What is 'ISO 14000'

ISO 14000 is a set of rules and standards to help companies reduce industrial waste and environmental damage. ISO 14000 is a framework for better environmental impact management, but it is not required. Companies can get ISO 14000 certified, yet, it's an optional certification. The ISO 14000 series of standards was first introduced in 1996 by the International Standards Organization (ISO). 

BREAKING DOWN 'ISO 14000'

ISO 14000 is part of a series of standards that address certain aspects of environmental regulations. It's meant to be a step-by-step format for setting, and then achieving, environmentally friendly objectives for business practices or products. The purpose is to help companies manage processes while minimizing environmental effects, whereas the ISO 9000 standards from 1987 was focused on the best management practices for quality assurance. The two can be implemented concurrently. 

ISO 14000 Standards 

ISO 14000 includes several standards that cover the aspects of managing the practices inside facilities, the immediate environment around facilities and the life cycle of the actual product. This includes understanding the impact of the raw materials used within the product, as well as the impact of product disposal.  

The most notable standard is ISO 14001, which lays out the guidelines for putting an environmental management system (EMS) in place. Then there's ISO 14004. This standard offers additional insight and specialized standards for implementing an EMS. 

Here are the key standards included in ISO 14000: 

  • ISO 14001: Specification of Environmental Management Systems
  • ISO 14004: Guideline Standard
  • ISO 14010 - ISO 14015: Environmental Auditing and Related Activities
  • ISO 14020 - ISO 14024: Environmental Labeling
  • ISO 14031 - ISO 14032: Environmental Performance Evaluation
  • ISO 14040 - ISO 14043: Life Cycle Assessment
  • ISO 14050: Terms and Definitions

ISO 14000 Certification 

ISO 14000 certification can be achieved by having an accredited auditor verify that all the requirements are met, or a company may self-declare. Obtaining the ISO 14000 certification can be considered a sign of a commitment to the environment, which can be used as a marketing tool for companies. It may also help companies meet certain environmental regulations. 

The other benefits include being able to sell products to companies that use ISO 14000 certified suppliers. Companies and customers may also pay more for products that are considered environmentally friendly. On the cost side, meeting the ISO 14000 standards can help reduce costs, as it encourages the efficient use of resources and limiting of waste. This may lead to finding ways to recycle products or new uses for previously disposed of byproducts.   

RELATED TERMS
  1. Environmental Tariff

    An environmental tariff is a tax on products imported to or exported ...
  2. Environmental Impact Statement

    An Environmental Impact Statement is a report addressing the ...
  3. Incentive Stock Option - ISO

    An incentive stock option (ISO) is a type of employee stock option ...
  4. Green collar

    A green collar worker is employed in an industry in the environmental ...
  5. Triple Bottom Line (TBL)

    Triple bottom line (TBL) is a concept which seeks to broaden ...
  6. Greenwashing

    Greenwashing is the use of marketing to portray an organization's ...
Related Articles
  1. Managing Wealth

    An introduction to incentive stock options

    Find out how incentive stock options (ISOs) work and the ways they can be used.
  2. Insights

    What Does It Mean To Be Green?

    Green investing is the new buzz word for companies and investors. Find out what it means.
  3. Taxes

    How Are Stock Options Taxed & Reported?

    That depends on the type of stock option you have. A rundown of the tax treatment for statutory and nonstatutory, or non-qualified, options.
  4. Personal Finance

    9 Green Careers With High Pay

    Being environmentally conscious doesn't mean you have to give up the comforts of life. Find out which jobs provide for both.
  5. Investing

    Emerging Markets' Environmental Commitment

    Most people think of the industrial and developed world as leaders when it comes to green technologies and environmental stewardship. After moving past their high-growth stages, many developed ...
  6. Managing Wealth

    Go Green With Socially Responsible Investing

    Find out how morals and ethics can bring you a surprising return.
  7. Investing

    The Top 4 Oil Companies That Protect the Environment (XOM, SUN)

    Read about some of the most environmentally conscious oil companies that have actual track records of investments in research and cleanup.
  8. Investing

    Ben Kille on Portfolio "Social Screens"

    Ben Kille discusses the burgeoning world of environmental, social and governance (ESG​) investing.
  9. Financial Advisor

    The Best Strategies to Manage Your Stock Options

    We look at strategies to help manage taxes and the exercise of incentive and non-qualified stock options.
RELATED FAQS
  1. To what extent does government regulation impact the electronics sector?

    Learn more about production regulation in the electronics industry and how these regulations may contribute to lesser productivity ... Read Answer >>
  2. What are green investments?

    Green investments are traditional investment vehicles (such as stocks, exchange-traded funds and mutual funds) in which the ... Read Answer >>
  3. What impact does government regulation have on the financial services sector?

    Learn about how the financial services industry is affected by government regulation, and the different types of regulations ... Read Answer >>
  4. What are the main products and developments of the chemicals industry?

    Learn about the main products of the chemicals industry and how technological developments and the availability of raw materials ... Read Answer >>
  5. Does investing in sustainable or "green" companies provide lower returns?

    To determine the kinds of returns that can be expected from investments in sustainable or "green" companies, the distinction ... Read Answer >>
Hot Definitions
  1. Working Capital

    Working capital, also known as net working capital is a measure of a company's liquidity and operational efficiency.
  2. Market Capitalization

    Market Capitalization is the total dollar market value of all of a company's outstanding shares.
  3. Bond

    A bond is a fixed income investment in which an investor loans money to an entity (corporate or governmental) that borrows ...
  4. Compound Annual Growth Rate - CAGR

    The Compound Annual Growth Rate (CAGR) is the mean annual growth rate of an investment over a specified period of time longer ...
  5. Net Present Value - NPV

    Net Present Value (NPV) is the difference between the present value of cash inflows and the present value of cash outflows ...
  6. Price-Earnings Ratio - P/E Ratio

    The Price-to-Earnings Ratio or P/E ratio is a ratio for valuing a company that measures its current share price relative ...
Trading Center