Business-oriented environmental performance metrics: Building consensus for environmental management systems

Today, environmental managers are learning new ways of adding value to their organizations. Before, the environmental department was an overhead expense—an indirect support group required for complying with burdensome regulations. Now, such departments add insights and value during strategic planning sessions, identify efficiency improvement opportunities, provide a superior return on investment, and—bottom line—improve profits. The primary approach to meeting the challenge is a new environmental management system (EMS) that identifies, measures, and manages a diverse set of internal and external customer needs. These needs include environmental cleanups, regulatory compliance, pollution prevention, and design for the environment—and each represents a potential improvement opportunity. Unfortunately, most organizations have so many such needs that all cannot be addressed at once, given the resource constraints of a competitive business climate. Thus, priority is a key concept of an effective EMS. This article describes an innovative application of consensus-building tools that quickly identify and set priorities for diverse environmental programs. The article also shows how appropriate performance measures will align these programs with corporate goals and objectives.     

Use of embodied energy and ecological footprinting to assess the global environmental impact of consumption in an Irish city-region

The objective of this paper is to compare the carbon emissions produced as a result of product consumption by the residents of an Irish city-region, that is Limerick City and its environs. The resulting carbon footprints are used to compare imports of food items, manufactured products and construction materials with domestic production as well as changes between 1996 and 2002. The total ecological footprints (EF) associated with product consumption are also calculated by aggregating the theoretical land required to sequester carbon emissions and the terrestrial land area appropriated for agricultural production and industrial activity. It is suggested that this approach be used to allocate producer or consumer responsibility for environmental impacts from trade.     

Application of life-cycle assessment to type III environmental declarations

The objective of this research is to develop a desirable type III environmental declaration format for the industrial consumer. A total of five different scenarios were chosen for the presentation of life-cycle assessment results in a format that meets the requirements of a type III environmental declaration. Life-cycle assessment of an electronic component was performed for this purpose. Environmentally significant impact categories and input/output items of a product system derived from the life-cycle assessment are presented in this format. Presenting these information concisely in a standardized format would accelerate the communication of environmental aspects of materials and components in a product supply chain. Thus the type III environmental declaration can be a useful instrument for the manufacturing of an ecoproduct.     

The release of nanosilver from consumer products used in the home

Nanosilver has become one of the most widely used nanomaterials in consumer products because of its antimicrobial properties. Public concern over the potential adverse effects of nanosilver's environmental release has prompted discussion of federal regulation. In this paper, we assess several classes of consumer products for their silver content and potential to release nanosilver into water, air, or soil. Silver was quantified in a shirt, a medical mask and cloth, toothpaste, shampoo, detergent, a towel, a toy teddy bear, and two humidifiers. Silver concentrations ranged from 1.4 to 270,000 microg Ag g product(-1). Products were washed in 500 mL of tap water to assess the potential release of silver into aqueous environmental matrices (wastewater, surface water, saliva, etc.). Silver was released in quantities up to 45 microg Ag g product(-1), and size fractions were both larger and smaller than 100 nm. Scanning electron microscopy confirmed the presence of nanoparticle silver in most products as well as in the wash water samples. Four products were subjected to a toxicity characterization leaching procedure to assess the release of silver in a landfill. The medical cloth released an amount of silver comparable to the toxicity characterization limit. This paper presents methodologies that can be used to quantify and characterize silver and other nanomaterials in consumer products. The quantities of silver in consumer products can in turn be used to estimate real-world human and environmental exposure levels.     

Selling green: What managers and marketers need to know about consumer environmental attitudes

Research clearly shows that the environment is not going to go away as an issue of public concern. In fact, for many people, the environment is no longer simply an issue—it is a way of life. This is not likely to change. What has changed, however, is today's consumer. Today we are faced with a different type of consumer: one who is more knowledgeable on environmental issues—and more demanding. Environmental messages can be effective in reaching these potential buyers—but only if corporate managers and marketers understand public concerns and learn how to craft their environmental marketing strategies. © 1999 Integrated Marketing Services (IMS) and Environmental Research Associates, a division of IMS, Princeton, New Jersey. Reprinted with permission.     

