Using EH&S management systems to improve corporate profits

An environmental management system (EMS) approach can improve overall corporate performance and demonstrate this improvement to top management in “dollars and cents” language. This article illustrates the importance of a financial management approach to justify investments in environmental, health, and safety (EH&S) excellence. It also describes in detail the elements of the EH&S management assessment and improvement process.     

From Iran: Does Improvement in Corporate Environmental Performance Affect Corporate Risk Taking?

Superior corporate environmental performance (CEP) has become essential to the competitive advantage and financial success of businesses. However, the main reasons managers pay attention to environmental performance are improved reputation in the capital market and profitability, as well as reductions in operating costs and risks. This article describes the findings of a study that examines the relationship between CEP, using a reduction of carbon dioxide (CO₂) emissions as a measure, and corporate risk taking. In addition to indicating a significant negative relationship between CEP and firm risk, the study results also show that a 1% improvement of CEP decreases corporate risk by 3%.     

Do environmental management programs improve environmental performance trends? a study of standard & poors 500 companies

In this article, environmental management programs of Standard & Poors (S&P) 500 companies were evaluated using a series of industry and size-adjusted environmental trend indicators. The statistical analysis shows that a handful of corporate policy, governance, human resources, auditing, and financial parameters are highly relevant to improving corporate environmental performance. The results have implications for corporate environmental efforts as well as future government policies to foster environmental improvement.     

ANSI X12: Data standards for TQEM

One key development in environmental software is the adoption of a common electronic language for exchanging EH&S data. The ANSIX12-based data management tools offer compatibility across platforms within the company as well as between different companies. The X12 syntax makes it easy for environmental managers to integrate functions more closely with either materials management or quality management systems.     

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.     

Total quality product design—how to integrate environmental criteria into the product realization process

Recent case studies on the financial benefits of pollution prevention programs well attest to the notion that a commitment to the environment can help profitability not only by avoiding costs and potential liabilities, but also by generating environmentally-based opportunities for competitive advantage. Achieving these benefits, however, represents a complex management challenge that requires embedding environmental concerns in the day-to-day decisions and actions of a company'S employees. This article shows how the marriage of corporate environmental stewardship and TQM, better known as TQEM, is particularly well suited to the area of product design and why environmental health and safety experts can improve a product'S environmental performance.     

Corporate environmental management study shows shift from compliance to strategy

The Abt study of forty-one mostly Fortune 200 nonservice firms forms a new picture of environmental management. We present data indicating that environmental management is becoming central to corporate strategy and is being managed as an arena of competition rather than as a compliance-driven function. We look at environmental management's new role through four lenses: its relationship to strategic planning; its evolving management structures that show environment increasingly integrated into the main functions of the business; innovation in corporate environmental investments reflecting new drivers beyond compliance; and new management systems and measures of firm-wide performance that demonstrate that environment is being seen increasingly as an arena of competitive concern. We argue that much of the change is driven by three realities. First, as customers integrate environmental values into their conceptions of product quality, they are buying more products with identifiably environmental attributes. This change translates environmental management, historically a cost center, into a potential source of sales revenue, a change which cannot be underestimated. Second, recent life-threatening damage to the global ecosystem and atmosphere reframes environmental management. This moves firms toward a systemic and global approach matched to the globalization of competitive and market concerns, and it places environmental management in the strategic sphere. And third, pollution prevention in its cross-fertilization with total quality management is driving firms to focus on managing environment as an integral part of product management, and is helping them to reassess environmental performance as a contributor to productivity and innovation.     

Using a Balanced Scorecard to Implement Sustainability

Developing social and environmental balanced scorecard measures helps EH&S managers identify the key performance factors that link their department's work to the company's strategic objectives. © 2001 John Wiley & Sons, Inc.     

ESG研究进展及其在“双碳”目标下的新机遇

环境、社会和治理（ESG）是一种由资本市场发展形成的融合多利益相关方诉求的新理念,目的是推动企业提升社会责任和实现可持续发展。推进ESG理念在中国发展,对国家扩大对外开放、增强企业国际竞争力以及实现“双碳”目标具有重大意义。本研究通过综述2019年3月—2022年3月以来国内外以ESG为主题的文献,分析ESG实践特点和发展新动向。研究发现,ESG三要素在金融投资、企业或银行财务表现、企业价值、企业社会责任绩效以及可持续发展能力方面会产生多样化影响。本文建立了一个包含ESG多利益相关方、第三方机构以及ESG代表性指南政策法规的运行体系框架,形象化地凝练了ESG的内涵和实践重点;结合理论研究,运用驱动力、压力、状态影响及响应（DPSIR）分析框架揭示了ESG理念在我国“双碳”目标下的发展方向。最后,建议从三方面推进ESG理念：以工业园区为载体推动企业整体性开展ESG实践创新;推进A股企业扩大ESG实践示范试点,引领中小企业整体提升;引导投资者积极参与ESG投资,推进企业提升现代化环境治理能力。     

