Design for environment: A new framework for strategic decisions

For most of its history of environmental protection, U.S. policy has concentrated on a pollution control strategy based on single medium emissions: air, water, or land. Efforts to mitigate environmental impacts to one medium often resulted in greater impacts to others. While much environmental improvement has occurred via this system over the last quarter-century, it is generally recognized that alternative strategies which address environmental impacts across all media in an integrated manner will be necessary for continued improvement. Increasingly, regulatory strategies that result in only passive compliance will be insufficient to meet these demands. This article demonstrates why new strategies which encourage proactive behavior are necessary. A new framework for making strategic decisions—design for environment—concerning the relation between our actions and environment is necessary to ensure a sustainable future.     

Strategic evaluation of environmental projects in SMEs

This article examines how small and medium enterprises (SMEs) can improve their capital investment decisionmaking process for both environmental and general capital projects. It proposes a framework that helps integrate environmental impacts into capital investment decisions, while recognizing SMEs' specific management practices, unique culture, and constraints. The framework presented here is also applicable to independent strategic business units of larger organizations where the capital investment decision process is decentralized. ©2000 John Wiley & Sons, Inc.     

Environmental Pollution Challenges and Associated Planning and Management Issues Facing Offshore Oil and Gas Field Development in the UK

Reducing the environmental impact of offshore operations is one of the most pressing challenges facing the oil and gas industry in Europe today. A study was conducted to review the issues by literature search, and consultation with stakeholders and experts. It was clear from the literature search that considerable research had been dedicated to: protecting the marine environment; achieving compliance with legislative controls; assessing the technical and economic feasibility of platform disposal options; and ecological surveying. By comparison, considerably less research had been carried out in other important areas such as: assessing the impacts wastes returned to shore for disposal; identifying sustainable strategies for operations; and assessing and mitigating against adverse impacts from atmospheric emissions. It is clear that the environmental regulatory regime offshore will become tougher and have an increasing influence on offshore oil and gas field environmental planning and management. Future regulatory developments include: a streamlining of the offshore oil and gas environmental regulatory regime; the introduction of the Habitats Directive into the licensing system; and the Offshore Combustion Installations (Prevention and Control of Pollution) Regulations 1999. In addition, post Kyoto regulatory developments and societal concern over atmospheric pollution, will increasingly focus efforts on reducing the emission of global warming gases. These changes, coupled with the uncertainty over how resilient the environment is to perturbation, present a need to clearly manage environmental information.     

Achieving environmental excellence through TQEM strategic alliances

Generally speaking, today's TQEM initiatives do not improve a firm's activities beyond the shipping dock and onto consumer and postconsumer use and reuse. Although internal TQEM efforts do improve environmental impacts of a firm's operations, most firms remain focused on the traditional bottom-line objective of increasing throughput. For these reasons, most firms implementing TQEM miss the many opportunities to improve environmental performance (including cost and quality) through asset recovery, resource sharing, and reuse. However, by taking the advantages of teamwork beyond corporate boundaries, firms can close the loop on environmental improvements. Inter-firm teaming for environmental advantage, which we define as TQEM alliancing, initiates a cyclical approach to environmental performance improvement. It does so by forging strategic relationships among firms that can leverage each other's environmental weaknesses. TQEM allying is a round-robin game plan. In this article, the authors show how it allows firms to take their environmental improvement initiatives beyond regulatory compliance (and into proactivity), beyond pollution control (to total pollution avoidance), and beyond profitability (for a quantitative as well as qualitative bottom line), because firms will be integrating external as well as internal functions across different business domains.     

SMEs and voluntary environmental initiatives: a study of stakeholders' perspectives in Hong Kong

The environmental performance of Hong Kong's businesses is currently perceived as rather poor. Small and medium-sized enterprises (SMEs) in particular are mostly unaware of the environmental impact of their business. Government and professional bodies have recently started to develop various initiatives to improve the SME sector's awareness of environmental and social issues, and external factors such as supply chain requirements, consumer preferences and energy prices are also exerting a growing influence. Based on extensive interviews with representatives of seven key stakeholder groups, this paper explores the effectiveness of such drivers to engage SMEs with environmental change and corporate social responsibility (CSR). It finds that most existing efforts, such as environmental support programmes and award schemes, do not have a great impact on the environmental and social performance of Hong Kong's SMEs.     

Environmental compliance: The good, the bad, and the super green

Although many empirical studies have examined firms' decisions to participate in voluntary environmental programs, relatively few have examined why firms choose different levels of compliance with environmental regulations. This paper uses primary data to examine why some firms violate regulatory standards on water pollution, solid waste, toxic and hazardous waste, and hazardous air emissions, while others over-comply with them. The results suggest that different factors drive decisions to violate or over-comply with an environmental regulation. Some evidence was found to support the strategic behavior theory of environmental overcompliance, but no corroborating evidence was uncovered to support the green consumer theory.     

