The ISO Show

ISO certification is more than just earning a certificate, and it requires continuous maintenance to both retain certification and drive effective improvements. Over the course of your 3-year certification cycle, you will need to ensure your Management System is regularly updated and reviewed so that it remains relevant to the way you’re currently working. That in addition to annual tasks such as internal auditing and management review, it can be a lot to keep on top of. Which is why some turn to external ISO Support. In this episode, Steph Churchman explains what ISO Support is, the challenges of managing ISO internally and the benefits of external support. You’ll learn ·      What is ISO Support? ·      What tasks can you outsource ·      Challenges of managing ISO internally ·      What are the benefits of ISO Support?   Resources ·      Isologyhub ·      ISO Support Plan   In this episode, we talk about: [02:05] Episode Summary – Steph explains what is meant by ISO Support, explains the challenges with managing ISO internally and the benefits of engaging in external support.   [02:20] What is ISO Support? ISO certification involves a 3-year cycle, where you will be subjected to an annual Surveillance audit by your certification body. On year 3, you will need to undertake a recertification audit, which will determine if you can keep your ISO certification. During that cycle, you will be required to complete annual tasks such as internal auditing, documentation updates and management review to ensure that your management system is effective in driving continual improvement. ISO Support is a service provided by an external party to help facilitate the management of these annual tasks, usually undertaken by a dedicated ISO consultancy. [03:40] What tasks can be outsourced? To learn about what tasks can be outsourced, check out a previous episode. [03:55] ISO Management Challenge #1: Internal auditors not being comfortable about auditing their peers - It may be the case that certain individuals do no get on, however if someone manages a key process or area of the business, they still need to be audited. There’s also the chance for auditors to be misunderstood, or have trouble getting the answers they need from auditees. Auditing requires the ability to effectively communicate and make yourself understood. It’s quite common for auditees to ask for further clarification on questions asked, so you need to be able to work with them so that they understand what you’re really asking. [04:45] ISO Management Challenge #2: Internal auditors not being particularly objective or impartial when auditing leadership – It can be hard to be impartial towards leadership, even if it is ultimately in their best interest! These dynamics can be habitual, but by not pointing out genuine issues or opportunities for improvement, you dimmish the purpose of the exercise. This also involves any leadership being receptive to feedback given. If this hasn’t been taken well in the past, it’s understandable for individuals to be hesitant doing so again, even if it’s a necessary part of the process. [05:35] ISO Management Challenge #3: Fed up with paying for training for a high turnover of internal auditors - Internal Auditing will require a qualification, which will cost money. It’s not a tremendous amount for these courses, but it would be an extra thing to budget for, and then there’s factoring the time to complete the course which takes away from that individuals other responsibilities. It can also be frustrating when your only Internal Auditor moves on and so you have to train another. Depending on the business, this could happen quite frequently and so ends up being a repetitive expense. You will also need to ensure any current auditors are competent to audit against any new ISO Standards that you may add along the way. [06:35] ISO Management Challenge #4: Managers not having time to update processes - Your Management system is likely owned by either just 1 individual or by a small team within the business. Those involved will already have their plates full with day-to-day operations, and anything ISO related is just another task to add onto that pile. In the eyes of many, they may seem unimportant in comparison, and will continually get shuffled down the priority list until it’s time for a Surveillance Audit. There will also be a certain amount of documentation to review and update on a regular basis. Even those with mature systems can experience trouble with duplicated processes, or confusion with old versions, and finding the time to sit and refresh all of that is often hard to accomplish. [07:30] ISO Management Challenge #5: Managers not aware of their legal, regulatory or ISO Standards requirements - As ISO Standards lay out best practice, they do require businesses to be aware of and adhere to relevant legislation and regulations. Managers will likely not be an expert in ISO Standards or legislation, so it can be easy for things to get missed if they’ve not had sufficient training beforehand. It will take time for relevant individuals within a business to be trained, or complete CPD to be fully competent to ensure full ISO and legal compliance. [08:25] ISO Management Challenge #6: Not updating key information i.e. Risk Register, BCP’s, environmental/energy metrics - Monitoring and measuring is a big part of ISO Management. You need to document certain metrics if you want to track them effectively. You will also need to update key documentation, as nothing stays the same forever. Major business changes may prompt updates to key policies and procedures. You may have opportunities to improve that fall out of audits that require certain documentation to be updated. Or correcting things where non-conformities have been raised. These updates are necessary to keep the momentum of a management system going. It needs to grow with you, which it will fail to do if everything documented is only applicable to how your business operated a few years ago. [09:15] ISO Management Challenge #7: Not reviewing key information i.e. Objectives, Environmental/H & S/Data Security trends - Objectives is another key metric that should be reviewed on a regular basis. To not only establish if you are making progress with them, but also to possibly adjust if the original plans were too lofty. They should still be a challenge to obtain, but we’re all only human and sometimes our first estimates about what’s achievable might be a tad too ambitious. There is also a need to review audit results to see if there’s any trends in areas such as info sec, sustainability and risk. This could be opportunities for improvement or some reoccurring issues that need to be addressed. All of this monitoring is going to require dedicated time from relevant personal, including feeding back results and following through with further actions. [10:55] ISO Support Benefit #1: Expertise and Specialisation - Dedicated ISO consultants will keep you up-to-date with the latest standard revisions, interpretations, and best practices. This includes their experience with helping businesses to plan and conduct annual maintenance. They are there as a guiding hand and can be a great sounding board for you if you have questions surrounding ideas or actions that you’re unsure about.  Their help ensures your system is maintained effectively and most importantly, compliantly. [11:40] ISO Support Benefit #2: Cost Savings - While there's a fee for outsourcing, it’s often more cost-effective than maintaining an in-house team or dedicating significant internal resources. As mentioned earlier, you would need qualified internal auditors at the very least, this will require training costs. You also need to consider the time taken out of individual’s typical working schedule to be able to conduct annual ISO maintenance, this will take away from their day-to-day tasks. We took this into consideration when creating our ISO Support Plan option, which is a 3-year contract that allows you to stay at a fixed rate for those 3-years. It’s a set it and forget it approach to ISO Support, which is flexible on both the number of days required annually in addition to the tasks you’d like support with. [12:35] ISO Support Benefit #3: Reduced Workload for Internal Staff - It’s often the case that Individuals, especially in SMEs, often wear many hats. Adding ISO maintenance onto that will impact on their day-to-day activities. Outsourcing frees up their time and resources, allowing them to focus on core business activities rather than the complexities of ISO maintenance. A lot of people don’t take training into consideration for people who get handed the task of maintaining a management system. It’s a lot of unnecessary stress when they’ve likely already got enough on their plate. Outsourcing will take a lot of that burden away, and give them a chance to lean on consultant guidance and be able to learn how to manage the tasks without fear of jeopardising the company’s certification.  [13:30] ISO Support Benefit #4: Impartiality and Objectivity - An external consultant can offer an unbiased perspective on your management system's performance, identifying areas for improvement that might be overlooked by internal staff due to familiarity, bias or ingrained practices. A fresh pair of eyes can provide a lot of valuable insight, in addition to their lessons learned from other clients. It also helps to have another unbiased voice on your side if you have suggestions for improvement that need presenting to leadership. It should also be noted that impartial audits are a requirement of ISO Standards, this is so you’re not marking your own homework all the time. It’s another level of assurance that you are doing what you say you’re doing. [14:20] ISO Support Benefit #5: Continuity and Risk Mitigation - Employee turnover can disrupt internal ISO maintenance. Outsourcing provides continuity, as any external provider will be available for the duration of an agreed contract, there’s no ambiguity on how long you have their support for. They will help you plan out what needs to be done, and facilitate this with the relevant individuals within your business. [15:00] ISO Support Benefit #6: Improved Efficiency and Effectiveness - External specialists will have the experience to help streamline processes and tools for maintenance activities. Making the system and it’s running more efficient, leaving you with more time to implement worthwhile changes that reap tangible results. Having their guidance from the start means you’ll be hitting the ground running. At Blackmores, we ensure that annual activities are planned out in advance so everyone can be prepared and work on a consistent schedule. [15:40] ISO Support Benefit #7: Enhanced Compliance and Audit Readiness - Outsourced consultants are going to be more adept at ensuring the system remains fully compliant with ISO standards. As they can proactively identify and address non-conformities that could easily be missed by those with significantly less auditing experience. There is a level of experience that is tricky to achieve if you do not regularly conduct internal audits. Consultants know what to look for, and will often have significant industry experience to know what stones to unturn to find issues and opportunities. Afterall, that is the purpose of internal audits, to not only check that process, policies and procedures are being followed, but to seek out where you can be doing better, or fixing issues as your business changes and adapts. [16:40] ISO Support Benefit #8: Focus on Core Business Activities - By offloading the burden of ISO maintenance, you can re-allocate your focus and resources to core business activities and strategic initiatives. ISO Consultants can take a lot of the mental burden of managing ISO systems away. There will still be homework to do on your side, as ultimately, you know how your business works best, but a consultant will guide you through what needs to be done. We know that many of you tasked with ISO compliance in your business have another primary role that requires a lot more of your attention. So make it easier on yourselves with the help of an expert, so you can get on and do what you need to do with minimal interruption. [17:30] ISO Support Benefit #9: Potential for Scalability and Flexibility - Outsourced services can often be scaled up or down based on the business's needs, offering flexibility that an internal team might not be able to provide, especially during periods of growth, crisis or during large projects. ISO Consultants can help either pick up the slack or give you more of the rope to handle annual ISO maintenance depending on what you need or want. At Blackmores, we have an ISO Support Plan that can be tailored to your exact needs, including the options to complete tasks such as:- ·      Conducting impartial internal audits ·      Providing surveillance support ·      Updating legal registers ·      Documentation updates ·      Conducting annual management reviews With 3 levels of support available, we have no issue with you increasing or decreasing days required each year, or varying the tasks depending on where you need the most support. If you’d like any assistance with ISO Support, feel free to get in touch with us, we’d be happy to help. We’d love to hear your views and comments about the ISO Show, here’s how: ●     Share the ISO Show on Twitter or Linkedin ●     Leave an honest review on iTunes or Soundcloud. Your ratings and reviews really help and we read each one. Subscribe to keep up-to-date with our latest episodes: Stitcher | Spotify | YouTube |iTunes | Soundcloud | Mailing List

