The ISO Show

AI has been integrated into almost every aspect of our lives, from everyday software we use at work, to the algorithms that determine what content is recommended to us at home. While extraordinary in its capabilities, it isn't infallible and will open up everyone to new and emerging risks. Legislation and regulations are finally catching up to the rapid adoption of this technology, such as the EU AI Act and new Best Practice Standards such as ISO 42001. For those looking to integrate AI in a safe and ethical manner, ISO 42001 may be the answer. Today Rachel Churchman, Technical Director at Blackmores, explains what ISO 42001 is, why you should conduct an ISO 42001 Gap analysis and what's involved with taking the first step towards ISO 42001 Implementation. You'll learn · What is ISO 42001? · What are the key principles of ISO 42001? · Why is ISO 42001 Important for companies either using or developing AI? · Why conduct an ISO 42001 Gap Analysis? · What should you be looking at in an ISO 42001 Gap Analysis? Resources · Register for our ISO 42001 Workshop · Isologyhub In this episode, we talk about: [00:30] Join the isologyhub – To get access to a suite of ISO related tools, training and templates. Simply head on over to isologyhub.com to either sign-up or book a demo. [02:05] Episode summary: Rachel Churchman joins Steph to discuss what ISO 42001 is, it's key principles and the importance of implementing ISO 42001 regardless of if you're developing AI or simply just utilising it. Rachel will also explain the first step towards implementation – an ISO 42001 Gap Analysis. [02:45] Upcoming ISO 42001 Workshop– We have an upcoming ISO 42001 workshop where you can learn how to complete an AI System Impact Assessment, which is a key tool to help you effectively assess the potential risks and benefits of utilising AI. Rachel Churchman, our Technical Director, will be hosting that workshop on the 5th December at 2pm GMT, but places are limited so make sure you register your place sooner rather than later! [03:20] The impact of AI – AI is everywhere, and has largely outpaced any sort of regulation or legislation up until very recently. These are both needed as AI is like any other technology, and will bring it's own risks, which is why a best practice Standard for AI Management has been created. If you'd like a more in-depth breakdown of ISO 42001, check out our previous episodes: 166 & 173 [04:30] A brief summary of ISO 42001 – ISO 42001 is an Internationally recognised Standard for developing an Artificial Intelligence Management System. It provides a comprehensive framework for organisations to establish, implement, maintain, and continually improve how they implement and develop or consume AI in their business. It aims to ensure that AI risks are understood and mitigated and that AI systems are developed or deployed in an ethical, secure, and transparent manner, taking a fully risk-based approach to responsible use of AI. Much like other ISO Standards, it follows the High-Level Structure and therefore can be integrated with existing ISO Management systems as many of the core requirements are very similar in nature. [05:45] Why is ISO 42001 important for companies both developing and using AI? – AI is now becoming commonplace in our world, and has been for some time. A good example is the use or Alexa or Siri - both of these are Large Language AI Models that we all use routinely in our lives. But AI is now being introduced in many technologies that we consume in our working lives - all designed to help make us more efficient and effective. Some examples being: · Microsoft 365 Copilot · GitHub Copilot · Google Workspace · Adobe Photoshop · Search Engines i.e. Google Organisations need to be aware of where they're consuming AI in their business as it may have crept in without them being fully aware. Awareness and governance of AI is crucial for several reasons: For companies using AI they need to ensure they have assessed the potential risks of the AI such as unintended consequences and negative societal impacts, or potential commercial data leakage. They also need to ensure that if they are using AI to support decision making, that they have ensured that decisions made or supported by AI systems are fair and unbiased. It's not all about risk - organisations can also use AI to streamlining processes helping to become more efficient and effective, or it could support innovation in ways previously not considered. For companies developing AI, the standard promotes the ethical development and deployment of AI systems, ensuring they are fair, transparent, and accountable. It provides a structured approach to risk assessment and governance associated with AI, such as bias, data privacy breaches, and security vulnerabilities. And for all, using ISO 42001 as the best practice framework, organisations can ensure that their AI initiatives are aligned with ethical principles, legal requirements, and industry best practices. This will ultimately lead to more trustworthy, reliable, and beneficial AI systems for all. [10:00] Clause 7.4 Communication – The organisation shall determine the internal and external communications relevant to the system, and that includes what should be communicated when and to who. [09:00] What are the key principles outlined in ISO 42001? – · Fairness and Non-Discrimination - ensuring AI systems treat all individuals and groups fairly and without bias. · Transparency and Explainability - Making AI systems understandable and accountable by providing clear explanations of their decision-making processes. · Privacy and Security - Protecting personal data and privacy while ensuring the security of AI systems. · Safety and Security - Prioritising the safety and well-being of individuals and the environment by mitigating potential risks associated with AI systems. · Environmental & Social - Considering the impact of AI on the environment and society, promoting sustainable and responsible practices. · Accountability and Human Oversight - Maintaining human control and responsibility for AI systems, ensuring they operate within ethical and legal boundaries. You'll often hear the term 'Human in the loop'. This is vital to ensure that AI is sanity checked by a human to ensure it hasn't hallucinated or result 'drifted' in any way. [11:10] Why conduct an ISO 42001 Gap Analysis? What is the main aim? – Any gap analysis is a strategic planning activity to help you understand where you are, where you want to be and how you're going to get there. The ISO 42001 gap analysis will identify gaps and pinpoint areas where your AI practices need to meet the ISO 42001 requirements. It aims to conduct a systematic review of how your organisation uses or develops AI to then assess your current AI management practices against the requirements of the ISO 42001 standard. This analysis will then help you to identify any "gaps" where your current practices do not fully meet the standard's requirements. It also helps organisations to understand 'what good looks like' in terms of responsible use of AI. It will help you to prioritise improvement areas that may require immediate attention, and those that can be addressed in a phased approach. It will help you to understand and mitigate the risks associated with AI. It will also help you to develop a roadmap for compliance to include plans with clear actions identified that can then be project managed through to completion, and as with all ISO standards it will support and enhance AI Governance. [13:15] Does an ISO 42001 gap analysis differ from