Eddie Stobart: ISO14001 Accreditation

Logistics simply put, is the activity “concerned with the organisation, coordination, and
control of the flow of goods through the supply chain” (Smith et al., 2002). Sustainability can
be defined as conserving an ecological balance by avoiding depletion of natural resources
and damaging the environment (Keiner, 2005). Furthermore, sustainability has become an
increasingly important element for corporate development and service provisioning by
logistics service providers. These firms have a huge social responsibility and being
sustainable offers financial and other intangible benefits as well as it being the right thing to
do. Therefore, logistics firms need to follow sustainable practices (Dey et al., 2011).

In this blog, a feasibility analysis will be carried out on Eddie Stobart Logistics, as to
whether they should get ISO14001 accreditation within the next 1 to 5 years. ISO14001 is
the international standard for environmental management systems and maps out a
framework that a company or organisation can follow to set up an effective environmental
management system (Alan Boswell Group, 2021). Eddie Stobart is a third-party logistics
company, as they provide multiple, integrated logistics services for customers, such as,
transporting and warehousing (Maersk, 2022). They operate in the UK and have sites in
Europe also. For this assignment, the scope of analysis will specifically be focused on their
operations in the UK.

According to many sources of research (as shown in the appendix), Eddie Stobart have not
already gained accreditation for ISO14001.

Commitment to Tackling Environmental Issues

To gain accreditation for ISO14001, one thing that businesses are required to show, is a
commitment to tackling environmental issues (González‐Benito and González‐Benito, 2005),
such as reducing their carbon footprint, using sustainable energy, and producing less waste
(Omer, 2008).

Eddie Stobart is forward looking in regards to the environment, and have shown their
commitment to tackling environmental issues in many ways. In 2021, Stobart won the “Coop Environmental & Sustainability Warriors Award”, awarded to “the Co-op supplier who
has inspired change and delivered a project that has positively impacted the planet and
promoted best practice” (Eddie Stobart, 2022). This came after Stobart’s active partnering
with the Co-op throughout 2021, with the aim of their joint operations to become more
sustainable, specifically through improved carbon efficiency management (Eddie Stobart,
2022). According to Niemoller (2019), carbon management is becoming of increased
importance to businesses due to the benefits it provides both for the environment (through
better understanding and usage of carbon) and the business itself (through better brand
image for example). This carbon efficiency management was enforced through
implementation of specific initiatives which enabled measurement of their environmental
impact and efficiency, whilst also reducing their carbon footprint (Eddie Stobart, 2022),
which will positively affect the current global warming issue (Al-Ghussain, 2019).

Also, Stobart made an official commitment to set science-based targets to reduce carbon
emissions, and this will provide them with the accountability framework needed to reduce
their carbon footprint. The initiative defines, showcases, and promotes best practice on
setting science-based targets to reduce emissions, and independently assesses and
approves targets set by committed companies (Andersen et al., 2021). Stobart is the first
major UK logistics provider to join the Science-Based Targets initiative (SBTi) and according
to their roadmap, are looking to be approved within the next year (Eddie Stobart, 2022). All
of this is evidence that they are making efforts in tackling environmental issues and this is
therefore a step in the right direction for ISO14001 accreditation, specifically within the next
1 to 5 years.

Having said that, there is room for improving for Eddie Stobart in showing their
commitment to tackling environmental issues. Firstly, in 2009, Stobart started using rail to
transport goods (McKie, 2009). This was a great initiative to tackle environmental issues (NI
Business Info, 2019), and it is said that “in a year, one weekly rail trip will stop 8,600 tonnes
of carbon being pumped into the atmosphere” (Stobart, 2009). However, according to
Railnews (2020), Stobart sold its rail division to a German company, and this was done to
concentrate on air transportation of goods. This therefore is a step in the wrong direction
for Stobart in regards to tackling environmental issues, as a move to air freight from rail will harm the environment due to air freight leaving a larger carbon footprint compared to rail
and water freight for example (Kennemer, 2020), backed up by figure 1.

