne and document how the requirements for quality will be met. Addresses the need to identify aspects of the product/service process that need to be addressed in order to meet customer quality speci®cations. Both ISO 9000 and ISO 14000 include the elements of management commitment and responsibility, management system documentation, document control, operational control, training, monitoring and measurement, nonconformance and corrective action, records and audits. ISO 9001 includes discrete elements of quality planning, product identi®cation and traceability, and statistical techniques.

Provides organizations with the elements of an environmental management; provides assistance to organizations considering the implementation or improvement of an EMS, including advice on enhancing such a system to meet environmental performance expectations. Adheres to ``plan-do-check-act'' type of business model; separate guidance standard. Addresses the need to identify all environmental aspects of activities, products, or services in order to set environmental objectives that satisfy stakeholder concerns. ISO 14001 includes discrete elements of environmental aspects, legal requirements, objectives and targets, environmental management program, communications, and emergency preparedness and response.

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Anheuser-Busch discloses that within the frame of a company-sponsored program, the volume of recycled aluminium beverage cans has tripled over the past 10 years [32]. The Unilever Environment report of 1998 includes the progress that has been made in all ®elds of environmental preservation such as the integration of warehouse and transport arrangements in the frozen food business to save noise, congestion, fuel, and emissions in the Netherlands, or the certi®cation to ISO 14001 of three food industries in Turkey [32]. Kellogg, a cereal company, uses recycled material in its packaging. On the company's box of Mueslix breakfast cereal, the following statement is stamped next to the recycle symbol with chasing arrows: ``Carton made from 100% recycled paper, minimum 35% post-consumer content''. These examples and others indicate the concern of food processors for environmental issues. All that remains to be accomplished is to incorporate these activities in an EMS [1]. ISO 14000 standards are important to food companies and will most likely be implemented much faster than ISO 9000 because they directly a€ect issues that can only become more important in the future [33]. Various food industry management problems, such as processing wastewater and packaging issues can be e€ectively handled with ISO 14000 standards. ISO 14000 also has major implications for food and environmental laboratories which will most likely be strongly encouraged to register to ISO 14000 standards. It is anticipated that there will also be business opportunities for these laboratories in performing life-cycle assessments and other tests [30].

Applications to the chemical companies

The decision to follow ISO 14000 standards ultimately will come down to costs versus bene®ts. International consistency in environmental management, especially as multinational companies expand manufacturing and marketing overseas, is a leading advantage mentioned by chemical industry environment, and safety (ESH) managers. Uniform standards are expected to reduce confusion and help prevent nontari€ trade barriers. Certi®cation of a company's EMS by an international recognized register may help the transactions of the company and improve its public image as well [34]. Although adoption of EMS provides by no means a guarantee that environmental performance will improve, EMS can signi®cantly enhance the company's chance of achieving better performance [17]. The standard seeks to balance socio-economic and business needs with support of environmental protection and pollution prevention by preferably making use of best available technology. ISO 14000 certi®cation will require investment in software, manpower, possible equipment installation and possible third-party auditing [34].

Applications to forestry and agriculture

Forestry sector delegates attending the International Standards Organizations' Environmental Committee (TC 207) in Rio de Janeiro, supported the ISO 14000 implementation by stating that ``The use of these ISO standards and practices will encourage better forestry practice world-wide. By working under the ISO umbrella we have the reassurance of its 50 years experience as the authoritative body in setting international environmental standards. Forestry management involves a most complex matrix of environmental, social and economic issues. The ISO standards and processes will add signi®cantly to consistent understanding of these complex global issues, and o€er a practical framework for implementation at the local level'' [35]. Dutch trade/industry delegates to international forum have put forward concrete suggestions for implementing an ISO 14000 based system of certi®cation and are essentially supportive of Canadian e€orts in this area. Since the in¯uential ``Heart for Wood'' campaign is extended to cover all timber, not solely tropical product, it becomes increasingly important for temperate producers to develop systems that certify sustainable production and are compatible with and acceptable to the Dutch industry-led hallmarking system [36]. The Monsanto Corporation is one of the world's largest producers of chemicals and pesticides for agricultural and home use. Monsanto has implemented seven sustainability teams to develop methods, processes, and systems that integrate sustainable development into the operations of the company. Three teams are working internally to develop tools and methodologies to assess, measure and provide direction for the internal management. Three teams are looking externally to identify sustainability needs that Monsanto might address. The seventh team is developing communications materials and training programs for stakeholders.

