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    5200 ems report-en 5200 ems report-en Document Transcript

    • Successful Practices of Environmental Management Systems in Small and Medium-Size Enterprises A North American Perspective Commission for Environmental Cooperation
    • ACKNOWLEDGMENTSThis report was prepared by Tim Whitehouse, Head of the Law and Peer reviewers also provided extremely valuable commentsPolicy Program of the Secretariat of the Commission for and ideas during the development of this report. They providedEnvironmental Cooperation (CEC). Morgan Rider, member of the many insights into the issues faced by small and medium-size busi-environmental consulting firm Ecology and Environment, Jerry nesses in implementing environmental management systems andSpeir, an attorney practicing in New Orleans, Louisiana, and Dixon into the types of resources available to help these businessesThompson, professor of environmental science at the University of improve their environmental performance. These reviewers wereCalgary’s School of Environmental Design assisted in the design, Leonardo J. Cárdenas, Principal Consultores en Calidad Ambientalresearch and writing of this report. SA de CV; Raymond P. Côté, professor, School for Resource and The Secretariat is grateful to Environment Canada, Mexico’s Environmental Studies, Dalhousie University; Margarita Ferat Toscano,Federal Attorney for Environmental Protection ( Procuraduría environmental corporate manager, DESC SA de CV; Louise Millette,Federal de Protección al Ambiente) and the US Environmental director, Department of Civil, Geological and Mining Engineering,Protection Agency for their comments on this report. The views École Polytechnique de Montréal; David Ronald, executive director,expressed in this report are not necessarily those of the govern- Multistate Working Group; and Richard P. Wells, president,ments of Canada, Mexico or the United States. Lexington Group.The Commission for Environmental Cooperation (CEC) was established under the Commission for Environmental CooperationNorth American Agreement on Environmental Cooperation (NAAEC) to address envi- 393, rue St-Jacques Ouest, Bureau 200ronmental issues in North America from a continental perspective, with a pa rt i c u- Montréal (Québec) Canada H2Y 1N9lar focus on those arising in the context of liberalized trade. E-mail: info@cec.org http://www.cec.orgThis publication was prepared by the Secretariat of the CEC. The views containedherein do not necessarily reflect the views of the CEC, or the governments of Canada,Mexico or the United States of America. ISBN: 2-923358-29-5Reproduction of this document in whole or in part and in any form for educational or © Commission for Environmental Cooperation, 2005nonprofit purposes may be made without special permission from the CECSecretariat, provided acknowledgement of the source is made. The CEC would Legal Deposit-Bibliothèque nationale du Québec, 2005appreciate receiving a copy of any publication or material that uses this document as Legal Deposit-Bibliothèque nationale du Canada, 2005a source. Disponible en español - Disponible en français Design: Associés libres, Montreal December 2005 Printed in Canada on paper containing 100% post- consumer waste fiber.
    • CONTENTS 1. Introduction 2 2. Defining Small and Medium-Size Enterprises 4 and Environmental Management Systems 3. Are Environmental Management Systems Effective? 94. The Benefits and Common Characteristics of Successful 12 Environmental Management Systems 5. Drivers and Barriers to EMS Adoption by Small 15 and Medium-Size Enterprises 6. Technical Assistance and Outreach 18 7. Incentive Programs and Policies 24 8. Future Directions 27 Appendix A. Useful Web Sites 29 Appendix B. 10 Elements of an Environmental 30 Management System References 31
    • 1. INTRODUCTION his report examines the use of environmental 1. designed with a strong business case in mindT management systems (EMSs) in small andmedium-size enterprises (SMEs) in Canada, 2. managerial support and commitment of resourcesMexico and the United States. In doing so, it pro- 3. engaged employeesvides a North American perspective on success- 4. integrated into businessful practices and some of the issues faced by 5. clearly defined objectives and targetsSMEs in developing and implementing these sys- 6. continual monitoring and measurement.tems. It also offers some suggestions for contin-ued cooperation between the governments of Not all EMSs, however, are effective inCanada, Mexico and the United States on promot- improving environmental performance. Mosting EMSs. SMEs face few incentives and many difficulties Over the past decade, the three govern- in implementing environmental managementments have promoted the use of EMSs to help systems. The owner of a business must believecompanies improve their environmental per- that an EMS will create real tangible value forformance and move beyond compliance with the business. Yet most SMEs do not know whatthe law. The Commission for Environmental an EMS is and, if they do, how it could benefitCooperation (CEC) has served as a forum in their business. Even if they are familiar with thewhich the three governments could share their concept of an EMS, many smaller businessesexperiences, practices, and successes on the use lack the technical expertise and resourcesof EMSs in North America. In June 2000, for needed to develop and implement one.example, the CEC published Improving Envi- Although business needs may ultimatelyronmental Performance and Compliance: 10 determine whether an SME implements an EMS,Elements of Effective Environmental Manage- government or private sector technical assistancement Systems, which described those elements and outreach efforts are often crucial to provid-that the three governments agreed were impor- ing the conditions under which businesses—par-tant to address in implementing EMSs (CEC ticularly small and micro-businesses—are likely to2000). The CEC has also encouraged a North implement a successful EMS. Continued cooper-American dialogue on the use of environmental ation among the governments of Canada, Mexicomanagement systems through its support of and the United States could help improve theand participation in numerous workshops and delivery of sector-specific information and techni-forums, including most recently those of the cal assistance and specific advice on EMSNorth American Pollution Prevention Partner- methodologies to SMEs.ship, Mexico’s Pollution Prevention Roundtable,the Auditing Roundtable and the Canadian Organization of This ReportEnvironmental Auditing Association. The chapters that follow describe a North In recent years, the private sector has devel- American perspective on the use of environ-oped various types of EMSs for identifying and mental management systems in small and medi-managing the impacts that commercial, industrial um-size enterprises. The definitions of an EMSand service operations have on the environment. and a SME in Chapter 2 are followed by a closerAlthough the use of EMSs is becoming more look in Chapter 3 at the effectiveness of envi-common among larger companies, their use by ronmental management systems in improvingsmall and medium-size enterprises is less com- environmental performance. Chapters 4 and 5mon. then look at the benefits and characteristics of a A successful EMS can enhance efficiency successful EMS and the drivers and barriers toand lower costs, reduce resource use and waste, EMS adoption by small and medium-size busi-help to ensure compliance with regulatory nesses. Chapters 6 and 7 review the technicalrequirements, encourage employee involvement assistance and outreach, and the incentive pro-in environmental performance and improve rela- grams and policies in the three countries. Chap-tions with customers. In examining a variety of ter 8 concludes by examining areas for futureexperiences in North America, this report identi- cooperation by the three governments on EMSfies six common characteristics of successful EMSs promotion in North America. The two appen-adopted by small and medium-size enterprises: dices to the report provide general information2 E N V I R O N M E N TA L M A N A G E M E N T S Y S T E M S
    • on environmental management systems.Appendix A lists some useful web sites in addi-tion to those found as reference to this text, andAppendix B presents the CEC’s "10 Elements ofEffective Environmental Management Systems." With the growing integration of the NorthAmerican economy under the North AmericanFree Trade Agreement (NAFTA), the CEC is in aunique position to step back and examine thedevelopment of EMS policies and programs inall three countries. Such an examination can helpthose promoting environmental managementsystems in Canada, Mexico and the UnitedStates to learn from the experiences of the othercountries and can help to inform and stimulatediscussion and critical comment among thoseassisting small and medium-size enterprises withenvironmental issues.3 A NORTH AMERICAN PER SPECTIVE
    • 2. DEFINING SMALL AND MEDIUM-SIZE ENTERPRISES AND ENVIRONMENTAL MANAGEMENT SYSTEMS mall and medium-size enterprises in North percent of their gross domestic product (GDP) S America vary widely in their impacts on the environment. An environmental management and over half of their private sector employment. In the manufacturing sector, SMEs generate 55 system offers the methodology a company percent of manufacturing employment in Canada, needs to identify and implement ways in which 66 percent in Mexico and 41 percent in the to improve the environment both inside and out- United States (OECD 2002). side a plant or business, from mere good house- Although most SMEs serve local markets, keeping steps to strategies to prevent pollution. they are increasingly operating as part of a glob- This chapter examines the various defini- al marketplace, purchasing products produced tions of small and medium-size enterprises and abroad, supplying multinational companies and some of the different types of environmental selling directly to overseas buyers. In NorthSmall and Medium-Size Enterprises? management systems in the three countries. America, SMEs play an important role in theThe threshold of 500 employees guides the Although the definition of a small and medium- market-driven coordination of production acrossclassification of small and medium-size enter- size enterprise varies from country to country, it the US-Mexico and US-Canada borders, espe-prises (SMEs) in Canada, Mexico and theUnited States. Environment Canada typically is useful to examine SMEs as a general category. cially in sectors such as automobile, telecommu-classifies enterprises with less than C$50 mil - These kinds of enterprises generally have fewer nications equipment, computer, electroniclion in annual revenues that are not wholly resources to address their environmental impacts products and textiles and apparel.owned subsidiaries as follows: less than 5employees, microenterprise; 5–49 employ- and are thought to be less likely to implement SMEs face widely differing environmentalees, small enterprise; 50–499 employees, EMSs than larger companies. They also do not, issues based on the economic sector, employeemedium-size enterprise (Environment by most definitions, have a parent company on base and jurisdiction in which they operate. TheCanada 2003). The medium-size category is not com - which to rely for assistance. Despite these limi- requirements, demands, pressures and issuesmonly used in the United States, and the US tations, SMEs can use the basic methods of they face will more often resemble those facedEnvironmental Protection Agency considers a implementing an EMS as described in this chap- by companies in their own economic sector,small business for research grant programs to ter to integrate environmental planning into their regardless of size, than those in other sectors.be a for-profit organization with no more than500 employees that is not dominant in the everyday business practices. In addition, within the SME category differ-field of operation. For Performance Track ences often exist in the technical capabilities ofPurposes (see Chapter 7), a small business is What are Small and Medium-Size small and medium-size businesses, with medi-defined as a facility with fewer than 50 employ-ees. These facilities may be part of larger Enterprises? um-size business much more likely to haveorganizations. The US Small Business SMEs are found in the largest and most dynamic engineering expertise than small enterprises,Administration has devised sector-specific defi- sectors of the North American economy, rang- especially related to energy efficiency and con-nitions with both employee and revenue limits.See <http://es.epa.gov/ncer/sbir/ ing from those that are pollution-intensive and servation.2005SBIRfactsheet.pdf> and resource-intensive, such as manufacturing and SMEs, even those in the retail sector, can<http://www.sba.gov/size/>. natural resource extraction, to those that are have significant impacts on the environment, In Mexico, Profepa follows a classification(by number of employees) established by the more environmentally benign, such as retail. They including those from nonregulated activitiesSecretary of Economy in 1999: often face unique environmental challenges that such as resource consumption, packaging and Industrial CommercialService are related to their size and their place in the methods of hazardous and nonhazardous wasteMicro 0–30 0–5 0–20 economy. (See Table 2.1) disposal. According to Environment CanadaSmall 31–100 6–20 21–50 The economic importance of SMEs in (2003), of the 2 million Canadian SMEs, theMedium 101–500 21–100 51–100 North America is significant. Over 98 percent of 400,000 most pollution-intensive are in the agri- businesses in Canada, Mexico and the United culture, primary and manufacturing sectors.1 AMexico’s National Institute of Statistics,Geography and Informatics Instituto Nacional States are small and medium-size enterprises.de Estadística Geografía e Informática— SMEs are found in all the economic sectors of 1. The primary sector includes activities such as fisheries, mining,INEGI) has more specific classifications. the three countries, producing approximately 40 forestry and oil and gas extraction. Table 2.1 Distribution of Employment in Manufacturing by Size Class Country 0–9 10–49 50–99 100–499 500+ Total Canada 4.1 17.8 8.8 24.2 45.0 100 Mexico 18.9 12.0 7.5 27.6 34.0 100 United States 3.6 4.1 16.0 17.4 58.9 100 Source: OECD 2002. 4 E N V I R O N M E N TA L M A N A G E M E N T S Y S T E M S
