ISO 14001:2015 Clause 4.1 Understanding the organization and its context

ISO 14001:2015 12 Minutes

ISO 14001:2015 Requirements

The organization shall determine external and internal issues that are relevant to its purpose and that affect its ability to achieve the intended outcomes of its environmental management system. Such issues shall include environmental conditions being affected by or capable of affecting the organization.

As per Annex A (Guidance on the use of ISO 14001:2015 standard) of ISO 14001:2015 standard it further explains:

The intent of 4.1 is to provide a high-level, conceptual understanding of the important issues that can affect, either positively or negatively, the way the organization manages its environmental responsibilities. Issues are important topics for the organization, problems for debate and discussion or changing circumstances that affect the organization’s ability to achieve the intended outcomes it sets for its environmental management system.
Examples of internal and external issues which can be relevant to the context of the organization include:
a) environmental conditions related to climate, air quality, water quality, land use, existing contamination, natural resource availability and biodiversity, that can either affect the organization’s purpose, or be affected by its environmental aspects;
b) the external cultural, social, political, legal, regulatory, financial, technological, economic, natural and competitive circumstances, whether international, national, regional or local;
c) the internal characteristics or conditions of the organization, such as its activities, products and services, strategic direction, culture and capabilities (i.e. people, knowledge, processes, systems).
An understanding of the context of an organization is used to establish, implement, maintain and continually improve its environmental management system (see 4.4). The internal and external issues that are determined in 4.1 can result in risks and opportunities to the organization or to the environmental management system (see 6.1.1 to 6.1.3). The organization determines those that need to be addressed and managed (see 6.1.4, 6.2, Clause 7, Clause 8 and 9.1).

1) The organization shall determine external and internal issues that are relevant to its purpose and that affect its ability to achieve the intended outcomes of its environmental management system.

Determining internal and external issues relevant to an Environmental Management System (EMS) involves a systematic process of analysis and assessment. Here’s a step-by-step guide on how an organization can determine these issues:

  1. Leadership Involvement: Ensure that top management and leadership are committed to understanding the environmental context of the organization. This commitment provides the necessary resources and support for the analysis.
  2. Establish a Team: Create a cross-functional team responsible for identifying internal and external issues. This team should include individuals with knowledge of various aspects of the organization, such as environmental compliance, operations, legal, and strategic planning.
  3. Stakeholder Analysis:
    • External Issues: – Identify and list the organization’s key external stakeholders. These can include regulatory agencies, customers, suppliers, neighboring communities, environmental organizations, and the public. – Analyze the interests, concerns, and expectations of these stakeholders regarding the organization’s environmental performance. – Consider how these external stakeholders can influence or be influenced by the organization’s environmental activities.
    • Internal Issues: – Evaluate the organization’s internal processes, procedures, and operations that have an impact on the environment. – Identify internal resources and capabilities related to environmental management, such as staff expertise, technology, and financial resources. – Consider the organization’s culture, values, and attitudes toward environmental responsibility.
  4. Environmental Aspects Identification:
    • Identify the specific environmental aspects associated with the organization’s activities, products, and services. These are the elements of the organization’s operations that can interact with the environment.
    • Assess the significance of each environmental aspect in terms of its potential environmental impact.
  5. Legal and Regulatory Analysis:
    • Identify and understand the relevant environmental laws, regulations, and standards applicable to the organization’s operations.
    • Evaluate compliance with these legal requirements and assess any potential risks or liabilities.
  6. SWOT Analysis: Conduct a SWOT (Strengths, Weaknesses, Opportunities, Threats) analysis to assess how internal and external issues can affect the organization’s environmental management. This helps identify areas for improvement and potential strategic advantages.
  7. Documentation: Document the results of the analysis in a comprehensive environmental context analysis report. This report should include a summary of identified issues, their significance, and their potential impact on the EMS and environmental performance.
  8. Review and Update: Regularly review and update the analysis to ensure that it remains current and relevant. Environmental contexts can change due to new regulations, stakeholder concerns, or shifts in the organization’s operations.
  9. Integration: Integrate the findings from the environmental context analysis into the organization’s EMS. Use this information to set environmental objectives, targets, and action plans that align with the identified issues and opportunities.