gap analysis for other standards? – Ultimately, no. The ISO 42001 gap analysis doesn't differ massively from other ISO standard gap analysis, so anyone who already has an ISO Standard and has been through the gap analysis process will be familiar with it. In terms of likeness, ISO 42001 is similar in nature to ISO 27001 in as much as there is a supporting 'Annex' of controls and objectives that need to be considered by the organisation. Therefore the questions being asked will extend beyond the standard High Level Structure format. Now is probably a good time to note that the Standard itself is very informative and includes additional annex guidance information to include · implementation guidance for the specific AI controls, · an Annex for potential AI-related organisational objectives and risk sources, · and an Annex that provides guidance on use of the AI management system across domains and sectors and integration with other management system standards. [14:55] What should people be looking at in an ISO 42001 gap analysis? – The Gap Analysis will include areas such as looking at the 'Context' of your organisation to better understand what it is that you do, or the issues you are facing internally and externally in relation to AI - both now and in the reasonably foreseeable future, and also how you currently engage with AI in your business. This will help to identify your role in terms of AI. It will also look at all the main areas typically captured within any ISO standard to include leadership and governance, policy, roles and responsibilities, AI Risks and your approach to risk assessment and treatment and AI system impact assessments. It also looks at AI objectives, the support resources you have in place to manage requirements, awareness within your business for AI best practice and use, through to KPI's, internal audit, management review and how you manage and track issues through to completion in your business. The AI specific controls look more in-depth at Policies related to AI, your internal organisation in relation to key roles & responsibilities and reporting of concerns, The resources for AI Systems, how you assess the impacts of AI Systems, The AI system lifecycle (AI Development), Data for AI Systems, Information provided to interested parties of AI Systems, and the use of AI Systems and 3rd party and customer relationships. [18:10] Who should be involved in an ISO 42001 Gap analysis? – An ISO 42001 gap analysis looks at AI from a number of different angles to include organisational governance that includes strategic plans, policies and risk management, through to training and awareness of AI for all staff, through to technical knowledge of how and where AI is either used or potentially developed within the organisation. This means that it is likely that there will need to be multiple roles involved over the duration of a gap Analysis. At Blackmores we always provide a Gap Analysis 'Agenda' that clearly defines what will be covered over the duration of the gap analysis, and who typically could be involved in the different sessions. We find this is the best way to help organisations plan the support needed to answer all the questions required. It's also important to treat the gap analysis as a 'drains up' review, to help get the most benefit out of the gap analysis. This will ensure that all gaps are identified so that a plan can then be devised to support the organisation to bridge these gaps, putting them on the path to AI best practice for their business. If you'd find out more about ISO 42001 implementation, register for our upcoming Workshop on the 5th December 2024. If you'd like to book a demo for the isologyhub, simply contact us and we'd be happy to give you a tour. 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

One of the biggest contributors to a stagnating ISO Management System is a failure to communicate. This has certainly been true in our experience with implementing ISO Standards for over 18 years, and as a result, we make sure to highlight awareness and communication as an integral step of the Implementation process. It's a wasted effort only to have your management system gathering dust in a rarely visited folder on your server. If you want to reap the benefits of ISO implementation, it's in your best interest to make everyone aware of their role in relation to your management system and its continual improvement. Today Ian Battersby explains what ISO Standards mean by awareness and communication, why they are so integral to a successful management system and how you can effectively communicate your management system. You'll learn · What does awareness and communication mean in relation to ISO Standards? · Why should you communicate your management system? · The benefits of management system awareness · How can you effectively communicate your ISO management system? Resources · Isologyhub In this episode, we talk about: [00:30] Join the isologyhub – To get access to a suite of ISO related tools, training and templates. Simply head on over to isologyhub.com to either sign-up or book a demo. [02:05] Episode summary: Ian Battersby will be explaining what ISO Standards mean by awareness and communication, and why they are so integral to a successful Management System. [02:30] What is awareness and communication so important?– The success and failure of a management system depends on it's existence being known and understood within an organisation. Staff have a key part to play, and they need to know their part in the Management System and how it aligns with the organisations direction. [03:20] Extra guidance available for awareness and communication – There is a Standard that accompanies ISO 9001, called ISO 9004:2018 – Quality of an Organisation: Guidance to achieve sustained success. This is a great companion to any Standard, as it provides general guidance on how to properly embed a management system within your business. It talks at length about people and the need to ensure that they are competent, engaged, empowered and motivated. These are crucial as: Engagement of people enhances the organisations ability to create value for interested parties. Empowerment motivates people to take responsibility for their work and the results of their work. These can be achieved by providing people with necessary information with authority and the freedom to make decisions related to their own work. People should understand the significance and importance of their role, specifically in creating that value to meet and exceed customer expectations. [05:30] What should be communicating according to ISO Standards? – Taking ISO 9001 as the example, because it is the basis for most ISO Standards, it has a specifies the following: 5.2.2 Quality Policy - The policy should be available and maintained as documented information, so must be issued somewhere so that people can see it. But it also, quite importantly, must be communicated, understood and deployed within the organisation. It also needs to be made available to other relevant and trusted parties. 5.3 Organisational roles, responsibilities and authorities - Top management have a responsibility here. They must ensure that responsibilities and authorities for relevant rules are assigned, communicated and understood within the organisation. There's a lot to consider here as this will also take into account for ensuring processes are delivering expected outputs, the reporting of system performance and improvement and the promotion of customer focus throughout the organisation. 