USGBC LEED Versus ISO 14001

June 14, 2010By

Chris Homko

Table of ContentsTable of Contents..................................................................................................1

Introduction......................................................................................................................2US Green Building Council (USGBC) Leaders in Environmental and Energy Design (LEED)............................................................................................................................2

About...........................................................................................................................2Corporate Membership................................................................................................2Certification.................................................................................................................2Chapter Membership (Individual Membership)..........................................................3Professional Certification............................................................................................3

International Standards Organization (ISO)....................................................................4About...........................................................................................................................4Certification.................................................................................................................4

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IntroductionThe paper is a comparison of the United States Green Building Council Leaders in Environmental and Energy Design certification program and the International Standards Organization 14001 certification.

US Green Building Council (USGBC) Leaders in Environmental and Energy Design (LEED)

AboutFrom: http://www.leedbuilding.org/DisplayPage.aspx?CMSPageID=124

The Washington, D.C.-based U.S. Green Building Council (USGBC) is a 501 c3 non-profit organization committed to a prosperous and sustainable future for our nation through cost-efficient and energy-saving green buildings..

With a community comprising 78 local affiliates, more than 18,000 member companies and organizations, and more than 140,000 LEED Professional Credential holders, USGBC is the driving force of an industry that is projected to contribute $554 billion to the U.S. gross domestic product from 2009-2013. USGBC leads an unlikely diverse constituency of builders and environmentalists, corporations and nonprofit organizations, elected officials and concerned citizens, and teachers and students.

The USGBC is a United States based not-for-profit corporation catering to only to businesses in the United States of America. The USGBC is a privately run corporation that maintains chapters in all 50 US States.

Corporate MembershipMembership in the USGBC is required to obtain certification. Dues are paid annually and vary depending upon the type of organization (See the webpage http://www.usgbc.org/DisplayPage.aspx?CMSPageID=56& for current categories and dues). For governmental agencies, the annual dues are $1000.

CertificationLEED certification is applicable to building construction projects and existing buildings that are undergoing upgrades for efficiency. To submit a project for review, a fee must be paid. The fee charged is $900 per project for a member organization and $1200 per project for a non-member organization. LEED certification is based on a points system. The maximum points that can be achieved are 110 points (100 points plus 10 bonus points). Certification is based on nine categories:Water EfficiencyEnergy and AtmosphereMaterials and Resources

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Indoor Environmental QualityLocations and LinkagesAwareness and EducationInnovation in DesignRegional Priority

There are four levels of LEED certification: Certified, Silver, Gold, and Platinum. The point levels respectively are:Certified: 40 pointsSilver: 50 pointsGold: 60 pointsPlatinum: 80 pointsUpon certification, the member may use the USGBC logo.

Chapter Membership (Individual Membership)The USGBC offers individual certification classes. The individual’s organization need not be a USGBC member to obtain certification. The individual can join USGBC as a Chapter Member rather than a Corporate Member. The cost for a Chapter Membership is an annual fee of $65. Full time students and individuals of USGBC member organizations get discounts of 60% and 30% respectively.

Professional CertificationIndividuals may obtain LEED Professional Credentials. The categories are:

LEED Green Associate $50 application fee, $150/$200 exam fee member/non LEED AP Building Design and Construction LEED AP Homes LEED AP Interior Design and Construction LEED AP Neighborhood Development

There is an application fee and an exam fee for each level. See table below:Fee Type LEED Credential

Associate AP HomesApplication $50 $50 $50Specialty Exam n/a $150 n/aSpec. Exam Non Member n/a $250 n/aExam $150 $300 $250Exam Non Member $200 $450 n/a

All LEED professional certifications must be maintained on a 2 year cycle of continuous education. There is a bi-annual fee of $50. The fee is waived for the first renewal for certain LEED AP’s. Course fees vary greatly from free to about $1400 for multiple day courses.

Member BenefitsCorporate Member benefits range from sharing of green projects to being able to host USGBC classes. Education and training services as well as member forums are available

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for member use. The USGBC trademarks may be used by members and certified projects. View the USGBC trademark policy here on the policies and guidelines page: http://www.usgbc.org/DisplayPage.aspx?CMSPageID=1728 .

