Creating an Environmental Management System (EMS)


Nov 9, 2013 (7 years and 10 months ago)


SME Toolkit

Creating an Environmental Management
System (EMS)


Provided by the
International Finance Corporation

Chapter 1: Introduction

Defining an EMS

Business Benefits of an EMS

Implementing an EMS


Chapter 2: Success Stories:
Businesses Profiting from EMS

Chapter 3: Creating an EMS (Overview)

Chapter 4: Planning an EMS

Selecting an Environmental Task Group

Establishing Objectives and Targets

Considerations in Setting Objectives and Targets

Tip Sheet: Determining Environmental Impacts

Tip Sheet: Walk
through Considerations

itizing Projects

Table on Degree of Impact and Period of Occurrence

Table on Significance of Impacts

Creating an Action Plan and an Action Team

Creating an Action Plan

Action Plan Model (sample)

Tip Sheet: Techniques for Addressing Environmental Problems

ip Sheet: Questions for Screening and Searching for Applications

Tip Sheet: Ways to Reduce Waste

Creating a Prevention and Emergency Plan

Suggestions for Developing Prevention and Emergency Plans

Tip Sheet: Ways to Prevent Spills and Leaks

Chapter 5: Implementing the Action Plan

Training Staff

Selecting Staff for Training

Considerations in Assessing Employee Training Needs

Selecting Training Program
s and Methods

Scheduling Training

Suggestions for Training

Tip Sheet: Insights into Adult Learning

Communicating EMS Information

Selecting Internal and External Target Audiences

Selecting Information to Share

Suggestions for Communication

Communication Pro
cedures and Standards

Ways to Communicate with Staff, the Community and the Government

Maintaining the Flow of Information

Setting a Budget

Cost Options with Immediate Payback

Tip Sheet: Writing the Financial Plan

Chapter 6: Monitoring Progress

Formulating a Measurement System

Generally Measurable Items

Data Structure Model

Environmental Indicators and Concepts to Consider

Suggestions for Developing and
Using Measurement System

Benchmark Technique

Assessing the EMS

Steps for Assessing the EMS

Assessment Procedures

Considerations for the Assessment Team

Considerations if Results Show Difficulties or Unreached Targets

Chapter 7: Improving Results

Creating and Implementing a New Action Plan

Elements of the Continual Improvement Process

Considerations for Creating a New Action Plan

Writing an Environmental Policy

Considerations for Writing an Environmental Policy

Points to Address in an Environmental Policy

Chapter 8: Questionnaire for Establishing Priorities for Objectiv
es and Targets



Energy Sources/Use


Laws and Regulations


Process Design/Operation


Product Design

Raw Materials


Solid and Hazardous Waste

Solid Waste Management

Storage On Site

Transport and


Waste Disposal


Water Use/Discharge

Chapter 9: Case Studies

Finding a Mentor to Help Develop an EMS

Process Optimization in Textile Dyeing

Energy Saving in Soap Production

Increased Raw Material Efficiency in Pulp and Paper Production

Toxic Waste Reduction in Chrome Plating

Rubber Reuse in Belt Manufacturing

Reuse of Chromium in Leather Tanning

Water Savings in Sugar Refining

Chapter 10: Sample Forms

Action Plan Form (sample)

Prevention Plan Form (sample)

Emergency Plan Form (sample)

Training Plan Form (sample)

Process Identification Plan Form (samp

Material Identification Plan Form (sample)

Environmental Policy (sample)

Chapter 11: Resources

Support Sources

Large Companies, Clients or Suppliers Acting as M

Other SMEs

Expert and Local Technical Assistance

Extra Assistance


Considerations in Hiring Consultants

Information Sources

Multinational Companies

Environmental Regulatory Agencies

AssociationsCustomers and Suppliers

The Internet



Copyright © 2000

2007, International Finance Corporation. All Rights Reserved.

