Contents Company Overview (Mt. Baker Products):............................................................................. 2 Environmental Management Systems (EMS)...........................................................................2 EMS Under ISO 14001..................................................................................................... 2 1.
Commitment and Policy........................................................................................... 3
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Planning.............................................................................................................. 3
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Implementation...................................................................................................... 4
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Evaluation............................................................................................................ 4
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Review................................................................................................................ 4
Costs and Benefits of an EMS............................................................................................. 4 Potential Costs............................................................................................................. 4 Internal................................................................................................................... 4 External.................................................................................................................. 4 Potential Benefits......................................................................................................... 4 ISO 14001..................................................................................................................... 4 Interactions between the EMS Elements................................................................................. 5 Steps for gaining certification for an EMS.............................................................................. 5 From the perspective of given Case (Implementation of ISO 14001 in Mt. Baker Products).................6 Why ISO 14001? External Pressure...................................................................................6 Smartwood or FSC vs. ISO 14001..................................................................................... 6 Role of “Aspects” and “Impacts” in ISO 14001....................................................................6 “Right” and “Wrong” way to identify Environmental Aspects...................................................6 Who sets the Environmental goals and objectives for a company under ISO 14001?.......................7 Josh’s major error in the implementation process...................................................................7 ISO Certificates and Their Benefits................................................................................... 7 ISO Certificates – Importance in creating and maintaining global market share.............................7 Conclusion..................................................................................................................... 7 References..................................................................................................................... 8
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Company Overview (Mt. Baker Products): Mt. Baker Products, Inc. (MBP) manufactures plywood, hardwood, and other wooden products. The company was founded in 1993 and is based in Bellingham, Washington. Mt. Baker Products, Inc. operates as a subsidiary of Swaner Hardwood Company, Inc. The company was turned around by investors in 1960 when it was facing huge losses. It was later bought by Texas investors in 1992, who filed for Bankruptcy just after one year of buying. The company was then bought over by Swaner Hardwood Company. Swaner privately owned a company in forest product wholesaling. Joshua Perry was appointed to manage the implementation of Environmental Management System (EMS) in the company. He was responsible to help MBP get ISO 14001 certification which was a push by MBP for “green” wood products for the following reasons It was an idea of Rod Remington, President and GM of MBP to add credibility along with SmartWood certification. The move was taken to enhance the company image in the eyes of environmentally conscious customer base. SmartWood certification (accredited by FSC) only ensured that MBP suppliers were environmentally responsible, whereas ISO 14001 would provide for the entire Environment Management System (EMS) for MBP.
Environmental Management Systems (EMS) An Environmental Management System (EMS) is a set of processes and practices that enable an organization to reduce its environmental impacts and increase its operating efficiency. The EMS itself does not dictate a level of environmental performance that must be achieved; each company's EMS is tailored to the company's business and goals. An EMS helps a company address its regulatory demands in a systematic and cost-effective manner. This proactive approach can help reduce the risk of non-compliance and improve health and safety practices for employees and the public. An EMS can also help address non-regulated issues, such as energy conservation, and can promote stronger operational control and employee stewardship.
EMS Under ISO 14001 An EMS encourages a company to continuously improve its environmental performance. The system follows a repeating cycle (see figure). The company first commits to an environmental policy, then uses its policy as a basis for establishing a plan, which sets objectives and targets for improving environmental performance. The next step is implementation. After that, the company evaluates its environmental performance to see whether the objectives and targets are being met. If targets are not being met, corrective action is taken. The results of this evaluation are then
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reviewed by top management to see if the EMS is working. Management revisits the environmental policy and sets new targets in a revised plan. The company then implements the revised plan. The cycle repeats, and continuous improvement occurs.
The most commonly used framework for an EMS is the one developed by the International Organization for Standardization (ISO) for the ISO 14001 standard. Established in 1996, this framework is the official international standard for an EMS. The five main stages of an EMS, as defined by the ISO 14001 standard, are described below:
1. Commitment and Policy Top management commits to environmental improvement and establishes a company environmental policy. The policy is the foundation of the EMS.
2. Planning A company first identifies environmental aspects of its operations. Environmental aspects are those items, such as air pollutants or hazardous waste that can have negative impacts on people and/or the environment. A company then determines which aspects are significant by choosing criteria considered most important by the company. For example, a company may choose worker health and safety, environmental compliance, and cost as its criteria. Once significant environmental aspects are determined, a company sets objectives and targets. An objective is an overall environmental goal (e.g., minimize use of chemical X). A target is a detailed, quantified requirement that arises from the objectives (e.g., reduce use of chemical X by 25% by September 1998). The final part of the planning stage is devising an action plan for meeting the targets. This includes designating responsibilities, establishing a schedule, and outlining clearly defined steps to meet the targets.
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3. Implementation A company follows through with the action plan using the necessary resources (human, financial, etc.). An important component is employee training and awareness for all employees. Other steps in the implementation stage include documentation, following operating procedures, and setting up internal and external communication lines.
4. Evaluation A company monitors its operations to evaluate whether targets are being met. If not, the company takes corrective action.
5. Review Top management reviews the results of the evaluation to see if the EMS is working. Management determines whether the original environmental policy is consistent with company values. The plan is then revised to optimize the effectiveness of the EMS. The review stage creates a loop of continuous improvement for a company.
Costs and Benefits of an EMS Potential Costs Internal Staff (manager) time Other employee time External Potential consulting assistance Outside training of personnel
Potential Benefits
Improved environmental performance Enhanced compliance Pollution prevention Resource conservation New customers/markets Increased efficiency/reduced costs Enhanced image with public, regulators, lenders, investors Employee awareness of environmental issues and responsibilities
ISO 14001 ISO 14000 is a series of environmental management standards developed and published by the International Organization for Standardization (ISO) for organizations. The ISO 14000 standards provide a guideline or framework for organizations that need to systematize and improve their environmental management efforts.