A comparison of sustainability theory with UK and European airports policy and practice.

There are three main theoretical difficulties involved in relating sustainability to aviation, and which a research agenda for sustainable aviation needs to address. The first is uncertainty regarding the critical thresholds of global environmental systems. The second is a lack of protocols for allocating permissible environmental consumption shares to, and hence targets for, individual enterprises or sectors. The third is differing value judgements of what natural features should be sustained. For the time being, these difficulties preclude determination of the degree of sustainability or unsustainability of any individual airport with respect to global environmental systems. Nevertheless, at this stage it can at least be said that since most economic activity has an adverse environmental impact, airports with higher throughputs of material and people will tend to be less sustainable than smaller-scale airports given similar technologies and regulatory compliance. This is theoretically supported and illustrated with waste arising as an indicator at reviewed airports. Despite governmental policies of sustainable mobility, there is a disjunction between EU and UK policy on airports and individual airport practice, and environmental sustainability theory. In the UK and EU, airport practice and governmental policy is to mitigate the impacts of aviation, but not at the expense of its aviation growth. This mitigation practice is summarised for the reviewed airports and presented in a framework that accounts for the suggested, interim approach to sustainability assessment.     

System Dynamics to Sustainable Water Resources Management in the Eastern Snake Plain Aquifer Under Water Supply Uncertainty1

Abstract: Water supply uncertainty continues to threaten the reliability of regional water resources in the western United States. Climate variability and water dispute potentials induce water managers to develop proactive adaptive management strategies to mitigate future hydroclimate impacts. The Eastern Snake Plain Aquifer in the state of Idaho is also facing these challenges in the sense that population growth and economic development strongly depend on reliable water resources from underground storage. Drought and subsequent water conflict often drive scientific research and political agendas because water resources availability and aquifer management for a sustainable rural economy are of great interest. In this study, a system dynamics approach is applied to address dynamically complex problems with management of the aquifer and associated surface‐water and groundwater interactions. Recharge and discharge dynamics within the aquifer system are coded in an environmental modeling framework to identify long‐term behavior of aquifer responses to uncertain future hydrological variability. The research shows that the system dynamics approach is a promising modeling tool to develop sustainable water resources planning and management in a collaborative decision‐making framework and also to provide useful insights and alternative opportunities for operational management, policy support, and participatory strategic planning to mitigate future hydroclimate impacts in human dimensions.     

SME environmental attitudes and participation in local‐scale voluntary initiatives: some practical applications

This paper briefly assesses the economic efficiency case for voluntary initiatives (VIs), discusses some limitations of this type of policy instrument and goes on to consider the role that local‐scale voluntary initiatives might play in assisting small and medium sized enterprises (SMEs) to embrace the issue of environmental performance improvement. The paper examines SME organizational management in relation to the likely effectiveness of their participation in voluntary environment programmes. An environmental attitudes survey carried out with 62 SMEs in East Anglia found that willingness to become involved in such initiatives does exist, but that a better presentation of opportunities for prospective small firms, together with a more tailored approach, will be necessary if VIs for SMEs are to become a more extensive feature of environmental policy making in the UK.     

Environmental cost accounting: The bottom line for environmental quality management

Recent years have seen the environment emerge as one of the most pressing issues facing American business. Eventually, environmental costs will affect the bottom line of every American company. A recent study in the National Law Journal estimates that cleanup of the nation's known hazardous wastes sites will cost $752 billion over thirty years under current environmental policies. Environmental legislation and regulations impose annual compliance costs estimated by the Environmental Protection Agency at more than $30 billion. In the near future, environmental expenses for cleanup, regulatory compliance, and management are anticipated to grow to between 2.5 and 3 percent of GNP. Corporations that wish to be competitive must successfully manage these costs while maintaining or improving their role as responsible corporate citizens. Implementing a comprehensive system for identifying and managing environmental costs requires a multidisciplinary team effort. Environmental costs impact product selection, design and pricing, capital budgeting, and future strategic direction. In order to make informed and meaningful managerial decisions on environmental programs, real cost data are vital. An environmental management systems (EMS) requires information to set goals and then monitor progress towards those goals over time. This article will discuss the current cost accounting systems (CASs) available to support the myriad goals of environmental management systems. In addition, the article will outline a framework for plotting the location of your current EMS on a matrix of regulatory and information requirements and evaluating whether your corporation's CAS is adequate to support the goals and objectives set by your environmental management program. By anticipating future regulatory and information requirements, flexible systems can be developed to adapt to new and more stringent regulations and more complex information requirements.     

