ACCA Strategic Professional · Advanced Performance Management · Sustainability
Meridian Steel has an environmental management system that is certified to ISO 14001. Its directors say the company therefore has reliable sustainability performance. An APM adviser reviews the position. Which statement is most accurate?
ISO 14001 certifies the environmental management system, meaning policy, objectives, monitoring and improvement processes exist and are followed. It does not set fixed emission limits or guarantee results, so certification alone does not prove strong environmental performance and internal measures remain necessary.
- AISO 14001 certifies that a management system exists and is followed; it does not set absolute performance targets or guarantee reduced emissionsCorrect
- BISO 14001 sets mandatory industry emission limits that the company must meet
- CISO 14001 requires monetary valuation of all environmental impacts in the financial statements
- DISO 14001 replaces the need for any internal performance measures
Explanation
ISO 14001 is a standard for an environmental management system, requiring policy, objectives, monitoring and continual improvement. It does not prescribe emission limits, require monetary valuation, or remove the need for internal measures. A firm could be certified yet have poor absolute performance.
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