ISO 14000 and banks

The ability to adjust banking credit and investment practices to re¯ect environmental factors may depend on a bank's ability to obtain and use accurate and reliable environmental information. However, access to such information may be a costly and lengthy procedure, not easily available and dicult for interpretation for the typical banker. An opportunity for expanding the information base on the environmental performance of industries may arise with the advent of ISO 14000. The ISO 14000 initiative (speci®cally ISO 14001) could serve a meaningful role in helping issuers of debt evaluate environmental risk on a pre-commitment and, to a lesser extent, post-commitment monitoring basis. As to the exact role ISO 14000 might play, the bankers will be in need of consistent and comparable data that allow them to compare similar types of ®nancing trans-

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actions. With the introduction of ISO 14001 and the development of an information framework, credit ocers would be able to compare ®rms and plants on each facility's speci®c approaches to environmental management systems and their perception on how these di€erences in practices will a€ect relative risks. Through compliance with the ISO standard, ®rms can demonstrate that they have a speci®c plan to reduce environmental impacts and are incorporating environmental management into the overall management of the organization. The banking industry's interest will depend on the extent to which a connection can be established between this certi®cation and actual reductions in ®nancial risk assumed by bankers. This connection will clearly depend on the quality of external information that emanates from the ISO 14001 process, which is still in preparation [37].

ISO 14000 and governments

Many countries have already declared the ISO 14000 their own national standards. Since the introduction of these standards many companies from many countries have already been certi®ed. In Fig. 2, the current situation of certi®ed companies per country, as of September 1998, is shown [38]. Ten states in the U.S.A. agreed on

403

forming an informal consortium to determine how bene®cial EMSs are for the environment and the economy. Several Universities and National Institutes are also involved in this project, the ®rst results of which seem to be positive [39, 40]. Indonesia plans to adopt ISO 14001 as its national environmental management system standard, as have a number of other countries. The ISO 14001/EMS and environmental auditing standards were adopted as Indonesian standards in the ®rst quarter of 1997 [41].

ISO 14001 implementation

Introduction All components of the environmental management system should be co-ordinated with other important functions of the organization, especially at the policy level. For example, the policies, objectives and targets of the ®nance, operations and safety departments must be considered and, if possible, be compatible with those of the environmental department [12]. If an organization is already ISO 9000 certi®ed or at least close to it, considerable time can be saved. For example, the following materials already prepared for ISO 9000 certi®cation can be used for ISO 14000 with only minor change: organization and personnel procedures, records and

Fig. 2. The number of ISO 14001/EMAS certi®ed companies all over the world by September 1998 [38].

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controls of documents, audits and reviews. Many other sections from ISO 9000 documents can be used as a starting point; however, considerable modi®cation would need to be done, for example on the procurement section, to bring them up to ISO 14000 standards [42]. Initial assessment and de®nition of purpose Before an organization begins massive design and implementation e€orts, an initial assessment is necessary in order to review the current status of the company and the purpose could be to better protect the environment, to become ISO 14000 certi®ed, to become more cost e€ective, to improve community relations, to improve market appeal and numerous other purposes [12]. Policy preparation The policy must re¯ect the organization's commitment to comply with applicable laws and regulations. ISO 14001 registration is not a substitute for compliance; it complements compliance with national laws and regulations [6]. Objectives and targets Objectives and targets should the next to be be prepared in order to achieve the policy statement. The objectives would include statements such as establishment of a waste minimization program. Targets would be speci®ed for each objective and present numerical goals, such as 10 tons of acetone waste recycled in 1999.

an environmental management manual(s) is essential and should be set up if one does not already exist to contain all the di€erent procedures and standards. It should also contain a copy of the company policy. Implementation of programs Environmental management systems need to be implemented to actually help the environment. In real life administrative delays and inadequate personnel and training can prevent environmental protection and improvement from happening. A good top management policy, energetically pursued will assure success. Knowing that continued operation depends upon innovative environmental protection, good management will create the necessary authority and funding for an e€ective program. The ®nal part consists of registration which comprises the following steps: Application/Contract, Pre-Audit Option, Documentation Review, Certi®cation Assessment, Certi®cation and Certi®cation Maintenance (surveillance). Annual surveillance visits are recommended to maintain the integrity of the EMS [44]. A good average for companies to prepare for a ®rst registration assessment is around a year [11]. Ongoing auditing, management reviews, correction and follow-up By continuously auditing or reviewing the progress an organization is making in environmental management, it is possible to suggest meaningful correction and follow-up. Certi®cation TC 207 is promoting integration and certi®cation of ISO 14000 with ISO 9000 via a co-ordinating committee (TC 176/TC 207).

EMS documentation and utilization of existing documents and resources Many companies reported that the EMS had led to improved procedures and documentation. One explanation for this seeming discrepancy is that organizations see a value in documentation and written procedures, but they do not want a standard to require what should or should not be documented [43]. Within the frame of EMS/ISO 14000 it is essential to prepare and maintain the following functions; description of the core elements of the management system and their interaction and direction to related documentation.

