Orion Registrar, Inc. independently analyzed costs of e-Stewards and R2 standards. e-Stewards has the edge in cost savings by as much as 43%. Orion's findings are detailed in this slide presentation and used with permission by Orion.

1. e-Stewards versus R2
Audit Expenses

2. Principles
 Audit Costs are primarily the following components:
 Audit Time
 Audit Day Rate for Audit Time
 Fees
 Travel Expenses
 Fees paid to BAN or R2 Solutions
 This presentation will not deal with Fees and Travel
Expenses in order to simplify the presentation

3. Audit Day Rate
 Audit Day Rate varies between Certification Body to
Certification Body
 The Audit Day Rate for this presentation will be $1,350
per audit day

4. Audit Time Determination
Principles
 To determine the Audit Time, guidance is provided by
IAF Mandatory Document 5 and Integrated Audits is
guidance is provided by Mandatory Document 11
 Each company and site has to be analyzed because
every company and site has different environmental and
health/safety complexities and risks
 Thus each company and site may have different audit
time depending on the specifics of the company and site.
 Please use this presentation examples as a general
examples, ask the Certification Bodies for a specific
quote including the amount of audit time

5. E-Stewards Determination of
Audit Time
 Simply put the Certification Body determines the ISO
14001 (Environmental) Audit time and then add 50% for
the additional e-Stewards time.
 Note the ISO 14001 Audit Time will vary because of the
specifics of the company and site.

6. Determination of R2 Time
 New requirements in R2 Code of Practices
 Round time up to the ½ day, from the calculations for this
presentation there was a 2 to 1 ratio where additional time
was added verses rounding rules.
 Determine the Environmental and Health/Safety Audit Time
(this is more time than used for e-Stewards)
 Time is either ISO 14001 and OHSAS 18001 Time or RIOS Time
 RIOS Time is normally less time than 14001/18001 Time
 Then add time for:
 R2
 Down Stream Vendors
 Campus-additional buildings
 Nonconformance’s
 Companies larger than 100 employees, add 1 day for each
additional 50 employees

7. Logic Cost Examples
 The Initial Cost Examples are for the original certification
which is the Stage 1 and 2 audits
 Surveillances are normally 1/3 the audit time of Stage
1/2 audit time plus the additional time for R2
 Recertification is normally 2/3 the audit time of Stage
1/2 except rounding rules plus the additional time for R2
 The modeling for these examples are simply modeled.
Audit time may be increased or reduced based upon the
specifics of the site.
 The Audit Day Rate used for these examples is $1,350
per day. The Audit Day Rate varies between Certification
Bodies

8. Cost Examples
 Site which has 1 to 5 employees who performs primarily
de-manufacturing:
 R2-ISO 14001/OHSAS 18001
Stage 1/2 Surveillances
Audit Days: 5 Audit Days: 2
Cost: $6,750 Costs: $2,750
 R2-RIOS
Stage 1/2 Surveillances
Audit Days: 4.5 Audit Days: 2.0
Cost: $6,075 Costs:$2,750
 e-Stewards
Stage 1/2 Surveillances
Audit Days: 3.0 Audit Days: 1.0
Cost: $4,050 Costs:$1,350

9. Cost Examples Assumptions
 Assumptions:
 Down Streams: Non R2:1-5
 Single Site/Not a Campus
 3 Minor Nonconformance’s
 Company/site not previously certified to ISO 14001
 Number of employees is the effective number of employees

10. Cost Examples
 Site which has less than 11-15 employees who performs
primarily de-manufacturing:
 R2-ISO 14001/OHSAS 18001
Stage 1/2 Surveillances
Audit Days:7.0 Audit Days: 3.0
Cost: $9,450 Costs: $4,050
 R2-RIOS
Stage 1/2 Surveillances
Audit Days: 6.0 Audit Days: 2.5
Cost: $8,100 Costs: $3,375
 e-Stewards
Stage 1/2 Surveillances
Audit Days:4.5 Audit Days:1.5
Cost: $6,075 Costs: $2,025