    • study prepared for the Organization for Economic with its "Pollution Prevention Pays" program, Co-operation and Development (OECD) found and Dow, with its "Waste Reduction Always that SMEs in the United States are significant Pays" (WRAP) program. In the 1980s, EMS pro- contributors of pollution in three branches of grams largely focused on due diligence and manufacturing: chemicals, primary metals and compliance with laws and regulations as well as building materials (e.g., stone, clay and glass). ways to cut costs in disposing of wastes and The largest impacts from these SMEs were on treating effluents. Also in the 1980s, trade asso- biological oxygen demand (BOD) in water and ciations began to develop codes of environ- suspended particulates in air, followed by the mental practices, which approximated the release of toxic chemicals (OECD 2002). But definitions of environmental management sys- those statistics for the United States were devel- tems (Pacific Institute for Studies in Develop- oped in a study done specifically for OECD; ment, Environment, and Security 2000). generally, "comprehensive pollution or resource consumption statistics for SMEs do not exist, EMS Models making it difficult to determine their contribution Today, EMSs can range in complexity from sim-Total Quality Management to environmental degradation" (OECD 2002). ple reminders of regulatory deadlines at a singleMost systematic approaches to addressing facility to an elaborate, Internet-based, enter-performance issues derive from the work of What Is an Environmental Management prise-wide performance management systemW. Edward Deming, the US statistician who System? that tracks regulatory requirements, assignsis credited with dramatically improving theperformance of Japanese industry after World An environmental management system is a tool tasks, controls documentation and records, pro-War II with a system that has come to be used by a company to identify measure and vides training, and shares information across mul-known as Total Quality Management (TQM). manage the effects of its activities on the envi- tiple operations and facilities around the world.Deming also popularized the plan–do–check–act cycle that is at the root of all such ronment. An EMS sets out the company’s goals EMSs are most effective when they aresystems: identify and analyze the problem for environmental performance and a plan for part of normal business activities rather than(plan), develop and implement solutions (do), achieving those goals. Ideally, company man- treated as separate programs or initiatives.evaluate and measure the results (check), and agers will set goals in areas such as compliance Although businesses typically have many ele-fix the problems identified and incorporatethe lessons learned into a feedback loop that with environmental laws, minimization of risks ments of an EMS already in place, the EMS pro-begins the process anew (act). The feedback to human health and the environment, use of vides a systematic way to integrate those effortsloop involves all personnel and elements of an natural resources, and prevention and reduction and direct them toward company-establishedorganization and runs counter to traditionaltop-down "management by objective" of pollution. goals. The significant range and variations ofapproaches. Environmental management sys- The evolution of EMSs in North America EMSs can be attributed to the differencestems turn the TQM process to a specific con- can be traced to the 1970s and the pollution among organizations in size, activities, impacts,cern for reducing environmental impacts. prevention programs of companies such as 3M, regulatory requirements, corporate culture andSource: Welch 1998. Figure 2.1 BC Hydro’s Environmental Management System Environmental Responsibility Policy Management Review Planning • Identifying aspects, impacts and operational controls EMS Checking and Corrective Action • Indentifying legal and other • Monitoring and measuring requirements • Process improvement • Meeting objectives, targets • Records and environmental programs • EMS compliance audits Implementing and Operation • Defining training needs • Implementing training • Internal communication and reporting • External communication Source: Industry Canada, • Document control <http://www.strategis.ic.gc.ca/epic/internet/ • Contractors and suppliers incsr-rse.nsf/en/rs00122e.html>. 5 A NOR TH AMERICAN PER SPECTIVE
    • policy commitments. Figure 2.1 depicts the certification by accredited certificate bodies.2 EMS of BC (British Columbia) Hydro and is rep- The European Office of Crafts, Trades and resentative of the structure of many EMSs. Small and Medium-Sized Enterprises for Stan- dardisation (Le Bureau Européen de l’Artisant, The International Organization for et des Petites et Moyennes Enterprises pour la Standardization (ISO) 14001 Normalisation), better known by its acronym The most widely recognized model for an EMS NORMAPME, has formally asked the ISO to is the International Organization for Standard- "explore alternative ways to use the environ- ization (ISO) 14001 standard. This standard, mental management system standard ISO 14001 which is applicable to organizations of all types that are in line with their members’ limitations." and sizes, is based on five components: NORMAPME seeks changes that might include allowing an incremental implementation of ISO 1. An environmental policy that commits the 14001 or allowing organizations to be certified organization to "prevention of pollution," "con- in batches, sharing procedures and administra- tinual improvement" and compliance with "rele- tive costs. The ongoing revisions of ISO 14004 vant environmental legislation and regulations." are intended to simplify EMS requirements for 2. Planning to implement the environmental SMEs in order to facilitate implementation. ISO, policy, which entails identifying all of an organi- through its Sub-Committee 1 of Technical Com- zation’s interactions (activities, products or serv- mittee 207, has formed an ad hoc group to study ices) with the environment (its "environmental EMS penetration among small businesses, and a aspects") and designating the "significant" report is expected in September 2005.3 aspects and setting quantifiable objectives and targets for addressing those significant aspects. The Eco-Management and Audit Scheme 3. Implementation and operation, which Many European countries require large manufac- requires an organization to ensure the availabili- turing facilities to implement the Eco-ManagementISO 14001 Trends in North America ty of resources, define roles and responsibilities, and Audit Scheme (EMAS). The components ofAs of December 2003, the breakdown of develop documented procedures, emergency EMAS are similar to those of ISO 14001. However,North American certifications for ISO 14001 preparedness plans and ensure employee com- EMAS has two significant additions: a baselinewas Canada, 1,274; Mexico, 406; and theUnited States, 3,553 By contrast, in 1998 the petency, training and awareness. environmental assessment and a public environ-breakdown was Canada, 104; Mexico, 39; 4. Checking and corrective action to measure mental performance report. Many companiesand the United States 291. See and track the performance of the system against outside Europe have also chosen to implement<http://www.iso.org/iso/en/iso9000-14000/pdf/survey2003.pdf>. No specific its own goals and to evaluate compliance with the EMAS system or variations.numbers exist for SMEs, which are more the relevant laws and regulations. The organi-likely to use third-party registrars and zation must also identify, investigate and correct The CEC’s "10 Elements of Effective Environ-therefore are less likely to be reported any nonconformities. The organization must mental Management Systems"in the ISO system. ensure that internal audits are conducted. In June 2000, the Commission for Environmen- 5. Review of the EMS by top management "to tal Cooperation published the "10 Elements of ensure its continuing suitability, adequacy, and Effective Environmental Management Systems" effectiveness." (CEC 2000). The "10 elements" were negotiated by Canada, Mexico and the United States just The ISO standard focuses on conformance after the ISO 14001 standards were published with established policies, plans and procedures, and served as the first general policy statement but it does not specify requirements for environ- by the three governments on what they mental performance beyond compliance with the believed were important features of an EMS. relevant legislation. Organizations are, however, The "10 elements" are generic in nature and not free to set goals that exceed compliance specifically geared toward small and medium- requirements. size enterprises. Notably, they place greater Companies implementing ISO 14001 may emphasis on compliance with environmental choose to have their EMS certified. They can seek regulations than the ISO 14001 standard. Like third party certification from either accredited the ISO standard, the "10 elements" state that a certificate bodies (those recognized by a national company’s environmental policy should include accreditation body) or no accredited bodies. Most a provision for compliance with environmental firms seeking certification employ accredited requirements. But the "10 elements" go beyond bodies; these may be perceived on the market as the ISO in stating that an EMS should establish having greater credibility, although a firm that implements ISO 14001 solely for internal man- 2. For more on ISO certification, see <http://www. iso.org/iso/en/ agement purposes (without expectation of ben- iso9000-14000/basics/general/ basics_5.html>. efits from regulators, customers or public 3. See <http://www.iso.org/iso/en/CatalogueDetailPage. perception) may choose not to seek third party CatalogueDetail?CSNUMBER=31808>. 6 E N V I R O N M E N TA L M A N A G E M E N T S Y S T E M S
    • objectives and targets for achieving and main- ples tend to be those tailored to a specifictaining compliance with environmental require- industry and designed with input from thements and a commitment to continuous industry itself. For example, the Texas Commis-improvement in environmental performance sion on Environmental Quality (TCEQ) developed(see Appendix B for the CEC’s "10 elements"). a sample EMS for small businesses in the metal finishing industry. (See Table 2.2) The EMS forA Sample EMS from the Metal Finishing the fictitious company, Papa Plating, covers allIndustry on-site operations, including metal finishing andVarious sample EMSs are available for small and processing activities, groundskeeping, officesmedium-size enterprises. The most useful sam- and waste disposal.Table 2.2 Selected Aspects of Sample EMS Addressing Water UsageForm 7: Environmental Management Action Plans Significant Environmental Aspects Water Use Goal Reduce the amount of water purchased by 50% Action Plan Analyze how water is used and what can be done to minimize water use Consider different potential rinsing methods Review Cycle Willie Scott will review every 6 monthsForm 8: EMS Work InstructionsSignificant Environmental Associated Job Work Instructions Aspects Functions Needed Responsible Person Yes – employees should Parts Rinsing monitor the drip time over Plating supervisor the various rinse tanks and withdraw the parts at the proper speed Water Use Yes – employees should rack parts to minimize Parts Racking solution dripping on other Plating supervisor partsForm 9: Alternatives Identification — Significant Environmental Aspect: Water Use Activity Current Practice Potential Alternatives Rinsing methods Dip rinsing Try spray rinses in the various processes to try to improve rinsing performance and decrease water consumption Water flow Rinse water is being Research the use of conductivity meters flowed at a high rate and/or flow restrictions during production Treatment Currently chemically treated Consider the use of reverse osmosis and/or ion and discharged to waste- exchange after the initial treatment and reuse water treatment facilities the treated effluent back in our process Rinse tank None Consider the use of air agitation in the rinse tanks to improve agitation the rinsing processSource: TCEQ7 A NOR TH AMERICAN PER SPECTIVE
    • Papa Plating’s EMS contains elements ofISO 14001 and the CEC’s "10 elements." TheEMS provides a sample action plan on wateruse, energy use, sludge generation and dispos-al, metal use and use of natural resources,organic emissions from a degreaser and humanexposure to toxic materials and chromium emis-sions. A look at the selected portions of an EMSregarding water aspects of the Papa PlatingsEMS usefully illustrates some of the specific ele-ments of an EMS. Papa Plating’s system is just one exampleof how to create an EMS. An environmentalmanagement system can be designed toaddress the needs of any size organization.Standards groups, trade associations and gov-ernments have all designed different types ofenvironmental management systems and pro-grams to help businesses improve environmen-tal performance by integrating environmentalplanning into everyday business processes.8 E N V I R O N M E N TA L M A N A G E M E N T S Y S T E M S
    • 3.ARE ENVIRONMENTAL MANAGEMENT SYSTEMS EFFECTIVE? ecent studies indicate that not all environ- and assistance from their parent organizations, R mental management systems lead to improved environmental or business perform- but they occur in privately held and govern- ment facilities as well." The NDEMS study is ance. However, several projects and numerous inconclusive on the financial benefits of an case studies of successful EMS practices in EMS, but notes that benefits were "moderately small and medium-size enterprises support the impressive" for the facilities that realized them. proposition that an effectively designed EMS Thirty-two facilities reported quantified mone- can, under the right circumstances, significantly tary benefits from EMS adoption; the average help a company improve its environmental per- net benefit for those reporting a benefit through formance and bottom line. Because not all the first three years was $90,320. (NDEMS EMSs produce positive benefits, it is important 2003) to understand the potential benefits of an EMS, One study completed by the University of the common characteristics of successful EMSs, Sussex in July 2000 compared EMS use in EMAS the drivers and barriers to EMS implementation, and ISO systems in 280 European companies at and the programs available to help SMEs 430 production sites and found no statistically improve their performance. These subjects are significant relationship between the adoption of covered in the chapters that follow. a formal EMS and improved environmental per- formance. The companies included 9 computer Empirical Studies of EMSs companies, 58 electric power generators, 26 fer- Empirical studies of the performance of EMSs tilizer manufacturers, 90 pulp and paper produc- have only recently begun to emerge. One of the ers, 46 printers and 45 textile finishers.4 only studies in North America was conducted in Another study of electronic firms observedAn effectively the United States by the University of North that firms that adopted ISO 14001 were able to Carolina and the Environmental Law Institute catch up to industry best practices, especially ifdesigned EMS can, between 1997 and 2002. The National Database they produced significant toxic emissions on Environmental Management Systems (Russo 2000). A study conducted in the auto-under the right (NDEMS) study examined environmental per- motive supply sector before Ford and Generalcircumstances, formance data at 83 facilities over a five-year period. Ultimately, 30 facilities completed all five Motors required their suppliers to be ISO-certi- fied found minimal reductions after ISO 14001significantly help a years of the study. The participating facilities adoption. In terms of toxic releases and compli- ranged from large, publicly traded major manu- ance with regulatory requirements, environ-company to improve facturers and electric utilities to small businesses mental performance was about the same in such as auto parts suppliers and electroplaters facilities that had adopted EMSs under ISOits environmental and government organizations, including military 14001 and those that had not (Matthews 2001). bases and municipal water treatment plants.performance and Approximately 70 percent of the organizations Projects and Case Studies participating in the NDEMS study were part of a Although little empirical work exists on thebottom line larger business or government organization. impacts of EMS adoption, the literature and The final report of the study concluded case studies contain valuable information on that evidence from the pilot facilities "suggests how companies have used EMSs to improve that the introduction of an EMS can be expect- environmental and business performance. ed to be at least somewhat beneficial to the The US Environmental Protection environmental performance of most facilities, as Agency’s web site includes a case study index well as to their operating and management effi- with links to EMS success stories, several of ciencies, and in some cases to their regulatory them on SMEs.5 The EPA case studies generally compliance patterns. These results are more include an introduction to the facility, an likely for facilities that are subsidiaries of pub- overview of the planning and implementation of licly traded corporations, owing to their greater the EMS, a list of the benefits achieved, and a access to management capabilities, resources, description of the lessons learned. One case study, for example, explains how the Mott’s 4. See <http://www.environmental-performance.org/analysis/index.php>. Aspers plant, an apple juice and apple sauce 5. See <http://www.epa.gov/ems/studies/index.htm>. plant with 378 full-time employees in Pennsyl- 9 A NORTH AMERICAN PER SPECTIVE
