Economic and Social Research Coordination for Quality Infrastructure
Organismo Nacional de Acreditación de Colombia – ONAC
Abstract
This study analyzes the impact of ISO 14001 certification on the environmental sustainability of Colombian companies, using data from the Environmental Industrial Survey (EAI). ISO 14001 certified companies invest significantly more in environmental protection, waste management and wastewater treatment compared to non-certified companies. For example, in the Pacific region, 61% of investment in air protection comes from certified companies. These companies also show a greater commitment to biodiversity protection, especially in critical regions such as the Amazon-Orinoquia. Recommendations include promoting certification, strengthening training and developing favorable public policies to promote sustainable practices and mitigate climate change.
Background
ISO 14001, established by the International Organization for Standardization (ISO), provides a framework for environmental management that helps organizations improve their environmental performance. Since its introduction, it has been adopted globally as a standard for minimizing the environmental impact of industrial activities. In Colombia, the Environmental Industrial Survey (EAI) collects data on environmental investments and practices in the manufacturing industry, making it possible to assess the impact of ISO 14001 certification on environmental sustainability and climate change mitigation. This study focuses on analyzing these practices and their benefits for companies and the environment.
Objective
The objective of the study is to evaluate the impact of ISO 14001 certification on the environmental sustainability of Colombian companies, using data from the Environmental Industrial Survey (EAI). It seeks to compare the environmental performance of certified and non-certified companies, analyzing key variables such as investment in air and climate protection, waste management and wastewater treatment. The study aims to identify the benefits and challenges of implementing ISO 14001, and to offer recommendations for promoting sustainable practices that contribute to climate change mitigation and sustainable development in Colombia.
Scope
This paper covers the comparative analysis of the environmental performance of ISO 14001 certified and non-certified Colombian companies, using data from the Environmental Industrial Survey (EAI). Variables such as investment in environmental protection, waste management and wastewater treatment are examined, focusing on different regions and economic sectors. In addition, empirical evidence on the benefits and limitations of certification is reviewed. The conclusions and recommendations provided are aimed at improving corporate sustainability practices and supporting public policies that promote sustainable development and climate change mitigation in Colombia.
1. Introduction
Growing global concern about climate change and sustainability has prompted a number of organizations to adopt standards and practices that minimize their environmental impact. In this context, ISO 14001 stands out as an internationally recognized standard for Environmental Management Systems (EMS). This standard provides a structured framework for organizations to design, implement and continually improve their environmental performance, ensuring a proactive approach to reducing their ecological footprint, complying with legal requirements and achieving specific environmental objectives.
ISO 14001 covers a wide range of aspects, from resource efficiency and waste management to environmental performance monitoring and stakeholder involvement in sustainability commitments. Its relevance is manifested in several key benefits, such as improved environmental performance, legal compliance, risk reduction, operational efficiency, reputation and competitiveness, access to new markets, sustainability and social responsibility, employee motivation, and improved data-driven decision making.
Through empirical evidence gathered in various research studies, it has been observed that implementation of ISO 14001 can have significant effects on different economic and environmental variables. Studies have shown that institutional pressures and regulatory differences between countries influence the results of the standard. In some contexts, certified companies show significant reductions in resource use and emissions, suggesting that ISO 14001 can be an effective tool for promoting green growth and environmental sustainability.
In Colombia, the Environmental Industrial Survey (EAI) is used to collect and publish statistical information on investments, costs and expenditures related to environmental protection and resource management in the manufacturing industry.
The objective of this document is to evaluate the impact on the environmental performance of ISO 14001 certified companies compared to those that do not have ISO 14001 certification, on different key environmental variables measured in the EAI. First, a brief review of the scope and objectives of the ISO 14001 standard, as well as the empirical evidence of its implementation, is presented. Secondly, the characteristics of the EAI as a source of data for the study are explained. Thirdly, the results obtained are explained. Finally, conclusions and recommendations are made.
2. Framework
ISO 14001 standard
ISO 14001 is the internationally recognized standard for EMS. It provides a framework for organizations to design and implement an EMS and continually improve their environmental performance. ISO states that organizations adopting this standard can ensure that they are taking proactive steps to limit their environmental footprint, comply with relevant legal requirements and achieve their environmental objectives.
The framework defined by ISO 14001 covers various aspects, from resource use and waste management to environmental performance monitoring and stakeholder involvement in environmental commitments. ISO 14001 is relevant to different key players in society for the following reasons:
- It improves environmental performance: ISO 14001 provides a structured framework for managing environmental aspects, which helps organizations to reduce their environmental impact and improve their environmental performance on an ongoing basis.
