what benefits do smes get from iso 14001?...year of iso 14001 certification: 2008 period to...
TRANSCRIPT
Dr Ruth Hillary
What benefits do SMEs get from ISO 14001?
Results from a Defra funded
study by WYG
Dr Ruth Hillary - [email protected]
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]
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]
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]
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
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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
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“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]
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
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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
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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.
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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]
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]
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]