The webinar covers: • A view on the requirements as mentioned in ISO 14001:2015 and identify clauses where EPE and MFCA can provide support • EPE and MFCA - an overview on the process and concepts • The impacts of having an EMS that is complimented in guidance with EPE (ISO 14031) and MFCA (ISO 14051) to external reporting requirements Presenter: This webinar was presented by a PECB Certified Trainer and Senior Consultant in SAS Management, Inc. Joshua Albarina. Link of the recorded session published on YouTube: https://youtu.be/yVYSVtAiB2E

1. Checking the EMS performance
The dynamics of EMS Monitoring, Measurement and Accounting with ISO 14001, 14031 and
14051
v

2. Joshua Albarina
Senior Consultant- Service Delivery
Joshua Rey S. Albarina is a Leading PECB certified ISO 31000:2009 Risk Manager in the Philippines. Currently he is the Senior
Consultant for ISO programs of SAS Management. His areas of expertise are Sustainability practices (Energy and Environment),
Organizational Resilience (Business Continuity, Asset and Risk Management), Business excellence (Quality and Six Sigma), IT
practices (Information security and IT Governance).
.
(+632) 949 3004
joshua.albarina@saservices.com.ph
www.saservices.com.ph
https://ph.linkedin.com/in/jralbarina
www.twitter.com/sas_mngt
www.facebook.com/sasmanagementinc

3. What will be discussed
• ISO 14001- a quick look at the latest version
• The synergy between Environment and Enterprise- how EMS plays a role
• Evaluating Environmental Performance with ISO 14031
• Assessing Material flows with ISO 14051
• EMS, MFCA and EPE- complimenting Environmental Performance
• The road ahead- Carbon Credits and Reporting

4. A bit of ISO 14001:2015
• Revision started in 2013
• Inclusion of Guide 83-
the High level Structure and identical text for management system standards and common core management
system terms and definitions
• Formally released in September 2015, along with QMS, by the Technical
committee 207
• Designed to
• harmonize with other standards and ease out integration
• Risk orientation
• Comprehensive contextualization
• Lifecycle perspective
• (Stringent) environmental performance

5. The synergy: Environment and Enterprise
OrganizationInput
Products
Services
Excess
Controls
EMS
Performance Evaluation
(ISO 14031)
Industrial emissions
MFCA
(ISO 14051)

6. Evaluating Environmental Performance
What Management must do first out of environmental impacts with less compromise

7. The importance of Metrics
• Increasingly important in the past years as an instrument for successful
management
• Securing the existence of a company in the long run
• Typically, this consists of: Planning, controlling and monitoring a company (in
consideration of environmental factors)
• Indicators: Most important management tool for environmental controlling

8. The Environment
How Indicators are classified?
The Organization
Organizational Management
Operations Management
Physical
facilities and
Equipment
Inputs
Supply
Outputs
Delivery
Environmental
condition and
other sources
Interested
Parties
Environmental Condition Indicators
[ECI]
Management Performance Indicators [MPI]
Operational Performance Indicators [OPI]

9. Indicators: Categories and types
Environmental Condition Indicator (ECI)
Describes the quality of the environment surrounding the company

10. Indicators: Categories and types
Management Performance Indicators (MPI)
Present the organizational actions the management is taking to minimize the company’s environmental
impact

11. Indicators: Categories and types
Operational Performance Indicators (OPI)
Allow the assessment and control of environmental impacts at a process level

12. Indicators: Categories and types
Company
Size
Process
absolute relative
In costs
In quantities

13. Indicators: Categories and types
Some examples of Environmental Indicators
Environmental
condition
Indicators (ECI)
• Water quality of nearby lake
• Regional air quality
• Noise pollution level at peak periods
• Atmospheric CO2 emissions (ppm)
Management
Performance
Indicators (MPI)
• Number and results of environmental audits conducted
• Staff member training
• Supplier assessments
Operational
Performance
Indicators (OPI)
• Absolute Energy consumption (KWh)
• Waste per unit of output
• Transportation volume
• Volume of products shipped

14. EPE: How does it work?
Planning and Selecting EPE and indicators
selection
Implementation
Collect data
Analysis and
conversion
Information
assessment
Report and
communicate
Review and Improve the EPE

15. The Basic Principles of EIS
Comparability Target Orientation
Balance Continuity
Timeliness Clarity

16. The Basic Principles of EIS
Comparability
These indicators must allow comparisons to be made and must reflect changes of environmental impacts

17. The Basic Principles of EIS
Target Orientation
The selected indicators should pursue improvement goals that can be influenced by the company

18. The Basic Principles of EIS
Balance
These indicators must represent the environmental performance as
accurately as possible and provide a balanced illustration of
environmental problem areas as well as improvement potentials

19. The Basic Principles of EIS
Continuity
It is essential that they are established within the same data collection criteria in every period, that they
refer to comparable intervals, and that they are measured in comparable units to compare indicators

20. The Basic Principles of EIS
Timeliness
The indicators should be determined in short enough
intervals (e.g. monthly, quarterly, annually) in order to
have the opportunity of actively pursuing and
influencing the achievement of target figures, and to
avoid providing outdated information

21. The Basic Principles of EIS
Clarity
The indicators must be clear and comprehensible for the user and correspond to the user’s information
requirements. The system should therefore be coherent and concentrate on essential data.

