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Law/Courtroom News - October 2003

ISO 14001 Registration is Good for the Environment
and Business

By David Korman

David Korman is safety and environmental manager for Skanska USA Building Inc. in Parsippany, New Jersey.

The construction industry is slowly, but surely, going green in response to the environmental interests and requirements of government agencies, owners, suppliers and investors, as well as the spiraling costs of waste disposal. Those who have taken the next step - pursuing voluntary registration to ISO 14001 - recognize that it is not only good for the environment, but it is also good for business.

Developed by the International Organization for Standardization (ISO), ISO 14001 is an international voluntary standard designed to enable an organization to improve its environmental practices through development of an effective environmental management system (EMS). The EMS must provide a flexible framework to evaluate a firm’s activities, identify the environmental aspects that will be managed for each project, and create a document that will guide project team members in enhancing a project’s environmental performance and preventing environmental impacts.

This systematic approach emphasizes the broad issue of environmental protection rather than focusing solely on meeting specific regulatory requirements. It requires companies to conduct internal audits and monitor performance against established objectives and targets. In fact, a key difference between the EMS approach and the traditional environmental compliance approach is that EMS represents a collective, company-wide commitment to environmental protection led by top management.

Multiple Components As outlined in the ISO 14001 standard, an EMS has five components:

• Policy. The statement of the firm’s commitment to continual improvement of the environmental management system, prevention of pollution and regulatory compliance.

• Planning. Identification of the environmental aspects associated with the firm’s operations, including specific goals and plans.

• Implementation and Operation. Assignment of responsibility, employee training, communications, documentation, emergency preparedness and response.

• Checking and Corrective Action. Procedures to measure and record achievements against the firm’s goals and identify and track deficiencies.

• Management Review. A formal review of the program’s effectiveness by the firm’s senior managers

An Emerging Trend In the United States, if a company wishes to have its EMS registered to the ISO 14001 standard, it must contract with a registrar accredited through the ANSI-RAB (American National Standards Institute and Registration Accreditation Board), which will evaluate its written EMS and perform periodic on-site surveillance audits. The audit must be performed at least once a year, and re-registration of the EMS is required every three years.

Unfortunately, there is no “blueprint” for development of an EMS to meet the standard.

Fortunately, guidance is on the way for companies interested in ISO 14001 registration. Several months ago, the U.S. Environmental Protection Agency and the Associated General Contractors of America assembled a task force - including three representatives of Skanska - to develop a model EMS for the construction industry.

Some companies may be reluctant or unable to incur the expenses associated with ISO 14001 registration. Instead, they may develop expertise in sustainable building design and construction practices and market themselves as a green building company. Others may develop an environmental management program without seeking registration. These are positive steps.

The systematic approach to environmental management offers several important advantages: it minimizes risks, liabilities, adverse press and potential punitive damages; increases operating efficiency and waste management; and identifies the company as a market leader in environmental protection, safety, health and quality.
That’s good for the environment and good for the bottom line.

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