6.2 Objectives - The organisation should establish objectives. These will be targeted at relevant functions, levels and processes and should be communicated to the relevant people affected by those objectives. 7.3 Awareness – Includes the specification that anyone working under the organisations control, so this could include indirect workers, must be aware of your quality policy. Also included is the awareness of objectives and staff's contribution to the effectiveness of the management system. People aslo have to be aware of the implications of not conforming to the requirements of the management system or standard. [09:30] The implications of not following requirements – You need to consider what happens if someone doesn't follow a process. For Standards such as ISO 45001 Health & Safety management, following processes could be a matter of someone getting hurt or breaking the law. [10:00] Clause 7.4 Communication – The organisation shall determine the internal and external communications relevant to the system, and that includes what should be communicated when and to who. [10:30] When should you deliver ISO Management System awareness and communication training? – If you're just starting out on your ISO Implementation journey, it's crucial to communicate at the outset the importance of the process of achieving certification. The level of awareness will vary depending on people's roles, i.e: Top Management: Top management must understand the role of the management system in relation to the strategic direction of the organisation as part of context, they must understand what the management system contributes to the overall business outcomes. While top management don't need to know standards inside out, they must be aware and must have understanding of the overall purpose of the standard and the benefits that standard will bring to the organisation. To gauge the level of awareness top management need, ask yourself, would you be happy to let them be interviewed in private by a third-party assessor in regards to all of their responsibilities in relation to the management system? [13:20] General awareness for the workforce– While leadership require a greater level of awareness, there is still a need for general staff to have a certain level of management system awareness. For those on their first implementation journey, you should bring people in from the very beginning, this includes all staff and those working indirectly under your organisation. You will want to make them aware of the following: What is a quality management system? – Define what it is and what it means What's important about the Standard? – People don't need to know the intricacies of standard subclauses, so just select important aspects such as the Plan Do Check Act (PDCA) cycle If you're integrating Standards, what are some common requirements? – If you're integrating a new standard, what requirements specific to that new standard need to communicated? [15:15] Join the isologyhub and get access to limitless ISO resources – From as little as £99 a month, you can have unlimited access to hundreds of online training courses and achieve certification for completion of courses along the way, which will take you from learner to practitioner to leader in no time. Simply head on over to the isologyhub to sign-up or book a demo. [17:20] General awareness for the workforce continued – You will also need to make sure people are aware of: What do they need to know in relation to certification? – This can include the date you're working towards, what might be expected of them during an ISO assessment, what does the certification actually mean for the business? Accessing the Management system – How can people find your management system? What documents does it hold? How do you use it? And how does this impact on staff's day to day activities? Staff's role in relation to the Management system – How do staff contribute to the management system on a daily basis? How do they contribute to business objectives? How does the management system benefit them? – Your management system will include tools and guidance on how to carry out certain activities. It explains how improvements can be suggested and made and how audits work. Ultimately it provides a structured approach to ensure everyone is singing from the same song sheet. The importance of complying with policies, processes and procedures – including the consequences of not complying with them. Raising issues relating to non-conformity, the effectiveness of the management system and any potential improvements – You can't have eyes everywhere, and the people working in alignment with your processes can better highlight where something may not be working. This also increases engagement as people will have a real impact on how your business operates. [20:15] Specific standard considerations for communication – The focus of elements of your communication will be tied to the specific ISO Standard you're implementing. I.e. A Health & Safety management system will include communication of key risks and hazards, how to report safety issues and abiding by Health & Safety law Environmental management systems may include awareness of the need to protect the world we live in, how each person can help lessen their impact on an individual scale ect. [21:00] Other key roles and related communication – There are other key roles within the organisation which will have specific communication requirements. These will be people like operational functional managers with key roles in processes they may be involved in, i.e. sales, design, purchasing, calibration ect. If they've got specific functions in the organisation with respect to the management system, they need to understand them as much as top management needs to know theirs and the general workforce need to know theirs. [21:50] Communicating key changes to the Management system – You need to continually communicate to the workforce when changes occur to the management system. That communication doesn't stop as soon as you're certified! For first time implementation, you'll want to communicate when you've achieved certification. [22:30] The importance of communication within a Management System – If people are aware of their role and importance to a management system, they will be more engaged with its operation. This can include reporting on objectives progress during team briefs, raising potential issues and non-conformities or opportunities for improvement, highlighting customer complaints, monitoring number of incidents at work ect All of these contribute to the success of the business and need to be reported on continually. These can turn into lessons learned, which could lead to major system changes where documentation or processes need to be updated and communicated. [24:30] What's the best way to communicate your ISO management system? – Not all organisations are the same, so there is no right or wrong way to do so. A few suggestions include: · SharePoint · Teams Channel · E-mail / internal newsletters · Bulletins · In-person training · Videos For any of the above you may need to consider how to record who has completed set awareness training. [25:30] A final thought – If an auditor stops and asks a worker about your quality policy, what will that person say to that auditor? We understand that the quality policy must be communicated, but how does each person understand it? Your awareness raising needs to capture methods of ensuring that that happens, which is a tricky task! They do not need to know a Standard verbatim, but they should know the importance of complying with it, what a non-conformity within that system means, and what are the consequences are if they don't follow the rules. If you'd like to book a demo for the isologyhub, simply contact us and we'd be happy to give you a tour. 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

