Why do firms engage in environmental management? An empirical study in China

There are increasing pressures being put on firms, from a number of different sources, such as governmental regulation, community participation and market demand, to engage firms in environmental initiatives. These factors play different roles at various development periods. Government regulation was the major pressure, initially. However, community participation and market demand have become more and more important. Thus a better understanding of the determinant factors that play a role in engaging firms to take environmental management initiatives may help policy makers develop more effective environmental policies. Using data collected from 89 firms in Wujin county of Jiangsu Province, China, this paper developed an index system to evaluate the corporate environmental management performance. Furthermore, we used econometric methodology to identify the main factors that probably shape corporate environmental management performance, including both external pressures and firm characteristics. The results showed that pressures from supply chain, customers, and communities played positive roles in engaging firms to improve environmental management performance. However, the pressure from the regulatory system did not implicate positive effect on environmental management performance when basic compliance is not an issue in the region anymore. The results also showed that firms with larger scale will be more active in engaging in environmental management initiatives. Finally, our results suggest that: (a) regulation's stimulation may be reduced as long as firms have complied with requirements of local environmental standards and other environmental laws; (b) policy makers should pay more attention to market and information instruments; (c) more financial and technical support should be provided to encourage small- and medium-sized enterprises (SMEs) to improve environmental performance.     

Negotiated environmental and occupational health and safety agreements in the United States: lessons for policy

The interest in so-called voluntary approaches to supplement or replace formal environmental, or occupational health and safety regulation has taken on new importance in both Europe and the United States. These approaches fall into two sharp divisions: (1) industry-initiated codes of good practice focusing on environmental management systems or performance goals, and (2) negotiated agreements between government and individual firms or industry sector trade associations focusing on regulation or compliance. This paper addresses the latter.In the United States, the motivations behind negotiated agreements are manifold and sometimes contradictory including desires (1) to facilitate the achievement of legislated or mandatory environmental goals by introducing flexibility and cost-effective compliance measures, (2) to negotiate levels of compliance (standards) fulfilling legislative mandates, (3) to negotiate legal definitions of Best Available Technology and other technology-based requirements, and (4) to weaken environmental initiatives. Efforts in furtherance of negotiated agreements have thus been greeted with mixed results by the various stakeholders. In the context of an anti-regulatory climate in the United States, the Administrative Procedures Act has been amended to allow “negotiated rulemaking” in achieving regulatory agency mandates. However, even before this legal innovation, regulatory agencies have been negotiating regulations. Independent of this legal avenue, negotiated compliance with industry associations is being fostered through the Environmental Protection Agency's (EPA's) “Commonsense Initiative” and with individual firms through “EPA's Project XL”, again with mixed reception.The proposed paper describes and analyses negotiated agreements in the United States in the context of (1) EPA efforts to ensure environmental protection and (2) the Occupational Safety and Health Administration efforts to ensure worker health and safety. These agreements can be described according to the following taxonomy: (a) Negotiated regulation (either preceding formal regulation or as a substitute for formal regulation); (b) Negotiated compliance (implementing regulation or informal agreements) (i) the means and timetable for coming into compliance with emission, effluent, or concentration requirements (ii) negotiation in the context of an enforcement action in which the firm is out of legal compliance (for example, encouraging cleaner production through the leveraging of penalty reductions).The criteria for evaluation include: environmental or health and safety outcomes, effects on stimulating technological change, time for development (time to completion)/implementation (likelihood of court challenge), stakeholder influence (ability of large firms to dominate outcome, environmentalists–industry, or labour–management balance of power),and administrative features.     