- Legal compliance and risk reduction: Helps organizations identify and comply with applicable environmental laws and regulations, which reduces the risk of fines, penalties and legal problems. In addition, by managing environmental risks, organizations can prevent incidents and accidents.
- Operational efficiency and cost reduction: The implementation of environmental management practices can lead to greater resource efficiency, waste reduction and energy savings, which in turn can reduce operating costs and environmental impact.
- Reputation and competitiveness: Organizations that adopt ISO 14001 can enhace their reputation and credibility with customers, business partners, investors and community in general. This can result in competitive advantages, such as consumer preference and improved business opportunities.
- Access to new markets: Many companies and governments require their suppliers and business partners to comply with recognized environmental standards. ISO 14001 certification can open doors to new markets and business opportunities, especially those with environmentally conscious customers.
- Sustainability and social responsibility: The standard promote sustainable and corporate social responsibility practices. Organizations demonstrate their commitment to environmental protection and responsible management of natural resources.
- Employee involvement and motivation: An effective environmental management system can increase employee motivation by involving employees in the organization’s efforts to improve the environment and create a more sustainable workplace.
- Improvement in decision making: It provides tools for better decision making based on data related to environmental performance, allowing the organization to identify areas of improvement and develop more efficient strategies.
Empirical evidence on the effects of ISO 14001 implementation
There is mixed evidence in the literature on the effect of ISO 14001 standard on different economic and environmental variables. Arimura et. al (2016) review the effect of ISO 14001 in environmental performance, with industry-level data from the United States and Japan. They find that institutional pressures and differences in the regulations between countries influence the result of the standard. In Japan, where natural resources are more regulated and more expensive due to high taxes and the Kyoto Protocol, ISO 14001 certified-facilities tend to reduce the use of natural resources more than non-certified facilities. In contrast, in the United States, where resources are cheaper and indirectly unregulated, this reduction is not observed. Furthermore, in both countries certified-facilities do not show significant reductions in air pollution emissions, probably due to existing prescriptive regulations that limit the flexibility of voluntary strategies like ISO 14001.
Johnstone y Hallberg (2020) evaluate the factors and context that might lead to the adoption of ISO 14001 standard by SMEs, by conducting surveys and interviews with consultants and SMEs owners in Europe. The study concludes that sociopolitical factors such as legislations, regulations and legitimization guide the initial decision to adopt ISO 1400. However, substantive performance improvements are achieved such as improved internal processes and procedures, based on symbolic reasoning related to legitimacy. These operative improvements lead to better financial and environmental results, as well as external social performance assessment.
Ofori et. al., (2024) analyze the relationship between ISO 14001 and the environment from three different perspectives: BRICS, MINT (Mexico, Indonesia, Nigeria and Turkey) and G7 countries, in the period 1999-2020. It also addresses the role of structural change and innovation in this relationship. They use an economic model to estimate the effect, and the fixed effects approach to verify the robustness of the findings. Although the results vary across blocks, they find as general results that ISO 14001 only shows an abatement portfolio for the G7 block and the full sample; structural change has potential to reduce carbon emissions in all blocks, technology increases pollution in all blocks except the MINT economy, ICT, such as cell phones, help reduce carbon emissions in all blocks except their composite. Finally, renewable energy reduces carbon emissions in all blocks except the G7. For the authors, ISO 14001 shows potential to foster green growth, so policymakers should promote its certification as a management tool for sustainable development.
Sam and Song (2022) analyze the effects of ISO 14001 on carbon emissions in the Korean manufacturing sector, responsible for 40% of the country’s greenhouse gases. Econometric results, using an instrumental variables strategy, show that ISO 14001 certification reduces significantly carbon emissions in certified firms. These findings suggest that more certified companies in carbon-intensive industries might be an effective way to achieve the Korean government’s goal of reducing carbon emissions by 37% by 2030.
Camilieri (2022) conducts a systematic review to capture and analyze high impact articles on ISO 14001 standard. The results suggest that the use of this certifiable standard can improve operational efficiency through better resource utilization and waste management systems. In addition, it offers practitioners opportunities to reconsider their license to operate and improve their credentials with stakeholders. Potential drawbacks were also addressed, such as high certification costs, time constraints and increased paperwork and bureaucracy. In addition, it is recognized that managers and employees may show resistance to implement changes, either because of a preference for the status-quo or a lack of knowledge to integrate the standard’s environmental management system with existing practices.
