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Informativa ai sensi degli articoli 13 e 14 del Regolamento UE n. 2016/679 (“GDPR”) Ultimo aggiornamento: 06.03.2019.
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To continue using the site you need to read the revised version and agree to the policies
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To continue using the site you need to read the revised version and agree to the policies
Informativa ai sensi degli articoli 13 e 14 del Regolamento UE n. 2016/679 (“GDPR”) Ultimo aggiornamento: 06.03.2019.
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Most Malaysian companies do not need ISO 14001 or ISO 14064 certification by law, but they may need one of them if a customer, tender, lender or export market asks for it. ISO 14001 certifies an environmental management system, while ISO 14064 provides the rules for measuring greenhouse gas emissions, which can then be independently verified.
The question comes up more often as ESG expectations rise. Large corporate customers ask suppliers for environmental credentials, banks review environmental risk, and listed companies preparing for the National Sustainability Reporting Framework (NSRF) need credible emissions data to feed their own reports. Certificates look like a quick answer, but they cost money and management time, and they do not automatically satisfy every request. This article explains what each standard does, how certification and verification differ, when a Malaysian business genuinely needs one, the cheaper alternatives, where an ESG consultant adds value, and where experts disagree. Requirements are set by individual customers, regulators and certification bodies, and they change, so confirm current terms before committing.
ISO 14001 is an international standard for an environmental management system (EMS), a structured way of identifying environmental impacts, meeting legal obligations and improving performance over time. Certification means an accredited third party has audited the system and confirmed it meets the standard.
An organisation must define its scope, identify environmental aspects and legal requirements, set objectives, assign responsibilities, train staff, monitor performance, conduct internal audits and review results at management level. The standard focuses on having a working process, not on achieving a specific level of environmental performance. The 2015 edition was amended in 2024 to add climate-change considerations, so check which version a customer expects.
A company engages a certification body, which carries out a stage-one document review and a stage-two on-site audit, then issues a certificate typically valid for three years with surveillance audits in between. Companies should check that the certification body is accredited by the Department of Standards Malaysia or by an accreditation body recognised internationally, since customers may not accept certificates from unaccredited providers.
ISO 14064 is a family of standards for quantifying, reporting and verifying greenhouse gas emissions and removals. It does not certify a management system, so a company holds an emissions inventory and, if desired, a verification statement from an independent verifier.
ISO 14064-1 sets requirements for organisation-level greenhouse gas inventories, ISO 14064-2 covers project-level quantification of emission reductions or removals, and ISO 14064-3 provides rules for validation and verification of greenhouse gas statements. A company reporting its Scope 1, 2 and optionally Scope 3 emissions would mainly use Part 1, with Part 3 guiding any independent verification.
Strictly, it is usually verification, where an independent body provides assurance that the stated emissions are fairly presented, not certification of a management system. In everyday conversation, people often say "ISO 14064 certified," but customers and lenders generally want to see a verification statement and the underlying inventory. Clarifying the exact deliverable avoids confusion when requesting quotes.
Generally no. Malaysian law does not require most companies to hold ISO 14001 or ISO 14064 certification, and the NSRF is built on the ISSB standards (IFRS S1 and S2) instead of ISO standards. Requirements arise mainly from contracts, tenders and market access.
Companies must still comply with environmental laws such as the Environmental Quality Act 1974 and related regulations, including permits for emissions, effluent and scheduled waste. An ISO 14001 system can help manage these duties, but certification is not a substitute for legal compliance.
No. Listed companies must prepare sustainability statements based on IFRS S1 and S2 in phases, and assurance expectations are developing separately. A GHG inventory prepared using ISO 14064-1 or the GHG Protocol can support those disclosures, but the listing requirements do not demand an ISO certificate.
A company needs certification when a customer contract, tender specification, financing condition or export requirement explicitly asks for it. Without such a trigger, many firms can meet expectations through documented systems, data and a credible report.
Common triggers include supplier requirements from multinational customers, public-sector or large private tenders in construction and manufacturing, and group-wide standards in multinational companies. Some sectors, such as automotive, electronics and construction materials, ask for it more frequently. Always request the written requirement from the buyer.
Common triggers include customer or investor requests for verified emissions data, preparation for assurance of sustainability disclosures, carbon-related claims that need independent support and participation in carbon credit projects. Exporters facing carbon-related border measures may also be asked for verified emissions data for specific products, which can require product-level methods beyond an organisational inventory.