    • vania, implemented a EMS that resulted in the In this project, 11 large companies in Guadala- production of less solid waste, reduced water jara, Mexico, signed a voluntary agreement with usage, increased recycling, savings on energy Mexico’s Ministry of Environment, Natural usage and wastewater treatment costs.6 Resources and Fisheries (Secretaría de Medio The Manual for Implementing EMS in Ambiente, Recursos Naturales y Pesca—Semar- SME, issued by the International Finance Cor- nap), now known as the Ministry of Environ- poration (IFC), also includes 15 case studies ment and Natural Resources (Secretaría de from facilities throughout the world, including Medio Ambiente y Recursos Naturales—Semar- the United States, on the actual benefits real- nat), to mentor small suppliers in implementing ized by small and medium-size businesses that EMSs. Within three months of completing the have implemented EMSs (IFC 2004). Some formal EMS training, over 80 percent of the 20 summaries of selected case studies from the IFC participating companies in the GEMP study had manual appear in Table 3.1. reduced their environmental releases, nearly 70 In Mexico, several projects have been percent had improved their work environment, undertaken to provide SMEs with technical and over 50 percent had improved their eco- assistance in implementing environmental man- nomic performance. agement systems. The Guadalajara Environ- Slightly less than 50 percent reported mental Management Pilot (GEMP), financed by improvements in waste handling, materials and the World Bank, studied the effects of EMS use energy efficiency, and compliance. The study in small and medium-size enterprises in Mexico. concludes that "gains from good housekeeping are potentially very large in the case of SMEs, 6. See <http://www.epa.gov/ems/studies/mott.htm>. and … an EMS provides a means to captureTable 3.1 Selected EMS in SME Case Studies, WorldwideCompany Environmental Benefit Cost SavingsLeff-Marvins Cleaners Inc. Replaced its old equipment with new system to The company realized a net savings of recycle PERC (perchloroethylene). Eliminated US$1,400 per month with the new system. most VOC (volatile organic compound) emis - sions and also reduced purchase of PERC from 200 gallons per month to 40 gallons per month. Reduced hazardous waste stream from over 1,900 gallons of spent PERC per year to just 35 gallons of still residues per month.Company A Introduced more efficient ways of handling Waste elimination bills were cut by 55 percent. cardboard. Reduced its waste by 577 tons in Saved staff time. the first year.Mounstevens Ltd., a manufactur- Increased staff awareness and introduced care- Expected benefits include cutting waste bills ining and retail baker ful separation of waste. half and saving US$8,800 and 26 tons of waste.Company B Instituted a facility-wide municipal waste recy- Reduced disposal costs and gaenerated enough cling program, including metal, cardboard, revenue from marketing the recyclables to fund paper, wood, plastic and glass. More than 50 the program’s operating expenses, including wages percent of the municipal waste generated by and benefits, equipment operation and mainte - the company is now recycled. nance, utility costs and program improvements.Jamestown Paint Company Reduced its use of toluol by 95 percent and Information not available. xylol by 74 percent by developing water-based products to replace solvent-based coatings.A manufacturer of power steering Installed a green sand recycling system in its Reduction in the purchase of sand from 4 mil-gears, engine timing devices and foundry that puts recovered sand directly back lion pounds of sand per year to only 80,000power transmission boxes into the processing lines, recovering about 95 pounds per year, saving on sand purchase and percent of silica sand. disposal costs. 10 ENVIRONMENTAL M ANAGEMENT SYSTE MS
    • these gains very quickly." The project’s prelimi- nary findings indicate the following: s The ISO 14001 EMS model can be applied by SMEs without any modifications, with the exception of documentation. s Although the ISO 14001 EMS model is appro- priate for SMEs, most SMEs require substantial implementation support, particularly in the areas of simplified formats, discrete mile- stones, management systems thinking andWithin three months staff assistance.of completing the s The business culture of a firm is probably a more important factor than size in determin-formal EMS training, ing whether it can implement an EMS (World Bank 1998).over 80 percent of Because the GEMP study was undertaken in thethe 20 participating early stages of EMS implementation, the longer- term economic and environmental affects ofcompanies in the EMS implementation have not been analyzed. In another project, Proyecto AdministaciónGEMP study had Ambiental Monterrey (PAAM), undertaken inreduced their Monterrey, Nuevo Leon, large companies and the Multilateral Investment Fund of the Inter-environmental American Development Bank (IADB) supported an effort by the Instituto Protection Ambientalreleases, nearly 70 (IPA), a nongovernmental association of busi- nesses in Monterrey, to train 19 SMEs in the usepercent had improved and application of a modified environmental management system based on the ISO 14001their work environ- model. One of the project objectives was to determine whether EMSs were a useful tool inment, and over 50 improving SME environmental performance. Four companies could to point to specific envi-percent had ronmental and economic benefits of participating in the project. The project’s report noted that theimproved their eco- vast majority of the "root causes" of significant environmental problems identified by the firmsnomic performance. could to be addressed through changes in man- agement practices such as improved mainte- nance, improved procedures and better training. Relatively few of the solutions, according to the report, required significant capital expenditures (Lexington Group 2002). These studies and projects point the way to understanding the potential benefits of an EMS, while serving as a reminder that many obstacles and barriers to effective EMS imple- mentation exist. 11 A NORTH AM ERIC AN PERSPE CTIVE
    • 4. THE BENEFITS AND COMMON CHARACTERISTICS OF SUCCESSFUL ENVIRONMENTAL MANAGEMENT SYSTEMS esigning and implementing an EMS can longer generating hazardous waste (IFC 2004). D have tangible benefits for business enter- prises. A system can help a company to In another example, during the development of its EMS a company in Mexico, Químicos y enhance efficiency and minimize resource use Papeles del Norte, identified the use of exces- and waste, thereby reducing costs, help to sive rinse water as a significant environmentalLower Insurance Costs ensure compliance with regulatory require- aspect of its operations: the short productionThe most reliable financial quantification ofthe benefits of an environmental manage - ments, encourage employee involvement and runs of incompatible products required thement system is often lower insurance costs; improve relations with customers. Despite vari- equipment to be rinsed between products. Thecompanies that minimize risks may receive ation in the sophistication, scope and achieve- company implemented a more systematic pro-better insurance rates. The current case stud - ments of environmental management systems, duction programming to eliminate producties, however, provide only a few examples ofsmall and medium-size enterprises that real- successful EMSs share common characteristics changeovers and increased product storageized this benefit. In one example, DESC, a that are directly related to the benefits of an capacity. The results were more efficient utiliza-holding corporation in Mexico that owns sev - EMS. The benefits and the characteristics of tion of product and storage space, water savings,eral companies from different sectors, includ-ing the chemical sector, chose to expand its successful EMSs are described in this chapter. reduced product waste and improved labor uti-company-wide EMS to include outsourced lization (Lexington Group 2002).carriers. As part of this effort, suppliers, cus- The Benefits of Environmental Reduced liability is another financial criteriontomers, carriers, terminals and all who werein the supply chain were evaluated. During Management Systems that can be used to measure the success of anthe first two years, the main focus was the Various books, articles and studies have identi- EMS. A court or the government may view acarriers, who were audited under a specific fied the benefits an environmental management company with an EMS in place more favorablyrisk reduction program. By developing toolsto evaluate the risks along its transportation system can have for a company. In this section, when determining sanctions. For example, inroutes, DESC was able to achieve a substan- these benefits are categorized into five main Nova Scotia a judge dismissed a case against atial reduction in insurance fees. In turn, the areas that are most relevant to SMEs. pulp and paper mill for a small oil spill becausecarriers, once they implemented these prac- the company had an EMS in place that addressedtices across their operations, were able tonegotiate a reduction in their own insurance. Enhanced Efficiency and Lower Costs spill issues. The judge cited the company’s dueAccidental index was reduced from six acci - EMS manuals and case studies point most fre- diligence, stating "the supervisor who found thedents in 2001 to zero in 2004. Part of the quently to the financial benefits of implementing leak . . . knew the equipment, what to do toevaluation tools used came from theResponsible Care System of Mexico’s an environmental management system. Cost sav- stop the leak and did so immediately. . . . He hadNational Association of the Chemical Industry ings are often linked with consuming fewer been instructed on what to do in the event of(Asociación Nacional de la Industria resources and producing less waste, but savings any oil spill and he did that." R. v. Stora ForestQuímica—ANIQ) can also accrue from operational efficiencies, a Industries Ltd., [1993] N.S.J. No. 330 (N.S. Prov.Source: Margarita Ferat Toscano, corporate environ- higher level of management efficiency, reduced Ct. Jun 23, 1993) Chapter 7 describes how gov-mental manager, DESC, SA de CV, e-mail messageto Ignacio González, CEC, 4 october 2004. liabilities and shorter permitting times because of ernment policies encouraging EMS usage may better relations with regulators and communities. also affect penalty calculations. Operational efficiency usually involves replacing or renovating equipment and facilities, Reductions in Resource Use, Waste and as well as improving the production process Emissions design and paying closer attention to all inputs Many SMEs rate the success of their EMSs by and outputs. Such changes can reduce inputs monitoring the resources used and the waste (energy, water, etc.) or make operations more minimized, both of which are closely related to efficient, so that production is higher, faster or cost savings. Implementing an EMS allows a cheaper than before. Costs are compared pre- company to identify opportunities for improve- and post-EMS implementation. ment and to plan expenses. Key performance Even small changes in operational efficiency indicators include: the volume of raw materials, can produce significant results. During its EMS water and energy consumption, recycling rate, identification process, one company highlighted hazardous and nonhazardous waste generation in the IFC case studies (Figure 3.1) noticed that and the number and volume of releases. Organi- one of its large machines had a serious oil leak. zations use self-generated records, bills or data The leak was quickly repaired with a $5 gasket. from various utilities to measure consumption This easy, inexpensive action cut the amount of and waste pre- and post-EMS implementation. oil consumed by the company by half, resulting Both large corporations and small and in significant cost savings. In addition, the local medium-size enterprises use EMSs to reduce municipal authority reclassified the plant as no resource and energy consumption, as well as 12 E N V I R O N M E N TA L M A N A G E M E N T S Y S T E M S