ISO Standards are often a must have due to stakeholder requirements, whether that’s from your customers, investors or regulators. The need for multiple ISO certifications is also becoming more common, which can become a tricky task to juggle if you’re managing these as separate systems. The solution? An Integrated Management System. In this episode, Steph Churchman explains what an integrated management system is, how the Annex SL format facilitates integration and the benefits and challenges involved with an IMS. You’ll learn ·      What is an Integrated Management System? ·      Why consider an IMS? ·      What is the Annex SL format? ·      What are the benefits of an IMS? ·      What are the challenges of implementing an IMS?     Resources ·      Isologyhub   In this episode, we talk about: [02:05] Episode Summary – Steph explains what an Integrated Management System is, how the Annex SL format makes this possible and dives into the benefits and challenges associated with an IMS. [02:20] What is an Integrated Management System? Often abbreviated to ‘IMS’, it simply refers to a management system based off certification to or alignment with multiple ISO Standards. For example, a company may be certified to ISO 9001, ISO 14001 and ISO 45001 but will only have 1 Management system rather than 3 sperate systems. [03:30] What is the Annex SL format? The Annex SL format was applied to most ISO Standards back in 2015. This format helped to create a consistent 10 clause structure which makes it simple to integrate multiple ISO Standards. Before this was introduced, not all Standard clauses aligned, making it difficult to audit against and combine with other Standards, even if they had similar requirements. [04:00] The Annex SL 10 Clause Structure explained:– ·      The first 3 clauses are explanatory clauses. These give you more context for the purpose of the standards, as well as providing a helpful glossary of terms and definitions that you’ll come across in the Standard. These clauses aren’t audited against ·      Clause 4 - Context of the Organisation: This is where you’ll be establishing your scope, your interested parties and looking at where your risks and opportunities are. It’s setting the foundation for your Management system. ·      Clause 5 Leadership: This is where you’ll need commitment from top management. They will need to be involved with tasks such as establishing key policies, assigning roles & responsibilities and communicating the Management System once you’re ready to launch it. ·      Clause 6 Planning: This is where you will look at the risks and opportunities raised during the context phase and plan what actions you’ll take to address them. This is in addition to setting your business objectives. ·      Clause 7 Support: This is where you will establish the resources you have available to create and facilitate the running of the Management system. This clause gives you guidance for considerations such as people, infrastructure, monitoring and measurement needs, competence of staff and key communication requirements. ·      Clause 8 Operation: This clause is where the main differences can be found between ISO Standards. It provides guidance on considerations for key processes and procedures relating to the Standard focus. ISO 9001 for example contains a rather chunky clause 8 as it details requirements for products and services, including the development and provision of them. While ISO 27001’s clause 8 focuses more on information security risk assessments and risk treatment plans. ·      Clause 9 Performance Evaluation: This is where you establish the who, what and when involved in the monitoring, measurement and evaluation of your management system. This is also where Internal Auditing requirements are detailed. ·      Clause 10 Continual Improvement: This is the driving force of all ISO Standards. In this last clause you’ll find requirements for Management review and non-conformity and corrective action. That’s simply about reviewing the effectiveness of the Management system and putting plans in place to correct any non-conformities raised, or act on any of those opportunities for improvement. [08:00] IMS Benefit #1: Cost Saving – ISO Implementation can get costly, especially if you’re investing in a consultancy to help you in addition to the certification body costs involved in the actual assessment. You can save money by implementing multiple standards at the same time. At Blackmores, we’re happy to help you implement multiple ISO’s at the same time. This saves on the time spent if you were to do them separately, as we typically combine elements of the selected standards in project days such as during a Gap analysis, document creation and internal audits. On the certification body side, you can save on assessment days by assessing against an integrated management system, rather than assessing against 2 separate management systems. Many will do their best to accommodate integrated assessment and surveillance audits. [09:05] IMS Benefit #2: Reduced Duplication and Increased Efficiency - There are elements of a Management system that you can combine to not only save money but also reduce document and process duplication, which leads to a more efficient system. We’ve seen companies trying to manage separate systems over the years, and often times they end up just causing confusion, or only being adhered to by specific departments within a business. This results in duplicated work as shared elements of compliance are being managed in two different ways, often with slightly different styles of documents. Save yourself the trouble and headache by integrating all relevant management system documentation into 1 system. It makes it so much easier to update and keep on top of, and to enable it to act as a real tool for continual improvement rather than being thought of as a chore to upkeep. [10:10] IMS Benefit #3: Improved Communication and Collaboration - An integrated system encourages communication between all elements of your business. This holistic approach is often broken down into silos for select departments to focus on select objectives, which in turn encourages invested teamwork which will contribute to the business’s success as a whole. Internal Audits will also allow employees from every level to feedback to the system, highlighting key areas for improvement that could be rolled out. We see a lot of companies leveraging integrated management systems in various ways, often using them as a springboard to launch company wide initiatives that encourage further collaboration. These are then tracked, monitored and reported on in a similar way to other company objectives, all guided by the processes put in place by the Management system. [11:20] IMS Benefit #4: Enhanced Risk Management - Integrating multiple Standards will mean you have greater comprehension and risk assessment of multiple different aspects across your business, such as quality, environmental and Health & Safety. Many start with ISO 9001, as that’s a fantastic solid foundation for a Management system, it builds in all the core policies and procedures needed to run a business smoothly, but it doesn’t touch on the specifics of environmental management or information security. For that, you’d need to integrate other standards to ensure you have robust measures to tackle those other elements. [12:15] IMS Benefit #5: Streamlined Auditing Processes - Internal Audits act as a good measure of where things are going right and wrong, in addition to being a dummy run for your certification assessment if it’s your first time going through the process. Internal Audits are also an element which can be combined, this allows you to save time for the auditees, which reduces the amount of disruption they may cause overall. It also reduces the overall amount of audit reports for review, saving a duplication of effort on auditing similar elements across multiple standards. [13:00] IMS Benefit #6: Better Decision-Making - By having a more unified view of all processes and performance across different management areas, leadership can make more informed decisions. ISO Standards require a Management Review, which is where you can review audit findings and put plans in place to resolve any non-conformities and address any opportunities for improvement. Don’t forget to highlight any achievements and lessons learned too! As these can be applied elsewhere in the business. [14:00] IMS Benefit #7: Increased Stakeholder Confidence - ISO Standards are a mark of best practice, they are an internationally recognised seal of approval that proves your commitment to either quality, safety and sustainability. This competitive advantage will also serve you when going for funding or to tender. [14:40] IMS Benefit #8: Improved Organizational Performance and Culture - An integrated Management system ensures that everyone is unified in their way of working. It also fosters a culture of continual improvement, that encourages participation from all levels within the business. Having a central integrated system makes things simple for everyone to understand. No one has to search out different processes for a separate quality and environmental management system, when they could all be combined and stored in 1 location. An integrated management system approach also allows for you to collaborate across multiple different focus areas such as quality, safety and sustainability. Objectives for each can be siloed and focused on by select departments, but can still be contributed to from any part of the business. Be open about the results in different areas of the business and encourage suggestions for improvement, this is how you’ll foster a culture of continuous Improvement. [16:05] IMS Challenge #1: Initial set-up and resourcing - Implementing ISO Standards aren’t a small task. If you’re implementing multiple ISO Standards from the start, you’ll need to consider the people, time and expertise needed to complete the task. This may include the assistance of a dedicated ISO consultancy, as they’ll have the expertise to guide you through the process smoothly. At Blackmores, we can help you implement an IMS that is bespoke to the way you work. It may be tempting to go with an out of the box solution, but these would need tailoring to be at all effective and likely won’t get you past certification with a UKAS accredited Certification Body. Learn about the differences between a UKAS and Non-UKAS accredited Certification Body on one of our previous podcasts. [17:30] IMS Challenge #2: Resistance to change - People will be used to working a certain way, often siloed into systems unique to their departments. Or if you’ve already held 1 ISO certification, integrating others will mean change to that existing system that others may not be open to at first. It will involve either new or updated policies and procedures that will take some time for everyone to adapt to. The key here is communication. Not only to communicate the change, but allow people to voice any concerns they have about new ways of working. You may also need to issue additional training to help others adapt. [18:20] IMS Challenge #3: Lack of top leadership commitment - If you want people to care about the management system, commitment to it needs to come from the top down. If the leadership doesn’t care about it, why should anyone else? Any good leadership should want a holistic approach for monitoring various elements of the business, if only to make more informed decisions. An integrated Management system can provide the base to facilitate this, and it’s in leaderships best interest to keep ahead of any emerging challenges or opportunities that can be leveraged. [19:10] IMS Challenge #4: Integration of IT systems and data - Integrating your management system may require the integration of IT systems and existing data. If you have separate management systems currently, they may be operating on different databases or formats that may be difficult to combine. In some cases, an integrated management system is a good opportunity to refresh the way you work, it could be seen as a chance to look at other tech options out there that could be more cost effective or introduce new much needed functionality. [19:50] IMS Challenge #5: Maintaining Scope and Avoiding Over-Complication - There is a risk that you may try to bite off a bit more than you can chew when integrating management systems. We recommend starting with a smaller scope, as this acts as a good test that can be rolled out to the wider business if it’s effective. Many may start with just one site and then seek to roll out the changes to the wider business over the course of a few years. This is definitely an approach we encourage, as each location will have its own teething problems to work through, which is much more manageable when tackled in chunks at a time rather than all at once. If you’d like any assistance with Integrated Management System Implementation, feel free to get in touch with us, we’d be happy to help. We’d love to hear your views and comments about the ISO Show, here’s how: ●     Share the ISO Show on Twitter or Linkedin ●     Leave an honest review on iTunes or Soundcloud. Your ratings and reviews really help and we read each one. Subscribe to keep up-to-date with our latest episodes: Stitcher | Spotify | YouTube |iTunes | Soundcloud | Mailing List