ISO 14001 shows that a management system exists, ISO 14064 supports credible emissions numbers, and alternatives such as the GHG Protocol and self-declared systems can meet lighter requirements. The table sets out the differences.
|
Aspect |
ISO 14001 |
ISO 14064 |
Alternatives (for example GHG Protocol, internal system) |
|
Purpose |
Manage environmental impacts systematically |
Quantify, report and verify GHG emissions |
Measure and report without formal certification |
|
Outcome |
Certificate, usually for three years |
Inventory plus optional verification statement |
Internal report or customer questionnaire |
|
Typical cost and effort |
Highest: system, audits, maintenance |
Moderate: inventory and verification fees |
Lowest: staff time and tools |
|
Best when |
Customers or tenders require it |
Credible emissions data is requested |
Requests are informal or early stage |
Often yes. The GHG Protocol is the most common method for corporate inventories, and many customers accept it. ISO 14064-1 is broadly consistent with it, so a company can start with the GHG Protocol and move to ISO 14064 verification if a customer requires it. Always confirm which method the requester accepts.
Yes. A company can build a documented environmental policy, a register of legal requirements, basic monitoring and internal audits, and maintain a Scope 1 and 2 inventory. This provides most of the practical benefit and prepares the company if certification becomes necessary later.
Certification costs include consultant support (if used), certification body fees, internal staff time and ongoing surveillance audits, while benefits include market access, discipline in managing legal compliance and credibility with customers. Costs vary widely with company size, number of sites and readiness.
Companies report better control over compliance, fewer incidents, energy and waste savings, easier responses to customer audits and improved confidence from lenders and buyers. These benefits are strongest where the system is used in daily operations, not maintained only for audits.
Drawbacks include paperwork burden, recurring audit costs and the risk of treating certification as a badge without operational change. A certificate also does not guarantee strong environmental performance, since the standard focuses on process.
A business needs an experienced ESG consultant such as Wellkinetics when it must decide whether certification is worth the cost, build an emissions inventory to ISO 14064 standards, prepare for audits or integrate environmental systems with broader ESG reporting. For simple needs and strong in-house capability, a consultant may not be necessary.
An ESG consultant can review customer requirements, run a gap assessment against ISO 14001 or ISO 14064, design documentation and data systems, train staff and prepare the company for the certification body's audit. A good ESG consultant will also advise when certification is unnecessary and a lighter approach is enough.
Keep the roles separate: the consultant helps you prepare, while the certification or verification body must remain independent and cannot design your system. Request itemised quotes, check accreditation and ask for references from similar companies.
No. Opinions differ on whether certification delivers enough value for the cost, especially for smaller firms. Each view has a basis.
Supporters argue that certification provides structure, independent confirmation and a recognised credential that opens doors with large buyers. They also say it reduces the burden of repeated customer audits.
Sceptics argue that certification can become a paperwork exercise, that costs fall hard on small companies and that it does not prove good environmental outcomes. They suggest that many customers would accept simpler evidence if asked.
The practical middle ground is to build the underlying system and data first, then certify when a specific commercial need justifies the cost. This keeps options open while avoiding unnecessary spending.
No, not as a general legal requirement. It becomes necessary only if a contract, tender or customer requires it.
No. ISO 14064 supports measuring and verifying emissions, while carbon neutrality claims depend on separate rules and offsetting practices. Verified emissions do not mean the company is carbon neutral.
It depends on readiness. Smaller organisations with organised records may take a few months to prepare, while larger or multi-site organisations take longer.
Yes, but it should weigh the cost against the commercial benefit. Some small firms start with a simplified system and certify later if a buyer requires it.
Not always. Companies with capable internal teams can prepare themselves, but an ESG consultant helps with complex scope, tight timelines or integration with ESG reporting.
Certification is a response to a specific demand, not a default requirement: check what your customers, lenders and tenders actually ask for, build the underlying system and data first, and use an experienced ESG consulting firm where expertise adds clear value.
The debate about the worth of certification will continue, and both supporters and sceptics make fair points. For most Malaysian businesses, the sensible route is proportionate: measure emissions with a recognised method, manage environmental compliance with a documented system and pursue ISO 14001 or ISO 14064 verification only when a real commercial reason appears. A company that keeps accurate records, avoids overstated claims and engages an ESG consultant selectively will be ready whichever way requirements move.
This article is for general information only and is not legal, financial or regulatory advice. Standards, accreditation arrangements and customer requirements change, so verify current details with the relevant bodies and your customers.
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