Chapter 1: Introduction

This manual is a step
step guide designed to help enterprises implement
Environment Management Systems (EMSs) and comply with IFC's
ironmental policies. The manual's primary goal is to help businesses use
environmental reviews to identify cost
saving measures. It is also intended to be
a resource for companies to ensure positive environmental impacts while
benefiting their own organiza

Defining an EMS

An Environment Management System, or EMS, is a comprehensive approach to
managing environmental issues, integrating environment
oriented thinking into
every aspect of business management. An EMS ensures environmental
considerations ar
e a priority, along with other concerns such as costs, product
quality, investments, PR productivity and strategic planning.

An EMS generally makes a positive impact on a company's bottom line. It
increases efficiency and focuses on customer needs and mark
etplace conditions,
improving both the company's financial and environmental performance.

using an EMS to convert environmental problems into commercial opportunities,
companies usually become more competitive.

Business Benefits of an EMS

An EMS is an
important component of a company's strategy for marketplace
success. Environmental issues and sustainable development are capturing

world's attention more than ever, and industry is often seen as a major source of
environmental problems.


sses such concerns and leads to significant environmental
improvements. In addition, an EMS can improve product quality,
competitiveness, and production processes; reduce expenses, liabilities,
insurance premiums and waste management costs; and enhance mar
responsiveness. An EMS also creates a more attractive company from an
employment and investment perspective.

An EMS can favorably benefit key areas for a business, including:

Trade Customers and Consumers

are becoming more environmentally
conscious, an
d are selecting products that do not harm the environment. Major
customers have started requiring suppliers to adopt an EMS. Customer trust is
enhanced by commitment to demonstrable environmental management.
Globalization has expanded markets and an EMS he
lps meet international
consumer demand.

Consumer pressure has been shown to be an increasingly
influential force demanding particular environmental standards for products.


whose skills, morale and management effectiveness are enhanced by
an E
MS. An EMS also improves employee retention and efficiency, and can
create a safer and healthier workplace. In addition, an EMS can help build
employee awareness about the production process by encouraging employee
involvement in identifying problem areas.


whose criteria may demand strong environmental practices, thus
facilitating access to capital. An EMS can also improve relationships with
investment bankers, lenders, and stocks and bonds brokers.


particularly the export as well as
internal market advantage can benefit by
a company adopting an EMS whereby many countries and economic trading
blocks have introduced 'ecolabelling' schemes.

Local Community.

An EMS helps maintain good community relations and
enhance public image, as wel
l as fostering development through the sharing of
environmental solutions. Organizations with an EMS are better able to understand
the communities in which they operate. Healthier communities result from
reduced exposure to hazardous wastes and chemical ma
terials, which may be
called for by an EMS. A company's networks and reputation are also strengthened
by an EMS. Improved relations with local and national NGOs will also result.


Implementation of an EMS may help companies obtain permits and

authorizations. Industry
government relations may be improved among
companies with an EMS. An EMS also helps demonstrate compliance with

environmental legislation. Legal and administrative costs are reduced by an EMS.
An EMS can also reduce legal liabili
ty and risk of prosecution.

Sales and Marketing.

Companies may increase their market share by minimizing
the environmental impact of their operations through better product designs and
cleaner production. An EMS can serve as a valuable marketing and prom
tool, and can improve a company's competitive advantage. Companies without
sound environmental practices may not be able to take advantage of

commercial opportunities, while companies with an EMS are more competitive in
the global marketplace.


An EMS can reduce operation costs by using less raw materials and
conserving energy. It can also reduce the costs of doing business and increase
profits, since greater efficiency means using less materials, time and energy.
Efficiency, envir
onmental and business performance, and compliance with
mandatory standards can also be improved by implementing an EMS.


By using an EMS, a company may be able to obtain insurance at
lower cost. Companies that implement an EMS can reduce incide
nts that result in
liability, while companies lacking sound environmental practices may be exposed
to financial and environmental risk.

Waste Disposal.

