Environmental management - Guidelines for determining environmental costs and benefits (ISO 14007:2019)

This document gives guidelines for organizations on determining the environmental costs and benefits associated with their environmental aspects. It addresses the dependencies of an organization on the environment, for example, natural resources, and the context in which the organization operates or is located. Environmental costs and benefits can be expressed quantitatively, in both non-monetary and monetary terms, or qualitatively.
This document also provides guidance for organizations when disclosing related information.
This document takes an anthropocentric perspective, i.e. looking at changes that affect human wellbeing (utility) including their concern for, and dependence on, nature and ecosystem services. This includes use and non-use values as reflected in the concept of total economic value when environmental costs and benefits are determined in monetary terms.
The ways in which the environmental costs and benefits are used after they have been determined are outside the scope of this document.
This document is applicable to any organization regardless of size, type and nature.

Umweltmanagement - Leitlinien zur Ermittlung von Umweltkosten und -nutzen (ISO 14007:2019)

Dieses Dokument gibt Organisationen Leitlinien zur Bestimmung der Umweltkosten und  nutzen im Zusammenhang mit ihren Umweltaspekten an die Hand. Es behandelt die Umweltabhängigkeiten einer Organisation, wie z. B. von natürlichen Ressourcen, sowie den Kontext, in dem die Organisation tätig oder ansässig ist. Umweltkosten und  nutzen können quantitativ, sowohl in nicht monetärer als auch in monetärer Form, oder qualitativ ausgedrückt werden.
Dieses Dokument gibt Organisationen zudem eine Anleitung bei der Offenlegung dieser relevanten Informationen.
Dieses Dokument übernimmt eine anthropozentrische Perspektive, d. h. es betrachtet Änderungen, die sich auf das Wohlbefinden (Nutzen) der Menschen auswirken, einschließlich ihrer Sorge für und ihrer Abhängigkeit von Natur und Ökosystemleistungen. Dies beinhaltet Gebrauchs  und Nichtgebrauchswerte, wie sie im Konzept des ökonomischen Gesamtwertes enthalten sind, wenn Umweltkosten und  nutzen in monetärer Form bestimmt werden.
Die Art und Weise, in der die Umweltkosten und  nutzen verwendet werden, nachdem sie bestimmt wurden, liegt außerhalb des Anwendungsbereichs dieses Dokuments.
Dieses Dokument ist anwendbar auf jede Organisation, ungeachtet ihrer Größe, ihres Typs und ihrer Art.

Management environnemental - Lignes directrices pour la détermination des coûts et des bénéfices environnementaux (ISO 14007:2019)

Le présent document fournit aux organismes des lignes directrices relatives à la détermination des coûts et bénéfices environnementaux associés à leurs aspects environnementaux. Il traite des dépendances d'un organisme vis-à-vis de l'environnement, telles que les ressources naturelles, et du contexte dans lequel l'organisme exerce ses activités ou évolue. Les coûts et bénéfices environnementaux peuvent être exprimés quantitativement, que ce soit en termes monétaires ou non monétaires, ou qualitativement.
Le présent document donne également des recommandations aux organismes pour la divulgation d'informations connexes.
Le présent document adopte une perspective anthropocentrique, c'est-à-dire qu'il examine les changements qui affectent le bien-être des êtres humains (utilité), y compris leur préoccupation pour la nature et les services écosystémiques ainsi que leur dépendance vis-à-vis de ceux-ci. Cela comprend les valeurs d'usage et de non-usage, telles que reflétées dans le concept de valeur économique totale lorsque les coûts et bénéfices environnementaux sont déterminés en termes monétaires.
Les manières dont sont utilisés les coûts et bénéfices environnementaux une fois qu'ils ont été déterminés n'entrent pas dans le domaine d'application du présent document.
Le présent document s'applique à tout organisme, indépendamment de sa taille, de son type et de sa nature.

Ravnanje z okoljem - Smernice za ugotavljanje okoljskih stroškov in koristi (ISO 14007:2019)

General Information

Status
Published
Public Enquiry End Date
09-Jun-2020
Publication Date
03-Sep-2020
Technical Committee
Current Stage
6060 - National Implementation/Publication (Adopted Project)
Start Date
02-Sep-2020
Due Date
07-Nov-2020
Completion Date
04-Sep-2020

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SLOVENSKI STANDARD
SIST EN ISO 14007:2020
01-oktober-2020
Ravnanje z okoljem - Smernice za ugotavljanje okoljskih stroškov in koristi (ISO
14007:2019)
Environmental management - Guidelines for determining environmental costs and
benefits (ISO 14007:2019)

Management environnemental - Lignes directrices pour la détermination des coûts et

des bénéfices environnementaux (ISO 14007:2019)
Ta slovenski standard je istoveten z: EN ISO 14007:2020
ICS:
13.020.20 Okoljska ekonomija. Environmental economics.
Trajnostnost Sustainability
SIST EN ISO 14007:2020 en

2003-01.Slovenski inštitut za standardizacijo. Razmnoževanje celote ali delov tega standarda ni dovoljeno.

---------------------- Page: 1 ----------------------
SIST EN ISO 14007:2020
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SIST EN ISO 14007:2020
EN ISO 14007
EUROPEAN STANDARD
NORME EUROPÉENNE
August 2020
EUROPÄISCHE NORM
ICS 13.020.20
English Version
Environmental management - Guidelines for determining
environmental costs and benefits (ISO 14007:2019)

Management environnemental - Lignes directrices Umweltmanagement - Leitlinien zur Ermittlung von

pour la détermination des coûts et des bénéfices Umweltkosten und -nutzen (ISO 14007:2019)

environnementaux (ISO 14007:2019)
This European Standard was approved by CEN on 12 July 2020.