A crucial part of Implementing any ISO Standard is addressing your risks and opportunities. This is a key part of Clause 4 Context of the organisation, which expresses and explicit need to review and assess what internal and external factors could help and hinder in achieving your business goals. While ISO Standards don't define a definitive method of doing so, many have adopted the practice of carrying out a SWOT and PESTLE analysis. Today Ian Battersby explains what a SWOT and PESTLE analysis is, the key questions you should be asking and the importance of continually reviewing and updating the results as your management system matures. You'll learn · What is a SWOT analysis? · What is a PESTLE analysis? · Examples of questions you should be asking during a SWOT and PESTLE · How often should a SWOT and PESTLE be conducted? · Examples of SWOT and PESTLE in practice Resources · Isologyhub In this episode, we talk about: [00:30] Join the isologyhub – To get access to a suite of ISO related tools, training and templates. Simply head on over to isologyhub.com to either sign-up or book a demo. [02:05] Episode summary: Ian Battersby will be explaining what a SWOT and PESTLE exercise is, it's role in fufilling key requirements in Clause 4 of any ISO Standard, and the key questions you should be asking during the exercise. [02:30] What is a SWOT and PESTLE analysis? – This is one is the tools you can use to look at various factors that affect your organisation. SWOT standards for: · Strengths · Weaknesses · Opportunities · Threats PESTLE standards for: · Political · Economical · Social · Technological · Legal · Environmental And in recent years, people have added ethical into PESTLE too. Whether that's on its own or integrated within the other elements is up to the organisation and how they want to run the exercise. Both analysis are fundamental in helping organisations understand the benefits and pitfalls of a project, management system implementation included. [05:05] Where in the Standard is there a need for a SWOT and PESTLE? – Clause 4 in all ISO Standards is known as 'Context of the organisation', which you need to establish early on in order to set the foundations for building your management system. Context is the world in which an organisation works, it is the considerations of the internal and external factors that affect what you do. SWOT and PESTLE, while not specifically referenced in the Standard, is a highly recommended tool as it directly assesses multiple internal and external factors and can fulfil the requirements of any ISO Standard. [06:20] Addressing Context of the Organisation – Clause 4, Context of the organisation states: "The organisation shall determine external and internal issues that are relevant to its purpose and its strategic direction, and that affects its ability to achieve the intended results of its management system. The organisation shall monitor and review information about these external issues." There are also 3 additional notes: #1: Issues can include positive and negative factors or conditions #2: Understanding the external context can be facilitated by considering issues arriving from legal, technological, competitive, market, cultural, ect 3#: Understanding the internal context can be facilitated by considering Issues related to values, culture, knowledge and performance of the organisation. So, there's a lot to consider! [08:10] How SWOT and PESTLE address Context of the Organisation – Taking a look at SWOT, strengths and weaknesses would refer to factors internal to your organisation, while the opportunities and threats would be external. Depending on the focus of your management system, you may also want to complete this exercise through a certain lens. That could be information security, health & safety or environmental. The Standard requires you to align your management system with the strategic direction of the organisation, so even if you are viewing this exercise through a certain lens, don't do so in complete isolation. [09:55] How to conduct a SWOT and PESTLE – The people involved in completing this exercise are important, not just the questions you ask. Senior management should be included as they will have key insight to the strategic direction of the business. You should also include operational managers or other functional managers as they will have more context for how things actually work in practice. The point of a SWOT and PESTLE is to ascertain where you stand in terms of your risks and opportunities, and issues relating to resources, people, information, process, technology, equipment, laws, markets, environment, finance, economy ect from both an internal and external lens. This will give you a solid foundation to build your management system on, which will ultimately help you achieve your intended outcomes and lead to a cycle of continual improvement. [11:55] Considerations for Strengths – Strengths is an internal factor. Questions you could ask include: · What do we control through good processes? · What are we known for? · What does our marketplace and competitors say about us? · What are we good at? · What assets do we have? · What resources and knowledge do we have readily available? · What's the strength in our products and in the processes for delivering those products and the people that run those processes and deliver those products, their skills, their knowledge, their strengths, their weaknesses and their expertise? · What areas in our organisation are already at a high standard and don't necessarily need improvement? · Do we have objectives and targets that we measure against, i.e. KPIs, metrics, success factors and service level agreements, that demonstrate we're good? [13:10] Considerations for Weaknesses – Weakness is another internal factor, one that you have to be brutally honest conducting. Questions you could ask include: · What could you improve? · Where is money being spent poorly, or being lost? · What do your competitors do better than you? · What resources / knowledge / people / expertise do you lack? · What processes do you lack? · Where can your products or services be improved? · What are the constraints on your ability to meet changes in market need or demand? · What does your customer feedback look like? · Do your suppliers meet your requirements or the requirements of your clients? [14:45] Considerations for Opportunities – Opportunities are considered an external factor. Questions you could ask include: · What new opportunities are available in your market? · What data do you have available on market trends, and how can you leverage that? · How changes in compliance requirements in your specific industry or your locality might provide you with opportunity to gain an edge? · What are past identified opportunities that we've not acted on? · What is the competition not taking advantage of that you could? · How can you increase customer satisfaction based on both positive and negative feedback received? [16:00] Considerations for Threats – Threats are also considered an external factor, they are obstacles for you achieving your goals. Questions you could ask include: · What new environmental effects may affect you? Note: there is a new climate change amendment added to many commonly adopted ISO Standards, so