Environmental Prelim

BM2017
INTRODUCTION TO ENVIRONMENTAL MANAGEMENT SYSTEM (EMS)
Environmental Management System (EPA, 2017)

An Environmental Management System (EMS) is a set of processes and practices that enable an
organization to reduce its environmental impacts and increase its operating efficiency. EMS is a
framework that helps an organization achieve its environmental goals through consistent review,
evaluation, and improvement of its environmental initiatives. Also, EMS helps identify opportunities for
improving and implementing the environmental performance of the organization.
An EMS helps an organization address its regulatory demands in a systematic and cost-effective manner.
This proactive approach can help reduce the risk of non-compliance and improve health and safety
practices for employees and the public. An EMS can also help address non-regulated issues, such as energy
conservation, and can promote stronger operational control and employee stewardship.
The six (6) basic objectives of an EMS include the following:
1. Review. This involves revisiting the organization's environmental goals.
2. Analyze. This involves assessing the organization’s environmental impacts and compliance with
legal requirements.
3. Set. This involves formulating environmental objectives and targets to reduce environmental
impacts and comply with legal requirements.
4. Establish. This involves launching programs to meet environmental objectives and targets.
5. Monitor. This involves measuring the progress of environmental efforts towards pre-defined
objectives.
6. Ensure. This involves certifying employees' environmental awareness and competence.
The most commonly used framework for an EMS is developed by the International Organization for
Standardization (ISO) (a global standard-setting body) for the ISO 14001 standard (a clause specifying the
requirements for an environmental management system).
The five (5) main stages of an EMS, as defined by the ISO 14001 standard, are described below:
1. Commitment and Policy. Top management must initiate environmental improvement and
establish the organization's environmental policy. The policy is the foundation of the EMS.
2. Planning. An organization first identifies environmental aspects of its operations. Environmental
aspects are those items, such as air pollutants or hazardous waste, that can have negative impacts
on people and/or the environment. An organization then determines which aspects are significant
by choosing criteria considered most important by the organization. For example, an organization
may choose worker health and safety, environmental compliance, and cost as its criteria. Once
significant environmental aspects are determined, an organization sets objectives and targets. An
objective is an overall environmental goal (for example, minimize use of chemical X). A target is a
detailed, quantified requirement that arises from the objectives (for example, reduce use of
chemical X by 25% by September 202A). The final part of the planning stage is devising an action
plan for meeting the targets. This includes designating responsibilities, establishing a schedule,
and outlining clearly defined steps to meet the targets.
3. Implementation. An organization follows through with the action plan using the necessary
resources (manpower, financial capital, among others). An important component is employee
training and awareness for all personnel. Other steps in the implementation stage include
documentation, following operating procedures, and setting up internal and external
communication lines.
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4. Evaluation. A company monitors its operations to assess whether targets are being met. If not,
the company must take corrective action.
5. Review. Top management reviews the results of the evaluation to see if the EMS is working.
Management determines whether the original environmental policy is consistent with the
organization's values. The plan is then revised to optimize the effectiveness of the EMS. The
review stage creates a loop of continuous improvement for the company.
Drivers for Environmental Management (Pillai & Tinsley, 2012)
The following are the organizational drivers that help organizations recognize the need for an
environmental management initiative:
• Energy efficiency. This involves a simple review of oil, electricity, and gas bills, which will provide
a starting base for companies to measure future savings. Adopting an energy efficiency program
is a good way to begin an environmental awareness program for the company. The corporate
environmental policy would state that the organization is committed to using energy more
efficiently. One (1) of the key objectives may state reducing energy consumption by 10 percent in
the first year, measured against existing energy bills.
• Waste minimization. Companies spend much of their development budget on improving
production or increasing sales. A greater return on investment, as high as 10 percent of turnover,
can be achieved if the same importance or investment is attached to improving waste
management. Reducing waste improves profitability, and any savings go straight to the bottom
line and improve competitiveness. A waste minimization program will improve business efficiency
and reduce environmental impacts in the short term. Simple product or process design changes
can result in fewer natural resources going into the final product. Waste should be seen as a
product failure.
• Green company image. This involves linking a company’s products and/or services to
environmental benefits. Companies strive continually to be different from their competitors and,
in an attempt to gain a competitive advantage. Many industry sectors are becoming increasingly
aware that businesses and the general public prefer, where possible, to deal with companies that
are able to demonstrate a willingness to operate in an environmentally responsible way.
• Competitive advantage. A company that successfully improved its efficiency in its use of
resources, particularly in its production processes and use of energy and water, will consequently
gain a competitive advantage over competitors that remain inefficient. Internally, efficient
heating and lighting systems and safe handling of hazardous substances result in greater
profitability, improved working conditions, and a boost to staff morale, which may collectively
contribute to competitive advantage. Despite the fact that implementing an EMS program is
voluntary, using it as a means of pleasing customers is increasingly more common. While
competitive advantage is one (1) of the more elusive benefits of EMS, some organizations actively
seek environmental innovations and a competitive priority. These elusive competitive advantages
will start to become more evident as more companies require ISO certifications from their
suppliers.
• Supply chain pressure. A study was undertaken by the Business for Social Responsibility Education
Fund in 2001 to look at the growing pressure from supply chains to form environmental
management strategies. Interviews with 25 suppliers suggested that a growing number of
companies were seeking to address environmental issues across their supply chains. Distributors
and dealers in the automotive sector faced the most requests for evidence of environmental