Figure 1

Source: International Energy Association (2014).

Therefore, to move towards gaining accreditation for ISO14001, Stobart should really
consider using rail freight instead of road (Stobart’s main transport (Eddie Stobart, 2022))
and air, due to the lowered carbon emissions (NI Business Info, 2019). They should also
consider using water freight as part of their operations. Even though this type of transport
can take longer, water freight is 99.9% reliable and provides a lower carbon footprint
compared to other transport modes (Cullinane, 2014). This could be implemented by firstly
utilising intermodal transport and then possibly fully changing to rail and water freight in the
future.

Overall, after looking deeper into how Eddie Stobart is showing a commitment to tackling
environmental issues, after a few changes to their operations, they should achieve
ISO14001 accreditation within the next 1 to 5 years. They currently have policies and
commitments in place that show they want to become more environmentally friendly,
which is in line with the specific requirements needed to be accredited. Therefore, if they
maintain their current sustainability policies and make changes to their modes of transport
(such as a change to rail or water freight from road and air), their operations will be majorly
benefitted in an environmental sense and will aid them in gaining accreditation in the next 5
years.

Advantages and Disadvantages of ISO 14001

By looking at the advantages and disadvantages of ISO14001, it can be identified whether
Eddie Stobart should look to gain ISO14001 accreditation or not, depending on their specific
business situation and how the accreditation would fit into their operations.

According to Kilburn (2020), a benefit of ISO14001 for logistics companies is that it can make
them more sustainable, more efficient, and more competitive, which consequently can
increase market share. Starting with becoming more sustainable, according to ISO (2015),
ISO14001 requires the setting of environmental objectives and targets, and regular
monitoring and measurement of all operational activities, and in turn this improves
environmental awareness and minimizes the adverse impacts on the environment (Psomas
et al., 2011). An example of this would be for Stobart to set a target to improve the
sustainability of transport they use, such as a change from road to rail and sea (which was
previously stated), while monitoring it.

Regarding efficiency, Psomas et al. (2011), also suggests that ISO14001 leads to an
“improvement of standardisation in environmental management”. Therefore, management
of environmental matters can remain the same from company to company so long as they
have accreditation. From this standardised environmental management, efficiency is gained
as there is only one standard to follow, to be considered environmentally friendly. Efficiency
is also gained through the use of sustainable energy (Centobelli et al., 2018), which is in line
with the ISO14001 requirements (ISO, 2015). Overall, if Stobart is to become more
sustainable while also being more efficient throughout their business operations, they
should gain ISO14001 accreditation. This will push them towards furthering their current
sustainable efforts such as their SBTi commitment (Eddie Stobart, 2022).

Eddie Stobart is already a large and competitive firm, but as previously stated, Kilburn
suggested that gaining ISO14001 accreditation can make companies more competitive.
Chavan (2005) states that many large businesses have already gained accreditation, and
large businesses are more likely to realise the benefits of it compared to SMEs. An example
of this is DPD (a competitor of Eddie Stobart) who saw increased revenues after becoming
ISO14001 accredited. Shown in Figure 2. One competitive benefit of ISO14001 is that it
would provide Stobart with an environmentally friendly brand image (Chin et al., 1999)
which is something they struggle to have, being a logistics company that relies on the use of
operations that release carbon emissions. Also, an improvement in brand image can also
mean an improvement in market and firm performance, as well as gaining a competitive
advantage (Lopez-Rodriguez). ISO14001 can also show a transition from conventional to
sustainable practices which could improve Stobart’s relationship with society (Psomas et al.,
2011), which subsequently can improve a company’s market share and profitability (Chin et
al., 1999). Finally, Stobart has many large competitors such as DPD, Penske and Wincanton
(Owler, 2022), who all have gained ISO14001 accreditation, and Stobart not being
accredited could be portrayed as a negative by their customers and could compromise their
competitiveness.