22. Assessing Material Flows
Why optimal is enough

23. The “honest” intention of MF(CA)
• Increase transparency of resource (material, water, and energy) use within the bounds of the organization
(develop a flow model)
• Highlight the cost associated with material flows in the process
• (further) reduce adverse environmental impacts caused by irregular resource flows through sound
environmental projects based on material flow analyses

24. About MFA
A tool for quantifying the flows and
stocks of materials in processes or
production lines in both physical and
monetary units

25. MFA and CCA- the differences
• Treatment of the cost of material loses and inefficiencies in the process
• CCA: all material costs and processing costs are assigned or allocated to product costs
• Waste management costs- either incorporated in product costs or hidden in overhead
costs
• Provide information regarding potential savings or efficiency in product
material and corresponding packaging

26. MFA and CCA- the differences
• MFA: treats material loss as a:
• Cost object
• Calculates the costs of material losses and all processing costs associated with the
material losses (the “cost of mistakes” perspective)

27. MFA: the fundamental elements
Quantity Center
• Selected part(s) of a process(es) for which inputs and
outputs are quantified in physical and monetary units
• Areas in which materials are stocked and/or transformed
(e.g. storage, production units, shipping points)

28. MFA: the fundamental elements
Material Balance
• Quantification of incoming and outgoing materials
• Observes the law of mass conservation- mass and energy
are neither created nor destroyed-only transformed
• Considered as ABSOLUTE law- imbalances indicate
possible anomalies or oversights

29. MFA: the fundamental elements
Cost Calculation
• Acts as supporting balance for both or either material
and energy balances
• Provides monetary values for defined balances
• Three types of costs quantified
• Material Costs
• System costs
• Waste Management costs

30. MFA: the fundamental elements
Cost Calculation
• Allocating costs
• Should be calculated from data available for individual
quantity centers and individual material flows
• Not, or rather, estimation by cost allocation procedures
• Experience:
• cost types mentioned are often available in an entire process
• Necessary to:
• Allocate costs to individual quantity centers
• Allocate to products and material losses

31. MFA: the fundamental elements
Cost Calculation
• Cost carryover between quantity centers
• An output from one quantity center becomes
an input for another quantity center
• Cost items (based on raw materials) can be
expressed separately from its previous costs
(based on product generation)

32. MFA: the fundamental elements
Cost Calculation
• Cost carryover of internally recycled material
• Unprocessed raw material passes through the quantity
center several time
• Both financial and environmental benefits can result
with the measure
• Requires additional material, system, energy and waste
management costs
• Will point out inefficiencies in its current process

33. MFA: the fundamental elements
Cost Calculation
• Cost carryover of internally recycled material
• Should be handled in the same way as any other
material loss
• What to account when dealing the costs of internal
recycling:
• Cost savings of internal recycling (i.e. purchase value of
substituted matieral
• Additional costs of the recycling process
• Additional costs in other quantity centers caused by the flow of
recycled material through the system

34. MFA: the fundamental elements
Material flow model
• Illustrates the overall flow of materials within the chosen boundary for MFA

35. MFA: Implementation steps
Involvement of Management
should understand the value and its corresponding practicability of having MFA in achieving an organization’s
environmental and financial goals

36. MFA: Implementation steps
Specification of a boundary and a time period
Can cover from single to multiple processes, but focused on processes with adverse environmental impact or
business priority.

37. MFA: Implementation steps
Identification of inputs and outputs for each quantity center
Underlines the terminal points of the process

38. MFA: Implementation steps
Quantification of material flows in physical units
Use a single standardized unit to establish balance calculations all throughout.

39. MFA: Implementation steps
MFA data summary and interpretation
Consolidate all balances, check and create visuals for easy understanding among stakeholders

40. MFA: Implementation steps
Identification and assessment of improvement opportunities
Couple the CP tree identification options with a bit of some QC tools to pinpoint good options

41. EMS, EPE and MFCA- emphasizing business value
OrganizationInput
Products
Services
Excess
Controls
EMS
Performance Evaluation
(ISO 14031)
Industrial emissions
MFCA
(ISO 14051)
Enhanced Legal
compliance
External reporting
practices
Business gains through
reputation enhancement

42. ?
QUESTIONS
THANK YOU
(+632) 949 3004
joshua.albarina@saservices.com.ph
www.saservices.com.ph
https://ph.linkedin.com/in/jralbarina
www.twitter.com/sas_mngt
www.facebook.com/sasmanagementinc