what benefits do smes get from iso 14001?...year of iso 14001 certification: 2008 period to...

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Dr Ruth Hillary What benefits do SMEs get from ISO 14001? Results from a Defra funded study by WYG Dr Ruth Hillary - [email protected]

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Page 1: What benefits do SMEs get from ISO 14001?...Year of ISO 14001 certification: 2008 Period to Implement EMS: 12 months Key Successes Annual energy saving of 91,458kWh after 4 years Annual

Dr Ruth Hillary

What benefits do SMEs get from ISO 14001?

Results from a Defra funded

study by WYG

Dr Ruth Hillary - [email protected]

Page 2: What benefits do SMEs get from ISO 14001?...Year of ISO 14001 certification: 2008 Period to Implement EMS: 12 months Key Successes Annual energy saving of 91,458kWh after 4 years Annual

Presentation Outline

Context

Project aims and methods

Benefits of ISO 14001 in SMEs

Certification – views

2 SME case studies

A few conclusions

Dr Ruth Hillary - [email protected]

Page 3: What benefits do SMEs get from ISO 14001?...Year of ISO 14001 certification: 2008 Period to Implement EMS: 12 months Key Successes Annual energy saving of 91,458kWh after 4 years Annual

Context and Background

Context

SMEs vital to local and national economy

99.9% of all enterprises in UK are SMEs (c. 2.9 million, accounting for 59.8% of private sector jobs)

SMEs exert pressures on the environment may lack capacity to address

Background for Project

Some evidence suggests EMSs help SMEs manage impacts, reap market benefits and delivering cost savings

Limited numbers of SMEs adopting EMSs

Market Failure?

Dr Ruth Hillary - [email protected]

Page 4: What benefits do SMEs get from ISO 14001?...Year of ISO 14001 certification: 2008 Period to Implement EMS: 12 months Key Successes Annual energy saving of 91,458kWh after 4 years Annual

Project Aims and Method

Aims

Defra funded project to contribute to sustainable green economy

Robust evidence base to stimulate EMS market amongst UK SMEs

Quantitative and Qualitative assessment of:

Drivers

Benefits (focus of this presentation)

Barriers

Method

Quantitative and Qualitative data collected during on-site visits at SMEs

Sector approach (Manufacturing and Service)

Published in 2011 Available on line

Dr Ruth Hillary - [email protected]

Page 5: What benefits do SMEs get from ISO 14001?...Year of ISO 14001 certification: 2008 Period to Implement EMS: 12 months Key Successes Annual energy saving of 91,458kWh after 4 years Annual

Sample

Sample by Enterprise Size and Sector

Limitations – sample size and self-selecting participants

EMS type

28 - ISO 14001

3 - BS 8555/Acorn

Sector Small Enterprise

Medium-sized Enterprise

Total

Manufacturing 3 9 12

Service 12 7 19

Total 15 16 31

23 SMEs had ISO 9001

Dr Ruth Hillary - [email protected]

Page 6: What benefits do SMEs get from ISO 14001?...Year of ISO 14001 certification: 2008 Period to Implement EMS: 12 months Key Successes Annual energy saving of 91,458kWh after 4 years Annual

Ranked Benefits

No single benefit stands out but all said benefits outweigh barriers

Top Benefits 1.Improved legal compliance

2.Cost/resource savings (e.g. energy)

3.Marketing credentials

4.Improved working methods

Dr Ruth Hillary - [email protected]

Page 7: What benefits do SMEs get from ISO 14001?...Year of ISO 14001 certification: 2008 Period to Implement EMS: 12 months Key Successes Annual energy saving of 91,458kWh after 4 years Annual

“Soft” Benefits

Benefits to the SMEs general management (26 out of 31)

Proactive management of costs

More structure to areas like induction, document control

Encourage communication

Common goal

Local benefits – community, networking, sharing information

Improved stakeholder relations

Internal – management and staff

External – customers, regulators, neighbours

Dr Ruth Hillary - [email protected]

Page 8: What benefits do SMEs get from ISO 14001?...Year of ISO 14001 certification: 2008 Period to Implement EMS: 12 months Key Successes Annual energy saving of 91,458kWh after 4 years Annual

Financial Benefits

Cost Savings

Certified EMS delivered savings for the majority of SMEs

£4,875 per £m turnover (average annual savings)

Not all achieved savings

New Business

Over a third (21 SMEs) stated new business sales

Average sales value of £14,961 per £m turnover (year after EMS certification)

EMS help secure public sector opportunities (17 out of 31 SMEs)

Key point

Dr Ruth Hillary - [email protected]

Page 9: What benefits do SMEs get from ISO 14001?...Year of ISO 14001 certification: 2008 Period to Implement EMS: 12 months Key Successes Annual energy saving of 91,458kWh after 4 years Annual

CO2 Benefits

Total carbon dioxide equivalent (CO2e) savings calculated for SMEs

For waste, water, energy and business travel (not raw materials)

28 SMEs had adequate data

Average CO2e saving of 38.9 tonnes per £m turnover per SME over 2 years

Carbon savings improved over time

Year 2 figures 59% up on Year 1 figures

Energy

delivered 86%

of the savings

Dr Ruth Hillary - [email protected]

Page 10: What benefits do SMEs get from ISO 14001?...Year of ISO 14001 certification: 2008 Period to Implement EMS: 12 months Key Successes Annual energy saving of 91,458kWh after 4 years Annual

Reflections on Certification

Certification Rational

Commercial reason – customer pressure

Logical completion step for a built system

Credibility

Cost of certification (Data from 29 SMEs):

Range £4,747 to £300. The average cost is £1,653.50

No desire to terminate certification to ISO 14001

There is zero marketing potential for a non-

certified EMS.

Dr Ruth Hillary - [email protected]

Page 11: What benefits do SMEs get from ISO 14001?...Year of ISO 14001 certification: 2008 Period to Implement EMS: 12 months Key Successes Annual energy saving of 91,458kWh after 4 years Annual

Lowater Nursery

Company Details

Sector: Plant Propagation

No. of employees: 24

Turnover: £1.6M

Location: Hampshire

Year of ISO 14001 certification: 2008

Period to Implement EMS: 12 months

Key Successes

Annual energy saving of 91,458kWh after 4 years Annual operational savings of £41,000 Reduced waste to landfill by 82% in 4 years Pioneer of sustainability within horticulture

We have followed our values, the financial savings have been a bonus.

Dr Ruth Hillary - [email protected]

Page 12: What benefits do SMEs get from ISO 14001?...Year of ISO 14001 certification: 2008 Period to Implement EMS: 12 months Key Successes Annual energy saving of 91,458kWh after 4 years Annual

Warren Board Sales

Company Details

Sector: Packaging

No. of employees: 28

Turnover: £17M

Location: Leicestershire

Year of ISO 14001 certification: 2009

Period to Implement EMS: 13 months

Key Successes

Annual energy saving of 36,000kWh - 47% saving 41% reduction in packaging material waste 59% reduced in landfill waste

For us, the EMS was an extension of the sound commercial practices that we’ve

adopted over many years.

Dr Ruth Hillary - [email protected]

Page 13: What benefits do SMEs get from ISO 14001?...Year of ISO 14001 certification: 2008 Period to Implement EMS: 12 months Key Successes Annual energy saving of 91,458kWh after 4 years Annual

Conclusions

SMEs can benefit significantly from ISO 14001

Benefits outweigh the barriers

Push and pull factors are important for ISO 14001 uptake

But despite positive evidence

SMEs are under represented in ISO 14001 certification figures

Will ISO 14001:2015 change this position?

Dr Ruth Hillary - [email protected]