ISO 14001:2015 is one of the popular EMS standards that can be used by any organization to improve the quality of their environmental performance. Business organizations can benefit from the guidelines outlined in ISO 14001 since energy management immensely enhances efficiency and reduces
Ways to Reduces Operational Costs and Improves Energy Efficiency by ISO 14001
Identifying and Managing Energy Use
This goes well with the ISO 14001 EMS where energy is required to be considered as one of the vital aspects of a firms environment. Companies and institutions are urged to measure and monitor its energy consumption, make measurable targets for the reduction thereof, as well as undertake measures to realize set goals. Such an analysis makes it easy for various companies to identify places in their operations where energy is being lost and solve the problem.
Continuous Improvement Cycle
It maintains the Plan-Do-Check-Act (PDCA) model that provides organisations with a method of improving their efficiency in the usage of energy. It also helps the company to create energy performance improvement that overtime improves and sustains energy performance. Such management not only helps to cut costs, in this case – to minimize energy consumption but also improves the function and effectiveness of the organization as well.
Reducing Operational Costs
Cost Savings Through Resource Efficiency
The cost benefits arising from the application of ISO 14001 environmental management system include: The economic advantage will be realised in the form of efficiency of resource utilisation. When implemented, organizations supporting this level usually note that they benefit from cutting costs of wastes, electricity and overall costs of operation. For instance, through reducing water consumption and thereby improving waste management, firms are likely to reduce their resource costs. The efficiency is not only limited to energy but it includes the use of all resources hence enhancing the overall decrease of the operational costs.
Compliance and Risk Management
ISO 14001 is used for environmental purposes in helping organizations to follow environmental standards and laws, resulting in avoidance of legal problems and fines. When companies’ follow those standards, they show compliance towards the environment and thus the chances of suffering from penalties due to noncompliance are minimized..
Market Differentiation
Benefits of getting an ISO 14001 certification include; It is possible for an organization to gain a competitive advantage when it implements the ISO 14001 of the environmental management system. This differentiation can help increase market share, thus sales enable the company to cover these operation costs.
Stakeholder Trust
In addition, the adoption of ISO 14001 increases confidence among stakeholders concerning the company’s commitment to sustainable management systems. This aspect may mean more profound and long-term relations with the customers, investors and suppliers who are interested in environmental sustainability. Opportunities that exist as a result of confidence found in stakeholders include the ability to secure new business opportunities and partnership which can be very beneficial towards shareholders wealth.