CEN members are bound to comply with the CEN/CENELEC Internal Regulations which stipulate the conditions for giving this

European Standard the status of a national standard without any alteration. Up-to-date lists and bibliographical references

concerning such national standards may be obtained on application to the CEN-CENELEC Management Centre or to any CEN

member.

This European Standard exists in three official versions (English, French, German). A version in any other language made by

translation under the responsibility of a CEN member into its own language and notified to the CEN-CENELEC Management

Centre has the same status as the official versions.

CEN members are the national standards bodies of Austria, Belgium, Bulgaria, Croatia, Cyprus, Czech Republic, Denmark, Estonia,

Finland, France, Germany, Greece, Hungary, Iceland, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, Netherlands, Norway,

Poland, Portugal, Republic of North Macedonia, Romania, Serbia, Slovakia, Slovenia, Spain, Sweden, Switzerland, Turkey and

United Kingdom.
EUROPEAN COMMITTEE FOR STANDARDIZATION
COMITÉ EUROPÉEN DE NORMALISATION
EUROPÄISCHES KOMITEE FÜR NORMUNG
CEN-CENELEC Management Centre: Rue de la Science 23, B-1040 Brussels

© 2020 CEN All rights of exploitation in any form and by any means reserved Ref. No. EN ISO 14007:2020 E

worldwide for CEN national Members.
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SIST EN ISO 14007:2020
EN ISO 14007:2020 (E)
Contents Page

European foreword ....................................................................................................................................................... 3

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SIST EN ISO 14007:2020
EN ISO 14007:2020 (E)
European foreword

The text of ISO 14007:2019 has been prepared by Technical Committee ISO/TC 207 "Environmental

management” of the International Organization for Standardization (ISO) and has been taken over as

EN ISO 14007:2020 by CCMC.

This European Standard shall be given the status of a national standard, either by publication of an

identical text or by endorsement, at the latest by February 2021, and conflicting national standards

shall be withdrawn at the latest by February 2021.

Attention is drawn to the possibility that some of the elements of this document may be the subject of

patent rights. CEN shall not be held responsible for identifying any or all such patent rights.

According to the CEN-CENELEC Internal Regulations, the national standards organizations of the

following countries are bound to implement this European Standard: Austria, Belgium, Bulgaria,

Croatia, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Iceland,

Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, Netherlands, Norway, Poland, Portugal, Republic of

North Macedonia, Romania, Serbia, Slovakia, Slovenia, Spain, Sweden, Switzerland, Turkey and the

United Kingdom.
Endorsement notice

The text of ISO 14007:2019 has been approved by CEN as EN ISO 14007:2020 without any modification.

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SIST EN ISO 14007:2020
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SIST EN ISO 14007:2020
INTERNATIONAL ISO
STANDARD 14007
First edition
2019-10
Environmental management —
Guidelines for determining
environmental costs and benefits
Management environnemental — Lignes directrices pour la
détermination des coûts et des bénéfices environnementaux
Reference number
ISO 14007:2019(E)
ISO 2019
---------------------- Page: 7 ----------------------
SIST EN ISO 14007:2020
ISO 14007:2019(E)
COPYRIGHT PROTECTED DOCUMENT
© ISO 2019

All rights reserved. Unless otherwise specified, or required in the context of its implementation, no part of this publication may

be reproduced or utilized otherwise in any form or by any means, electronic or mechanical, including photocopying, or posting

on the internet or an intranet, without prior written permission. Permission can be requested from either ISO at the address

below or ISO’s member body in the country of the requester.
ISO copyright office
CP 401 • Ch. de Blandonnet 8
CH-1214 Vernier, Geneva
Phone: +41 22 749 01 11
Fax: +41 22 749 09 47
Email: copyright@iso.org
Website: www.iso.org
Published in Switzerland
ii © ISO 2019 – All rights reserved
---------------------- Page: 8 ----------------------
SIST EN ISO 14007:2020
ISO 14007:2019(E)
Contents Page

Foreword ........................................................................................................................................................................................................................................iv

Introduction ..................................................................................................................................................................................................................................v

1 Scope ................................................................................................................................................................................................................................. 1

2 Normative references ...................................................................................................................................................................................... 1

3 Terms and definitions ..................................................................................................................................................................................... 1

3.1 Organizations and the environment ..................................................................................................................................... 1

3.2 Environmental economics and finance .............................................................................................................................. 4

4 Principles ..................................................................................................................................................................................................................... 6

4.1 General ........................................................................................................................................................................................................... 6

4.2 Accuracy ........................................................................................................................................................................................................ 6

4.3 Completeness ........................................................................................................................................................................................... 6

4.4 Consistency ................................................................................................................................................................................................ 6

4.5 Credibility .................................................................................................................................................................................................... 6

4.6 Relevance ..................................................................................................................................................................................................... 6

4.7 Transparency ............................................................................................................................................................................................ 6

5 Planning ......................................................................................................................................................................................................................... 6

5.1 General ........................................................................................................................................................................................................... 6

5.2 Defining the purpose of determining environmental costs and benefits ............................................. 7

5.3 Determining relevant sources and types of information .................................................................................... 8

5.4 Defining the scope ................................................................................................................................................................................ 8

5.4.1 General...................................................................................................................................................................................... 8

5.4.2 Qualitative assessment ............................................................................................................................................... 9

5.4.3 Quantitative non-monetary assessment ..................................................................................................10

5.4.4 Quantitative monetary assessment ..............................................................................................................10

5.4.5 Distinguishing internal from external environmental costs and benefits...................10

5.4.6 Considerations when determining environment-related internal costs and

benefits ..................................................................................................................................................................................10

5.5 Planning actions to determine environmental costs and benefits ..........................................................11

6 Determining environmental costs and benefits ...............................................................................................................11