From the Whitehorse Mining Initiative Towards Sustainable Mining: lessons learned

Much debate has taken place within the mineral policy community about whether or not meaningful progress has been made towards more sustainable practices. This paper investigates the changing approaches towards sustainable development undertaken by the Mining Association of Canada (MAC) over a period of approximately 20 years. The analysis begins in the early 1990s when MAC initiated the Whitehorse Mining Initiative (WMI) and concludes in 2010 when the association was operating under a strategy entitled Towards Sustainable Mining (TSM). The goal is to consider the nature of the learning that has taken place towards sustainability within the mineral industry using the case of a leading national mining association. The investigation was undertaken through a literature review as well as key informant interviews with stakeholders affected by the Canadian Mining Industry. Findings suggest that MAC’s approach to sustainable development has shifted from an ambitious and holistic partnership involving a range of stakeholders to a focused, member-specific agenda that addresses a few performance issues. The transition to TSM was based on lessons learned through working with the WMI and subsequent efforts. It reflects broader corporate tendencies to address social and ecological issues through corporate social responsibility initiatives. The implications of these trends suggest that voluntary initiatives in and of themselves should not be expected to replace the comprehensive regulatory responsibilities historically provided by government.     

The measurement of corporate environmental performance and its application to the analysis of efficiency in oil industry

This paper addresses a measurement of corporate environmental performance, and its application to the analysis of efficiency in the petroleum firms. In order to measure firms' environmental performance, we suggest a framework called “Gscore” that consists of five categories, namely general environmental management (GEM), input, process, output, and outcome. Gscore is a proxy measure of corporate environmental performance based on voluntary environment, health, and safety (EHS) report and is calculated by aggregating the points of the above five-categories. We apply our measurement framework to the data of 39 firms' voluntary EHS reports which are available on the internet. Ten of them, on which efficiency analysis was conducted with Gscore, assets, employee, and profits, are in petroleum and refining industry. According to our results: (1) a gap is found between rhetoric and practical environmental management stemming from calculating the relation between GEM and data part in 39 EHS reports. (2) On the whole, EHS reports of petroleum firms have something in common, but there are significant differences in the type and amounts of disclosed data among the EHS reports. (3) From the results of efficiency analysis, it is found that the number of employee exerts a considerable influence on determining the relative efficiency of petroleum firms, then Gscore, profits, and assets in sequence. Furthermore, Exxon, Ashland, Phillips Petroleum, and ARCO are shown to be efficient among 10 petroleum firms.     

美国清洁空气战略规划

为维护和改善空气质量,2003年美国EPA制定了未来5年的清洁空气战略规划,包括室外空气、室内空气、大气改善、辐射防护以及科学研究5个组成部分.EPA的战略规划措施为:①强调与州、地方、部落之间的紧密合作,加大与非政府组织和专业团体间交流;②采取创新的方法制定出有关政策、规章和非规章性措施,包括绩效方法、激励与自愿计划、环境管理系统、提高环境工作者积极性措施等;③继续加大国际间协作,减少越境污染的发生.      

Does the GreenWatch program work? Evidence from a developed area in China

The GreenWatch program has been implemented nationally in China. However, whether the program and its process have been effective in improving firms' environmental performance remains unclear. Based on the stakeholder theory, this paper conducts a comparative analysis between firms participating in the program and those that do not, all of which are based in Changshu City in the developed part of Jiangsu Province, China. Data suggest that GreenWatch encourages firms to improve and disclose their environmental performance. Through pressures imposed by different stakeholders—from the government, investors, and consumers, to the public, such as the community and media—this program has become the main driving force for improving the firms' environmental performance. The current study also provides substantial evidence that public disclosure in China opens up channels for effective public participation. Therefore, the GreenWatch program deserves to be promoted in China.     

Local governments reduce costs through pollution prevention

The Pollution Prevention 1997: A National Progress Report identifies pollution prevention initiatives as potentially the most effective for reducing risks to human health and the environment, as well as the most cost-effective method of environmental protection. So it is no surprise that much of the implementation of pollution prevention by local governments has been driven due to the cost savings it provides. Pollution prevention initiatives have been proven to reduce costs, improve efficiency, reduce risk, reduce liability, and provide a safer work environment. However, as many local governments have experienced budget and resource reductions, their pollution prevention programs have been impacted. Local governments, working to continue pollution prevention initiatives in spite of declining budgets, have had to change their approaches, be creative, and innovate. Montgomery County, Maryland has implemented a number of pollution prevention strategies for its own County operations. The linkages established between cost savings they achieve and environmental benefits provided have been used to continue to expand the County's pollution prevention efforts. This paper provides an overview of the pollution prevention measures and approaches that have been implemented in Montgomery County for its internal operations.     