By implementing an EMS, companies can improve pollution
prevention. An EMS can minimize waste, thus lo
wering operating costs, as well
as eliminating waste transportation, storage and disposal costs. Costs for
compliance with waste disposal regulations may also be reduced with an EMS.
Additional revenues from recovery and sale of reusable wastes may be obta
by using an EMS.

Implementing an EMS

The process of creating and developing an EMS is described.

The first step is
building awareness among both management and employees, helping them re
orient their thinking about the environment to better underst
and its relevance and
impact on the company, regardless of company size, its products or services.
The second step is for companies to become more proactive toward
environmental issues. Finally, once an organization develops a new
environmental culture, it

will constantly look for new suitable solutions to improve
its operations.


This manual is an advisory intended to help enterprises evaluate the impact they
are having on the environment, how to identify environmental protection
opportunities an
d improve awareness of the benefits of implementing an EMS.
Compliance with environmental and occupational safety and health legislation is
the responsibility of each individual business, and is not the focus of this manual.
This manual is adapted from a n
umber of sources providing detailed accounts of
how to implement an EMS and of environmental regulations and guidelines,
including the environmental management system standard ISO 14001. This
document has been prepared by the ESRU of IFC and we welcome fee
dback on
its content and applicability.

Judgements expressed herein do not necessarily
reflect the views of IFC's Board of Directors or the governments they represent.

Chapter 2: Success Stories: Businesses
Profiting from EMS

Many companies have profited

from implementing an EMS. Here are descriptions of
some brief success stories which provide insights into the process and benefits of
implementing an EMS. More in
depth case studies are explored in Chapter 9. To preserve
confidentiality, some firms are re
ferred to as "Company A" or similar.

A manufacturer of office furniture eliminated the use of methyl chloroform from
its cleaning and fastening processes and reduced the volume of VOC emissions by
converting to a powder
based coating system. These pollutio
n prevention
alternatives saved the company more than $1.1 million per year, with a return on
its $1 million investment in less than one year. Other bonuses included ease of
compliance with increasingly stringent environmental regulations and the
on of incineration fees for solid and liquid hazardous wastes.

Marvins Cleaners, Inc. provides dry cleaning services. The company
replaced its old equipment with new cold water chilled closed loop systems to
recycle PERC (perchloroethylene). The new

system also uses reusable nylon
filters and increases efficiency, since garments do not have to be transferred
between machines. The new equipment eliminated most VOC emissions
(eliminating the need for permits)

and also reduced purchase of PERC from 200

gallons per month to 40 gallons per month. In addition, the hazardous waste
stream was reduced from over 1,900 gallons of spent PERC per year to just 35
gallons of still residues per month.

The company realized a net savings of $1,400
per month with the
new system.

Company A did not think it generated a significant amount of waste, but when the
company reviewed its activities and introduced more efficient ways of handling
cardboard, waste elimination bills were cut by 55 percent. Company A also saved
aff time, increased staff awareness, and reduced their waste_______ by 577 tons
(in the first year).

The managing director of Mounstevens Ltd., a manufacturing and retail baker,
increased staff awareness and introduced careful separation of waste. The
pected benefits include cutting waste bills in half and saving $8,800 and 26 tons
of waste. "We would have to sell a lot of extra doughnuts to make that sort of
impact on our profitability," said the managing director.

Company B instituted a facility
e municipal waste recycling program
including metal, cardboard, paper, wood, plastic and glass.

More than 50 percent
of the municipal waste generated by the company is now recycled. The program
greatly reduced disposal costs and generated enough revenue f
rom marketing the
recyclables to fund the program's operating expenses, including wages and
benefits, equipment operation and maintenance, utility costs and program

Jamestown Paint Company reduced its use of toluol by 95 percent and xylol b
y 74
percent by developing water
based products to replace solvent
based coatings.

A manufacturer of power steering gears, engine timing devices and power
transmission boxes installed a green sand recycling system in its foundry. The
system puts recovere
d sand directly back into the processing lines, recovering
about 95 percent of silica sand. Previously, the company purchased four million
pounds of sand per year. Today, it purchases only 80,000 pounds per year. The
new system significantly reduced the sa
nd purchase and greatly reduced the
generation of waste sand and resulting disposal costs.

