EMS/ISO 14000NEED OF THE HOUR

NATIONAL ENVIRONMENTAL ENGINEERING RESEARCH

INSTITUTE

Council of Scientific and Industrial Research

Presentation Coverage

• About NEERI

• Background of EMS / ISO 14000

• ISO 14000 series of standards

• Principles of standards

• Benefits of ISO 14000

• Proposed approach

NEERI – Organizational Setup

CSIR

DIRECTOR

ZONAL CENTRES

R&D GROUPS AT THE INSTITUTE

Environmental Consequences

• Spatial scale– Local to regional to global

• Temporal scale– Immediate to short-term to long-term

• Scope– Minor disturbances to large-scale

modifications

Sustainable Development

• Earlier perception

Development OR Environment

• Now

Development AND Environment

Evident in– Public pressure– Recent regulations

Sustainable Development (Contd..)

• Development without adversely affecting the ability to develop of future generations– Planet can support indefinitely

• Organizations may ask whether they are part of the solutions to social and environmental problems or part of the problems!

Environmental Pressures

on Business• Environmental issues can threaten

business health

- Closure

- Resource quality

- Quality of life

• Know the environmental status

• Decide suitable action plan

Environmental Management Credibility Gap

Factors that have contributed to the credibility gap include :

• Corporate downsizing, which often throws environmental (and other) programs into tailspins

• Tight financial controls and increased scrutiny of the bottom-line contribution for all organizations in the company

• New management paradigms (i.e. reengineering, TQM) that distract management attention and reorient priorities

• Environmental strategies and programs that are too broad or try to do everything at once (thereby increasing costs and diluting payback) and do not fit well with the overall business strategy

Factors that have contributed to the credibility gap

include : (Contd..)

• Unrealistically high expectations for potential benefits from strategic environmental management, resulting from overly aggressive sales jobs or cheerleading

• Early EH&S initiatives have picked the low-hanging fruit, removing the high return/ low effort opportunities

• Creation of an environmental culture that is not congruent with the business culture of the company

• Poor communication between the environmental organization and the lines of business about the types and sources of competitive advantage that can be accrued

Liability Containment

Issue of Staff

Public Image

Product Positioning

MBA Functions Regulatory Compliance

The Full Triangle of Environmental ManagementThe Full Triangle of Environmental Management

Lawyers (Liability Containment)Green Wall

MBA

The core nature of business is sliced from the environmental decision-making process, leaving the two-dimensional way of compliance, which lacks any strategic vision

Engineers (Regulatory Compliance)

“Money –Making”

Defining the “Defining the “Green WallGreen Wall””

Examples of Companies That Have Examples of Companies That Have Hit the Hit the Green WallGreen Wall

• Apple Computer, which cut its award –wining Advanced (Environmental) Technology Group as part of corporate downsizing;

• Warner Lambert, which is exiting the environmental packaging arena;

• ABB, which has positioned itself to sell off many environmental units and alter the internal Environmental Health and Safety (EH&S) role; and

• McDonalds, which is struggling with how to sell hamburgers on the basis of the environmental merits of the company

Green WallGreen Wall Syndrome Syndrome

• Symptoms – No Support to strategic environment

management– Deferred decisions

• Why ? – No focus to environmental safety & health

progremmes– Inability to demonstrate its efficiency to

others in organization– Inability to show tangible returns on

investment

Turning Environmentalese…

Into Business

Got the enforcement guys off our back

Fewer fines than last year

Net present value of avoided fines

Lost market share of fines as a percentage of industry fines

Spent millions on remediation

Decreased backlog of remediation, on time, on budget, and according to our strategy

Met new regulatory requirements and invested in pollution prevention

Return on investment for environmental capital investments

Created a matrix team of EH&S and Engineering

Leveraging of staff from engineering and operations to keep down the head count in the environmental group

Language of Business and EnvironmentaleseLanguage of Business and Environmentalese

The Integrated Potential for The Integrated Potential for Environmental ManagementEnvironmental Management

StrategicEnvironmental Management

Stand –aloneStrategy

Fit with Business Strategy

“Environmentalese” Language

Business Language

Embedded in Organization

MatrixOrganization

InteractiveEnvironmental Management

“Green Wall”Environmental Management

Source : Shelton in Corporate Environmental Strategy : The Journal of Environmental Leadership

Environmental Management Systems (EMS)

• From Reactive to Proactive

• Systems approach

• Inspired by– Quality Management System– QMS Standards– ISO 9000 Series– TQM

Parallels with Quality

• Initially, quality was only an extra cost driver

• Later, essential for selling in global market

• Firms realized profits due to lower servicing

• Now it signifies competitive advantage• In future : zero defects

Emergence of ISO 14000

• Success of ISO 9000 prompted development of ISO 14000

• Strategic Advisory Group on Environment (SAGE) : 1991

• TC 207 (1993) and sub-committees• ISO 14001, 14004, 14010-12 (1996)• ISO14040(97),14020,14041,14050 (98)

Evaluation &Auditing

ManagementSystems

Product orientedsupport tools

EMS specificationISO 14001

EMS guideISO 14004

Life cycleAssessment

ISO 140401404114042

Eco labellingISO 14020

1402114024

Auditing guidelinesISO 14010 14011 14012

Terms & definitions ISO 14050

ISO 14001: EMS Spec.

