Justifying the cost of EMIS: Piloting lessons from Rhone-Poulenc

Two worlds are colliding as many companies are integrating environmental management with business management. Nowhere is this more evident than in the hundreds of companies that are now working to upgrade their environmental management information systems (EMIS), which are a critical component of business integration. Building a business case for EMIS requires crossing many disciplinary boundaries—knowing the language of information systems, accounting, business management, and environmental management. Hence, it is a very valuable skill for environmental managers to develop in order to build their function and their own careers. Some environmental and information systems professionals are attempting to develop a general set of guidelines for justifying the cost of EMIS—in particular, the useful emerging work of the Environmental Health and Safety Software Development Group. This article relates the experience of an EMIS development effort at Rhone-Poulenc, Inc.     

Systems vs. metasystems: EMIS at the crossroads

As environmental management responsibilities expand beyond regulations to address business issues such as design for the environment, total cost accounting, and strategic planning, it is tempting to plan for expanded information systems (EMIS) to handle new responsibilities. The author argues that we should pursue exactly the opposite course: shrink the EMIS to the minimum size possible. It would be impossible to feed the self-standing EMIS with all the data it needs—replicas of almost any data tracked by the organization. The EMS and EMIS should be “meta-systems” that store the organization's knowledge about how EH&S relates to various business processes, and what should be measured and reported to assure that EH&S objectives are met. The author provides examples of how companies are creating these EMS “metasystems” by leveraging enterprise systems implemented for accounting, business planning, groupware, maintenance, and process control.     

Environmental management information systems: New tools for measuring performance

Successful implementation of environmental management information systems (EMIS) has become essential to the success of total quality environmental management (TQEM) programs. Effective TQEM programs will be early indicators of which companies survive and thrive in today's competitive business environment. Highly competitive industries such as chemicals, electronics, and oil and gas are becoming very effective in cooperating to develop metrics, models, and tools that are based on business processes rather than regulatory edicts. Now electric power companies, newly exposed to market competition, are starting to develop and implement these metrics, standards, and tools. That industry provides a model for joining TQEM and EMIS.     

How to integrate information strategy planning with environmental management information systems—part I

Rational, cost-effective provision of mission-critical environmental management information remains elusive for almost all large enterprises. Even among the best performing companies—best performing from the perspectives of profitability, quality and/or environmental stewardship—environmental management information systems (EMIS) are usually comprised of dozens to hundreds of individual, isolated applications that require costly data capture, training, and maintenance. This article, the first of two, will discuss ways to coordinate information infrastructures with strategic goals and business processes.     

Forging new links between environmental management,information systems,and business processes

This article is excerpted from Chapter 1 of Environmental Management Information Systems, which will be published by McGraw-Hill in 1994. A central theme of the book is that all successful implementations of environmental management information systems (EMIS) are based on the appropriate alignment of goals and procedures from three enterprise domains: business processes, environmental management, and information systems. Environmental managers (EM) and information systems (IS) professionals have each been guilty of seeing their functions as primary, domains of specialized scientific expertise inaccessible to outsiders. In fact, however, the enterprise is the customer for both domains; without successful business strategies and systems the enterprise does not require either EM or IS wizards. This article shows why and how essential it is that each of the three domains understands enough of the other two domains to structure good decisions.     

GIS技术在环境管理信息系统中的应用研究

资源与环境保护是人类可持续发展的重要组成部分,环境问题的日益复杂对环境管理水平提出了更高的要求,环境管理信息系统(EMIS)在此基础上应运而生。GIS技术和环境信息在概念和研究对象上具有相似性、互补性,因此基于GIS技术的EMIS的研究将把我国的环境信息管理工作推上一个崭新的、科学的、高效的平台。环境模型与空间信息的耦合是二者结合的发展趋势。     

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.     

Getting started with environmental cost accounting

Proactive corporations have been looking at methods to determine the real costs of doing business, including environmental costs using environmental cost accounting (ECA) methodology. Many companies do not track or measure environmental costs and therefore do not know their true environmental costs. Unfortunately, conventional accounting practices rarely tease out environmental costs, and the costs associated with environmental compliance remain hidden in general overhead accounts. ECA can bring the world of business and the environment closer. When we have a better handle on environmental costs, we can use this information to better prioritize environmental projects, identify cost improvement projects, and allocate environmental costs to products. In this article we explore how some companies approach ECA and show how to initiate an ECA program.     