A producer of vegetable tanned leather changed its dye supplies to low content
manganese, antimony and beryllium dyes. As a result, the company was able to

and market the resulting wastewater treatment sludge as a useful and
valuable soil supplement, saving the company more than $60,000.

Company C considered trichloroethylene (TCE) emissions as constituting a
significant environmental impact due to: hazard
ous waste disposal costs, TCE's
impact on human health, and TCE's toxicity rating (commonly listed as a potential
carcinogen). Since TCE emissions were identified as significant the company

to minimize TCE use and set a specific target of complete
ly eliminating
TCE by the end of the fiscal year. The first step was identifying areas where the
TCE was used. Suppliers marked metal parts using a grease coating to facilitate
the stamping process. Company C used TCE in a vapor degreaser to clean these
tal parts. The company convinced its suppliers to replace the grease coating
with a water
based lubricant, thereby eliminating TCE use from the cleaning of
about 80 percent of its parts. For the remaining 20 percent (parts that were
cylindrical and require
d heavier oils in their production), the company
incorporated a two
step aqueous cleaner to replace TCE. As a result, the
degreasers were shut down. By eliminating TCE in the facility, Company C saves
approximately $100,000 annually. More importantly, the
company has reduced
health risks by eliminating the use of a suspected carcinogen in the workplace.

Honeycombe Leisure plc, which runs 32 pubs and bars, implemented a glass
recycling scheme which resulted in sustainable cost savings on the tens of
nds of used bottles annually. Honeycombe Leisure also introduced water
regulators to eliminate unnecessary water use and air filters to improve the
atmosphere. "All of these initiatives are already making a positive impact both on
the profitability of our
company and on the environment," said Michael Norris,
Honyecombe Leisure's financial director.

A manufacturer of custom chemical intermediates and agricultural and
pharmaceutical additives distills and reuses waste methanol from manufacturing
and sells e
xcess methanol to other companies. This saved substantial money by
reducing methanol purchases by 33,600 gallons per quarter and lowered

wastewater treatment and disposal costs.

During its EMS identification process, Company D noticed that one of its la
machines had a serious oil leak. The leak was quickly repaired with a $5 gasket.
This easy, inexpensive action cut by half the amount of oil consumed by the
company, creating significant cost savings. In addition, the local municipal
authority reclassi
fied the plant as no longer generating hazardous waste.

While identifying environmental impacts, Company E calculated that raw
material waste accounted for 15 percent of its total final product. In response,
Company E ordered metal inputs in custom sizes

that better met its needs, which
reduced waste and raw material costs.

Company F reduced its noise levels through improved machinery maintenance as
part of its EMS implementation.

As a result, the company no longer receives
noise pollution complaints.

Company G often faced a critical water supply shortage. Reducing and
monitoring water consumption became a priority.

A wastewater treatment system
and meter were installed. As a result, Company G was able to recycle 40 percent
of the water it used.

hapter 3: Creating an EMS (Overview)

Environmental management systems follow a systematic approach of planning,
implementing, evaluating and improving. The following diagram outlines the basic steps
of the process. Each step is explained in the following c

Two key steps which need to be implemented at the start of EMS process:

Obtain the support of top management.

Senior managers must be committed to
and actively involved in the EMS process from the beginning.

Involve all employees in the EMS.

mote the idea that environmental matters
are a joint task requiring the participation of the entire company. When the EMS
is ready, announce the program throughout the organization and encourage all
staff to participate.



Select an environmental task group.


Set objectives and targets.


Prioritize actions


Create an action plan and an

action team.


Create a prevention and emergency plan.



Creating and and im
plementing a

new action plan.


Writing an environmental policy.

Implementing the Action Plan


Train staff.


Communicate EMS information.


Set a budget



Formulate a measurement system.