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strategy from manufacturers. In addition, a number of suppliers involve their customers in

changing product specifications to include pollution prevention activities.
• Environmental legislation. Regulatory requirements are acknowledged as being the most
important determinant of the number of staff a company will commit to environmental or health
and safety issues. The penalties for company transgressions have grown to incorporate significant
fines and imprisonment for company directors. Those companies that have polluted in the past
can no longer escape their clean-up responsibilities. The ‘polluter pays’ principle is central to
existing environmental legislation and ensures that pollution caused by companies in the past is
still their responsibility today. The majority of environmental policy statements by large
organizations declare that their objective is to improve environmental management and reduce
exposure to environmental risk.
• Corporate Social Responsibility (CSR). An indirect benefit of implementing an EMS is improved
staff morale. While this is unlikely to be the primary driver for implementing an EMS in all but the
most socially conscious businesses, it is becoming a greater priority with the advent of “corporate
social responsibility”. In the same way that a greener image can create greater customer
satisfaction and loyalty, commitment to the environment can create job satisfaction and staff
loyalty. While staff morale is not often directly measured as part of an EMS, anecdotal evidence
is available. Employees feel empowered to come up with their own solutions to improving the
company’s environmental performance, which results in the generation of new cost-saving ideas.
Environmental Sustainability
Sustainability development involves business practices that satisfy the needs of the present without
compromising the ability of the future generation to meet their own needs. It involves the management
of a company’s profit or loss, social responsibility, and environmental responsibility. Beattie (2017)
described the “Triple Bottom Line” (TBL) or the three (3) pillars of sustainability as follows:
• The Economic Pillar. This ensures economic efficiency and income for businesses. In order to
become sustainable, a business must be profitable. This pillar of sustainability includes business
activities such as compliance, proper governance, and risk management.
• The Social Pillar. This ensures the quality of life, safety, and services for citizens. In order to
become sustainable, a business should have the support and approval of its employees,
stakeholders, and the community where it operates. The approaches in securing and maintaining
this support boil down to treating employees fairly and being a good neighbor and community
member in the local and global arena.
• The Environmental Pillar. This ensures the availability and quality of natural resources. In order
to become sustainable, businesses should focus on reducing their carbon footprints, packaging
waste, water usage, and their overall undesirable impact on the environment. The environmental
pillar is the main focus in developing an EMS.
References:
Beattie, A. (2017). The 3 pillars of corporate sustainability. https://www.investopedia.com/articles/
investing/100515/three-pillars-corporate-sustainability.asp
Pillai, I. & Tinsley, S. (2012). Environmental management systems: Understanding organizational drivers
and barriers. Taylor & Francis.
United States Environmental Protection Agency (EPA). (2017). Learn about environmental management
systems. https://www.epa.gov/ems/learn-about-environmental-management-systems


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BM2017

INTRODUCTION TO ENVIRONMENTAL MANAGEMENT SYSTEM (EMS)

Environmental Management System (EPA, 2017)

01 Handout 1 *Property of STI

01 Handout 1 *Property of STI

strategy from manufacturers. In addition, a number of suppliers involve their customers in

01 Handout 1 *Property of STI

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