ISO 14010Ðenvironmental auditing Objectives or purposes of an environmental audit

Preparation of new operation procedures and action plans After the completion of the above steps it is time to prepare the new procedures that are missing. Many environmental management systems were found to compose of unwritten procedures and standards. This usually leads to confusion and negative environmental impacts. Even if an individual plan to do an environmental control action only one time, it is still good to put in writing so that questions can be answered when they come up about what was done. The compilation of

Meet ISO 14001 certi®cation criteria Determination of conformance of the environmental management systems of an organization in terms of ISO 14001 certi®cation is one major objective of environmental

Continuous improvement By internal audits and monitoring, it will gradually become evident that the policy, objectives, targets and plans will have to be modi®ed. Frequently upgrading the entire system will keep it cost-e€ective and impacts will be reduced to the maximum extent possible.

General An environmental audit is a systematic process to obtain, evaluate and report facts concerning conformance with criteria. It will hopefully allow an organization to make meaningful improvements that will minimize negative impacts to the environment and employee safety [45].

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audits. As the other components of the ISO 14000 series are more fully developed, they will probably become elements that the auditors will assess as well [45]. Improve regulatory compliance Another top priority of auditing is to help an organization comply with applicable regulations. Audits will identify areas that need improvement to meet the regulations. Once these corrections are made, the organization can demonstrate regulatory compliance. Discovery of problems and possible violations will occur faster if audits are done which help to shorten the period of non-compliance, assuming the problem is corrected. Meet policies and objectives The ®rst step in the EMS audit is determining the audit scope, objectives, and purpose. The lead auditor, in conjunction with the client, should de®ne why the audit is being performed and what it will accomplish. Save money Auditing will help the organization save money because monetary ®nes can be minimized through audits. Audits can also identify ways to reduce disposal and cleanup costs. Continuous environmental improvement Continuous environmental improvement is essential for minimizing impacts to the ecosystem and for building and maintaining a sound organization. Audits will help the organization continuously improve its environmental and safety control systems. Audits will verify that environmental management systems are e€ective and, if they are not, will suggest ways to make them so. Detecting potential problems Environmental audits are valuable for spotting potential problems before they become too important issues. Early identi®cation will usually allow correction in a more cost-e€ective manner. Determining whether EMS have been implemented and are properly maintained Lack of problems and ®nes could also temporarily indicate that an environmental management system is in place; however, audits would be more reliable and proactive. The audits must concentrate on system-type issues, not the traditional presence or absence of things like hazardous waste labels. Determine whether to transact with a supplier Assessment of the environmental consciousness of a potential supplier is made through an environmental audit. The entire chain of suppliers in terms of a product and its components, all the way back to the raw

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materials coming out of earth is important in terms of the environment, and most customers realize this fact. Quality control of the sampling and measurement process Auditing is a way to assess whether a monitoring program is meaningful or not. Monitoring frequency, method, equipment used, sample size personnel used and variation in results are examples of aspects that can be audited. The audit may suggest that sampling be done in a di€erent way or that di€erent variables need be assessed. Consulting with the auditee is very essential regarding practical matters such as availability of auditee personnel, records and data and work place health [46]. Meeting contractual requirements Some contracts contain environmental or safety conditions. Audits can help verify whether the terms and conditions are being met in a diligent manner or the contract has been breached. Improving public perception Auditing and correcting de®ciencies will help minimize negative feelings about an organization that the public might have. Some organizations, especially in Europe, are planning on releasing audit results to the public. Improvement of management and employee awareness Problems identi®ed must be promptly corrected, especially if the audit results are to be shared with many employees. Implemented corrective actions will change a potentially negative message or communication into a positive one.

ISO 14040: life cycle assessment (LCA)Ðprinciples & guidelines

The concept of LCA LCA considers the environmental aspects and the potential impacts of a product or a service system throughout its lifeÐfrom raw material acquisition through production, use, and disposal (from cradle to grave) [47]. Society for Environmental Toxicology and Chemistry (SETAC) de®nes LCA as the ``process to evaluate the environmental burdens associated with a product, process, or activity by identifying and quantifying energy and materials used and wastes released to the environment; to assess the impact of those energy and material uses and releases to the environment; and to identify and evaluate opportunities to a€ect environmental improvements. The assessment includes the entire life-cycle of the product, process, or activity, encompassing extracting and processing raw materials; manufacturing; transportation and distribution; use, re-use, maintenance; recycling; and ®nal disposal'' [48].