The role of environmental management system on introduction of new technologies in the metal and chemical/paper/plastics industries

Pollution prevention with the use of modern cleaner technologies in industrial sectors is the cornerstone of successful environmental policy certified according to the requirements of the international standard ISO 14001. The analyses were performed with the objective of assessing general aspects of technology modernisation as a result of the ISO 14001 certification in industrial enterprises in order to develop a better understanding whether the ISO 14001 certification can accelerate initiatives for the adoption of new and cleaner technologies within the certified firms on one hand, and, on the other hand, to find out to what extent it helped to upgrade their environmental performance. The research was performed within Slovene metal and chemical (including pharmaceuticals, paper and plastics) manufacturing companies with an additional emphasis on firms which are committed to implementing the IPPC directive. In general, certified enterprises consider ISO 14001 as a very useful tool in promoting and adopting new cleaner technologies. ISO 14001 seems to be particularly important to create better conditions for the technology changes in companies which are committed to the IPPC Directive. Companies in chemical and related industries, to a much higher extent, used predominantly modified technologies to diminish their environmental impacts, while companies in metal industries, to a higher extent, used a combination of existing and new technologies after ISO 14001 certification. It seems that better environmental performance is associated with higher productivity in ISO 14001 certified firms.     

When firms make sense of environmental agendas of society

The objective of this article is to present arguments for the need to obtain knowledge about how firms make sense of environmental agendas of society. Several empirical studies point out that highly formalized and rational management methods to manage environmental decisions are not appropriate in a firm's planning. Theoretical contributions within the field of organizational theory are critical to the rational actor approach that concentrates on firms as economic units, acting in rational ways in order to increase profit. Instead, recent organizational theories suggest using sociocultural theory in analyzing a firm's interpretation of societal agendas. Methods and results from an empirical, qualitative case study, based upon non-rationalistic theory, are presented and discussed. The theoretical discussion and the empirical results call for a need to broaden environmental thinking about how to motivate firms to act in an environmental manner.     

Trends in the small-scale mining of precious minerals in Ghana: a perspective on its environmental impact

Small-scale mining in Ghana is defined to include both the exploitation of mineral deposits (1) using fairly rudimentary implements and/or (2) at low levels of production with minimal capital investment. While the large-scale mining—of particularly gold—has become predominant, small-scale mining, which predates such operations, has continued to be an important economic activity, particularly within the remote and poorer areas of the country. The environmental impacts of such small operations have, however, varied, depending on methods and the scale of operation. The factors that have contributed to aggravating these environmental impacts are economic, technical, legal, and operational in nature. Although mitigation efforts have had a limited impact, it is expected that the measures now being considered for adoption will improve the efficacy of the Government of Ghana’s drive towards improving environmental management in resident small-scale precious metal mining operations.This paper examines the environmental impacts of small-scale mining in Ghana—with particular emphasis on precious minerals and metals extraction—and outlines a series of initiatives for improving environmental performance in the industry.     

Voluntary approaches in protection of forests in Austria

Voluntary contributions to biodiversity conservation efforts in private forests of Austria have a long tradition which dates back to the 19th century. The most important remnants of undisturbed forests of the Alps today owe their existence to these voluntary initiatives by forest owners. In this earlier period the protection of forest areas by decree or biodiversity conservation initiatives on public owned forests, did not play such a prominent role. But as well as national parks, Natura 2000 areas and other programmes based on protection by decree, significant new voluntary approaches have emerged recently. The Austrian Forest Reserves Programme started in 1995, as a specific approach to voluntary participation in biodiversity conservation by private landowners is discussed in detail. This programme is based on the concept of nature conservation by contracts under private law, agreed between the forest owners and the Republic of Austria. The main characteristics of the programme are presented and experiences gained during the establishment and the maintenance of the network are discussed. Other voluntary initiatives, such as an Austrian network of gene conservation forests, as well as an initiative of a forest owner’s association, are also presented and discussed.     

