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.     

POEMS: A Case Study of an Italian Wine-Producing Firm

Over the last decade, researchers paid much attention to concepts such as Design for Environment, Extended Producer Responsibility, Responsible Chain Management, and Eco-design. Many management tools and standards (such as EMAS, ISO 14001, LCA, EPD, Ecolabel) have been developed to support companies in the evaluation and management of their environmental performance and to pursue continual environmental improvement. The more recent development of the aforesaid fields looks at interorganizational environmental management. Such an approach can complement the more traditional intraorganizational corporate environmental management approaches and tools. A typical example of this new trend is the Product Oriented Environmental Management System (POEMS), which represents the natural evolution of the above-mentioned tools, combining the features of EMS, EPD and Ecolabel. Although the structure of the POEMS is still not standardized, many experimental applications have yet been carried out in Europe. In developing a POEMS, a company needs to determine all of the environmental impacts caused at all life-cycle stages of the product and, ideally, to reduce all of them through a continual commitment. The aim of the present study was to perform a survey of the developed POEMS models and to analyze their peculiarities and drawbacks in the application to Small and Medium Enterprises. A case study regarding an Italian winery company is presented. The study analyzes the structure and the activities of the examined firm, in order to estimate direct and indirect environmental impacts following a life-cycle approach. The chosen functional unit is a 0.75-L bottle of red wine. The article also suggests some solutions to improve the environmental performances of the firm’s products.     

Public regulatory relief and the adoption of environmental management systems: a European survey

An increasing number of organizations across the world have adopted Environmental Management Systems (EMSs) based on certifiable standards, notably the European Eco-Management and Audit Scheme (EMAS) and the ISO 14001 standards. Although the specialized literature has studied the motivations, obstacles and benefits of the adoption of these standards for EMSs extensively, the impact of the public incentives on the adoption of such environmental management tools has been overlooked. In order to fill this gap in the literature, this article aims to shed light on the level of companies' knowledge and application of the main regulatory relief initiatives provided by public administrations around the EU for organizations with a certified EMS. For that purpose, this article summarizes the main findings of a survey carried out with the participation of 244 European EMAS-registered organizations. The findings of the survey highlight the fact that most of the surveyed companies have adopted or benefitted from some form of regulatory relief, mainly by making use of the measures granting an extended duration of some permits (44%), reductions in financial guarantees in the waste-treatment sector (31%) and tax reductions (26%). Moreover, it emerges that, among countries, the role of regulatory relief to support companies in the path to the adoption of EMSs is not univocal.     

3M international environmental management system

To meet the changing needs of 3M's expanding worldwide operations, its International Environmental Operations group is striving to enhance and integrate a global environmental management system. When well-designed, such systems not only can function to guarantee compliance with environmental regulations but also serve to help the company reap the benefits of going “beyond compliance.” They can also prepare facilities to meet the requirements of international standards, such as ISO 14000 or EMAS. An Environmental Management System (EMS) is a necessary step toward achieving sustainable development and gaining competitive advantage in the global marketplace. The challenge of constructing such a system can seem daunting to a multinational company confronted with the spectrum of regional environmental regulations/directives and its own diversity of business and social cultures. This article describes the development and implementation of the 3M International Environmental Operations global EMS initiative.     

Environmental management in the UK: The way ahead for business

Summary Increasingly stringent environmental lesislation and a growing consciousness of environmental issues within the community are spurring companies into adopting environmental improvement programmes. Enhanced environmental management not only ensures compliance with legislation but has other benefits, including reduced energy and waste disposal costs, improved public image, acess to green markets and lower insurance premiums. BS7750 and the Eco-Management and Audit Scheme now offer businesses the opportunity to establish a systematic and accredited environmental management system which will serve as a yardstick of environmental quality.     

Corporate Ethics in the Era of Globalization: The Promise and Peril of International Environmental Standards

The growing assumption thattransnational corporations (TNCs) will apply``best practice' and ``international standards'in their operations in developing countries hasseldom been checked against close observationof corporate behavior. In this article, Ipresent a case study, based on field research,of one voluntary initiative to useinternational standards and best practice forenvironmental protection in the AmazonRainforest, by a US-based oil company,Occidental Petroleum (Oxy) in Ecuador. The moststriking finding is that the company refuses todisclose the precise standards that apply toits operations. This, and the refusal todisclose other important environmentalinformation, make it impossible to verifyindependently Oxy's claims of environmentalexcellence, or assess the effectiveness of theinitiative. At the same time, Oxy uses theinvocation of international standards to wrapitself in a veneer of corporate responsibility;reassure government officials and localresidents; cultivate confusion about standardsand practices that apply to the operations;deflect meaningful oversight and transparency;and arbitrarily legitimize norms that have beendefined by special interests. In short,international standards offer great promise forneeded environmental improvements; but can alsobe used to impede, rather than advance,corporate responsibility and the development ofeffective environmental law at the nationallevel. These findings suggest that for theapplication of international standards to bemeaningful, the international community needsto move beyond statements of principle anddevelop mechanisms that can be used toevaluate, verify, and monitor independentlyenvironmental claims by TNCs.     

