The ISO Show

Blackmores UK
The ISO Show

Blackmores is a pioneering consultancy firm with a distinctive approach to working with our clients to achieve and sustain high standards in Quality, Risk and Environmental Management. We'll be posting podcasts discussing ISO standards here very soon!

  1. #199 The First Step Towards Safe and Ethical AI – ISO 42001 Gap Analysis

    20 NOV

    #199 The First Step Towards Safe and Ethical AI – ISO 42001 Gap Analysis

    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 y

    21 min
  2. #198 How communication can make or break your Management System

    12 NOV

    #198 How communication can make or break your Management System

    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 contin

    28 min
  3. #197 What is a SWOT and PESTLE?

    6 NOV

    #197 What is a SWOT and PESTLE?

    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 / inflatio

    37 min
  4. #196 Reed & Mackay’s Carbon Verification Journey

    30 OCT

    #196 Reed & Mackay’s Carbon Verification Journey

    Business travel remains one of our largest sources of greenhouse emissions, accounting for 26% of the UK’s total emissions. In an ideal world, no one would have to travel to work or events, some might even point to the way everyone adapted in COVID as a prime example of this in practice. However, for many that model of work is not feasible in the long-term. So, how can we reduce this unavoidable stream of emissions? Businesses are starting to take the right steps, however, today’s guest is paving the way as a shining example of sustainable business travel and events management.   In this episode, Mel is joined by Christopher Truss, Global Sustainability Director at Reed & Mackay, to discuss their impressive existing ISO Standard portfolio and their journey towards ISO 14064 carbon verification. You’ll learn ·      Who is Chris Truss? ·      Who are Reed & Mackay? ·      What are the highlights from Reed & Mackay’s latest Sustainability and Responsible Business report? ·      What Standards are Reed & Mackay certified to? ·      What is the demand for sustainability within the business travel and events management sector? ·      Why get ISO 14064 verified? ·      What were the challenges with obtaining ISO 14064 verification? ·      What are the benefits of obtaining ISO 14064 Verification?   Resources ·      Reed & Mackay ·      Reed & Mackay Sustainable and Responsible Business Report 2024 ·      Carbonology   In this episode, we talk about: [02:05] Episode Summary – We welcome today’s guest, Chris Truss, Global Sustainability Director at Reed & Mackay, to explore their ISO Standards portfolio and journey towards ISO 14064 verification. [02:40] Who is Chris?: Chris has had over 20 years experience in the business travel industry. He is currently responsible for driving the sustainability agenda at Reed & Mackay, which includes the development of services and solutions that their clients require to meet their own sustainability initiatives. He also manages a wide range of third-party suppliers. A lesser know fact about Chris is in a band, playing the folk fiddle and singing in pubs around Yorkshire. He also plays tennis in the over 45 category for Yorkshire! [04:50] Who are Reed & Mackay? – Reed & Mackay are a global travel management and event management business. They help clients all the way from picking up the telephone and making bookings on their behalf, helping them source appropriate venues for their events and then managing the overall spend, the supply chain and ultimately reporting back to them on what they've been up to and how they can improve their processes and save money. Reed & Mackay are highly regarded for their quality of services, especially within the professional services sector, and they proudly boast a number of large blue chip clients. [05:50] What are some of the highlights in Reed & Mackay’s Sustainability and Responsible Business Report? When Chris came into his latest role, he looked to tackle two main points: ·      How can Reed & Mackay operate sustainably? ·      How can we articulate that to our clients? As a result of the work Chris has done, Reed & Mackay have signed up to the United Nations Global Compact and have aligned themselves with the UN’s Sustainable Development Goals. They have also become an EcoVadis rated supplier and are undertaking their first Carbon Reduction Plan disclosure. From a corporate responsibility point of view, they have made great strides to improve their gender pay gap. They are also ensuring the integrity of their charitable partnerships. [08:00] What are some of the sustainability initiatives that Reed & Mackay have started? Reed & Mackay support a charity called 4Ocean, who are trying to remove as much plastic from our oceans as possible. They selected this charity in particular due to it’s global reach, embodying the nature of Reed & Mackay’s global influence in 13 countries for the past 10 years. They recognised the need to support a sustainability based charity as corporate travel is highly polluting, so this is a form of taking responsibility and looking at where they can assist to reduce environmental damage. 