6.1 General ........................................................................................................................................................................................................11

6.2 Qualitatively assessing environmental costs and benefits .............................................................................12

6.3 Quantifying environmental costs and benefits in non-monetary terms ............................................12

6.4 Quantifying environmental costs and benefits in monetary terms ........................................................13

6.4.1 General...................................................................................................................................................................................13

6.4.2 Environmental damage costs and environmental benefits......................................................13

6.4.3 Environment-related internal costs and benefits.............................................................................15

6.5 Quality check .........................................................................................................................................................................................18

7 Application, reporting and continual improvement ....................................................................................................18

7.1 Remarks on environmental costs and benefits used in specific applications ...............................18

7.1.1 General...................................................................................................................................................................................18

7.1.2 Cost-benefit analyses ................................................................................................................................................19

7.1.3 Aggregating environmental costs and benefits ..................................................................................19

7.2 Reporting ..................................................................................................................................................................................................20

7.3 Continual improvement ...............................................................................................................................................................20

Annex A (informative) Flow chart on determining environmental costs and benefits .................................21

Annex B (informative) Examples of selected terms and concepts ......................................................................................23

Bibliography .............................................................................................................................................................................................................................25

© ISO 2019 – All rights reserved iii
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SIST EN ISO 14007:2020
ISO 14007:2019(E)
Foreword

ISO (the International Organization for Standardization) is a worldwide federation of national standards

bodies (ISO member bodies). The work of preparing International Standards is normally carried out

through ISO technical committees. Each member body interested in a subject for which a technical

committee has been established has the right to be represented on that committee. International

organizations, governmental and non-governmental, in liaison with ISO, also take part in the work.

ISO collaborates closely with the International Electrotechnical Commission (IEC) on all matters of

electrotechnical standardization.

The procedures used to develop this document and those intended for its further maintenance are

described in the ISO/IEC Directives, Part 1. In particular, the different approval criteria needed for the

different types of ISO documents should be noted. This document was drafted in accordance with the

editorial rules of the ISO/IEC Directives, Part 2 (see www .iso .org/directives).

Attention is drawn to the possibility that some of the elements of this document may be the subject of

patent rights. ISO shall not be held responsible for identifying any or all such patent rights. Details of

any patent rights identified during the development of the document will be in the Introduction and/or

on the ISO list of patent declarations received (see www .iso .org/patents).

Any trade name used in this document is information given for the convenience of users and does not

constitute an endorsement.

For an explanation of the voluntary nature of standards, the meaning of ISO specific terms and

expressions related to conformity assessment, as well as information about ISO’s adherence to the

World Trade Organization (WTO) principles in the Technical Barriers to Trade (TBT) see www .iso

.org/iso/foreword .html.

This document was prepared by Technical Committee ISO/TC 207, Environmental management, SC 1,

Environmental management systems.

Any feedback or questions on this document should be directed to the user’s national standards body. A

complete listing of these bodies can be found at www .iso .org/members .html.
iv © ISO 2019 – All rights reserved
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SIST EN ISO 14007:2020
ISO 14007:2019(E)
Introduction

Growing economic consequences regarding climate change impacts (in addition to mitigation and

adaption measures), concerns about the global depletion of natural resources and the loss of functioning

ecosystems are resulting in many challenges for organizations and society as a whole. Dependencies

on natural capital (e.g. water, soil fertility, habitats, landscapes) on the one hand and the impact on

the environment on the other hand are important issues for organizations and their interested parties

in terms of strategic, operational or financial consequences along the whole value chain. There is a

need for guidance on practical methods on how to assess and evaluate the economic consequences

of environmental actions. Determining environmental costs and environmental benefits will help

organizations to manage environment-related risks and opportunities.

Environmental costs are any costs related to the environment, which can result from, for example, the

loss of natural capital that companies are dependent on, impacts on human health and the environment

or environmental legislation-related compliance costs. Environmental benefits are any benefits related

to the environment, which can result from, for example, natural resources used within products or the

production processes of a given organization, including their value chain.

Understanding its environmental costs and benefits allows an organization to link environmental

impacts and dependencies to its decision-making processes. This can create a better understanding of

issues, such as the financial implications related to the environmental aspects of a site, the organization

as a whole, or the organization’s supply or value chain. It can improve operational performance, risk

management, investment decisions and corporate communications. Using this document to determine

environmental costs and benefits can help an organization to manage its environmental dependencies

and to mitigate its environmental impacts. It will also help to align an organization’s activities with

national and international environmental goals or agreements.

This document provides organizations with guidance on determining and documenting environmental

costs and benefits in a comprehensive and transparent way, either quantified in monetary or non-

monetary terms, or described qualitatively. Assessments of the environmental costs and benefits can

be carried out either ex-ante or ex-post. Guidance is provided to help organizations to disclose and

exchange relevant information.

If organizations wish to assess environmental costs and benefits in monetary terms, the economic

valuation methods in this document only capture changes that affect human wellbeing (utility), i.e.

it takes a so-called “anthropocentric perspective”, including their concern for, and dependence on,

nature and ecosystem services. This includes use and non-use values as reflected in the concept of total

economic value.

This document is intended for all sizes of organizations and all sectors. It can be applied to private or

listed enterprises, organizations that are held by the public or are a public service unit, those that have

a role as a large global actor or a small and medium-sized enterprise.

This document is suitable for use by managers, accountants, researchers and consultants who want

to determine environmental costs and benefits. The work will require input from several operational

areas that will need to provide relevant information. This document can help in the integration of

financial and non-financial information in order to better inform organizational decision-making.

