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Voluntary Environmental Management for SMEs: Alternatives Models for ISO 14001 Adoption Lisa Greenwood Environmental Management Leadership Symposium VII May 2, 2011
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Page 1: Voluntary Environmental Management for SMEs: Alternatives Models for ISO 14001 Adoption Lisa Greenwood Environmental Management Leadership Symposium VII.

Voluntary Environmental Management for SMEs:Alternatives Models for ISO 14001 Adoption

Lisa GreenwoodEnvironmental Management Leadership Symposium VII

May 2, 2011

Page 2: Voluntary Environmental Management for SMEs: Alternatives Models for ISO 14001 Adoption Lisa Greenwood Environmental Management Leadership Symposium VII.

Outline

• Background– SMEs– ISO 14001 – what and why?

• Conformity assessment options• Alternative Models• Future Research• Questions

Page 3: Voluntary Environmental Management for SMEs: Alternatives Models for ISO 14001 Adoption Lisa Greenwood Environmental Management Leadership Symposium VII.

Background• SMEs: smaller footprints BUT comprise > 95%

of employer firms– Significant aggregate impact– Large share of industrial pollution, water and

energy consumption– Present an opportunity to reduce global

environmental burden

Page 4: Voluntary Environmental Management for SMEs: Alternatives Models for ISO 14001 Adoption Lisa Greenwood Environmental Management Leadership Symposium VII.

Background• Voluntary Environmental Programs– Globalization + public pressure voluntary

environmental programs,

EMS

• Environmental Management Systems– Better management better environmental performance– ISO 14001: most prevalent – Can ISO 14001 be useful for SMEs?

Page 5: Voluntary Environmental Management for SMEs: Alternatives Models for ISO 14001 Adoption Lisa Greenwood Environmental Management Leadership Symposium VII.

ISO 14001 – What and Why?• International environmental

management system standard– EMS specification standard– voluntary or integrated in policy

• Systematic approach to managing environmental impacts – Focused on continual improvement –

Deming model

• Typically involves certification of conformity by an independent third partyFunctional purpose: - Systematic control of adverse environmental impact

- Achievement of objectives and targets

Source: EPA/Glover-Stapleton

Applied purpose: - signal to external stakeholders that a firm is “Green”

Page 6: Voluntary Environmental Management for SMEs: Alternatives Models for ISO 14001 Adoption Lisa Greenwood Environmental Management Leadership Symposium VII.

ISO 14001 – Effective?

• Not always conclusive, no clear consensus• Performance varies considerably among adopters

– Variables include motivations/drivers; commitment, available resources, EMS maturity, etc.

• U.S. –based research suggests at least modest improvements for adopters– Reduced pollutant releases– Reduced Energy use– Increased recycling

Page 7: Voluntary Environmental Management for SMEs: Alternatives Models for ISO 14001 Adoption Lisa Greenwood Environmental Management Leadership Symposium VII.

ISO 14001 – Effective for SMEs?

• ISO is very conscious of low uptake by SMEs– Strategic SME task force– Alternative standard – ISO 14005– Guidance materials aimed at SMEs

• Intended for use by any type/size organization…..

• Presents specific challenges and potential barriers for SMEs

Page 8: Voluntary Environmental Management for SMEs: Alternatives Models for ISO 14001 Adoption Lisa Greenwood Environmental Management Leadership Symposium VII.

SMEs – Costs

• Do costs outweigh benefits?– additional staff /manpower needs– internal education and training– external consulting– internal auditing – environmental control measures– third party certification reviews and audits

Page 9: Voluntary Environmental Management for SMEs: Alternatives Models for ISO 14001 Adoption Lisa Greenwood Environmental Management Leadership Symposium VII.

SMEs - Resources

• Technical, human resource constraints• limited environmental management capabilities– Weak resource and management capacity– Lack of EMS expertise, technical skills, knowledge

base

Page 10: Voluntary Environmental Management for SMEs: Alternatives Models for ISO 14001 Adoption Lisa Greenwood Environmental Management Leadership Symposium VII.

Conformity Assessment

Depends on:• Customer and regulator requirements• Consumer expectations• Resources and cost• Needs of the organization

Self-Declaration

Internal verification

Third-Party Certification

Independent verification

Second-Party Verification

Verification by interested party

Verification by external party

Independence

LOW HIGH

Page 11: Voluntary Environmental Management for SMEs: Alternatives Models for ISO 14001 Adoption Lisa Greenwood Environmental Management Leadership Symposium VII.

AMEMs?

• Alternative Models for Environmental Management

• Primary Types:– EMS “lite” – Phased EMS– Joint EMS/Group Certification– Mentor approach

Page 12: Voluntary Environmental Management for SMEs: Alternatives Models for ISO 14001 Adoption Lisa Greenwood Environmental Management Leadership Symposium VII.

AMEMsAlternative Models Cost? EM

Capability?Option to Certify?

EMS “light” approach –

YES* NO NO**

Phased EMS approach –

NO NO YES

Joint/Group approach – YES YES YES

Mentor Approach YES YES YES

Key Point: - Effectiveness is not dependent on Certification

Page 13: Voluntary Environmental Management for SMEs: Alternatives Models for ISO 14001 Adoption Lisa Greenwood Environmental Management Leadership Symposium VII.

Conclusions

• ISO 14001 certification– may not be appropriate for most SMEs

• AMEMs – Potentially more flexible, cost-effective – Credible, 2nd party process utilization– Can be applied with certification if desired– Focus for SMEs should be on Joint EMS and

Mentoring options

Page 14: Voluntary Environmental Management for SMEs: Alternatives Models for ISO 14001 Adoption Lisa Greenwood Environmental Management Leadership Symposium VII.

Questions?


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