Figure 2

Source: Placek, 2022.

Now looking at the disadvantages of ISO14001. To gain accreditation, top management
commitment is needed (ISO, 2015), and there are many cases in the world of business,
where there has been struggles of commitment and communication throughout an
organisation (Psomas et al., 2011). Also, according to Marsh (2012), being ISO14001
accredited can mean a lack of transparency with environmental targets and audits, as the
only element of it that is made public is the environment policy statement. However, these
two issues are already being counteracted by Stobart to some extent. They have shown
commitment from top management through policies they have in place and these policies
are open for anyone to see via their website. Policies include the SBTi, and they have
received awards for their sustainability efforts.

Overall, gaining ISO14001 accreditation can be considered a lengthy and expensive process
(Turk, 2009), but Eddie Stobart is already avoiding the negatives to an extent. Therefore, in
their case, the benefits of ISO14001 do outweigh the negatives, and they should look to gain
accreditation in the next 1-5 years, and they will operate at a high level if they continue to
have commitment from top management and continue their sustainability efforts.

ISO 14001s Strategic Importance for Eddie Stobart’s Business Development

For Eddie Stobart’s business development, it can be considered of strategic importance to
gain ISO14001 accreditation. However, there are arguments that suggest ISO14001
accreditation doesn’t hold much strategic importance to Stobart.

On one hand, gaining accreditation is of strategic importance to Stobart’s business
development for many reasons. Firstly, gaining the accreditation is a clear indication that
your business is engaging in sustainable operations. Sebhatu and Enquist (2007) suggest
ISO14001 is soon to become one of the most widely accepted environmental standards in
business, and therefore, if Stobart were to gain accreditation, their brand image in the
business world would improve and therefore create value for the business (Išoraitė, 2018).
Stobart already has sustainability goals in place but having this accreditation will make
people more aware of their environmental approach. Also, as previously stated, many
competitors of Stobart are ISO14001 accredited and a major reason for a business to gain
accreditation is because a competitor has gained it and shows success (Curkovic and Sroufe,
2011). Therefore, they should look to imitate them to not miss out on potential returns
(such as DPDs revenues shooting up after getting accreditation in 2019 (DPD, 2022), shown
in figure 2), especially as the world is heading more towards sustainability everyday (Kolk,
2003).

However, on the other hand, ISO14001 accreditation may not be considered of strategic
importance for Eddie Stobart’s business development. They do already have many
sustainability policies in place, and pride themselves on this by stating that their “carbon
emissions are already 10% lower than the rest of the logistics sector” (Eddie Stobart, 2022).
This shows that even without accreditation, companies can still be sustainable. Also,
Vanguard Consulting Ltd (2020) state that quality standards (such as ISO9000) are merely a
form of control that encourages managers to manage in a way that undermines
performance and damages quality. Vanguard Consulting Ltd (2020) also questioned why
Eddie Stobart doesn’t have ISO9000 accreditation, with the answer stating that they
believed they already had good systems in place and put the customer first. This could be
thought in the same way for ISO14001.

Nevertheless, even though Eddie Stobart can still be sustainable without the accreditation,
gaining the accreditation will accelerate their sustainability policies and provide other future
benefits (Kilburn, 2020). Therefore, they should gain ISO14001 accreditation as it is of
strategic importance to their business development. Specifically due to the accreditation
being widely accepted, subsequently improving overall relations for the business.

To conclude

In conclusion, after completing a feasibility analysis on the elements above, Eddie Stobart
can gain ISO14001 accreditation and should definitely go for it as the positives do outweigh
the negatives.