© ISO 2019 – All rights reserved v
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SIST EN ISO 14007:2020
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SIST EN ISO 14007:2020
INTERNATIONAL STANDARD ISO 14007:2019(E)
Environmental management — Guidelines for determining
environmental costs and benefits
1 Scope

This document gives guidelines for organizations on determining the environmental costs and benefits

associated with their environmental aspects. It addresses the dependencies of an organization on the

environment, for example, natural resources, and the context in which the organization operates or is

located. Environmental costs and benefits can be expressed quantitatively, in both non-monetary and

monetary terms, or qualitatively.

This document also provides guidance for organizations when disclosing related information.

This document takes an anthropocentric perspective, i.e. looking at changes that affect human wellbeing

(utility) including their concern for, and dependence on, nature and ecosystem services. This includes

use and non-use values as reflected in the concept of total economic value when environmental costs

and benefits are determined in monetary terms.

The ways in which the environmental costs and benefits are used after they have been determined are

outside the scope of this document.

This document is applicable to any organization regardless of size, type and nature.

2 Normative references
There are no normative references in this document.
3 Terms and definitions
For the purposes of this document, the following terms and definitions apply.

ISO and IEC maintain terminological databases for use in standardization at the following addresses:

— ISO Online browsing platform: available at http: //www .iso .org/obp
— IEC Electropedia: available at http: //www .electropedia .org/
3.1 Organizations and the environment
3.1.1
natural resource
part of nature that provides benefits to humans or underpins human well-being
[SOURCE: ISO 14008:2019, 3.1.5]
3.1.2
product
item or service provided by an organization
3.1.3
good
something that satisfies human wants or needs

Note 1 to entry: A good can be a natural resource (3.1.1), an ecosystem (3.1.8) service, a product (3.1.2) or human

health. It can be marketed or not, or be provided by an organization or not.
© ISO 2019 – All rights reserved 1
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SIST EN ISO 14007:2020
ISO 14007:2019(E)
3.1.4
assessment
systematic process of collecting, processing and analysing information
3.1.5
environmental condition

state or characteristic of the environment as determined at a certain point in time

Note 1 to entry: Organizations can be affected by the state of the environment, e.g. through their dependency on

weather-related events or the availability of water or other natural resources (3.1.1).

Note 2 to entry: The stock, flows and quality of renewable and non-renewable natural resources (e.g. plants,

animals, air, water, soils, minerals) that benefit organizations and society are also referred to as “natural capital”.

[SOURCE: ISO 14001:2015, 3.2.3, modified— Notes 1 and 2 to entry have been added.]

3.1.6
environmental dependency
reliance on the use of environmental resources or processes

Note 1 to entry: Expressions similar to “dependency … on the environment” are equivalent.

3.1.7
environmental dependency pathway

causal relationship ultimately starting at an environmental condition (3.1.5) and ending at an effect on

the organization
3.1.8
ecosystem

dynamic complex of plant, animal, and micro-organism communities, and their non-living environment

interacting as a functional entity

EXAMPLE Deserts, coral reefs, wetlands, rain forests, boreal forests, grasslands, urban parks, cultivated

farmlands.
Note 1 to entry: Ecosystems can be influenced by human activity.
[SOURCE: ISO 14008:2019, 3.1.6]
3.1.9
ecosystem service
benefit people obtain from ecosystems (3.1.8)

Note 1 to entry: Ecosystem services are generally distinguished into provisioning, regulating, supporting and

cultural services. Ecosystem services include the provisioning of goods (3.1.3) (e.g. food, fuel, raw materials,

fibre), regulating services (e.g. climate regulation, disease control), and non-material benefits (cultural services)

(e.g. spiritual or aesthetic benefits). The supporting services are necessary for the production of all other

ecosystem services (e.g. soil formation, nutrient cycling, water cycling) and are also referred to as “ecosystem

functions”.

Note 2 to entry: Ecosystem services are sometimes called “environmental services” or “ecological services”.

[SOURCE: ISO 14008:2019, 3.2.11]
3.1.10
environmental aspect

element of an organization’s activities or products (3.1.2) that interacts or can interact with the

environment

Note 1 to entry: An environmental aspect can cause (an) environmental impact(s) (3.1.11). A significant

environmental aspect is one that has or can have one or more significant environmental impact(s).

2 © ISO 2019 – All rights reserved
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SIST EN ISO 14007:2020
ISO 14007:2019(E)

Note 2 to entry: Significant environmental aspects are determined by the organization applying one or more

criteria. This process can be referred to as a “materiality assessment”.

[SOURCE: ISO 14001:2015, 3.2.2, modified— “or services” has been deleted and Note 2 to entry has

been extended.]
3.1.11
environmental impact

change to the environment, whether adverse or beneficial, wholly or partially resulting from an

organization’s environmental aspects (3.1.10)

Note 1 to entry: The lowering of a water table and desertification are examples of environmental impacts from

water use. A change in respiratory capacity is an example of an environmental impact from particulate matter

emissions.
[SOURCE: ISO 14001:2015, 3.2.4, modified— Note 1 to entry has been added.]
3.1.12
environmental impact pathway

series of consecutive, causal relationships, ultimately starting at an environmental aspect (3.1.10) and

ending at an environmental impact (3.1.11)
Note 1 to entry: Related terms are “impact pathway” or “cause-effect chain”.

Note 2 to entry: It can be considered a system of interlinked environmental mechanisms.

[SOURCE: ISO 14008:2019, 3.1.9, modified — “impact pathway” has been added as a related term.]

3.1.13
interested party
stakeholder

person or organization that can affect, be affected by, or perceive itself to be affected by a decision or

activity

EXAMPLE Customers, communities, suppliers, regulators, non-governmental organizations, investors and

employees.

Note 1 to entry: To “perceive itself to be affected” means the perception has been made known to the organization.

[SOURCE: ISO 14001:2015, 3.1.6, modified— The admitted term “stakeholder” has been added.]