The process approach is recommended by all Management System Standards, and effective implementation is key to drive continual improvement. Processes outline the basic steps needed to complete a task or achieve a certain outcome, and serve to keep things running smoothly and consistently. For those new to ISO Standards, it can be quite daunting to understand what this means in practice. In this episode Ian Battersby explains what a process is in the context of Management systems, how to map processes and the different ways you can visualise a process for communications. You’ll learn ·      What is a Process? ·      Why are processes needed in Management Systems? ·      Why should you document your processes? ·      How do you map a process? ·      How can you display a process?     Resources ·      Isologyhub ·      ISO 9004   In this episode, we talk about: [02:05] Episode Summary – Ian explains the importance of processes in Management systems, how you can effectively map processes and how you can visualise them for further communication. [03:00] Why are processes so important for Management Systems? As ISO 9004 (Quality management - Quality of an organization - Guidance to achieve sustained success) states:- “Organisations deliver value through activities connected within a network of processes. Processes often cross boundaries of functions within the organisation. Consistent and predictable results are achieved more effectively and efficiently when the network of It processes functions as a coherent system.” It doesn’t propose a type of process.  All organisations are different.  But what it does say is that they should be viewed as a system rather than in isolation. It’s a key principle of Quality Management and of business, allowing an organisation to manage and control the way it delivers its activities, with predictable results. [05:30] What is a process? Put simply, a process is a set of activities which achieve a specific outcome. Or, to put it another way, it’s a series of detailed steps describing how to do a job. [05:40] We should you document your processes?: ·      To show how to repeat tasks consistently, getting the same result every time ·      It guides people in how to do their jobs ·      To allow you to measure that outcomes are as expected ·      To provide for a structured approach to improvement ·      To help mobilise new contracts, products services of a similar type which supports business growth. [08:15] How to map a process – There are many different ways you could do this, but a popular method is with process map or process flow. A process map is a series of boxes on a page or screen. Each box represents an activity. The activities are then linked in a sequential order, using arrows. As an example, let’s say you have a process which repeats a task until you get the right outcome.  The first box would be ‘Start job’, this then points to the next box called ‘Perform task’.  In turn this points to a third box, which is a question, ‘Did it achieve the desired outcome?’. This would lead to two options: yes and no.  So. there are two arrows out this time.  If no, we need to learn from it (another box).  When we learn from it, we point back to ‘Perform task’.  If yes we end the job, which would be another box. Using a diagram such as this, it makes it a lot easier to visualise and follow a process. Many processes will likely be more complicated than this example, but the principle remains the same. [11:40] Keep things simple – Ian’s had experiences of companies that insist on bloated process maps that contains hundreds of boxes and arrows that end up making the whole diagram very difficult to follow. This defeats the purpose of process mapping. If you have a lot of complicated processes, it’s better to break these down into manageable chunks. [12:30] Process overview: If you’re struggling to start, you may want to consider a process overview. This focuses on the main steps on how you run your organisation, so this could be marketing, sales, production and delivery services. From there you can look at each area and focus on the more detailed activities which can be mapped and linked to each other. The ones dealing with the process overview include subject matter experts, departmental heads, functional leads, Senior Management ect… They will help shape the process mapping to ensure the overall delivery is in-line with the organisations’ direction. [14:00] A collaborative task: Process mapping shouldn’t be done by one person. One person is hardly going to know how each and every aspect of your organisation works. Don’t just leave it to your Quality Manager. Leaving this task to someone who’s not fully involved in the part of the organisation where the process originates will only end in disaster. They will likely not be aware of small yet vital steps, such as key communication and authorisations. So make sure you involve multiple parties, and key people involved in the areas you’re mapping process for. [17:05] Process mapping across departments: Think practically about how you deliver products or services. How people actually do their jobs.  This is a very important aspect of processes.  Then visualise how each process works: draw it with pencil and paper; throw some Post It notes on a flipchart; put it on a whiteboard and take a photo; even write it out in a Word document.  Make it clear. Make it documented:  This is essential.  This unleashes the power to measure and improve.  Documenting something allows you to compare the way things are done to what you expect and to establish whether the outcome is as you expect. [12:30] How processes link with other areas of ISO Standards: Processes are very useful in helping people do their job, but they can also assist with:- Assigning roles and responsibilities. Each box (activity) can be measured for success, performance indicators can be established at individual activity level, or for a process overall. You can see if the process is successful in delivering its intended outcome. The results can then form part of your monitoring and measuring regime as required by Management System standards (clause 9 is all about evaluating performance). You can use them as a basis for audit, which is all about assessing whether you get what you expect. They are also useful in explaining how you deliver to external parties; or demanding how others should do things. Standards also specify that process performance be included in Management Review (9001 9.3.2 c) 3)) – so it really is an unavoidable step towards ISO certification! Lastly, it can also help with clause 10, which is all about improvement. What-if scenarios can be performed by moving activities, lines, adding new ones deleting and predicting the outcome of the overall process. Whichever way you wish to document your processes, by documenting them you have the power to improve them If you’d like any assistance with ISO Implementation, feel free to get in touch with us, we’d be happy to help. We’d love to hear your views and comments about the ISO Show, here’s how: ●     Share the ISO Show on Twitter or Linkedin ●     Leave an honest review on iTunes or Soundcloud. Your ratings and reviews really help and we read each one. Subscribe to keep up-to-date with our latest episodes: Stitcher | Spotify | YouTube |iTunes | Soundcloud | Mailing List

We’re past the point of simply saying you’re committed to sustainability, it’s time for tangible and verified action. This is what many are calling for in response to the recent rise in Greenwashing and subsequent erosion of trust from consumers and other stakeholders regarding any green claims. As a result, a number of voluntary disclosure schemes have been created to help benchmark and verify organisation’s claims, should they choose to participate. One example being the focus of today’s episode: EcoVadis. In this episode Mel Blackmore continues with our voluntary disclosure’s series, discussing the ESG rating scheme EcoVadis, what is required to earn a Platinum rating and provides some tips on how to get that Platinum rating. You’ll learn ·      What is EcoVadis? ·      What are the requirements to achieve a Platinum rating? ·      Top tips for earning an Platinum rating for EcoVadis ·      What are the advantages of earning a Platinum rating? ·      What are the disadvantages of getting involved with EcoVadis?   Resources ·      EcoVadis ·      Carbonology ·      Contribute to Mel’s carbon verification commitment research by taking her Survey   In this episode, we talk about: [02:05] Episode Summary – Mel discusses the voluntary disclosure scheme: EcoVadis, including what’s involved with taking part, how to achieve a Platinum rating and the pros and cons of being benchmarked.    [03:00] Why is there a need for EcoVadis? An increased number of investors and financial institutions, in addition to clients are demanding more than just financial reports. They want to know what a company's environmental footprint is, and at this point, it's time to move on beyond simply making pledges. This extends to other elements of governance as EcoVadis doubles as a crucial ESG rating scheme. [04:30] What is EcoVadis? EcoVadis is a globally recognised provider of business sustainability ratings. They assess companies' environmental, social, and ethical performance across 21 indicators and four main themes: Environment, Labor & Human Rights, Ethics, and Sustainable Procurement. EcoVadis aims to help organisations manage their supply chain sustainability risks and opportunities. If you're a supplier, you've likely received a request from a customer to complete an EcoVadis assessment. The assessment process involves completing a detailed questionnaire, submitting supporting documentation, and then EcoVadis analysts review your submission and assign a scorecard. This scorecard provides a detailed breakdown of your performance across the four themes and assigns an overall score and a medal status: Bronze, Silver, Gold, or Platinum. It’s this medal status that’s crucial, especially those coveted Gold and Platinum badges, which signal to your customers that you are a top-tier performer in sustainability. [05:40] We want to hear from you: Mel is currently running some research around CDP and the key drivers behind carbon emission verification, and would appreciate your feedback if you have a few minutes to spare. The results are completely anonymous, and it should only take 5 – 10 minutes. You can take the survey here. Thank you in advance to any contributors! [06:05] What is required to achieve an Platinum Rating? – While EcoVadis assesses across four themes, the 'Environment' theme often carries significant weight, and within that, greenhouse gas (GHG) emissions management is paramount for the higher ratings. To earn an EcoVadis Platinum rating, you'll generally need to achieve an overall score between 78-100 out of 100. Key areas that you need to excel in include:- 1) Comprehensive Environmental Management System: This includes policies, actions, and reporting on a wide range of environmental issues. For Platinum, EcoVadis expects to see highly structured and systematic approaches to environmental management. 2) Robust GHG Emissions Management: For this you need to: ·      Measure your GHG Emissions: Accurately calculate your Scope 1, Scope 2, and significant Scope 3 emissions. EcoVadis places increasing emphasis on Scope 3, as it often represents the largest portion of a company's footprint. ·      Set Ambitious Targets: Have clear, quantitative targets for GHG emission reduction. Aligning these with a science-based target (SBTi) is highly advantageous and often a de facto requirement for Platinum. ·      Implement Reduction Initiatives: Demonstrate concrete actions you are taking to reduce emissions, such as investing in renewable energy, improving energy efficiency, optimizing logistics, or engaging your supply chain. 3) Independent Verification of GHG Emissions Data: This is a non-negotiable for Platinum and often for Gold. EcoVadis awards significant points for having your Scope 1 and Scope 2 GHG emissions (and increasingly, relevant Scope 3 categories) independently verified by a third-party accredited body. This provides assurance that your reported data is accurate and reliable. As a CDP accredited verification body, we routinely help companies through this process, and it makes a profound difference in their EcoVadis and overall ESG scores. 4) Strong Policies and Actions Across All Themes: While we're focusing on environment, remember Platinum requires excellence across all four EcoVadis themes: ·      Labor & Human Rights ·      Ethics ·      Sustainable Procurement Implementing Standards such as ISO 37001 (Anti-Bribery and Corruption), ISO 27001 (Information Security), ISO 20400 (Sustainable Procurement) can help put some of these in place. 5) Effective Reporting and Transparency: You need to clearly articulate your policies, actions, and performance data within the EcoVadis questionnaire. This includes providing high-quality, relevant supporting documentation. To get the best result, don't just tick boxes; provide evidence! 6) Continuous Improvement: EcoVadis looks for evidence of ongoing improvement. It's not a one-off assessment; it's about demonstrating a commitment to continually raising your standards. [14:20] How to get an EcoVadis Platinum Rating with verified data? – Here’s a few tips: ·      Start Early and Plan Strategically: Don't wait until the last minute. The EcoVadis assessment requires significant time and effort. Plan your data collection, policy development, and verification process well in advance. ·      Understand the EcoVadis Methodology: Download the EcoVadis methodology and scoring criteria. These double as guidance documents that explain what they're looking for in each section. Tailor your responses and documentation accordingly. ·      Invest in carbon accounting software: Accurate and consistent data is paramount. Implement systems (whether software or well-organized spreadsheets) to track your energy consumption, waste, water use, and especially your GHG emissions. ·      Prioritize GHG Emissions Verification: Engage a reputable, accredited third-party verification body (like Carbonology 😉) to audit your Scope 1 and Scope 2 GHG emissions. Ensure the verification covers the reporting period relevant to your EcoVadis assessment. This provides the external assurance EcoVadis demands. ·      Address All Four Themes: While environmental performance is crucial, don't neglect Labor & Human Rights, Ethics, and Sustainable Procurement. A weak score in one area can pull down your overall rating. ·      Leverage External Expertise: If you're new to EcoVadis or aiming for a significant jump in your score, consider consulting with experts. They can help you identify gaps, optimize your strategy, and ensure your documentation meets EcoVadis's requirements. Blackmores consultants are able to provide support if you’re seeking an EcoVadis rating. ·      Continuous Improvement: Use the EcoVadis scorecard feedback to identify areas for improvement. Implement corrective actions and integrate them into your ongoing sustainability strategy. This commitment to continuous improvement is a strong indicator of a Platinum-level company. [16:40] The pros and cons of EcoVadis: Many of these share similarities with the Carbon Disclosure Project, which we covered in a previous episode. To summarise: Pros: ·      Enhanced Reputation and Brand Value ·      Risk Management and Resilience ·      Cost Savings and Operational Efficiency ·      Competitive Advantage ·      Innovation and Strategic Planning ·      Benchmarking and Peer Learning Cons: ·      Resource Intensive ·      Potential for Negative Public Scrutiny If you’d like any assistance with carbon verification, get in touch with Carbonology, they’d be happy to help! We’d love to hear your views and comments about the ISO Show, here’s how: ●     Share the ISO Show on Twitter or Linkedin ●     Leave an honest review on iTunes or Soundcloud. Your ratings and reviews really help and we read each one. Subscribe to keep up-to-date with our latest episodes: Stitcher | Spotify | YouTube |iTunes | Soundcloud | Mailing List

