ISO 9001, 14001 AND 45001: MANAGING RISK EFFECTIVELY AND EFFICIENTLY IN THE CONSTRUCTION INDUSTRY CONTRIBUTING AUTHORS: CHERYL SAVAGE, SENIOR CONSULTANT, EMEA, SAI GLOBAL STEVE NICHOLAS, COMMERCIAL GENERAL MANAGER, EMEA, SAI GLOBAL For the first time, organisations in the construction industry will THE ISO STANDARDS: soon have a common structure to enable easier integration of their AT A GLANCE (AS AT JULY 2017) quality, occupational health and safety (OHS) and environmental ISO 9001 – quality management systems. In an industry characterised by significant management systems – in transition safety and environmental challenges and increasingly complex to a new edition processes, this change is a major opportunity for organisations of ISO 14001 – environmental management systems – in transition any size to better meet those challenges and streamline processes. to a new edition This whitepaper discusses the organisational benefits this ISO 45001 – OHS management opportunity brings for integration, and provides practical guidance systems – awaiting publication of new ISO standard on moving towards integration of ISO 9001, 14001 and 45001. THREE NEW STANDARDS, ISO 14001: AN ENVIRONMENTAL approval stages and will replace OHSAS ONE COMMON STRUCTURE MANAGEMENT SYSTEM 18001 or AS/NZS 4801. ISO 45001 will ISO 14001:2015 was also released on help organisations provide a healthy and ISO 9001: A QUALITY 15 September 2015 and is a major revision safe workplace and prevent work-related MANAGEMENT SYSTEM to the previous edition issued in 2004. injuries, illnesses and deaths by bringing The latest edition of this quality management This standard, which is now the foundation OHS management into the heart of the system standard, ISO 9001:2015, was to many environmental management organisation. released on 15 September 2015 and replaces systems, aims to help companies improve ISO 9001:2008. It’s the foundation of ISO their environmental performance and WHAT’S THE COMMON STRUCTURE? management systems worldwide and first reduce the burden of management system ANNEX SL became an ISO standard in 1994. documentation in the pursuit of more ISO 9001, 14001 and 45001 all follow environmentally sustainable practices. Annex SL, a high-level structure approach Today, more than 1 million organisations that ensures consistency, applies common are certified to ISO 9001.1 The standard, ISO 45001: AN OHS language and enables integration of these which is predominantly about the MANAGEMENT SYSTEM systems. This structure also requires full enhancement of customer satisfaction, The world’s first ISO standard for OHS integration into your business, rather than has had a major revision in arriving at the management systems, ISO 45001, is the standards being stand-alone systems. latest edition. It introduces new concepts, currently going through final review and terminology and current thinking. 1. The ISO Survey of Management System Standard Certifications 2015. 1 All certifications to the 2008 and 2004 PREPARING FOR INTEGRATION ANNEX SL HIGH-LEVEL editions that have not been transitioned STRUCTURE to the 2015 editions by 15 September Is your company ready for integration of these new ISO standards? First, make sure 1. Scope 2018 will expire. Those that have not yet made the transition should conduct a gap your organisation is aware of the benefits 2. Normative references analysis and consult with their certification of the standards and integration, and is 3. Terms and definitions body to make arrangements for transition ready to embrace the change – get buy-in 4. Context of the organisation at least six months before this date. from your management team. 5. Leadership Next, you’ll need to review and identify the similarities and duplication in the 6. Planning EXPIRATION OF 2008 AND standards. Take organisational context, 7. Support 2004 CERTIFICATIONS for example. The revised standards add 8. Operation All certifications to the 2008 and context to quality, OHS and environmental 9. Performance evaluation 2004 editions that have not been management systems, requiring an 10. Improvement transitioned to the 2015 editions understanding of both the internal and by 15 September 2018 will expire. external factors that may affect the Those that have not yet made intended outcomes of these systems. AN OPPORTUNITY TO INTEGRATE the transition should conduct This is a similarity that allows context a gap analysis and consult with to be considered for quality, OHS and Before 2015, standards had different their certification body to make environmental outcomes at one time. structures, terminology and sometimes arrangements for transition at least Similarly, the focus on highlighting risks conflicting requirements. To address this six months before this date. and