3.1.14
reference situation
baseline
current or future state relative to which the assessment (3.1.4) is performed
Note 1 to entry: Examples can be found in B.2.
3.1.15
release
emission to air or discharge to water or soil

[SOURCE: ISO 14040:2006, 3.30, modified — The term has been changed to singular form and “and” has

been changed to “or”.]
© ISO 2019 – All rights reserved 3
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SIST EN ISO 14007:2020
ISO 14007:2019(E)
3.1.16
compliance obligations
legal requirements and other requirements

legal requirements that an organization has to comply with and other requirements that an organization

has to or chooses to comply with

Note 1 to entry: Compliance obligations can arise from mandatory requirements, such as applicable laws and

regulations, or voluntary commitments, such as organizational and industry standards, contractual relationships,

codes of practice and agreements with community groups or non-governmental organizations.

[SOURCE: ISO 14001:2015, 3.2.9, modified — Note 1 to entry has been deleted and Note 2 to entry

renumbered.]
3.2 Environmental economics and finance
3.2.1
use value

monetary value of a good (3.1.3) in relation to its actual, planned or possible use

[SOURCE: ISO 14008:2019, 3.2.5]
3.2.2
non-use value

monetary value of a good (3.1.3) independent of its actual, planned or possible use

[SOURCE: ISO 14008:2019, 3.2.6]
3.2.3
total economic value
net sum of all relevant use values (3.2.1) and non-use values (3.2.2)

Note 1 to entry: Total economic value does not encompass other kinds of values unrelated to human preferences.

[SOURCE: ISO 14008:2019, 3.2.12]
3.2.4
externality
external effect

consequence of an activity that affects interested parties (3.1.13) other than the organization

undertaking the activity, for which the organization is neither compensated nor penalized through

markets or regulatory mechanisms

Note 1 to entry: Current externalities of an organization can cause future issues in terms of dependencies of that

organization.

Note 2 to entry: In this document, whenever “external” is used along with “cost” or “benefit”, it refers to an

externality.
3.2.5
internalization
act of taking into account externalities (3.2.4) in decision-making

Note 1 to entry: This includes, but is not limited to, integration into the accounts as environment-related internal

costs (3.2.13).
3.2.6
environmental benefit
internal or external gain related to the environment

Note 1 to entry: Environmental benefits can be one or both of external environmental benefits (3.2.14) and

environment-related internal benefits (3.2.12).
4 © ISO 2019 – All rights reserved
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...

SLOVENSKI STANDARD
oSIST prEN ISO 14007:2020
01-junij-2020
Ravnanje z okoljem - Smernice za ugotavljanje okoljskih stroškov in koristi (ISO
14007:2019)
Environmental management - Guidelines for determining environmental costs and
benefits (ISO 14007:2019)

Management environnemental - Lignes directrices pour la détermination des coûts et

des bénéfices environnementaux (ISO 14007:2019)
Ta slovenski standard je istoveten z: prEN ISO 14007
ICS:
13.020.20 Okoljska ekonomija. Environmental economics.
Trajnostnost Sustainability
oSIST prEN ISO 14007:2020 en

2003-01.Slovenski inštitut za standardizacijo. Razmnoževanje celote ali delov tega standarda ni dovoljeno.

---------------------- Page: 1 ----------------------
oSIST prEN ISO 14007:2020
---------------------- Page: 2 ----------------------
oSIST prEN ISO 14007:2020
INTERNATIONAL ISO
STANDARD 14007
First edition
2019-10
Environmental management —
Guidelines for determining
environmental costs and benefits
Management environnemental — Lignes directrices pour la
détermination des coûts et des bénéfices environnementaux
Reference number
ISO 14007:2019(E)
ISO 2019
---------------------- Page: 3 ----------------------
oSIST prEN ISO 14007:2020
ISO 14007:2019(E)
COPYRIGHT PROTECTED DOCUMENT
© ISO 2019

All rights reserved. Unless otherwise specified, or required in the context of its implementation, no part of this publication may

be reproduced or utilized otherwise in any form or by any means, electronic or mechanical, including photocopying, or posting

on the internet or an intranet, without prior written permission. Permission can be requested from either ISO at the address

below or ISO’s member body in the country of the requester.
ISO copyright office
CP 401 • Ch. de Blandonnet 8
CH-1214 Vernier, Geneva
Phone: +41 22 749 01 11
Fax: +41 22 749 09 47
Email: copyright@iso.org
Website: www.iso.org
Published in Switzerland
ii © ISO 2019 – All rights reserved
---------------------- Page: 4 ----------------------
oSIST prEN ISO 14007:2020
ISO 14007:2019(E)
Contents Page

Foreword ........................................................................................................................................................................................................................................iv

Introduction ..................................................................................................................................................................................................................................v

1 Scope ................................................................................................................................................................................................................................. 1

2 Normative references ...................................................................................................................................................................................... 1

3 Terms and definitions ..................................................................................................................................................................................... 1

3.1 Organizations and the environment ..................................................................................................................................... 1

3.2 Environmental economics and finance .............................................................................................................................. 4

4 Principles ..................................................................................................................................................................................................................... 6

4.1 General ........................................................................................................................................................................................................... 6

4.2 Accuracy ........................................................................................................................................................................................................ 6

4.3 Completeness ........................................................................................................................................................................................... 6

4.4 Consistency ................................................................................................................................................................................................ 6

4.5 Credibility .................................................................................................................................................................................................... 6

4.6 Relevance ..................................................................................................................................................................................................... 6

4.7 Transparency ............................................................................................................................................................................................ 6

5 Planning ......................................................................................................................................................................................................................... 6

5.1 General ........................................................................................................................................................................................................... 6

