Professor Hector R RodriguezSchool of BusinessMount Ida College

Course Map – Topics Covered in Course• Society

– The Corporation and Its Stakeholders– People for the Ethical Treatment of Animals– Corporate Citizenship– The Social Responsibility of Business– The Shareholder Primacy Norm– CSR, Citizenship and Sustainability Reporting– Responsible Investing– The Community and the Corporation– Taxation and Corporate Citizenship– Corporate Philanthropy Programs– Employees and the Corporation– Managing a Diverse Workforce

• Environment– A Balanced Look at Climate Change– Non-anthropogenic Causes of Climate Change– Sulfates, Urban Warming and Permafrost– Conventional Energy– The Kyoto Protocol– Green Building– Green Information Technology– Transportation, Electric Vehicles and the

Environment– Geo-Engineering– Carbon Capture and Storage– Renewable Energy– Solid, Toxic and Hazardous Waste– Forests, Paper and Carbon Sinks– Life Cycle Analysis– Green Chemistry– Water Use and Management– Water Pollution– Environmental Management Systems

• Systematic way of managing an organization’s environmental affairs

• Based on Plan-Do-Check-Act Model (PDCA)• Focused on Continual Improvement of system

What is an EMS?

• Addresses immediate and long-term impact of an organization’s products, services and processes on the environment.

• A tool to improve environmental performance

• Created by the International Organization of Standardization, a non-governmental organization (NGO) established in 1947, located in Switzerland

• ISO is a worldwide federation of national standards bodies from over 100 countries; American National Standards Institute (ANSI) is US representative– They have created many standards: ISO 9000, film speeds

• A series of guidance documents and standards to help organizations address environmental issues. Ones below deal with EMS.– 14001: Environmental Management Systems– 14004: EMS general guidelines– 14012: Auditing - Qualification criteria

ISO 14000: A series of standards

• ISO 14001 is the only certification standard• Registration body examines EMS for conformity to the ISO

14001 standard• Not a compliance audit, an EMS audit• Facility awarded registration• Does NOT mean that products are more environmentally

friendly• Does mean have a documented EMS that is fully

implemented and consistently followed

Becoming ISO 14001 certified

• Policy Statement • Identification of Significant Environmental Aspects and

Impacts• Development of Objectives and Targets• Implementation Plan to Meet Objectives and Targets• Training• Management Review

How you meet the elements is up to you

ISO 14001 Key Elements

• Appropriate to nature and scale of risks

• Continuous improvement• Documented and implemented• Communicated and

understood by employees• Reviewed periodically to

ensure relevance• States objectives• Commitment to compliance• Available to interested parties

Environmental Policy Statement

• The heart of the system• Every element involves a degree of planning before

implementation• Involves identifying environmental gaps and setting clear

performance criteria defining what, who, and when• Environmental aspects

– should be the basis of the EMS– ranking of aspects with plans to manage them

• Legal and other requirements• Set SMART objectives

Planning

• Structure and responsibility– Top management, defined

roles, responsibility and authority

• Training awareness and competence – Identification of required

competencies, timely, records, means to check effectiveness, training for contractors

• Consultation and communication – Procedures for communication,

employee involvement, encourage feedback, outside communication

• Documentation – Assembles and retains

environmental knowledge, kept to minimum. Support system, not drive it.

• Records Management – Identification, maintenance

and disposal of records (legible, identifiable, traceable, protected)

• Operational controls – Procurement and contracting,

hazmats, PM’s• Emergency preparedness

and response – Identifying potential for

incidents, preventing and mitigating, responding.

Implementation and Operation

• Measuring – provides evidence of implementation and effectiveness. Plans implemented? Objectives met?

• Quantitative and qualitative measures – checklists, surveys, audits, etc.

• Proactive and reactive metrics• Corrective Actions – identify root causes and take

immediate action

Checking and Corrective Action

• Audit – Determines if EMS conforms, properly implemented and maintained, effective in meeting policy and objectives. Top management aware.

• Ensures MS continuing suitability adequacy and effectiveness

• Foundation for continuous improvement• Significant issues addressed• Set goals and objectives• Identifies resources and organizational structure

Management Review

1. Conduct 3rd party assessment to verify implementation 2. Registrar submits proposal3. Auditee submits formal application4. Optional pre-assessment by Registrar5. Audits

• 1st phase (1-3 days) – aspect identification and assessment, setting of objectives, policies and programs

• 2nd phase (3-7 days) – implementation assessment6. Certification granted7. Periodic reviews (every 6 months-year)8. Recertification every 3 years

Part II - Certification Process

-2

-1.5

-1

-0.5

0

0.5

1

1.5

2

Average standard deviations from mean

1. System2. Policy (4.2)3. Responsibility (4.4.1)4. Verification (4.5.1)5. Representative (4.4.1)6. Training (4.4.2)7. Contractors (4.4.6. c)8. Communications (4.4.3)9. Aspects (4.3.1)10. Legal (4.3.2)11. Objectives (4.3.3)12. Programme (4.3.4)13. Manual (4.4.4)14. Documentation (4.4.5)15. Operations (4.4.6)16. Control (4.4.6)17. Emergencies (4.4.7)18. Corrective Action (4.5)19. Records (4.5.3)20. Audit (4.5.4)21. Audit Programme (4.5.4)22. Audit Procedure (4.5.4)23. Review (4.6)

More Difficulties

Fewer Difficulties

Key Implementation Issues

• Benefits – More reliable performance and compliance– Document reporting requirements more efficiently– Better procedures resulting in less incidents– Better response to incidents– Easier to identify opportunities to improve performance, resulting

in lower cost and less liability– Less risk to surrounding community– Means not only doing the right thing, but be seen doing the right

thing– Helps you demonstrate your responsibility to employees, clients,

stakeholders and society

Part III – Business Value

• University of North Carolina (1/03) studied 83 facilities in 17 states for 3 years– Introduction of an EMS can be

expected to be somewhat beneficial to the environmental performance of most facilities

– The existence or certification of an EMS per se does not necessarily provide any clear information about the facility’s actual environmental performance

• EMS Study by the Environmental Agency in Bristol, England– EMS associated with an

increased level of operator performance

– Restricted to procedural aspects of performance

– Sites neither more nor less likely to suffer from incidents, complaints or non-compliance than those without

– Sites neither more nor less likely to be subject to enforcement action

Management Systems Studies

• Management systems teams get mired in paperwork

• Goal may be to implement system, not to improve performance

• “All’s well because we’re certified”

• Focus on continuous improvement, not on performance vs benchmarks

Pitfalls to Avoid

• ISO 14001 is not a thing you install, it’s just a protocol you can use to evaluate your management system.

• It may give you guidance on how to improve your management system

• The key is to:– Improve your management system by…– Developing the correct strategy, and…– Setting appropriate goals

Conclusion