Environmental practices of governance of companies in emerging markets: An analysis of structural relationships

The aim of this study is to analyze the structural relationships between strategy, environmental performance, and disclosure in view of the lack of research on these endogenous activities. To analyze these relationships, an environmental governance proxy consisting of five dimensions was developed for Brazilian companies. Hence, from an economic perspective, a trend is expected of companies disclosing more information and maintaining an environmental governance structure to avoid or reduce potential political costs. Using the structural equation technique, 573 Brazilian companies were analyzed. According to the results, the Brazilian companies’ mean compliance level with environmental governance practices is 49.2%. There is evidence of a positive association between the governance structure and the environmental management system (GSEM) as well as environmental performance (EP) and environmental disclosure levels (DISC). In addition, the level of environmental conflicts of interest a sector faces increased the need for environmental disclosure. Furthermore, the results demonstrate that the latent variables, GSEM and EP, exert direct and indirect positive effects on DISC. In other words, companies with more structured environmental management systems have obtained better performance indicators, and consequently, are more likely to feel encouraged to disseminate environmental information and to reduce political costs than is the case with other companies.     

Life-cycle assessment: A survey of current implementation

Life-Cycle Assessment (LCA) is an analytical tool that evaluates the environmental consequences of a product, process, or activity across its entire life cycle. LCA is used internationally by government and industry to obtain a comprehensive perspective of the interactions between an activity and the environment and provides a method to systematically identify opportunities for improvement. The framework is integrated into environmental management programs motivated by market awareness, public perception, and cost savings. The use of LCA is driven by external forces such as eco-labels and the recent development of the ISO 14000 standards. However, LCA has many shortcomings that need to be addressed. The concerns of poor data quality, data availability, high implementation costs, subjectivity, and lack of standardization have sent LCA into a state of flux. In light of the recent surge of interest in LCA, the authors of this article have conducted a corporate survey that targets the implementation of LCA. Their goal is to determine the level of activity of LCA among known practitioners and to elucidate common themes. This article presents their findings from responses by 34 companies that were known to be actively involved in LCA or contemplating its future use.     

The organization of integrated environmental research in The Netherlands

This article presents new concepts for the organization of increasingly complex environmental research activities on the institutional, the national, or the international level. An environmental research cycle with four phases, similar to the industrial product cycle, is described, and its implications in managing the interface between research, policy making, and enforcement are depicted. Furthermore, five main themes of future environmental research are proposed, including advanced analytical methods, environmental monitoring, an environmental management information system (EMIS), and the development of ecological targets at a national and a global level. The specific tasks of universities, private organizations, and governmental institutions in the total environmental research area are defined and a structure is proposed to develop collaborative networks.     

Designing metrics that fit: Rethinking corporate environmental performance measurement systems

If you don't measure it, you can't manage it. Over the past decade, many companies have recognized this need to track environmental performance. Failure to plan metrics systems to fit organizational needs, work flows, and culture has left many companies with costly and ineffective environmental performance measurement systems. This article presents numerous practical steps for designing effective metrics systems which avoid common pitfalls.     

企业环境管理制度优化及其信息系统框架设计研究

污染源大数据是环保大数据的重要组成部分,然而在以环境管理制度为基础的污染源数据管理过程中,一直存在制度衔接不流畅、数据不共享等诸多问题。本文调研考察了现有各项环境管理制度的衔接情况,提出以排污许可制度为核心,通过与其他环境管理制度有效衔接,实现环境管理的各个环节的有效覆盖。通过SWOT分析法对基于"一证式"改革的环境管理制度优化方案的可行性和必要性进行了深入分析,并以排污许可证为核心,设计企业环境管理信息系统框架。试生产与竣工环保验收实效不足,可转为企业自行备案;将环评审批结论纳入排污许可证,可大幅度减轻企业相关环境管理业务人员的负担。环境管理制度的优化必须建立在部门职能转变与整合之上;同时,还必须获得国家层面的立法与行政的支持;社会舆论的关注与支持也将推动环境管理制度优化的进程。以排污许可证管理为核心的信息系统框架可以有效实现污染源排放信息整合共享。     

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.     

The business implications of implementing ISO 14000

The ISO 14000 standards for environmental management systems (EMS) are voluntary standards intended to aid companies that wish to improve their environmental performance. The standards owe their existence, at least in part, to three widely shared views: (1) that existing environmental management systems are either inadequate or ineffective; (2) that companies will want to improve environmental performance for economic or social reasons; and (3) that governments and stakeholders will require companies to exercise greater control of the impacts to the environment through new regulations. ISO 14000 offers a solution—an ?integrated”? EMS, with components designed to effect sound management in any size organization and in any country. The standards are an embodiment of both the policy and practice of environmental management. This article is a consideration of the business implications of the ISO 14000 series of standards. How will a movement toward an integrated EMS be realized? Who will be in the best position to respond? ISO 14000 is a management system, and it carries with it business consequences.     