4Oceans also allows their employees to get involved directly, should they choose to take some time out of the office to help with ocean clean-up. [09:55] What ISO Standards are Reed & Mackay certified to? They are currently certified to: ·      ISO 27001 Information Security ·      ISO 14001 Environmental Management ·      ISO 22301 Business Continuity ·      ISO 9001 Quality Management All of which they have been certified to for over 10 years now! They acted as a foundation for Chris to drive his sustainability agenda. [11:10] How are these ISO Standards managed across the business? – Reed & Mackay have a dedicated Security and Trust team that manage all ISO certifications, in addition to their other responsibilities. All of the ISO Standards are a part of their Integrated Management System, which sits alongside their policies and procedures for the business that are managed by a central team. This has provided them with an invaluable foundation to ensure the delivery of quality services, client satisfaction and continual improvement. [12:45] What is the demand for sustainability within the business travel sector? They are receiving more requirements and requests from clients in regard to their own operational CO2 footprint, which is needed for clients own reporting requirements as Reed & Mackay would count towards many clients Scope 3 emissions. There is also a need for more transparency with carbon reporting, including the use of credible calculation methodology’s. The verification of GHG emissions also gives clients more confidence that businesses are doing what they say they’re doing. [14:15] What was the main driver behind Reed & Mackay gaining ISO 14064 verification?: While they felt confident in their sustainability efforts up to a certain point, they wanted someone to come in and mark their homework to make sure they were doing the right thing. With the increase in client demand for credible sustainability reporting, it was vital to pursue various CPD disclosures such as EcoVadis and prepare for upcoming legislation like CSRD. To ensure they were in the best possible shape to give the information requested by clients and other stakeholders, they needed am accurate and reliable method of verification, which is what ISO 14064 could provide. [15:40] What were the main challenges in obtaining ISO 14064 verification?: Just getting a hold of the raw data was the most difficult part, although they found it to be a very enlightening experience too. Having to dig to find the right information helped Chris to understand the business better, giving him a greater visibility on where their carbon emissions are coming from and where there are opportunities to reduce those. You have to be very tenacious to get all the necessary data. Chris highlights purchased goods and services data as particularly challenging to obtain due to its granular nature. Now they have been through this process once, they’ve got a system in place to make data collection a lot easier in future. [18:55] What impact has ISO 14064 verification had on Reed & Mackay?: It’s helped from an internal perspective as people now have a greater visibility and understanding of the impact that have on an individual basis. This in turn creates a strong launchpad for their Net Zero strategy. From an external perspective, it’s given Reed & Mackay a lot more confidence in their own processes and their ability to work with their clients towards sustainability goals. [20:00] What were the main benefits of getting ISO 14064 verified?: Giving clients, stakeholder and employees confidence: The verification calculation is reliable, and so they can be confident in relaying the facts and figures to interested parties. A great insight: The data has provided huge insights into how the business operates and where it’s biggest emissions sources lie. This is vital to know before you take steps to try and reduce your current impact. Ability to create an accurate Carbon Reduction Plan: Once again, with confidence in having the correct data to hand, they are able to formulate an accurate Carbon Reduction Plan which can be realistically achieved. Anti Green-washing: Consumers are crying out for a reliable sign of credibility. Simply having an environmental policy statement may have been enough 10 years ago, but that’s not the case now. People expect evidence of your sustainability claims. [21:50] Chris’s top tip for anyone considering ISO 14064 verification: Just get started and don’t be scared by the process. Though it may seem daunting to start, you will actually be in a much better position than when you started. Having verified data and awareness of where that data comes from and what it means on a larger scale will be vital to looking for opportunities for improvement. So, if you want to improve your sustainability, you just need to get cracking! [23:20] How are Reed & Mackay helping organisations improve the sustainability of their travel?: Reed & Mackay’s ambition is to make sure that clients understand the impact of their choices at every single step of their journey. To help, they provide the carbon footprint of every booking they make, whether that be through their site or with a consultant. They also have approval processes built into their systems, which can be based on carbon. For example, if a client doesn’t want to take the lowest carbon option on a particular journey, they can add required approval from an additional person within that client’s organisation. So it adds a level of accountability ove