5.2 Defining the purpose of determining environmental costs and benefits ............................................. 7

5.3 Determining relevant sources and types of information .................................................................................... 8

5.4 Defining the scope ................................................................................................................................................................................ 8

5.4.1 General...................................................................................................................................................................................... 8

5.4.2 Qualitative assessment ............................................................................................................................................... 9

5.4.3 Quantitative non-monetary assessment ..................................................................................................10

5.4.4 Quantitative monetary assessment ..............................................................................................................10

5.4.5 Distinguishing internal from external environmental costs and benefits...................10

5.4.6 Considerations when determining environment-related internal costs and

benefits ..................................................................................................................................................................................10

5.5 Planning actions to determine environmental costs and benefits ..........................................................11

6 Determining environmental costs and benefits ...............................................................................................................11

6.1 General ........................................................................................................................................................................................................11

6.2 Qualitatively assessing environmental costs and benefits .............................................................................12

6.3 Quantifying environmental costs and benefits in non-monetary terms ............................................12

6.4 Quantifying environmental costs and benefits in monetary terms ........................................................13

6.4.1 General...................................................................................................................................................................................13

6.4.2 Environmental damage costs and environmental benefits......................................................13

6.4.3 Environment-related internal costs and benefits.............................................................................15

6.5 Quality check .........................................................................................................................................................................................18

7 Application, reporting and continual improvement ....................................................................................................18

7.1 Remarks on environmental costs and benefits used in specific applications ...............................18

7.1.1 General...................................................................................................................................................................................18

7.1.2 Cost-benefit analyses ................................................................................................................................................19

7.1.3 Aggregating environmental costs and benefits ..................................................................................19

7.2 Reporting ..................................................................................................................................................................................................20

7.3 Continual improvement ...............................................................................................................................................................20

Annex A (informative) Flow chart on determining environmental costs and benefits .................................21

Annex B (informative) Examples of selected terms and concepts ......................................................................................23

Bibliography .............................................................................................................................................................................................................................25

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oSIST prEN ISO 14007:2020
ISO 14007:2019(E)
Foreword

ISO (the International Organization for Standardization) is a worldwide federation of national standards

bodies (ISO member bodies). The work of preparing International Standards is normally carried out

through ISO technical committees. Each member body interested in a subject for which a technical

committee has been established has the right to be represented on that committee. International

organizations, governmental and non-governmental, in liaison with ISO, also take part in the work.

ISO collaborates closely with the International Electrotechnical Commission (IEC) on all matters of

electrotechnical standardization.

The procedures used to develop this document and those intended for its further maintenance are

described in the ISO/IEC Directives, Part 1. In particular, the different approval criteria needed for the

different types of ISO documents should be noted. This document was drafted in accordance with the

editorial rules of the ISO/IEC Directives, Part 2 (see www .iso .org/directives).

Attention is drawn to the possibility that some of the elements of this document may be the subject of

patent rights. ISO shall not be held responsible for identifying any or all such patent rights. Details of

any patent rights identified during the development of the document will be in the Introduction and/or

on the ISO list of patent declarations received (see www .iso .org/patents).

Any trade name used in this document is information given for the convenience of users and does not

constitute an endorsement.

For an explanation of the voluntary nature of standards, the meaning of ISO specific terms and

expressions related to conformity assessment, as well as information about ISO’s adherence to the

World Trade Organization (WTO) principles in the Technical Barriers to Trade (TBT) see www .iso

.org/iso/foreword .html.

This document was prepared by Technical Committee ISO/TC 207, Environmental management, SC 1,

Environmental management systems.

Any feedback or questions on this document should be directed to the user’s national standards body. A

complete listing of these bodies can be found at www .iso .org/members .html.
iv © ISO 2019 – All rights reserved
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oSIST prEN ISO 14007:2020
ISO 14007:2019(E)
Introduction

Growing economic consequences regarding climate change impacts (in addition to mitigation and

adaption measures), concerns about the global depletion of natural resources and the loss of functioning

ecosystems are resulting in many challenges for organizations and society as a whole. Dependencies

on natural capital (e.g. water, soil fertility, habitats, landscapes) on the one hand and the impact on

the environment on the other hand are important issues for organizations and their interested parties

in terms of strategic, operational or financial consequences along the whole value chain. There is a

need for guidance on practical methods on how to assess and evaluate the economic consequences

of environmental actions. Determining environmental costs and environmental benefits will help

organizations to manage environment-related risks and opportunities.

Environmental costs are any costs related to the environment, which can result from, for example, the

loss of natural capital that companies are dependent on, impacts on human health and the environment

or environmental legislation-related compliance costs. Environmental benefits are any benefits related

to the environment, which can result from, for example, natural resources used within products or the

production processes of a given organization, including their value chain.

Understanding its environmental costs and benefits allows an organization to link environmental

impacts and dependencies to its decision-making processes. This can create a better understanding of

issues, such as the financial implications related to the environmental aspects of a site, the organization

as a whole, or the organization’s supply or value chain. It can improve operational performance, risk

management, investment decisions and corporate communications. Using this document to determine

environmental costs and benefits can help an organization to manage its environmental dependencies

and to mitigate its environmental impacts. It will also help to align an organization’s activities with

national and international environmental goals or agreements.

This document provides organizations with guidance on determining and documenting environmental

costs and benefits in a comprehensive and transparent way, either quantified in monetary or non-

monetary terms, or described qualitatively. Assessments of the environmental costs and benefits can

be carried out either ex-ante or ex-post. Guidance is provided to help organizations to disclose and

exchange relevant information.

If organizations wish to assess environmental costs and benefits in monetary terms, the economic

valuation methods in this document only capture changes that affect human wellbeing (utility), i.e.

it takes a so-called “anthropocentric perspective”, including their concern for, and dependence on,

nature and ecosystem services. This includes use and non-use values as reflected in the concept of total

economic value.