Simulation of Halocarbon Production and Emissions and Effects on Ozone Depletion

/ This paper describes an integrated model that simulates future halocarbon production/emissions and potential ozone depletion. Applications and historical production levels for various halocarbons are discussed first. A framework is then presented for modeling future halocarbon impacts incorporating differences in underlying demands, applications, regulatory mandates, and environmental characteristics. The model is used to simulate the potential impacts of several prominent issues relating to halocarbon production, regulation, and environmental interactions, notably: changes in agricultural methyl bromide use, increases in effectiveness of bromine for ozone depletion, modifications to the elimination schedule for HCFCs, short-term expansion of CFC demand in low use compliance countries, and delays in Russian Federation compliance. Individually, each issue does not unequivocally represent a significant likely increase in long-term atmospheric halogen loading and stratospheric ozone depletion. In combination, however, these impacts could increase peak halogen concentrations and long-term integral halogen loading, resulting in higher levels of stratospheric ozone depletion and longer exposure to increased levels of UV radiation.KEY WORDS: Halocarbons; Ozone depletion; Montreal Protocol; Integrated assessment     

Effectiveness of self-identified and self-reported environmental regulations for industry: The case of stormwater runoff in the US

US environmental controls for industry include numerous regulations that rely on the regulated community to self-identify, monitor, report, or complete other requirements on their own recognizance. These include state- and federal-issued general permits for stormwater discharges associated with industrial activities, effective in 1992, with known incomplete compliance by 2004. Results demonstrate highly incomplete compliance with variation in effectiveness among studied states and urbanized regions. Texas and Oklahoma, administered by US EPA during the research period, have attained higher compliance rates than California, administered by a state agency, or Florida, also administered by US EPA. Specific program designs and implementation strategies employed by states are evaluated for impacts on states' compliance effectiveness.     

Implementing an environmental business strategy: A step-by-step guide

With more and more organizations seeking opportunities to generate benefits beyond compliance from environmental management activities, the challenges for environmental directors today is to develop and implement an environmental strategy that links environmental performance with the overarching strategic business goals of the organization. Organizations today are looking for opportunities to develop environmental management solutions that not only address the concerns of regulatory stakeholders, but also provide opportunities to improve operating efficiency and financial performance, enhance customer satisfaction, sustain market growth, and enhance goodwill, to satisfy the demands of a broader set of stakeholder groups including customers, investors, and employees. To achieve broader benefits from environmental management investments, this article shows how organizations must first develop a methodology for aligning their environmental management activities with the organization's strategic business goals and create a plan for systematically managing continuous improvement to achieve these goals. The second challenge is to implement this strategy at the business unit and facility level in a manner which integrates environmental management activities with an organization's core business processes to achieve improved product and service performance.     

Business-oriented environmental performance metrics: Building consensus for environmental management systems

Today, environmental managers are learning new ways of adding value to their organizations. Before, the environmental department was an overhead expense—an indirect support group required for complying with burdensome regulations. Now, such departments add insights and value during strategic planning sessions, identify efficiency improvement opportunities, provide a superior return on investment, and—bottom line—improve profits. The primary approach to meeting the challenge is a new environmental management system (EMS) that identifies, measures, and manages a diverse set of internal and external customer needs. These needs include environmental cleanups, regulatory compliance, pollution prevention, and design for the environment—and each represents a potential improvement opportunity. Unfortunately, most organizations have so many such needs that all cannot be addressed at once, given the resource constraints of a competitive business climate. Thus, priority is a key concept of an effective EMS. This article describes an innovative application of consensus-building tools that quickly identify and set priorities for diverse environmental programs. The article also shows how appropriate performance measures will align these programs with corporate goals and objectives.     

The ISO 14001 EMS Implementation Process and Its Implications: A Case Study of Central Japan