Characterization of the companies in Colombia
According to the Ministry of Commerce, Industry and Tourism of Colombia, based on data retrieved from the Registro Único Empresarial y Social (RUES) and the Departamento Administrativo Nacional de Estadística (DANE), there were 1.740.168 active companies in the country as of 2023. Figure 1 shows the evolution of the number of active companies in the last 5 years.
Figure 1: Number of active companies in Colombia (2019-2023)
Source: Ministry of Commerce, Industry and Tourism. Calculations by Economic and Social Research Coordination for Quality Infrastructure – ONAC.
Analyzing the geographic distribution of active companies, it is noticed that most are concentrated in Bogotá (24%), followed by Antioquia, Valle del Cauca and Cundinamarca, with 13%, 9% y 7% respectively. Likewise, it is important to highlight that approximately 28% of the companies in the country are geographically distributed among other departments. Figure 2 shows the number of companies located in the departments where most of the country’s active companies are located.
Figure 2: Distribution of companies by department in the country
Source: Ministry of Commerce, Industry and Tourism. Calculations by Economic and Social Research Coordination for Quality Infrastructure – ONAC
Another relevant aspect to consider is the size of the country’s companies. When analyzing this aspect, it is possible to note that the vast majority of companies in Colombia are categorized as microenterprises, i.e., those that employ less than 10 workers and have total assets of less than 500 legal monthly minimum wages (SMMLV). These companies made up 95% of the total number of the country’s companies in 2023.
On the other hand, small enterprises accounted for 3,3% of the country’s companies in 2023. These companies are those with between 11 and 50 employees and total assets greater than 501 and less than 5.000 SMMLV.
Lastly, medium-sized companies, i.e., those with between 51 and 200 employees and total assets between 5.001 and 30.000 SMMLV, represent 0,8% of the country’s companies. Similarly, large companies, i.e., those with more than 2oo employees and total assets of more than 30.000 SMMLV, represent just the 0,3% of the companies in the country. Figure 3 shows the distribution of the number of companies according to the sizes described previously.
Figure 3: Distribution of the number of companies according to their sizes (2023)
Source: Ministry of Commerce, Industry and Tourism. Calculations by Economic and Social Research Coordination for Quality Infrastructure – ONAC.
The last aspect of the Colombian companies to be highlighted is the distribution of companies in the different economic sectors. Figure 4 shows this distribution, where the services and commerce sectors are those that group the largest number of companies with 41.5% and 40.1% respectively.
Figure 4: Distribution of active companies according to the economic sectors to which they belong (2023)
Source: Ministry of Commerce, Industry and Tourism. Calculations by Economic and Social Research Coordination for Quality Infrastructure – ONAC
3. Methodology
Characteristics of the Industrial Environmental Survey
The purpose of the Industrial Environmental Survey (EAI) is to collect and publish statistic information of investment, costs and expenses associated with environmental protection and resource management activities, solid waste generation and management, water resource management and environmental management instruments in the Colombian manufacturing industry.
The survey collects information of companies that meet at least one of the following characteristics:
- Employed personnel greater than or equal to 10 employees.
- Industrial production equal to or greater than $500 million COP per year.
In this sense, taking into account the definitions of company size discussed in the previous section, the EAI collects information of small, medium and large companies, while microenterprises are not included in this analysis. This implies that the conclusions reached throughout this document will be based on the behavior of small, medium and large companies, and no conclusions will be drawn about the behavior of microenterprises, which make up the vast majority of the companies in Colombia.
The EAI sample has been designed to be representative at a national level and to be able to group information at a level of geographic regions defined by DANE and Economic Activity Groups based on Standard Industrial Classification (ISIC), allowing to respond to the country’s information needs related to the evaluation of the environmental performance of the manufacturing industry. The presentation of results is grouped by the following regions: Caribbean, Eastern, Central, Pacific, Bogota and Amazon – Orinoco, and by industrial division groups, as a result of the sample design defined for the survey.
Table 1: Aggrupation of departments in the regions contemplated in the EAI
Caribbean region | Atlántico | Pacific region | Cauca |
Bolívar | Chocó | ||
Cesar | Nariño | ||
Córdoba | Valle del Cauca | ||
La Guajira | Bogotá | Bogotá D.C. | |
Magdalena | Amazon – Orinoco | Arauca | |
Sucre | Casanare | ||
San Andrés | Putumayo | ||
Eastern region | Boyacá | Amazonas | |
Santander | Guainía | ||
Norte de Santander | Guaviare | ||
Cundinamarca | Vaupés | ||
Meta | Vichada |
Source: DANE (Regional grouping defined based on the recommendation of the Census and Demographics Directorate for the development of the EAI 2016 sample design). Constructed by Economic and Social Research Coordination for Quality Infrastructure – ONAC.