Uncertainty modelling in multi-criteria analysis of water safety measures

Water utilities must assess risks and make decisions on safety measures in order to obtain a safe and sustainable drinking water supply. The World Health Organization emphasises preparation of water safety plans, in which risk ranking by means of risk matrices with discretised probability and consequence scales is commonly used. Risk ranking enables prioritisation of risks, but there is currently no common and structured way of performing uncertainty analysis and using risk ranking for evaluating and comparing water safety measures. To enable a proper prioritisation of safety measures and an efficient use of available resources for risk reduction, two alternative models linking risk ranking and multi-criteria decision analysis (MCDA) are presented and evaluated. The two models specifically enable uncertainty modelling in MCDA, and they differ in terms of how uncertainties in risk levels are considered. The need of formal handling of risk and uncertainty in MCDA is emphasised in the literature, and the suggested models provide innovations that are not dependent on the application domain. In the case study application presented here, possible safety measures are evaluated based on the benefit of estimated risk reduction, the cost of implementation and the probability of not achieving an acceptable risk level. Additional criteria such as environmental impact and consumer trust may also be included when applying the models. The case study shows how safety measures can be ranked based on preference scores or cost-effectiveness and how measures not reducing the risk enough can be identified and disqualified. Furthermore, the probability of each safety measure being ranked highest can be calculated. The two models provide a stepwise procedure for prioritising safety measures and enable a formalised handling of uncertainties in input data and results.     

A hierarchic metric approach for integration of green issues in manufacturing: a paper recycling application

This paper presents a hierarchic framework for environmentally conscious design. The framework integrates both product designers and stakeholders to evaluate not only the product features but also its environmental burden. In evaluating the product's burden, a life cycle assessment of the product is conducted through input-output analysis so that a comprehensive inventory of the product's actions and reactions to the environment could be documented. The analytic hierarchy procedure (AHP) is used to develop priority indices for customer requirements to highlight key features that must be present in the product. Subsequently, the quality function deployment is used to match design requirements to customer requirements. A cost-effective design plan is then finally developed. This framework adopts a systemic approach and ensures that environmentally conscious products are designed and manufactured.     

Achieving environmental excellence through TQEM strategic alliances

Generally speaking, today's TQEM initiatives do not improve a firm's activities beyond the shipping dock and onto consumer and postconsumer use and reuse. Although internal TQEM efforts do improve environmental impacts of a firm's operations, most firms remain focused on the traditional bottom-line objective of increasing throughput. For these reasons, most firms implementing TQEM miss the many opportunities to improve environmental performance (including cost and quality) through asset recovery, resource sharing, and reuse. However, by taking the advantages of teamwork beyond corporate boundaries, firms can close the loop on environmental improvements. Inter-firm teaming for environmental advantage, which we define as TQEM alliancing, initiates a cyclical approach to environmental performance improvement. It does so by forging strategic relationships among firms that can leverage each other's environmental weaknesses. TQEM allying is a round-robin game plan. In this article, the authors show how it allows firms to take their environmental improvement initiatives beyond regulatory compliance (and into proactivity), beyond pollution control (to total pollution avoidance), and beyond profitability (for a quantitative as well as qualitative bottom line), because firms will be integrating external as well as internal functions across different business domains.     