    • the volume and toxicity of waste generation. the United States, which was cited in the Nation- Fourteen of 15 International Finance Corpora- al Database on Environmental Management Sys- tion case studies claim reduced waste, con- tems study, designed its EMS without employee sumption or toxicity as companies main goals in involvement, but then engaged employees in a EMS design and implementation, as well as the series of classes and meetings to introduce and primary criteria for evaluating EMS usefulness. reinforce EMS concepts. It also trained a dozen Elsewhere, in a survey of 580 manufacturing employees from the company to act as internalFourteen of 15 plants with more than 50 employees, Florida auditors. By contrast, another company cited in and Davison (2001) found that facilities with the NDEMS study, a 350-person manufacturingInternational Finance EMSs resoundingly pointed to recycling and plant, selected a wide range of employees, from reductions in air emissions and solid waste and managers to engineers to line operators, toCorporation case electricity use as evidence of facility-level make up the team responsible for creating the improvement. EMS. The company considered employeestudies claim reduced engagement in the design process as importantwaste, consumption Regulatory Compliance Another frequent indicator of a successful EMS as engagement in implementation.or toxicity as com- is achieving the goal of regulatory compliance. Improved Relations with Customers The criteria an organization selects to measure An EMS can improve relations with customers.panies’ main goals improvement can vary widely and depends on For an SME, improved relations usually means the company’s compliance history and regulato- larger purchasers in a dominant market position,in EMS design and ry burden. Management can use an EMS to such as Ford and GM, which require their sup- monitor the legal requirements and thereby plan pliers to be ISO 14001-certified. Smaller compa-implementation, as expenses associated with permitting, reporting nies, however, may also find that an EMS means and monitoring to ensure compliance with the wider appeal in a more local market. For exam-well as the primary law. Ideally reducing the frequency and severity ple, Framboisière de lEstrie, a berry farm in of violations and the associated costs. Quebec, was one of the first two farms with ISOcriteria for evaluat- An EMS can also help a company to pre- 14001 certification in North America (see side- pare for a more stringent application of environ- bar). It markets its environmental improvementsing EMS usefulness. mental regulations by the government. For and the positive economic benefits it has reaped example, the IFC case studies include the from ISO certification. example of a manufacturer of office furniture that eliminated methyl chloroform from its The Benefits and Common Characteristics cleaning and fastening processes and reduced of Successful Environmental Management the volume of emissions of volatile organic The success of an organization’s EMS can be compounds (VOCs) by converting to a powder- evaluated by monitoring the organization’s based coating system. These pollution preven- progress toward meeting its environment-relat- tion alternatives saved the company more than ed objectives and targets. Understanding the $1.1 million a year and gave the company a common characteristics of a successful EMS will return on its $1 million investment in less than help to ensure that the conditions needed to one year. This effort helped the company to support successful EMS design and implementa- comply more easily with increasingly stringent tion are present. environmental regulations and eliminated incin- eration fees for solid and liquid hazardous Designed with a Strong Business Case in Mind. wastes (IFC 2004). A successful EMS is developed with a strong business case in mind. Its purpose is to improve Employee Involvement the value of the company through risk reduc- Many companies recognize that the success of tion, revenue enhancement and cost reduction. an EMS depends on the participation of the full spectrum of employees. Indeed, employee Supported by Management and Commitment of engagement is at the heart of the Total Quality Resources. Unless the owner and upper man- Management (TQM) process on which EMS agement are committed to and supportive of the principles depend. Different types of employees EMS, it is extremely difficult to obtain the have different insights into environmental per- resources and cooperation needed to success- formance and suggestions for improvements. fully develop and implement an effective sys- Proper implementation of an EMS requires tem. The environmental policy, as endorsed and employee involvement and, if successful, cre- supported by management, defines the strate- ates as a benefit a sense of responsibility and gy of the organization and specifies the scope accomplishment among the employees. and commitments of the EMS to employees, A 90-person metal finishing company in customers and those outside the company, 13 A NORTH AMERIC AN PERSPE CTIVE
    • such as local agencies, investors and communi- of the EMS. A key element of any management ty groups. system is the opportunity it provides for learning from experience. Given the size, resources, and Engaged Employees. When employees at all variety of structures, as well as the obstacles levels of an organization are engaged in an faced by small and medium-size enterprises in EMS, it is more likely to succeed. Under a well- implementing environmental management sys-Improving the Value of the Raspberry designed EMS supported by management, indi- tems, it is important that those systems be flexi-Business vidual employees understand their roles and ble. Whenever possible, the goals andSituated at Johnville, near Lennoxville, responsibilities, receive adequate training and complexity of an EMS should be set by the com-Quebec, the Framboisière de l’Estrie stretches information, and are aware of the potential envi- pany itself. Those goals will necessarily be limit-over 11 hectares. Each year the farm growsand sells 43,000 kilograms of fruit and mar- ronmental impacts of their jobs. Typically, when ed by financial and economic considerations,kets associated products such as syrup. As a employees are engaged in such a program they including the profitability requirements of theresult of going through the ISO process, the enjoy a sense of ownership and possess the organization.farm did away with all pesticide use andreplaced fertilizers with compost, maintained motivation to make a positive contribution towater consumption while increasing produc- the success of the program. * * *tion surface by 50 percent and reduced thecardboard content of its boxes by 50 percent, Integrated into Business. The most successful With these potential benefits, why aren’t morewhich reduced its purchase, transportationand storage costs. Overall, its production EMSs are not stand-alone projects or initiatives; SMEs designing and implementing successfulcosts decreased while yield increased. they are part of the standard decision-making EMSs? One reason is that, in most cases, the process of a business. They also are integrated driving forces are not strong enough to over- into all aspects of a company’s activities, prod- come the barriers. It is essential that those pro- ucts and services. In the NDEMS study, all com- moting an EMS to such enterprises understand panies that had adopted EMSs asserted that they the drivers and barriers faced by an SME. The saw a business value in improving their environ- driving forces or barriers that are most impor- mental performance. tant depend on the type of industry, the size of the business and its customers. Clearly Defined Objectives and Targets. Success-The Case of Salsa de La Laguna ful EMSs tend to set both abstract/overarchingIn adopting an environmental management and specific/measurable goals. An abstract/system, employee engagement and buy-in overarching goal may be "transparency," where-can be particularly important when a compa - as a specific/measurable goal may be "Haveny has a recognized brand name. TheGuadalajara Environmental Management Pilot Michael document the EMS design and imple-(GEMP) study recounts the case of Salsa de mentation process" or "Reduce air emissions byLa Laguna (SLL), a 30-person Mexican com - 35 percent by 2006." Abstract/overarchingpany that makes hot sauce and supplies oneof the largest tequila manufacturers in Jalisco goals allow for creativity and problem solving,with sangrita. because managers and employees are not The company faced environmental issues bound to follow certain codes. Specific andassociated with excessive noise, the dis -charge of raw materials, generation of exces - measurable goals ensure that the abstract issive waste, effluent discharges to a lake and translated into the feasible and achievable. Thisan excessive risk of fire. SLL developed a duality also places smaller objectives in the con-comprehensive EMS by mobilizing work text of larger goals.teams to analyze and respond to problems inindustrial hygiene, raw material use and con -trol of wastes, effluent discharges and noise. Continual Monitoring and Measurement. Moni-Among the ideas that they, together with toring and measurement are always cited inmanagement and a university consultant, hadwere sorting solid waste into reusable and EMS success stories, but companies go to wide-recyclable bins, cleaning up work spaces, ly different lengths to monitor and measureimproving the maintenance of company vehi- their progress.cles, reducing effluent discharges throughwater conservation, reducing the use of sani - After setting objectives and targets, a com-tizing chemicals, requiring suppliers to use pany should devise a means of monitoring andstrong containers in order to reduce waste measurement, preferably in quantifiable terms.and loss, and rinsing out drums of orangejuice to salvage concentrate. Some of these Are changes being implemented? Are the cor-measures resulted in savings of over rect policies being pursued? Is the amount ofUS$10,000 a year. This new environmental waste being reduced, and, if so, by how much?consciousness went beyond the factory. How much money is being saved through wasteAccording to the report on the project, someworkers "began wearing T-Shirts describing reduction? Are targets being met? Are moretheir new environmental concerns, to speak effective means of reducing waste available?at local schools, and to participate in environ- Should objectives and targets be revised? Ques-mental cleanup activities in the community"(World Bank 1998). tions like these should be asked daily by any company and not limited to the start-up period 14 ENVIRONMENTAL M ANAGE MENT SYSTE MS
    • 5. DRIVERS AND BARRIERS TO EMS ADOPTION BY SMALL AND MEDIUM-SIZE ENTERPRISES riving forces are factors that create or in an environmentally responsible way. The D change an organization’s environmental performance by pushing it to utilize environ- Canadian Federation of Independent Business (CFIB) survey of SMEs revealed that respon- mental management tools, including environ- dents in the most regulated industries—that is, mental management systems. The drivers are those in the primary and agricultural sectors— usually directly related to the benefits articulat- were more likely to adopt a formal environmen- ed in the case studies in Chapter 4: enhanced tal management system. Businesses in these efficiency and lower costs; reduced resource sectors were also subject to higher levels of cus- use, waste and emissions; regulatory compli- tomer requests for EMSs (CFIB 2001). ance; employee involvement and improved relationships with customers. Other drivers Driver - Customer Requirements might be motivators such as building relation- For a small and medium-size business, one tan- ships with government agencies, achieving gible value in creating and implementing an faster approval of projects, seeking fewer EMS is that such a step will meet the require- inspections and less scrutiny, creating a good ments of larger customers, or dominant buyers. public image and responding to pressures from Large multinational companies are increasingly internal stakeholders within a company. requiring their suppliers to adopt environmental Unlike large companies with a recognized management systems—a development that brand name and large public exposure, smaller directly affects SMEs. By choosing not to do businesses, especially suppliers to larger com- business with firms that do not adhere to theirThe owner of the panies, are unlikely to implement an EMS as a environmental policies, large multinational com- way enhance their reputation with the public. panies are able to greatly influence the environ-business must believe The owner of the business must believe that the mental impacts of their smaller suppliers and EMS will create real tangible value for the busi- distributors. DaimlerChrysler, Ford, Generalthat the EMS will ness. When a strong business case exists, the Motors and Sony, for example, now require ISO business owner’s active support for the design 14001 certification of their primary and second-create real tangible and implementation of the EMS is critical to ary suppliers. Large companies impose thesevalue for the business. help ensure its success. requirements for a variety of reasons. Among them are reduced risk, new European Union Driver - Economic Factors regulations restricting substances in consumer An EMS can, in many instances, create real tan- products, direct financial savings, improved gible value for a business in risk reduction, rev- relations with their customers or regulators and enue enhancement and cost reduction. A small recognition of responsibility for their environ- background survey conducted by the National mental impacts. Environmental Education and Training Founda- An example of the effect large corpora- tion (NEETF) in the preparation of its 2001 tions can have on their supply chain is illustrat- report "Standardizing Excellence: Working with ed by the Environmental Performance Smaller Businesses to Implement Environmental Agreement between the Canadian Automotive Management Systems" found that the top five Parts Manufacturers’ Association (APMA), Envi- factors likely to drive EMS adoption in smaller ronment Canada Ontario Region and Industry enterprises were Canada. The agreement, entered into in 2002, committed participating APMA member compa- 1. business benefits of an EMS nies to be ISO 14001–registered by December 2. tax breaks for EMS implementation 2003 and to take action to reduce emissions of 3. customer EMS purchasing requirements volatile organic compounds, carbon dioxide and for suppliers other substances. APMA members collectively 4. insurance benefits of an EMS account for over 90 percent of the $35 billion 5. a performance-based regulatory system. automotive parts industry production in Canada. This agreement was a response to the supply chain In heavily regulated sectors, an EMS may requirements of DaimlerChrysler, Ford Motor be a way to demonstrate to regulators, lenders, Company and General Motors. Specific targets insurers and buyers that a company is managed and timelines for this initiative are an aggregate 15 A NORTH AMERIC AN PERSPE CTIV E
    • Mexico’s National Association of the Chemical Industry (Asociación Nacional dela Industria Química—ANIQ) was the first association to design its ResponsibleCare program as an environmental health and safety management system(Sistema de Administración de Responsabilidad Integral—SARI). reduction of 20 percent in VOCs and 3 percent for becoming a member of ANIQ. Members must in carbon dioxide and CEPA toxic substance commit themselves is to actively participating in substances (where applicable) by 2007.7 assistance activities designed to support the A recent pilot project by the World Envi- Responsible Care program in member SMEs. ronment Center (WEC) illustrates this trend. The Responsible Care had a strong impact on WEC is a not-for-profit organization composed the decision by the National Association of of many large multinational corporations. The Chemical Distributors (NACD) to develop an Center’s Supply Chain Management Partnership environmental code of its own (the NACD has promotes the adoption of improved environ- members in Canada and the United States, and mental management techiniques and cleaner many of its members are small businesses). The production programs among companies that NACD code is based on Responsible Care, but supply WEC member companies. The WEC is is stronger in several respects; it requires third- implementing pilot projects with multinationals party verification of members’ performance, as and a select number of their suppliers in Mexico, well as health, safety, and security, and has a Brazil and China (where the project is in the history of suspending and terminating members planning stage). In Mexico, the project involves for noncompliance (Nash 2000). Janssen-Cilag, an operating subsidiary of John- The Environmental Commitment and son & Johnson that produces drugs for clients Responsibility program of the Canadian Electric- around the world, and Alcoa Fujikur, whose ity Association (CEA), which counts small and lines of business include automotive and elec- medium-size businesses among its members, tronic distribution systems and fiber-optic cable. stipulates that adoption of an ISO 14001–con- sistent EMS is a condition of membership. Driver - Trade Association Requirements Under the Environmental Commitment and Some trade associations require their members Responsibility program, a verification team visits to have an environmental management system a selected number of utilities each year to deter-The Importance of the Business Owner