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ISO 14041 is entitled ``Life Cycle AssessmentÐGoals and De®nition/Scope and Inventory Analysis'', and is intended to describe special requirements and guidelines for the preparation, conduct, and critical review of the life cycle inventory analysis. Inventory analysis is the phase of LCA that involves the compilation and quanti®cation of environmentally relevant inputs and outputs of a product system. ISO 14042, entitled ``Life Cycle AssessmentÐImpact Assessment'', proposes to provide guidance on the impact assessment phase of LCA. This phase of LCA is aimed at evaluating the signi®cance of potential environmental impacts using the results of the life cycle inventory analysis [23]. The structure of LCA The LCA structure suggested by SETAC is described in Table 5. The term ``life cycle analysis'' is often used for the analysis stage of a life cycle assessment. Goal de®nition is perhaps the most important component of an LCA. The inventory is a qualitative and quantitative analysis of the resources used and the emissions generated in the life-cycle. The impacts, normally assessed, fall into three broad categories: human health, ecological health and resource use [6]. Characterization is the aggregation of inventory data within the impact categories by the use of, for instance equivalency factors [49]. Valuation can be done either qualitatively or quantitatively by expert panels. Examples of LCA studies on food production systems LCA studies performed so far have focused on comparing di€erent packaging materials and packaging systems in the case of milk, as example, a large number of studies have been carried out comparing single-use cartons with disposable and re®llable bottles of both glass and polycarbonate. An ecologically sound recycling and recovery of the packaging material strategy combines mechanical recycling with ecient feedstock recycling and energy techniques. The analysis clearly shows that mechanical recycling of the high-grade ®lm and bottle fractions, which only account for about 30% of the plastic packaging of households, is reaching its limits. The LCA studies on foods refer primarily to the production, either with sustainable (ecological) or traditional agriculture, of raw materials such as cereals,

Table 5. Structure of LCA suggested by the Society of Environmental Toxicology and Chemistry (SETAC) [6, 49] Analysis:

1. Goal de®nition and scope 2. Inventory Analysis Assessment: 3. Impact assessment, which is divided into:  3a. Classi®cation  3b. Characterization  3c. Valuation (qualitative, quantitative) 4. Improvement analysis

fruits and vegetables and processed foods (dairy products and alcoholic drinks) [49±61]. In some cases i.e. pop corn the performance of packaging materials was assessed [62]. In the feedstock recycling and energy recovery sectors, the blast furnace process, thermolysis using the BASF process, monocombustion, for which pilot plants are only available abroad at present, and hydrogenation at the Kohle-Ol-Anlage are in the top group. Consequently, classi®cation into mechanical recycling, feedstock recycling and energy recovery techniques is merely process-orientated and does not constitute an ecological evaluation [50]. Reports on life cycle assessments including other parts of the food production system are still rare [49]. LCA in the future In today's society, there is an increasing awareness that the lifestyle has to be oriented toward more sustainable production systems, with limited use renewable resources and minimal environmental impact on land , water, and air [49]. The approach to reconvergence of human progress and health of the environment, makes all processes and products/by-products to be literally visualised as potential resources within the frame of a continuous regenerative loop [6].

Should companies get started with ISO 14000 now?

An e€ective EMS/ ISO 14000 in place represents a valuable tool for companies because they can better address growing environmental protection pressures, help minimize legal/®nancial liabilities, reduce compliance costs, enhance stakeholder image and gain competitive advantage. ISO 14000 also provides the framework for designing more environmentally benign processes and products [41]. Numerous proactive companies have already realized the competitive bene®ts of superior environmental performance. In the waste minimization/pollution prevention arena, reduced operating costs and cost avoidance opportunities have resulted in lower cost structures relative to competitors and corresponding market share gains and bottom line improvement. Design-for-environment strategies applying life-cycle concepts are emerging, and new products are selectively achieving market successes so long as the market pricing structure is carefully considered. Overall, ISO 14000 implementation will provide a framework for improving regulatory compliance and for supporting environmental protection decisions in balance with other socioeconomic needs. ISO 14000 will provide the building blocks for improving the environmental performance of an enterprise's activities and products consistent with sustainable development and natural economics principles. Although the ISO 14001 standard does not adopt a strict ecological approach to addressing issues as pro-

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posed by the exreme ecology movement, it provides the fundamental principles for reducing the environmental risks and remains within the reach of all companies. According to some predictions ISO 14001's impact on business will be revolutionary. ISO 14001 requires ®rms to assess environmental impacts, train workers about their environmental responsibilities, audit environmental management systems to ensure they comply with ®rm environmental policies, and document audit ®ndings. ISO 14001 will not necessarily steer ®rms in the direction of environmentally sustainable practices, however. It is not at all unrealistic to expect that compliance with ISO 14000 will be a requirement of doing business in the future. And the bene®ts of such will be far-reaching, including increased operations eciency; assistance with ensuring regulatory compliance by providing an overall system incorporating those that are applicable; and facilitating business relationships [62].

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