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.     

Demystifying the EMIS purchasing process and decisions: Look (and plan) before you leap

The proliferation of environmental, health, and safety regulations in recent years has increased the complexity and cost of regulatory compliance for companies. In response to the growing complexities of environmental management, many firms are turning to information systems for tracking, managing, and automating their environmental activities and information. An environmental management information system (EMIS), however, is not an end in itself. A successful EMIS supports and facilitates the integration of environmental management into business functions. Effective planning is essential for placing short-term information system development in the context of a long-range comprehensive environmental management strategy. This article presents specific pitfalls to avoid when purchasing environmental management software. Numerous companies have discovered that the true costs of EMIS implementation stem from the political and organizational costs of getting employees to use systems, particularly when they require alterations in existing work processes. The up-front purchase price often represents less than 50 percent of the total system implementation cost. Failure to adequately research and plan frequently results in costly training, high modification or user fees, incompatibilities with other applications, or vendor dependence. The article then discusses the range of options in the EMIS marketplace and offers many practical suggestions to approach and plan effective implementation of an EMIS.     

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.     

Strengthening business with a new vision at avery dennison

This article presents a case study regarding initiatives, apparent failures, and successes that the Avery Dennison Materials Group organization encountered over the last five years in creating and sustaining environmental awareness throughout its organization. This awareness encompasses considerations thought to position the organization to compete against the core elements proposed within the ISO 14001 environmental management system protocol. While Avery Dennison's Materials Group has undertaken many initiatives which strive to achieve business integration, this article focuses primarily on three environmental management systems believed to be the foundation for a manufacturing or service organization—a foundation built on sustainable compliance, incorporation of quality management concepts, and the fulfillment of environmental performance expectations driven by the community at large. Those three programs are (1) an Environmental Stewardship Policy with specific environmental operating principles, (2) Environmental Control Instructions (ECIs), which establish accountability for proper operation, and (3) an Environmental Management System Assessment similar to the Global Environmental Management Initiatives (GEMI) environmental self-assessment tool. These cornerstones provide a basis for the construction of a management program pyramid, the top of which results in a quality process for making effective business decisions by integrating core environmental operating principles.     

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.     

Getting started with environmental cost accounting

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

Making business integration work: A survival strategy for EHS managers

Realizing the benefits of environment, health, and safety (EHS) management systems requires more than just rewriting policies and procedures, EHS tasks and activities must be pushed out into all aspects of the organization. The success of this process necessitates an evolving role for EHS managers. For EHS managers, business integration involves the challenge of integrating environment, health, and safety awareness, responsibility, and action into multiple jobs and business processes, leveraging scarce resources to maximize value and minimize costs. Drawing on recent work in the fields of sociology and political science, this article presents conceptual tools for assisting EHS managers to plan and strategize the changing role of the EHS function. By assessing political opportunities, mobilizing structures, and framing processes, EHS managers can maximize the success of EHS programs, while adding value to companies' core operations.     

山东省空气质量监测“转让-经营”模式改革的思考与探索

山东省探索开展了空气质量监测"转让-经营"模式改革,在体制上科学划分监测事权,实行"谁考核、谁监测",省级环保部门负责17个设区城市环境质量的监督监测,污染源监督监测下放到市、县级环保部门;在机制上实行政府购买服务,对全省空气质量自动监测站实行"监测设备有偿转让,专业队伍运营维护,专业机构移动比对,环保部门质控考核,政府购买合格数据"的"转让-经营"模式。通过改革,监测数据质量和监测公信力得到进一步提高,有效避免了可能的行政干预,降低了监测成本,引导了环保服务业的发展,可以为其他省、市贯彻落实生态环境监测体制改革和地方监测事权上收工作提供一些参考。     

Environmental management information systems: New tools for measuring performance

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

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.     

Mining and social development: Refocusing community investment using multi-criteria decision analysis

This paper addresses the question: How can mining companies assess social investment projects so that projects create value for the company and communities in which they operate? Mining companies are still wrestling with the limits of their responsibility in relation to social development even though they accept the business case for community investment at a general level. Fully aware of the practical hazards involved in taking an active role in facilitating local development, companies increasingly avoid methods that are overly paternalistic or assume the functions of the national or local governments. Gaining senior management's commitment to long-term social projects, which are characterised by uncertainty and complexity, is made easier if projects are shown to benefit the site's strategic goals. Case study research on large global mining companies, including interviews with social investment decision makers, has assisted in developing a Social Investment Decision Analysis Tool (SIDAT), a decision model for evaluating social projects. Multi-criteria decision analysis techniques integrating business planning processes with social impact assessment have proved useful in assisting mining companies think beyond seeking reputational benefits, to how they can meet their business goals and contribute to sustainable development.     

