Measuring environmental success

Process improvement, environmental results, and customer satisfaction all can—and need to—be measured in order to achieve total quality environmental management. This article details why and how to take such measures, with examples of leading company practices.     

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.     

ISO 14001: A systems approach to managing environmental risk

The field of environmental risk management is relatively new and has developed rapidly over the past several years. There has been, however, a significant lack of integration of seemingly dissimilar disciplines into a meaningful context for top management risk decisions—until now. A new holistic approach, centered on the ISO 14001 standard for environmental management systems, addresses many of the issues that have kept environmental risk management focused on technical rather than strategic issues. This article describes the risk management process, illustrates how the ISO 14001 standard can be used by organizations to integrate and assess technical environmental information, and shows how to place this information in a strategic risk management context. It also explains how key ISO 14001 concepts such as policy implementation, operational control, and continuous improvement form the basis of a systems approach, and why the systems approach is the preferred, cost-effective structure for controlling environmental risk.     

Benchmarking compliance performance: A new chemical industry report

Environmental Information Services, Inc. (EIS) publishes detailed reports and offers custom research related to the full spectrum of environmental issues facing corporations. In this new article, EIS reports on the compliance performance of the largest companies in the chemical industry focusing on five key environmental concerns: toxic waste management, air pollution, water pollution, spills, and Superfund. It is important to note that the following article does not contain normalized data and graphs which would adjust findings to various size features (e.g., domestic revenues per company). This as well as detailed environmental policy and programs data on each company can be obtained from EIS. In future issues of EQM, EIS compliance reports will be presented for other major industries to help companies of all sizes benchmark their environmental performance and improvement efforts.     

Kodak's safety performance indexing—a tool for environmental improvement

Safety performance has a direct effect on employees' productivity and quality of work life, and on company profits and image in the community. Enormous human and financial losses can result from poor safety performance, and all such losses are preventable. To prevent these potential losses, safety performance must be continually improved across all levels of the organization. Effective safety programs are the key to improved safety performance. But how do we know when a safety program is effective? How can we measure safety performance and set goals for improvements? How can we track progress toward these goals? This article demonstrates how a powerful performance management tool —performance indexing— can be used to help improve safety performance throughout your company. This tool can also be used to measure, track, and improve environmental and occupational health performance.     

Expanding the benefits of environmental management systems through DFE

Industry's role in environmental protection is changing and growing. Increasing evidence shows that a corporation's understanding and response to environmental issues and concerns can have strategically important consequences for some kinds of businesses.¹ Focusing on concepts of prevention, industry has developed and struggled with a number of environmental approaches, all of which attempt to link the environment with common business practice. Industry has followed and in some cases embraced concepts and approaches like sustainable development, eco-efficiency, green manufacturing, pollution prevention, and extended product responsibility. A particularly timely and promising strategy to reduce the environmental impact of both manufacturing and product use while enhancing business success is the integration of environmental management systems (EMS) with design for the environment (DFE) efforts. A desirable relationship can and should exist between DFE and EMS. This relationship has not been well understood, but is crucial to fulfill the promise of each. In application, the institutionalization of DFE in an organization is difficult and tenuous at best. Some authors suggest that management issues block the implementation of DFE.² Others say that DFE has not been institutionalized to the extent that pollution prevention has.³ This article suggests that through an explicit connection between an EMS and DFE, DFE can extend the promise of EMS to reduce industry's environmental impact and produce business success, and it can do so in an ongoing way. The authors will show the importance of an EMS/DFE linkage, suggest company types that might benefit from investigating these approaches, and then review a series of DFE tool types.     

Reducing life-cycle environmental impacts: An industry survey of emerging tools and programs

Corporate environmental practices have been evolving quite rapidly in recent years, as consumers express their preferences for environmentally friendly products and practices, as manufacturers look “upstream” and inquire into their suppliers' environmental practices due to liability and marketing concerns, and as company operating costs increase as a result of new environmental regulations. New corporate efforts are made to anticipate (rather than respond to) outside environmental pressures, to internalize costs, and to find strategic opportunities or competitive advantages based on company or product environmental performance. This article describes a survey and research project designed to explore one aspect of these evolving corporate practices—the use of analytical tools and associated programs, such as life-cycle assessment and design-for-environment—by companies to account for impacts throughout a product'S life-cycle.     