in place or to adhere to environmental codes of mine whether the EMS implemented satisfiesFor small and medium-size enterprises, a cen- conduct. For example, national chemical associ- the program’s requirements.tral factor in the implementation of an envi-ronmental management system is the ations in 52 countries run Responsible Care® For SMEs, market forces are particularlyleadership of the top manager in pushing for programs. Under Responsible Care, member important. This is especially true in Mexico,continual improvement. Observers have companies must commit to adopting a set of which has a large, informal economy and whosenoted that a commitment to achieving envi-ronmental improvements is a far bigger factor guiding principles, codes, guidelines and check- smaller businesses may be subject to fewer reg-in achieving environment results than merely lists on health, safety and environmental matters, ulatory pressures. A recent Inter-Americanhaving an EMS in place; an EMS just makes a and to developing indicators and verification Development Bank study of ISO 9000, and to acompany be able to achieve these improve-ments. In fact, a Canadian Federation of Inde- procedures. They must communicate their "good lesser degree ISO 14001, in certain areas ofpendent Business (CFIB) survey found that faith efforts" to implement the codes to employ- Latin America, including Nuevo León in Mexico,for 87 percent of respondents the personal ees and stakeholders.8 found that a key determinant of the quality ofviews of owners were the primary motivation Mexico’s National Association of the the environmental management system was thefor improved environmental performance(CFIB 2001). Chemical Industry (Asociacion Nacional de la extent to which management demanded the The Guadalajara Environmental Manage- Industria Quimica—ANIQ) was the first associa- system (IADB 2004). However, despite thesement Pilot (GEMP) and Proyecto Adminis- tion to design its Responsible Care program as market forces, for most SMEs the barriers totración Ambiental Monterrey (PAAM) studieshighlight the importance of manager support an environmental health and safety management EMS adoption outweigh the drivers.for employee involvement in the EMS process. system (Sistema de Administracion de Respons-Those managers who enthusiastically adopted abilidad Integral—SARI). It incorporates elements Barriers to EMS AdoptionEMS concepts and who worked with theiremployees achieved successful EMS imple- of ISO 14001 and fulfills other requirements of Barriers are factors that hamper and can evenmentation during the study time period, different known management systems related to bring to an end the design, implementation andwhereas those managers who did not with environmental, health and safety issues. Adoption operation of an environmental management sys-their employees failed. A manager who seesan economic benefit in EMS implementation of the Responsible Care program is a condition tem. Even when driving forces exist, SMEs mayand actively supports its design and develop- face imposing barriers when designing and 7. B. Brad Cummings, manager, Pollution Prevention andment is a critical factor in EMS implementation Innovative Technologies, Environment Canada Ontario Region, implementing an EMS that larger companies are(Lexington Group 2002). e-mail message to Tim Whitehouse, CEC, January 28, 2005. less likely to face. A Lack of knowledge about 8. See <http://www.responsiblecare.org>. and awareness of environmental management 16 ENVIRONMENTAL MANAGE MENT SYSTEMS
    • Barriers to EMS Implementation MOTIVATION RESOURCE ISSUES • Lack of customer requirements or demand to • Concern about the cost and time needed to have an environmental management establish an EMS system • Concern about the operational management • Misconception that environmental issues are a costs after implementation low organizational priority or are believed to be • Perception that an EMS is complicated and under control unattainable • Belief that an EMS is not important or relevant to the business or capable of adding to the bottom IMPLEMENTATION CONCERNS line • Fear of discovering noncompliance with regula- • Lack of public or nongovernmental organization tions or permits pressure to implement an EMS • Fear of discovering or uncovering internal prob- • Belief that an EMS is the current management lems within the organization (staff issues, process "flavor of the month" issues, company policies, etc.). • Belief that an EMS is not widely accepted or used in an industrial sector or geographic area Source: NEETF 2001. systems are big barriers to their implementa- fall into three categories: motivation, resource tion. A 2001 Canadian Federation of Indepen- and implementation issues (see box). dent Businesses survey found that nearly In Europe, a 1999 analysis of 33 studies three-quarters of the 4,322 respondents to an published between 1994 and 1999 found that environmental survey of its members were not in small and medium-size enterprises "internal aware of the ISO 14000 series (CFIB 2001). barriers to EMS adoption are more important About half the federation members have fewer than external ones" (Hillary 1999) The barriers than five employees. identified in that analysis are closely related to Studies and academic articles also general- the barriers listed by NEETF (see sidebar). The ly note that SMEs are less likely to implement analysis does mention two types of barriersKeeping the Costs Down EMSs, because they are largely occupied with worth highlighting. One is that EMS implemen-Here are two examples of the many efforts the day-to-day concerns of keeping their busi- tation is "an interrupted and interruptiblebeing made to address the ISO certification nesses viable and retaining existing customers. process in SMEs," and the other is "the lack ofcosts that SMEs may face. When compared with larger businesses that are sector specific guidance and material tailored toENVIROREADY not a subsidiary of a multinational, SMEs gener- different sizes of the firms" (Hillary 1999).EnviroReady, launched from Canada with ally do not have dominant market positions; The European analysis also raised the issuegovernment and private sector support, is they have less well-defined management struc- of the cost of certification, which echoes thepositioned between self-declaration and thirdparty certification. Under this process, the tures; they have no support from a parent com- concerns raised by NORMAPME about the highcompany signs a self-declaration of confor- pany; they generate less environmental data; cost of ISO certification. Because small firmsmance with EMS requirements. This docu - they have less environmental expertise and generally do not have in-house expertise, theymentation is then examined by a professional fewer financial and technical resources available usually need to hire consultants to help themaccountant for evidence that the client’s EMSmeets or exceeds ISO 14001 certification. If to pursue environmental management; and they design, implement and verify the EMS andso, the business is issued an EnviroReady tend to have less interaction with regulatory auditors to certify the EMS, costs which largerReport <http://www.14000registry.com>. agencies (Hillary 1999; CFIB 2001;Coglianese firms can more easily handle.THE HACKEFORS MODEL and Nash 2002). The US NDEMS study noted that manyThe Hackefors Model was developed to Several efforts have been made to identify firms were not measuring or monitoring theimplement group ISO 14001 certification in existing barriers to EMS adoption in both the EMS-related aspects of their operations asSweden. Originally, the network consisted of26 SMEs in the Hackefors Industrial Park out- United States and Europe. In the United States, actively as they should. Only 27 of the 83 com-side the city of Linköping, Sweden. the National Environmental Education and Train- panies studied actually quantified data for envi-Established in 1995, the group was by 1999 ing Foundation (NEETF) identified some of these ronmental performance, and only 32 of 83certified under ISO 14001 through the appli -cation of group certification, although each barriers in its report Standardizing Excellence: quantified the financial benefits. The rest reliedindividual enterprise has its own EMS. By Working with Smaller Businesses to Implement more on a qualitative assessment, which can be2002, 24 networks and over 450 SMEs were Environmental Management Systems (NEETF attributed to a failure to establish clear objec-using the model to achieve ISO 14001 group 2001). The report, developed by means of a tives in the EMS design (NDEMS 2003).certification. Each network has a central coor -dinator, a steering committee and an EMS grant from the US Environmental Protection Within North America, government-sup-group. These networks have helped to signif - Agency, grew out of the findings of workshops ported programs are available to help SMEsicantly lower the costs of EMS design and held for government and private sector partici- improve their environmental performance.implementation and overcome the size andresource issues faced by SMEs. pants who identified practical and effective ways Included as part of these programs are govern- to promote and design EMSs and to help SMEs ment efforts to encourage SMEs to design and implement them (NEETF 2001, 10). These barriers implement EMSs. 17 A NORTH AM ERIC AN PERSPE CTIVE
    • 6. TECHNICAL ASSISTANCE AND OUTREACH omestic policies and programs that dissemi- One example of the type of support theseD nate information, advice and technicalassistance tools on environmental management partnerships can bring is Bain Ultra, located near Quebec City. Bain Ultra, which has 225systems are important ways of encouraging the employees, produces baths, hot tubs and show-adoption of those systems by small and medi- er cases. With the assistance of EnviroClub, theum-size enterprises. Technical assistance tools company identified the significant environmen-can help address the environmental issues iden- tal aspects of its business and developed a plantified during EMS implementation. to implement an environmental management Technical assistance programs for SMEs system so that it could achieve its ISO 14001can be found in Canada, Mexico and the United certification by 2006. This exercise allowed theStates. Environmental management systems do company to target several measures, easilynot provide an organization with explicit tools implemented that could improve the company’son how to manage waste, prevent discharges or environmental performance: recuperating poly-reduce air emissions, therefore, technical assis- styrene scraps; improving the pulverizationtance programs can help to address the techni- process for manufacturing baths and showers;cal shortcomings of smaller businesses and changing the pulverized resin for one with a 7respond to the specific needs of a particular percent lower styrene content; and reducingindustrial sector. Outreach programs and tech- acetone emissions by 30 percent. These meas-nical assistance tools tend to be most successful ures, which will be carried out during 2005, arewhen they are developed and delivered at the projected to save the company over C$300,000regional level and tailored to the specific needs a year.9of businesses.Technical Assistance in CanadaEnvironmental Canada, Industry Canada and theprovincial and territorial governments have pro-grams designed to improve the environmentalperformance of SMEs (see Table 6.1). Theseprograms are largely developed to support nonregulatory pollution prevention initiatives target-ing SMEs (Environment Canada 2003). Programs such as the Eco-Efficiency Part-nership in British Columbia <http://www.scbc.org/eep>, the Eco-Efficiency Centre in NovaScotia <http://www.mgmt.dal.ca/sres/eco%2Dburnside/> and the EnviroClub of Quebec<www.enviroclub.ca/en/contact> exemplify thegeneral approach to improving the environmen-tal performance of SMEs in Canada. These pro-grams are supported by federal, provincial andcorporate sources. The program in BritishColumbia provides financial assistance for anenvironmental audit to identify potential efficien-cy gains. The audit is followed by a report devel-oping site-specific options and a business plandetailing the costs and benefits of implementa-tion. In addition to performing environmentalreviews, the Eco-Efficiency Centre in Nova Sco-tia and the EnviroClub in Quebec offer tools,technical assistance and guidance on "best prac- 9. F. Huppé, acting head, Toxic Substances and Prevention,tices" within an industry and encourage environ- Environment Canada, e-mail message to Tim Whitehouse, CEC,mental cooperation among businesses. February 10, 2005.18 ENVIRONMENTAL M ANAGE MENT SYSTE MS
    • Table 6.1 Sample Technical Assistance Programs in CanadaProgram DescriptionIndustry Canada Operates an eco-efficiency web site offering tools and<http://strategis.ic.gc.ca/epic/ best practices. Sponsors, with Natural Resources Canadainternet/inee-ee.nsf/en/Home> and the National Research Council, free two-day work- shops for SMEs on eco-efficiency (which includes EMSs). Involved in the Environmental Supply Chain Management Pilot Project, a voluntary initiative aimed at reducing greenhouse gas emissions from SMEs in the Canadian manufacturing sector.National Research Council, Industrial Directed at building the capacity of Canadian SMEs.Research Assistance Program Offers assistance for improving resource efficiency.(NRC-IRAP) <http://dfe-sce.nrc- Produces "Design for Environment" online resources tocnrc.gc.ca/dfestra/dfestra_e.html> facilitate the integration of environmental considerations into the product and process designs of SMEs.Toronto Region Sustainability Provides one-stop pollution prevention technical assis-Program (TRSP) tance for SME manufacturers in the Greater Toronto Area<http://www.oceta.on.ca/toronto.htm> (GTA), and a 50% cost-share funding incentive. The GTA is Canada’s largest and busiest urban area, and includes a number of diverse manufacturing SMEs that generate smog, greenhouse gases, and toxic releases to the air and sewers, and hazardous wastes.Business Water Quslity Program Designed to assist SMEs in preventing spills to groundwa-(BWQP) ter, surface water and sewers in the Regional Municipality<http://www.oceta.on.ca/bwqp.htm> of Waterloo (Ontario). Grants are provided to local SMEs to cost share facility a review and assessment, and to implement best management practices, including EMSs. This includes an inventory of chemical substances; identi- fies risk areas and potential for spills; reviews pollution prevention plans; and identifies opportunities for SMEs to improve environmental performance.Business Air Quality Program (BAQP) A pilot program to reduce criteria air pollutants generated by SME industrial manufacturing operations in Southwest Ontario. The goal is to identify opportunities for SMEs to reduce emissions of key criteria air pollutants (nitrogen oxides, sulphur dioxide, particlulate matter and volatile organic compounds), to improve their environmental per- formance and economic competitiveness.Canadian Environmental Technology The three (3) CETACs provide business services toAdvancement Centres (CETACs) Canadian entrepreneurs, start-up companies and SMEs to<http://www.oceta.on.ca> support the development, demonstration, verification and<http://www.cetacwest.com> deployment of innovative environmental technologies.<http://www.enviroaccess.ca> This is accomplished through the provision of support services such as general business development counseling, market analysis, assistance in raising capital, and technical assistance.Enviroclub, Quebec Assists SMEs in Quebec by providing access to expertise<http://www.ec.gc.ca/cppic/Search and financing for pollution prevention projects, including/en/SearchDetail.cfm?ID=2346&xTa EMSs. Provides workshops and professional consultingble=nopp_tbl> services to members for a fee.19 A NORTH AM ERIC AN PERSPE CTIVE
