ISO 14001 EMS in the renewable energy sector: Practices and perceptions in South Africa

Abstract

Historically dependent on fossil fuels, the energy generation landscape in South Africa has begun and will continue to move towards renewable energy. The typical financing arrangements of renewable energy projects in South Africa is such that the sector is subject to environmental, social and governance management requirements. ISO 14001 has shown to improve environmental performance stakeholder and investor assurance, and regulatory compliance and has been the subject of a great deal of research, although less so in South Africa. The objective of this study was to establish the practices and perceptions of ISO 14001 by independent renewable energy developer-operators in South Africa. The research sought to establish the real or perceived drivers for, and barriers against implementation, the benefits that were realised, and criticism of implementation, and finally, the perception and experiences of ISO 14001 certification. Two research methods were employed: a literature review, and semi-structured interviews. Eight independent commercial wind or solar operations (developer-operators) who currently operate, or which will be operational within the next 12 months, were identified and their environmental representatives interviewed. Due to COVID-19 constraints, the interviews were conducted virtually. The results found that organisations, particularly the larger organisations and organisations based in Europe, do implement the Standard, and are ISO 14001 certified. The main drivers for implementation were found to be financial drivers, as a result of lender requirements and shareholder assurance, with organisations benefiting from improved risk and compliance management, streamlined processes, and increased environmental awareness within the organisation. The perceived barriers against implementing ISO 14001 were found to be the administrative and financial implications. Criticism was directed at the ISO 14001 in general, whereby some respondents felt that the Standard was a duplication of existing requirements and offered no value to their organisations. Similarly, the perception and value of certification were generally negative, both as a result of the cost versus benefit of certification and the respondents’ experience of symbolic certification. Although the majority of respondents implemented, and are certified in, the Standard, their opinions and experiences are divided as to the benefits and value of the Standard. This division is further supported by the literature.

The study could have benefited from a larger sample size as interviews were only conducted from relatively narrow selection criteria. Ideally canvasing for such a study could be conducted at industry workshops or conferences which may improve the willingness of organisations to participate. Unfortunately, COVID-19 prevented such engagements. There would be value in conducting further research into the implementation and value of ISO 14001 in emerging renewable energy markets such as India, Brazil, Chile, and Kenya. Future investigation into the performance benefits of the Standard in the renewable energy sector and emerging markets would add be valuable. Additionally, further research into the overlap between lender requirements and ISO 14001 would add value to the body of literature on ISO 14001 going forward.