From eco-management and audit (EMAS) to sustainability management and audit (SMAS)

The local authority version of the Eco-Management and Audit Scheme (LA-EMAS) can already be used as a tool for managing towards sustainability. But it can also be used in a much less ambitious 'procedural' way. This article suggests how LA-EMAS could be developed more fully into a sustainability management tool embracing social issues, a concern over environmental carrying capacities, and stakeholder involvement. This raises questions which should be considered in the run-up to the review of the EMAS regulation in 1998.     

Quality metrics in design for environment

There is a growing commitment by manufacturers, both in the United States and abroad, to assure environmental responsibility for all of their operations. This trend is driven partly by market demands for “green” products and partly by changes in international standards and regulations. In response, leading companies are demonstrating that environmental improvement can actually increase profitability, and design for environment (DFE) is emerging as an important business practice. The ability to evaluate environmental quality in objective, measurable terms is a key component of an effective DFE capability. In particular, environmental quality metrics are essential to support goal setting, monitoring, and continuous improvement in the design of products and processes. This article describes environmental quality measurement tools and procedures, particularly as they relate to DFE. One of the challenges of performance measurement is to incorporate a life-cycle view of environmental performance into measurement tools that can be easily computed and tracked.     

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.     

Challenges of meeting ISO 14000 auditing guidelines: Audit program gaps

At long last, the ISO 14000 environmental auditing guidelines have been issued in final form and have been accepted in the United States and elsewhere as official national standards. The auditing guidelines consist of: Guidelines for environmental auditing—General principles (ISO 14010: 1996(E)) Guidelines for environmental auditing—Audit procedures—Auditing of environmental management systems (ISO 14011: 1996(E)) Guidelines for environmental auditing—Qualification criteria for environmental auditors (ISO 14012: 1996(E)) Unlike the environmental management system (EMS) standard (ISO 14001), the auditing guidelines are just that, guidelines. The ISO 14000 auditing guidelines are not long documents: ISO 14010 is three pages, ISO 14011 is five pages and ISO 14012 is three pages.     

Defining Indicators and Standards for Tourism Impacts in Protected Areas: Cape Range National Park,Australia

Visitors’ perceptions of impacts and acceptable standards for environmental conditions can provide essential information for the sustainable management of tourist destinations, especially protected areas. To this end, visitor surveys were administered during the peak visitor season in Cape Range National Park, on the northwest coast of Western Australia and adjacent to the iconic Ningaloo Reef. The central focus was visitors’ perceptions regarding environmental conditions and standards for potential indicators. Conditions considered of greatest importance in determining visitors’ quality of experience included litter, inadequate disposal of human waste, presence of wildlife, levels of noise, and access to beach and ocean. Standards were determined, based on visitors’ perceptions, for a range of site-specific and non-site-specific indicators, with standards for facilities (e.g., acceptable number of parking bays, signs) and for negative environmental impacts (e.g., levels of littering, erosion) sought. The proposed standards varied significantly between sites for the facilities indicators; however, there was no significant difference between sites for environmental impacts. For the facilities, the standards proposed by visitors were closely related to the existing situation, suggesting that they were satisfied with the status quo. These results are considered in the context of current research interest in the efficacy of visitor-derived standards as a basis for protected area management.     

Environmental management policy in a coastal tourism municipality: the case study of Cervia (Italy)

The sustainability concept applied to human activities implies the need to harmonise the protection of environment with a satisfactory economic and social development. This is particularly true for tourism development: a misuse of the natural resources can cause a degradation of the tourist appeal of the destination, bringing it finally to its economic decline. This problem is particularly important in coastal tourism destinations. The implementation of an environmental management system is a powerful way for progressing towards better environmental performances. In this paper, the main results obtained in applying the Eco-Management and Audit Scheme procedure to the municipality of Cervia, a well-known tourist destination located on the Adriatic coast of Italy are described. This research puts into evidence that the main environmental pressures in the summer season are related to the supply of potable water, the production of solid wastes and wastewater air pollution and noise, etc. However, if correctly planned and managed, tourism can also contribute to environmental protection, to the conservation of biodiversity and to a sustainable use of natural resources.     

Environmental performance indicators: Balancing compliance with business economics

Many companies are examining ways to integrate environmental performance into the management and operation of their core businesses. Basic principles from the application of TQM in manufacturing will help bring environmental management into the mainstream of business operations. Likely results include improved and sustained compliance and improved long-term financial performance. The author addresses a critical first step, which is developing a common language and system for measuring environmental performance and setting goals for continuous improvement.     