This document is intended for all sizes of organizations and all sectors. It can be applied to private or

listed enterprises, organizations that are held by the public or are a public service unit, those that have

a role as a large global actor or a small and medium-sized enterprise.

This document is suitable for use by managers, accountants, researchers and consultants who want

to determine environmental costs and benefits. The work will require input from several operational

areas that will need to provide relevant information. This document can help in the integration of

financial and non-financial information in order to better inform organizational decision-making.

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oSIST prEN ISO 14007:2020
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oSIST prEN ISO 14007:2020
INTERNATIONAL STANDARD ISO 14007:2019(E)
Environmental management — Guidelines for determining
environmental costs and benefits
1 Scope

This document gives guidelines for organizations on determining the environmental costs and benefits

associated with their environmental aspects. It addresses the dependencies of an organization on the

environment, for example, natural resources, and the context in which the organization operates or is

located. Environmental costs and benefits can be expressed quantitatively, in both non-monetary and

monetary terms, or qualitatively.

This document also provides guidance for organizations when disclosing related information.

This document takes an anthropocentric perspective, i.e. looking at changes that affect human wellbeing

(utility) including their concern for, and dependence on, nature and ecosystem services. This includes

use and non-use values as reflected in the concept of total economic value when environmental costs

and benefits are determined in monetary terms.

The ways in which the environmental costs and benefits are used after they have been determined are

outside the scope of this document.

This document is applicable to any organization regardless of size, type and nature.

2 Normative references
There are no normative references in this document.
3 Terms and definitions
For the purposes of this document, the following terms and definitions apply.

ISO and IEC maintain terminological databases for use in standardization at the following addresses:

— ISO Online browsing platform: available at http: //www .iso .org/obp
— IEC Electropedia: available at http: //www .electropedia .org/
3.1 Organizations and the environment
3.1.1
natural resource
part of nature that provides benefits to humans or underpins human well-being
[SOURCE: ISO 14008:2019, 3.1.5]
3.1.2
product
item or service provided by an organization
3.1.3
good
something that satisfies human wants or needs

Note 1 to entry: A good can be a natural resource (3.1.1), an ecosystem (3.1.8) service, a product (3.1.2) or human

health. It can be marketed or not, or be provided by an organization or not.
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3.1.4
assessment
systematic process of collecting, processing and analysing information
3.1.5
environmental condition

state or characteristic of the environment as determined at a certain point in time

Note 1 to entry: Organizations can be affected by the state of the environment, e.g. through their dependency on

weather-related events or the availability of water or other natural resources (3.1.1).

Note 2 to entry: The stock, flows and quality of renewable and non-renewable natural resources (e.g. plants,

animals, air, water, soils, minerals) that benefit organizations and society are also referred to as “natural capital”.

[SOURCE: ISO 14001:2015, 3.2.3, modified— Notes 1 and 2 to entry have been added.]

3.1.6
environmental dependency
reliance on the use of environmental resources or processes

Note 1 to entry: Expressions similar to “dependency … on the environment” are equivalent.

3.1.7
environmental dependency pathway

causal relationship ultimately starting at an environmental condition (3.1.5) and ending at an effect on

the organization
3.1.8
ecosystem

dynamic complex of plant, animal, and micro-organism communities, and their non-living environment

interacting as a functional entity

EXAMPLE Deserts, coral reefs, wetlands, rain forests, boreal forests, grasslands, urban parks, cultivated

farmlands.
Note 1 to entry: Ecosystems can be influenced by human activity.
[SOURCE: ISO 14008:2019, 3.1.6]
3.1.9
ecosystem service
benefit people obtain from ecosystems (3.1.8)

Note 1 to entry: Ecosystem services are generally distinguished into provisioning, regulating, supporting and

cultural services. Ecosystem services include the provisioning of goods (3.1.3) (e.g. food, fuel, raw materials,

fibre), regulating services (e.g. climate regulation, disease control), and non-material benefits (cultural services)

(e.g. spiritual or aesthetic benefits). The supporting services are necessary for the production of all other

ecosystem services (e.g. soil formation, nutrient cycling, water cycling) and are also referred to as “ecosystem

functions”.

Note 2 to entry: Ecosystem services are sometimes called “environmental services” or “ecological services”.

[SOURCE: ISO 14008:2019, 3.2.11]
3.1.10
environmental aspect

element of an organization’s activities or products (3.1.2) that interacts or can interact with the

environment

Note 1 to entry: An environmental aspect can cause (an) environmental impact(s) (3.1.11). A significant

environmental aspect is one that has or can have one or more significant environmental impact(s).

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Note 2 to entry: Significant environmental aspects are determined by the organization applying one or more

criteria. This process can be referred to as a “materiality assessment”.

[SOURCE: ISO 14001:2015, 3.2.2, modified— “or services” has been deleted and Note 2 to entry has

been extended.]
3.1.11
environmental impact

change to the environment, whether adverse or beneficial, wholly or partially resulting from an

organization’s environmental aspects (3.1.10)

Note 1 to entry: The lowering of a water table and desertification are examples of environmental impacts from

water use. A change in respiratory capacity is an example of an environmental impact from particulate matter

emissions.
[SOURCE: ISO 14001:2015, 3.2.4, modified— Note 1 to entry has been added.]
3.1.12
environmental impact pathway

series of consecutive, causal relationships, ultimately starting at an environmental aspect (3.1.10) and

ending at an environmental impact (3.1.11)
Note 1 to entry: Related terms are “impact pathway” or “cause-effect chain”.

Note 2 to entry: It can be considered a system of interlinked environmental mechanisms.

[SOURCE: ISO 14008:2019, 3.1.9, modified — “impact pathway” has been added as a related term.]