Establish and define benchmarks.


Regular assessment of EMS implementation

project plan if necessary).

Some people in the organization may view an EMS as a bureaucratic initiative or as ext
work in addition to their existing responsibilities.There may be resistance to change or
uncertainty of new responsibilities. To overcome these potential obstacles, help needs to
be given to employees to understand why the organization needs an effectiv
e EMS and
how the EMS will help control environmental impacts in a cost
effective manner.
Involving staff in the design and implementation of the EMS will demonstrate the
organization's commitment to the environment and help to ensure that the EMS is
stic, practical and adds value.

Chapter 4

Planning an EMS

Selecting an Environmental Task Group

The responsibilities of the environmental task group include identifying ways for the
company to improve its environmental performance, setting objectives and

targets and
monitoring and evaluating implementation.

The company's top management is responsible for selecting the environmental task
group, which will implement the EMS.It is crucial to obtain the full commitment of top
management before starting the pr
ocess. It is also important to obtain employee support
and share environmental values that will transform the EMS from paperwork into an
effective process.

The company should explore its in
house expertise in forming the task group, as the
following chart



Top Management

Communicate importance of EMS throughout organization

Provide necessary resources

Review EMS performance

Middle Management

Support training for new employees

Human Resources

Define competency requirement
s and job descriptions for various
EMS roles

Integrate environmental management into reward, discipline and
appraisal systems

Organize environmental training with environmental task group


Implement preventive maintenance program for equipment


Assess market/customer response and demands


Track data on environmental management costs

Prepare budget

for environmental management program

Evaluate economic feasibility of projects


Consider environmental impact of new or

modified products and

Identify pollution prevention opportunities, excessive use of raw



material purchases

Acquisition of hazardous material and disposal of waste

The number of people invol
ved will depend on the size of the company and resources
available. It is worthwhile involving staff from different departments in the planning and
implementation process/task group, since a multidisciplinary approach often proves most

hing Objectives and Targets

One of the most challenging steps in planning an EMS is determining the environmental
impacts. The environmental task group will examine the company's inputs, such as
energy and water; its outputs, like solid waste, wastewater,
oil mist and noise; and its
manufacturing processes such as plating metal. The environmental task group will also
examine purchases, processes, and waste streams in order to identify and classify future
environmental projects.

The environmental task group'
s first duties are to appraise the organization's operations,
services and activities, and to select objectives and targets. This will also help the
company to measure the effectiveness of its environmental efforts and improve the
performance of the enviro
nmental management system.

One environmental goal, may be to minimize the use of a certain chemical.

A target is a
detailed, quantified requirement that arises from specified objectives. For example, a
target might be to reduce the use of chemical X by 25

percent by a specified date.

Considerations in Setting Objectives and Targets

Reducing the company's impact on the environment.

Comparing current practice with best practice.

Reducing financial costs and liabilities.

Improving the company's efficiency.

tting clear, specific objectives and targets.

For help with establishing environmental objectives, use the Questionnaire for
Establishing Priorities for Objectives and Targets in Chapter 8 to identify areas for
improvement and to set priorities.

Tip Shee
t: Determining Environmental Impacts

Identify areas with the greatest effect on the environment and classify them
according to their extent of impact.

Involve as many people as possible in the process of identifying environmental
impacts. Include top manag
ement, production line employees, and staff from
different departments, such as environmental, health and safety, product
design, engineering, line management, maintenance, procurement, shipping /
receiving, or other departments as appropriate.

Consider ac
cessing information from other interested external parties, which
can add value to the search. Expand the analysis to include outside activities,
such as services at customers' site. Off
site operations can also have potential
environmental impacts.

er both normal and abnormal conditions when looking at environmental

While identifying environmental issues, consider ancillary activities too. Some
of the worst pollution comes from support facilities, such as tank farms and
wastewater treatment

Remember that the easiest and most cost effective phase to eliminate
environmental problems is during early stages of the product and process
design. It is also during these stages that products can be modified to reduce

In selecting prioriti
es, consider issues such as cost vs. benefits, availability of
appropriate technology and future legislative requirements.