11. Cost Example Assumptions
 Assumptions:
 Down Streams: Non R2:1-5, R2:6-10
 Single Site/Not a Campus
 3 Minor Nonconformance’s
 Company/site not previously certified to ISO 14001
 Number of employees is the effective number of employees

12. Cost Examples
 Site which has less than 26-45 employees who performs
primarily de-manufacturing:
 R2-ISO 14001/OHSAS 18001
Stage 1/2 Surveillances
Audit Days: 8.5 Audit Days:3.5
Cost: $11,475 Costs: $4,725
 R2-RIOS
Stage 1/2 Surveillances
Audit Days: 6.5 Audit Days:3.0
Cost: $8,775 Costs:$4,050
 e-Stewards
Stage 1/2 Surveillances
Audit Days: 5.5 Audit Days: 2.0
Cost: $7,425 Costs:$2,700

13. Cost Example Assumptions
 Assumptions:
 Down Streams:R2:6-10 , Non R2:1-5
 Single Site/No Campus
 3 Minor Nonconformance’s
 Company/site not previously certified to ISO 14001
 Number of employees is the effective number of employees

14. Cost Examples
 Site which has 50-85 employees who performs primarily
de-manufacturing:
 R2-ISO 14001/OHSAS 18001
Stage 1/2 Surveillances
Audit Days: 12.0 Audit Days: 4.5
Cost: $16,200 Costs: $6,075
 R2-RIOS
Stage 1/2 Surveillances
Audit Days: 10.0 Audit Days: 4.0
Cost: $13,500 Costs: $5,400
 e-Stewards
Stage 1/2 Surveillances
Audit Days: 7.5 Audit Days: 2.5
Cost: $10,125 Costs: $3,375

15. Cost Example Assumptions
 Assumptions:
 Down Streams: R2:10-15, Non R2:6-10
 Single Site/No Campus
 3 Minor Nonconformance’s
 Company/site not previously certified to ISO 14001
 Number of employees is the effective number of employees

16. Cost Examples
 Site which has 86-100 employees who performs
primarily de-manufacturing:
 R2-ISO 14001/OHSAS 18001
Stage 1/2 Surveillances
Audit Days: 13.0 Audit Days: 5.0
Cost: $17,550 Costs: $6,750
 R2-RIOS
Stage 1/2 Surveillances
Audit Days: 10.5 Audit Days: 4.5
Cost: $14,175 Costs: $6,075
 e-Stewards
Stage 1/2 Surveillances
Audit Days: 8.5 Audit Days: 3.0
Cost: $11,475 Costs: $4,050

17. Cost Example Assumptions
 Assumptions:
 Down Streams:R2:10-15, Non R2: 6-10
 Single Site/No Campus
 5 Minor Nonconformance’s
 Company/site not previously certified to ISO 14001
 Number of employees is the effective number of employees

18. Cost Examples
 Site which has 300 employees who performs primarily
de-manufacturing:
 R2-ISO 14001/OHSAS 18001
Stage 1/2 Surveillances
Audit Days: 21.0 Audit Days: 8.0
Cost: $28,350 Costs:$10,800
 R2-RIOS
Stage 1/2 Surveillances
Audit Days: 17.5 Audit Days: 7.0
Cost:$23,625 Costs:$9,450
 e-Stewards
Stage 1/2 Surveillances
Audit Days:12 Audit Days:3
Cost:$16,200 Costs: $4,050

19. Cost Example Assumptions
 Assumptions:
 Down Streams:R2:15-20, Non R2:10-15
 Single Site/No Campus
 5 Minor Nonconformance’s
 Company/site not previously certified to ISO 14001
 Number of employees is the effective number of employees

20. Conclusions
 e-Stewards Audit Time (Audit Costs) from feedback from
Certification Bodies is a reasonable amount of time
 R2 for the R2:2013 Version has new guidelines for Audit
Time contained in the R2 Code of Practices which is
unproven.
 R2 Audit Time or Audit Costs are more expensive in
every situation