Council of Scientific and Industrial Research

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About NEERI
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Background of EMS / ISO 14000
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ISO 14000 series of standards
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Principles of standards
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Benefits of ISO 14000
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Proposed approach

CSIR
DIRECTOR
ZONAL CENTRES
R&D GROUPS AT THE INSTITUTE

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Spatial scale
– Local to regional to global
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Temporal scale
– Immediate to short-term to long-term
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Scope
– Minor disturbances to large-scale modifications

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Earlier perception
Development OR Environment
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Now
Development AND Environment
Evident in
– Public pressure
– Recent regulations

(Contd..)
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Development without adversely affecting the ability to develop of future generations
– Planet can support indefinitely
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Organizations may ask whether they are part of the solutions to social and environmental problems or part of the problems!

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Environmental issues can threaten business health
- Closure
- Resource quality
- Quality of life
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Know the environmental status
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Decide suitable action plan

Environmental Management Credibility Gap
Factors that have contributed to the credibility gap include :
• Corporate downsizing, which often throws environmental
(and other) programs into tailspins
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Tight financial controls and increased scrutiny of the bottom-line contribution for all organizations in the company
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New management paradigms (i.e. reengineering, TQM) that distract management attention and reorient priorities
• Environmental strategies and programs that are too broad or try to do everything at once (thereby increasing costs and diluting payback) and do not fit well with the overall business strategy

Factors that have contributed to the credibility gap include : (Contd..)
• Unrealistically high expectations for potential benefits from strategic environmental management, resulting from overly aggressive sales jobs or cheerleading
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Early EH&S initiatives have picked the low-hanging fruit, removing the high return/ low effort opportunities
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Creation of an environmental culture that is not congruent with the business culture of the company
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Poor communication between the environmental organization and the lines of business about the types and sources of competitive advantage that can be accrued

The Full Triangle of Environmental Management
Liability Containment
Issue of Staff
Public Image
MBA Functions
Product Positioning
Regulatory Compliance

Green Wall
Lawyers (Liability Containment)
MBA Engineers (Regulatory Compliance)
“Money –Making”
The core nature of business is sliced from the environmental decision-making process, leaving the two-dimensional way of compliance, which lacks any strategic vision

Examples of Companies That Have
Hit the Green Wall
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Apple Computer, which cut its award –wining
Advanced (Environmental) Technology Group as part of corporate downsizing;
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Warner Lambert, which is exiting the environmental packaging arena;
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ABB, which has positioned itself to sell off many environmental units and alter the internal
Environmental Health and Safety (EH&S) role; and
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McDonalds, which is struggling with how to sell hamburgers on the basis of the environmental merits of the company

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Symptoms
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No Support to strategic environment management
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Deferred decisions
• Why ?
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No focus to environmental safety & health progremmes
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Inability to demonstrate its efficiency to others in organization
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Inability to show tangible returns on investment

Language of Business and Environmentalese
Turning
Environmentalese…
Into Business
Got the enforcement guys off our back
Net present value of avoided fines
Fewer fines than last year
Lost market share of fines as a percentage of industry fines
Spent millions on remediation
Decreased backlog of remediation, on time, on budget, and according to our strategy
Met new regulatory requirements and invested in pollution prevention
Return on investment for environmental capital investments
Created a matrix team of
EH&S and Engineering
Leveraging of staff from engineering and operations to keep down the head count in the environmental group

Strategic
Environmental
Management
Embedded in
Organization
Interactive
Environmental
Management
Fit with
Business
Strategy
Business
Language
Stand –alone
Strategy
“Environmentalese”
Language
Matrix
Organization
“Green Wall”
Environmental
Management
Source : Shelton in Corporate Environmental Strategy :
The Journal of Environmental Leadership

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From Reactive to Proactive
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Systems approach
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Inspired by
– Quality Management System
– QMS Standards
– ISO 9000 Series
– TQM

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Initially, quality was only an extra cost driver
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Later, essential for selling in global market
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Firms realized profits due to lower servicing
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Now it signifies competitive advantage
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In future : zero defects

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Success of ISO 9000 prompted development of
ISO 14000
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Strategic Advisory Group on Environment
(SAGE) : 1991
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TC 207 (1993) and sub-committees
• ISO 14001, 14004, 14010-12 (1996)
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ISO14040(97),14020,14041,14050 (98)

