ISO 14000 in Japan: Japan leads the world in ISO 14000 registrations We look at the reasons why

1999-10-14

When Canadians think about Japan, they usually picture cherry blossoms, busy cities, sophisticated electronics, manga (comic books), anime (animation), Hello Kitty or Pokémon. Most don’t think about ISO 14000.

But perhaps they should. Japan is the world leader in adopting this international family of environmental management standards. The country boasts more than 2,000 registered environmental management systems (EMS) — about 20 per cent of the worldwide total.

A remarkable variety of Japanese organizations have obtained registration, from factories to government offices to supermarkets. And information and financial support are widely available for organizations establishing or registering an EMS.

Going by the numbers

By May of this year, Japan had recorded 2,124 ISO 14001 registrations, according to figures from the Japan Accreditation Board for Conformity Assessment (JAB). Current figures from other countries aren’t available, but earlier surveys have consistently identified Japan as the world leader, followed by Germany and Great Britain.

That trend is likely to continue. In a February 1998 survey, about a third of the companies listed on the Japanese stock exchange said they planned to register. According to some forecasts, the number of registered organizations will double in the next three years.

Canada’s achievements and ambitions are more modest. According to the Globus Registry, a directory of ISO 9000 and 14000 registered organizations, there were 62 ISO 14000 registrations in Canada as of late August. A research study conducted earlier this year by the Standards Council of Canada’s Canadian National Committee of ISO and Industry Canada (please see our March-April 1999 issue for details) found that 18 per cent of the non-registered Canadian companies surveyed planned to seek registration.

While the numbers are interesting, they don’t necessarily provide a complete or accurate picture. Not all registrars submit information to Globus, for example, so the actual number of Canadian registrations is believed to be higher. The Canadian and Japanese economies  differ considerably in size and composition. And registrations can be issued on an organization-wide or site-bysite basis, so the numbers can often be misleading.

But numbers aside, there are some genuine differences in Canada’s and Japan’s ISO 14000 experiences. For example, Japan is notable for the variety of organizations that have achieved ISO 14000 registration. As in most other countries, the manufacturing industry accounts for a significant proportion. But other sectors have also adopted ISO 14000. The list of registered organizations includes schools, universities, banks, trading houses and even supermarkets.

Governments are also establishing and registering EMSs. The country’s Environment Agency, for example, is seeking registration, as are an estimated 80 local governments. About 14 more are already registered.

So far, Canada’s ISO 14000 users are less diverse. According to the Globus Registry, most registered Canadian organizations are private-sector firms involved in the manufacturing or resource industries, with the exception of two power companies and a provincial watertreatment agency.

The why and wherefore

What accounts for Japan’s enthusiasm for ISO 14000? The reasons for implementing an ISO 14000 EMS are much the same in Japan as they are in the rest of the world. Companies see an EMS as a means of improving their environmental performance and public image, reducing costs by conserving energy and resources, motivating employees, distinguishing themselves from the competition, and expanding their pool of potential clients.

But observers also point to a number of influences that are uniquely Japanese. One of these is the Japanese experience with ISO 9000. Because of their confidence in their own quality control systems, Japanese companies were slow to adopt ISO 9000. As a result, they were caught short when European and North American clients began to insist that their suppliers be registered.

That’s beginning to turn around. ISO’s latest survey of ISO 9000 registrations worldwide, conducted at the end of 1997, found Japan lagging behind the major European countries, and only slightly ahead of China, South Korea and Canada. But it also pegged Japan as the country with the fastest growth in registrations.

Japanese firms don’t want to repeat their ISO 9000 experience with ISO 14000. In fact, Japan was one of the first countries to embrace the standards. According to one estimate, by the time the final version of ISO 14001 was published in September 1996, about two-thirds of the country’s electrical equipment industry had already registered.

Observers also point to Japanese concern over the environment. During the country’s rapid growth in the 1950s and 60s, several high-profile incidents, including over 80 deaths due to mercury poisoning, led to widespread concern about pollution. More recently, events such as the United Nations’ 1997 Kyoto Conference on global warming and new environmental legislation have prompted Japanese organizations to review their environmental practices.

It’s not surprising that the Japanese would be concerned about the environment. As a small island nation with limited natural resources, Japan has to import most of the raw materials and energy it uses.

Japan is also densely populated, with four times Canada’s population in an area one-third the size of Ontario. As a result, pollution, resource conservation and land use are serious concerns.

Strong endorsement from government and from the country’s leading industries may also have contributed to ISO 14000’s success in Japan. The national government, for example, has supported the implementation of EMSs since 1993, when its Basic Environmental Plan recommended them as an effective tool for dealing with environmental issues.

Besides pursuing their own registrations, governments at the national, prefecture and local levels offer grants and loans to organizations establishing or registering an EMS. Tokyo’s metropolitan government, for example, will cover half the cost of registration, to a maximum of 1.3 million yen (about $17,000 Canadian).

Japan’s major corporations are also on board, both setting an example and encouraging other firms to become registered. The list of registered companies includes well-known names like Sony, Hitachi, Toshiba, Sanyo, Fujitsu, Sharp and NEC. Most of Toyota’s manufacturing facilities around the world are registered, including plants in British Columbia and Ontario.

Matsushita Electrical Industrial has announced that it is giving priority to suppliers who have an EMS, and is even considering offering financial assistance to suppliers who want to improve their environmental performance.

Japanese lessons

Japan’s experience shows the growth potential for ISO 14000 in Canada, and suggests what will have to happen in order for that potential to be realized. Governments can foster the growth of the standards by endorsing and applying them. Major companies can also help by implementing the standards and by encouraging their suppliers to use them. Most importantly, however, an EMS needs to be widely regarded as an effective tool for managing an organization’s impact on the environment.

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This article first appeared in Volume 26 of CONSENSUS Magazine, 1999.  The information it contains was accurate at the time of publication but has not been updated or revised since, and may not reflect the latest updates on the topic.  If you have specific questions or concerns about the content, please contact the Standards Council of Canada.

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