Dilemmas and advances in corporate social responsibility in Brazil. The work of the Ethos Institute

This article discusses the development of corporate social responsibility (CSR) in Brazil from the perspective of the Ethos Institute of Business and Social Responsibility. The Institute is a not‐for‐profit, non‐governmental organization, that has played a leading role in the Brazilian CSR effort. In Brazil, CSR initiatives have a long tradition of philanthropy, a consequence of the country's great social inequalities. The increased attention to corporate social responsibility has paralleled growing concern about sustainable development and the intensifying activities of pressure groups (consumers, customers, investors, NGOs, labour unions, the media, among others) that have been increasing since the 1990s as natural resources are progressively becoming exhausted, social tensions rising and environmental conditions deteriorating worldwide. This article identifies problems and obstacles to the growth of corporate social responsibility in Brazil, as well as advances and alternatives for CSR and towards creating conditions for the country to be internationally competitive and sustainable in the financial, social and environmental areas.     

Using groupware to improve the EH&S audit documentation and reporting process

According to Fortune, as of early 1995, some 4,000 companies have purchased Lotus Notes®, the premier entry in an emerging field of software known as groupware. For many companies making the commitment, installation of the software has meant significant capital expenditures as wide area and local area networks and client-server hardware had to be installed to make effective use of Notes' capabilities nationwide and worldwide. A few companies are in the early stages of developing environmental, health, and safety management capabilities. At first blush, the EH&S audit document management process appears to be an ideal application for groupware. It is vitally important that audit tracking systems are put in place and operate effectively. This article shows how groupware can help to achieve this objective.     

Using ISO 14000 for improved organizational learning and environmental management

Since the adoption of ISO 14001, companies have examined the standard and considered certification. Although the framework is useful and enhancing environmental management systems is beneficial, the adoption of ISO 14001 alone will not provide maximum company benefits. Companies must strive for an improvement in environmental performance and financial performance that can be accomplished only through significant changes in corporate culture, structure, and systems. By developing core capabilities such as skills and knowledge, physical technical systems, managerial systems, and values and norms, companies can develop organizational learning to increase sustainable competitive advantage. This article examines how the ISO 14000 series of standards can be used to improve organizational learning and environmental management.     

Impact of the FTSE4Good Index on firm price: an event study

This paper examines whether corporate financial performance is affected by public endorsement of environmental and social performance. Event study methodology, which relies on the notion of market efficiency, is used to examine the relationship between positive and negative announcements and changes in share prices or daily returns. Inclusion in and deletion from the FTSE4Good UK Index is used as a proxy measure for good (poor) corporate social responsibility. The abnormal or unexpected daily returns associated with an event are calculated and their significance tested. The results show a trend towards positive and negative announcements having the expected effects on daily returns. But these movements are not significant and the data do not suggest that a firm's presence on the index brings it any significant financial return for signalling its corporate social responsibility.     

Working toward standards,auditor qualifications at the environmental auditing roundtable

The Environmental Auditing Roundtable (EAR) is the original professional organization dedicated to furthering the development and professional practice of environmental, health, and safety auditing. It began in 1982 as literally a roundtable of managers who met to discuss what environmental auditing was and to share practices. The group has held quarterly meetings since that time and has undergone several major changes. In 1984 the organization significantly expanded its membership and established a formal program committee. Major steps were taken in 1987 through the adoption of the Code of Ethics and the first formal bylaws to allow the EAR to be an organization with individual members and election of a board of directors by the membership at large. A significant milestone toward becoming a professional society occurred in 1991 with the incorporation of the EAR as a not-for-profit organization with a two-fold purpose: to provide a forum for the exchange of technical, regulatory, and professional auditing information; and to further the development and professional practice of environmental, health, and safety (EH&S) auditing. Today, there are about three hundred members of the EAR—individuals from industry, academia, service organizations, law firms, and government—who have agreed to abide by the Code of Ethics and to advance the practice of EH&S auditing.     

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.     

Improving corporate environmental performance through economic value added

These days, corporate annual reports are full of references to shareholder wealth creation. In today's highly competitive capital markets, most chief executives understand that unless they are seen as value creators, investors will place their scarce capital somewhere else. Clear evidence of the growing importance, even dominance, of shareholder wealth creation is the growing use of a performance measure known as economic value added (EVA®).¹ Within ten years, it is almost certain that most large, publicly traded companies in the United States will be using EVA or something like it as a primary performance evaluation tool. Recently, many non-American companies have also adopted it to better align the incentives of managers with shareholders and to signal their commitment to value creation. EVA is not widely known or understood among environmental specialists, and those who have heard about it often fear it. We find this attitude unfortunate. In this article, we discuss EVA and how its use can aid corporate environmental managers in promoting more proactive environmental investments, and in funding capital investments on environmental improvement, waste reduction, and pollution control in their companies. The use of EVA and other shareholder value measures can also improve general capital investment decisions by integrating environmental factors that affect the long-term interests of the corporation into the managerial decision-making process.     