By following these steps, an organization can determine its internal and external issues relevant to its Environmental Management System and develop a more effective and tailored approach to environmental management. This process not only helps ensure compliance with ISO 14001 but also enhances the organization’s environmental performance and sustainability efforts.

Internal and external issues that can affect an organization’s ability to achieve the intended outcomes of its Environmental Management System (EMS) can vary widely depending on the nature of the organization, its industry, and its specific environmental context. Here are some examples of both internal and external issues:

Internal Issues:

  1. Resource Constraints: Limited financial resources, inadequate staffing, or insufficient technology and equipment can hinder the organization’s ability to implement and maintain effective environmental management practices.
  2. Lack of Employee Engagement: A disengaged or uninformed workforce may not fully support or participate in environmental initiatives, making it challenging to achieve environmental objectives.
  3. Inadequate Training: Insufficient training on environmental procedures and practices can lead to errors and non-compliance with environmental regulations.
  4. Operational Inefficiencies: Inefficient production processes or excessive waste generation can negatively impact the organization’s environmental performance.
  5. Cultural Barriers: An organizational culture that does not prioritize sustainability and environmental responsibility can impede progress in achieving environmental goals.
  6. Lack of Leadership Commitment: Without visible support and commitment from top management, it may be challenging to drive environmental improvements throughout the organization.

External Issues:

  1. Regulatory Changes: Changes in environmental laws and regulations can require organizations to adapt their practices and procedures to remain compliant.
  2. Market Trends: Consumer preferences and market demands for environmentally friendly products and practices can influence the organization’s competitiveness and market access.
  3. Supply Chain Risks: Environmental risks in the supply chain, such as disruptions due to climate events or resource scarcity, can impact the organization’s ability to source materials and deliver products/services.
  4. Stakeholder Expectations: Stakeholder demands for transparency, sustainability, and ethical practices can affect the organization’s reputation and social license to operate.
  5. Climate Change: The physical impacts of climate change, such as extreme weather events or changing weather patterns, can disrupt operations and supply chains.
  6. Competitive Pressures: Competitors adopting more sustainable practices may put pressure on the organization to improve its environmental performance to remain competitive.
  7. Community Concerns: Local communities may raise environmental concerns related to the organization’s operations, potentially leading to protests, legal challenges, or reputational damage.
  8. Resource Availability: Availability and cost fluctuations of natural resources, such as water, energy, and raw materials, can impact operational efficiency and sustainability.
  9. Technological Advances: Advancements in environmental technologies may create opportunities for improved environmental performance or disrupt traditional business models.
  10. Global Events: Global events such as pandemics, geopolitical instability, or economic crises can impact supply chains, regulations, and market dynamics, affecting the organization’s ability to manage its environmental aspects effectively.

It’s essential for organizations to continuously monitor, assess, and respond to these internal and external issues to ensure that their EMS remains effective and aligned with their environmental objectives and goals. The organization should also use this information to set priorities, establish environmental targets, and develop strategies to mitigate risks and capitalize on opportunities.

2) Such issues shall include environmental conditions being affected by or capable of affecting the organization.

When identifying internal and external issues for an organization’s Environmental Management System (EMS), it’s crucial to include environmental conditions that can impact the organization or are influenced by the organization’s activities. These environmental conditions are an integral part of understanding the organization’s environmental context. Here’s a more detailed explanation:

Environmental Conditions Affecting the Organization (External Issues):

  1. Climate Change: The organization should consider how climate change, including factors like rising temperatures, changing weather patterns, and increased frequency of extreme events, can impact its operations, supply chain, and long-term sustainability.
  2. Natural Disasters: Assess the risk of natural disasters, such as hurricanes, floods, wildfires, or earthquakes, in the region where the organization operates. These events can disrupt operations and have significant environmental implications.
  3. Resource Scarcity: Examine the availability of critical resources like water, energy, and raw materials in the areas where the organization operates. Resource scarcity can affect production processes, costs, and the organization’s environmental footprint.
  4. Biodiversity and Ecosystem Health: Consider the local biodiversity and the health of ecosystems near the organization’s facilities. Activities that negatively impact biodiversity or ecosystem health can lead to regulatory and reputational risks.
  5. Air and Water Quality: Evaluate the quality of air and water in the organization’s operational areas. Poor air or water quality can lead to health issues, regulatory challenges, and community concerns.
  6. Environmental Pollution: Assess the presence and impact of pollution sources, including industrial emissions, waste disposal sites, or contaminated land, in the organization’s vicinity. Such pollution sources can affect both the environment and public health.