Areas will differ in priority. For example, atmospheric emissions may be more
important than land use.

Scheduling brainstorming sessi
ons may be rewarding to gain staff input from
different areas.

Tip Sheet: Walk
through Assessment

The assessment team may wish to do a walk
through of the site to observe potential environmental impacts.

Does the facility show signs of poor housekeeping
, such as cluttered walkways,
unswept floors or uncovered material drums?

Are there noticeable spills, leaking containers, or water dripping or running?

Is there discoloration or corrosion on walks, work surfaces, ceiling and walls,
or pipes? This may indi
cate system leaks or poorly maintained equipment.

Is there smoke, dirt or fumes indicating material losses and air pollution?

Are there odors, or eye, nose or throat irritation upon entering the workplace?
These symptoms might indicate system leaks or othe
r problems.

Are there open containers, stacked drums, insufficient shelving for inventory,
or other indicators of poor storage procedures?

Are all containers properly labeled as to their contents and hazards?

Is emergency equipment such as fire extinguishe
rs available and visible to
ensure rapid response to a fire, spill or other incident?

Is waste such as dripping water, steam or evaporation noticeably being
generated from processes in the facility?

Does the inventory include any outdated stock, and are ma
terials that are no
longer in use still in storage?

Do employees have any comments about the sources of waste in the facility?

Is there a documented history of spills, leaks, accidents or fires in the
facility? If so, which processes were involved?

ritizing Projects

After collecting the pertinent information and establishing environmental management
objectives and targets, the company must then prioritize its environmental projects.
Frequently, more projects are identified than can be realistically
handled at once, due to a
lack of personnel or finances. Prioritizing projects will determine what gets done first.
This stage requires time and dedication of the environmental task group, and is crucial to
the implementation of the EMS.

The following two
tables will help prioritize projects. The first table classifies the degree
of impact and the period of occurrence, which will help determine priorities for different
areas and selecting an appropriate action team. It will also support the assessment revie
by suggesting a sequence of activities to be monitored. The second table offers a more in
depth analysis that is useful in classifying project priorities.




No Risk

= N

Low Risk



Moderate Risk = M

High Risk

= H












Product Design

Raw Material


Water Use/



Storage On Site


Waste Disposal

Transport and

Solid and
Hazardous Was

Pulp and Paper



Law &

The second table provides a more detailed status of a project in various categories. The
objective of both these table
s is to assist the environmental task group in identifying
problem areas, setting priorities and finding feasible solutions. All relevant environmental
impacts should be specified under each category.



No Risk

= N

Low Risk



Moderate Risk = M

High Risk

= H

of impact

Probability of

Potential legal
exposure and

Cost of
reducing the

Benefit $

Effect on
the public




Product Design

Raw Material


Water Use/



Storage On Site


id Waste

Waste Disposal

Transport and

Solid and
Hazardous Waste

Pulp and Paper



Law &

g an Action Plan and an Action Team

An action team should be assigned for each project. Action teams are staff with the

and management skills to determine the best ways to make the changes
identified in the action plan. Human resources should be

allocated according to skills and
availability. The company may also consider hiring temporary employees or consultants
to develop some of the documentation and to gather information necessary for a
successful EMS.

The team approach and employee awareness

are key to the successful implementation of
an EMS.

Since there may not be one employee who can be solely dedicated to managing
environmental affairs, the team approach also provides both motivation and joint

The environmental task group shoul
d work closely with each action team, providing
information, exchanging ideas and assisting in the implementation of changes. The
environmental task group should reduce the need for outside consultants and keep the
company moving ahead with its action plan
. Additional training for action team members
is likely to be required.

The environmental task group will develop an action plan for each project. The purpose
of the action plan is to allocate human resources, to establish benchmarks, costs and
outline clearly
defined steps to meet the targets, and monitor progress.