Case study: Sonoco's materials reclamation improves environmental performance through quality-based management

Multinational corporations are facing increasing pressures and finding stronger incentives to integrate environmental management into their overall business strategies. National and local environmental regulations are becoming more stringent in Europe, Japan, East and Southeast Asia, Latin America, and many developing countries, and international voluntary standards of environmental management are being endorsed by a growing number of governments. Multinational firms are embracing these standards not only to assure the public of their concern for environmental protection, but also to enhance their competitiveness in international markets. The British Standard 7750, the European Eco-Management and Audit Scheme (EMAS), and the ISO 14000 series are setting new guidelines for effective corporate environmental management. Beyond complying with local and national laws, corporations now have wider latitude in how they adapt their business practices to these emerging environmental management standards. In order to capitalize on that creative latitude, companies must have corporate cultures and internal management systems that allow them to respond quickly and effectively to changing environmental requirements. Exemplary corporate environmental performance is usually related to strong and progressive leadership, a culture that recognizes the importance of environmental protection, and the willingness to operate by quality-based management principles. This article describes how one international corporation, Sonoco, in responding successfully to changing environmental pressures to reclaim and recycle its products in the wake of the solid waste crisis in the United States and more stringent environmental regulations in Europe, used its management competencies and corporate culture to turn what could have been serious barriers to expansion of its core businesses into new opportunities. By adopting a bold materials reclamation program, Sonoco was able to overcome potential limitations on its operations in the United States and abroad and to develop new business segments that benefited the company and the environment.     

Practices of energy use management and sustainable performance in Brazilian mineral industries

Energy is an essential asset for the existence of industrial activities, however, the absence of energy use management may lead to numerous environmental, economic, and social impacts. Thus, industries, which are major consumers of energy, play an essential role in seeking to preserve the energy system. This study aimed at analyzing the practices of energy use management and their relation to sustainable performance in the industries within the Brazilian mineral sector. The practices of energy use management were measured using the model proposed by Liu et al. (2012, Journal of Cleaner Production, 26, 79–89). After that, evidence of sustainable performance was identified based on performance indicators developed by the Global Reporting Initiative (2006, 2010, 2014). The study is characterized as quantitative, and it was conducted through a survey of industries linked to the Brazilian Mining Association. Through our results, we verified that the practices related to energy use management existent in the companies that we studied are subjected to periodic verification of the impacts caused by company activities on the environment, and that attention to energy use provides an incentive to daily practices of energy saving. On the other hand, the practices of energy use management are still little disseminated among these companies, as is certification to the International Organisation for Standardization's (ISO) Energy Management Systems framework, ISO 50001. In general, through the analyses that we performed, we can verify the existence of positive associations between the factors related to the practices of energy use management and to corporate sustainable performance.     

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.     

“Lean and Green” at a Romanian secondary tissue paper and board mill—putting theory into practice

A three-year environmental project was implemented at the Petrocart S.A. paper and board mill, through the Danish Support Programme for Eastern Europe (DANCEE). The aim was to use “Lean and Green” Production to improve industrial compliance with the effluent regulations and with EUs IPPC Directive under implementation in Romania, thereby improving the environmental conditions in the Bistrita River running through the town. The results obtained included an 87% reduction of the discharge of wastewater from 5300 to about 700 m³/day. Previously, the effluent was subjected to primary treatment only. The reduction in flow reduced mill fibre losses and allowed discharge to an existing, underloaded, municipal treatment system, where primary and secondary treatment is operated. Further results obtained were better housekeeping (5S and Kaizen) and a Total Quality Management (TQM) organisation was implemented where product quality, environment and occupational health and safety are merged into one system. Twenty-eight TQM groups were formed, each with a representative from management and elected among workers. The mill's employment is slightly higher today, and the gross turnover and profitability has almost tripled. Had Petrocart had the financial resources themselves carried the project through without DANCEE support, the payback time for the project would have been 3.7 years for the total of €2 million spent. Petrocart no longer pays penalties for environmental non-compliance. The performance contributes to IPPC-approval. The project was implemented within the framework of DANCEE's procedures, which is based on the Logical Framework Approach (LFA) for project management. The PRojects IN Controlled Environments (PRINCE2™) model for project management was also applied. This article analyses how the results were achieved and how Lean and Green thinking as well as good project management practices, such as LFA and PRINCE2 were applied to turn around an old Eastern European company to survive privatization.