ISO, Its Current and Future Work and Examples of Where Standards Assist Trade and Sustainable Development

The International Organization for Standardization (ISO) is the world-leading developer and publisher of international standards, with 161 country members, representing approximately 98% of the world's population and 99% of the world's economy. Full members, including Japan and another 104 countries, have the right to one vote, unlike some other organizations. ISO standards are voluntary, and it is up to the organizations or regulatory authorities in a country to mandate those standards.

There are over 18,000 current standards in the ISO catalogue developed by 208 technical committees, and 3,183 subcommittees and working groups. There are at least nine technical meetings occurring every working day to develop ISO standards somewhere in the world. Just over 1,200 different varieties of standards were published in 2008. Development costs are covered largely by ISO members and technical work participants.

Standardization

Standardization deals with issues including the current financial crisis, climate change and the environment, economic growth and societal issues, new technologies, and restoring consumer confidence. ISO standards primarily provide confidence and act as a tool to facilitate global trade, allow global supply chains to operate, and restore confidence to financial markets in turmoil and economies in recession. They can be an aspiration for sustainable development to balance the need for economic growth, environmental protection and societal equity, and can also help meet the UN Millennium Goals of poverty alleviation and education for all. ISO standards are an effective mechanism to develop one standard with one test applied to it whose results will be accepted around the world.

Standards provide a springboard for new technologies and technology transfer while providing a solid starting point for innovation. These standards provide the opportunity to lock in motivation so that further innovation can be fostered. In addition, international standards help global interoperability.

Another area in which standards provide effective tools is in management and business practice. ISO 9000, the standard on quality management and ISO 14000, the standard on environmental management, are widely accepted throughout the world, with approximately 1 million companies around the world currently using ISO 9001.

Standards can also work in the implementation of public policy. An international standard developed via a consensus process that involves industry, consumers, and government, is more likely to be used because those likely to use the standard have been involved in its development. Regulators may then choose to use standards to support their regulation or may choose to use those standards instead of their regulation. It is important to note that international standards do not in themselves set public policy, that is the role of government.

ISO standards of relevance to Japan

ISO publishes a range of standards in many different areas that are of relevance to the Japanese economy. Standards in the field of industrial engineering include technical drawings, welding, pressure vessels, industrial components, industrial automation, ergonomics, and safety. In the automotive sector, ISO/TC 22 deals with motor vehicles and subcommittee 22 deals with motorcycles. In the ship and marine technology sector, ISO/TC 8 deals with ships and shipping. However, there are ISO standards that deal with the environmental aspects associated with operating ships throughout their life cycle, from design and destruction to recycling, safety and navigation. In the building and construction realm, the use of energy in buildings is an example of major opportunities to reduce energy or improve energy efficiency.

ISO is also able to look at a variety of inter-related challenges such as climate change, human nutrition, energy efficiency, and water issues - all of which are challenges where standardization can and is helping. In addition to environment management standards, there are standards around green house gases, quantification, verification, and validation. A key issue is the voluntary carbon standard, including the Carbon Footprint standard, which is the amount of carbon emitted by a product during its manufacturing, transport, use, and recycling. This is an issue that Japan should be interested in, as consumers are looking more closely at the carbon emitted in the development and transport of products.

ISO also promotes energy and renewable sources. Japan already has a standard on energy efficiency management, but ISO is looking to develop an international standard on the same subject, to be published next year. The national standard is likely to have a big impact on what Japan does in this area. At the international level, the standard is expected to have direct application and effect on the use of 60% of energy used in industrial applications around the world. This will have a significant impact and be a potential area that many people may be looking at upon the end of the Kyoto Protocol and whatever agreement may follow it. In my view, it provides a strong opportunity for a pragmatic guide to energy efficiency in industrial applications. Japan is heavily involved, being a part of ISO/TC 204 intelligent transport systems, the energy efficiency technical committee (ISO/TC 207), and the energy management systems standard. ISO invests an enormous amount of time in climate change and energy efficiency issues. My plea is for Japan to take an even more active role in these important and global issues.