In recent years there has been a growing need for transparency within sustainable action taken by businesses. This is due to the rampant increase in greenwashing, which only serves to diminish the focus on genuine efforts, in addition to creating a culture of mistrust within stakeholders and consumers. To combat this, certain organisations have taken on the task of encouraging and supporting the accurate public disclosure of environmental data. Such is the case with today’s focus, the Carbon Disclosure Project (CDP). In this episode Mel Blackmore discusses what the Carbon Disclosure Project is, what is required to earn an A rating, provides some tips on how to get that A rating and explains the pros and cons with getting involved with the project.    You’ll learn ·      What is the Carbon Disclosure Project? ·      What are the requirements to achieve an A rating? ·      Top tips for earning an A rating in the CDP ·      What are the advantages of earning a CDP rating? ·      What are the disadvantages of getting involved with the CDP?   Resources ·      Carbon Disclosure Project ·      Carbonology ·      Contribute to Mel’s carbon verification commitment research by taking her Survey   In this episode, we talk about: [02:05] Episode Summary – Mel discusses the Carbon Disclosure project, including what’s involved with taking part, how to achieve an A rating and the pros and cons of the project.    [03:00] Why is there a need for the CDP? An increased number of investors and financial institutions, in addition to clients are demanding more than just financial reports. They want to know what a company's environmental footprint is, and at this point, it's time to move on beyond simply making pledges. Ultimately, key stakeholders are looking for a commitment to sustainability and for accessible information to help them understand how an organisation is managing its climate risks and opportunities. This is where CDP comes in. A key component of getting the coveted A rating within CDP involves independent verification of greenhouse gas emissions. [04:45] What is the Carbon Disclosure Project? CDP is a global non-profit that runs the world's leading environmental disclosure system. For over two decades, it has revolutionized how companies, cities, states, and regions report their environmental impacts. They ask thousands of organizations to disclose data on climate change, water security, and deforestation. This data is then used by investors, purchasers, and policymakers to make informed decisions. The CDP questionnaire covers a wide range of topics, from governance and strategy to risk management, targets, and of course, greenhouse gas emissions. Companies receive a score from D- to A based on the completeness of their reporting, their level of awareness of environmental issues, their management of those issues, and ultimately, their leadership in addressing them. [05:40] We want to hear from you: Mel is currently running some research around CDP and the key drivers behind carbon emission verification, and would appreciate your feedback if you have a few minutes to spare. The results are completely anonymous, and it should only take 5 – 10 minutes. You can take the survey here. Thank you in advance to any contributors! [09:10] What is required to achieve an A Rating? – There are a number of key requirements, including:- 1.    Comprehensive Disclosure and Data Quality: This is foundational. You need to provide accurate and complete data across all relevant sections of the CDP questionnaire. This includes detailed information on your Scope 1, Scope 2, and increasingly, your Scope 3 GHG emissions. 2.    Strong Governance and Strategy: CDP looks for clear evidence that environmental issues are integrated into your company's core business strategy and that there's robust board and management oversight of climate-related matters. This means having a defined climate strategy, understanding your climate-related risks and opportunities, and demonstrating how you're incorporating these into your financial planning. 3.    Verified Data: To truly hit that "A" list, your Scope 1 and Scope 2 GHG emissions, and a significant portion of your Scope 3, must be independently verified. This isn't just a suggestion; it's an essential criterion for the leadership level. Independent verification provides crucial assurance to stakeholders that your reported emissions data is accurate, reliable, and trustworthy. It also minimises the risk of “Greenwashing”. 4.    Science-Based Targets and a Robust Climate Transition Plan: CDP is increasingly emphasizing the need for companies to set ambitious, science-based targets for emissions reductions, aligned with a 1.5°C global warming scenario. In addition, having a publicly available, credible climate transition plan that outlines how you will achieve these targets, including specific actions, metrics, and progress tracking mechanisms, is now a must for "A" list companies. 5.    Value Chain Engagement: For many companies, the most significant emissions lie within their supply chain. To achieve an "A" rating, you'll need to demonstrate robust engagement with your suppliers to measure and reduce their emissions, and address environmental impacts across your entire value chain. 6.    Continuous Improvement and Transparency: The "A" rating isn't a one-off achievement. It reflects a commitment to continuous improvement in your environmental performance and a willingness to be transparent about your journey, including challenges and successes. [15:05] Top tips for achieving a CDP A Rating:- Tip 1: Plan Ahead and Start Early. CDP reporting is an annual cycle, and it's complex. Don't wait until the last minute! Start gathering your data, assessing your internal processes, and identifying any gaps well in advance. This includes planning for your verification process. Tip 2: Invest in Robust Data Management Systems. Accurate and comprehensive data collection is paramount. Consider leveraging sustainability software that can help you track, calculate, and manage your GHG emissions data efficiently. This reduces manual errors and streamlines the reporting process. Tip 3: Understand the Verification Process. This is where an accredited verification body, like Carbonology, becomes invaluable. Verification Bodies work to an internationally recognized standard, typically ISO 14064-3, to ensure the accuracy and reliability of your GHG emissions data. The process involves: ·      Defining the scope: What emissions are being verified? ·      Data review: Examining your underlying data, methodologies, and calculations. ·      Site visits (where applicable): Physically verifying operational data. ·      Report generation: Providing an assurance statement on the accuracy of your emissions. Tip 4: Engage with a CDP-Accredited Verification Body. CDP specifically requires third-party verification from an independent external organization that is accredited and competent. Look for bodies with proven experience and accreditation to international standards like ISO 14064. They can guide you through the process, identify areas for improvement, and ensure your data meets the stringent requirements for leadership points. Tip 5: Conduct a Gap Analysis. Before you even begin your disclosure, perform a thorough gap assessment against the latest CDP questionnaire and essential criteria. This will highlight areas where your current disclosures fall short and allow you to address them proactively. Tip 6: Focus on Quality over Quantity. While comprehensive disclosure is important, ensure the quality and accuracy of your data. It's better to provide high-quality, verified data for a focused set of emissions than to report broadly with unverified or unreliable numbers. Tip 7: Train Your Team. Ensure your internal team understands the CDP requirements and best practices for sustainability reporting and data collection. Building internal capacity is essential for maintaining high-quality disclosures year after year. [20:35] The pros of voluntary disclosures: Enhanced Reputation and Brand Value: Disclosing and performing well on platforms like CDP showcases your commitment to environmental responsibility. This can significantly boost your reputation among customers, employees, and the wider public, attracting conscious consumers and talent. Risk Management and Resilience: The disclosure process forces companies to identify and assess their environmental risks – from climate change impacts to resource scarcity. This proactive approach allows for better risk mitigation strategies, building greater business resilience. Cost Savings and Operational Efficiency: The process of measuring and managing environmental impacts often reveals opportunities for greater efficiency, such as reduced energy consumption, waste reduction, and optimized resource use, leading to tangible cost savings. Competitive Advantage: Being a leader in environmental transparency can differentiate your company in the marketplace, especially as sustainability becomes a key consideration for clients and supply chain partners. Competitive Advantage: Being a leader in environmental transparency can differentiate your company in the marketplace, especially as sustainability becomes a key consideration for clients and supply chain partners. Preparation for Future Regulation: Voluntary disclosure puts you ahead of the curve. As environmental regulations become increasingly stringent globally, companies with established reporting mechanisms will be better prepared to meet mandatory requirements. Innovation and Strategic Planning: The disclosure process encourages long-term strategic planning around environmental impact, driving innovation in products, services, and processes. Benchmarking and Peer Learning: CDP provides a framework for measuring and tracking your performance over time and allows you to benchmark yourself against industry peers, identifying areas for improvement and learning from best practices. [14:15] The cons of voluntary disclosures?: Resource Intensive: Comprehensive ESG reporting, especially to the level required for an "A" rating, can be costly and time-consuming, particularly for smaller companies with limited resources. It requires dedicated personnel, data collection, and often external consulting or verification services. Risk of Greenwashing: If disclosure isn't backed by genuine action and verified data, there's a significant risk of "greenwashing" – providing a misleading impression of your sustainability efforts. This can lead to reputational damage, loss of trust, and even legal scrutiny if claims are found to be unsubstantiated. This is precisely why independent verification is so crucial. Lack of Accountability (without verification): Without external verification or assurance, the reliability and accuracy of self-reported data can be questioned, diminishing the value and trustworthiness of the disclosure. This is a major concern for investors who demand the same robustness for non-financial data as they do for financial data. Potential for Negative Public Scrutiny: Once you disclose, your data is public. This means your environmental performance, or lack thereof, can be scrutinized by activists, media, and the public. Companies must be prepared to address any critical feedback. If you’d like any assistance with carbon verification, get in touch with Carbonology, they’d be happy to help! We’d love to hear your views and comments about the ISO Show, here’s how: ●     Share the ISO Show on Twitter or Linkedin ●     Leave an honest review on iTunes or Soundcloud. Your ratings and reviews really help and we read each one. Subscribe to keep up-to-date with our latest episodes: Stitcher | Spotify | YouTube |iTunes | Soundcloud | Mailing List

