Spotlight on the new climate change considerations in ISO Standards

Following the revision of ISO Standards to incorporate climate change considerations, we look at which standards are impacted, clause updates, and uncover what this means for ISO certified companies. 

Speakers: 

• Curtis Thornton, Business Development Manager, Intertek Business Assurance UKI
• Cheryl Savage, Managing Director,  Management and Risk Solutions Ltd

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Transcript

Curtis [0.10]
Hi and welcome to our latest in our series of Management Systems podcasts.
Today we're going to discuss the amendments ISO has made to many of its standards to incorporate climate change considerations. I'm delighted to be joined once again by management systems expert Cheryl Savage, Managing Director of Management and Risk Solutions, welcome Cheryl.

Cheryl [0.32]
Thanks very much, Curtis, and it's great to be back with you again.

Curtis [0.36]
So let's just start with some background. Why are these requirements being added Cheryl?

Cheryl [0.40]
So in February 2024, ISO published an amendment to all existing management system standards. And it's included in its text now the requirement for an organization “shall”, (which means must) consider climate change and the risks associated with climate change to their own organization and how this may affect its ability to achieve the intended outcomes of its management system.  It’s a requirement in  clause 4.1, which we'll look at in a bit more detail, but to me, most organizations were already considering climate change, but they've now amended it and to be consistent with the London Declaration on Climate Change, it's a clarification that an organization must now consider climate change as part of its context - So 4.1 - internal external issues and also any issues that relate to that that are relevant to its interested parties.  I’m not surprised about the change, it's just made it very more specific and it's asking it and including it as a “shall”.

Curtis  [1.53] 
Which standards are being impacted by this change? 

Cheryl  [2.06]
A lot of people would say ISO 14001 and that family because that's the standard for environmental management. But it has been added to all ISO standards. 

Because of the high-level structure - Annex XL, way back in 2012 when the ISO committees decided to come up with this common structure, Annex XL contained this high-level structure and it said going forward, any changes or any new ISO management system standards will be included in that structure. That structure will stay now, and so it's effective of every ISO management system - ISO 9001,14001,45001,27001 etc. 

Obviously, it will have different meanings and different relevance to each of those standards. So, if we look at Quality and I always think 9001 is more about a business management system, thinking about climate change, it's got to be considered as part of the context for your quality management system, it’s how does climate change affect your business? Well, that could be from the product that you produce, the packaging that you have, it could be the emissions that you're causing and so is it a lot of these things you're already considering.

The interesting part for me is where we now include it in things like interested parties and what interests a party might require from an organization.  In 4.2, how that organization determines what those interested parties requirements are with regards to climate change.

 So, I don't think there's anything outstandingly new because most organizations will be looking at it anyway, it's just now a “shall”, and that means it's a requirement. So where we have a “shall” in a standard, it's a must do and in 4.1 it's now saying the organization shall consider climate change as part of its context of its organization.In short, it actually affects all ISO management system standards going forward, but it will be relevant to that industry, that organization, that business sector and to that management system. So, if an organization only has certification to, say, a quality management system, then you have to think in context of quality of the product, quality of the service, customer requirements, customer satisfaction and how climate change might impact that.  Whereas if we're talking about ISO 45001 Occupational Health and Safety, how might climate change affect an organization's ability to keep people safe, for example. So if you've got a commitment on climate change to reduce your packaging, for example, is that going to affect where you buy your PPE from to make sure you keeping people safe. So it's in context of the organization, but it's also in context of the ISO standard that you are working to.

Curtis [5.13]
That makes a lot of sense. Thank you, Cheryl.
And I think it's important just to reiterate that that yes, it's very much depending on the standard in question, and you have to just make it relevant to said standard.

So, if you can just go into a little bit more detail for our listeners, Cheryl, to understand more about the clauses that are being added to the standards or amended?

Cheryl [5.40]
No problem. People are saying it's 4.1 and 4.2, but obviously 4.1 and 4.2 link into lots of other clauses but the requirement sits in 4.1. So, where it says the organization “shall” determine the external and internal issues that are relevant to its organization and relevant to its management system or intended outcome of its management system. It now explicitly includes the statement that says the organization shall determine whether climate change is a relevant issue. So, it's very, very specific in 4.1.

In 4.2 - Understanding the needs and expectations of interested parties and then 45001 understanding the expectations of workers and interested parties. Again, where it's saying organizations shall determine those interested parties, either the relevant requirements and how they determine them. We've now got an extra requirement in there that says interested parties that may have then a requirement relevant to climate change.

In short, the requirements an organization shall determine whether climate change is an issue, either for its own organization, 4.1 context, whether that's an internal or an external issue or climate change is an external issue because we can't control climate change ourselves. Therefore, its an external issue, and where that affects the ability to achieve the intended outcomes of its management system.  So for quality, customer satisfaction, good product, etc, environment and reducing the environmental impact, we have much more relevant climate changes, occupation, health and safety, ISO 45000 won't be unable to keep people safe. 

And then in 4.2, this is where we think about interested parties and how we determine the needs, expectations of interested parties, we now include any relevant requirements related to climate change. What we can't forget is that these two clauses and then like any clause in an ISO standard, do not sit alone.