They do currently have sustainability achievements and goals in place (such as the SBTi),
that show a commitment from top management to be sustainable. That, along with changes
in transport modes (such as using rail and sea more) within the next 1 to 5 years will assure
accreditation on their part. Whether or not they should go for it, depended on the last two
elements researched. The advantages of ISO14001 outweigh the disadvantages mainly due
to the possible improvements in both a sustainable and competitive sense, while Stobart
are already counteracting the possible disadvantages. Finally, in a strategic sense, gaining
accreditation makes sense because it provides a clear sustainability strategy that can
develop many facets of Stobart’s business such as being widely seen as a sustainable
company and keep up with the industry. And that is why Eddie Stobart Limited should get
ISO14001 accreditation within the next five years.

References

Alan Boswell Group, 2021. Guide to ISO 14001 and environmental management. Available
at: Guide to ISO 14001 | Alan Boswell Group [Accessed: 22 April 2022].
Al‐Ghussain, L., 2019. Global warming: review on driving forces and
mitigation. Environmental Progress & Sustainable Energy, 38(1), pp.13-21.
Andersen, I., Ishii, N., Brooks, T., Cummis, C., Fonseca, G., Hillers, A., Macfarlane, N.,
Nakicenovic, N., Moss, K., Rockström, J. and Steer, A., 2021. Defining ‘science-based
targets’. National Science Review, 8(7), p.nwaa186.
Centobelli, P., Cerchione, R. and Esposito, E., 2018. Environmental sustainability and energyefficient supply chain management: A review of research trends and proposed
guidelines. Energies, 11(2), p.275.
Chavan, M. (2005), “An appraisal of environment management systems: a competitive
advantage for small businesses”, Management of Environmental Quality: An International
Journal, Vol. 16 No. 5, pp. 444-63.
Chin, K.S., Chiu, S. and Tummala, V.M.R. (1999), “An evaluation of success factors using the
AHP to implement ISO 14001-based EMS”, International Journal of Quality & Reliability
Management, Vol. 16 No. 4, pp. 341-61.
Cullinane, S., 2014. Mitigating the negative environmental impacts of long haul freight
transport. In Sustainable logistics. Emerald Group Publishing Limited.
Curkovic, S. and Sroufe, R., 2011. Using ISO 14001 to promote a sustainable supply chain
strategy. Business Strategy and the Environment, 20(2), pp.71-93.
Dey, A., LaGuardia, P. and Srinivasan, M., 2011. Building sustainability in logistics operations:
a research agenda. Management Research Review.
DPD, 2022. What ISO certifications does DPD have? Available at: What ISO certifications
does DPD have? – DPD GERMANY [Accessed: 4 May 2022].
Eddie Stobart, 2022. About Stobart. Available at: About us – Eddie Stobart Logistics
[Accessed: 20 April 2022].
Eddie Stobart, 2022. Corporate Social Responsibility. Available at: Corporate social
responsibility – Eddie Stobart Logistics [Accessed: 20 April 2022].
Eddie Stobart, 2022. Latest News. Available at: News and Insights – Eddie Stobart Logistics
[Accessed: 20 April 2022].
Eddie Stobart, 2022. STOBART TO BECOME FIRST MAJOR UK LOGISTICS PROVIDER TO SET
SCIENCE-BASED TARGETS TO REDUCE CARBON EMISSIONS. Available at: Stobart to become
first Major UK Logistics Provider to set science-based targets to reduce carbon emissions. –
Eddie Stobart [Accessed: 20 May 2022].
BS3007 1989287
14
Eddie Stobart, 2022. STOBART WINS KEY ENVIRONMENTAL AND SUSTAINABILITY AWARD.
Available at: Stobart Wins Key Environmental and Sustainability Award – Eddie Stobart
[Accessed: 23 April 2022].
ISO, 2015. ISO 14001. Geneva: ISO.
Išoraitė, M., 2018. Brand Image Theoretical Aspects. Integrated journal of Business and