Water is another emerging issue. Japan is a partner member on all of these technical committees, ISO/TC 30, ISO/TC 113, ISO/TC 147, and ISO/TC 244. ISO is also looking at how it might help in the international standardization of water quality, distribution, and efficiency of its use. Water is the scarcest resource in the world, with the potability of useable water being an increasing concern in many countries.

Food, agriculture and nutrition are other areas for which ISO produces standards. Japan is a member on ISO/TC 34 on food products and an observer member on many of the test methods for foods such as seeds, fruits, cereals, milk, meat, poultry, coffee, and tea.

ISO is also engaged in areas involving security, such as ISO/TC223, which deals with societal security and several standards involving the use of biometrics for security purposes have also been developed.

In healthcare, ISO looks at clinical evaluation and the testing of medical devices, clinical laboratories, health and informatics, and quality management and health services. Japan is active in many of these areas, particularly where new technology, such as machinery in the health sector, is involved.

ISO also has standards in the IT area, in particular, joint technical committees with the International Electrotechnical Commission (IEC), in which Japan is an active participant, with secretariats being held and a number of subcommittees existing.

In the service sector, ISO looks at how it can add value. The financial crisis created opportunities for this as it was caused by international factors beyond the reach of many national regulators. In the area of tourism, consumers are becoming more discriminatory, educated and environmentally aware. Services and requirements that a tourist might want is something that I suggest that Japan may want to consider.

ISO looks to make sure that there is involvement from business, industry, regulators, and especially from consumers. A differentiating feature for ISO and other standards bodies and consortia is the involvement of consumers in the development of standards. One of the objectives of the ISO committee on Consumer Policy (COPOLCO) is to channel consumer's views into both current standards projects and proposals for new areas of possible international standardization. Information on labeling, product certification, and soft information such as societal claims, fair trade, ethics, and environmental claims are all considered.

ISO is currently developing a standard on social responsibility, with work taking place in a working group under the technical management board. The idea is to have a common definition of what social responsibility means, as currently one does not exist. It is the intent of ISO to develop a common understanding of what is meant by social responsibility.

Japans' contribution to ISO work

The Japanese Industrial Standards Committee (JISC) has been a member of ISO since 1952 and has been a permanent member of ISO Council since 1969. From 1984 to 1987, and from 1989 to 2011, JISC has been a member of the Technical Management Board (TMB), which is responsible for overseeing and examining proposals for new fields of ISO technical activity and determining if they should be accepted and developed as international standards. It is also a member of the TMB/Risk Assessment Group. It has also been a member of COPOLCO since its inception in 2000 and is on many of the policy development groups of ISO, including Conformity Assessment, Consumer Policy, Developing Countries, and Reference Materials. JISC and Japan are highly involved in ISO, participating in 93% of all active technical committees and subcommittees, and project committees. In 84% of those, they are active participating members, voting on standards that are developed. They hold 58 secretariats, which is 8% of all active secretariats.

Consultation on ISO Strategic Plan 2011 - 2015

ISO is currently beginning the preparation of a new strategic plan covering the period from 2011 to 2015. It is designed to consolidate the foundations that have been built up over the 60 years since the organization's creation, and to look at the new global challenges in a changing world.

Currently ISO is undergoing a consultation program to find out what people want. Under this program, questions regarding 10 key issues are being asked, from the technical scope to management standards, conformity assessments, partnerships, involvement of stakeholders, tools to support public policy, developing countries, education and communication, procedures, processes and deliverables, and ISO Central Secretariat support.

Conformity assessment is an area where ISO needs to be more actively involved in the implementation of standards, making sure that they achieve the effect that the committee intended when it wrote the standard. Another area is in education and communication. The value of standards needs to be better communicated, and ISO needs to do more to raise awareness of standards and the benefits of standardization in all levels of education.

ISO provides opportunities to Japan in direct involvement in standardization and using industry experts in technical committees. Japanese ideas and technologies can thus be put into international standards. This is important because if you are not at the table, you are a standards taker; if you are at the table, you are a standards maker, and you have the opportunity of making sure that what you want in the standard actually goes into the standard.

