ABSTRACT
Using Unique Images Ltd as a case study, this chapter discusses how ISO 14001 can impact on economic value added, first considering the standard's effect on profits and, second, on the cost of capital. It examines different financial arguments for seeking ISO 14001 certification and recommend the best approach. The chapter draws a distinction between adding/creating value through reduced costs or increased revenue, and conserving/protecting value from future losses. To support a case for implementing ISO 14001, however, there is an element of speculation that the pilot is not a one-off value creator and, of course, environmental aspects would still need to be prioritised with an explicit profit increase objective. Certification to ISO 14001 can suggest reduced environmental risk. However, among lenders there is no systematic or widespread discounting of interest rates, which would reduce the cost of debt on account of reduced environmental risk evidenced by certification, disaggregating ISO 14001 specifications, or by any other means for that matter.