    • Eco-Efficiency Partnership (EEP), Helps small and medium-size manufacturing enterprisesBritish Columbia to find ways to become more competitive, using fewer<http://www.c2p2online.com/main. resources such as energy, water or materials.php3?doc_id=381&section=154> Is a cost-sharing arrangement with participating compa- nies, in which EEP provides matching funds to a compa- ny to pay for consultants able to recommend process improvements that make financial and practical sense.Eco-Efficiency Centre, Nova Scotia Helps companies to adopt good environmental practices,<http://www.mgmt.dal.ca/sres/ while improving the efficiency of individual companies,eco-burnside/> primarily SMEs. Encourages companies to commit to con- servation goals and to cooperate and exchange successful experiences. Also provides information on eco-efficiency, offers training sessions and workshops and contributes to education and research.Reference Center for the Life Cycle Provides tools and training for life cycle management andAssessment, Interpretation and assessment. Is a partner in the UN EnvironmentManagement of Products, Processes Program/Society of Environmental Toxicology andand Services (CIRAIG, Chemistry Life Cycle Initiative, which is based in academic<http://www.congresbcu.com/ciraig/> institutions in Montreal.Technical Assistance in Mexico and of the efforts of the sponsors of theAmong the services available to help Mexican Guadalajara Environmental Management PilotSMEs with the technical issues associated with (GEMP) and Proyecto Administración Ambien-environmental management are the Enterprise tal Monterrey (PAAM) studies (see Chapter 3).Committee for Sustainable Development and In the Guadalajara project, this supportthe Mexican Center for Cleaner Production. included assigning a consultant to each SME to Technical assistance is particularly impor- provide implementation assistance as well as atant in Mexico, where SMEs are likely to face mentor company to monitor progress (Worldhigher costs than those in Canada and the Unit- Bank 1998). In the World Environment Centered States and greater technical hurdles and project in Mexico, partners held a workshop oninfrastructure difficulties in implementing and cleaner production and environmental manage-certifying to the ISO 14001 standard (Pacific ment training for suppliers and conducted one-Institute for Studies in Development, Environ- day follow-up visits to the suppliers (WEC 2004)ment, and Security 2000). Technical assistancefor small and medium-size businesses takingsteps to prevent pollution and introduce cleanerproduction techniques is an important compo-nent of the World Environment Center’s effortTable 6.2 Sample Technical Assistance Programs in MexicoProgram DescriptionCommission for Private Sector Promotes sustainable practices such as eco-efficiency andStudies in Sustainable Development social responsibility in Mexico’s industrial sector. Offers(Comisión de Estudios del Sector workshops and seminars on sustainable development,Privado para el Desarrollo pollution prevention and environmental managementSustentable—cespedes, systems.<http://www.cce.org.mx/cespedes>Mexican Center for Cleaner Serves as a vehicle for the UN Industrial DevelopmentProduction (Centro Mexicano para la Organization (UNIDO) and Mexican National PolytechnicProducción Más Limpia) Institute to implement pollution prevention projects.<http://www.cmpl.ipn.mx>20 ENVIRONMENTAL M ANAGEMENT SYSTE MS
    • Technical Assistance in the United States sheets were completed in October 2004 andIn the United States, numerous state and feder- will be updated periodically to ensure that theal agencies, nonprofit organizations and aca- information they contain is useful to the targetdemic institutes offer programs that encourage sectors. They are designed to be used with theEMS research, training and implementation. In publications listed above: "Practical Guide . . ."addition, the US EPA has established partner- and the "Documenting . . . Workbook." Theseships with state agencies, universities and other fact sheets can be found at <http://www.small-organizations to maximize resources and sup- biz-enviroweb.org/pollution/BMPs.htm>.port for EMS programs. The US EPA’s web site at <http://www. epa. There are a wide variety of partnership pro-gov/ems/index.htm> provides access to grams providing technical assistance, trainingresearch papers, best practices, guidance docu- and tools to help with EMS development. Thements and EMS templates. An example of the National Directory of EMS Technical Assistancedocuments available is Environmental Manage- Providers (TAP Directory) provides user friendlyment Systems: An Implementation Guide for links to a wide variety of EMS assistance resourcesSmall and Medium-sized Organizations (reis- in the 50 states <www.epa.gov/ems/index.htm>.sued November 2003), providing simple, useful Also, the Public Entity EMS Resource Centerinformation and case studies to help small and (PEER) web site at <www.peercenter.net/>medium-size businesses develop EMSs. provides a broad array of information and tools US EPA’s Small Business Division serves as to help public entities (primarily local govern-the primary entry point through which small ments) understand and adopt environmentalbusinesses can access US EPA information. It management systems (EMSs) for their opera-also facilitates communications between the tions. The PEER Center is a collaborationsmall business community, including national between the office of Water at US EPA and thetrade associations, and the US EPA. In 2003, the Global Environment and Technology Founda-US EPA issued its revised "Small Business Strat- tion (GETF). In addition, a number of organiza-egy" that is designed to bring unity and tions around the country called EMs Localimproved effectiveness to Agency-wide efforts Resource Centers, or PEER Centers, are reach-to assist small businesses in improving their ing out to local governments to help themenvironmental performance. adopt EMSs. The US EPA Small Business Division has Twenty-four states have developed publicdeveloped several documents to help small policy–related EMS policies and programs,businesses design and implement an EMS. internal EMSs or environmental laws that recog-These documents include: nize EMSs.10 Many of these programs promote multimedia environmental management,s Practical Guide to Environmental Manage- rewarding companies that achieve superiorment: The Guide describes a common sense environmental performance by providing regu-process for improving the small business’s envi- latory incentives and public recognition similarronmental management activities and can be to US EPA’s National Environmental Perfor-found at <http://www.smallbiz-enviroweb.org/ mance Track program (see Chapter 7).html/pdf/EM_Guide0902.pdf> Some US states coordinate and share their experiences (in an unofficial capacity) on EMSs Documenting Your Environmental Manage- programs through the Multi-State Workingment Plan—A Workbook for Small Business: Group on Environmental PerformanceThis workbook is for small business owners who (MSWG), which is composed of representativesworry that what they don’t know can hurt them of federal and state agencies, businesses, aca-and want to move away from "fire fighting" envi- demia and nongovernmental organizationsronmental issues. It shows how to get take a (NGOs). The organization was created to pro-proactive stance without disrupting their day-to- mote the use of EMSs through public and pri-day business operations. It can be found at vate policy innovation. The MSWG develops<http://www.smallbiz-enviroweb.org/html/pdf/ and provides information on credible and effec-Documenting_EMP.pdf> tive environmental management systems and other public policy tools that can be used ins A series of environmental best management pursing improved environmental performancepractice (BMP) fact sheets for small businesses.The BMPs cover the following sectors: bakery, 10. These states are Arizona, California, Colorado, Connecticut, Florida, Illinois, Indiana, Iowa, Kentucky, Louisiana, Maine,food services, furniture finishing, health care, Massachusetts, Minnesota, New Hampshire, North Carolina, Ohio,hotels, landscaping, machine shops, marinas, Oregon, Pennsylvania, South Carolina, Texas, Vermont, Virginia,retail stores, and service stations. These fact Washington and Wisconsin.21 A NORTH AM ERIC AN PERSPE CTIVE
    • and sustainability. For example, the External an organization’s EMS if it has these externalValue EMS Voluntary Guidance: Gaining Value value aspirations:by Addressing Stakeholder Needs (March • Achievement and Demonstration of Legal2004) offers advice to organizations that wish to Compliance;develop an EMS that, in addition to providing • Involvement of External Stakeholders;improved internal value, delivers measurable • External Communications: Transparency andand reliable value to external audiences, such as Reporting.governmental authorities, local communities,customers and suppliers, environmental groups, The MSWG is also developing a web-basedand investors and the financial community, news source, library and e-network for EMSamong others. This Guidance focuses on three practitioners and leaders. It can be found at:key elements that should be addressed within <http://www.mswg.org>.Table 6.3 Sample Technical Assistance Programs in the United StatesProgram DescriptionUS EPA’s Small Business Serves as the advocate for small businesses and as theirOmbudsman (SBO)/Small Business gateway to the Agency. Facilitates communicationsDivision (SBD) between small businesses and EPA to assist in resolving<http://www.epa.gov/sbo> and issues. Works within the Agency to increase their under-<http://www.smallbiz-enviroweb. org/> standing of small businesses in the development and enforcement of environmental regulations. Most recently developed a Small Business Strategy and Implementation Plan to coordinate and unify the more than 100 EPA small business initiatives. Oversees the State Small Business Ombudsmen and State Small Assistance Programs that were established under section 507 of the 1990 Clean Air Act Amendments. Has produced several tools for small businesses including: Practical Guide to Environmental Management for Small Businesses and Documenting Your Environmental Management Plan—A Workbook for Small Business (see appendix A for more information). Works to enhance the environmental performance of 12US EPA’s Sector Strategies Programs manufacturing and service sectors: agribusiness, cement,<http://www.epa.gov/ispd/program. colleges and universities, construction, forest products,html> iron and steel, metal casting, metal finishing, paint and coatings, ports, shipbuilding and ship repair, and specialty batch chemicals. Aims to improve environmental per- formance through a knowledge-based approach to prob- lem solving and implementation of systematic manage- ment of environmental issues. Will produce EMS imple- mentation guidance documents for each of the targeted sectors Works in partnership with individual industry sectors toDesign for the Environment (DfE) encourage the incorporation of environmental, health andEMS program safety considerations into the design of processes and<http://www.epa.gov//dfe/pubs/ products. For example, works with the Screen Printingiems/iems_guide/index.htm> and Graphic Imaging Association (SGIA) International Partnership to develop an industry-wide EMS that specifi- cally address the environmental health and safety issues arising from the inks used in screen-printing. The SGIA developed tools and templates for conducting gap analy- ses, creating EMS manuals, evaluating processing, and auditing.22 ENVIRONMENTAL M ANAGEMENT SYSTE MS
    • Manufacturing Extension A nationwide network of nonprofit centers that supportPartnerships small and medium-size businesses. Centers are located in(MEP) <http://www.scitechre- all 50 states and linked through the National Institute ofsources.gov/Results/show_result. Standards and Technology (NIST) of the US Departmentphp?rec=2319> and of Commerce. Uses the EMS-based methodology of<http://www.mep.nist.gov/ "clean manufacturing" to help companies reduce environ-environment/environment.htm> mental impacts and costs through resource efficiencies and process optimization. Clean manufacturing focuses initially on specific processes, but the principal concepts encourage continuous improvement through systematic management. MEP program is now working with the US EPA’s Green Supply Chain program in which major com- panies help to recruit their SME suppliers for "clean (and lean) manufacturing" projects.Green Suppliers Network As an innovative collaboration among industry, US EPA<http://www.epa.gov/p2/programs/ and 360vu, a provider of technical assistance to US manu-gsn.htm> facturers through its national network of MEP aims to work with all levels of the manufacturing supply chain to achieve environmental and economic benefits. By employing "lean and clean" methodologies, companies can learn how to decrease the use of toxic and nonrenew- able materials, establish systems to use energy more effi- ciently, improve the use and selection of more environ- mentally friendly raw materials, institute work practices to reduce labor and costs, and promote a culture of greater employee participation in improvement activities.US EPA National Environmental Offers a wide variety of public and private sector environ-Compliance Assistance mental compliance information. Visit the Clearinghouse’sClearinghouse (Clearinghouse) collection of links to materials on EMSs at <http://cfpub.<http://www.epa.gov/clearinghouse> epa. gov/clearinghouse/index.cfm?TopicID=C:10:300:EMS>The Sector Notebook series, The Sector Notebook series is a unique set of profiles<www.epa.gov/compliance/ containing a wealth of sector-specfic environmental infor-sectornotebooks.html> mation. Unlike many resource materials, which are organ- ized by air, water and land pollutants, the over 35 Notebooks provide a holistic, "whole facility" approach by integrating manufacturing processes, applicable regula- tions and other relevant environment information.Compliance Assistance Centers Created through EPA sponsored partnerships with industry,<www.assistancecenters.net> academic institutions, environmental groups, and other agencies, help businesses, local governments and federal agencies understand Federal environmental requirements and save money through pollution prevention techniques. Through web sites, telephone assistance lines, fax-back systems, e-mail discussion groups and more, the Centers aim to help address real-world issues in language that is used by the regulated entities.Pollution Prevention Resource A consortium of eight regional pollution prevention infor-Exchange (P2Rx) <www.p2rx.org> mation centers, funded in part through grants from EPA. Represents a broad constituency, including state and local pollution prevention programs, manufacturing extension partnerships, cooperative extension and nonprofit organi- zations.23 A NORTH AM ERIC AN PERSPE CTIVE