Environmental Conditions Influenced by the Organization (Internal Issues):

  1. Emissions and Pollution: Examine the organization’s emissions of greenhouse gases, air pollutants, and water pollutants. These emissions can contribute to local and global environmental conditions.
  2. Resource Consumption: Evaluate the organization’s resource consumption, including energy, water, and raw materials. Efforts to reduce resource consumption can positively influence the environment.
  3. Waste Generation: Analyze the types and quantities of waste generated by the organization’s operations. Reducing waste generation and improving recycling and waste management practices can contribute to better environmental conditions.
  4. Land Use and Habitat Impact: Consider how the organization’s land use practices, including construction and development, may impact local habitats and ecosystems. Implementing sustainable land use strategies can mitigate negative effects.
  5. Sustainability Initiatives: Review the organization’s sustainability initiatives, such as renewable energy adoption, sustainable sourcing, and waste reduction programs. These efforts can positively contribute to environmental conditions.
  6. Stakeholder Engagement: Engage with local communities and environmental organizations to understand their concerns and feedback regarding the organization’s environmental impact. This can help identify areas for improvement.

By including these environmental conditions that affect or are influenced by the organization in the assessment of internal and external issues, the organization can develop a more comprehensive understanding of its environmental context. This knowledge forms the basis for effective environmental management and decision-making within the EMS.

3) Methodologies to understand the internal and external issues related to Environmental Management system

Organizations can adopt various methodologies and approaches to understand the external and internal issues related to their Environmental Management System (EMS). The choice of methodology may depend on the organization’s size, industry, complexity, and resources. Here are some commonly used methodologies:

1. Stakeholder Analysis:

  • Identify Key Stakeholders: Identify the key external stakeholders who have an interest in or can impact the organization’s environmental performance. This may include regulatory agencies, customers, suppliers, local communities, and environmental organizations.
  • Engagement and Consultation: Engage with these stakeholders through surveys, interviews, focus groups, or public consultations to gather their views, concerns, and expectations related to environmental matters.
  • Assess Stakeholder Influence: Assess the level of influence each stakeholder group has on the organization’s operations and decision-making processes.

2. Environmental Aspect Identification:

  • Process Mapping: Analyze and map out the organization’s processes, activities, and operations to identify the environmental aspects associated with each activity. This helps in understanding how internal operations impact the environment.
  • Impact Assessment: Evaluate the significance of each environmental aspect in terms of its potential environmental impact, considering factors like emissions, resource consumption, and waste generation.

3. Legal and Regulatory Analysis:

  • Legal Register: Create and maintain a legal register that lists all relevant environmental laws, regulations, and standards that apply to the organization’s operations. This helps in understanding the external legal context.
  • Compliance Assessment: Regularly assess and document the organization’s compliance with these legal requirements, including permits, reporting obligations, and deadlines.

4. SWOT Analysis (Strengths, Weaknesses, Opportunities, Threats):

  • Conduct a SWOT analysis to evaluate the organization’s internal strengths and weaknesses concerning environmental management and its external opportunities and threats. This helps in assessing the overall environmental context.

5. Environmental Audits and Assessments:

  • Conduct environmental audits or assessments of the organization’s operations to identify environmental issues and potential improvements. These audits can provide valuable insights into internal environmental issues.

6. Industry Benchmarks and Best Practices:

  • Research industry benchmarks and best practices related to environmental management. Compare the organization’s practices to industry leaders to identify areas for improvement.

7. Sustainability Reporting and Disclosure:

  • Review and analyze sustainability reports and disclosures from similar organizations to gain insights into common environmental issues and stakeholders’ expectations.

8. Professional Environmental Consultants:

  • Engage environmental consultants or experts who specialize in EMS and sustainability to conduct assessments, audits, and stakeholder engagement on behalf of the organization.

