This is an excerpt from one of my latest contributions.
Suggested citation: Camilleri, M.A. (2022). The rationale for ISO 14001 certification: A systematic review and a cost-benefit analysis, Corporate Social Responsibility and Environmental Management, https://doi.org/10.1002/csr.2254
During the Paris Climate Conference (COP 21), one hundred ninety-six (196) countries pledged their commitment to implement environmental performance measures to reduce the effects of climate change. This conference has led to the development of the ‘Paris Agreement’ where signatories became legally bound to limit global warming to below 2°C, and possibly 1.5°C (Palea & Drogo, 2020; Secinaro, Brescia, Calandra & Saiti, 2020). They recognized the importance of averting and minimizing the environmental impact that is caused by climate change, by scaling up their efforts and support initiatives to reduce emissions, by building resilience among parties, and by promoting cooperation (Birindelli & Chiappini, 2021; Gatto, 2020).
In the aftermath of COP 21, many countries submitted their plans for climate action (these plans are also known as nationally determined contributions – NDCs), where they communicated about their tangible actions that were aimed to reduce their greenhouse gas emissions and the impacts of rising temperatures (Fatica & Panzica, 2021; Gerged, Matthews & Elheddad, 2021). Consequentially, intergovernmental organizations including the European Union (EU), among others, are increasingly establishing ambitious carbon neutrality goals and zero-carbon solutions to tackle climate change issues (Benz, Paulus, Scherer, Syryca & Trück, 2021).
Many countries are incentivizing businesses across different economic sectors, to reduce their emissions. For example, the EU member states are expected to reduce their greenhouse gas emissions by 40% before 2030, and by 60% prior to 2050 (EU, 2019). These targets would require the commitment of stakeholders from various sectors including those operating within the energy and transportation industries, among others.
The latest climate change conference (COP26) suggested that progress has been made on the signatories’ mitigation measures that were aimed to reduce emissions, on their adaptation efforts to deal with climate change impacts, on the mobilization of finance, and on the increased collaboration among countries to reach 2030 emissions targets. However, more concerted efforts are required to deliver on these four pledges (UNFCC, 2021).
This contribution raises awareness on the use of environmental management standards that are intended to support organizations of different types and sizes, including private entities, not-for-profits as well as governmental agencies, to improve their environmental performance credentials. A thorough review of the relevant literature suggests that, over the years many practitioners have utilized the International Standards Organization’s ISO 14001 environment management systems standard to assist them in their environmental management issues (Baek, 2018; Delmas & Toffel, 2008; Erauskin‐Tolosa, Zubeltzu‐Jaka, Heras‐Saizarbitoria & Boiral, 2020; Melnyk, Sroufe & Calantone, 2003).
Many academic commentators noted that several practitioners operating in different industry sectors, in various contexts, are implementing ISO 14001 requirements to obtain this standard’s certification (Boiral, Guillaumie, Heras‐Saizarbitoria & Tayo Tene, 2018; Para‐González & Mascaraque‐Ramírez, 2019; Riaz, & Saeed, 2020). Whilst several researchers contended about the benefits of abiding by voluntary principles and guidelines (Camilleri, 2018), others discussed about the main obstacles to obtaining impartial audits, assurances and certifications from independent standard setters (Hillary, 2004; Ma, Liu, Appolloni & Liu, 2021; Robèrt, Schmidt-Bleek, Aloisi De Larderel … & Wackernagel, 2002; Teng & Wu, 2018).
Hence, this research examines identifies the rationale for ISO 14001 certification (Carvalho, Santos & Gonçalves, 2020; Eltayeb, Zailani & Ramayah, 2011; Lee, Noh, Choi & Rha, 2017; Potoski & Prakash, 2005) that is supposedly intended to improve the organizations’ environmental performance and to enhance their credentials. Specifically, this contribution’s objectives are threefold. Firstly, it provides a generic background on voluntary instruments, policies and guidelines that are intended to promote corporate environmentally responsible behaviors. Secondly, it presents the results from a systematic review of academic articles that were focused on ISO 14001 – environment management systems. Thirdly, it synthesizes the findings from high impact papers and discusses about the benefits and costs of using this standard. In conclusion, it elaborates on the implications of this research, it identifies its limitations and points out future research avenues.
In sum, this contribution differentiates itself from previous articles, particularly those that sought to investigate the introduction and implementation of environment management systems in specific entities. This research involves a two-stage systematic analysis. It appraises a number of empirical investigations, theoretical articles, reviews, case studies, discursive/opinion papers, from 1995-2021. Afterwards, it scrutinizes their content to shed more light on the pros and cons of using ISO 14001 as a vehicle to improve corporate environmental performance.
This paper can be downloaded, in its entirety, through ResearchGate: https://www.researchgate.net/publication/358557458_The_rationale_for_ISO_14001_certification_A_systematic_review_and_a_cost-benefit_analysis