    • 7. INCENTIVE PROGRAMS AND POLICIES ithin Canada, Mexico and the United under EAP. Profepa also provides interested W States, the traditional environmental regu- latory actions are being carried out in conjunc- organizations with a guide for performing self- assessments of environmental impact and man- tion with non regulatory voluntary programs agement in preparation for the environmental designed to provide incentives for greater envi- auditing process. Once the audit has been com- ronmental performance. Each country has pro- pleted, the action plan implemented and all the grams designed to encourage the use of preventive and corrective measures have beenSeals of Performance Granted by the environmental management systems; however, taken, organizations receive Profepa’s certifica-Mexican Environmental Audit Program unlike Europe’s Eco-Management and Audit tions of Clean Industry or Environmental Compli-CLEAN INDUSTRY SEAL: Granted to manu- Scheme, which requires the use of environmen- ance. Organizations that go further to achieve facturing companies that have tal management systems in larger industrial stronger environmental performance under pol- fully complied with the plan of facilities (see Chapter 2), these efforts are largely lution prevention and eco-efficiency schemes action resulting from the envi- ronmental audit (which voluntary and incentive-based. are granted the recognition of Environmental involves, among other things, Both Mexico and the United States have Excellence. Upon receiving the certification orcomplying with current environmental regu- recognition programs in which the use of an recognition, organizations can use Profepa’slations). EMS by a company is one factor the govern- performance seals to promote their publicENVIRONMENTAL COMPLIANCE SEAL: ment considers in determining whether to rec- image (see sidebar). Granted to organizations that ognize a company as a top environmental Profepa acknowledges that organizations do not use industrial processes performer. Although no federal incentive pro- that have an EMS in use may reach and main- in their operation, but have grams exists in Canada, the Canadian Environ- tain environmental compliance more easily. complied with the recommended mental Protection Act (CEPA) recognizes the However, while having an EMS in place is a plan of action. use of certified environmental management sys- requirement for achieving the Recognition ofENVIRONMENTAL EXCELLENCE SEAL: tems to achieve performance requirements and Environmental Excellence, it is not mandatory Granted to organizations, rec- gives the courts the authority to require a com- for the Clean Industry or Environmental Compli- ognized by an "excellence pany to become certified in a "recognized" EMS ance Certifications . group," that have engaged in self-designed initiatives standard as part of the court-ordered option. The performance seals are registered at directed toward preventing Some Canadian companies have been required the Mexican Institute of Industrial Property. 12pollution, seeking community outreach, by the courts to develop a certifiable EMS as Once granted to an organization, a seal can bedeveloping suppliers, solving local environ- part of a sentence.11 displayed at its facilities, in its publicity and withmental problems and participating in pollu - its products and services. The right to use thetion reversion programs, among other meas-ures. To obtain the seal, organizations must Incentive Programs and Policies in Mexico seals is valid for the period of time specified inpresent documented and operational proof Mexico’s Environmental Auditing Program the agreement, but that period cannot exceedof environmental compliance and the avail - (EAP) is based on a voluntary agreement two years.ability of an environmental management between the Federal Attorney for Environmen- In over 12 years of operation, the programsystem. tal Protection (Profepa) and an organization. has certified 1,623 organizations; 1,454 organi- Under the EAP, a plan of action is devised to zations currently have active certification. Most recommend preventive and corrective meas- of the organizations certified are large private ures related to air, water, soil, solid and haz- and public companies located in large and ardous waste, noise, industrial safety and medium-size cities such as Mexico City, Mon- hygiene, energy, natural resources, environ- terrey, Guadalajara, Tijuana and Puebla. mental risk, environmental management and any other issue with potentially adverse impacts Incentive Programs and Policies in the United on the environment. States Participating organizations are evaluated US EPA’s National Environmental Performance by independent auditors accredited by the Track program recognizes top environmental Mexican Accreditation Entity, which has an performers among participating public or pri- agreement with Profepa to audit companies vate US facilities of all types and sizes whether public or private (US EPA 2004a). To be recog- nized under Performance Track, facilities must 11. Notable cases include Prospec Chemicals (1996), Coretec (1998) and Alberta Waste Management Facility (1999). have: 12. The misuse of the seals is subject to sanctions and fines under the Industrial Property Law and its regulation. 24 ENVIRONMENTAL M ANAGEMENT SYSTE MS
    • Ideal Jacobs Corporation • an environmental management system in The EMS Strategy encourages carefullyThe Ideal Jacobs Corporation of Maplewood, place for at least one full cycle that has been designed experimentation to determine whetherNew Jersey, is an ISO 9002/14001 registered assessed by an independent party EPA and the states, by considering EMSs in per-facility that specializes in printing and the fab-rication of plastic and metal parts. • a history of sustained regulatory compliance mits and regulations, can achieve better environ- and a commitment to continued compliance mental results at less cost, improve compliance,OVERVIEW • past environmental achievement and a com- target resources more effectively, and enhanceIdeal Jacobs is one of the smallest facilities inUS EPAs National Environmental Performance mitment to continuous environmental improve- public involvement. It states that although EMSsTrack program, and yet it boasts an efficient ment cannot guarantee any specific level of perform-environmental management system. The EMS • community outreach procedures in place. ance, EPA believes that, when properly imple-is used to track and eliminate unnecessaryproduction waste as well as to gain more mented, EMSs can help facilities achievecontrol over the facilitys budget. By gauging Organizations accepted into the program receive significantly improved environmental results andexpenses and implementing programs to special benefits, such as: low priority for routine other positive benefits. The US EPA is using thereduce those expenses, the company is initiat-ing changes that ultimately contribute to envi- federal inspections; special regulatory and Strategy to explore ing the possible benefits ofronmental performance and cost effective- administrative incentives, such as preference to incorporating EMS options into the US regulato-ness. Ideal Jacobss EMS is also used to track Performance Track Members in developing ry structure, but it does not intend to mandatethe business aspect of production to observeinvestments and their subsequent effect on flexible Title V air permits and reduced reporting the use of EMSs (Bergeson 2004).profits. The companys growth of 10 percent frequency for Performance Track facilities that In 1995, the US EPA issued a policy calledin 2000 reinforced the notion that environ - are minor or synthetic minor sources subject to Incentives for Self-Policing, Discovery, Disclo-mental performance and cost-effectiveness Maximum Achievable Control Technology sure, Correction and Prevention of Violationscan progress together. (MACT) standards; and more flexible require- (USEPA Audit Policy). It was revised in 2000.BENEFITS ments for large hazardous waste generators In Under this policy, penalties may be reduced orFor this company, the direct results of its EMS addition, EPA informs elected officials of the eliminated for facilities that discover violationswere, in 2002, near-zero generation of haz-ardous wastes and compliance with the thresh- Performance Track members in their districts. through self-auditing or under environmentalolds for all other levels of emissions to the Performance Track has a special program management systems; and that self-disclose andextent that the company did not need permits to promote participation by small facilities (that correct the violations promptly and take measuresof any kind. Cost savings in 2002 attributedto the EMS were approximately $25,000. is, any facility with less than 50 persons), includ- to prevent recurrence and promptly comply withIdeal estimated that the $20,000 cost it ing those that are part of a larger corporate enti- other requirements set under the policy.13incurred to implement the EMS at its facility ty. For small facilities, the US EPA recognizes The US EPA’s Small Business Compliancewas captured in this one-year cost savings.Source: US Environmental Protection Agency, that the scope, level and formality of the EMS Policy promotes environmental compliance<http://www.epa.gov/ems/studies/jacobs.htm> will depend on the nature, size and complexity among small businesses with fewer than 100 of the facility and that the EMS will not require employees by providing incentives to discover the same level of detail and verification proce- and correct environmental problems. The dures as the EMSs in place in larger facilities. agency offers to eliminate or significantly reduce The US EPA issued a formal EMS Policy in penalties for small businesses that voluntarily May 2002. It calls for promoting the widespread discover violations of environmental law and development and implementation of EMSs promptly disclose and correct them."14 based on the plan-do-check-act ISO 14001 In addition to establishing programs that framework. The EMS Policy provides that, while encourage companies to systematically manage EMSs do not replace the need for regulatory environmental performance, in 2003 the US EPA and enforcement programs, they can comple- joined EMSs with enforcement efforts by issuing ment them. Having an EMS in place can indi- its Guidance on the Use of Environmental Man- cate to the EPA an opportunity to streamline agement Systems (EMSs) in Enforcement Set- regulations and consider the company to be in tlements as Injunctive Relief and Supplemental compliance assistance, monitoring, and enforce- Environmental Projects (June 12, 2003). The ment. In support of this Policy, the EPA has Guidance reiterates EPA’s compliance and developed EMS programs, training, tools and enforcement office’s support for the use of EMSs, partnerships to help achieve the agency’s goals by organizations of all sizes and types. The EMSs of improving compliance, preventing pollution can be used as a tool to maintain compliance, and reducing costs. In April 2004, the EPA achieve results beyond compliance, and minimize issued the Strategy for Determining the Role of environmental impacts in non-regulated areas. Environmental Management Systems in Regula- More information can be found at: <http:// tory Programs (US EPA 2004b). The Strategy www.epa.gov/compliance/resources/policies/ was developed in response to the increasing incentives/ems/emssettlementguidance.pdf>. interest of stakeholders in the US EPA’s use of The directive also explains how the EPA EMSs in permits, rules and enforcement actions. will encourage the use of compliance-focused EMSs (CFEMS) as injunctive relief in enforcement 13. See <http://www.epa.gov/compliance/incentives/auditing/ settlements where it is necessary to address the auditpolicy.html> root causes of the violations. More information 14. See <http://www.epa.gov/compliance/incentives/smallbusiness> on Compliance-Focused Environmental Man- 25 A NORTH AM ERIC AN PERSPE CTIVE
    • agement System (CFEMS) - EnforcementAgreement Guidance can be found at:<http://www.epa.gov/compliance/resources/publications/incentives/ems/ems12elemr.pdf>. In addition, the directive explains whenEMSs that meet the criteria in the SupplementalEnvironmental Project (SEP) Policy, according totheir state and local governments, will be eligi-ble for SEP penalty mitigation credit. Moreinformation can be found at:<http://cfpub.epa.gov/compliance/resources/policies/civil/seps/>. Finally, the directive describes how per-sons who discover, correct, and disclose viola-tions discovered through EMSs can be eligiblefor penalty mitigation under EPA’s Audit Policyand statute-specific penalty policies. Some US states are also developing rulesand permits linked to EMSs. These state pro-grams provide incentives for companies thatimplement EMSs and engage stakeholders. EMSconcepts have been integrated as well into sev-eral federal and state pollution prevention andrisk reduction programs. Organizations thatexceed threshold quantities of chemical use orhazardous waste generation are required toevaluate risks and then implement programs andsystems to minimize and mitigate potentialreleases to the environment. Components ofthese programs typically include planning,reporting, auditing and stakeholder involve-ment. In particular, Section 112(r) of the CleanAir Act establishes a federal focus on the pre-vention of chemical accidents. The objective ofsection 112(r) is to prevent serious chemicalaccidents that have the potential to affect publichealth and the environment. Under theserequirements, industry has the obligation to pre-vent accidents, operate safely, and manage haz-ardous chemicals in a safe and responsible way. Voluntary government incentives programsare relatively new in North America. While hav-ing an environmental management system is arequired component of EPA’s Performance TrackProgram and Profepa’s Environmental Excel-lence Seal, time will reveal the extent to whichSMEs participate in these programs and whetherthey affect EMS use over the longer term.26 ENVIRONMENTAL M ANAGEMENT SYSTE MS