this is something you will need to address. · What competitors are a threat to you? · Are other competitors taking advantage of markets that you have not accessed? · Why might competitors be getting ahead? · Are the habits of customers changing, and if so, how? · Are there other interested parties other than customers who present obstacles to you? · Are there any foreseeable resource issues? i.e. loss of experienced staff, lack of relevant talent in the pool of available people ect · Are you adapting to changes in the world? [16:00] PESTLE: Addressing political factors – When you're looking at political factors affecting your intended outcomes, consider the following: · What is happening politically in your environment? - That could be international or local on scale · What is the impact of policy or tax? · What is the impacts of employment trends / trade restrictions / tariffs? · What is the impact of unemployment rates on your organisation? · What is the impact of workforce shortages that may affect you? · Is there any form of Government intervention in your specific market? · Would this government intervention be considered an opportunity or threat? i.e. offering grants [19:20] Join the isologyhub and get access to limitless ISO resources – From as little as £99 a month, you can have unlimited access to hundreds of online training courses and achieve certification for completion of courses along the way, which will take you from learner to practitioner to leader in no time. Simply head on over to the isologyhub to sign-up or book a demo. [21:25] PESTLE: Addressing economic factors – When you're looking at economic factors affecting your intended outcomes, consider the following: · What is the impact of interest rates / exchange rates / inflation? · What is economic policy doing to you and your industry and your clients? · What are the impacts on wage rates / minimum wage changes /affordable living cost of living? [21:50] PESTLE: Addressing social factors – When you're looking at social factors affecting your intended outcomes, consider the following: · What's the impact of changes in the cultural landscape? · What's the impact of the expectation of people? · What's the impact on working people's lives and what their expectations are for working life in general? i.e. working hours and career aspirations · What is the and the emphasis on ethics, safety, Environmental Protection and data privacy for your clients / workforce / suppliers? [22:50] PESTLE: Addressing technology factors – When you're looking at technological factors affecting your intended outcomes, consider the following: · What is happening technology wise which impacts on what you do? · How does this affect the equipment you use? i.e. automation, the age of your equipment ect · What's the impact of emerging technology? · How you decide on the costs and benefits of investing in new technology? · How do you use your website / blogs / social media to interact with your marketplace? · Have you got intellectual property you need to protect? i.e copyright pins that need consideration. [23:40] PESTLE: Addressing legal factors – When you're looking at legal factors affecting your intended outcomes, consider the following: · How does the law affect how you do business? i.e company law, health & safety law, HR law, trade law? · What changes in legislation have occurred recently that you need to have considered? · How do you horizon scan for changes in legislation that affect you in your market? · What's the impact on employment on imports, exports, labour departments? · Have you considered other compliance obligations, such as certification to certain standards? [24:50] PESTLE: Addressing environmental factors – When you're looking at environmental factors affecting your intended outcomes, consider the following: · How do environmental aspects impact you, and how does the way you operate affect the environment? This includes consideration for air, water, land, natural resources, flora, fauna. · How do changes in the energy and utilities markets affect you? · How does your organisation fit in with any carbon reduction targets that your Government may have in place? · Are you required to create a carbon reduction plan? · Do you need to comply with certain environmental reporting requirements? i.e. here in the UK we have schemes like ESOS and SECR [24:50] PESTLE: Addressing ethical factors – This one is optional, but many are choosing to include it as part of their PESTLE now. When you're looking at ethical factors affecting your intended outcomes, consider the following: · How do you stay on the right side of the law with respect to the use of money? · Have you considered human rights / labour / children in the workforce / slavery / health & safety and well-being of local populations? · What charitable contributions do you make as an organisation? [27:15] Assigning significance – The next part of a SWOT and PESTLE requires you to assign significance to the various factors affecting your organisation. So, make sure you document every factor and how those factors affect your ability to achieve what you intend. Ensure that this all remains in alignment with the strategic direction of the business, as ultimately, you want your Management System to help drive those goals forward. [30:25] Frequency of a SWOT and PESTLE: This isn't just a one-off exercise. You should be continually monitoring these internal and external factors, and only updating the exercise during a management review meeting will do you a disservice. This is an ever-changing world, it's the one in which you operate, and you need to ensure you're keeping up with it. You could look at various factors in monthly or even weekly meeting with the appropriate parties, and see if circumstances have changed. [31:25] Examples of why you should continually update your SWOT and PESTLE: Ian recounts an experience he had with a client where they had failed to disclose where they had switched to a digital system for competence related documentation, but it had not met their needs and so they needed to return to manual documentation. This switch made finding the required documentation for internal audits difficult. None of this was recorded in their SWOT and PESTLE. If you'd like to book a demo for the isologyhub, simply contact us and we'd be happy to give you a tour. 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

Chris Truss, Global Sustainability Director at Reed & Mackay, leads the charge on sustainable business travel. He discusses the pressing need to reduce greenhouse gas emissions in this sector, highlighting the journey towards ISO 14064 carbon verification. Truss shares insights on the challenges and benefits of achieving this certification, the company's commitment to sustainability, and how transparency in carbon reporting can improve accountability. Listeners will also hear about innovative strategies in sustainable travel policies and the importance of engaging stakeholders in environmental efforts.

Philip Ideson, Founder & Managing Director of Art of Procurement, sheds light on the essential role of procurement in driving ESG compliance. He discusses current trends shaping the procurement landscape and the challenges faced in implementing ESG principles. Philip outlines his mission to 10X the impact of procurement and shares the six principles guiding this transformation. The conversation delves into how procurement can align more closely with sustainability goals, emphasizing the need for collaboration and innovation in the evolving business environment.