Evaluation &
Auditing
Management
Systems
Product oriented support tools
Auditing guidelines
ISO 14010
14011
14012
EMS specification
ISO 14001
EMS guide
ISO 14004
Life cycle
Assessment
ISO 14040
14041
14042
Eco labelling
ISO 14020
14021
14024
Terms & definitions ISO 14050

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Specification standard
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Specifies elements that can be audited and
certified.
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Core requirements
– Auditable elements
– Interweave
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Annexure gives explanation of elements

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General Requirements
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Environmental Policy
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Planning
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Implementation and Operation
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Checking and Corrective Action
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Management Review

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

ISO 14000 EMS Model for Continual Improvement
Re-define purpose
& re-establish plan
Define Policy & Establish Plan
Identify aspects, & risk, establish internal criteria, set objectives,& targets, create strategic plan, develop management programme
Review &Improve
Review
Correct & Prevent
Measure & Assess
-Measure & Monitor
Initial Review
Implement
-Ensure
Capability-
Senior Management Commitment

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Better environmental protection
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Applicable in all nations
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Promote broad interests of public and users
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Cost effective, non-prescriptive, flexible to meet differing needs of organisations, worldwide
• scientifically based
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Practical, useful and useable

• Assure customers
• Good public relations
• Investor criteria
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Less cost of insurance
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Image
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Vendor requirement
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Improve cost control
• Reduce liability
• Demonstrate reasonable care
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Conserve input & energy
• Ease in securing permits
• Better relations with
Government
• Share environmental solutions

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Emphasis on preventive, not on corrective strategies or actions.
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System demands continual improvement.
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Resource conservation that lends competitive edge.
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Global acceptance
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Better control of top management

In addition to the benefits discussed earlier following benefits are expected:
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Umbrella system to take care of following requirements :
– Legal
– Corporate
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While doing so individuality of the site can be maintained.

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Reduced spillage, better house-keeping
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Trained work force high on motivation, better employee participation
• Company’s protection from environment and protection of the environment by company

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In a Global economy, the firms have to meet the demands of the global marketplace
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Competitiveness : essential to survive
– Resource productivity is key to survive
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Environmental protection
– Meet demands : improve profits

Production Legal Participation Market
PPP
Self
Regulation
High
Quality
Communication/
Better Accessibility
Increased Competitiveness and Environmental Protection

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

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Minimize adverse impacts on environment not only during manufacturing but in full life cycle
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Examine aspects and impacts during design steps
– Xerox corporation : Savings in 1995 of the order of $ 400 million

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Improve our processes
– About 3/4 of cleaner production or technology adoptions pay back in six to eight months
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Invest in technologies of the future
– For paint companies : water based paints
– For cars : solar powered cars

Continual Improvement
Environmental
Policy @
Management
Review @
Planning
Environmental aspects
Legal & other requirements @
Objectives & targets @
Environmental management programme @
Monitoring &
Corrective Action
Monitoring & measurement @ Nonconformance, corrective
& preventive action @
Records @
EMS Audit @
@ =Similar to
ISO 9001
Implementation & Operation
Structure & responsibility @
Training, awareness and competence @
Communication
EMS documentation @
Document control @
Operational control @
Emergency preparedness and response

EMS Implementation Timeline
(First 7 Months)
Gap Analysis
& Report
Identify
Significant Aspects
Legal &
Other
Requirements
Objectives
& Targets
Develop Procedures
& Programs
EMS Training for Team
Implementation
Plan
Team Selection
& Kickoff
Start 1st
Communications & Documentation
2nd 3rd 4th
5th
6th 7th

EMS Implementation Timeline
(Second 7 Months)
Communications & Documentation
Internal
Audit
Implement Procedures & Programs
Develop Procedures
7th
& Programs
8th 9th
Management
Review
3 rd Party
Audit
10th 11th
12th
13th 14th

The ISO 14001 Registration Process
Pre-Assessment
(Optional)
Application and
Proposal
Stage 1
Visit
Stage 2
Visit
Registration
6-12
Months
2-4
Months
8- 20
Months
0-4
Months

ISO 14001 Registration Maintenance Process
6 Monthly
Surveillance
Cycle
“Continuous”
Registration
Registration
First
Surveillance Visit
Annual
Surveillance
Cycle
Triennial
Reassessment
6 Months
30 Months