From: http://www.usgbc.org/DisplayPage.aspx?CMSPageID=2036

COMMUNITY

An important benefit of working for a USGBC member organization is being part of a community made up of true leaders in their industry and the green building movement. Following are a few of the many ways member organizations can plug into the USGBC community.

USGBC MEMBER FORUM

The USGBC Member Forum is a free, annual event exclusively for employees of member organizations at Greenbuild. The Member Forum offers networking opportunities and updates on important USGBC and green building initiatives. This invaluable experience enables employees of member organizations to connect with their board representatives, USGBC staff and other contributors to the green building community. Attendees get first-hand information about upcoming programs and services, as well as new initiatives and events. They also have the opportunity to connect with peers and share professional experiences. Visit www.greenbuildexpo.org for additional information.

MEMBER CIRCLE EVENTSMember Circle events are held throughout the year as a networking opportunity for specific industry professions. These sessions address the needs and interests of green building professionals from a variety of disciplines and are a great opportunity to connect with peers, stay current with changing industry trends and discover new methods for transforming the built environment. Visit the Member Circle Events page for information about upcoming events and to see photos from past events.

MEMBER TO MEMBER EXCHANGE (M2M)Individuals can connect with colleagues and industry experts in USGBC’s Member to Member Exchange (M2M), a group of online discussion forums for employees of member organizations. Take advantage of this opportunity to share best practices and lessons learned, solve professional issues and make invaluable contacts. Past discussion topics include:• Estimating project administrator labor hours.• LEED Professional Exam preparation.• Product performance and recommendations.

MEMBER UPDATE E-NEWSLETTEREmployees of member organizations are eligible to receive a monthly member e-newsletter highlighting the latest USGBC news and member opportunities,

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including upcoming Member Circle events, member webcasts, membership tips, professional promotions and more.

International Standards Organization (ISO)

AboutFrom: http://www.iso.org/iso/about.htm

ISO (International Organization for Standardization) is the world's largest developer and publisher of International Standards.

ISO is a network of the national standards institutes of 163 countries, one member per country, with a Central Secretariat in Geneva, Switzerland, that coordinates the system.

ISO is a non-governmental organization that forms a bridge between the public and private sectors. On the one hand, many of its member institutes are part of the governmental structure of their countries, or are mandated by their government. On the other hand, other members have their roots uniquely in the private sector, having been set up by national partnerships of industry associations.

Therefore, ISO enables a consensus to be reached on solutions that meet both the requirements of business and the broader needs of society.

The ISO is an international standards organization that is generally organized like the International Air Transport Association (IATA). The ISO is a standards institute that has a central office in Geneva Switzerland for their network of national standards institutes based all over the world. The ISO network is both publically and privately run. The level of each sector involvement is determined by the country in which the chapter resides.

MembershipISO membership is applicable only to standards institutes. There are no corporate (enterprise) or individual memberships. ISO Members have three subcategories: Member Bodies, Correspondent Members, and Subscriber Members. These memberships are categorized by the activity of the organization. Subscriber Members are the least active in ISO whereas Member Bodies are the most active. In the USA, the American National Standards Institute (ANSI) participates as a Member Body.

Corporations and Individuals may join their local ISO Member Organization. In the USA, ANSI governs memberships. There are six categories of ANSI membership:

Company Government Organizational Educational International

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IndividualMembership fees are paid annually. Full membership cost varies on a sliding scale depending upon annual revenue or annual budget of the entity. Basic membership costs $495. Individual membership is $100.

StandardsThe ISO currently lists about 18,000 standards and reports that about 1,100 new standards are published each year. The most popular standards are 9001, quality management systems and 14001, environmental management systems. The ISO sells the standards on their website to interested parties. ANSI states that the cost of purchasing standards varies depending upon membership type. Full members benefit from up to a 20% discount, whereas Basic members benefit from up to a 10% discount. Site licensing of standards is available and can be managed by ANSI (by logging onto their web site) or by the member entity (by placing the PDF documents on their network).

CertificationThe ISO does not provide certification of its standards. This is done by a third party entity. In the USA, the ISO Member Organization ANSI provides certification services. The ANSI National Accreditation Board (ANAB) governs certification of ISO standards in the USA http://www.anab.org/ . The fee schedule varies and starts at $5000 for base standard programs such as 9001 and 14001. View the fee schedule here: http://www.anab.org/documents/fee-schedule.aspx .