Sustainability is an area that affects all businesses, no matter the sector. We are all currently contributing to the climate crisis, from travel and hospitality to manufacturing to those working in an office or from home. You may be surprised to hear that the legal sector is currently one of the leaders in championing sustainability, not just in enforcing new environmental legislation, but also leading by example in the race to net zero. One such stand out leader is today's guest – Clyde & Co, a global law firm that have made great strides in their sustainability journey. In this episode, Mel is joined by Paddy Linighan, Chief Sustainability Officer at Clyde & Co, to discuss their ambitious net zero targets, sustainability initiatives and their journey towards ISO 14064 Carbon Verification. You'll learn What is Paddy Linighan's role as CSO? Who are Clyde & Co? What are their net zero targets according to their responsible Business report? What sustainability initiatives have Clyde & Co introduced? Why get ISO 14064 verified? What were the challenges with obtaining ISO 14064 verification? What are the benefits of obtaining ISO 14064 Verification? Resources Clyde & Co Clyde & Co Responsible Business report Carbonology In this episode, we talk about: [00:25] Episode Summary – We welcome today's guest, Paddy Linighan, Chief Sustainability Officer at Clyde & Co, to dive into their responsible business report, discuss their net zero ambitions and journey towards ISO 14064 Carbon Verification. [01:40] Introduction to Paddy: Paddy has 30 years experience in the legal sector, and was formerly the Chief Operating Officer for Clyde & Co before transitioning to the role of Chief Sustainability Officer. Paddy is also a Director at the Legal Sustainability Alliance, which is an association committed to supporting the legal sector to measure and manage their carbon emissions to achieve net zero. One lesser-known fact is that Paddy was a Latin and ballroom dancer! [02:30] Who are Clyde & Co? – They are a global law firm with 500 partners, 2700 lawyers and 3216 legal professionals across the world and operating out of 70 offices. They set out to help organisations successfully navigate risk and maximise the opportunity in the sectors that underpin global trade, namely insurance, aviation, marine construction, energy, trade and natural resources. They offer a comprehensive range of contentious and non-contentious legal services and commercially minded legal advice to businesses operating across the world in seamless fashion. Clyde & Co are committed to operating in a responsible way by progressing a diverse and inclusive workforce that reflects the communities and the clients it serves, and provides an environment in which hopefully everyone can realise their potential. They use their legal and professional skills to support communities through pro bono work, volunteering charitable partnerships, and minimisation of environmental impact through the pursuit of sustainability standards. [04:25] What are some of the Net Zero targets highlighted in Clyde & Co's responsible business report? Near term target: Reduce their scope 1 and scope 2 emissions by 80% by 2030 and scope 3 emissions by 50% by 2030. Long term target: Have a 90% reduction in emissions by 2038 Focused on decarbonizing their operations across the globe. [06:25] What are some of the sustainability initiatives that Clyde & Co have started? All their initiatives can be broadly groups into 3 categories, but ultimately they seek to decarbonize their operations, address resource consumption and offset emissions where possible. They found that 95% of their emissions reside in their scope 3, which is due to their supply chain. A few of their initiatives include rationalizing their supply chain to reduce the impact of purchasing goods and services. They are also supporting their supply chain to measure and reduce their own emissions. Clyde & Co have also incorporated their sustainability requirements into their Procurement Process and Due Diligence Process. One challenging area for a professional services business like Clydo & Co is sustainable business travel. They have adopted a global note on sustainable travel, which trickles down into regional travel policies. Working with travel management companies, they will implement those new policies, in addition to improving the quality of travel data collection and prioritisation of sustainability over cost. Clyde & Co are also making the move to switch direct and in-direct consumption of fossil fuels to renewable energy in the heating and cooling of their buildings. As of summer 2023, all UK offices were on 100% renewable energy! They aim to roll this out on a global scale, but understand that there are significant challenges with doing so. [09:30] How did Clyde & Co celebrate Earth Day? They introduced climate change awareness training on Earth Day. It wasn't mandatory in any way, and included the rolling out of several blogs and videos which were produced by AXA Climate School in Paris. They ran these through Earth Day (April 22nd) to World Environment Day (5th June). Covering topics such as: Financial disclosures Plastic pollution Saving water Beekeeping Composting This led to a campaign called 'Zero as One' which helped to create of a network of sustainable champions across their organisation, who help to further raise awareness and where there may be regional issues with reducing resource consumption and energy use. This campaign has continued and is beginning to facilitate a structured, bespoke training programme for all Clyde & Co staff which covers climate awareness to climate competency. It will encourage people to think 'How can I, as an individual, make a difference?' [15:30] The Clyde & Co Community Forest – A 6.2 hectare plot of land is shared with 2 other community groups, and is not only being used for reforestation but also biodiversity, focusing on red squirrels in particular. Getting this project set up included: Gauging the appetite of colleagues: They offered increased level of refforestation for every response they had to their annual 'Have your Say' survey. For every response received, they would add 2 square metres of forest. So, 5000 people would give them a hectare. It was a knowledge gathering exercise and experience of what a carbon offset project would look like. They know that they'll never be able to 100% decarbonise their operations, but they hope to get it down to 10% remaining emissions which can be offset with more projects like the community forest. [19:35] What does Paddy think of the sustainability reporting regulatory requirements affecting the legal sector? Not only do lawyers have a key part to play in supporting and advising clients in relation to how they navigate towards a low carbon economy, but they are also a part of many businesses supply chain – meaning they would be included in scope 3 emissions for others. Putting in the work at their end enables them to proactively help and assist clients with their emissions reduction and reporting. The drive in this sector is mostly due to client demand. [21:10] The increase in sustainability targets in North American companies: Paddy highlights that a recent report issued by Climate Impact Partners found that 79% of North American companies now have climate targets, which is up 6% on Asian companies and just shy of European companies. 