A second point is that is ISO allows one country one vote. It is important that Japan gets involved in the international standards activity and in the technical committees, so that it has the opportunity to influence, discuss, and talk to other countries, to try and get them to see that what Japan is saying adds value - something they should support and is thus something they should vote for. Another opportunity that ISO provides to Japan is the number of subjects ISO is currently or will soon deal with, that are of direct relevance to Japanese trade.

Unfortunately, standards are not high on the radar, and tend to get focus only when there is a catastrophe. Standardization is seen as technical, boring, and focused on the past. Standardization is a strategic business issue, with direct impact on new product development, and has a direct relationship between leadership in standards and leadership in technology. Standards are never neutral, reflecting the strengths and innovations of those who offer them to the committees. At the macro-economic level, involvement in international standardization and standardization activities can add 1% to the GDP of a country. Considering current growth rates, this is very significant.

The strategic value of standards to the economy is beyond doubt, and the pace and development of international standards is accelerating. The opportunities for an innovative country like Japan to get involved in international standards at ISO should be obvious, and I hope that the large role that Japan already plays will be further enhanced in the future.

I know that Japan and JISC play a huge role in ISO, and that international standards are an area of huge opportunity at the moment, especially in light of the financial crisis and economic turmoil. I hope to see even more involvement from JISC in ISO in the coming years, including involvement in the development of the Strategic Plan 2011-2015.

Q: What do you think of the trade-off between product variety and standardization?

Rob STEELE
At some levels, international standards help variety, as standards tend to be performance based. Standards for the performance of food safety are more about the outcome that must be achieved. Specific things that consumers are looking for are consumer safety or quality. I argue that international standards actually allow for product variety and for innovation.

Q: What is the possibility that the votes of EU member-states will be abolished in favor of a single EU vote being implemented in ISO? Private sector forums tend to be quite transparent, so does ISO have any plans to collaborate with such forums to develop standards?

Rob STEELE
The Vienna Agreement between CEN, the European standards body, and ISO allows European standards to become ISO standards through a consultation phase in ISO. Rather than the world developing the standard, the member states are open to comment on the standard. The member states then vote on whether it should become an international standard. This arrangement works reasonably well, provided that there is transparency from ISO and from the CEN about these standards as they come through the process.

In regards to standards developed transparently, I think there are opportunities to partner with other organizations. We must make sure that the standards or documents that ISO looks to pick up allow great transparency and great involvement from ISO system before they become international standards. ISO should look into methods of implementing standards that work well in the world. However, the standards must still comply with ISO's rules and procedures regarding openness, transparency, inclusion, and the ability of people to have a say in the way in which the document becomes an ISO standard. ISO does not have a monopoly on good ideas or on standards, and there is an opportunity to partner with other organizations.

Q: Regarding financial services, apart from legal activities and accounting practices, what kind of activities would you like to conduct in the framework of the ISO?

Rob STEELE
ISO currently has a number of standards that could be of assistance to the financial sector, including quality management systems and risk assessment. ISO also has some standards that are of direct relevance, which provide guidance to financial advisors, as giving financial advice to consumers has been a source of concern in the past.

An issue currently under consideration is whether ISO could provide a forum where regulators, industry, and consumers could come together to discuss and potentially develop standards which might help from a confidence perspective. If consumers had a better understanding of what was meant by basic financial terms, and there was a common international understanding of those terms, it could be of real value.

ISO is looking to see whether there would be support for a workshop in early 2010 to see if there are areas where it could help. There are opportunities in the realm of consumer and client confidence, without getting involved with government or regulators.

Another thing that regulators look to learn from the financial crisis and fallout is more openness and transparency about the way in which some of the existing standards have been developed. Financial reporting standards have generally been put together by accountants, for accountants, and as a result, are not very well understood by the wider population. The opportunity to provide some greater involvement in the standard making process from regulators and more sophisticated clients or consumers is an area where there could be some value.

Q: Please tell us more details about the future standard of tourism and education. Are there some active discussions in the fields between BRICs and advanced countries?