/ This study aims to investigate the ISO 14001 implementation process and its implications for regional environmental management. The region of Central Japan (known as Chubu in Japanese, which literally means center) was chosen for this case study. The study focuses on selected issues such as the: (1) trends and motives of private firms in the implementation of an ISO 14001-based environmental management system (EMS); (2) obstacles during system implementation; (3) role of the system in enhancing environmental performance within the certified organization; and (4) relation between the major stakeholders, local citizens, governments, and firms after adopting the system. To achieve these objectives, a questionnaire survey was mailed to all certified firms in the region. A 58% response was achieved overall. The results show that the main aims behind the adoption of ISO 14001 by firms in the Chubu region are to improve the environmental aspects within the enterprises and to enhance the employees' environmental awareness and capacity. The results have also shown that the ISO 14001-based EMS has had a great effect on a firm's environmental status as certified firms have claimed that natural resources such as fuel, water, and paper consumption have been more efficiently managed after adopting the system. Implementation of the system causes the firms to consider the role of the local people and the government in more effectively involving the local people in the firm's daily environmental activities. It also helps to enhance the environmental awareness among the local people. Adopting the system also promotes a better relation within the enterprises affiliated to the same group, such as more attention given by the parent firms (head offices) towards other firms working for the same group, or branches-mainly small and medium sized enterprises (SMEs)-in the field of EMS. Finally, the results show that firms give serious consideration to their final products' impacts on the environment. In other words, attention is given to life cycle analysis (LCA) among certified firms.     

Material efficiency: A white paper

For most materials used to provide buildings, infrastructure, equipment and products, global stocks are still sufficient to meet anticipated demand, but the environmental impacts of materials production and processing, particularly those related to energy, are rapidly becoming critical. These impacts can be ameliorated to some extent by the ongoing pursuit of efficiencies within existing processes, but demand is anticipated to double in the next 40 years, and this will lead to an unacceptable increase in overall impacts unless the total requirement for material production and processing is reduced. This is the goal of material efficiency, and this paper aims to stimulate interest in the area. Four major strategies for reducing material demand through material efficiency are discussed: longer-lasting products; modularisation and remanufacturing; component re-use; designing products with less material. In industrialised nations, these strategies have had little attention, because of economic, regulatory and social barriers, which are each examined. However, evidence from waste management and the pursuit of energy efficiency suggests that these barriers might be overcome, and an outline of potential mechanisms for change is given. In bringing together insights into material efficiency from a wide range of disciplines, the paper presents a set of 20 open questions for future work.     

Industry's role in air quality improvement: Environmental management opportunities for the 21st century

More than 200 years ago, Adam Smith, the founder of modern economics, wrote in the Wealth of Nations that “…consumption is the sole end and purpose of all production; and the interest of the producer ought to be attention to…that of the consumer.” In recent years, the rapid growth of the world economy has given Adam Smith's maxim new meaning. The age-old desire for consumption grows unabated and increasing numbers of consumers around the world are attaching new value to the environmental quality of goods and services and expressing concern over the environmental impacts of industrialization. That concern is growing because more than 70 percent of the world's urban population live in areas where the air is seriously polluted and as many as 750,000 people—the majority in developing countries—die each year of ailments caused by air pollution.¹ Over the past 25 years, corporations throughout the world have made dramatic changes in the way they do business as more people come to understand how the ecological system works and how polluted air and water endanger human health. The key to increasing industry's participation in the drive for higher standards of air quality is the growing realization that effective environmental management, technological development, and technology dissemination are cost-effective and profitable business strategies. Global competition is making firms around the world more customer-conscious and, to the extent that consumers demand products that minimize environmental degradation and enhance the quality of their lives, businesses in every industry must respond in order to survive.² This article examines how changes in business practices, driven by a better understanding of how natural environments function, are converging to provide new opportunities for environmental management that go beyond regulatory compliance to reduce air pollution. Although sound and well-enforced environmental regulations are an essential foundation for improving air quality, command-and-control systems alone are unlikely to achieve the lower levels of pollution that will be necessary to achieve sustainable development in the 21st century. In cooperation with government, businesses in every industry can play crucial roles in achieving higher standards of air quality while at the same time maintaining acceptable levels of economic growth. We explore three ways in which corporations can contribute to environmentally sustainable development: (1) by adopting proactive environmental management systems that focus on air pollution prevention; (2) by developing new technologies for air pollution control and reduction; and (3) by transferring air pollution control and prevention technologies through international trade and investment.     

A Multiattribute Index for Assessing Environmental Impacts of Regional Development Projects: A Case Study of Korea

Evaluating environmental impacts has become an increasingly vital part of environmental management. In the present study, a methodological procedure based on multiattribute utility theory (MAUT) has been applied to obtain a decision-maker's value index on assessment of the environmental impacts. The paper begins with an overview of MAUT. Next, we elicited strategic objectives and several important attributes, and then structured them into a hierarchy, with the aim of structuring and quantifying the basic values for the assessment. An environmental multiattribute index is constructed as a multiattribute utility function, based on value judgements provided by a decision-maker at the Korean Ministry of Environment (MOE). The implications of the results are useful for many aspects of MOE's environmental policies; identifying the strategic objectives and basic values; facilitating communication about the organization's priorities; and recognizing decision opportunities that face decision-makers of Korea.