Benchmarking compliance performance: A new petroleum industry report

Environmental Information Services, Inc. (EIS) publishes detailed reports and offers custom research related to the full spectrum of environmental issues facing corporations. In this new article, EIS reports on the compliance performance of the largest companies in the petroleum industry focusing on five key environmental concerns: toxic waste management, air pollution, water pollution, spills, and Superfund. It is important to note that the following article does not contain normalized data and graphs which would adjust findings to various size features (e.g., worldwide revenues per company). This as well as detailed environmental policy and program data on each company can be obtained from EIS. EIS reports help companies of all sizes benchmark their environmental performance and quality improvement efforts.     

ISO 14000: A return to command and control?

Over the last few years, commentators on all sides of the environmental debate have (with a few exceptions) joined hands to pillory the traditional model of environmental regulation in this country. The catch phrase “command and control” has become emblematic of everything that was seen as being wrong with the old system. The current push for “reinvention” of environmental regulation reinforces the concept that although traditional methods have produced progress, they have outlived their usefulness. At the same time, ISO 14000 has emerged as one of the hottest topics in the environmental field—a form of reinvention of environmental management that has been embraced by many as the solution to an array of problems. While it is still early in the game, initial results indicate that when used effectively, ISO 14000 can be a powerful tool for the environmental manager. However, misuse of ISO 14000 could represent a throwback to command and control rather than a management tool for the new millennium. This article examines how this new tool fits into the evolving picture of environmental regulation and management.     

Corporate environmental excellence and stewardship: Five critical tasks of top management

One of the most important challenges facing business is shaping the role of senior management in corporate environmental performance. In some leading companies, the CEO or chairman takes the initiative to carefully define his or her role because of a strong personal commitment, a keen grasp of the business incentives, in response to past problems, or because of a combination of these. In other companies, even where corporate policies genuinely support and promote corporate environmental, health, and safety programs, there may still be inaction or reluctance on the part of top management to participate or get involved. This management posture may work for a few more years, but no longer than that—and could quickly become a major detriment to any company's ongoing market success or viability. This article will focus on a strategy for getting top management involved in your company's programs and, where they are already involved, for sharing some insights we have gained from our work with a number of companies where top management has taken a strong role in environmental issues and has established precedence for what can work well.     

The environmental quality business plan: A step-by-step guide

Companies that have the most effective environmental programs are those that have integrated environmental management into the business process. In order to take an environmental program to a higher level, we must determine a way to get business leaders to acknowledge the business benefit of environmental programs. Business integration becomes more likely when you speak the language of management and present tools that they regularly use. Most companies use business plans, therefore the use of an environmental quality business plan is a segue into the business. To catch management's attention, we must present cost improvement projects that will be part of the environmental quality business plan that affect the bottom line. Examples of the types of projects that could potentially save the company millions of dollars are reducing the cost of remediation, or pollution-prevention projects such as minimizing packaging and the elimination of chemical use and waste. Once we catch management's attention, we can get them involved in developing an environmental quality business plan and thus get more business integration and support.     

Environmental marketing's new relationship with corporate environmental management

Issues of environmental marketing track back to issues of environmental management—i.e., to issues of overall corporate environmental commitment and responsibility. It is absolutely essential that a commitment to corporate environmental improvement be in place before an environmental marketing program is launched. Additionally, marketers can and should play a central role in the greening of the corporation. The marketer brings at least two important skills or strengths to the environmental improvement process—strengths of perspective and strengths of skill set.     

A Role of Fair Trade Certification for Environmental Sustainability

Although most studies on the Fair Trade initiative are, to some extent, cognizant of its contribution to environmental sustainability, what the environmental aspect means to Fair Trade has not yet been explored fully. A review of environmental issues in the Fair Trade literature suggests that Fair Trade might influence participant producers’ farming practices even if it does not directly impact natural resources. This paper attempts to interpret Fair Trade certification as an intermediary institution that links two significant objectives of rural development in the global South—environmental conservation and poverty reduction. This theoretical concept is examined in different real settings by observing four cases of Southern small farmer groups involved in the Fair Trade initiative. Findings from these case studies imply that if Fair Trade certification ensures tangible benefits for small farmers, it can not only help such disadvantaged farmers but also work as an approach for natural resource management.     