So, a key clause again is 4.3 - scope of the management system. And 4.3 scope of the management system says when we define the scope of the management system, we need to think about the internal external issues identified in 4.1 the needs and expectations of the interested parties and determined in 4.2 when we define the scope, so it will impact on that.

And then when we get into section 6, particularly 6.1.1, when we're defining risks and opportunities, it says go back to your 4.1 and go back to your 4.2 and decide whether that becomes a risk or an opportunity for your business.

And so, climate change, I'm guessing, is going be quite high up most organizations risks or opportunities.  just going back to basics, risk is an uncertainty. Well, there's a lot of uncertainty about climate change, but also opportunities. Something you’re going to choose to do to drive some improvement. So climate change may well be a good opportunity for organizations to look at new technologies or produce new products. So, it's not all doom and gloom, and we all have to do something. Otherwise, where will our businesses be.

Curtis [9.08]
Thank you so much for that, and I think it's important just to remember as, as you were quite rightly saying, that even though it's just these clauses that are being added, of course there are still other areas within the standards that is going to be relevant to because there's a lot of connections between each of the clauses.

Now Cheryl I just wanted to touch on something as well. A few clients have been contacting me just to understand a little bit more about the UK emissions trading scheme. Are you able to just elaborate a little bit on what the forthcoming changes within that are going to be?

Cheryl [9.44]
I am not an expert in this, but I happen to be marrying an expert in that topic!
So I asked his opinion and how that might relate to this new requirement to consider climate change.  So, the UK ETS, which was formerly the EU ETS, which is a UK emissions trading scheme, is part of the plan for our Government because it's UK and we know we've potentially got a change in government but I don't think is going change the approach to net zero.

It's part of that and the trading scheme is quite complex, but it only relates to certain industries at the minute. So, it's when you are producing energy from waste and waste incineration mainly, but also about an anything that is combusting. So, anything that you are burning.  The consultation that is running at the minute might impact, and I can't say too much about because I don't know, consultation runs till the 2nd of August this year, and it could then start to see within that scheme other industries as part of the inclusion from waste and waste incineration starting in 2026.

But then there will be further obligations up to 2028 and which will give an organization, if you do fall under the scheme, you don't currently and you will be going forward, a two-year transition period.  It’s a very complex scheme, and it has to be verified rather than certified.

But I think you know; we can't ignore what's happening with climate change and a lot of things to help Governments hit this net zero approach, it will turn into more legislation.  So, if you fall under the scheme, it's part of the permit that you are issued from the Environment Agency, and it needs to be verified and that scope of that scheme will just grow and grow. There will also, I'm pretty sure, be other new and changes to legislation regarding to climate change, environmental issues, etc.

It it's also quite interesting to note that I think being the trainer, quality was the number one training course for a long time. In 2018, 45001 became a really serious training course requirement, and 14001 now is ramped up beyond belief because a lot of organizations are using 14001 to have them meet their legal requirements, but also for them to implement a structured management system and to help them reduce their carbon footprint, to help them reduce their environmental impact and improve their overall environmental performance. Because at the end of the day, we all have to. So, the inclusion of this ‘shall consider climate change’ is very relevant.

Curtis [12.51]
Thank you very much, Cheryl. Now there may well also be a lot of our listeners already certified to ISO standards. So how will companies already certified to any ISO, be impacted?

Cheryl [13.10]
I think because it’s a ‘shall’, then we need to make sure that we understand the shall is we must do this, but it is a consider and two kind of go, OK, so I've considered it don't need to enter about it.  Tongue in cheek, yes.  If you can demonstrate you considered it, but you're not going do anything about it, then you meet the requirements of 4.1 and 4.2. 

Will there need to be a transition period? No. Will your external auditor be looking at what you've done about it? Absolutely. And there is no time scale for transition like there is if there's a big change to a standard, but because it's an inclusion now, then external auditors will be looking at how have you considered climate change? Because it's a ‘shall’, but there's no transition period, and as I said, right at the beginning of this podcast, for most organizations it's being considered anyway.

OK, so we might need to look at and again one of the requests in 4.1 which a lot of organizations tend to forget, it says we will monitor and review the changes to the internal external issues. So as an external auditor myself and as a consultant, I'll be looking at when we review our changes, to any internal external issues we incorporate climate change then. More importantly for me, it's how those changes and those considerations lead into 6.1 on how they have determined where this becomes a risk or an opportunity for the organization. 

So, no significant change in the way that we do it, it's an addition of something. So again, if I'm teaching you or as a consultant, I'd probably do a SWOT analysis or a PESTLE analysis. If we do a PESTLE analysis, then we're already considering environmental issues. And an environmental issue is climate change. So, most organizations, I don't think will need to change anything, they will already be doing it. But your external auditor will absolutely be looking for evidence that you have considered it.

Curtis [15.19]
That's great. Thank you again, Cheryl.

So just to conclude then, incorporating climate considerations into ISO standards is crucial because it ensures that businesses adopt sustainable practices, enhancing their resilience to climate impacts and contributing to global environmental protection efforts.

So if you would like more information about the changes, you can visit http://www.iso.org and for help with ISO certification or training you can get in touch with ourselves via ukenquiries@intertek.com
 
Thank you very much for listening and have a great day.

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