Why adopting ISO 14001 is important for your business

Over 300,000 companies worldwide are ISO 14001 certified. Yet, many Canadian entrepreneurs aren’t entirely convinced of the benefits and are reticent about getting certified.

“Obtaining the ISO 14001 certification is a voluntary process,” says Rowda Mohamud, Director of Business Development Advisory Services at BDC. Nevertheless, she adds that it benefits small and medium-sized businesses to see how it optimizes management systems and identifies areas where they can reduce their environmental impact.

Mohamud has helped hundreds of Canadian businesses get certified. She estimates that fewer than 20% of Canadian companies hold an ISO 14001 designation and notes that those who have not adopted it are missing out on the important benefits a green certification could bring to their business.

ISO 14001 scope, requirements and benefits

ISO 14001 provides a framework for companies that want to implement an effective environmental management system (EMS). It requires detailed information about environmental impacts from your business, but also offers several benefits:

Emissions

Requirements: Track pollutants released into the air and take steps to minimize them.

Benefits: It helps meet your legal requirements and reduce environmental harm.

Water and sewage

Requirements: Manage water consumption and treat wastewater before it is released.

Benefits: It helps protect ecosystems and conserve a vital resource.

Waste management

Requirements: Reduce, reuse and recycle waste wherever possible.

Benefits: Lowers disposal costs and your company’s environmental footprint.

Soil contamination

Requirements: Prevent harmful chemicals from entering the ground.

Benefits: Protects human health, agriculture and natural habitats.

Climate change

Requirements: Reduce greenhouse gas emissions and prepare for climate-related risks.

Benefits: Contributes to long-term environmental resilience and sustainability, benefiting both the environment and your business.

Resource use

Requirements: Find efficient use of energy, raw materials and water.

Benefits: Lowers costs, conserves resources and reduces reliance on finite natural inputs.

Regardless of the size of your business, ISO 14001 helps you manage your environmental impacts, risks, and opportunities. It systematically does this. It is particularly valuable in helping your company achieve its environmental objectives. It also creates more robust reporting.

Five ways ISO 14001 can improve your business

1. Increased sustainability

ISO 14001 demonstrates to stakeholders that your business is taking proactive measures to minimize its environmental impact. It also shows your company is serious and transparent in its efforts toward effective environmental issue management.

“These are very practical and pragmatic standards, and they cover pretty well every aspect of a company’s operations. They point to how you are going to manage important environmental issues, such as climate change, emissions, and waste, in a proactive way,” explains Mohamud.

2. More open to innovation

ISO 14001 encourages business owners to explore sustainable practices. What might feel like a set of restrictions can help your company. The ISO 14001 framework provides a new perspective, helping you identify opportunities that drive innovation and efficiency. It also helps your business mitigate risks associated with negative environmental impacts, such as wastewater, hazardous material management, or air emissions.

As a result, businesses that align with ISO 14001 and achieve certification experience immediate short-term benefits.

3. Eligible for more contracts

Many calls for tenders often require bidders to hold a specific certification. Mohamud says numerous entrepreneurs she works with find the ISO 14001 designation essential to landing government contracts or entering the supply chain of large companies.“When companies are bidding on tenders, especially with government agencies, there are often requirements to meet ISO 14001. The designation sets a company apart from the competition,” she says.

4. Expanded markets

ISO 14001 opens doors to markets that prioritize environmental management and performance. It offers robust sustainability returns and is a powerful passport to help your company do business with international customers.

When a client is exporting beyond the U.S. or Mexico, buyers want to be assured that international environmental standards are respected. “I would say about 90% of the companies that we’ve helped at BDC with any of the ISO standards are internationally minded,” says Mohamud. “These are companies that are looking at going into the European Union, Australia or Japan. Global markets place much more emphasis on standards such as ISO 14001 as a way of evaluating a company’s management and ability to mitigate risk and maximize efficiency,” she adds.Mohamud says that not having ISO 14001 “can be a significant obstacle to growth in international markets.”

5. Responding to client demand

A key reason firms pursue ISO 14001 certification is that clients prefer working with environmentally responsible companies.  Sometimes, a company may not be asked if they are ISO 14001 compliant, but they may be required to provide proof of compliance with specific ISO 14001 standards. “We had a client reach out to us and say, ‘We have been asked about our environmental performance, so we would like to do what’s necessary to be ISO 14001 compliant.’ We helped them look at things like the environmental impact of their products, where their materials are sourced, how efficient the plant operates and even how their plant is laid out,” Mohamud recalls.

While there are clear benefits to getting ISO 14001 certified, the standard alone is no magic bullet—it won’t make your company carbon neutral.

What ISO 14001 will do is help you identify the environmental issues in your business, monitor and manage them as part of a continuous improvement exercise. It is a valuable tool in your environmental toolbox, but it shouldn’t be the only one.