Table 2: Aggrupation of ISIC Rev. 4.o A.C. in the groups of industrial divisions covered by the EAI.
Industrial Division groups | Divisions ISIC Rev. 4.0 A.C. | Industrial Division groups | Divisions ISIC Rev. 4.0 A.C. |
Food, beverages and tobacco | 10. Processing of food products | Manufacture of rubber and plastic products | 22. Manufacture of rubber and plastic products |
11. Beverage processing | Industries of other non-metallic mineral products | 23. Industries of other non-metallic mineral products | |
12. Tobaco products processing | Metallurgy and manufacture of metal products | 24. Manufacture of basic metallurgical products | |
Textiles, apparel, footwear and fur | 13. Manufacture of textile products | 25. Manufacture of fabricated metal products, except machinery and equipment | |
14. Garment manufacturing | Other industrial divisions | 26. Manufacture of computer, electronic and optical products | |
15. Tanning and re-tanning of leather, manufacture of footwear, manufacture of travel goods, luggage, handbags and similar articles and manufacture of saddlery and harness, dressing and dyeing of hides, tanning and dyeing of leather | 27. Manufacture of electrical apparatus and equipment | ||
Wood and cork industry, paper manufacturing and printing and publishing activities | 16. Processing of wood and manufacture of wood and cork products, except furniture manufacture of basketry and wickerwork and plaiting materials | 28. Manufacture of machinery and equipment N.C.P. | |
17. Manufacture of paper, paperboard and paper and paperboard products | 29. Manufacture of motor vehicles, trailers and semi-trailers | ||
18. Printing and copy production activities from original recordings | 30. Manufacture of other types of transportation equipment. | ||
Coking, manufacture of petroleum refining products and nuclear fuels | 19. Coking, petroleum refining products manufacturing and fuel blending activity | 31. Manufacture of furniture, mattresses and bed bases | |
Manufacture of chemicals and chemical products | 20. Manufacture of chemicals and chemical products | 32. Other manufacturing industries | |
21. Manufacture of pharmaceuticals, medicinal chemicals and botanical products for pharmaceutical use. | 33. Specialized installation, maintenance and repair of machinery and equipment |
Source: DANE (Methodology EAI). Constructed by Economic and Social Research Coordination for Quality Infrastructure – ONAC.
Characterization of the data of EAI
With the purpose of understanding the characteristics of this study, we will make a brief characterization of the surveyed companies using descriptive statistics. In the first place, we make a characterization of the number of surveyed companies and its representativeness by region and economic sector. Table 3 describes the number of companies in the sample and their representativeness in each of the regions. This process is carried out taking into account the expansion factor, which represents the number of units in the population that are represented by each unit in the sample.
Table 3: Number of companies in the sample and their representativeness by region (2021)
Region | Companies with certification granted | Companies without certification | ||
Sample size | Number of companies represented by the sample (including expansion factor) | Sample size | Number of companies represented by the sample (including expansion factor) | |
Caribbean | 59 | 66,3062657 | 195 | 372,011383 |
Eastern | 89 | 89,2179487 | 406 | 867,087161 |
Central | 95 | 101,555831 | 612 | 1746,48839 |
Pacific | 76 | 76,1428571 | 337 | 862,504073 |
Bogotá | 86 | 118,622227 | 568 | 2073,64093 |
Amazon – Orinoco | 5 | 5,27272727 | 19 | 20,4545455 |
Source: DANE (Methodology EAI). Constructed by Economic and Social Research Coordination for Quality Infrastructure – ONAC
Similarly, Table 4 shows the size sample and its representativeness in each of the economic sector.
Table 4: Number of companies in the sample and their representativeness by economic sector (2021)
Activity | Companies with certification granted | Companies without certification | ||
Sample size | Number of companies represented by the sample (including expansion factor) | Sample size | Number of companies represented by the sample (including expansion factor) | |
Food, beverages and tobacco | 82 | 93,3136076 | 460 | 1249,00428 |
Coking, manufacture of petroleum refining products and nuclear fuels | 15 | 15 | 55 | 55 |
Manufacture of rubber and plastic products | 37 | 39,4761905 | 201 | 575,844048 |
Manufacture of chemical products and substances | 67 | 67,439785 | 217 | 518,375806 |
Wood and cork industry, paper manufacturing, and publishing and printing activities. | 40 | 40 | 197 | 502,70222 |
Non-metallic mineral products industry | 40 | 40,0555556 | 157 | 330,08845 |
Metallurgy and manufacture of metal products | 38 | 38,4991228 | 190 | 523,808244 |
Textiles, apparel, footwear and fur | 10 | 10,0952381 | 334 | 1080,39983 |
Other industrial divisions | 79 | 111,238357 | 323 | 1103,96361 |
Source: DANE (Methodology EAI). Constructed by Economic and Social Research Coordination for Quality Infrastructure – ONAC.