Applying tqm to environmental site assessments under the astm standard

Total Quality Management was initially developed to facilitate an ethos of continuous improvement of the production process. It entails both an internal and external focus. The former depends on a cooperative effort among employees at all levels of the organization to analyze work processes, minimize process variance, and thereby maximize productivity. The latter requires close collaboration with suppliers to ensure that raw or processed materials can be readily and efficiently integrated into the production process and constant communication with the end user—the customer—to ensure that the process generates the expected level of quality. Applying TQM to service industry processes is a bit more complex. In addition to having to tailor the TQM approach to the specific service industry, the processes are seldom identical and tend not to lend themselves to the same type of statistical variance analysis that is considered a hallmark of TQM. Nevertheless, numerous case studies have shown that TQM is applicable to the service industry and can help to generate a culture of continuous improvement and enhance customer satisfaction. Environmental site assessments provide a unique challenge to proponents of TQM. Construction, geological, and hydrological characteristics are unique at each site; regulatory requirements differ by jurisdiction; access to historical information is inconsistent; auditors have varying backgrounds; and client needs and expectations differ. Nevertheless, as the American Society for Testing and Materials (ASTM) standard practice gains acceptance as a benchmark for environmental site assessments, the application of TQM practices to this service process becomes more practicable.     

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.     

绿色消费的社会治理体系研究

绿色消费,伴随可持续发展战略的产生而逐步体现在居民日常生活中。消费什么主要由消费者自行决定,政府难以强求;是否消费绿色产品,受到收入、受教育程度、追求品质的动机等要素影响,购买消费品时还受认知过程、情绪过程、意志过程制约。绿色消费不仅要满足人体健康和社会需求,还要体现资源节约和环境保护基本国策要求,以实现消费品生产、流通、消费以及包装物回收利用全生命周期的环境影响最小化。政府可以通过政策激励、宣传教育、率先垂范等途径引导公众更多的消费绿色产品。     

Modeling Protected Species Habitat and Assigning Risk to Inform Regulatory Decisions

In the United States, environmental regulatory agencies are required to use “best available” scientific information when making decisions on a variety of issues. However, agencies are often hindered by coarse or incomplete data, particularly as it pertains to threatened and endangered species protection. Stakeholders often agree that more resolute and integrated processes for decision-making are desirable. We demonstrate a process that uses species occurrence data for a federally endangered insect (Karner blue butterfly), a readily available habitat modeling tool, and spatially explicit information about an important Michigan commodity (tart cherries). This case study has characteristics of many protected species regulatory decisions in that species occurrence data were sparse and unequally distributed; regulatory decisions (on pesticide use) were required with potentially significant impacts on a viable agricultural industry; and stakeholder relations were diverse, misinformed, and, in some situations, unjustly contentious. Results from our process include a large-scale, empirically derived habitat suitability map for the focal species and a risk ranking of tart cherry orchards with risk based on the likelihood that pesticide applications will influence the focal protected species. Although the majority (77%) of pesticide-influence zones overlapped Karner blue butterfly habitat, risk scores associated with each orchard were low. Through our process we demonstrated that spatially explicit models can help stakeholders visualize and quantify potential protected species effects. In addition, model outputs can serve to guide field activities (e.g., species surveys and implementation of pesticide buffer zones) that help minimize future effects.     

Measuring environmental success

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

Integrating product quality and environmental performance through innovation—the l'oréal case

Meeting the demands of today's marketplace has become an increasingly complex challenge for corporations in all industries. The consumer is demanding high-quality products, low cost, and more recently, a new variable: environmental performance. Customers will not accept sacrifices in quality or cost to help businesses meet regulatory requirements or develop environmentally sound products. They want it all. Consequently, companies are faced with the complex task of balancing cost, quality, and environmental performance.     

Implementing an environmental business strategy: A step-by-step guide

With more and more organizations seeking opportunities to generate benefits beyond compliance from environmental management activities, the challenges for environmental directors today is to develop and implement an environmental strategy that links environmental performance with the overarching strategic business goals of the organization. Organizations today are looking for opportunities to develop environmental management solutions that not only address the concerns of regulatory stakeholders, but also provide opportunities to improve operating efficiency and financial performance, enhance customer satisfaction, sustain market growth, and enhance goodwill, to satisfy the demands of a broader set of stakeholder groups including customers, investors, and employees. To achieve broader benefits from environmental management investments, this article shows how organizations must first develop a methodology for aligning their environmental management activities with the organization's strategic business goals and create a plan for systematically managing continuous improvement to achieve these goals. The second challenge is to implement this strategy at the business unit and facility level in a manner which integrates environmental management activities with an organization's core business processes to achieve improved product and service performance.     