The world of ISO is often stumbled into as a result of being tasked with either Implementing or maintaining a Standard for a business. It is rarely a desired career path, and yet there are thousands of ISO professionals from all corners of the globe. We’re continuing with our latest mini-series where we introduce members of our team, to explore how they fell into the world of ISO and discuss the common challenges they face while helping clients achieve ISO certification.   In this episode we introduce Derek Hall, a Senior Isologist® and Sustainability Lead at Blackmores, to learn about his journey from spending 40 years in the printing industry to becoming an ISO Consultant, and what drives him to help clients on their ISO journey.   You’ll learn ·      What is Derek’s role at Blackmores? ·      What does Derek enjoy outside of consultancy? ·      What path did Derek take to become an ISO Consultant? ·      What is the biggest challenge he’s faced when implementing ISO Standards? ·      What is Derek’s biggest achievement?   Resources ·      Isologyhub ·      Climate Change Amendment Workshop   In this episode, we talk about: [02:05] Episode Summary – We introduce Derek Hall, a Senior Isologist® here at Blackmores, to discuss his journey towards becoming an ISO consultant who specialises in ISO 9001, ISO 14001 and ISO 22716.   [03:45] What is Derek’s role at Blackmores? Derek is a Senior Isologist® with Blackmores, supporting companies with maintaining systems, undertaking internal audits, and supporting with implementing new systems to gain certification utilising our Isology methodology. His passion lies in the realm of sustainability, embedding it within the management systems of many of our clients regardless of any certification to any dedicated sustainability Standard. Derek was worked with a number of sectors, including:- ·      Media ·      Printing ·      Constructions ·      Cosmetics ·      Recycling ·      Electrical ·      Public Sector & NHS Derek enjoys the learning aspect of working with new industries, and values the input from all personnel involved, from top management to those on the shop floor. He well and truly immerses himself within each company he works with to learn about their values and how ISO can best support their vision. [08:30] What does Derek enjoy doing outside of consultancy?: Derek has a few varied hobbies, including oil painting born out of his other passion, photography. He often uses his own photos as subject matter for his paintings. He also trains 4-5 times a week at his local karate club, which caters for all ages and skill sets. Derek has diligently worked his way up to black belt over the 17 years he’s been attending, and offers his skills to teach sessions. He appreciates the respect that karate teaches, in addition to gaining more knowledge on other points of view. With such a varied class, there’s always something new to learn. The Australian based club he attends is called GKR Karate. [12:20] What was Derek’s path towards becoming an ISO Consultant?: Derek’s journey starts back in the 60’s, where he worked in commercial photography, taking pictures on the progress of various building works, and products for furniture stores. He used to work with plate photography, which was a rather old school method even back then! This was coupled with more modern methods such as 35 millimeter film. He recalls witnessing the building of the Thames barrier, taking pictures to help monitor the amount of water coming through the barrier. After that he moved onto work for a printing company in Barnet (Hertfordshire), which specialized in advertisements and signage for furniture stores. From the shop floor Derek worked his way up to becoming a printer operative. This company evolved to include screen printing, which allowed for more versatile applications such as clothing or certain plastics. After spending 3 and a half years there he moved on with a friend to start their own printing company in Watford, which continued until the 70’s. In the 70’s Derek joined a much larger printing company based in Southgate London. Here he was involved in the printing of cinema posters for theatres, and musical groups. Derek remained there for 40 years, watching it evolve to larger scale printing for retail markets such as HMV Records and curry’s, in addition to bus advertisements. During the 90’s, there was a larger push for quality Standards, their clients wanted more assurance that they were following established guidelines and could produce the quality they were after. So, Derek was tasked with Implementing BS 5750, ISO 9001’s precursor, and BS 7750, ISO 14001’s precursor. The company then got involved in an eco management audit scheme called EMAS, which required the reporting of environmental impacts. It was similar to ISO 14001, but it’s regulatory reporting requirements more closely align with modern schemes such as ESOS. They also introduced other schools of thinking such as Kaizen, for the purpose of continual improvement. At this point, Derek became very involved with sustainability standards, and developed a concept called ‘The Tree of Sustainability’, which included 9 branches for improvement. This was introduced due to the fact that their industry by its current nature, wasn’t very sustainable. There was a lot that could be done to reduce their impact. Through developing that project Derek got involved with the DTR project called ‘The Sigma Guidelines’, a backed scheme run by the BSI forum and The Accountability Institute. These guidelines outlined a 3-year project to identify what sustainability meant to them and how it could apply to their industry. The result of their work on this project was then submitted to various awards, netting them a number of sustainability awards and The Accountability Institute Awards. That company continued its operations until 2007, leading to Derek joining Blackmores first year of operation in 2008. Derek is leading us down a similar sustainability path by encouraging us to become a signatory of the Terra Carta, an initiative including 100 different actions for nature, people and planet. [26:40] What is Derek’s favourite aspect of being a Consultant? – Derek has a few, including: Building relationships with clients – Many of Dereks clients have been working with him for over 10 years. He’s as much friends with them as he is a work colleague. Flexible approach – Consultancy can be delivered in many different ways, allowing for hybrid working. This flexible approach also applies to the way we achieve internal targets, with each member of the team being given specific goals with the freedom to choose how they reach them. Everyone has their own way of working, and we encourage all members of the team to work how they like with the opportunity to learn from each other. [28:35] What Standards does Derek specilaise in and why? Starting with: ·      ISO 9001 Quality Management: A core foundation that many businesses start with when diving into the world of ISO Standards. Derek started with it’s predecessor, and has watched it develop over the years. He appreciates the value it can bring, especially to SME’s who are looking for a scalable model for success. ·      ISO 14001 Environmental Management: Derek is a fan of sustainability in general, and encourages everyone to implement some of it’s requirements as part of any project.   ·      ISO 22716 Good Manufacturing Practices for the Cosmetics Industry: A rather niche quality standard for the cosmetic industry, this Standards works well in collaboration with ISO 9001 for a more holistic approach. ·      ISO 45001 Health and Safety Management: Derek picked up this Standard as a result of his work with the construction industry. It’s importance as a tool to prevent harm to humans cannot be understated. ·      ESG: Derek has been working closely with his colleague, Ali Henshaw, to develop an ISO based framework to tackle ESG requirements. This includes inputs and requirements from guidance standards such as ISO 20400 (Sustainable Procurement) and ISO 26000 (Social Responsibility) ·      ISO 22301 Business Continuity: A lot of organisations are looking to implement aspects of business continuity as a result of the ever-changing resilience landscape. [32:20] The link between business continuity and climate change: We have seen client requirements evolve to include various elements of business continuity in response to the increasing threats of cyber incidents and climate change related issues. This is reflected in the recently introduced Climate Change Amendment to many commonly implemented ISO Standards. This requirement ensures that businesses consider their impact on climate change in addition to, how and if they would be affected in turn. If you would like to learn more about this, listen to a previous episode or watch our Workshop playback. [34:20] What is the biggest challenge Derek had faced during a project and how did he overcome it?: Derek took on the challenge of implementing ISO 22716, when he knew very little about the Standard and the cosmetics industry as a whole. Though there were a few stumbles on his first attempt, they managed to get certified without issue. That same company then wanted his help to implement ISO 14001, which is a tough ask for the cosmetics industry. There are a lot of factors to consider, such as: ·      What is their environmental impact? ·      Where are you sourcing materials? ·      Are the ingredients shipped from across the globe or sourced locally? ·      Is there any animal testing involved? ·      How sustainable was their supply chain? There was a lot to get through, but it was a beneficial choice to get a full picture of their environmental cost. Later, the company opted to implement ISO 9001 in addition to their existing Iso 22716 and ISO 14001 certifications. This fit nicely as both ISO 22716 and ISO 9001 are quality based Standards, they complemented each other and created an effective and holistic management system. [27:20] What is Derek’s proudest achievement?  Derek received an MBE from the late Queen for services in the environment in 2005. This was earned through his sustainability work within the print industry. For those not familiar, the Queens Award (now the King’s Award) is a prestigious award that requires 3 levels of review and vetting before winners can be announced. It includes checking evidence provided and the financials involved to verify if applicants have achieved what they say they have achieved. Derek, along with his wife and daughters, were invited to the palace to meet the queen and receive his award. If you’d like any assistance with implementing ISO standards, get in touch with us, we’d be happy to help! We’d love to hear your views and comments about the ISO Show, here’s how: ●     Share the ISO Show on Twitter or Linkedin ●     Leave an honest review on iTunes or Soundcloud. Your ratings and reviews really help and we read each one. Subscribe to keep up-to-date with our latest episodes: Stitcher | Spotify | YouTube |iTunes | Soundcloud | Mailing List

ISO consultancy isn’t a field many aspire to enter, mostly because many don’t know it exists until you’re tasked with either managing an existing ISO Management System or implementing a brand new one. We’re continuing with our latest mini-series where we introduce members of our team, to explore how they fell into the world of ISO and discuss the common challenges they face while helping clients achieve ISO certification.   In this episode we introduce Alison Henshaw, an Isologist® at Blackmores, to learn about her journey from aspiring pub-landlord to becoming an ISO Consultant, and what drives her to help clients on their ISO journey.   You’ll learn ·      What is Ali’s role at Blackmores? ·      What does Ali enjoy outside of consultancy? ·      What path did Ali take to become an ISO Consultant? ·      What is the biggest challenge she’s faced when implementing ISO Standards? ·      What is Ali’s biggest achievement?   