opportunities is common across the issue, ISO created a high-level structure standards. Identifying these and indicating using Annex SL, a blueprint for all new and how they’ll be addressed through revised management system standards A second draft of ISO 45001 was released planning can again be approached in a going forward. This common structure on 19 May 2017 and the published version coordinated way. means all systems become an integral part is expected in February 2018.2 As with all The crossover with the standards means of the company’s management system. The ISO management systems, there will be you’ll have to reassess and define roles and shift that accompanies this new structure a transition/migration period to give you responsibilities within your organisation aligns management systems with your time to implement the new requirements. – without losing the required expertise. organisation’s strategic goals and direction It’s expected that the usual three-year Keep in mind, also, that the new standards and encourages continual improvement. period will be applied to enable certified place increased emphasis on the role of top organisations to move from the existing Integration isn’t just incorporating systems management, or those people or persons standards to ISO 45001. into one manual of policies and procedures that lead and direct an organisation at the or cross-referencing procedures. It’s not highest level. Top management will have just putting your quality manager, safety greater accountability and involvement in manager and environmental manager into the organisation’s management systems one department. and will be responsible for ensuring Integration means standards are linked ISO 9001 ISO 45001 management systems are compatible with in a way that makes boundaries between Quality OHS the organisation’s strategic direction. Annex SL processes seamless. Integration is about Common The new standards also put more focus fixing the standards together into a structure term on processes within an organisation – cohesive whole. It’s about having one & text those interacting activities that turn procedure that controls business risk. inputs into outputs. They encourage a full understanding of all the key processes in INTEGRATING ISO 9001, 14001 an organisation, where the key processes ISO 14001 AND 45001: TIMING cause a risk to the business and how the Environmental The three standards are at varying stages organisation operates as an integrated in the migration and transition cycle, so and complete system. Using this approach it’s important to get the timing right when during integration means less disruption looking at integration. Figure 1: IMS Internal Auditor Slides to the business, as the processes and its Issue 1 2016 controls are already in place. The clock is counting down on the three- year transition period for ISO 9001:2008 to ISO 9001:2015 and ISO 14001:2004 to ISO 14001:2015. 2. International Organization for Standardization, ISO 45001 – Occupational health and safety. 2 Here’s what a process approach to • Implement the controls and tool, to improve performance, remove integration can look like: communicate to all interested parties complexity, drive real value and embed continual improvement. • Map the key business processes • Evaluate the effectiveness of the processes • Analyse business processes using IMPROVED RISK AND flow charts • Review and improve OPPORTUNITY MANAGEMENT • Identify the risk – business, WHY INTEGRATE? A risk-based approach takes centre stage environmental, health and safety with ISO 9001, 14001 and 45001, with or quality Integration combines the standards in a risk defined broadly as the uncertainty • Cross-reference with clauses from way that makes the whole greater than a of an intended outcome. This risk-based Annex SL or individual ISO standards sum of the parts. You’ll have a clear and approach is about identifying both the risks uniform approach to managing risks and and opportunities for the organisation, • Formulate operational policies that will opportunities, bringing many benefits. and aligning risk and opportunity with govern the processes the strategic direction of the business. • Develop procedures or other IMPROVED BUSINESS PERFORMANCE It generates improvements in operational methodology to control each business The new standards can together be used efficiency, reduces duplication, and saves process which define who does what as a powerful business management both time and money. where, when and how CONSTRUCTION INDUSTRY STATISTICS • Although construction accounts for of those deaths were caused by falls, • In the Australian construction only about 5% of the employees in being struck by an object, electrocution, industry, there are 35 serious workers’ Britain,