A New Standard Finished sweating through your ISO 9000 certification? Time to think about ISO 14001.

In 1998, SWD Inc. was one of the first U.S. companies to boastcertification under the ISO 14001 environmental standard. With itsautomotive customers asking the 105-person Addison, Illinois,metal-finishing company to follow ISO 9000 quality standards, thethen-new environmental certificate looked like the natural nextstep. "Because of the industry we're in, we have to dealwith environmental laws on a continuing basis anyway," saysvice president Tim Delawder, 35, whose father started SWD in1980.

Today, more than 1,500 U.S. firms are under the ISO 14001banner. While they make up a tiny fraction of American businesses,the number was up 23 percent during 2001. That doesn't rivalEurope and Asia, however. The roster of 14001-certified Japanesecompanies was up 50 percent in 2001 to nearly 8,000.

Why the interest? ISO 14001 is the environmental cousin of theISO 9000 quality certificates carried by close to a half-millioncompanies worldwide. The Geneva-based International Organizationfor Standardization, author of both, wrote ISO 14001 to specify howcompanies should set up, maintain and continually improve anenvironmental management system (EMS). The EMS helps companiesmonitor and measure the impact on air, water and soil of vehicleand smokestack emissions, noise, vibration, radiation and otherfallout of business products and activities.

ISO 14001 doesn't define companies' environmentalimpact. Rather, it requires them to analyze environmental aspectsof their products and services and then, based on local regulationsand other considerations, set goals for controlling and improvingthat impact. For example, a company that determines its high wateruse has a negative environmental impact may change processes toconserve water.

SuppliersDemand
Interest in ISO 14001 picked up in 1997, a year after the standardwas released, when General Motors and Ford said their supplierswould have to follow it, says Susan Gilbert-Miller, director ofenvironmental services for the Chicago Manufacturing Center, agovernment-funded consulting organization. Many now believe thecertification will be essential for entering new markets,especially automotive, European and Asian ones. But that's notwhy Delawder likes it. "Don't expect to get business outof it," he says. "At this point, it's more of a toolto make your organization stronger. If I produce more product withless water, energy and chemistry, I've just savedmoney."

Savings aren't free, however. You'll see auditing andregistration fees of about $9,000, says Gilbert-Miller. Every sixmonths auditors must visit again, an ongoing cost of about $6,000each time.

Also, SWD's certification was preceded by more than a yearof weekly four-hour meetings involving 10 managers and employees."It was a pretty big undertaking," says Delawder. Thelowest total estimates for a company to implement the ISO 14001standard, including labor and management time, are about $35,000,Gilbert-Miller says.

The first step in seeking ISO certification is hiring aconsultant. Find consultants with expertise in ISO 14001 throughstate or local environmental protection agencies, small businessdevelopment centers or the ISO's Web site at www.iso.ch. Next assess thecompany's environmental impact, devise goals for improvementand come up with ways to control and measure that improvement. Thencome the regular environmental audits.

Overall, ISO 14001-related savings are about equal to the costs,says Delawder. But he says the investment is worth it because itimproves environmental awareness among employees, reduces risks ofviolating regulations and improves the company's image amongcustomers and members of the community.

From being an industrial enterprise that was viewed withsuspicion by some local residents, SWD has become something of ashowplace for environmental awareness. Delawder has brought inschool groups and allowed other business people to study SWD'soperation. And not long ago he did something that, for a metalfinisher, is unheard of. "I let an environmental group tourus," he says. "Ten years ago, I would have said,'Where's your search warrant?'"

Contact Source

• SWD Inc.
  (630) 543-3003, ext. 423, www.swdinc.com