3.1.13
interested party
stakeholder

person or organization that can affect, be affected by, or perceive itself to be affected by a decision or

activity

EXAMPLE Customers, communities, suppliers, regulators, non-governmental organizations, investors and

employees.

Note 1 to entry: To “perceive itself to be affected” means the perception has been made known to the organization.

[SOURCE: ISO 14001:2015, 3.1.6, modified— The admitted term “stakeholder” has been added.]

3.1.14
reference situation
baseline
current or future state relative to which the assessment (3.1.4) is performed
Note 1 to entry: Examples can be found in B.2.
3.1.15
release
emission to air or discharge to water or soil

[SOURCE: ISO 14040:2006, 3.30, modified — The term has been changed to singular form and “and” has

been changed to “or”.]
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3.1.16
compliance obligations
legal requirements and other requirements

legal requirements that an organization has to comply with and other requirements that an organization

has to or chooses to comply with

Note 1 to entry: Compliance obligations can arise from mandatory requirements, such as applicable laws and

regulations, or voluntary commitments, such as organizational and industry standards, contractual relationships,

codes of practice and agreements with community groups or non-governmental organizations.

[SOURCE: ISO 14001:2015, 3.2.9, modified — Note 1 to entry has been deleted and Note 2 to entry

renumbered.]
3.2 Environmental economics and finance
3.2.1
use value

monetary value of a good (3.1.3) in relation to its actual, planned or possible use

[SOURCE: ISO 14008:2019, 3.2.5]
3.2.2
non-use value

monetary value of a good (3.1.3) independent of its actual, planned or possible use

[SOURCE: ISO 14008:2019, 3.2.6]
3.2.3
total economic value
net sum of all relevant use values (3.2.1) and non-use values (3.2.2)

Note 1 to entry: Total economic value does not encompass other kinds of values unrelated to human preferences.

[SOURCE: ISO 14008:2019, 3.2.12]
3.2.4
externality
external effect

consequence of an activity that affects interested parties (3.1.13) other than the organization

undertaking the activity, for which the organization is neither compensated nor penalized through

markets or regulatory mechanisms

Note 1 to entry: Current externalities of an organization can cause future issues in terms of dependencies of that

organization.

Note 2 to entry: In this document, whenever “external” is used along with “cost” or “benefit”, it refers to an

externality.
3.2.5
internalization
act of taking into account externalities (3.2.4) in decision-making

Note 1 to entry: This includes, but is not limited to, integration into the accounts as environment-related internal

costs (3.2.13).
3.2.6
environmental benefit
internal or external gain related to the environment

Note 1 to entry: Environmental benefits can be one or both of external environmental benefits (3.2.14) and

environment-related internal benefits (3.2.12).
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3.2.7
environmental cost
internal or external loss related to the environment

Note 1 to entry: Environmental costs can be one or both of external environmental costs (3.2.15) and environment-

related internal costs (3.2.13).
3.2.8
environmental damage cost

cost of adverse environmental impacts (3.1.11) that are due to an organization’s environmental aspects

(3.1.10)

Note 1 to entry: Environmental damage costs consist of external environmental costs (3.2.15) and environment-

related internal costs (3.2.13).
3.2.9
environmental dependency cost

cost of adverse effects of a change or changes in environmental conditions (3.1.5) on the organization

Note 1 to entry: Environmental dependency costs are part of the environment-related internal costs (3.2.13).

Note 2 to entry: Examples can be found in B.3.
3.2.10
management accounting

process of supplying the managers and employees in an organization with relevant information, both

financial and non-financial, for making decisions, allocating resources, and monitoring, evaluating and

rewarding performance

Note 1 to entry: Management accounting is used for the organization’s internal purposes.

Note 2 to entry: Management accounting is connected to financial accounting (3.2.11) via the so-called

[16]

“management approach”, see the International Financial Reporting Standards (IFRS) framework .

3.2.11
financial accounting

process of classifying, measuring and recording the transactions of an organization, which is primarily

concerned with providing a true and fair view of its activities to external interested parties (3.1.13)

3.2.12
environment-related internal benefit

benefit derived from the environment by an organization that is part of its financial accounting (3.2.11)

and non-financial accounting

Note 1 to entry: Benefits can be derived from, for example, new sources of revenue, a social licence to operate,

product (3.1.2) differentiation and reputational gains.
3.2.13
environment-related internal cost

cost derived from an organization’s environmental aspects (3.1.10) and environmental dependencies

(3.1.6) that is part of its financial accounting (3.2.11) or management accounting (3.2.10)

EXAMPLE Capital and operational expenditures related to environmental taxes or to mitigation measures

for releases that are taken into account in the financial record of the organization.

3.2.14
external environmental benefit

positive externality (3.2.4) due to an organization’s environmental aspects (3.1.10)

EXAMPLE Eradication of invasive non-native species from around a reservoir by a water company, which

provides amenity benefits for the local community.
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oSIST prEN ISO 14007:2020
ISO 14007:2019(E)
3.2.15
external environmental cost

adverse externality (3.2.4) due to an organization’s environmental aspects (3.1.10)

4 Principles
4.1 General

These principles are fundamental and should be followed when planning, conducting, documenting and

reporting the assessment of environmental costs and benefits.
4.2 Accuracy

Accuracy should be aimed for by carefully evaluating sources and data quality, and using appropriate

methods. Bias should be avoided and uncertainty minimized.
4.3 Completeness

All significant information for the intended use should be included, in such a way that no other relevant

information needs to be added, and, to the knowledge of those undertaking the assessment, no

additional information will substantially change the results.

NOTE In this principle, “significant information” refers to an environmental aspect, impact or dependency

that is material to an organization.
4.4 Consistency
Assumptions, methods and data should be, u
...

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