    • 8. FUTURE DIRECTIONS overnments are promoting EMSs as one ofG a variety of tools available to help SMEsimprove their environmental performance and for least-cost solutions. EMSs can be associated with the current requirements of environmental agencies.their bottom line. The experiences in NorthAmerica suggest some "lessons learned" that An EMS can provide the methodology a com-can be valuable in helping to shape any future pany needs to identify and implement ways ofgovernment or private sector initiatives designed making environmental improvements. For smallto promote the use of EMSs by small and medium- and medium-size businesses that are not part ofsize enterprises: a larger corporation, sector-specific technical assistance and outreach efforts are often criticals A business case must exist. Governments in providing the expertise that may not existare most successful in recruiting SMEs for vol- within a company. Because very little empiricaluntary environmental programs when the busi- research exists on the extent to which success-ness case for environmental management is ful EMS practices are being used by SMEs, con-clearly demonstrated. tinued research by academic institutions ands Business requirements are vital. The power government agencies is necessary. Thisof the suply chain, business contracts and research could help shed light on how andindustrial associations are significant for many under what circumstances EMSs can improveSMEs. environmental performance in small and medi-s A tailored outreach can be helpful. Outreach um-size enterprises and the success of assis-efforts that are narrowly tailored to the business tance and outreach efforts. Specific areas ofsector, size and location of the SME will be far further research could include the followingmore successful than generic outreach efforts. questions:Generic EMS toolkits can be time and resourceconsuming when applied to the different orga- s Will government incentives for EMS adop-nizational structures and specific sectors of tion and use—such as technical assistance,SMEs. public recognition and regulatory flexibility—s The right partners are essential. When gov- increase the use of EMSs over the longer-term?ernment programs have involved non-govern- s If so, how will these incentive programsmental organizations or SMEs themselves, as affect environmental performance over thepartners, the likelihood of success has been longer term?greater. The governments of the three countries s How will the environmental requirements ofshould promote forums in which companies can large customers and trade associations affectpresent not only the results of their EMSs, but the environmental performance of suppliersalso the process used to implement and devel- over the long term?op them. s How do successful EMS adopters overcomes A key factor is the knowledge and attitude of implementation problems? And what do theirthe owners. For small and micro-enterprises, experiences offer subsequent adapters in thethe knowledge and attitude of the owner/oper- way of models?ator are often critical factors .s An EMS in and of itself does not mean better Research that offers insights into environmentalenvironmental performance. EMSs are flexible , performance in specific sectors and specificand so their impact depends on how they are geographic regions will be particularly impor-implemented and integrated. EMSs do not nec- tant in driving future policy decisions of govern-essarily lead to improved performance, unless ments on the promotion of environmentalpursuing and measuring environmental management systems. As this type of researchimprovement are integral to the EMS. develops, continued cooperation between thes Regulatory compliance pressure is a motiva- three countries could occur in several areas.tor of environmental performance. In certain The goal of this cooperation should be tosectors and in certain parts of North America, improve the delivery of sector-specific informa-the pressures of regulatory compliance can be tion and technical assistance to SMEs. Such anan important motivator in prompting the search improvement could entail27 A NORTH AM ERIC AN PERSPE CTIVE
    • s sharing sector-specific EMS implementationtools and lessons learned from specific sectoractivitiess exploring additional ways to support effortsto green the supply chains continuing to look for and share success sto-ries, particularly as they relate to new andemerging programs such as USEPA’s Perfor-mance Track program and Mexico’s Environ-mental Auditing Programs promoting greater interaction between local,state and provincial governments on the suc-cess of their programs.This type of cooperation could be particularlybeneficial to Mexico. Efforts to green the supplychain by large multinationals have great poten-tial to improve the environmental performanceof smaller suppliers in Mexico. Also, the techni-cal assistance and outreach efforts in the UnitedStates and Canada could provide useful lessonsfor Mexico as it develops its own internal capac-ity to provide this type of support. In addition,the networks and information sharing that havedeveloped in the United States as a result of thework of the Multi-State Working Group andother organizations can provide valuable les-sons for Mexico’s states as they take on moreenvironmental responsibility. While cooperation could be particularlybeneficial to Mexico, it could also be of benefitto all of those promoting environmental man-agement systems in Canada, Mexico and theUnited States. By sharing experiences and suc-cess stories, particularly as they relate to specificsupply chains and sectors of the economy, gov-ernments and technical assistance providers canimprove their delivery of services to small andmedium-size businesses by building on existinglessons learned.28 ENVIRONMENTAL MANAGE MENT SY STEMS
    • Appendix A within an organization. For companies that have the goals of saving money, especially environ-Useful Web Sites in Addition to References mental costs, and reducing environmentalProvided impacts, EMA provides essential information for meeting those goalsEMAS Toolkit for Small Organisations<http://www.inem.org/emas-toolkit>. Green Purchasing <http://www.p2ric.org/TopicThis web site has information on how to create Hubs/toc.cfm?hub=13&subsec=7&nav=7>.an environmental management system based Green purchasing is a consideration of supplyon the "Plan, Do,Check, Act" model. It also chain management and is also known as envi-contains case studies. ronmentally preferred purchasing (EPP), green procurement, affirmative procurement, eco-Energy Star Small Business <http://www.energy procurement, and environmentally responsiblestar.gov/smallbiz>. ENERGY STAR is a US gov- purchasing. Green purchasing attempts to iden-ernment-backed program helping businesses tify and reduce environmental impact and toand individuals protect the environment maximize resource efficiency.through superior energy efficiency. This website has information and materials designed Lean Manufacturing <http://www.zerowastespecifically for small business. English and network.org/hub/p2rx-mod/subsection.cfm?Spanish versions available. hub=19&subsec=1&nav=1>. Lean Manufactur- ing is a systematic approach to identifying andMEDS—Manufacturing Efficiency Decision eliminating waste (non-value-added activities)Support Tool <http://meds.mmtc.org/>. This through continuous improvement by flowingweb site provides users with information on the the product at the pull of the customer in pur-performance, cost, and energy and environ- suit of perfectionmental implications of alternative manufacturingtechnologies, Small Business Environmental Homepage <http:// www.smallbiz-enviroweb.org>. ThisMAP—Manufacturing Assessment Planner web site, funded by US EPA and maintained byToolkit <http://map.mmtc.org/>. The Manu- the private sector, contains information on com-facturing Assessment Planner (MAP) Toolkit is pliance assistance, pollution prevention, indus-designed to aid MEP field agents in performing try sectors, performance measurements, andlow-cost assessments. The planner provides the awards and grants for small businesses in thenecessary steps and procedures to conduct an United States Examples of material on this webeight-hour, integrated energy, environment, site include:and manufacturing efficiency assessment for a Practical Guide to Environmental Managementsmall or midsized facility. <http://www.smallbiz-enviroweb.org/html/ pdf/EM_Guide0902.pdf>Ontario Clean Air Alliance—Emissions Calcula-tor, <http://www.electricitychoices.org>. This Documenting Your Environmental Managementweb site allows users to calculate air quality Plan—A Workbook for Small Business, (Sep-impacts and provides information on green tember 2003) is a workbook for small businessenergy suppliers. owners who worry that what they don’t know can hurt them and want to move away fromP2 World Information Network "fire fighting" environmental issues. It shows<http://www.p2win.org>. A global network how to get a proactive stance without disrupt-bringing together pollution prevention roundta- ing their day-to-day business operations.bles and cleaner production networks to <http://www.smallbiz-enviroweb.org/html/strengthen partnerships, encourage innovation pdf/ Documenting_EMP.pdf>.and take collective action. Environmental Best Management Practices forEnvironmental Management Accounting (EMA) Small Businesses <http://www. smallbiz-enviroweb.<http://www.newmoa.org/prevention/top org/pollution/ BMPs.html>.ichub/toc.cfm?hub=105&subsec=7&nav=7>. Best Management Practices (BMPs) for the fol-EMA is the identification, collection, estimation, lowing sectors: bakery, food services, furnitureanalysis, internal reporting, and use of materials finishing, health care, hotel, landscaping,and energy flow information, environmental cost machine shop, marina, retail store, service sta-information, and other cost information for both tion (these fact sheets were completed in Octo-conventional and environmental decision-making ber 2004 and are designed to be used with the29 A NORTH AMERICAN PERSPECTIV E
    • publications listed above: "Practical Guide . . ." Appendix Band the "Documenting . . . Workbook<http://www.smallbiz-enviroweb.org/sba/ 10 Elements of an Environmentalkey_smallbiz_publications.html>. Management SystemUS Department of Energy—Industrial Assess- The Commission for Environmental Cooperationment Centers Program has identified the ”10 Elements of Effective<http://www.oit.doe.gov/iac>. The Industrial Environmental Management Systems“:Assessment Centers (IACs) provide eligiblesmall- and medium-sized manufacturers with 1. Document and clearly communicate an envi-no-cost energy assessments. Teams composed ronmental policy.mainly of engineering faculty and students from 2. Clearly communicate all environmentalthe centers, located at 26 universities around requirements and voluntary undertakings.the country, conduct energy audits or industrial 3. Establish specific objectives and targets andassessments and provide recommendations to establish appropriate time frames to meet thosemanufacturers to help them identify opportuni- objectives and targets.ties to improve productivity, reduce waste, and 4. Establish the structure, responsibility andsave energy. This web site contains tools and resources to ensure that the organization ispublications on energy saving methods and equipped with sufficient personnel and otheropportunities. resources to meet the objectives and targets of its EMS.US EPA Compliance Assistance Centers 5. Identify and provide for the planning and<http://www.assistancecenters.net>, provide management of all the organization’s operationsaccess to a broad array of information on envi- and activities with a view toward achieving theronmental requirements and everyday issues objectives and targets.faced by specific industry and government sec- 6. Establish and maintain corrective and preven-tors. The web site also includes a link to the tive action and emergency procedures.Compliance Assistance Platform 7. Ensure adequate training and competence of<www.envap.org>, a rich resource for state employees.environmental compliance assistance tools and 8. Describe how the "10 Elements" will be inte-environmental topics. grated into the organization’s overall decision making and planning.US EPA Small Business Advocate and Gateway, 9. Establish and maintain document control.<http://www.epa.gov/sbo>. US EPA’s portal 10. Require continuous evaluation and improve-for finding information that pertains to small ment.businesses The full text of the "10 elements" can be foundWater Efficiency Manual for Commercial, Indus- at: <http://www.cec.org/pubs_docs/docu-trial and Institutional Facilities <http://www. ments/index.cfm?varlan=english&ID=243>.p2pays.org/ref/01/00692.pdf>. North Caroli-na’s Division of Pollution Prevention and Envi-ronmental Assistance web site which offersinformation and links geared toward small busi-nesses, including information on water andenergy efficiency techniques and environmentalmanagement systems.30 ENVIRONMENTAL MANAGE MENT SYSTEMS
    • References Lexington Group. 2002. Proyecto Adminis- tración Ambiental Monterrey,Bergeson, L. 2004. New EPA policy promotes <http://www.cec.org/pubs_docs/scope/indexEMS. Pollution Engineering. July 1. .cfm?varlan=english&ID=15> (under Reports<http://www.psi.org.uk/docs/2003/research/ section).env-reg-relief-PSI-data-analysis-report.pdf>. Matthews, D. H. 2001. Assessment and designCEC (Commission Environmental Cooperation). of industrial environmental management sys-2000. Improving environmental performance tems. PhD dis., Department of Civil and Envi-and compliance: 10 elements of effective envi- ronmental Engineering, Carnegie Mellonronmental management systems. Montreal: University, Pittsburgh.CEC, June. <http://www.cec.org/pubs_docs/documents/index.cfm?varlan=english&ID=243> Nash, J. 2000. Voluntary codes of practice: Non-governmental institutions for promotingCFIB (Canadian Federation of Independent environmental management by firms.Business). 2001. SMEs: The natural facts. <https://dspace.mit.edu/bitstream/1721.1/<http://www.14000registry.com/pdf/facts.pdf> 1602 /1/Nash_paper_FNL.doc>.Coglianese, C. and J. Nash. 2002. Policy NDEMS (National Database on Environmentaloptions for improving environmental manage- Management Systems). 2003. Final report. Feb-ment in the private sector. Environment 44(9): ruary. <http://ndems.cas.unc.edu/>.10–23. NEETF (National Environmental Education andEnvironment Canada. 2003. Environment Cana- Training Foundation). 2001. Standardizingda SME programs: Sharing lessons learned. excellence, working with smaller businesses toOttawa: Environment Canada, July. implement environmental management systems.Florida, R. and D. Davison. 2001. Why do firms <http://www.greenbiz.com/toolbox/reports_tadopt advanced environmental practices (and hird.cfm?LinkAdvID=21804&CFID=395538&Cdo they make a difference)? FTOKEN=65648988>www.heinz.cmu.edu/~florida/pages/pub/working-papers/ems.pdf. OECD (Organisation for Economic Co-opera- tion and Development). 2002. OECD smallHillary, R. 1999. Evaluation of study reports on and medium enterprise outlook 2002. Paris:the barriers, opportunities and drivers for small OECD. <http://www1.oecd.org/publications/and medium sized enterprises in the adoption e-book/9202091E.pdf>.of environmental management systems.Network for Environmental Management and Pacific Institute for Studies in Development,Auditing <http://www.inem.org/htdocs/iso/ Environment, and Security. 2000. Managing ahillary.html>. better environment: Opportunities and obsta- cles for ISO 14001 in public policy and com--———. 2004. Environmental management merce, J. Morrison, K. Kao Cushing, Z. Day,systems and the smaller enterprise. Journal of and J. Speir, ed. Oakland, CA: Pacific Institute.Cleaner Production 12: 561–69. Russo, M. V. 2000. Institutional change andIADB (Inter-American Development Bank). theories of organizational strategy: ISO 140012004. Multilateral Investment Fund (MIF), and toxic emissions in the electronic industry.implementation of quality management systems Paper presented at the 60th annual meeting ofunder MIF’s ISO cluster: Does it make a differ- the Academy of Management, Toronto.ence? TCEQ (Texas Commission for Environmental<http://www.cec.org/pubs_docs/scope/index Quality). 2003. A model environmental man-.cfm?varlan=english&ID=15> (under Reports agement system for a small business: metal fin-section). isher, Austin. <http://www.tceq.state.tx.us/comm_exec/formsIFC (International Finance Corporation). 2004. _pubs/pubs/gi/gi-304a_172641.pdf>.Manual for implementing EMS in SME.<http://www.ifc.org/ifcext/enviro.nsf/Content/ EMS>.31 A NORTH AM ERIC AN PERSPE CTIVE
    • US EPA (US Environmental Protection Agency).2004a. National Environmental PerformanceTrack: EMS criteria. <http://www.epa.gov/performancetrack/program/ems.htm. 2004b>.Strategy for determining the role of environ-mental management systems in regulatory pro-grams.Welch, Thomas. 1998. Moving beyond envi-ronmental compliance. Boca Raton, FL: LewisPublishers.World Bank. 1998. Mexico: The GuadalajaraEnvironmental Management Pilot.<http://www.worldbank.org/nipr/work_paper/guada/>.World Environment Center, 2005, The WECSupply Chain Management Partnership,<http://www.wec.org/docs/WEC%20Supply%20Chain%20Management%20Partnership.doc>32 ENVIRONMENTAL MANAGEMENT SYSTE MS
    • Commission for Environmental Cooperation393, rue St-Jacques Ouest, Bureau 200Montréal (Québec) Canada H2Y 1N9info@cec.orghttp://www.cec.org