9. Environmental Management System (EMS) Reviews:

  • Regularly review and evaluate the effectiveness of the organization’s existing EMS to identify internal issues and opportunities for improvement.

10. Data and Metrics Analysis:

  • Analyze environmental data and performance metrics to identify trends, patterns, and areas that require attention. This includes tracking resource consumption, emissions, and waste generation.

Whichever methodology or combination of methodologies an organization chooses to adopt, it’s essential to document the results and use them to inform the development and ongoing improvement of the EMS. This process should be iterative, with periodic reviews and updates to ensure the organization remains responsive to its internal and external environmental context.

Documented Information required

There is no mandatory requirement of Documented Information for this clause ,however it does require organizations to document the information necessary for understanding their context effectively. Here are the key documents and records that are typically associated with Clause 4.1 of ISO 14001:2015:

  1. Environmental Context Analysis Report: This is a key document that summarizes the organization’s assessment of internal and external issues relevant to its EMS. It should include information on stakeholder analysis, legal and regulatory requirements, environmental aspects, and other factors that influence the organization’s environmental performance.
  2. Stakeholder Analysis: Documentation of the organization’s identification of external stakeholders, their interests, concerns, and expectations related to the environment and the organization’s operations.
  3. Legal and Regulatory Register: A record of the environmental laws, regulations, and standards that are applicable to the organization’s activities, along with a description of how the organization complies with these requirements.
  4. Environmental Aspects Register: A record of the organization’s identified environmental aspects, their significance, and how they are managed or controlled within the EMS.
  5. SWOT Analysis (Strengths, Weaknesses, Opportunities, Threats): While not explicitly required, organizations often document the results of their SWOT analysis to assess how internal and external issues may affect their EMS and environmental performance.
  6. Documentation of Leadership Commitment: Records demonstrating the commitment of top management to the understanding of the organization’s environmental context, including minutes of meetings, policy statements, or communication materials.
  7. Training Records: If necessary, records of employee training related to environmental issues and the organization’s context.
  8. Communication Records: Documentation of internal and external communication related to the organization’s environmental context and EMS.
  9. Environmental Performance Indicators: Records of key performance indicators (KPIs) or metrics used to measure and monitor the organization’s environmental performance in relation to its context.

It’s important to note that ISO 14001:2015 emphasizes flexibility and the need for organizations to determine what documentation and records are appropriate for their specific circumstances. The level of detail and the specific documents and records maintained may vary depending on the organization’s size, complexity, and industry. The main objective is to ensure that the organization has documented the information necessary to understand its context effectively and make informed decisions regarding its environmental management system and environmental objectives.

Example of Procedure for Understanding the Organization and Its Context

Objective: To systematically identify and assess internal and external issues relevant to the organization’s EMS, ensuring that the organization has a clear understanding of its environmental context.

Responsibilities:

  • Top Management: Overall responsibility for approving the procedure and providing necessary resources.
  • Environmental Management Representative: Overseeing the implementation of this procedure.
  • Cross-functional team: Comprised of representatives from relevant departments, responsible for conducting the analysis.

Procedure Steps:

Step 1: Establishment of the Cross-functional Team

1.1. Top management designates and appoints members of the cross-functional team responsible for understanding the organization’s environmental context.

Step 2: Scope Definition

2.1. Define the scope of the environmental context analysis. Identify the boundaries of the organization’s operations and the specific aspects and locations to be included in the analysis.

Step 3: Identification of External Issues

3.1. Identify external stakeholders relevant to the organization. This may include but is not limited to regulatory agencies, customers, suppliers, local communities, and environmental organizations.

3.2. Gather information on the interests, concerns, and expectations of these external stakeholders regarding the organization’s environmental performance through surveys, interviews, and publicly available information.

3.3. Assess the influence and significance of each external stakeholder group on the organization’s operations and decision-making.

3.4. Document the results of the stakeholder analysis in a Stakeholder Engagement Report.

Step 4: Identification of Internal Issues

4.1. Analyze the organization’s processes, activities, and operations to identify environmental aspects associated with each activity.