Beyond pollution prevention: A vision for an integrated environmental business management strategy

In this article the authors assert that successful long-term pollution prevention will require changes in the culture and business practices of an organization such that the term “pollution prevention” eventually becomes obsolete. They envision firms evolving to a point where actions that today are referred to as pollution prevention will simply be part of standard business practices and thoroughly embedded in the firms' culture. Although pollution prevention projects and programs need to be highly visible at the outset to communicate throughout the organization and to demonstrate the benefits that can be gained, companies should adopt a long-term strategy aimed at making fundamental changes in the way they do business, rather than relying solely on piecemeal projects and special plans or programs. Such evolution of the firm will maximize the chances of meeting the dual challenges of business competitiveness and environmental stewardship. This article presents a vision for integrating environmental performance with business objectives and suggests practical steps to begin moving toward that vision.     

浅谈企业建设项目的环境成本管理

企业建设项目的运行应做到经济效益和环境效益的统一,所以企业在治理污染的同时,还要注重自身的环境成本管理。本文从成本管理的角度,介绍了环境成本管理的必要性和面临的困难,并陈述了作者对环境成本管理的内容的看法。     

Environmental cost accounting: The bottom line for environmental quality management

Recent years have seen the environment emerge as one of the most pressing issues facing American business. Eventually, environmental costs will affect the bottom line of every American company. A recent study in the National Law Journal estimates that cleanup of the nation's known hazardous wastes sites will cost $752 billion over thirty years under current environmental policies. Environmental legislation and regulations impose annual compliance costs estimated by the Environmental Protection Agency at more than $30 billion. In the near future, environmental expenses for cleanup, regulatory compliance, and management are anticipated to grow to between 2.5 and 3 percent of GNP. Corporations that wish to be competitive must successfully manage these costs while maintaining or improving their role as responsible corporate citizens. Implementing a comprehensive system for identifying and managing environmental costs requires a multidisciplinary team effort. Environmental costs impact product selection, design and pricing, capital budgeting, and future strategic direction. In order to make informed and meaningful managerial decisions on environmental programs, real cost data are vital. An environmental management systems (EMS) requires information to set goals and then monitor progress towards those goals over time. This article will discuss the current cost accounting systems (CASs) available to support the myriad goals of environmental management systems. In addition, the article will outline a framework for plotting the location of your current EMS on a matrix of regulatory and information requirements and evaluating whether your corporation's CAS is adequate to support the goals and objectives set by your environmental management program. By anticipating future regulatory and information requirements, flexible systems can be developed to adapt to new and more stringent regulations and more complex information requirements.     

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

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

Maintaining your EMS: The stages of EMS development

Registering to ISO 14001 doesn't mean you're forever green. If you want an environmental management system (EMS) to keep moving your organization forward to improved environmental and business performance, you need to maintain and refine it. The first step toward doing so is understanding the stages that each EMS goes through on its way to full business integration. © 2000 John Wiley & Sons, Inc.     

LAND AND WATER RESOURCES MANAGEMENT FOR ENVIRONMENTAL IMPROVEMENT1

Traditional conservation measures may not be, and usually are not, all that is needed to assure a quality environment. They are, however, fundamental. A national course of action involving land and water management is determined (1) at the market place, (2) at the ballot box, and (3) in the hearts and minds of individuals. To inform people about environmental management and conservation and appropriate uses of land, water and related resources is an exceedingly difficult problem. Research, action and educational programs dealing with environmental problems must have greater attention and support.     

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.     

An Evaluation of the Influence of Natural Science in Regional-Scale Restoration Projects

Regional-scale restoration is a tool of growing importance in environmental management, and the number, scope, and complexity of restoration programs is increasing. Although the importance of natural science to the success of such projects generally is recognized, the actual use of natural science in these programs rarely has been evaluated. We used techniques of program evaluation to examine the use of natural science in six American and three Western European regional-scale restoration programs. Our results suggest that ensuring the technical rigor and directed application of the science is important to program development and delivery. However, the influence of science may be constrained if strategies for its integration into the broader program are lacking. Consequently, the influence of natural science in restoration programs is greatest when formal mechanisms exist for incorporating science into programs, for example, via a framework for integration of science and policy. Our evaluation proposes a model that can be used to enhance the influence of natural science in regional-scale restoration programs in the United States and elsewhere.     

A COST‐BENEFIT ANALYSIS OF WATER QUALITY PROTECTION IN THE CATAWBA BASIN1

ABSTRACT: The primary objective of this study was to perform a cost‐benefit analysis of maintaining the current level of water quality in the Catawba River basin. Economic benefits were estimated using a stated preference survey method designed to value respondents' willingness to pay for a management plan to protect water quality in the Catawba basin over time. From the surveys conducted with 1,085 area residents, we calculated an annual mean willingness to pay of $139 for the management plan, or more than $75.4 million for all taxpayers in the area. Over the five‐year time horizon in which respondents were asked to pay for the management plan, this resulted in a total economic benefit of $340.1 million. The Watershed Analysis Risk Management Framework model was used to estimate the amount of management activities needed to protect the current level of water quality in the basin over time. Based on the model results, the total cost of the management plan was calculated to be $244.8 million over a ten‐year period. The resulting cost‐benefit analysis indicated that the potential benefits of this management plan would outweigh the costs by more than $95 million.