ESM 210 Strategic Environmental Management

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ESM 210Strategic Environmental Management

• Environmental Management Systems
• ISO 14001
• Magali Delmas

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What is an Environmental Management System?

• The organizational structure, responsibilities,
  practices, procedures, processes and resources
  for determining and implementing environmental
  policy British Standards Institute (1994)

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1996 ISO 14001

• Growth of national and regional standards for
  environmental management systems
• BS 7750 (1992) and EMAS (1993)
• Such national or regional standards could become
  a barrier to trade
• ISO 14001 developed on the model of the ISO 9000
  total quality management standard (issued in
  1987)

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International Standard Organization

• Worldwide federation of national standards bodies
  from more than 140 countries, one from each
  country (1947)
• ANSI, BSI, AFNOR, DIN, SAC (china)
• The technical work of ISO is carried out in some
  2 850 technical committees and working groups.
• With representatives of industry, research
  institutes, government authorities, consumer
  bodies, and international organizations (some 30
  000 experts participate in meetings each year).

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The ISO 14000 series

• 14001 (1996) EMS that can be certified
• 14004 EMS guidelines
• 14010 Environmental auditing general principles
  guidelines
• 14011 Environmental auditing auditing procedures
  guidelines
• 14012 Environmental auditing qualification
  criteria for environmental auditors
• 14024 Environmental labeling guiding principles
• 14030 Environmental performance standard
• 14040-43 Life cycle assessment general principles
• 14060 Guide for the inclusion of Environmental
  aspects in product standards

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Number of ISO 14001 certificates Worldwide
7
Number of countries with ISO 14001 certifications
8
Components of an ISO 14001 EMS
Environmental Policy
Define policy and ensure commitment to EMS
Management Review
Planning
Continual improvement of EMS and Env Perf
Formulation of a plan to fulfill environmental
policy
Checking Corrective Action
Implementation Operation
Measurement and evaluation of environmental
performance
Objective and targets
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1. Commitment policy

• Define environmental policy and ensure commitment
  to EMS
• In addition to compliance with env regul policy
  can state
• Minimize any significant adverse env impact of
  new developments through the use of the
  integrated env mgt procedures
• Development of en perf evaluation procedures
• Education and training
• Sharing environmental experience
• Involvement and communication with interested
  parties
• Work toward sustainable development etc

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Shell 1997

• By far our biggest contribution to sustainable
  development will come from delivering the energy
  needed for development without pollution levels
  that damage health or threaten vital natural
  systems. With energy demand set to double or even
  triple by 2050, mainly because of exploding
  demand in the developing world, this is a
  daunting challenge

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2. Planning

• An organization should formulate a plan to
  fulfill its environmental policy
• Identification of significant environmental
  issues and of environmental objectives and
  targets
• Air emissions, Water pollution, Solid Waste,
  Hazardous Waste, Noise
• Environmental plans and management program

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3. Implementation

• For effective implementation, an organization
  should develop its environment policy, objectives
  and targets
• Resources, human, physical and financial
• EMS alignment and integration
• Reward and appraisal systems,
• Measuring and monitoring systems
• Communication and reporting
• Accountability and responsibility
• Training
• Communicating

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Example accountability and responsibility

• Establish overall direction CEO
• Develop environmental policy CEO and Env Manager
• Develop env objectives, targets and programs
  relevant managers
• Monitor overall EMS performance chief
  environmental manager
• Assure regulatory compliance senior operating
  manager
• Ensure continual improvement all managers
• Identify customers expectations sales and
  marketing staff
• Identify suppliers expectations purchasers
  buyers
• Develop and maintain accounting procedures
  finance/accounting managers
• Comply with defined procedures all staff

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4. Measurement and evaluation

• An organization should measure, monitor and
  evaluate its environmental performance
• EMS records
• Legislative and regulatory requirements, permits,
  env aspects and impacts, details of
  non-conformance (incidents, complaints, and
  follow-up action) env audits and management
  reviews.
• Audits of the EMS

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5. Continuous improvement

• An organization should review and continually
  improve its environmental management system, with
  the objective of improving its overall
  environmental performance
• Review of EMS
• Env objectives, findings of EMS audit, evaluation
  of effectiveness, lesson learned
• Continual improvement
• Identify areas of improvement, determine causes
  of nonconformances, develop plan of corrective
  actions, make comparison with objectives and
  targets

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Environmental performance requirements?

• ISO 14000 does not establish requirements for
  environmental performance beyond commitment in
  the policy to compliance with applicable
  legislation and regulation and to continual
  improvement

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Process Standard/Label

• ISO 14001 applies to the processes that influence
  the organizations environmental performance. ISO
  14001 does not give specific requirements for
  specific products or services.
• Therefore, ISO 14001 certification marks of
  conformity should not appear on products, product
  labels or product packaging, or in any way that
  might be interpreted as denoting product
  conformity.
• What can be done
• The management system governing the manufacture
  of this product is ISO or ISO 14001 certified.
• The management system governing the provision of
  this service is ISO 14001 certified.
• ISO 14001-certified processes.

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Why would firms seek certification?

• EMS
• Reducing incidents that result in liability
• Reduce Costs through reduction of use of natural
  resources and waste in existing products and
  process.

• ISO 14001
• Improved Relations between government and
  industry
• Improve public image

• .

• Employees motivation
• Management commitment

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Why would not firms seek certification?

• Transaction costs
• Administrative costs

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ISO speedometer
http//www.inem.org/iso/speedo.htm
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Number of ISO 14001 certification in 2000 (March)
3500
3000
2500
2000
Number of certifications
1500
1000
500
0
UK
Italy
New
USA
India
Israel
Japan
Spain
Egypt
Korea
France
Ireland
Turkey
Poland
Taiwan
Austria
Brazil
Finland
Canada
Mexico
Sweden
Norway
Belgium
Hungary
Slovenia
Thailand
Malaysia
Germany
Denmark
Australia
Indonesia
Argentina
Singapore
Philippines
ChinaHon
Czech Rep.
Switzerland
Netherlands
Slovak Rep.
South Africa
Countries
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Number of ISO 14001 certifications / GDP 2000
(March)
6,000
5,000
4,000
ISO 14001 certifications / GDP
3,000
2,000
1,000
0
UK
Italy
New
USA
India
Japan
Spain
Israel
South
Egypt
Korea
France
Ireland
Brazil
Turkey
Poland
Taiwan
Austria
Finland
Canada
Mexico
Sweden
Norway
Belgium
Hungary
Slovenia
Thailand
Australia
Malaysia
Denmark
Germany
Indonesia
Argentina
Singapore
Philippines
Czech Rep.
ChinaHon
Switzerland
Netherlands
Slovak Rep.
Country
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Conclusions

• Environmental Management Systems a tool for
  continuous improvement beyond compliance that can
  provide private benefits to firm
• Advantages of EMSs differ from advantages of
  certifications
• Importance of standard design
• Difficulties to assess results of ISO 14001 i.e.
  environmental performance
• Suitable institutional environment better
  design will favor international diffusion of
  ISO14001

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Next

• Tuesday
• Case preparation Environmental Defense/McDonald
• Discussion topic on private governance
• Thursday Case discussion and lecture