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Environmental Management Guidelines for Small Businesses

Environmental Management Systems

Ultimately the aim of the environmental management approach adopted by a company is to prevent or minimise the environmental impacts of operations, while retaining competitiveness. Environmental management is more than simply managing environmental impacts after they are created. Effective environmental management should aim to prevent or minimise the environmental impacts in the first place. Why introduce an EMS? All companies are under increasing pressure to ensure the proper management of the environmental impacts of their activities. Small businesses are subject to increasingly stringent environmental legislation, reflecting the increasing importance of environmental issues in political debate. Customers, suppliers, staff and the general public increasingly demand a commitment from business to better manage the environmental impacts of their activities. Benefits of an EMS include: Cost savings from reduced raw material and resource consumption, e.g. better management of your energy and water needs and consumption. Reduced waste collection, treatment and disposal costs. Compliance with legal obligations. Reduced risk and liability associated with poor environmental performance. Improved relationships with key stake holders e.g. customers, suppliers, staff, regulatory authorities and local communities.

Introduction All business, regardless of size and activity, has some impact on the environment. An Environment Management System (EMS) is a tool that allows a company identify and address their particular environmental impacts. Environmental issues should not be considered in isolation to other management issues. By adopting an EMS a company is making a commitment to incorporate environmental issues into existing management systems. Environmental management is based on the concept of continuous improvement in environmental performance over time. An EMS will continuously change as a company changes, for example as a business expands and takes on new staff. The EMS must also take account of external factors, such as changes in environmental legislation, technology, and market competition.

7. Environmental Management Systems

Third Party Certification of an EMS A recognised international accredited EMS standard such as ISO 14001 is a positive message that can be easily conveyed and recognised by customers, suppliers, staff, investors, local authorities and other regulators. However a company does not necessarily require third part certification for its EMS. A company EMS is a system designed to best meet the specific requirements of that particular company. Third party certification does provide a useful support or framework within which to develop an EMS. By achieving an internationally recognised EMS standard, a company demonstrates an ongoing commitment to external stakeholders to manage its environmental impacts in a responsible manner. If a company decides not to develop an EMS that meets an accredited standard, the framework provided by these standards may still be useful as a starting point to developing an effective EMS tailored to the specific requirements of a company. ISO 14001 The International Standards Organisation (ISO) international accredited standard for environmental management, the ISO 14001, is the most widely used and accepted EMS standard. This standard is voluntary, certifiable and is accepted by stakeholders across the world as the preferred model for environmental management.

The European Union recognises ISO 14001 which is considered a stepping stone for the EU Eco-Management and Audit Scheme (EMAS). EMAS is a management tool for companies to evaluate, report and improve their environmental performance, incorporating the ISO14001 environmental management system. Participation in EMAS is voluntary. Basic Steps in Environmental Management 1. Preparation Consult and involve all staff at an early stage. This may include discussion and training sessions on environmental issues to encourage involvement and better awareness and understanding. Identify staff with knowledge/ expertise/understanding of environmental issues within the company. Assign responsibility to one member of staff or a team. Identify external expertise and support e.g. Enterprise Ireland provide funding towards meeting the costs of hiring an external consultant to assist in the installation of an EMS. Identify environmental objectives to be achieved. Develop an environmental action plan to achieve these environmental objectives.

Environmental Management Guidelines for Small Businesses

2.

Identifying the Environmental Impacts

Suggested Actions Design of your products and services Integrate environmental considerations into the design of your products to prevent or minimise their environmental impact. Provide a product repair service. Establish a collection and recovery system. Raw materials used Substitute hazardous materials with nonhazardous alternatives e.g. water based rather than solvent-based chemicals. Chose raw materials and a design to facilitate eventual end of life disassembly, recovery, reuse or recycling. Choose renewable resources over nonrenewable resources where possible e.g. timber from sustainably managed forests. Packaging Minimise the layers of packaging required. Use one type of packaging material to facilitate collection of waste packaging for reuse, recycling or disposal. Use reusable, returnable and bulk containers. Use biodegradable packaging materials. Production Process Design production processes to eliminate/ minimise waste, noise, emissions to air and water. Examine the use of new cleaner production technologies. Where wastes cannot be reused on site, segregate and collect for recycling or disposal from an authorised waste collector. Distribution/Transport Design storage, distribution and transport to minimise fuel usage.

Before a company can begin to better manage its environmental impacts it must first identify and quantify the issues. An environmental audit will help identify the key environmental impacts of company activities. This may include: Raw materials used, e.g. use of nonrenewable resources and hazardous chemicals. The production process, e.g. waste generated, air, noise and water emissions. Distribution of goods e.g. fossil fuels used in transport of raw materials and final product. Use of final products, e.g. what packaging is necessary. End of life, e.g. collection, recycling and disposal. As you undertake your environmental audit you should also consider: Your environmental legal obligations Market and financial pressures for improving environmental performance, e.g. have any of your competitors achieved certification to the international EMS standard ISO 14001? 3. Opportunities to prevent and minimise environmental impacts

Set realistic objectives and targets for improving your environmental performance as part of an action plan.

Environmental Management Guidelines for Small Businesses

7. Environmental Management Systems

Downstream End of Life of the Product Design products with an extended product life and to facilitate their disassembly, reuse and recycling. 4. Communication

Positive actions that reduce environmental impacts should be promoted and communicated to all relevant parties. Initial success must be built upon by setting higher targets. An EMS should evolve with the company. The key steps to developing an EMS are as follow: 1. 2. 3. 4. Ensure Management commitment to environmental protection. Review the environmental impacts of the business. Identify objectives and targets in managing these environmental impacts. Develop and implement an Environmental Management Programme (EMP) to meet the targets set. Audit the performance of the EMP on an ongoing basis. Measure what targets are being achieved. Identify if objectives need to be changed. Regularly review the EMP performance identify areas of the programme that can be improved. Re-set the objectives and targets in managing these environmental impacts accordingly. Communicate environmental successes to staff, shareholders, suppliers, customers, regulators and local communities, as appropriate.

When your company has made efforts to improve environmental performance, make sure to communicate this success to your staff, customers, suppliers, investors and the general public. Apart from the environment and cost saving benefits, your efforts provide a marketing opportunity that could lead to increased sales. Ultimately your efforts can improve relationships with key stakeholders e.g. customers, suppliers, shareholders, regulatory authorities and local communities. 5. Ongoing Improvements

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Remember that the EMS must constantly evolve to meet new challenges and opportunities. Owner-managers must provide for a regular review of the EMS, incorporating changes such as, new legal requirements and challenges from the competitors.
Copyright 2007 Published by the Small Firms Association 84/86 Lower Baggot Street Dublin 2 Telephone: 01 605 1500 Fax: 01 661 2861 E-mail: info@sfa.ie Website: www.sfa.ie This guide is intended to generate discussion and/or consideration of the more important issues to be taken into account when examining environmental management issues. The SFA or AIB Bank do not accept responsibility for any loss or damage occasioned by any person acting or refraining from acting as a result of the material in this guide. Detailed professional advice should always be obtained before acting on any matter raised in this guide.

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8. Summary An Environmental Management System is a tool that highlights the environmental impacts of a companys activities and incorporates these into the existing management structures. Better management of environmental impacts is required under legislation, but also provides an opportunity for real cost savings and an improved relationship with staff, customers, suppliers, investors and regulatory bodies.

Further information is available at www.envirocentre.ie