Niagara region farmers' markets: local food systems and sustainability considerations

This article presents the findings of a survey of farmers' markets customers in the Niagara region of Ontario, Canada. The recent growth of farmers' markets in North America and the association of these markets with local food systems development provoke examination to gain insights into consumer motivations for patronizing these markets, and to then reflect on their potential role within locally oriented and sustainable food production systems. The survey carried out on customers of three Niagara region farmers' markets corroborates previous studies that noted that socioeconomic and cultural factors such as the importance of food freshness, support of local farmers and the local farm economy, and social interaction—embeddedness—are key expressions of people's support and interest in farmers' markets. This work serves to heighten our understanding of consumer attitudes toward direct marketing via farmers' markets, yields useful speculation about these markets and their roles in sustainable local food systems progress, and also raises critical questions about such customer patronage and associated farmers' markets potential in local food system development.     

Industry's role in air quality improvement: Environmental management opportunities for the 21st century

More than 200 years ago, Adam Smith, the founder of modern economics, wrote in the Wealth of Nations that “…consumption is the sole end and purpose of all production; and the interest of the producer ought to be attention to…that of the consumer.” In recent years, the rapid growth of the world economy has given Adam Smith's maxim new meaning. The age-old desire for consumption grows unabated and increasing numbers of consumers around the world are attaching new value to the environmental quality of goods and services and expressing concern over the environmental impacts of industrialization. That concern is growing because more than 70 percent of the world's urban population live in areas where the air is seriously polluted and as many as 750,000 people—the majority in developing countries—die each year of ailments caused by air pollution.¹ Over the past 25 years, corporations throughout the world have made dramatic changes in the way they do business as more people come to understand how the ecological system works and how polluted air and water endanger human health. The key to increasing industry's participation in the drive for higher standards of air quality is the growing realization that effective environmental management, technological development, and technology dissemination are cost-effective and profitable business strategies. Global competition is making firms around the world more customer-conscious and, to the extent that consumers demand products that minimize environmental degradation and enhance the quality of their lives, businesses in every industry must respond in order to survive.² This article examines how changes in business practices, driven by a better understanding of how natural environments function, are converging to provide new opportunities for environmental management that go beyond regulatory compliance to reduce air pollution. Although sound and well-enforced environmental regulations are an essential foundation for improving air quality, command-and-control systems alone are unlikely to achieve the lower levels of pollution that will be necessary to achieve sustainable development in the 21st century. In cooperation with government, businesses in every industry can play crucial roles in achieving higher standards of air quality while at the same time maintaining acceptable levels of economic growth. We explore three ways in which corporations can contribute to environmentally sustainable development: (1) by adopting proactive environmental management systems that focus on air pollution prevention; (2) by developing new technologies for air pollution control and reduction; and (3) by transferring air pollution control and prevention technologies through international trade and investment.     

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.     

Beta estimates of shares on the JSE Top 40 in the context of reference-day risk

A topic of interest in the finance world is measuring systematic risk. Accurately measuring the systematic risk component—or Beta—of an asset or portfolio is important in many financial applications. In this work, we consider the efficiency of a range of Beta estimation methods commonly used in practice from a reference-day risk perspective. We show that, when using the industry standard data sample of 5 years of monthly returns, the choice of reference-day used to calculate underlying returns has a significant impact on all of the Beta estimation methods considered. Driven by this finding, we propose and test an alternative nonparametric bootstrap approach for calculating Beta estimates which is unaffected by reference-day risk. Our primary goal is to determine a point-estimate of Beta, independent of reference-day.