First, let’s review the definitions for aspects and impacts. ISO 14001 defines an aspect as an “element of an organization’s activities or products or services that interacts or can interact with the environment” and an impact as a “change to the environment, whether adverse or beneficial, wholly or partially resulting from an.
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IntroductionIn September 2015, the International Organization for Standardization published an updated version of the ISO 14001 environmental management system (EMS) standard. The revised standard (ISO ) requires that current certificate holders transition to the requirements of the new standard over a three year period. The transition period will end in September 2018, meaning that the ISO standard will cease to exist after September of 2018.While the new standard emphasizes many of the core themes from the ISO standard, it incorporates a new organizational structure (i.e., Annex SL) to facilitate development and implementation of integrated management systems, and introduces new themes that address sustainability considerations as well as integration of the EMS into an entity's business processes. This article addresses how risks and opportunities are integrated into an effective EMS. Requirements to Address Risk and OpportunityHow does the ISO standard specifically address risks and opportunities? There is relevant language in several clauses of the standard and associated guidance in the Annex that addresses these new provisions. These areas are discussed below, with insight into why they may be challenging.Actions to Address Risks and OpportunitiesThese clauses underscore the need to determine risks and opportunities related to environmental aspects, compliance obligations, and other issues and requirements.
While most entities already address risk (i.e., threats) through its process to identify aspects/impacts and to determine significant aspects, identifying opportunities (i.e., beneficial effects) is not commonplace and can be more elusive. 1 Compliance obligations can result in risks and opportunities to an organization, and identified risks and opportunities affect planning actions as well.
The standard emphasizes that a formal risk assessment is not required for conformance and whether the organization can exert control or influence as one basis for addressing risks and opportunities.Environmental ObjectivesThe standard requires that an organization establish environmental objectives based on significant environmental aspects, compliance obligations, and considering its risks and opportunities. Objectives can be designed to mitigate an undesirable impact (e.g., reduce emissions) or to leverage a desirable outcome (e.g., increase use of renewable energy) and are established so that the organization can achieve the intended outcomes for the EMS. Companies may already be addressing this to some degree, although predicated on adverse impacts and/or potential compliance issues.Management ReviewThe management review is an integral part of reviewing the suitability, adequacy, and effectiveness of the EMS. Reviewing changes in risks and opportunities is a new and essential component of the EMS that needs to be considered during the management review.Annex to the Standard - Actions to Address Risks and OpportunitiesThis Annex emphasizes the importance of determining an organization's risks and opportunities and planning action to address them. These can apply to environmental aspects, with adverse or beneficial environmental impacts; compliance obligations, by failing to comply or performing beyond compliance; or other issues, to address the needs and expectations of interested parties that may affect the ability to achieve intended outcomes of the EMS.Annex to the Standard - Operational Planning and ControlThe type and extent of operational control(s) depends on the operations themselves, as well as significant environmental aspects, compliance obligations, and risks and opportunities.
This applies to an organization's own operations, as well as business processes intended to control or influence outsourced processes or providers of products and services.How to Assess Risk and OpportunityHow does an organization take risk and opportunity into consideration given that EHS management tends to focus on mitigating or eliminating threats? Consider thinking about risk vs.
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Opportunity as one would change mindset from a “glass half empty” to a “glass half full.” Opportunity is the flip side of risk, where one considers both positive and negative outcomes. Considering both risks and opportunities necessitates taking an enterprise risk view, where EHS risks are integral to traditional business risks. 2 Consider an oil and gas or mining company that prospects for oil and gas or ore. These companies take risks to identify natural resources, which requires investment and consumes company resources.
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