Secondly, a segmentation is made of the total number of establishments surveyed in the EAI, according to their ISO 14001 certification status for the year 2021. The vast majority of the surveyed companies have not requested the certification, with a total of 2.137 companies. A total of 410 companies certified were surveyed, while 154 companies are in the process of implementation. Figure 5 shows this information.
Figure 5: Establishments surveyed according to ISO 14001 implementation.
Source: Environmental Industrial Survey (DANE). Calculations by Economic and Social Research Coordination for Quality Infrastructure – ONAC
Conducting a review by regions of the country, Figure 6 shows that the majority of respondents are located in the Central, Bogota, Eastern, Pacific and Caribbean regions, respectively. Non-certified establishments are the majority across all regions, followed by certified companies and finally, those in the process of ISO 14001 certification.
Figure 6: Total number of facilities surveyed by region, according to ISO 14001 implementation
Source: Environmental Industrial Survey (DANE). Calculations by Economic and Social Research Coordination for Quality Infrastructure – ONAC
On the other hand, it is worth analyzing the distribution of establishments by economic activity (see Figure 7), in order to understand the relevance of the economic sectors in the country and their interest to becoming certified to the standard. Of the total of respondents, the majority of companies are in the food, beverage and tobacco sector, where 460 establishments have not requested certification, 82 are certified and 38 are in the process of becoming certified. Other industrial divisions such as textiles, footwear and leather manufacturing, and the manufacture of chemical, rubber and plastic products, follow.
Figure 7: Total establishments surveyed according to ISO 14001 implementation and economic activity
Source: Environmental Industrial Survey (DANE). Calculations by Economic and Social Research Coordination for Quality Infrastructure – ONAC
Throughout the productive sectors, the trend of superiority of companies that did not apply for certification with respect to certified companies and in implementation is maintained. This could be due to the lack of incentives for companies, the dynamics and size of the Colombian economy, the costs of incurring certification may be high or they may not feel the need to become certified.
Technical aspects of the EAI
The observation, sampling and analysis unit of the survey are the industrial establishments located in the national territory that are engaged in manufacturing activities and that meet the parameters established in the target population.
The EAI is a statistical operation by stratified probability sampling. Probabilistic because each establishment of the sampling frame has a probability greater than zero of being selected and triple stratified because a partition of the universe is made by:
- Region of the country to which the establishment belongs.
- Main economic activity of the establishment according to the ISIC Rev. 4 A.C. code
- Size of the establishment, in terms of personnel employed and industrial production, dividing them into those with the highest and lowest value in these variables.
From the combination of the first two variables, 49 strata are formed, since in the Amazon region there are only 4 of the 9 economic activities. Within each of these 49 strata, in the cases where it is analyzed and determined to perform the division by implementing the Hidiroglou algorithm, two substrata are formed according to the employment and production variables.
The Hidiroglou algorithm, based on a pre-established Estimated Coefficient of Variation (CVe), in this case (3%), provides both the sample size to be selected and the limit that divides the Forced Inclusion (FI) and Probabilistic Inclusion (PI) strata. This algorithm is applied in each stratum, both for the industrial production variable and for the employed personnel variable, and the FI stratum is made up of the establishments that meet at least one of the two limits established by the algorithm. It should be noted that for some of the strata all the establishments are FI establishments.
EAI analysis
For the year 2021, the survey results are divided into 6 chapters containing the information of identification and general data of the respondents, investment and expenditure by environmental categories, other payments and disbursements, industrial solid waste generation, water resource management and environmental management instruments. For the purpose of this study 5 key variables in the environmental management of companies were selected:
- Total investment and expenses in air and climate protection
- Total investment and expenses in biodiversity and ecosystems protection
- Total investment and expenses in waste management
- Percentage of treated water
- Percentage of solid waste generated
Subsequently, the survey results for 2021 (latest available data) will be discussed focusing on the variables mentioned above and with the purpose of comparing the results of ISO 14001 certified and non-certified companies in terms of their environmental care actions.
4. Results of the analysis
The variables chosen to carry out the study will be analyzed in terms of segmentation by region and by economic activity, taking into account the differences between the results of ISO 14001 certified and non-certified companies for the year 2021. All the companies surveyed (26,087) answered all the questions that will be analyzed below.
