Corporate Sustainability: the value of ISO standards??

04/12/2023

Angeliki Piperidou

With sustainable investing growing quickly and regulations becoming more complex and granular, organizations are under increasing pressure to integrate sustainability into their practices. The International Organization for Standardization (ISO) brings together experts to develop international standards that provide solutions to global challenges by standardizing best practices for organizations. ISO is one of the largest standards developer, with more than 25,000 standards, as of today, covering almost all aspects of technology, management, and manufacturing and all environmental, social, and economic dimensions. Organizations and companies looking to contribute to the UN’s Sustainable Development Goals (SDGs) can use numerous ISO standards as guidelines, as for each Goal, ISO has identified the standards that make the most significant contribution. Although ISO is only providing the standards and does not perform certification, external certification bodies can provide assurance that the product, service, or system in question meets specific requirements. According to the ISO Survey of Management System Standard Certifications (2022), there are more than 1.95 million obtained certifications worldwide, for ISO 9001, ISO 14001, ISO/IEC 27001, ISO 45001, and ISO 50001.??

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Which standards matter the most for corporate sustainability??

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ISO14001 – Environmental Management System (EMS)?

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ISO14001 is an internationally agreed standard that sets out the requirements for an environmental management system, helping organizations improve their environmental performance holistically through resource efficiency and waste reduction. This standard provides a framework for companies to ensure that they minimize their environmental footprint, achieve their environmental goals and objectives, and comply with relevant regulations. Adoption of the ISO14001 standard shows that an organization is committed to gradually improving its environmental performance beyond compliance and brings multiple benefits such as increased stakeholder and customer trust, environmental risk management, cost savings through more efficient use of resources and reduced waste, and operational excellence. ISO14001 can be adopted by organizations of all sizes and across all sectors as it is a more general standard, providing a holistic framework for an Environmental Management System. Moreover, ISO14001 is one of the standards that can be certified by a third-party certification body, allowing organizations to prove that they have a robust EMS.?

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ISO45001 - Occupational health and safety (OH&S)?

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Building on other international standards related to employee safety and working conditions such as the International Labour Organization’s ILO-OSH Guidelines and the ILO’s international labor standards and conventions, ISO45001 can be used by organizations aiming to improve employee safety, reduce workplace risks, and create better and safer working conditions. This framework can relevant for organizations of all sizes and across all industries and it is designed to be integrated into existing management processes. Given that nearly 3 million workers die annually due to work-related accidents and diseases, an increase of more than 5% compared to 2015 according to new ILO estimates, applying the ISO45001 standard can bring multiple benefits to organizations. By putting in place an OH&S Management System, organizations can potentially reduce workplace incidents and increase employee morale and productivity. Moreover, they can reduce costs associated with insurance, improve their reputation, and comply with legal and regulatory requirements. Similarly to ISO14001, organizations can obtain an ISO45001 certification from a third party to demonstrate that they applied the standards in their management system.??

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ISO50001 – Energy Management Systems??

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According to the European Environment Agency (EEA),?energy efficiency means using less energy for the same output or producing more with the same energy input, and minimizing energy waste. Energy efficiency is becoming more and more important for organizations as it is associated with reducing costs while contributing to addressing climate change by reducing GHG emissions. An Energy Management System can help organizations develop and implement an energy policy, set targets for energy use, and develop a plan to measure their performance and reach their energy targets. ISO50001 provides a set of requirements for organizations to develop an effective energy management system that will allow them to use energy more efficiently and improve their energy management. This standard can be applied by any organization and across all industries, however, it would be more relevant for organizations operating in energy-intensive industries. ISO50001 can bring various benefits to companies, including lower energy consumption, reduced environmental impact, enhanced reputation, less energy-related costs and increased competitiveness. Since the publication of ISO50001, other related standards have been developed, including?ISO 50002, Energy audits – Requirements with guidance for use?and?ISO 50004, Energy management systems – Guidance for the implementation, maintenance and improvement of an energy management system.??

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ISO27001 – Information Security Management Systems??

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Managing cyber risks is becoming more and more important for organizations as new threats are emerging. ISO27001 is the world's best-known standard for information security management systems (ISMS), providing companies with guidance to establish effective ISMS. As any business can face information security risks, the standard can be applied by organizations of any size and in any industry. However, it would be more relevant for certain organizations, such as the ones with platform-based business models, operating with a high level of data exchange. The ISO27001 standard can be associated with multiple benefits for organizations, including reduced vulnerability to cyber-attacks, better management of security risks, increased efficiency, and reduced expenses for ineffective defense technology. Similarly to other ISO standards, companies can get an ISO27001 certification from third-party assessment bodies to demonstrate to stakeholders and customers their commitment and ability to manage information securely and safely.?

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ISO26000 – Guidance on Social Responsibility??

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Social Responsibility is becoming more and more important for organizations as a major contributor to sustainable development. The ISO26000 standard is aiming to promote a common understanding of what social responsibility means for organizations and guide them in contributing to sustainable development beyond regulatory compliance. The standard entails 7 core subjects: Organisational governance; Human rights; Labour practices; The environment; Fair operating practices; Consumer issues; Community involvement and development. Operating in a socially responsible manner can bring multiple internal and external benefits for organizations, including increased ability to attract and retain employees and customers, improved reputation, and competitive advantages. Given that ISO26000 is not a management system standard, it cannot be used for certification, but rather as a guideline for organizations to operate in a more sustainable and responsible way.??

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ISO20400 – Sustainable Procurement??

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Procurement can be defined as obtaining or purchasing goods or services, typically for business purposes. It can be associated with impacts not only for the organization itself but also for the environment and society. Thus, an organization’s purchasing decisions can play a crucial role in social responsibility and reduce its negative environmental and social impact. ISO20400, similarly to ISO26000, cannot be certified as it provides guidelines for integrating sustainability into an organization’s procurement processes. However, it can bring multiple benefits for organizations, such as reduced supply chain risks and fewer product-related disruptions, by providing them with necessary guidelines to take into account environmental impact, human rights issues, and supplier relations when making their purchasing decisions. The standard can apply to organizations of all sizes and industries and it was developed taking into account the same principles and core subjects of human rights, labor practices, and fair business practices as the ISO26000 – Guidance on Social Responsibility standard.??

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In conclusion, ISO standards play an important role in guiding companies towards sustainability excellence and can be used as a roadmap for sustainable growth by organizations of different sizes and industries.???