Benefits

ISO 14001 was developed primarily to assist companies with a framework for better management control that can result in reducing their environmental impacts. In addition to improvements in performance, organizations can reap a number of economic benefits, including higher conformance with legislative and regulatory requirements (Sheldon 1997) by adopting the ISO standard. By minimizing the risk of regulatory and environmental liability fines and improving an organization’s efficiency (Delmas 2009), benefits can include a reduction in waste, consumption of resources, and operating costs. Secondly, as an internationally recognized standard, businesses operating in multiple locations across the globe can leverage their conformance to ISO 14001, eliminating the need for multiple registrations or certifications (Hutchens 2010). Thirdly, there has been a push in the last decade by consumers for companies to adopt better internal controls, making the incorporation of ISO 14001 a smart approach for the long‐term viability of businesses. This can provide them with a competitive advantage against companies that do not adopt the standard (Potoski and Prakash 2005). This in turn can have a positive impact on a company’s asset value (Van der Veldt 1997). It can lead to improved public perceptions of the business, placing them in a better position to operate in the international marketplace (Potoski and Prakash 2005; Sheldon 1997). The use of ISO 14001 can demonstrate an innovative and forward‐thinking approach to customers and prospective employees. It can increase a business’s access to new customers and business partners. In some markets it can potentially reduce public liability insurance costs. It can serve to reduce trade barriers between registered businesses (Van der Veldt 1997). There is growing interest in including certification to ISO 14001 in tenders for public–private partnerships for infrastructure renewal. Evidence of value in terms of environmental quality and benefit to the taxpayer has been shown in highway projects in Canada.

ISO 14001 addresses not only the environmental aspects of an organization’s processes but also those of its products and services. Therefore, ISO/TC 207 has developed additional tools to assist in addressing such aspects. Life‐cycle assessment (LCA) is a tool for identifying and evaluating the environmental aspects of products and services from the “cradle to the grave”: from the extraction of resource inputs to the eventual disposal of the product or its waste. The ISO 14040 standards give guidelines on the principles and conduct of LCA studies that provide an organization with information on how to reduce the overall environmental impact of its products and services. ISO 14064 parts 1, 2, and 3 are international greenhouse gas (GHG) accounting and verification standards which provide a set of clear and verifiable requirements to support organizations and proponents of GHG emission reduction projects.