    31 min
  5. #195 The Role of ESG in Procurement

    22 OCT

    #195 The Role of ESG in Procurement

    Purchasing goods and services is a necessity for any business, whether that’s simply stocking up on office supplies, or looking for someone to manage your IT environment. Procurement has a key role to play in keeping things running smoothly, along with facilitating the core values of businesses as priorities change, such as a commitment to ESG compliance.   In this episode, Ian is joined by Philip Ideson, Founder & Managing Director of Art of Procurement, to discuss procurement’s role in ESG compliance, the challenges procurement faces with ESG, and learn about their mission to 10X the impact of procurement. You’ll learn ·      Who is Philip Ideson and the Art of Procurement? ·      What are the current trends in procurement? ·      What is procurement’s role in relation to ESG? ·      How do ESG deliverables fit in with the other results procurement is expected to deliver? ·      What are the greatest challenges procurement currently faces with ESG? ·      What is Art of Procurement’s mission to 10X the impact of procurement? ·      What are the 6 principles of this mission?     Resources ·      Art of Procurement ·      Art of Procurement Podcast ·      The Art of Procurement philosophy ·      ESG Compliance     In this episode, we talk about: [00:25] Episode Summary – We welcome today’s guest, Philip Ideson, Founder and Managing Director of the Art of Procurement, to discuss the role procurement has in ESG compliance. Additionally we will dive into Philip’s mission to increase the impact of procurement. [03:00] Who is Philip?: Philip has been in the procurement space for almost 25 years now! He started at Ford Motor company, in direct Procurement where he was purchasing parts for car manufacture. He later moved into indirect Procurement, which is essentially everything you need to operate on a day-to-day basis i.e. office supplies, childcare facilities ect. Philip has worked in the UK, Europe, India and has been based in the US for the past 19 years. To get a perspective on the other side, he joined a Service Provider who provided outsourced procurement, that company later got bought out by Accenture, which was when Philip decided to go out on his own and started ‘Art of Procurement. His podcast has been running for 9 years, and has the aim to share inspiring stories of companies who think differently about procurement. [06:05] Hard Truth: Inside the Football Industry Podcast – Philip also co-hosts another podcast in his spare time, which was awarded the EFL podcast of the year in 2023! Hard Truth delves into the behind the scenes aspects of football, co-hosted by the owner and Chairman of Peterborough United, it also gives an owner perspective of the football season. [07:05] What are some of the top trends and priorities in procurement currently? Digitisation: Procurement was an area where technological change happened relatively slowly, at least up until around 5 years ago there weren’t many tech solutions built specifically for procurement. However, a lot of money has been poured into the space, so now there’s the challenge of ‘How can we digitise?’ The problem with a lot of technology solutions is that they often become obsolete quickly, and with the rise of AI it’s trickly to keep up, let alone get ahead.   [08:10] What is something about procurement that might surprise people who don’t work in the field? Procurement gets a bad rep for trying to save every last penny at the cost of bullying suppliers. However, they are a lot more passionate around the role that suppliers can play in the growth of a business. It’s all about marrying together the capabilities of supply chains with the needs of a business, rather than trying to squeeze every last penny’s worth out of suppliers. [09:15] Procurement put into a box: In a lot of businesses, procurement kind of professionalised the profession based on an ROI which was tied to cost savings, because procurement sold that value proposition to get the investment, it means that that's the only thing businesses think they can do. Procurement gets put in this box within a business of when I need to save money, you know break the glass, bring out procurement and they can do that. Where you actually get a much better result by working more collaboratively with your procurement team. There’s a lot more tied to business objectives than with procurement objectives, instead of focusing on what procurement can do to save you money, look at what other objectives they can help you achieve. [10:35] What is procurement’s role with regard to ESG? – Philip was involved in a  research study that was done by The Economist, where they surveyed approximately 2300 C-Suite executives, procurement and non-procurement individuals. It was revealed that ESG was the number 2 priority right now, specifically