An optimization model for product returns using genetic algorithms and artificial immune system

Current environmental issues emerging in the world are reflected in the environmental legislation of several countries. Because environmental issues are important, industries actively seek ways in which to reduce their environmental footprint. One effective method is through the use of reverse logistics. Reverse logistics is the concept of reusing used products in order to reduce wastes and to increase an industry's environmental performance and resulting profits. Stock selection, transportation, centralized collection, data collection, refurbishing, and remanufacturing are some of the more commonly utilized reverse logistic operations. An effective reverse logistics network is essential for increasing the flow of goods from customers to producers. The objective of this paper is to develop a multi-echelon reverse logistics network for product returns to minimize the total reverse logistics cost, which consists of renting, inventory carrying, material handling, setup, and shipping costs. Industries need to give more attention to the task of collecting used products from customers and establishing collection facilities. In this study, a mixed integer non-linear programming (MINLP) model is developed to find out the number and location of initial collection points and centralized return centers required for an effective return and collection system, and also the maximum holding time (collection frequency) for aggregation of small volumes of returned products into large shipments. Two solution approaches, namely genetic algorithm and artificial immune system, are implemented and compared. The usefulness of the proposed model and algorithm are demonstrated via an illustrative example.     

Registrars,Accreditation, and ISO 14001

The International Standardization Organization (ISO) will be publishing the first international environmental management system standard: ISO 14001. The ultimate impact of this standard is subject to heated debate throughout the industrial and environmental communities. This article focuses on one aspect of the standard: the process of certification/registration. ISO 14001 is a voluntary initiative. Companies will need to decide for themselves whether or not to pursue certification. As indicated in Section 1 of ISO 14001, ?This International Standard is applicable to any organization that wishes to

• a) implement, maintain and improve an environmental management system;
• b) assure itself of its conformance with its stated environmental policy;
• c) demonstrate such conformance to others;
• d) seek certification/registration of its environmental management system by an external organization;
• e) make a self determination and declaration of conformance with the standard.”?

As the introduction to ISO 14001 makes clear, ?the specification contains only those requirements that may be objectively audited for certification/registration and/or self declaration purposes.”? Any additional ?guidance…will be contained in other international standards.”? To avoid confusion, these other international standards tend to be called ?guidelines”?. Of particular interest to those associated with the certification and registration of systems to ISO 14001 are the three guidelines for environmental auditing. Officially these are referred to as:

• ISO 14010 - Guidelines for Environmental Auditing - General Principles,
• ISO 14011 - Guidelines for Environmental Auditing - Audit Procedures - Auditing of Environmental Management Systems, and
• ISO 14012 - Guidelines for Environmental Auditing - Qualification Criteria for Environmental Auditors.

     

Eco-labelling: success or failure?

Eco-labelling was identified in Agenda 21 as a way of encouraging consumers to alter their consumption patterns and to make wiser use of resources and energy in the drive for sustainable development into the next century. A European-wide eco-labelling scheme was introduced by the European Commission (EC) in 1992 as part of its fifth and most recent Environmental Action Plan, the focus of which is also sustainability. The EC eco-labelling scheme aims to promote products with reduced environmental impacts throughout their life cycle and to provide consumers with better information about the environmental impact of products. This paper assesses whether eco-labelling is an effective means of improving the environment, using the eco-labelling of paper products as a case study. Paper products are examined because the development of their ecolabelling criteria has been a particularly complex and contentious issue. Moreover, although criteria have now been adopted for three groups of paper products, controversy has dominated the criteria-setting process and debate continues about the relevance of the selected criteria. It is concluded that while the concept of eco-labelling is good, the practical application of the concept is not straightforward. Furthermore, at present, there is little evidence of eco-labelling benefitting the environment.     

Recycling in the USA : Vision and reality

In 1978 the US Environmental Protection Agency contracted Mathtech Incorporated to identify the impediments to recycling and evaluate their economic effects. The facilities studied represented a cross-section of recycling technologies, ownership types, geographical locations, and recovered products. It was discovered that none of the facilities was economical in the sense of providing the least-cost mode of disposal for municipal solid waste, and all of them suffered net losses in recent operations. Indications were that financial performance would improve slightly. A major deterrent to economical operations was the availability of lower-cost disposal by landfill.     

Effective EU and Member State policies for stimulating CCS

Although CO₂ capture and storage (CCS) is widely recognised as an option to mitigate climate change, consistent and effective EU policies to advance CCS are still absent. This paper discusses policy instruments for advancing large-scale deployment of CCS in the European Union, and evaluates them in a multi-criteria analysis. The EU Emissions Trading Scheme (EU-ETS) is a cost-effective instrument for limiting greenhouse gas emissions, but it is questionable whether its currently limited time horizon and short-trading periods will lead to substantial CCS diffusion. Complementary policies at the EU and the Member State level may repair this and provide sufficient incentives for CCS. Potential policies include financial instruments such as investment subsidies, a feed-in scheme, or a CO₂ price guarantee, as well as a CCS mandate or a low-carbon portfolio. These policy options differ with respect to their environmental effectiveness, possible interaction with the EU-ETS, costs and financial risk involved, and their competition with other mitigation options. Interactions between Member State policies and the EU-ETS are smaller in scope than those of EU-wide policies, but they are more likely to lead to displacement of financial resources from other low-carbon technologies. In addition, national policies may pose a significant part of the financial risk of CCS operations with Member States, reducing the operator's incentive to innovate. Overall, structural policies at the EU level, such as a mandate or a low-carbon portfolio standard would be more conducive for realising large-scale deployment of CCS across the EU as well as more acceptable to environmental organisations.