Resources ·      Isologyhub   In this episode, we talk about: [02:05] Episode Summary – We introduce Alison Henshaw (Ali), an Isologist® here at Blackmores, to discuss her journey towards becoming an ISO consultant who specialises in ISO 20400 and ISO 26000. [03:45] What is Ali’s role at Blackmores? Ali is an Isologist® with Blackmores, supporting companies with maintaining systems, undertaking internal audits, and supporting with implementing new systems to gain certification utilising our Isology methodology. [04:00] What does Ali enjoy doing outside of consultancy?: Ali has a daughter aged 5, so a lot of her social life revolves around play dates and kids parties. As a family, they are very outdoor orientated, enjoying long walks and camping. In the past Ali enjoyed swimming, often visiting family near the coast to make use of the more bracing bodies of water. She also likes to craft, recently taking up knitting as her mum often knits for different charitable causes. So far, she’s mastering the art of the knitted rectangle, which lends itself nicely to scarves and blankets. Lastly, Ali is also a fan of photography due to her father sharing a similar interest. Most of her subject matter revolves around family and the outdoors. [06:45] What was Ali’s path towards becoming an ISO Consultant?: Ali states that none of her working roles so far have been purposeful, rather more serendipitous. She started managing pubs at the age of 18, after which she did relief management where she would cover different manager absences in pubs near her home. The owner of the pub she was working with at the time was looking to sell, and for a time, her plan had to been to buy and run it. Unfortunately, as she was only 18, she needed to have some form of business qualification to allow her to progress with that. This led to Ali starting a part-time business management degree, At the time one of her pub regulars was recruiting for the production departments on a shift basis. So she ended up packing wallpaper on a factory floor for 3 days a week while earning her degree. Sadly, by the time she had earned her degree, the pub she wanted to buy had been knocked down and turned into a block of flats! Though, after working in a different industry for 2 years she came to reevaluate her desire to run pubs, and came to the conclusion that she rather preferred the manufacturing industry and it’s ability to create something. Ali also enjoyed the people within the factory she had been working at, and opted to stay there with her mentor, the Technical Manager, who offered her a place in the technical floor. So began her new role as the quality assurance technician. This progressed as Ali worked her way up through Assistant quality tech to quality tech, to assistant quality manager to quality manager. Her mentor at the time was phasing out to retire, so Ali was essentially his legacy plan. When he did retire Ali became the Quality Technical R&D and Health and Safety Manager. While in that role Ali implemented ISO 9001, in addition to business research and development programmes for product and process development compliance. Which amounted to sitting on trade association technical committees, monitoring upcoming legislation and also contributing to British technical committees that helped write the legislation for the wall-coverings sector. She later went onto help them implement ISO 45001. Ali then had her daughter, Angie, during lockdown. For as much as she loves the manufacturing sectors, the worktime for those roles isn’t very flexible. She knew that when looking back, she would rather have spent more time with her daughter than working, so she wanted to find something with a bit more flexibility to allow her to spend quality time with her family. It wasn’t an easy decision by any means, but she was drawn to consultancy due to the variety of work and clients and the increased flexibility it would allow. She Started to work with Blackmores following lockdown, appreciating the family values that our business was built on. Here she shares the sentiment: “I'm very rarely the smartest person in the room, and we learn so much from each other.” Going on to say that the varied background of Blackmores consultants offers insight into so many other industries, and she’s drawn on their experience of how to apply ISO Standards in the real world. [14:15] What is Ali’s favourite aspect of being a Consultant? – Ali enjoys working with SME’s due to her background of working with a 4th generation family owned business. They can often see the value in ISO Standards, and Ali works with them to ensure that do what they do best while working towards certification. Many businesses simply gain ISO as a tick box for tenders or stakeholder requirements, which isn’t necessarily bad, it’s just how things work in the real world. But Ali figures that if they have to get it, get it right by ensuring it drives internal improvements. Often times clients are pleasantly surprised by all the benefits of effective ISO implementation. Ali’s favourite clause in Standards is 6.2 Objectives as they drive proactive improvement in businesses. The key is to truly embed them in business processes and practices to ensure they are being achieved. This is something that even mature management systems can get wrong. She’s seen cases where Objectives were one person’s responsibility, which can lead to them being a separate part of the management system. They need that lightbulb moment from leadership to realise the function of objectives to drive the whole business by taking a more proactive stance. Many times, Ali’s heard of fantastic internal initiatives being run in a business without them being tied to any objective. By making them an objective, people can make a case for more time, resources and people to complete it, in addition to making the outcome a quantifiable and measurable metric for continual improvement. [17:35] Practice what we preach – Ali has helped re-shape how we at Blackmores approach our sustainability objectives, turning them into something we can measure the impact of. As Ali states: “The want for perfection stops progress”. It admirable to strive for perfection, but it isn’t realistic and it often hinders any meaningful progress. When it comes to things like sustainability, you should want to drive improvement now. [18:55] What Standards does Ali specilaise in and why? Starting with: ·      ISO 20400 Sustainable Procurement: This is a guidance Standard thar businesses can align with to ensure their procurement practices are sustainable. This extends to the supply chain, expanding each businesses sphere of influence.   ·      ISO 26000 Social Responsibility: Another guidance Standard that acts a solid foundation for businesses looking at starting their ESG journey. It tackles the human element of sustainability, in addition to consideration for fair labour practices and community support.    ·      ISO 9001 Quality Management: The first Standard Ali implemented, and the core foundation that many businesses start with when diving into the world of ISO Standards.    ·      ISO 14001 Environmental Management: Ali is a fan of sustainability in general, enjoying it’s tangible impacts and the creativity in the many ways people can incorporate it into their business. ·      ISO 45001 Health and Safety Management: The second standard Ali implemented, it’s also one of the core 3 ISO’s that businesses tend to implement. It’s importance as a tool to prevent harm to humans cannot be understated. ·      ISO 50001 Energy Management and ISO 20121 Sustainable Events: Ali helps to audit these standards, once again these fall into her preference of sustainability as a focus. It’s clear to see that Ali loves Sustainability and safety based Standards, and the reason is mostly due to ensuring there is a bright future for her daughter. Ultimately, she aims to help people and wants to work with Standards that can make a real difference. [22:05] What is the biggest challenge Ali had faced during a project and how did he overcome it?: The confidence clients have in themselves. People are very knowledgeable about what they do and the processes involved, but because they aren’t familiar with ISO speak they feel very lost when implementing a standard. Ali’s main role is translating that ISO speak, and assuring clients that they’re already covering key points such as risks, opportunities and what they’re doing to address them. For many businesses, it’s simply a case of dotting the I’s and crossing the t’s ahead of certification. The challenge for Ali is to build that confidence in clients ahead of their Stage 1 and 2 Assessments. This is where internal audits come in handy, they act as dummy runs of the assessment. Ali can reaffirm what is meant by each clause and what it relates to in terms of the business activities or certain documentation. She also reminds clients that they can question the assessor if they don’t understand how they’ve worded a questions. It’s up to the assessor to make themselves understood.   Assessors also understand that your management system will be immature on it’s first certification, it’s simply a starting point on which you’ll build and continually improve. [27:15] What is Ali’s proudest achievement?   ·      Changing careers: Ali saw herself retiring in her previous role and so it was a significant change to make the leap to consultancy. She still loves the manufacturing and wall-covering industry, and will always have a keen interest in it, but she can now see herself retiring in a consultancy role. ·      Having Angie: Her daughter is one of her proudest achievements, but it also scared everything out of her. It put her at her physical limit, and she’s quite happy to have an only child, ensuring that she gets to spend as much time with as possible while she’s growing up. ·      Doing a skydive: As part of a ‘Before your 30’ list with friends, Ali took part in a skydive. Which she admits was horrendous and not something she would do again, but she’s proud to have pushed past the fear as getting out of your comfort zone is often the key to growth. If you’d like any assistance with implementing ISO standards, get in touch with us, we’d be happy to help! We’d love to hear your views and comments about the ISO Show, here’s how: ●     Share the ISO Show on Twitter or Linkedin ●     Leave an honest review on iTunes or Soundcloud. Your ratings and reviews really help and we read each one. Subscribe to keep up-to-date with our latest episodes: Stitcher | Spotify | YouTube |iTunes | Soundcloud | Mailing List

Emergency preparedness is a term you’re likely familiar with regarding Health & Safety, but its application is also a key part of the Best Practice Environmental Management Standard, ISO 14001.  ISO 14001 aims to help organisations reduce their overall impact on the environment, and this includes mitigating and responding to any incidents that may adversely affect factors such as biodiversity and water quality in areas where your business is based. While not applicable to every industry, there are many which need to take greater responsibility in the event of an environmental incident. ISO 14001 provides key guidance in how to create effective processes to ensure you respond swiftly, and in alignment with the law. In this episode Ian Battersby explains what is meant by emergency preparedness and response within ISO 14001, and how that can apply to your business. You’ll learn ·      What is emergency preparedness and response in ISO 14001? ·      How do you approach Clause 8.2 in ISO 14001? ·      Planning for an environmental emergency ·      Definitions of different types of emergency ·      How can you prevent an environmental emergency?   Resources ·      Isologyhub ·      Learn more about ISO 14001   In this episode, we talk about: [02:05] Episode Summary – Ian explains the purpose of clause 8.2 in ISO 14001, emergency preparedness and response. [02:35] What is meant by ‘emergency preparedness and response’ in ISO 14001?: Many will be familiar with emergency preparedness and response in relation to Health and Safety. In Standards such as ISO 45001, it’s about ensuring there are plans in place to reasonably foresee and prevent any serious harm to a person or persons affected by our activities The aim with Clause 8.2 in ISO 14001 is to minimise the risk an organisation poses to the environment. Though, these aren’t mutually exclusive and some environmental response plans can prevent harm to both people and the environment. Ian seeks to clarify this clause further as many have a tendency to point towards their fire evacuation plan and fire drills as the first piece of evidence when demonstrating conformity to clause 8.2 in ISO 14001. While fire is very violent to the environment once it's occurred, the evacuation of people during such an event building offers little in the way of an environmental response. [05:10] Breaking down Clause 8.2: Clause 8.1 states: “The organization shall establish, implement and maintain the process(es) needed to prepare for and respond to potential emergency situations identified in 6.1.1.” Like with many Standards, it references an early clause where you should be identifying the relevant emergency situations. Clause 6 focuses on risk and opportunities, and in the case of ISO 14001 this is where you’ll establish your environmental aspects and compliance obligations. Specifically, Clause 6.1.2 states: “Within the defined scope of the environmental management system, the organization shall determine the environmental aspects of its activities, products and services that it can control and those that it can influence, and their associated environmental impacts.” This would take into consideration any abnormal conditions and reasonably foreseeable emergency situations. So, this is where you should already have established the emergency situations for which you need to plan for.  Risk management is a core of the standards and planning for emergency situations is a core of risk management.  You don’t write plans in isolation; you will have already established what’s important. [07:30] Planning for emergency: As stated in Clause 8.2: “The organization shall plan: a)    to take actions to address its risks b)    how to: 1)    integrate into environmental management system or other business processes; 2)    evaluate the effectiveness of these actions.” This is all part of the familiar PDCA cycle. From Ian’s perspective as an auditor, he won’t look at emergency plans first, instead looking at an organisations Aspects & Impacts Assessment. The standard isn’t prescriptive on how you assess the impact of what you do or the risks.  