where sustainability was concerned. Modern slavery is also becoming more of a concern. [12:00] A fad or long term change? Priorities like this for any business are subject to the politics of the day. They are important now as that’s where a lot of focus in from many different sources, but they are likely temporary and will be dependent on geographical location and available investment. However, the impact of emissions reporting as a result of ESG will have a longer term affect as scope 3 emissions include supply chains. More businesses will be expecting their supply chains to meet their emissions reporting requirements going forward. [13:20] How long has procurement been doing ESG/CSR type work?: Back 14 years ago, when they had to report back on supplier diversity spend, they had very little data. It involved a lot of extrapolating data so that you have something to report back with. More accurate data reporting has picked up in the last 6 years, and is more on an organisation by organisation basis. The key driver for procurement involvement in any aspect of sustainability is due to regulatory requirements. [15:00] Innovation for a better future: The digitisation and other technological advancements will allow for better ESG support, with more accurate data and reporting capabilities. Back in the day, it may have been a case of sampling some 100 suppliers out of a pool of 10,000 listed on a simple spreadsheet, and then googling them to see which ones would be considered diverse suppliers. It short, it used to involve a lot of manual data gathering, which is rapidly getting replaced by new tech tools. [26:20] What are the greatest challenges procurement currently faces with ESG? One of the challenges is internal. When ESG is brought to the table, decisions have to be made about selecting suppliers who would align with their ESG requirements, which is a decision that is ultimately made by the budget holder. Procurement can do everything they can to mitigate any additional cost, but they do not decide who spends the money with who. A lot of the role procurement can play in supporting ESG is dependent on the organisational focus on those initiatives and how well everything is communicated to all involved. [17:20] Looking to the future of procurement: Procurement was once seen as a cost management function, now professionals like Philip are looking at how they can demonstrate the additional value they can bring to an organisation, including supporting ESG compliance. Procurement has shifted more towards risk management, with a greater focus on risk factors such as cost and sustainability. There’s still a lot of uncertainty around what the next 10 years will look like. Philip predicts that procurement will become a smaller, yet more impactful area than it is today. The operating model will likely shift to a more service-based approach with a more nuanced approach to supporting businesses. Philip can see a world where sustainability and supply chains merge as third-party suppliers will have an increased effect on an organisations ability to meet its sustainability goals. [20:30] What is Art of Procurements’ mission to 10X the impact of procurement?: Philip aims to change the mindset of procurement leaders, and get them to think outside of the box. Procurement can have a significant impact on organisations, in the form of additional support like ESG, but also because they have a much wider field of view regarding potential suppliers. It’s about going back to basics, asking: ·      What is procurement? ·      How should it operate? ·      How can procurement best support businesses? Their mission aims to rethink how procurement works, and refining how to best work with organisations to achieve their goals. [22:25] What are the principles of this mission?: Philip highlights a few that he’s passionate about, including: Focus on driving business outcomes: How can procurement build their capabilities around what the business truly needs? There can be conflict between an organisation and its procurement, whether that be with stakeholders or selecting suppliers. So, it’s about finding a balance between doing what can be done to further an organisations goals while also saving them money. Procurement facilitating differentiated decision making: Procurement can offer some crucial insight into potential suppliers for organisations, but they can only do so if they have the correct data to help make those decisions. When it comes to measurable data, like many aspects of how sustainable a supplier may be, this is where procurement can help businesses make smarter decisions. Overseeing not managing spend: Procurement should not necessarily have complete control over the spend of an organisations, but using technology they should be able to understand what is being spent and with who. It’s keeping an eye on potential risk factors with sup

