Quest for the ISO 14000 tag

The Ministry of Environment and Forests is planning to introduce a purchase preference policy for environment-friendly companies which comply with the standards set by the Environment Management Systems. Purchase preference is proposed to be provided for all public purchases.

According to a proposal being discussed by the environment and forest ministry, initially, preference will be available for companies that voluntary seek ISO 14000 certification.

The norm is, however, proposed to be made mandatory over a period of time, a senior ministry official told Business Standard .

According to estimates, over 200 Indian companies have received ISO 14000 certification.

The proposal has also been included in the draft National Environment Policy, which is to be discussed with state environment ministers later this week.

The draft paper takes note of the transaction costs involved in certification.

The government proposes to exempt small and medium enterprises from the mandate on ISO 14000.

The insistence on Environment Management Systems, like the ISO rating, would also reduce inspections by government agencies since the companies would have to continuously upgrade their standards, an official said.

The proposal has also found favour with the industry since it perceives immediate operational benefits to accrue to it.

"It will result in improved efficiency in resource utilisation, greening of the supply chain, and improved corporate commitment," an executive in an industry association said.

Many companies were considering greening of the supply chain through vendor development programmes and defining environmental specification for procurement and sourcing.

Vendor development and procurement of services and raw materials, both domestically and internationally, has been initiated in a few firms already.

At the same time, there were concern that the prescription of the standards may turn into a non-trade barrier.

The ISO 14000 certification requires the adoption of standardised environmental management practices, documenting their actual use, and third party verification of the fact.

It significantly eases the public burden of monitoring and enforcement of prescribed emission standards.

Bio-sphere

Initially, preference will be available for companies that voluntary seek ISO 14000 certification

It will be made mandatory over a period of time

Over 200 Indian companies have received ISO 14000 certification