The methodology is your choice, but it is very explicit in that the content must include abnormal conditions and reasonably foreseeable emergency situations. [09:40] What are the definitions for different types of emergency situations? Normal situations are when everything operates as intended, Business as usual, the day-to-day activities you expect: E.G. Standard operation of machinery, a vehicle getting from A to B without issue. Abnormal situations are when things aren’t quite right, not catastrophic, but not business as usual; you can still achieve your intended outcome, but maybe not as quickly or efficiently: E.G. machinery running inefficiently or perhaps using more fuel or lubricant than usual. They don’t necessarily require an emergency plan, but you may want to monitor the severity of such situations and their potential for significant impact if unaddressed. Emergency situations are serious events requiring immediate attention and which could cause significant environmental impacts. The type of emergency situation that could possibly occur will depend on the type of organisation, but common ones include fire or chemical / fuel spill. [11:30] What is required by the Standard? – As stated: You are required to: A) plan to respond to prevent or mitigate adverse environmental impacts from emergencies; (not human) B) respond to actual emergencies; C) prevent or mitigate the consequences of emergencies; D) periodically test the planned response; E) review and revise the process, in particular after the occurrence of emergency or test; F) provide relevant information and training, to relevant interested parties, including persons working under its control. [13:00] Examples of Emergency Situations – We’ll look at a common one, fire. There are still 22,000 workplace fires in the UK each year, which is a significant environmental impact. That amounts to approximately 2,700 tonnes of carbon emissions annually. This in addition to the atmospheric toxins, ground/water contamination, resource loss, waste etc.  So, in considering fire as an environmental emergency, these are the impacts. IOSH states that the most common cause for workplace fires is faulty or misused electrical equipment, followed by flammable/combustible materials, dirt and clutter, human error, smoking and cooking. One thing to note about those causes is that they are generally required to be controlled by specific legislation. So, you would be looking for a link between compliance obligations (or legal) register, the Aspects & Impacts Assessment and the controls in place to minimise the risks identified in both. Faulty electrics would stand out, so you would look at what measures could be put in place to prevent such faults occurring, including: ·      Preventive maintenance of equipment ·      Inspection and testing of electrical fixed wiring ·      Portable appliance testing By demonstrating the processes in place to address these, you can evidence compliance obligations and the planning to reduce the possibility of an emergency situation arising. However, a fire may still occur [15:40] Example emergency situation – Prevention: – You should look at the planning to prevent such a situation escalating into a full-blown emergency in order to prevent the environmental impact. This could include: ·      The maintenance, inspection and testing of fire detection or suppression systems ·      The inspection and servicing of firefighting equipment. ·      Firefighting equipment training for personnel Based on what you know about the causes of fire, you should examine smoking policies/practices, catering equipment maintenance, housekeeping, hazardous material management etc. Proof of fire drills alone enough when it comes to emergency preparedness and response in ISO 14001. Especially from an auditor’s perspective, as how can you prove that your fire drills are useful in minimising the impact on the environment? [17:15] Other emergency situations – Spillage: An area where you can more readily see that preparedness and response directly affects the environmental outcome is where there has been a spillage of some kind. A spill of a lubricant on a shop floor, for instance, has the potential to cause a slip hazard, affecting the safety of people.  The preventive measures, again, have similarities regardless of whether we’re talking safety or environment, but do differ in that we’re trying to prevent the lubricant then reaching the outside world and contaminating ground or water; that’s the environmental impact.  Waste disposal associated with the mopping of a spill; you may be dealing with hazardous waste, which must be disposed of in a controlled fashion under the law. If you’d like assistance with ISO 14001, get in contact with us, we’d be happy to help. We’d love to hear your views and comments about the ISO Show, here’s how: ●     Share the ISO Show on Twitter or Linkedin ●     Leave an honest review on iTunes or Soundcloud. Your ratings and reviews really help and we read each one. Subscribe to keep up-to-date with our latest episodes: Stitcher | Spotify | YouTube |iTunes | Soundcloud | Mailing List   hh32NSNrT8MWkAPwsroK

Watch the Podcast Video on our YouTube Channel There has been a global shift towards the sustainability effort in recent years, highlighted by various regulations and schemes aimed at businesses to help encourage a more sustainable way of operating. This has led to more focus on the voluntary use of carbon markets, in which companies help to fund decarbonisation projects by buying carbon credits. In this episode Mel is joined by Tiffany Cheung, the Corporate Engagement Lead at carbon markets data company AlliedOffsets, as they discuss the landscape of the market, including current trends, decarbonisation challenges in different sectors, and top tips for navigating the space. You’ll learn ·       What impact will corporate disclosures have on the carbon markets? ·       What are the rates of decarbonisation across different sectors? ·       What are the emerging buyer trends within the voluntary carbon market? ·       What is an internal carbon price? ·       How can companies use a carbon price to ensure that their sustainability goals are financially viable? ·       How can AlliedOffsets’ data help companies when entering the carbon market? ·       What are the critical steps businesses should take to mitigate price volatility and ensure that they're investing in high quality, impactful carbon offsetting projects?   Resources ·       AlliedOffsets ·       AlliedOffsets LinkedIn ·       AlliedOffsets Corporate Emissions Data and Findings ·       Carbonology   In this episode, we talk about: [00:30] Episode Summary – Tiffany Cheung joins Mel to discuss buyer trends in the voluntary carbon market (VCM), including insights on the use of internal carbon prices and top tips for businesses looking to enter the market. Don’t forget to catch-up on the previous episode where Tiffany explains what the voluntary carbon market is and gives an insight into the lifecycle of carbon credits. [01:30] What impact will increased corporate disclosures have on the carbon markets? There are 2 main points: 1.      Already on the Agenda: Increased corporate sustainability disclosure may already fit into the changes that are taking place within the thinking of a company.  If a company is spending time on creating and publishing reports on their sustainability initiatives, it is likely that they will  be exploring their options for how they can take action more broadly.This is likely to be associated with increased engagement with the voluntary carbon markets, both through offsetting of carbon footprints and investing in carbon credits or project developers. 2.      Project Developer benefits: Project developers will likely benefit from increased insight to the kinds of projects that buyers are purchasing credits from. As a by-product, there may be more focused projects created based off what certain sectors are willing to offset or invest in. [02:55] What are the rates of decarbonisation across different sectors? To give a macro view from the public data available in corporate sustainability reports over the last few years, the biggest total polluters by sector continue to be energy, maritime, transportation and materials and mining. Looking at the positives, the energy sector, which has historically been the biggest polluter, has decreased its emissions in both scopes 1 and 2 since 2019. However, there’s still a very long way to go, and with major emitters recently rolling back their climate commitments, one shouldn’t assume that that trend will continue linearly. Another sector facing an interesting decarbonization journey is aviation, whose emissions have been increasing in recent years, although not quite to pre-COVID pandemic levels. This sector will have to grapple with its emissions whilst contending with forecasted growth in both consumer and business travel over the next decade. Many aviation companies are both committed to Science Based Targets initiatives (SBTi) and fall under CORSIA (Carbon Offsetting and Reduction Scheme for International Aviation), applying pressure on the sector to decarbonize as a whole. On a positive note, 18 sectors assessed by AlliedOffsets have decreased their average carbon emissions in scope 2 over the past few years, due in large part to increased renewable energy sourcing and improved energy efficiency. [07:10] What are the emerging buyer trends within the VCM?: AlliedOffsets are in a particularly good position to provide insight to this due to their comprehensive view of both historic buyer activity and new market entrants across the world. Chinese and German manufacturers have become a steady presence in the market, distinguished by their especially detailed credit retirement information. They’ll go as far as to specify the products and operating periods that are being offset, showing really high levels of engagement with their environmental impact and giving clear insight on their targeted offsetting approach. Another buyer trend to highlight is occurring within the Australian market, where AlliedOffsets is seeing lots of credit retirement associated with the carbon neutrality certification scheme Climate Active. This is driving most voluntary retirements from the region, particularly from real estate and pension funds. [09:15] What is an internal carbon price? An internal carbon price is a specific cost or budget set by a company for the carbon or other greenhouse gas emissions that are associated with their specific business activities. This is typically based off of something like the World Bank calculations on the cost of climate change to society, or it could be based on the price of carbon set by an compliance emissions trading scheme (ETS) that is local to that business. [10:20] How can companies use a carbon price to ensure that their sustainability goals are financially viable?: For example, EasyJet has an internal carbon price that's based off of the UK emissions trading scheme. That internal carbon price is factored into the airline’s master financial models and that drives their 5 - 10 year long financial plans. That helps to determine things like the geographical routes that EasyJet operates, which can affect profitability. An internal carbon price makes emissions tangible and material, playing a role in the wider business decisions. An airline operator is considered a big emitter and is likely to already be exposed to some kind of compliance carbon scheme which has a financial impact on the company. Nonetheless, having an internal carbon price can be useful regardless of how big your business is, as it can be used to budget certain activities and see where emissions might be centralised in a particular department. An example of this in practice may be that you have an internal carbon price of £50 per tonne, you can take that to an emissions calculator or advisor to work out a budget based on the carbon footprint of different activities or departments in the business. The idea being that if you can identify the cost associated with the emissions created, you know how much to spend to decarbonize. This process may also highlight where you can make further reductions, i.e. reducing air travel and supporting staff on switching to less polluting forms of transport. [12:55] How can AlliedOffsets data help companies interested in an internal carbon price?: AlliedOffsets has data on the carbon pricing programmes used by companies to set their internal carbon price, as well as the specific price itself for hundreds of different companies. This dataset also includes companies that haven't chosen to use a particular pricing scheme but have set an internal carbon price based just off of their unique activities.  This helps to contextualize the current range of internal carbon prices and the logic behind them. [13:50] The need for regular review: Internal carbon pricing is something that needs to be reviewed on a regular basis as the costs associated with emitting in some business locations is not going to remain the same. This can also be affected by national legislation, which can increase the financial risk of emitting. Tiffany recommends reviewing your internal carbon pricing at least annually. They’re seeing an emerging trend within the environmental space where sustainability related impacts within a company are being sequestered into their wider financial operations. The impacts of climate change are going to become more material to businesses in the very near future. As a result of this, it makes sense for businesses to assess their internal carbon price as part of their annual financial reviews.  [16:30] What are the critical steps businesses should take to mitigate price volatility and ensure that they're investing in high quality, impactful projects? Tiffany recommends the following steps: 1.      Focus on decarbonising your business operations first and engaging with your suppliers to tackle scope 3 emissions as well. It’s more beneficial to both the business and environment for you to reduce emissions as much as possible, so you have a smaller residual footprint to offset. 2.      Decide what kind of projects / carbon credits you want to spend money on, whether it's offsetting or investing. Besides the climatic impact, there are many co-benefits of carbon projects to choose from, such as improved biodiversity, water supply, or workplace gender equality. Knowing what is valuable to you and your business will help in the selection of these projects. 3.      Build strong relationships with developers directly where possible and buy credits directly, in advance. This also has the benefit of ensuring a supply of carbon credits into the future without the worry about how the market might change or become more volatile within the next couple of years. 4.      If your business is operating at quite a significant scale, it would be wise to work with another company that's focused on the voluntary carbon market, like AlliedOffsets. They can provide guidance and forecasting for the specific projects or sectors you’d like to buy from, reducing uncertainty on the future of the market.   [20:00] Have faith in the impact of the voluntary carbon market  – The voluntary carbon market has been through a turbulent period of time, and it’s alright to feel cautious about entering a space which has been unstable in the past. The concerns about reputational risk associated with offsetting have greatly reduced in the last few years, and it’s set to reduce further as the voluntary and compliance markets merge and integrity improves. However, if you decide that offsetting isn’t right for your business, there are still other tools that you can take from the voluntary carbon markets to help drive decarbonisation, such as internal carbon pricing. If you’d like to learn more about AlliedOffsets, visit their website! If you’d like any assistance with carbon standards, get in touch with Carbonology, they’d be happy to help! We’d love to hear your views and comments about the ISO Show, here’s how: ·       Share the ISO Show on Twitter or Linkedin ·       Leave an honest review on iTunes or Soundcloud. Your ratings and reviews really help and we read each one. Subscribe to keep up-to-date with our latest episodes: Stitcher | Spotify | YouTube |iTunes | Soundcloud | Mailing List  