61% of those North American companies report under ISO 14064. [23:00] What were the drivers behind Clyde & Co getting ISO 14064 verified?: High Transparency: They wanted to ensure that any disclosed information was reliable and that they'd had third-party verification to back that up, making them much more comfortable putting that information out into the public. Financial Benefits: Sustainability and greenhouse gas emission reduction was a part of their main KPI's to tackle, the main reason being to save money through not only the reduction in energy use but also reduced interest rates as a result of their sustainability efforts. [25:20] What were the main challenges in obtaining ISO 14064 verification?: Clyde & Co are a large organisation, so gathering and quantifying the necessary emissions information was like getting blood from a stone! Nearly 65 – 70 sites only have a small team of 5 people, and getting data from each can be time consuming. Also, the quality of data can vary a great degree with that many sites, especially on a global scale as you need to consider the conversion factors when collating all the data into something verifiable. [26:50] What impact has ISO 14064 verification had on Clyde & Co's sustainability credentials?: Very simply, it validates Clyde & Co's claims. With the third-party assessment, it shows that they are actually doing what they say they're doing, and not simply paying lip service. [27:45] What were the main benefits of getting ISO 14064 verified?: Helping to secure financial benefits: ISO 14064 verification is proof enough for banks to issue discounts on interest rates Ease of process: The audit process introduced for ISO 14064 can be repeated as needed. As a result of getting verified, Clyde & Co found the exercise a good stress test for existing auditing procedures, and found a way to simplify them further. Credibility: Third-party verification adds a level of credibility which is lacking from internal calculation alone. [29:00] Paddy's top tip for anyone considering ISO 14064 verification: Do not let perfection get in the way of progress. They found that people can become a bit defensive in audits, trying to avoid errors being picked up, however, audits are meant to be constructive. They are opportunities to pick up on areas for improvement. [30:40] Paddy's book recommendation: The Ministry for the Future by Kim Stanley Robinson [32:10] Paddy's favourite quote: The greatest threat to our planet, is the belief that someone else will save it – Robert Swan OBE If you would like to learn more about Clyde & Co, and their sustainability initiatives, visit their website. To find out more about verification visit www.carbonologyhub.com 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. Don't forget to subscribe to keep up-to-date with our latest episodes: Stitcher | Spotify | YouTube |iTunes | Soundcloud | Mailing List

Did you know that only a third of the emissions reductions required to achieve the country's 2030 target are currently covered by credible plans? As a result, we can expect to see more mandatory and voluntary regulations that require carbon emissions reporting to verify your ESG and net zero claims. In this episode, Mel closes out the ESG Reporting Disclosures series by explaining what Corporate Sustainability Due Diligence Directive (CSDDD) is, it's key emissions reporting requirements, the verification requirements and who qualifies for CSDDD. You'll learn · What is CSRD? · Key requirements of CSDDD · Key emissions reporting requirements · the emissions verification requirements for CSRD? · Who qualifies for CSDDD? · The likely impact of CSDDD Resources · Carbonology · Carbonology LinkedIn · Carbonology Instagram · CSDDD In this episode, we talk about: [00:30] Join the isologyhub – To get access to a suite of ISO related tools, training and templates. Simply head on over to isologyhub.com to either sign-up or book a demo. [02:10] Episode summary: Mel closes out the series on ESG reporting requirements by diving into CSDDD. [03:10] What is CSDDD? – The Corporate Sustainability Due Diligence Directive (CSDDD) is a new EU directive that promotes sustainable and responsible corporate behaviour in companies' operations and across their global value chains. Purpose: It aims to promote sustainable business practices, protect human rights, and address environmental challenges. The CSDDD was adopted by the European Commission on the 23rd of February 2022 and approved by the Council of the European Union on the 24th of May 2024. The new rules ensure that companies in scope identify and address adverse human rights and environmental impacts of their actions inside and outside Europe. The CSDDD is expected to start affecting companies from 2027 at the earliest once the directive has been transposed into national legislation. [05:10] What are the key requirements of CSDDD?: · Human rights due diligence: Companies must identify, prevent, and mitigate adverse human rights impacts within their value chains. · Environmental due diligence: They must assess and manage risks related to climate change, biodiversity loss, and pollution. · Disclosure obligations: Companies must disclose their due diligence processes, findings, and any remedial actions taken. [06:20] What are the Emissions Reporting Requirements? Under the CSDDDD, companies are required to report on their greenhouse gas (GHG) emissions within a climate transition plan. This includes considerations for Scope 1, 2 and 3. These were explained in more detail in a previous episode on CSRD, so go check that out if you want to learn more about the individual scope requirements. What if you fit the requirements of both CSRD and CSDDD, do you have to double report on emissions? In short – No! The climate transition plan required by the CSDDD will be reported within CSRD reporting, as organisations just need to adhere to the CSDDD's implementation requirements for the transition plan. [10:10] What are the Emissions Verification Requirements? More definitive guidance on verification requirements is expected closer to 2027. Companies will more than likely need to verify the emissions data reported through CSDDD, as the directive mandates a climate change transition plan that aligns with the Corporate Sustainability Reporting Directive (CSRD), which does require companies to verify their emissions data. [09:55] Who qualifies for CSDDD? The Corporate Sustainability Due Diligence Directive (CSDDD) applies to both EU and non-EU companies depending on their workforce size and revenue: EU and non-EU companies (or the ultimate parent company of a group): · With more than 1,000 employees and a global net turnover of at least €450 million in the last fiscal year; or · Which have franchising or licensing agreements in the EU in return for royalties with more than €22.5 million generated by royalties in the EU and have a net worldwide turnover of over €80 million in the last financial year. [11:10] What is the possible impact of this new directive? Similar to the other ESG disclosures I've covered over the past few weeks in this series on reporting disclosures, the impact of the CSDDD will result in 3 key impacts:- · Increased transparency: This directive will provide stakeholders with a clearer picture of companies' sustainability efforts, to combat greenwashing. · Enhanced accountability: Companies will be held accountable for their environmental and social performance. · Stimulation of sustainable business practices: The directive will encourage companies to adopt more sustainable practices, including regular reporting. If you would like to learn more about CSDDD or inquire about the related course, please get in touch with Carbonology. 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. 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The push for Net Zero by 2030 is causing a major rethink in how businesses report their carbon emissions. The Corporate Sustainability Reporting Directive (CSRD) takes center stage, outlining new obligations for emissions reporting and verification. Companies must understand their eligibility under these regulations to ensure compliance. This discussion shines a light on the impacts of CSRD on ESG reporting, revealing what stakeholders need to know as sustainability standards evolve.