The strategic gap in air-quality management

The successful management of atmospheric pollution is best achieved when the benefits of controls can be clearly demonstrated to those who the controls affect. There is a need to demonstrate to a population that change will benefit the social and biophysical aspects of that population’s environment as a whole. This paper suggests that policy-makers need to demonstrate clearly the advantages of a change in behaviour for the local environment while concurrently minimising the life-style costs of the people whose co-operation is needed to bring that change about. This requires an improved understanding of the activities affected and the message and media by which environmental benefits can be communicated in the light of that understanding.Using the example of tropospheric ozone, this paper argues that air-quality management requires close regional co-ordination which can facilitate the establishment and implementation of local policy options. The ability of the UK National Air Quality Strategy to achieve this in its present form is discussed and the existence of a strategic gap between the current approach to air-quality management and the major issues surrounding air quality considered.     

Highlights from a new chemical industry report benchmarking performance,policies, and expenditures

Environmental Information Services Inc. (EIS) publishes detailed reports and offers custom research related to the full spectrum of environmental issues facing corporations. This article highlights several key sections from EIS's new 1997 Chemical Industry Report. It details the environmental performance, policies, and expenditures of the largest companies in the chemical industry. EIS industry reports contain data on five key performance criteria—toxic waste management, hazardous waste generation, penalties, spills, and Superfund sites. Here we examine one of those—penalties—and the policies of three of the largest companies in the chemical industry. In the full report, which can be obtained from EIS, 15 corporations are analyzed based on all the performance criteria.     

Rights & Nature

Due to the significant and often careless human impact on the natural environment, there are serious problems facing the people of today and of future generations. To date, ethical, aesthetic, religious, and economic arguments for the conservation and protection of the natural environment have made relatively little headway. Another approach, one capable of garnering attention and motivating action, would be welcome. There is another approach, one that I will call a rights approach. Speaking generally, this approach is an attempt to address environmental issues via the language and theory of legal and moral rights. Ultimately, it is our duties to our fellow humans that explain why we have duties regarding the natural environment. There are three main contenders among theories that can be called rights approaches to environmental issues. The first identifies the (alleged) human right to a healthful environment as the source of our obligations to conserve and protect nature. The second approach has it that our duties to nature arise from the rights of the constituents of nature themselves, its flora and fauna. The third approach to addressing environmental problems via rights is, I argue, the best path to environmental conservation and protection. This approach—which grounds duties toward nature on the human right to health—has the benefits of being a straightforward, uncontroversial, and simple approach to issues and problems that desperately need to be resolved.     

Highlights from a new petroleum industry report benchmarking performance,policies, and expenditures

Environmental Information Services, Inc. (EIS) publishes detailed reports and offers custom research related to the full spectrum of environmental issues facing corporations. This article highlights several key sections from EIS's new 1998 Petroleum Industry Report. It details the environmental performance, policies, and expenditures of the largest companies in the petroleum industry. EIS industry reports contain data on five key performance criteria—toxic waste management, hazardous waste generation, penalties, spills, and Superfund sites. Here we examine one of those—penalties—and the policies of the three largest companies. In the full report, which can be obtained from EIS, 15 corporations are analyzed based on all the performance criteria.     

Indigenous Studies Speaks to Environmental Management

This article describes the increasing connections between the fields of Indigenous studies and environmental management and examines some of the ways that an Indigenous studies perspective can guide thinking about environmental management. Indigenous groups have been involved in the management of environmental and natural resources on their lands since time immemorial. Indigenous groups have also become increasingly involved in Western practices of environmental management with the advent of co-management institutions, subsistence boards, traditional ecological knowledge forums, and environmental issues affecting Indigenous resources. Thus, it is an important time for scholarship that explores how Indigenous groups are both shaping and being affected by processes of environmental management. This article summarizes key findings and themes from eight papers situated at the intersection of these two fields of study and identify means by which environmental managers can better accommodate Indigenous rights and perspectives. It is the authors’ hope that increased dialog between Indigenous studies and environmental management can contribute to the building of sustainable and socially just environmental management practices.