Environmental management accounting as a reflexive modernization strategy in cleaner production

Understanding the material purchase value of wastes and emissions and related processing costs is the essential contribution of an Environmental Management Accounting methodology proposed by a United Nations expert working group organised through the Division for Sustainable Development (UNDSD). Tracing costs and benefits according to this UNDSD methodology, considered as a “reflexive” modernization strategy in this article, sheds new light on cleaner production initiatives for corporate sustainability. Information on the first category of costs, waste and emission treatment, is generally the most accurate. Information on the second category, prevention and environmental management costs, is more difficult to determine because this category overlaps with, or is confused with, the first category of costs. Data for the two novel and innovative cost categories of the material purchase value of waste and emissions and related processing costs are even harder to obtain. Frequently, the costs are either hidden in overhead accounts or are not recorded because they are not required in conventional accounting systems. The outcome is that companies, even though they may profess otherwise, have very little knowledge about their full environmental costs, cost saving opportunities, or how best to achieve cleaner production initiatives to promote corporate sustainability. A more systematic application of the UNDSD EMA methodology would provide a better record of costs and act as a catalyst in promoting cleaner production processes. This application inevitably requires “reflexive institutions” including “reflexive corporations”, that is, corporations with the capacity to examine the side effects of their operations as modernization rebounds upon them.     

Pollution prevention in China’s electroplating industry

Pollution prevention holds great promise for China as a strategy for curbing environmental degradation in the face of rapid industrial growth. This potential is demonstrated in the electroplating sector in China, where some firms are pursuing pollution prevention aggressively with results that include increased profits and significant cutbacks in pollution. We conducted research in four Chinese cities to investigate pollution prevention in the electroplating industry. Our study finds that firms with successful pollution prevention programs shared three main characteristics. First, they took a proactive approach towards cutting pollution. Proactive firms in our research employed pollution prevention as an overall environmental management strategy for their companies, and they possessed leaders and managers who demonstrated a strong commitment to pollution reduction goals and activities. Firms with successful pollution prevention programs also employed comprehensive environmental management systems. These systems assigned managers and workers responsibilities for pollution prevention through the use of rules, training, monitoring, and penalties and rewards. Finally, firms that undertook extensive pollution prevention measures employed staff with relatively high levels of technical knowledge and ability. Our results suggest that the aggressive adoption of pollution prevention by Chinese firms can help China address the widespread problems of inefficiency and poor management in Chinese firms, and the rapid spread of industrial pollution in rural areas.     

Innovative policy practices to advance building energy efficiency and retrofitting: Approaches,impacts and challenges in ten C40 cities

This study examines ten programmes to advance energy efficiency and retrofitting of existing, private sector buildings in C40 cities in Asia-Pacific and USA. We set out to identify differing policy approaches, together with potential impacts and implementation challenges for each. Findings unearthed six policy models – both mandatory and voluntary – with unique impacts and challenges. We demonstrate that innovation occurs without new policy inventions and largely by necessity, as new features are added and generic models are adapted to local circumstances. Our sample demonstrated experimentation with benchmarking in the USA, comprehensive regulation in Asia, and voluntary approaches in Australia. Overall, environmental impacts are particularly slow to emerge and plagued with attribution challenges. We found limited evidence of benchmarking programme effectiveness in reducing energy consumption in the short-term, but some indication of mid-term outcomes. Driven by unique local circumstances, the cap-and-trade model stood out by fostering large, sustained and attributable GHG emission reductions and retrofitting. Market and social impacts are highly significant across all programmes, highlighting needs to consider non-environmental impacts in policy evaluation. We emphasise the complementary potential of voluntary and regulatory approaches to advancing energy efficiency and climate resilience. We also underscore the potential for reporting or benchmarking programmes to later transition to models mandating performance improvements, such as cap-and-trade.     