Total investment and expenditures in air and climate protection
Figure 8 shows the total investment and expenditures for air and climate protection as a percentage for each region for the year 2021, separated by ISO 14001 certified and non-certified companies. In general, most of the investments are made by companies without a request to become certified. The Pacific and Caribbean regions stand out as those where most of the investment is made by companies certified to the standard. In the Pacific region, 61% of the investment in air protection is made by ISO 14001 certified companies, while in the Caribbean region, 53% of the investment is made by certified companies.
Figure 8 Total air and climate protection investment and expenditures by region
Total investment and expenses for air and climate protection by region
Source: Environmental Industrial Survey (DANE). Calculations by Economic and Social Research Coordination for Quality Infrastructure – ONAC
Similarly, Figure 9 shows the percentages of investment and expenditures of ISO 14001 certified and non-certified companies in each of the economic sectors. In general, the graph shows that certified companies have considerably higher investment percentages in air and climate protection than companies that did not request certification. This behavior is observed in all economic sectors, which demonstrates the positive effect that the implementation of the standard has on the environmental care practices adopted by companies.
Finally, it is important to note that the sectors in which certified companies account for a higher percentage of total investment are the wood anc corck industry, paper manufacturing and publishing printing activities, and the manufacture of rubber and plastic products. This situation may be due to the fact that paper and rubber production activities are intensive in raw materials from forests. According to Sphere España (2022) approximately 40% of the wood felled for industrial applications belongs to paper manufacturing, likewise, tire production still has large environmental consequences, such as continuous deforestation (National Geographic, 2019). Tus, activities belonging to these sectors have detrimental effects on air quality and climate destabilization.
Figure 9: Air and climate protection investment and expenditure percentages by economic sector
Source: Environmental Industrial Survey (DANE). Calculations by Economic and Social Research Coordination for Quality Infrastructure – ONAC
Total investment and expenditure on biodiversity and ecosystem protection
To understand graphically the differences between the group of ISO 14001 certified establishments and the group of non-certified establishments across the regions, we estimate the difference in the percentages in both groups by region of some selected variables. This indicator allows us to understand in a simple way if there was a higher investment by the certified ones. If the indicator for each region is greater than zero, it means that the difference is in favor of the certified group in the standard. If the indicator is negative, then the difference is in favor of the non-certified group.
Figure 10 presents the result of the exercise discussed above for investment in biodiversity and ecosystem protection in 2021. The performance of the Amazon – Orinoco region is striking, where 100% of the investment in biodiversity and ecosystem protection corresponds to ISO 14001 certified companies. This is a positive result that shows the interest in caring for the Amazon rainforest.
Figure 10: Percentage difference in biodiversity protection investment by region
Source: Environmental Industrial Survey (DANE). Calculations by Economic and Social Research Coordination for Quality Infrastructure – ONAC.
The average differences for Bogota and the Pacific region are also positive, with an increase in average investment of 43 p.p. for Bogota and 14.7 p.p. for Pacific with respect to non-certified companies in these regions. On the other hand, the Eastern region has a negative difference of 33.2 percentage points, indicating a higher average investment by non-certified establishments. The differences in the Caribbean and Central regions are minimal and may not be significant.
Figure 11 shows the percentages of investment in biodiversity and ecosystem protection for ISO 14001 certified and non-certified companies in each of the economic sectors.
From the graph it is possible to observe that, in most of the sectors, the companies that have been granted certification have a higher percentage of investment than those that are not certified, except in the textile, footwear and leather manufacturing sector. It is important to highlight that in the metallurgy and manufacture of metal products and in the wood, cork, paper manufacturing, and publishing and printing sectors, ISO 14001 certified companies invested 100% of their total investment in biodiversity and ecosystem protection.
Figure 11: Percentage of total investment and expenditure on biodiversity and ecosystem protection by economic sector.
Source: Environmental Industrial Survey (DANE). Calculations by Economic and Social Research Coordination for Quality Infrastructure – ONAC
Total investment and expenses in waste management
Figure 12 shows the estimated difference in the percentages of both certified and non-certified companies. As we discussed in previous sections, when the difference is greater than zero, it means that the difference is in favor of the certified group in the standard. If the indicator is negative, then the difference is in favor of the non-certified group.
In this case, the Caribbean region is the one with the greatest positive difference, indicating a higher average investment in waste management of 35.5 p.p. by certified establishments. Bogota has a similar behavior, with an average investment of 23.3 p.p. higher, made by ISO 14001 certified establishments. Certified companies in the Central and Pacific regions also make a positive investment, with values of 13 p.p. and 7.6 p.p. respectively, slightly lower than in the Caribbean and Bogota regions. In the Eastern and Amazon-Orinoco regions, there is a higher investment in waste management by non-certified companies.
