Examining ISO 14001 & ISO 45001

Our work with clients reflects this same trend by country. We see our Japanese and Chinese clients engaging much more with ISO Certification, most having integrated management systems to multiple ISO Standards, even beyond those related to EHS. We also see that our European clients are increasingly more likely to have certified ISO management systems in place.  

On the other side of the spectrum, many of our US multi-national clients aren’t as far along on their certification journey as other regions, except for their operations in Asia and Europe. In line again with the ISO Survey numbers, many US clients ensure ISO certification in place for their Asia/European operations, showing that geography plays an important part in their decisions regarding ISO certification. 

Scope of sectors for ISO 14001 & ISO 45001

Contrary to geographical location, it’s more difficult to draw clear conclusions about industry-specific trends for ISO 14001 and ISO 45001. From the range shown by the Survey’s breakdown, most certificates don’t have a specific sector attributed.

ISO 14001 & ISO 45001 unknown sectors

In the case of ISO 14001, 122,814 are recorded under “Sector unknown”. For ISO 45001, it’s 89,665. However, there are still takeaways regarding ISO certification’s trajectory.  

Among those sectors that are specified in the Survey, we see that the construction sector ranks at the top for both ISO 14001 and ISO 45001. Additionally, manufacturing and production sectors, including metal fabrication, engineering, plastics, and rubber production all fall within in the top 10 for both standards. Certainly, that’s to be expected. EHS culture is well embedded in these sectors. However, certification is now expanding to encompass a wider range of sectors.

The relatively newer sector if Information Technology is embracing Environmental Management Systems certification in a wholehearted manner. So much so that it’s close behind other, more expected sectors for ISO 14001. Additionally, we also see a major uptick in the number of traditionally office-based service companies becoming ISO certified. 

The supply chain link to ISO 14001 & ISO 45001

By overlaying Standard, Geography, and Sector, it’s simple to identify what’s important where — and then to extrapolate the various drivers. One of those key catalysts is stakeholder assurance. What started out as a differentiator is now seen as a must have. 

Supply or value chain drivers within particular sectors and geographical locations are largely responsible for growing the number of certifications. Not having an ISO-Certified Management System could prove to be a major barrier to doing business in some sectors. For example, within Asian manufacturing sectors, ISO certification is close to being a “ticket to trade” (hence the much larger number of certifications recorded in this region compared to Europe or the US).

Evidence and ESG in ISO certification

John Bez explains how ISO 14001 or ISO 45001 bring a lengthy list of benefits to a company — one of which being “Enhanced corporate image and credibility with enhanced protection against non-compliance and its resulting reputation damage”. With a rapidly intensifying focus on ESG and Sustainability metrics, ISO Certification’s importance is skyrocketing.  

While still mostly voluntary for the moment, Corporate Reporting is becoming more and more a must do for companies. In fact, it’s on the fast track to becoming mandatory. ISO 14001 and ISO 45001 certifications can play a major role in providing a bedrock for ESG and Sustainability metrics.  

At the moment, stakeholders, suppliers, consumers, and investors expect companies to prove their corporate responsibility credentials by all means possible. These certifications show that you’ve been independently verified and certified for the requirements laid down by the ISO Standard. This involves providing direct evidence of how you manage your EHS obligations and how you embed that program within your business.  

The absence of mandated requirements to show ESG credentials leaves companies to piece together the right proof on their own. However, ISO certification serves to fill that gap in guidance — or at least a portion of it. As such, ISO 14001 and ISO 45001 have both become a solid bedrock to build your Corporate Reporting, be it voluntary or mandatory.