• Specification standard

• Specifies elements that can be audited and certified.

• Core requirements– Auditable elements – Interweave

• Annexure gives explanation of elements

Elements of ISO 14001

• General Requirements

• Environmental Policy

• Planning

• Implementation and Operation

• Checking and Corrective Action

• Management Review

Environmental Aspects

• Elements of organisation’s activities, products or services which can interact with the environment.– Resource consumption– Releases to the environment– Energy consumption– Product ingredients

ISO 14000 EMS Model for Continual Improvement

Re-define purpose& re-establish plan

Define Policy & Establish Plan Identify aspects, & risk, establish internal criteria,

set objectives,& targets, create strategic plan,develop management programme

Review &Improve-Review-Correct & Prevent

Implement -Ensure Capability-

Measure & Assess-Measure & Monitor

Initial Review

Senior Management Commitment

Principles Behind ISO 14000

• Better environmental protection• Applicable in all nations• Promote broad interests of public and users• Cost effective, non-prescriptive, flexible to meet

differing needs of organisations, worldwide• scientifically based• Practical, useful and useable

Benefits of EMS: Source ISO

• Assure customers

• Good public relations

• Investor criteria

• Less cost of insurance

• Image

• Vendor requirement

• Improve cost control

• Reduce liability

• Demonstrate reasonable care

• Conserve input & energy

• Ease in securing permits

• Better relations with Government

• Share environmental solutions

Benefits of EMS : Indian Context

• Emphasis on preventive, not on corrective strategies or actions.

• System demands continual improvement.

• Resource conservation that lends competitive edge.

• Global acceptance

• Better control of top management

Benefits of EMS to a Company

In addition to the benefits discussed earlier following benefits are expected:

• Umbrella system to take care of following requirements : – Legal – Corporate

• While doing so individuality of the site can be maintained.

Benefits of EMS to a Company

• Reduced spillage, better house-keeping

• Trained work force high on motivation, better employee participation

• Company’s protection from environment and protection of the environment by company

Objectives

• In a Global economy, the firms have to meet the demands of the global marketplace

• Competitiveness : essential to survive– Resource productivity is key to survive

• Environmental protection– Meet demands : improve profits

Environmental Management System

Production Legal Participation Market

PPP Self Regulation

High Quality

Communication/Better Accessibility

Increased Competitiveness and Environmental Protection

Ist Step: Pollution Prevention

• Eliminate or minimize waste before creation

• Continual improvement(like TQM) to reduce waste and minimize utilities– 3P by 3M : Pollution Prevention Pays– WRAP : Waste Reduction Always Pays

IInd Step: Design for Environment

• Minimize adverse impacts on environment not only during manufacturing but in full life cycle

• Examine aspects and impacts during design steps– Xerox corporation : Savings in 1995 of the

order of $ 400 million

IIIrd Step: Cleaner Technology

• Improve our processes– About 3/4 of cleaner production or

technology adoptions pay back in six to eight months

• Invest in technologies of the future– For paint companies : water based paints– For cars : solar powered cars

Continual ImprovementEnvironmental Policy @ Planning

Environmental aspectsLegal & other requirements @Objectives & targets @Environmental management programme @

Management Review @

Monitoring & Corrective ActionMonitoring & measurement @ Non-conformance, corrective & preventive action @Records @EMS Audit @

Implementation & OperationStructure & responsibility @Training, awareness and competence @CommunicationEMS documentation @Document control @Operational control @Emergency preparedness and response

@ =Similar to ISO 9001

EMS Implementation Timeline (First 7 Months)

1st 2nd 3rd 4th 5th 6th 7th

Communications & DocumentationTeam Selection

& Kickoff

Start

EMS Training for Team

Implementation Plan

Objectives & Targets

Develop Procedures& Programs

Legal & Other

Requirements

Identify Significant Aspects

Gap Analysis & Report

EMS Implementation Timeline (Second 7 Months)

8th 9th 10th 11th 12th 13th 14th

Communications & Documentation

7th

Develop Procedures & Programs

3rd Party Audit

Management Review

Implement Procedures & Programs

Internal Audit

The ISO 14001 Registration Process

Pre-Assessment (Optional)

Application and Proposal

Stage 1 Visit

Stage 2 Visit

Registration

8- 20Months

6-12 Months

2-4Months

0-4Months

ISO 14001 Registration Maintenance Process

6 Monthly Surveillance

Cycle

First Surveillance VisitRegistration

“Continuous”Registration

30 Months6 Months

Annual Surveillance

Cycle

Triennial Reassessment