Economics, 2(1), pp.116-122.
Keiner, M., 2005. History, definition (s) and models of sustainable development. ETH Zurich.
Kennemer, 2020. Air Freight vs. Sea Freight Carbon Footprint // Environmental Impact of
Shipping. Available at: Air Freight vs. Sea Freight Carbon Footprint // Environmental Impact
of Shipping – Sourcing Hub [Accessed: 27 April 2022].
Kilburn, S. 2020. The Benefits Of ISO 14001 For Freight And Logistics Companies. Available
at: The benefits of ISO 14001 for freight and logistics companies – Synergos Consultancy
[Accessed: 26 April 2022].
Kolk, A., 2003. Trends in sustainability reporting by the Fortune Global 250. Business
strategy and the environment, 12(5), pp.279-291.
Lopez-Rodriguez, S. (2009), “Environmental engagement, organizational capability and firm
performance”, Corporate Governance, Vol. 9 No. 4, pp. 400-8.
Maersk, 2022. Breaking down the layers of Party Logistics. Available at: Party logistics |
Maersk [Accessed: 1 May 2022].
Marsh, J., 2012. ISO 14001: Analysis into its strengths and weaknesses, and where potential
opportunities could be deployed for tomorrows Global Business. International Journal of
Environmental, Cultural, Economic, and Social Sustainability, 6(3), pp.23-36.
McKie, R. 2009. Eddie Stobart goes green to bring in Spanish fruit and vegetables by rail. The
Guardian 25 October. Available at: Eddie Stobart goes green to bring in Spanish fruit and
vegetables by rail | Travel and transport | The Guardian [Accessed: 26 April 2022].
NI Business Info, 2019. Reducing your vehicle emissions. Available at: Reduce the
environmental impact of transport logistics | nibusinessinfo.co.uk [Accessed: 26 April 2022].
Niemoller, J. 2019. 5 Benefits of Carbon Management. Available at: 5 Benefits of Carbon
Management (perillon.com) [Accessed: 24 April 2022].
Omer, A.M., 2008. Energy, environment and sustainable development. Renewable and
sustainable energy reviews, 12(9), pp.2265-2300.
Owler. 2022. Eddie Stobart Competitors or Alternatives. Available at: Eddie Stobart
Competitors and Alternatives – Owler [Accessed: 29 April 2022].
Psomas, E.L., Fotopoulos, C.V. and Kafetzopoulos, D.P., 2011. Motives, difficulties and
benefits in implementing the ISO 14001 Environmental Management System. Management
of Environmental Quality: An International Journal.
BS3007 1989287
15
Railnews, 2020. Stobart leaves rail to concentrate on air in £1,000 sale. 15 July. Available at:
Stobart leaves rail to concentrate on air in £1,000 sale | Railnews | Today’s news for
Tomorrow’s railway [Accessed: 26 April 2022].
Sebhatu, S.P. and Enquist, B., 2007. ISO 14001 as a driving force for sustainable
development and value creation. The TQM Magazine.
Smith, R., Mandal, P. and Kuruppuarachchi, P.R., 2002. IT project implementation strategies
for effective changes: a critical review. Logistics information management.
Turk, A.M. (2009), “ISO 14000 environmental management system in construction: an
examination of its application in Turkey”, Total Quality Management & Business Excellence,
Vol. 20 No. 7, pp. 713-33
Vanguard Consulting Ltd. 2020. ISO9000 and quality. Available at: Microsoft Word –
Vanguard Articles – ISO9000 and quality (beyondcommandandcontrol.com) [Accessed: 4
May 2022].

Figures

Figure 1 – International Energy Association, 2014. Summary for Policymakers. Available at:
Global Greenhouse Gas Emissions by the Transportation Sector | The Geography of
Transport Systems (transportgeography.org) [Accessed: 4 May 2022].
Figure 2 – Placek, M. 2022. Revenue of DPD worldwide 2017-2021. Available at: • Revenue
of DPD worldwide 2017-2021 | Statista [Accessed: 4 May 2022].