Debunking the most common ISO 14001 myths

Myth: Implementing ISO 14001 is too expensive.

Reality: It’s a beneficial long-term investment.

Mohamud says that while many entrepreneurs are worried about the costs associated with implementing ISO 14001, certification is an investment in your business’s future.

While there are initial costs, you should consider the savings available by identifying environmental issues that pose risks and opportunities for your business. This includes reducing waste, wastewater, and emissions, as well as improving your business’s overall mindset.

Myth: Implementing ISO 14001 takes up too much time.

Reality: There are specialists who can help.

While gathering all the documentation and getting through the certification process might be a bit complex, the good news is that you don’t have to do it alone.

BDC can work with your existing staff to minimize disruption. Implementing ISO 14001 can also address some of your existing pain points. It can be integrated into your ongoing operations to deliver a wide range of benefits and optimize resource use and efficiency.

Myth: Your company is too small to use ISO 14001.

Reality: ISO 14001 is scalable and suitable for any business, regardless of its size.

ISO 14001 is suitable for organizations of all types and sizes, whether private, not-for-profit, or governmental. It can be scaled to fit your operations and your objectives. Companies of all sizes can benefit from the certification’s standard of improving efficiency, reducing risk, and enhancing reputation.

Myth: ISO 14001 takes too long to implement.

Reality: It can be achieved in six to eight months.

Mohamud states that clients usually achieve certification within six to eight months, which includes three months of evidence collection for the environmental management system. The long-term benefits of this environmental compliance are likely to outweigh the short-term investment in time and resources.

Business case: How ISO 14001 helped this B2B company

• Company type: Commercial tower cleaning
• Objectives: Win larger contracts, reduce emissions
• Actions taken: Route optimization, switched to organic products
• Results: Reduced carbon footprint, created an electric fleet plan

Mohamud gives the example of this fast-growing B2B company specializing in commercial tower cleaning. To solidify their growth and client base, the company’s leadership put together a strategy to bid (and win) on larger contracts. One key component of this exercise was obtaining ISO 14001 certification.

Company’s key objectives:

• Stand out from the crowd when bidding on larger contracts.
• Identify environmental impacts, risks and opportunities.
• Establish quick wins and determine longer-term investment for carbon emissions reduction.
• Demonstrate progress on environmental objectives to current and prospective customers.

Challenges:

Staff were unaware of the environmental impact of their operations.

• Limited resources and lack of subject matter expertise in environmental issues.
• Incorrect assumption about the path to carbon emissions reduction.

Impact after getting ISO 14001:

• Identified key action areas for improved environmental performance (short-term results):
  • Reduced carbon emissions by optimizing cleaners’ route to clients.
  • Reduced use of chemicals and replaced them with organic cleaning products.
• Identified key strategic environmental actions (long-term potential results):
  • Put together a strategic plan to invest in electrifying its fleet
• Established clear Environmental Management System (EMS) policy, objectives and key performance indicators (KPIs).
• Closed bidding on three potential large contracts with positive feedback.

Think ISO 14001 could be right for you?

As Canadian businesses face increasing pressure to minimize their environmental impact, Mohamud says it’s likely that there will be more demand in the future for companies to demonstrate, through credible certifications, that they are environmentally responsible.

BDC offers support for obtaining ISO 14001 certification and for assessing the potential benefits for your business. Contact our experts for assistance and guidance.

Five takeaways: How ISO 14001 benefits SMEs

1. Boosts credibility and sustainability

ISO 14001 certification signals to customers, suppliers and partners that your business is serious about reducing its environmental footprint. It shows transparency and commitment, which can strengthen your reputation and open doors with clients who value sustainability.

2. Unlocks innovation and efficiency

The framework doesn’t just reduce risks, such as waste, emissions, or water use; it often sparks new ways of working. Many businesses find that once they adopt ISO 14001, they identify opportunities to reduce costs, streamline operations, and develop greener, more efficient processes.

3. Helps win contracts and expand markets

Numerous government tenders and supply chains now require ISO 14001 certification. Without it, you may be excluded from bids. For businesses with international ambitions, certification serves as a “passport” to markets in Europe, Asia, and beyond, where environmental standards carry significant weight.

4. Meets growing client demand

Even if clients don’t explicitly ask about ISO 14001, they increasingly expect proof of responsible environmental practices. Certification makes it easier to answer their questions on sourcing, emissions, and overall impact—helping you stay competitive and responsive.

5. A scalable, worthwhile investment

ISO 14001 isn’t just for big corporations. It can be adapted to businesses of any size and often pays for itself through efficiency gains, reduced risk and new business opportunities. Most companies achieve certification within six to eight months, with long-term benefits far outweighing the upfront effort.

Next step

Check out our comprehensive guide on the most relevant environmental certifications and which one is right for your business by downloading the free guide to Canadian green building standards and certifications.