Rob STEELE
The tourism sector has been very industry-led in terms of standardization. Tourists are becoming more sophisticated. As people travel and become more economically and environmentally aware, there is ample opportunity in the tourist sector for there to be standards. ISO will be meeting with the UN World Tourism Organization to start to increase the collaboration between the two organizations and look to industry to see what else can be done. It is a very controversial area because the accommodation industry is fiercely protective of its ratings systems. There is a consumer view here, however, that is very important.

As for education, areas where there can be standardization include the curriculum of training, increasing awareness at the kindergarten level, right through to post-graduate courses, where standardization and the value of standards can add significantly to a person's degree. Another area is to encourage academia to get more involved in standardization, as it is a good outlet for the results of research and development. Standards should be put together at the national and international level by the top experts that can be gathered to work together to develop best practices. Standardization such as quality management, environmental management, and security can be introduced into universities and schools as a way in which those institutions are run.

Finally, ISO needs to do more on involving developing countries in the process of developing standards. ISO needs to better understand what courses and training are already being provided both by ISO and other organizations, and how ISO and developing countries might work more cooperatively. Secondly, programs rather than projects of work need to be developed. Short-term projects are a waste of time and money because people move on, and a lasting infrastructure is not created. Also, technology should be put to better use in standardization as standardization is something we can offer to developing and to developed countries.

Q: What is your assessment of Japan's contribution to the ISO standard setting exercise compared to the Japanese level of economy and technology? If there is some room for improvement, what would you advise for Japan to improve its contribution?

Rob STEELE
Japan is doing a terrific job in terms of involvement with ISO. Japan is involved in the technical and governance work, and I hope Japan will become more involved in some of the governance of the organization.

However, everyone can always do more, and Japan should ask itself whether it is getting what it needs from its involvement in the technical committees, and should also be looking at the emerging areas that ISO is getting involved in such as the "soft stuff," (i.e. societal standards) and in the link between innovation and standardization. These are areas in which Japan has made it clear that it is strongly interested. An inventory of what Japan thinks is needed in the coming five years and a strategic plan of how this is to be achieved would be very useful.

If Japan had these, the next step would be to make sure that it has the resources to get actively involved, and this involves two components. One is to get the best experts that you can get to attend the technical committee meetings. The value of standards and participation or non-participation needs to be put as clearly as possible. Secondly, Japan must make sure that it has money, because even with e-communication, and other communication methods, there will still be a need to get out and participate in the work, and for experts to step outside of their home countries and organizations to get involved in the standardization process.

Q: What is the most important thing you have learned in the past six months as the new ISO Secretary-General?

Rob STEELE
This is one of the most interesting jobs I can imagine. I get to talk to and listen to people all over the world. ISO should be doing more of what industry, regulators, and consumers want. It is obvious that there is huge value in the work of international standardization and the value that it can bring to trade, and that there are opportunities to make a difference in the way in which we haul ourselves out of the current economic turmoil. There are not too many organizations in the world where people can make a difference as directly as you can by getting involved in international standardization.

Q: Do you have any procedure or process to evaluate or revise your standards? Also, do you have any sort of regulatory reform process at ISO?

Rob STEELE
Yes. Every new work item proposal must be accepted by a minimum number of other ISO members. A proposal needs to touch on why the new standard needs to be developed, the technical management board evaluates the results, and decides whether the standard should be developed or not. I think that the procedure works well, but there are better ways in which the technical management board could do better. It would be good if there were more clarity around the scope of the standard, and some discussion about what we expect the standard to achieve. I think that we could be doing better in qualifying new proposals and looking at it from an outcomes perspective.

NAGANO Juichi
The technical management board is reviewing the process to determine market relevance of a new work item. Regarding the review, it occurs after the first three years, and then every five years after that. For example, the recommendation on the table will be implemented next year, and before that, the purpose of the standard, and economic and societal benefits of the standard will need to be elucidated as criteria for acceptance. Also, five participating members must sign on as initial drafters in order for work to begin, though this number is flexible.