中国环境管理引进自愿手段的法律基础分析

自愿手段已日益成为环境管理的一项重要手段,其在发达国家的运用取得了良好的效果,中国突出的环境污染问题迫切要求引入自愿手段以弥补传统环境管理手段的不足.通过总结中国现有法律体系中有关自愿手段的规定,分析了中国环境管理引进自愿手段的法律基础,并在此基础上提出了构建自愿手段法律框架的若干建议.     

Exploring new ways of assessing the effect of regulation on environmental management

Studies indicate that while a variety of factors positively influence voluntary environmental management, regulatory pressures are among the most important. However, most research examines samples representing large manufacturers or single industries, essentially assuming a level of regulatory constraint. Using a sample of heterogeneous facilities, this study finds that facilities can be classified according to the level of regulatory constraint, and that group membership impacts the choice of environmental management strategy when assessed within a utility maximization framework. More extensively regulated facilities implement more individual environmental management practices, but participate in fewer formal voluntary environmental programs (VEPs), compared to other facilities.     

A strategic decision framework for green supply chain management

The number of organizations contemplating the integration of environmental practices into their strategic plans and daily operations is continuously increasing. Numerous initiatives have provided incentives for organizations to become more environmentally benign. Some of these regulation driven programs are mandatory, but increasingly numerous voluntary environmental programs are also introduced by organizations. Organizations view many of these environmental programs, which may include technological and organizational development projects, as possible alternatives for gaining or maintaining a competitive advantage. One environmental program area that continues to gain in importance is one that focuses on the external relationships among organizations. To help evaluate alternatives that will effect this relationship we present a strategic decision framework that will aid managerial decision-making. This decision framework is based on literature and practice in the area of environmentally conscious business practices. The focus of this paper will be on the components and elements of green supply chain management and how they serve as a foundation for the decision framework. We shall explore the applicability of a dynamic non-linear multiattribute decision model, defined as the analytical network process, for decision making within the green supply chain. Issues facing the modeling approach are also discussed.     

A case study of industrial symbiosis development using a middle-out approach

Industrial symbiosis (IS) emerged as a collective, multi-industrial approach to improve economic and environmental performance through the use of wastes/by-products as substitutes for raw materials. The development of IS initiatives depends on the context in which they occur, characterised in terms of social, economic, political, spatial and temporal embeddedness. As a consequence, the context can be influenced to become more supportive of IS through a continuous, interactive process, combining top-down governmental directives and bottom-up spontaneous business initiatives. A strategy to develop and enhance this process is explored in this paper and described by the authors as a middle-out approach.Policies and policy instruments introduced by governmental agencies provide objectives and incentives to businesses. The middle-out approach induces the development of a strategy to create positive feedback loops among agents (e.g. government, industries) that may guide their actions into setting the conditions to support IS emergence.This paper provides a case study that discusses a regional development of IS in Portugal that highlights critical factors for success in implementing IS, and shows that the middle-out approach can also be understood as an extension and combination of previous research on context factors and planned/spontaneous approaches to IS development.     

Voluntary agreements in environmental policy: an empirical evaluation for the Chilean case

In this paper the author assesses and discusses the Chilean approach on voluntary environmental agreements. Based on a survey-questionnaire performed in 322 facilities belonging to four industrial sectors, the author evaluated the effectiveness and (static) efficiency of five voluntary agreements (VAs). Using the propensity score method, the study found out that VAs had a significant effect in encouraging the implementation of environmental initiatives, although, most of them represent incremental rather than radical improvements. Moreover, whilst it confirms that VAs can suffer from regulatory capture, it also reveals that capture can coexist with significant environmental improvements in other areas. Regarding the static efficiency impact, it suggests that VAs succeeded in encouraging cost minimization in terms of operational and transaction costs. Furthermore, this research documented that participation in an industrial association is by far the most significant variable associated with voluntary agreements, and that regulatory threats and governmental funding are incentives of secondary importance. Finally, it concludes, by highlighting that the lack of public participation together with several institutional and political factors that subdue the ambitiousness of targets, are the most serious drawbacks, which should be addressed in order to avoid credibility issues of VAs, in the near future.