Figure 12: Percentage difference in waste management investments by region
Source: Environmental Industrial Survey (DANE). Calculations by Economic and Social Research Coordination for Quality Infrastructure – ONAC
On the other hand, Figure 13 shows the percentage of investment in waste management by companies certified to the standard and those without certification in each of the economic sectors. Thus, it is possible to observe how four economic sectors have a higher percentage of investment for companies with granted certification, while the remaining four sectors show a behavior in which companies without certification present a higher percentage of investment than those certified.
Particularly the food, beverage and tobacco sector has the highest percentage of investment of certified companies. This sector has special characteristics, for example, waste management plays a very relevant role considering that it is directly related to food safety and hygiene, which demands packaging and generates waste. In this sense, the implementation of ISO 14001 alerts companies to the environmental implications of food waste and poor waste management in this industry, some examples are the excessive use of natural resources, greenhouse gas emissions, food insecurity, ethical considerations, among others.
Figure 13: Percentage of investment in waste management by economic sector
Source: Environmental Industrial Survey (DANE). Calculations by Economic and Social Research Coordination for Quality Infrastructure – ONAC
Percentage of waste water treated
Figure 14 shows the difference in percentage of wastewater treated between ISO 14001 certified and non-certified companies by region for the year 2021. The Pacific region shows that ISO 14001 certified companies treated 57.6 p.p. more wastewater than non-certified companies, being the region with the largest positive difference. It is followed by the Central and Bogota regions with 11.4 p.p. and 10.8 p.p. respectively in favor of certified companies. Certified facilities in the Eastern region treat on average 5.7 p.p. less wastewater than non-certified ones. Finally, in Amazon – Orinoco, certified companies treat 26.8 p.p. less wastewater than non-certified ISO 14001 companies.
Figure 14: Difference in percentage of treated wastewater by region
Estado ISO 14001
Source: Environmental Industrial Survey (DANE). Calculations by Economic and Social Research Coordination for Quality Infrastructure – ONAC
Similarly, Figure 15 shows the percentages of wastewater treated in certified and non-certified companies for all economic sectors. It is possible to observe that non-certified companies have higher investment percentages in five of the eight sectors analyzed. Likewise, in these sectors, the differences in investment percentages of non-certified and certified companies are quite wide. For example, in the textile, clothing, footwear and leather sector, the difference is 79 percentage points (p.p.), i.e., in this sector, non-certified companies invested 79 p.p. more than ISO 14001 certified companies. In the opposite case, in the manufacture of chemical products and substances, certified companies have a higher investment percentage than non-certified companies; in this case, certified companies invest 71 p.p. more than non-certified companies.
Figure 15: Percentages of wastewater treated in companies with ISO 14001 certification granted and not requested in each economic sector.
Source: Environmental Industrial Survey (DANE). Calculations by Economic and Social Research Coordination for Quality Infrastructure – ONAC
Solid waste generated
Figure 16 shows the total solid waste generated by region as a percentage, separated by ISO 14001 certified and non-certified companies. In most regions, non-certified establishments generate more solid waste than those certified to the standard. However, the Pacific region stands out, where 86% of solid waste is generated by certified companies. This may be due to the magnitude of their production or the economic structure of the region. However, by being certified to the standard, it is most likely that this amount of waste will be managed appropriately, through reuse or recycling.
Figure 16: Percentage of solid waste generated per region.
Percentage of solid waste generated by establishments by region Year 2021
Source: Environmental Industrial Survey (DANE). Calculations by Economic and Social Research Coordination for Quality Infrastructure – ONAC
Finally, Figure 17 shows the percentage of solid waste generated by ISO 14001 certified companies and that generated by non-certified companies in each sector.
In the wood, cork, paper manufacturing, and publishing and printing industries, certified companies have a 60 p.p. higher percentage of investment than non-certified companies. Likewise, in the food, beverages and tobacco industry and in the metallurgy and manufacture of metal products industry, certified companies have a considerably higher percentage of investment than non-certified companies.
This situation may be due to the fact that the industries listed above generate large volumes of solid waste, which means that it is very important for them to have tools that enable them to carry out adequate waste treatment. In this regard, ISO 14001 provides companies that adopt it with a series of tools that enable them to implement appropriate protocols for waste management and disposal.
Figure 17: Percentage of wastewater treated in companies with ISO 14001 certification granted and not requested in each economic sector.
