EMS/ISO 14000 NEED OF THE HOUR

1. EMS/ISO 14000NEED OF THE HOUR NATIONAL ENVIRONMENTAL ENGINEERING RESEARCH INSTITUTE Council of Scientific and Industrial Research

2. Presentation Coverage • About NEERI • Background of EMS / ISO 14000 • ISO 14000 series of standards • Principles of standards • Benefits of ISO 14000 • Proposed approach

3. NEERI – Organizational Setup CSIR DIRECTOR ZONAL CENTRES R&D GROUPS AT THE INSTITUTE

4. Environmental Consequences • Spatial scale • Local to regional to global • Temporal scale • Immediate to short-term to long-term • Scope • Minor disturbances to large-scale modifications

5. Sustainable Development • Earlier perception Development OR Environment • Now Development AND Environment Evident in • Public pressure • Recent regulations

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

7. Environmental Pressures on Business • Environmental issues can threaten business health • - Closure • - Resource quality • - Quality of life • Know the environmental status • Decide suitable action plan

8. Environmental Management Credibility Gap Factors that have contributed to the credibility gap include : • Corporate downsizing, which often throws environmental (and other) programs into tailspins • Tight financial controls and increased scrutiny of the bottom-line contribution for all organizations in the company • 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

9. 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 • Early EH&S initiatives have picked the low-hanging fruit, removing the high return/ low effort opportunities • Creation of an environmental culture that is not congruent with the business culture of the company • Poor communication between the environmental organization and the lines of business about the types and sources of competitive advantage that can be accrued

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

11. Defining the “Green Wall” 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

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

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

14. Language of Business and Environmentalese

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

16. Environmental Management Systems (EMS) • From Reactive to Proactive • Systems approach • Inspired by • Quality Management System • QMS Standards • ISO 9000 Series • TQM

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

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

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

20. ISO 14001: EMS Spec. • Specification standard • Specifies elements that can be audited and certified. • Core requirements • Auditable elements • Interweave • Annexure gives explanation of elements

21. Elements of ISO 14001 • General Requirements • Environmental Policy • Planning • Implementation and Operation • Checking and Corrective Action • Management Review

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

23. 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 Implement -Ensure Capability- Measure & Assess -Measure & Monitor Initial Review Senior Management Commitment

24. Principles Behind ISO 14000 • Better environmental protection • Applicable in all nations • Promote broad interests of public and users • Cost effective, non-prescriptive, flexible to meet differing needs of organisations, worldwide • scientifically based • Practical, useful and useable

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

26. Benefits of EMS : Indian Context • Emphasis on preventive, not on corrective strategies or actions. • System demands continual improvement. • Resource conservation that lends competitive edge. • Global acceptance • Better control of top management

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

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

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

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

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

32. IInd Step: Design for Environment • Minimize adverse impacts on environment not only during manufacturing but in full life cycle • Examine aspects and impacts during design steps • Xerox corporation : Savings in 1995 of the order of $ 400 million

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

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

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

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

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

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