Building and managing new compliance delivery systems

Companies today are continuously improving their efforts to incorporate an environmental management system (EMS) in their everyday operations and work practices, with an emphasis on identifying and reducing risks. Risks may include the cost of enforcement penalties, potential workplace dangers to employees, or cleanup liabilities due to past or present practices. Environmental auditing is an effective tool commonly used to enhance an EMS. Typically, there are two levels of auditing: (1) a review of management systems and (2) a review of compliance with regulatory requirements. There is yet another intermediate level of auditing that is more focused than management systems or compliance audits—compliance delivery systems (CDS) audits. This article examines the elements making up these systems for improving compliance performance and provides a ?ready to use”? checklist of items for managers to begin implementation.     

Case studies of ISO 14001: A new business guide for global environmental protection

The intention of this article is to clarify the current status of ISO 14001, the internationally accepted voluntary environmental management system (EMS) standard, which is an effective means to generate continuous environmental performance improvement in an organization as well as significant financial benefits such as operational efficiency improvements (e.g., energy and water savings), reduction in environmental risks and liability expenses, protection of corporate asset value, and public image improvements. The number of “ISO 14001” companies in Europe and the Pacific Rim is steadily increasing with customer and governmental pressure as the driving forces. In the United States, ISO 14001 implementation has lagged behind due to the fact that, so far, the EPA has not supported ISO 14001 as being sufficient for guaranteeing a reliable environmental performance record. Most ISO 14001 certified companies in the United States have been driven by overseas demand, particularly in the microelectronics industry because customers in this industry, especially those in Europe, will simply not do business in the future with companies that are not registered to ISO 14001. It is expected that European demand will continue to push ISO 14001 certification in the United States. Six ISO 14001 case studies in the U.S. chemical, electronics, and plastics industries, along with EPA's attitude toward ISO 14001 are described in this article. The case studies contain the reasons, steps taken, costs, benefits, problems, and future trends of ISO 14001 implementation and certification.     

推动环境信息披露能改善投资效率吗？

落实企业环境责任，推动环境信息披露，有利于推动结构调整和高质量发展。本文根据《环境信息公开办法（试行）》，对发布企业社会责任报告的上市公司环境信息披露进行刻画，基于Richardson投资期望模型对投资效率进行测度，分析环境信息披露对上市公司投资效率的影响。研究发现，环境信息披露能在一定程度上缓解投资不足，但对过度投资的影响并不显著，而且环境信息披露对投资不足的缓解作用在国有企业、两权分离度高等代理成本较高的企业中表现更为显著。本文因此提出推动环境信息披露的建议，一方面发挥政府作用，加大监管压力，确保企业环境责任的落实，健全环境治理企业责任体系；另一方面发挥市场的决定性作用，强化诱致企业披露环境信息的动力，让市场形成对环境信息披露的强需求，促使企业提升环境信息披露水平。     

Comparing Green and Grey Infrastructure Using Life Cycle Cost and Environmental Impact: A Rain Garden Case Study in Cincinnati,OH

Green infrastructure (GI) is quickly gaining ground as a less costly, greener alternative to traditional methods of stormwater management. One popular form of GI is the use of rain gardens to capture and treat stormwater. We used life cycle assessment (LCA) to compare environmental impacts of residential rain gardens constructed in the Shepherd's Creek watershed of Cincinnati, Ohio to those from a typical detain and treat system. LCA is an internationally standardized framework for analyzing the potential environmental performance of a product or service by including all stages in its life cycle, including material extraction, manufacturing, use, and disposal. Complementary to the life cycle environmental impact assessment, the life cycle costing approach was adopted to compare the equivalent annual costs of each of these systems. These analyses were supplemented by modeling alternative scenarios to capture the variability in implementing a GI strategy. Our LCA models suggest rain garden costs and impacts are determined by labor requirement; the traditional alternative's impacts are determined largely by the efficiency of wastewater treatment, while costs are determined by the expense of tunnel construction. Gardens were found to be the favorable option, both financially (~42% cost reduction) and environmentally (62‐98% impact reduction). Wastewater utilities may find significant life cycle cost and environmental impact reductions in implementing a rain garden plan.     

Risk management is part of good management

As the use of hazard and risk assessments becomes more commonplace, the need for and importance of an overall risk management system become apparent. Such a system allows companies to prioritize both their efforts to identify and understand risks and their allocation of resources to manage and control risks. In the future, the most effective risk management systems will be integrated into other business processes and management systems, to ensure that their value as well as their costs are recognized and measured by line operations. For example, chemical and petrochemical companies such as BP Exploration, Monsanto, and Union Carbide are improving on well-established risk management systems by increasing their businesses' involvement in and ownership of the process. This article summarizes the key elements of a risk management system and uses the lessons learned by various companies to define best existing and emerging practices.