    38 min
  6. #194 Clyde & Co’s Carbon Verification Journey

    15 OCT

    #194 Clyde & Co’s Carbon Verification Journey

    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 f

    34 min
  7. #193 Understanding ESG Reporting – CSDDD

    9 OCT

    #193 Understanding ESG Reporting – CSDDD

    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. Subscribe to keep up-to-date with our latest episodes: Stitcher | Spotify | YouTube |iTunes | Soundcloud | Mailing List

    14 min
  8. #192 Understanding ESG Reporting – CSRD

    2 OCT

    #192 Understanding ESG Reporting – CSRD

    2030 is fast approaching and we’re already falling behind on our Net Zero targets, which will take a coordinated collective effort to get back on track. As a result, businesses are coming under increasing pressure to monitor, report and reduce their energy use and carbon emissions to meet net zero targets. This has led to 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 Corporate Sustainability Reporting Directive (CSRD) is, how it affects your emissions reporting, the verification requirements and who qualifies for CSRD. You’ll learn ·      What is CSRD? ·      How will the CSRD affect your Emissions Reporting? ·      What are the emissions verification requirements for CSRD? ·      Who qualifies for ISSB S2?   Resources ·      Carbonology ·      Carbonology LinkedIn ·      Carbonology Instagram ·      CSRD     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 Corporate Sustainability Reporting Directive (CSRD). [02:55] What is CSRD? – The Corporate Sustainability Reporting Directive (CSRD) is a new EU directive that modernises and strengthens the rules concerning the social and environmental information that companies have to report. It revises the 2014 Non-Financial Reporting Directive (NFRD), extends the scope of covered companies, and strengthens the reporting requirements. The CSRD was formally adopted by the European Council on 28 November 2022. The directive is transforming ESG reporting and will start affecting almost 50,000 companies from 2024 by expanding the scope to include all large companies, all companies listed on regulated markets, and non-EU companies with substantial activities in the EU. This includes non-EU companies with subsidiaries operating within the EU or those listed on EU regulated markets. Many companies located both within and outside the EU will be affected during the CSRD’s phase-in period beginning in fiscal year 2024.   [05:10] How will the CSRD affect your Emissions Reporting?: Under the CSRD, companies are required to report on their greenhouse gas (GHG) emissions. This includes: ·      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. ·      Significant Scope 3 Emissions: Other indirect emissions that occur in a company’s value chain. Companies are required to report on significant Scope 3 sources. This could include emissions from business travel, employee commuting, waste disposal, etc. [07:10] What are the Emissions Verification Requirements? Under the CSRD, companies are required to have their reported GHG emissions data verified by an independent third party. The verification process ensures the accuracy and reliability of the reported information. Verification options for CSRD include: ·      Independent Verification: Companies must engage an accredited third-party verifier to audit and confirm the accuracy of their GHG emissions reports. ·      Verification Standards: The verification must be conducted in accordance with recognised international standards, such as ISO 14064-3. ·      Assurance Levels: The verification should provide a reasonable level of assurance that the emissions data is accurate and complete. ·      Frequency of Verification: Verification is required on an annual basis to ensure ongoing accuracy and compliance with the CSRD. [10:10] Who qualifies for CSRD? The Corporate Sustainability Reporting Directive (CSRD) applies to a broad range of companies based on the following criteria: 1)    Companies listed on regulated markets in the EU (excluding listed micro-enterprises). 2)    Large companies, classified as those meeting at least two of the following three conditions: ·      More than 250 employees. ·      A turnover of over €40 million. ·      Over €20 million in total assets. 3)    Listed Small and Medium-sized Enterprises (SMEs), although there will be a transitional period when SMEs can opt out until 2028. 4)    Non-EU companies with a net turnover of €150 million in the EU, and with at least one subsidiary or branch in the union. If you would like to learn more about CSRD 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. Subscribe to keep up-to-date with our latest episodes: Stitcher | Spotify | YouTube |iTunes | Soundcloud | Mailing List

    14 min
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Blackmores is a pioneering consultancy firm with a distinctive approach to working with our clients to achieve and sustain high standards in Quality, Risk and Environmental Management. We'll be posting podcasts discussing ISO standards here very soon!

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