Environmental Management

Environmental Management Systems (EMS)
Level 5

Environmental Management

Unit 1
Overview of Environmental Management Systems

Environmental management is aimed at reducing the impact of human activity to such a level that environmental harm and nuisance is minimised and that legal liability is also minimised. It is probably best considered as taking environmental factors into account in all management decisions, from product design to ultimate waste disposal, through and including product life cycle.

All companies have an impact upon the environment, regardless of industry type and company size. Increasingly more stringent environmental legislation and customer pressure on companies to improve their environmental performance is a common theme of today's current economic climate, and one that is set to enlarge in the future.

Many companies still consider that implementing an EMS is a costly and very time consuming process. Effective planning and allocation of resources, however, should ensure that an efficient system is established and that the benefits outweigh any associated costs. Furthermore, due to the fact that environmental management involves the management of losses, it plays an important financial role.

The Main Forces Influencing The Adoption Of An EMS Can Be Summarised As:

Pressure from customers who are themselves pursuing environmental improvements
Genuine concern for environmental welfare both locally and globally
Meeting current and anticipated legislative requirements

Despite the pressures, the benefits that can be gained from implementing an EMS are many and varied. The table below shows the range of financial and business benefits that can be achieved by companies through environmental management.

Potential Benefits of Environmental Management
Production	Improved process control. Environmental monitoring can highlight inefficiencies in production; better control of processes will conserve resources and contribute to profitability.
	Identify opportunities to reduce raw materials and energy consumption and waste. Reducing wastes and waste disposal costs, saving water, reducing energy requirements all help to protect the baseline, keeping the costs of production down.
	Identify opportunities to reduce waste. There may be opportunities to sell by-products to realise a profit, avoiding the costs of disposal and adding efficiency to production.
	Increased yield
Financial	Reduced costs from increased efficiency
	Reduced risk of fines for non-compliance with environmental legislation.
	Lower insurance premiums. Insurance companies look more favourably on businesses that manage environmental hazards effectively. Companies with poor environmental histories, and those that cannot demonstrate their ability to manage environmental risks, will find insurance policies increasingly expensive.
	Easier to attract shareholders and investors. When making investment decisions individuals and institutions are increasingly aware of environmental risks and new environmental investment opportunities.
	Retain site asset value. Environmental audits prior to mergers and acquisitions are becoming standard practice. Audits are increasingly likely where the purchase of potentially contaminated land is involved. If a company has contaminated land it becomes a liability rather than an asset because the costs of clean up will outweigh the value of the land.
Marketing	Improved products. Consumers have illustrated that they are keen to purchase "environment friendly" products and services if the price and quality are right. Companies that can demonstrate a continuing high standard of environmental performance relating to both the use of products and their manufacturing processes can gain market advantage.
Marketing	Competitive advantage. A reputation for responsible behaviour and safe products can safeguard a company's position in the market place.
Management	Structured approach to environmental pressures
	Keep abreast of new/amended environmental legislation
	Better relations with regulators
Public Relations	Improved public image. Adverse publicity from environmental incidents can damage a company's reputation and put off potential investors, and existing and potential customers.
Public Relations	Improved relations with local community and environmental groups
Personnel & Training	Improved working environment
	Reduced potential for environmental incidents on site
	Increased employee motivation and environmental awareness
Compliance	Compliance with environmental legislation is a minimum requirement for all companies. Non compliance can result in large fines or even imprisonment for individual members of staff.

Actual benefits experienced by many companies are listed on the following helpful web page - www.trst.com/iso1-frame.htm.