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The Savills Blog

In plain English ISO 14001 Environmental Management Systems

With so much focus, and rightly so, on net zero and decarbonisation, it can be difficult to know where to begin to reduce the environmental impact of operations beyond the low hanging fruit of energy efficiency.

For instance, how do you know where to start when quantifying, managing and minimising other direct and indirect environmental impacts? How do you ensure legal compliance with the vast array of existing and new legislation? This is where an environmental management system certified to the ISO 14001 standard can be of huge benefit.

What is ISO 14001?

This internationally recognised standard sets out the requirements an organisation can use to enhance its environmental performance, manage environmental risks and build on opportunities that are identified during the implementation process.

Environmental objectives and targets for improvement are defined, with the processes put in place to achieve these goals. ISO 14001 acknowledges that for targets to be realised there needs to be commitment across an organisation, and in particular from senior management who control physical and financial resources. Therefore, it is a critical requirement of the standard to get management buy-in and to be able to demonstrate this during an audit.

What is the scope of ISO 14001?

ISO 14001 can be scoped to suit different needs and requirements. Landlords may choose to use a system purely to consider property management issues, whereas occupiers and investors may choose it to frame their entire corporate approach to environmental management.

What are the benefits for real estate?

ISO 14001 is widely recognised by investors, asset managers, property managers and occupiers as a key indicator of commitment to addressing environmental impacts. It is frequently requested by occupiers when choosing a new property and by potential customers wanting validation of an organisation’s environmental credentials.

For landlords and occupiers achieving the standard has many benefits:

  • Improved operational efficiency achieved by enhanced monitoring, and subsequent reductions in energy and water consumption and waste volumes, which can yield significant financial benefits.

  • Assurance of compliance with environmental legislation with reduced risk of incidents, fines and reputational damage through proactive environmental management.

  • Improved engagement with senior management, staff, contractors and occupiers on environmental issues.

  • A framework to protect the environment and respond to changing environmental conditions.

  • Applying a continual improvement model in the management of a property’s environmental risks and performance ensures relevant issues and opportunities for change are always on the agenda, reducing the threat of obsolescence.

  • Enhanced marketability as a result of improved environmental credentials.

What is the process for achieving certification?

  • Demonstration of commitment and leadership from senior management, for example policy commitment, setting environmental objectives.

  • Evaluation of significant environmental impacts.

  • Establishment of procedures, processes, operating controls and emergency procedures to manage risk and performance.

  • Internal and external communication and training

  • Evaluation of results, such as  performance reporting, internal audits (at least annually).

  • Commitment to the cycle of continual improvement.

  • External audit and verification. The certification lasts three years, subject to annual surveillance audits.

Ultimately, by adopting ISO 14001 the journey to net zero and minimising our environmental footprint should become a little bit easier because we will know exactly what we have to do to achieve it.

 

Further information

Contact Lydia Burdett

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