Watch the Podcast Video on our YouTube Channel No business can operate with zero emissions, there’s only so much you can reduce before you need to look at offsetting the remainder to truly achieve Net Zero. Carbon offsetting comes in many forms, but the ones people will be most familiar with include purchasing carbon credits for nature restoration projects and tree planting efforts. Historically, the voluntary carbon market has been troubled by project developers who haven’t operated their carbon offsetting projects to the environmental and social standards expected by buyers. With the use of offsets on the rise, it’s clear that there is a need for transparency and standardisation within these voluntary markets. In this episode Mel is joined by Tiffany Cheung, the Corporate Engagement Lead at AlliedOffsets, to explain what the voluntary carbon market is, how carbon credits work from purchase to retirement and what quality controls are in place to ensure they are reliable. You’ll learn ●       Who are AlliedOffsets? ●       What is the voluntary carbon market? ●       What are carbon credits, and how do they work? ●       What quality controls are in place for carbon credits? ●       How will the voluntary carbon market affect future regulatory requirements? ●       What does it mean to retire a carbon credit? ●       What services do AlliedOffsets offer?   Resources ●       AlliedOffsets website ●       AlliedOffsets LinkedIn ●       Carbonology   In this episode, we talk about: [00:30] Episode Summary – Tiffany Cheung joins Mel to discuss the voluntary carbon market, explaining the carbon credit lifecycle and what quality controls are in place to ensure they are reliable. [01:40] Who are AlliedOffsets?: AlliedOffsets aggregates data from over 30 carbon registries and compliance schemes as well as off-registry transactions to present the most comprehensive dataset on carbon offsetting activity globally. Their data has been featured in publications such as the Financial Times, Forbes, The Guardian and many more. [03:20] How did Tiffany get involved in carbon markets?: Tiffany has been working with AlliedOffsets for over a year, and a lot of their role as Corporate Engagement Lead includes talking to a variety of stakeholders on the buying side of the carbon market, understanding what their motivations for being in the space are, what their strategies are going into the future and their wider decarbonisation process. Tiffany also looks at their transactional activity and how that has changed over time. Prior to their position at Allied Offsets, Tiffany worked in a major environmental advisory and brokerage firm based in London. There they gained a knowledge of both voluntary carbon markets as well as renewable energy markets in that space, this in addition to learning more about the accompanying compliance trading and risk side of things. [06:00] What is the carbon market?: Carbon markets describe markets where carbon is translated from a greenhouse gas into an asset, or a commodity that can be traded. These tend to represent actual tonnes of atmospheric carbon dioxide that have been sequestered somewhere else in the world through various projects. Compliance carbon markets work differently from voluntary carbon markets. Compliance carbon markets provide regulated ways of pricing carbon, both in terms of reducing emissions and generally making polluters aware of the environmental impact of their emissions in a financial way. They may be associated with the voluntary carbon market, also known as the VCM, or they may be referred to as a kind of carbon tax. [07:05] What’s the difference between a voluntary carbon market and a non-voluntary carbon market? If you are engaging in the voluntary carbon market, there is no legislative impetus for you to be involved in it. It’s mostly driven by a business’ own desire to offset emissions. The offsetting of residual emissions is done through the purchase of carbon credits, which are representative of 1 tonne of CO2 equivalent removed from the atmosphere. If you offset all of your remaining emissions, then you may be able to claim carbon neutrality for the year that the credits apply to. The benefits of carbon credit-issuing projects aren’t always related to solely greenhouse gas removal, and depending on a businesses motivations, you can help to fund a wide range of beneficial projects such as clean water provision or improved cook stoves which improve air quality in domestic settings. [09:25] What type of organisations are leading the way with carbon credit purchasing? – AlliedOffsets has unique access to the transaction history across 30 different global registries, enabling them to provide an up to date and wide ranging view on the voluntary carbon market. There is a very strong relationship between how polluting a sector is and how well engaged it is with the voluntary carbon markets. So major players include energy producers, aviation, maritime, ground transportation and mining and materials. There is also an increase in financial services, technology and telecommunications services entering the carbon market. Tiffany expects this trend to continue with increased data centre usage and artificial intelligence driving up energy consumption across these sectors. [11:10] How does the voluntary carbon market operate?: When a company first decides they want to buy carbon credits, ideally they would engage with a well-established broker or intermediary who can source a variety of carbon credits. It’s helpful for the broker to know what sort of carbon credits or projects a company is looking to invest in. There’s a lot of different options, including: ●       Forestry ●       Alternative land use ●       Blue Carbon ●       Engineered carbon dioxide removal The company will let the broker know how many tonnes of carbon credits they’d like to buy, attributed to a certain period of time or activity based on their quantification and existing carbon reporting. Market prices will range quite significantly based off of what technology type or methodology you're going with, but most carbon credits are currently sub $15. Once agreed, your intermediary will secure and retire the credits for you, from the registry and project developer. Retiring a carbon credit means they are taken entirely off the market and they're considered to be “spent” or used. Nobody else can use those as an investment or offset at that point, and the purchasing company can consider their carbon footprint to have been neutralised for the specified period. [12:00] What quality controls are in place for the voluntary carbon market? While there isn't a master registry, there are several registries across the world that generally dominate the market. They vary in terms of the methodologies that they may or may not specialise in, as well as with geographies. The biggest ones that you're most likely to see in the market are known as VCS, GS, ACR, and CAR. These account for about 80% of the total market volume by retirement and issuance. The way that these registries work is that they perform a bookkeeping function within the space. Projects will register their sequestered tonnes of CO2 removed with these registries, who will then check to see if these projects have complied with their methodology, which would have been set by a Standards Body. Once approved, those project developers can sell their credits as a commodity. When a business wants to buy credits, the type of projects they want to engage with will dictate the sort of registries they’ll be engaging with. There are also checks in place set by the registries to ensure that project developers use third parties to further validate their project activities. [16:45] What are the methodologies used in the voluntary carbon market? A methodology refers to the way in which a specific project should be undertaken in order to ensure that the pace of carbon sequestration and storage is consistent throughout the project's life. Registries are ultimately responsible for issuing the appropriate methodology, and the project developers need to be able to evidence compliance to that methodology. The process for a project to be registered is quite complicated, and it generally takes 2 – 3 years from concept to being in a position to issue credits. There is also a requirement to have their work validated by a Verification and Validation Body (VVB). These are third party auditors who check the evidence provided by project developers to ensure they comply with the necessary methodology. This may include the VVBs undertaking a site visit. [19:30] Will regulatory requirements be introduced within the voluntary carbon market?  – Tiffany states that there is definitely a demand for regulatory requirements in the space. There a two key drivers for this: The need for integrity among buyers – There are many sectors where engaging in a more unregulated space can be risky. Sectors such as the legal and financial sectors need a certain level of oversight to ensure they are making sound investments. Convergence of compliance and voluntary markets – This is a change that’s been happening over the past few years. This is being driven by governments taking part in the voluntary carbon market space and realising that they can yield returns for the country. Additionally, when they’re spending public funds, there needs to be a certain level of assurance in the projects they’re engaging with. There is also a growing appetite for businesses engaging in this market to ensure that they are doing the best thing possible ahead of the curve. There’s been a lot of negative press around greenwashing projects, leading to potentially tarnished reputations, to the need for proper checks and regulation is becoming a necessity.  [22:45] What does it mean for a carbon credit to be retired? – The point at which a carbon credit is retired is when it has been taken totally out of circulation for the market. That means that no other broker, intermediary or end buyer would be able to use that credit in any kind of capacity. It's like having the receipt to say this person has purchased this product, it belongs to them now and nobody else can use it.   [24:30] How are stakeholders using the data provided by AlliedOffsets? – AlliedOffsets has a very wide data set, with an equally wide range of stakeholders. Some particularly interesting use cases include: Benchmarking against the competition – Corporate buyers use their data to compare how their activity measures up to competitors or peers within their sector due to AlliedOffsets long view of historic activity. It highlights what projects are being favoured by their competitors and what kind of price points they should be looking at as well. Project developer research - Another common use case is that project developers will want to see who is active in the market and who they should be targeting for funding. AlliedOffsets can see specific buyer activity broken down by region as well as methodology, which means project developers have a really good chance of being able to engage with buyers who are entering the space and might not have established those direct procurement relationships. Government consultation - Markets can be a huge source of income from the private sector into the public purse. For example, you might have a voluntary carbon market scheme that's associated with a compliance scheme, which can mean tax benefits for complying businesses alongside socio-environmental benefits for the country. If you’d like to learn more about AlliedOffsets, visit their website or reach out to Tiffany for more about buyer activity in the VCM! If you’d like any assistance with carbon standards, get in touch with Carbonology, they’d be happy to help! We’d love to hear your views and comments about the ISO Show, here’s how: ●     Share the ISO Show on Twitter or Linkedin ●     Leave an honest review on iTunes or Soundcloud. Your ratings and reviews really help and we read each one. Subscribe to keep up-to-date with our latest episodes: Stitcher | Spotify | YouTube |iTunes | Soundcloud | Mailing List