Businesses are coming under increasing pressure to monitor, report and reduce their energy use and carbon emissions to meet net zero targets. As a result, we're seeing an increase in both mandatory and voluntary regulations that require carbon emissions reporting to verify your net zero claims. In this episode, Mel continues the ESG Reporting Disclosures series by explaining what The International Sustainability Standards Board Climate-related Disclosures (ISSB S2) are, the emissions reporting and verification requirements and who qualifies for ISSB S2. You'll learn · What is ISSB S2? · What is the scope of ISSB S2 · What are the emissions reporting requirements for ISSB S2? · Emissions verification requirements · Who qualifies for ISSB S2? Resources · Carbonology · ISSB S2 In this episode, we talk about: [00:30] Join the isologyhub – To get access to a suite of ISO related tools, training and templates. Simply head on over to isologyhub.com to either sign-up or book a demo. [02:10] Episode summary: Over the course of September, Mel will be exploring the latest climate change regulations that may affect your organisation. In this episode she dives into The International Sustainability Standards Board Climate-related Disclosures (ISSB S2). [03:20] What is ISSB S2? – The International Sustainability Standards Board Climate-related Disclosures (ISSB S2) is a new global standard that mandates entities to provide comprehensive information about climate-related risks and opportunities. The ISSB S2 was issued by the International Sustainability Standards Board on the 26th of June 2023 and is effective for annual reporting periods beginning on or after the 1st January 2024. The new standard ensures that companies disclose physical and transition risks and their potential impact on the move towards a low carbon economy. [04:20] Further learning with Carbonology: Carbonology have created a half-day course which walks you through all of the various carbon reporting disclosures and sustainability disclosure reporting requirements. If you would like to learn more, get in touch with Carbonology. [07:00] What does 'Acute and Chronic Physical risks' mean in the context of ISSB S2? Climate related physical risks are risks resulting from climate change that could be event driven, so an example of an acute physical risk could arise from weather related events like storms, floods and heatwaves, which are increasing in frequency. These could have a knock-on effect to businesses, taking a heat wave as the example, you will need to consider: · Can your IT systems and datacentres cope with it? · Have you got resilience built in to your operations to be able to deal with that sort of disruption to your organisation? Chronic physical risks arise from longer term shifts in climatic patterns, including changes in precipitation and temperature, which could lead to sea level rises and reduced water availability and changes in soil productivity. These risks could carry a weighty financial burden either through direct damage to assets, or indirectly through supply chain disruption. [09:35] Join the isologyhub and get access to limitless ISO resources – From as little as £99 a month, you can have unlimited access to hundreds of online training courses and achieve certification for completion of courses along the way, which will take you from learner to practitioner to leader in no time. Simply head on over to the isologyhub to sign-up or book a demo. [11:43] What does 'Transition risk' mean in the context of ISSB S2? This is looking for a climate related transition plan, which should include targets, actions and resources for the transition towards a lower carbon economy. This would include actions such as reducing greenhouse gas emissions. [12:30] What is the scope of ISSB S2? This Standard applies to: · climate-related risks to which the organisation is exposed, which are: · climate-related physical risks; and (ii) climate-related transition risks; and · climate-related opportunities available to the entity. Climate-related risks and opportunities that could not reasonably be expected to affect an organisation's prospects are outside the scope of this Standard. · The Standard covers:- · Governance · Strategy · Climate related risks and opportunities · Business Model and Value Chain · Financial position, financial performance and cash flows · Climate resilience · Risk Management [14:10] What are the emissions reporting requirements for ISSB S2? - Under ISSB S2, companies are required to measure and disclose their greenhouse gas (GHG) emissions across three scopes: · Scope 1 Emissions: Direct emissions from owned or controlled sources. For example, emissions from combustion in owned or controlled boilers, furnaces, vehicles, etc. · Scope 2 Emissions: Indirect emissions from the generation of purchased energy. This includes emissions from the production of electricity, steam, heating, and cooling consumed by the company. · Scope 3 greenhouse gas emissions: Indirect greenhouse gas emissions (not included in Scope 2 greenhouse gas emissions) that occur in the value chain of an entity, including both upstream and downstream emissions. Scope 3 greenhouse gas emissions include the Scope 3 categories in the Greenhouse Gas Protocol Corporate Value Chain (Scope 3) Accounting and Reporting Standard (2011). [16:20] Emissions verification requirements - Under ISSB S2, companies are required to have their reported greenhouse gas (GHG) emissions data verified. Verification can provide users of financial reports confidence that the information is complete, neutral and accurate. Disclosure of inputs to Scope 3 greenhouse gas emissions needs to disclose information about the measurement approach, inputs and assumptions it uses. [18:30] Who qualifies for ISSB S2? - ISSB S2 applies to all entities that are required by law, regulation, or administrative provision to prepare financial statements. This includes, but is not limited to: · Publicly listed companies · Large private companies · Financial institutions such as banks and insurance companies · State-owned enterprises Entities are encouraged to adopt the ISSB S2 voluntarily, even if they are not mandated by law or regulation. Early adoption is permitted and encouraged to enhance transparency and accountability in climate-related disclosures. If you would like some help with your carbon emissions reporting, please get in touch with Carbonology. 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

Businesses face growing pressure to monitor energy use and carbon emissions to meet net zero targets. The discussion highlights various regulations, including Streamlined Energy and Carbon Reporting (SECR) and its significance in ESG reporting. Key topics include who qualifies for SECR, its reporting requirements, and how it complements other carbon management strategies. With the urgent climate crisis, understanding these regulations is essential for companies aiming for transparency and sustainability.