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The very first two standards, ISO 14001:2004 and ISO 14004:2004 deal with environmental management systems (EMS). ISO 14001:2004 provides the requirements for an EMS.ISO 14004:2004 gives general EMS guidelines. The other standards and guidelines in the family address specific environmental aspects, including: labelling, performance evaluation, life cycle analysis, communication and auditing. Using ISO 14001:2004 can provide assurance to company management and employees as well as external stakeholders that environmental impact is being measured and improved.
Interactions between the EMS Elements
Steps for gaining certification for an EMS Apply to accredited conformity assessment body for ISO 14001 certification External comprehensive documentation review & preliminary audit to evaluate readiness for certification Implement improvements from documentation review & preliminary audit Certification audit Management review, & implementation of further improvements Plan corrective action in response to any nonconformities raised Certification granted for 3 years Surveillance audits initially 6-monthly then annually
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Annual management reviews Triennial recertification audits.
From the perspective of given Case (Implementation of ISO 14001 in Mt. Baker Products) Why ISO 14001? External Pressure The area surrounding the old mill had been improved with upscale development and the property owners did not want to renew MPS‘s expiring lease. ISO 14001 certification would promise a clean environmental bill of health in turn helping the lease holders decide towards renewing the lease. Being certified by a third-party registrar as compliant would ensure the customer the MBP was environmentally responsible.
Smartwood or FSC vs. ISO 14001 A SmartWood Certification assures customers the “chain-of-custody” standards for forestry certification programs worldwide are followed. The importance of FSC (Forest Stewardship Council) certification to wood processors, assures product suppliers were managed in an environmentally friendly manner. FSC - This incentive brings direct benefits to the forest, such as protecting biodiversity, indigenous peoples' rights, worker’s rights, and areas of significant environmental or cultural importance. ISO 14001 are the international standards for evaluating a company's environmental management systems (EMS'S) by third party registrars, assuring the customer that MBP's suppliers are environmentally responsible. SmartWood - As the world's leading Forest Stewardship Council (FSC) forest management certifier, SmartWood sets the international gold standard for credibility in auditing environmentally and socially responsible forestry.
Role of “Aspects” and “Impacts” in ISO 14001 You must identify the aspects that need to be evaluated for the outcome i.e. significant impact on the environment. Impacts are the outcome of the aspects. Example: Exhaust from Trucks is the Impact of owning a large fleet of trucks.
“Right” and “Wrong” way to identify Environmental Aspects The right way to identify environment aspects was to develop lists of potential environmental impacts that could affect each environment aspect. The wrong ways was to use a standard form and job descriptions as the control for the EMP's.
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Who sets the Environmental goals and objectives for a company under ISO 14001? Top management commits to environmental improvement and establishes a company environmental policy. A company sets objectives and targets. An objective is an overall environmental goal (e.g., minimize use of chemical X). A target is a detailed, quantified requirement that arises from the objectives (e.g., reduce use of chemical X by 25% by September 1998).
Josh’s major error in the implementation process Josh was unfamiliar with the mill operations, and without the detailed needed detailed knowledge for designing the programs, Josh wrongly used job descriptions to identify the operational control. He could not supervise and complete the training sessions planned for guidance for the workers and operational control for the EMP.
ISO Certificates and Their Benefits Cost savings - International Standards help optimize operations and therefore improve the bottom line Enhanced customer satisfaction - International Standards help improve quality, enhance customer satisfaction and increase sales Access to new markets - International Standards help prevent trade barriers and open up global markets Increased market share - International Standards help increase productivity and competitive advantage Environmental benefits - International Standards help reduce negative impacts on the environment
ISO Certificates – Importance in creating and maintaining global market share Acquiring greater market share through the competitive advantage of a better image often, it is a prerequisite for winning an important customer competitors have a certificate, using it as a competitive advantage a prerequisite for public contracts ensuring verifiable legal compliance making implementation and system processes in the company more transparent and stabilized reducing the need of operative interventions and problem solving Defining responsibilities and competencies within the company.
Conclusion An environmental management system takes time and commitment from the entire organization. Effective running of an EMS will provide ongoing environmental benefits, cost savings and contribute to building an attractive work place culture.
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ISO certification is a useful tool to add credibility to your product or service to meet customer expectations. ISO certification is provided by external certification bodies by evaluating the products against ISO standards. International Standards bring technological, economic and societal benefits. Conformity to International Standards helps reassure consumers that products are safe, efficient and good for the environment. The benefits of having ISO 14001 certification are mainly realized by large organizations, as Small to Medium Enterprises (SMEs) have a smaller turnover and thus a correspondingly small return on the costs of certification. Although a fully certified ISO EMS may not be suitable for smaller organizations, it does provide guidelines that assist organizations to consider all the relevant issues, and thus gain the most benefit from their EMS, even without certification. SMEs can therefore use ISO 14001 as a model for designing their own EMS. However, larger organizations may find certification more valuable when considering the potential trade and market advantages of an internationally recognized and certified EMS. This was a significant factor for companies seeking certification under the ISO 9000 quality assurance standards, and is likely to be a factor in decisions regarding ISO 14001 certification.
References 1. http://www.epa.gov/ems/ 2. http://water.epa.gov/polwaste/wastewater/Environmental-Management-System-ISO14001-Frequently-Asked-Questions.cfm 3. http://en.wikipedia.org/wiki/Environmental_management_system 4. http://www.environment.gov.au/node/20494