Source: Environmental Industrial Survey (DANE). Calculations by Economic and Social Research Coordination for Quality Infrastructure – ONAC
5. Conclusions
Analysis of data provided by the Environmental Industrial Survey (EAI) for 2021 reveals significant differences in environmental performance between ISO 14001 certified and non-ISO 14001 certified companies. Throughout the study, several key points were observed that have profound implications for sustainability and climate change:
- Investment and Expenditures on Environmental Protection: ISO 14001 certified companies make greater investments and expenditures on air and climate protection. For example, in the Pacific region, 61% of investment in air protection comes from certified companies, while in the Caribbean region, this percentage is 53%. This shows that certified companies are more committed to reducing their carbon footprint and mitigating climate change.
- Biodiversity and Ecosystem Protection: ISO 14001 certified companies also show a greater commitment to biodiversity protection. In the Amazon-Orinoco region, 100% of investment in biodiversity protection comes from certified companies. This is crucial for the conservation of vital ecosystems and the mitigation of the adverse effects of climate change in these sensitive areas.
- Waste Management: ISO 14001 certified companies invest more in waste management, indicating a more rigorous and efficient approach to minimizing and properly treating the solid waste generated. In the Caribbean region, certified companies have an average investment in waste management that is 35.5 percentage points higher than non-certified companies. This approach contributes to reducing pollution and promoting circular economy.
- Wastewater Treatment: ISO 14001 certified companies treat a higher percentage of wastewater compared to non-certified companies. The Pacific region stands out with a positive difference of 57.6 percentage points in favor of certified companies. Adequate wastewater treatment is essential to prevent water pollution and protect aquatic resources.
- Regional Impact: The Pacific and Caribbean regions stand out in terms of environmental investment by certified companies. These investments not only improve local environmental performance, but also set a precedent for other regions and industrial sectors. The adoption of ISO 14001 in these regions can serve as a model for the implementation of sustainable practices in other areas of the country.
- Economic Sector: The food, beverage and tobacco sectors, and the wood and paper industry, show a higher percentage of investment in environmental management by ISO 14001 certified companies. For example, in the wood and paper industry, certified companies invest 60% more in solid waste management than non-certified companies. These sectors are particularly relevant due to their high environmental impact and their potential to implement sustainable practices to mitigate the effects of climate change.
Sustainability and climate change implications
The implementation of ISO 14001 has important implications for sustainability and the fight against climate change in Colombia. Certified companies not only comply with environmental regulations, but also adopt practices that contribute significantly to the reduction of greenhouse gas emissions and the conservation of natural resources. These practices include better waste management, more effective wastewater treatment, and greater investment in biodiversity protection.
The study also highlights the importance of environmental investments in climate change mitigation. Companies certified to ISO 14001 show a clear and measurable commitment to sustainability, which not only improves their environmental performance, but also contributes to the creation of a more sustainable and resilient environment at regional and national levels. Widespread adoption of ISO 14001 could accelerate the transition to a low-carbon economy and promote sustainable development in Colombia.
Recommendations
According to the findings, the following recommendations are proposed to encourage the adoption of environmental management practices and improve the environmental performance of companies:
- Promotion of ISO 14001 certification: Authorities and regulatory bodies should encourage more companies to obtain ISO 14001 certification, highlighting the benefits in terms of sustainability, legal compliance, and competitive advantages. Subsidy or tax incentive programs can be effective.
- Strengthening training: Implement training and awareness programs to help companies and their employees understand the benefits and importance of environmental management under ISO 14001. This could include workshops, seminars and online courses.
- Public policy development: Public policies should promote sustainable environmental practices, facilitating access to clean technologies and encouraging investment in green infrastructure. It is essential to create a regulatory framework that supports companies in their transition to sustainability.
- Promoting innovation and technology: Support research and development of new technologies and methods for environmental management that are efficient and cost-effective. This may include the promotion of collaborative projects between the private sector, government and universities.
- Improve monitoring and evaluation: Implement monitoring and evaluation systems to measure and compare the environmental performance of certified and non-certified companies on an ongoing basis. This will help identify areas for improvement and ensure compliance with environmental standards.
- Engage stakeholders: Encourage the active participation of all stakeholders, including customers, suppliers, local communities and employees, in environmental management efforts. Transparency and effective communication are key to strengthening commitment and collaboration in environmental sustainability.
In conclusion, ISO 14001 certification has proven to be a valuable tool for improving the environmental performance of companies in Colombia. The recommendations proposed here seek to broaden its adoption, contributing to more sustainable and responsible industrial development, which in turn will help mitigate the effects of climate change and promote a greener and more resilient future.
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