Member BenefitsThe ANSI federation currently reports that they represent over 120,000 companies. Members gain access to publications, education and training services, council and committee information as well as sharing standards information with other ANSI members. ANSI full members obtain unlimited ANSI representatives and unlimited access to the ANSI website. Basic members obtain one ANSI representative per membership and limited web site access. Since the ISO does not engage in certification, the use of ISO’s logo is strictly prohibited. Members of ANSI that obtain ANAB certification may use the ANAB logos. Conditions for use of the ANAB name and mark can be found here: http://www.anab.org/documents/accreditation-rules.aspx. Value of certification below from the ANAB website http://www.anab.org/resources/value.aspx :

ISO 9001 and ISO 14001 are among the best known standards published by the International Organization for standardization. These international management system standards have been implemented by more than a million organizations in 175 countries. But many more organizations that could benefit from implementation of management system standards have yet to do so, even though there are compelling reasons to do so.

ISO 9001, ISO 14001, and other management system standards can provide a solid foundation on which to build an organization that can withstand the test of time and challenges of the marketplace. The principles of the standards can help involve and unite employees in working toward a shared goal. And

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implementation of a certified management system can be a source of employee pride and provide a competitive marketing and sales edge.

For a low fee, the standards give organizations proven ideas, techniques, and principles that most could not afford to research on their own. And the immediate and long term benefits of certification can far outweigh the costs. In addition to increasing customer confidence in an organization, an accredited certification can help the organization operate more efficiently.

Recent Research

Here's an overview of some recent research on the impact of management system implementation and certification:

Quality Management and Job Quality: How the ISO 9001 Standard for Quality management Systems Affects Employees and Employers

In this the first large-scale study to examine the effects of ISO 9001 on employee outcomes such as employment, earnings, and health and safety, David I. Levine of the University of California at Bekeley and Michael W. Toffel of the Harvard Business School analyzed a matched sample of nearly 1,000 companies in California. ISO 9001 adopters subsequently had far lower organizational death rates than a matched control group of non-adopters. Among surviving employers, ISO adopters realized higher rates of growth of sales, employment, payroll, and average annual earnings. Injury rates also declined slightly at ISO 9001 adopters, although total injury costs did not. The paper describes implications for managers and public policy. Key concepts include:

Companies that adopt ISO 9001 subsequently grow faster in sales, employment, payroll, and average annual earnings than a matched control group. ISO 9001 adopters are also more likely to remain in business.

ISO 9001 adopters subsequently became more likely to report zero injuries eligible for workers' compensation. However, there is no evidence that a firm's total or average injury costs improved or worsened subsequent to adoption.

Resolving Information Asymmetries in Markets: The Role of Certified Management Programs

Michael W. Toffel of the Harvard Business School conducted one of the first evaluations to determine whether a voluntary management program that features an independent verification mechanism is achieving its ultimate objectives. Using a sample of thousands of manufacturing facilities across the United States, he found evidence that ISO 14001 has attracted companies with superior environmental performance, and that adopters subsequently improve their

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environmental performance.These results suggest that robust verification mechanisms such as independent certification may be necessary for voluntary management programs to mitigate information asymmetries surrounding management practices. Implications are discussed for the industry-associations, government agencies, and the non-governmental organizations that design these programs, the companies that are investing resources to adopt them, and those that are relying on them to infer the quality of management practices.

Survey of ISO 14001 Certified Companies

Researchers at the University of Pennsylvania's Wharton Risk Management and Decision Processes Center found that most of the ISO 14001 certificate holders responding to a national survey reported a relatively quick payback time on their investment. The survey data indicate that doing a thorough job up front in identifying environmental aspects and testing them for improvement leads to the bottom-line benefits that organizations expect from certification. Many organizations experienced a two-year financial payback, and some experienced a one-year return. The impact of internal gains in areas such as employee awareness, management awareness, and management involvement in environmental affairs was even greater, indicating that ISO certification streamlines a facility's management system to produce long-term benefits. The Wharton survey was developed with input from ANAB and QSU Publishing Company. From: ANAB website http://www.anab.org/resources/value.aspx accessed June 25, 2010.

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