4.2. Evaluate the significance of each environmental aspect in terms of its potential environmental impact. Consider factors such as emissions, resource consumption, and waste generation.

4.3. Document the identified environmental aspects and their significance in an Environmental Aspect Identification Report.

Step 5: Legal and Regulatory Analysis

5.1. Create and maintain a legal register listing all relevant environmental laws, regulations, and standards applicable to the organization’s operations.

5.2. Conduct regular assessments to ensure compliance with legal requirements, including permits, reporting obligations, and deadlines.

5.3. Document the results of legal and regulatory assessments in a Legal and Regulatory Compliance Report.

Step 6: SWOT Analysis

6.1. Conduct a SWOT analysis to assess the organization’s internal strengths, weaknesses, opportunities, and threats related to environmental management.

6.2. Document the results of the SWOT analysis in an Environmental SWOT Analysis Report.

Step 7: Review and Documentation

7.1. Review and synthesize the information gathered from Steps 3 to 6 to develop a comprehensive understanding of the organization’s environmental context.

7.2. Document the findings in an Environmental Context Analysis Report, which summarizes the organization’s internal and external issues and their relevance to the EMS.

Step 8: Communication and Reporting

8.1. Communicate the results of the environmental context analysis to relevant stakeholders, including top management and those responsible for the EMS.

8.2. Use the information to inform the development of the EMS, including setting environmental objectives and targets.

Step 9: Review and Continual Improvement

9.1. Periodically review and update the environmental context analysis to ensure it remains current and relevant.

9.2. Use the findings to drive continual improvement in the organization’s environmental performance and EMS.

Step 10: Record Keeping

10.1. Maintain records of all documents and reports generated during the environmental context analysis process, including stakeholder engagement reports, aspect identification reports, legal compliance reports, and SWOT analysis reports.

Published by Pretesh Biswas

Pretesh Biswas has wealth of qualifications and experience in providing results-oriented solutions for your system development, training or auditing needs. He has helped dozens of organizations in implementing effective management systems to a number of standards. He provide a unique blend of specialized knowledge, experience, tools and interactive skills to help you develop systems that not only get certified, but also contribute to the bottom line. He has taught literally hundreds of students over the past 5 years. He has experience in training at hundreds of organizations in several industry sectors. His training is unique in that which can be customized as to your management system and activities and deliver them at your facility. This greatly accelerates the learning curve and application of the knowledge acquired. He is now ex-Certification body lead auditor now working as consultancy auditor. He has performed hundreds of audits in several industry sectors. As consultancy auditor, he not just report findings, but provide value-added service in recommending appropriate solutions. Experience Consultancy: He has helped over 100 clients in a wide variety of industries achieve ISO 9001,14001,27001,20000, OHSAS 18001 and TS 16949 certification. Industries include automotive, metal stamping and screw machine, fabrication, machining, assembly, Forging electrostatic and chrome plating, heat-treating, coatings, glass, plastic and rubber products, electrical and electronic equipment, assemblies & components, batteries, computer hardware and software, printing, placement and Security help, warehousing and distribution, repair facilities, consumer credit counseling agencies, banks, call centers, etc. Training: He has delivered public and on-site quality management training to over 1000 students. Courses include ISO/TS -RAB approved Lead Auditor, Internal Auditing, Implementation, Documentation, as well as customized ISO/TS courses, PPAP, FMEA, APQP and Control Plans. Auditing: He has conducted over 100 third party registration and surveillance audits and dozens of gap, internal and pre-assessment audits to ISO/QS/TS Standards, in the manufacturing and service sectors. Other services: He has provided business planning, restructuring, asset management, systems and process streamlining services to a variety of manufacturing and service clients such as printing, plastics, automotive, transportation and custom brokerage, warehousing and distribution, electrical and electronics, trading, equipment leasing, etc. Education & professional certification: Pretesh Biswas has held IRCA certified Lead Auditor for ISO 9001,14001 and 27001. He holds a Bachelor of Engineering degree in Mechanical Engineering and is a MBA in Systems and Marketing. Prior to becoming a business consultant 6 years ago, he has worked in several portfolios such as Marketing, operations, production, Quality and customer care. He is also certified in Six Sigma Black belt .

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