Creating an Action Plan

An action plan is the foundation of an EMS. It may be thought of as a continuous loop of
analyzing and improving, as the following diagram shows:



Gather and analyze data


Set objectives and targets.


Check and Improve



Write the action plan


Implement changes

Once environmental impacts have been identified and management has decided which
projects to address first, an action plan for each project should be written. The best r
in formulating an action plan are obtained when the environmental task group and the
technical specialists jointly find solutions.

It is not necessary to address all impacts at one time. Initial actions on more important
areas should be undertaken
first, addressing lesser issues at a later date. The action plan
should also be flexible enough to accommodate modifications in line with changing
priorities and external and internal circumstances.

The following action plan model will help to address crit
ical areas in analyzing projects
and creating an effective action plan.

Model Action Plan

Environmental Impact and Issue to be Addressed.



Specific Objectives and Targets.

For example, consider using a chart such as the one



Reduce emissions of volatile organic compounds

Reduce emissions by 10 percent in 2000

Reduce energy use

Reduce electricity use by 15 percent in 2000

Reduce natural gas use by 20 percent in 2000

Recycle cardboard waste

Recycle 50 percen
t of cardboard waste in 2001

Improve compliance with wastewater discharge
permit limits

Zero permit limit violations by the end of 2001

Promote environmental activities

Promote environmental activities through letters
attached to payment slips

Reduce en
ergy used in manufacturing operations

Achieve 10 percent reduction of energy
consumption from to the previous year

Recycle plastic bottles

Recycle plastic, 50 percent of bottles in 2000 and

100 percent of bottles in 2001

Action team and team leader.

e team may include representatives from the
environmental task group, health and safety, product design, engineering, line
management, maintenance, or other functions as appropriate. Create work teams
according to the expertise and availability of action t
eam members.

Environmental impacts throughout the project's life cycle.

Consider the
project's stages in the life cycle of the organization's products, service and
activities. Evaluate the environmental impacts throughout the product's life cycle,
ing with the initial product design, acquisition of raw materials and
continuing through all stages of processing, storage, manufacturing, distribution,
transportation, and final disposal. A flowchart of the company's operational
process can provide a clea
r view of how its activities have been conducted and
may help locate flows and weaknesses.

Steps to eliminate or minimize negative environmental impacts.

There are
many ways to reduce adverse

environmental impacts. For a list of techniques to
see Tip Sheet: Techniques for Addressing Environmental Problems

Information and resources needed to carry out the task and people to assist
the action team.

Assign personnel to collect information to support the action
team in determining the proc
edures for minimizing or eliminating negative
environmental impacts. Look for information not currently classified as
"environmental," such as operational data, management reports, audit reports,
water and energy regulations and permits. There are also use
ful sources of
information outside the company and on the Internet. For more information on
resources, see Chapter 11.

Schedule of activities, dates and deadlines.

Measurement Performance.

Essentially this comprises the 'project plan' against
which var
ious phases of the action plan are monitored.

Create a performance
indicator. Measuring performance is critical in any important endeavor. What gets
measured gets managed. For more information on formulating a measurement
system, see Chapter 6.



Some benefits from environmental improvements are
intangible and cannot be directly measured. However, it is important to recognize

Investment costs.

A budget for all the various phases of EMS implementation
needs to be formulated. It i
s difficult to put a price on implementation, but
designate funds for each project to uphold its development. For small and
sized enterprises, implementing an EMS may be more dependent on
human resources than financial resources.

Date for first an
d subsequent assessment.

Regular review of progress needs to
be made. This also assists in identifying factors which may need to be overcome
or to which special attention needs to be paid to ensure success.

Tip Sheet: Techniques for Addressing Environmenta
l Problems


Change the design of either the product or process to eliminate or
reduce any negative environmental impacts.


Try to eliminate or reduce negative environmental impacts by
replacing a source of waste with another material le
ss likely to adversely
affect the environmen. A packaging example: Styrofoam peanuts could be
substituted for peanuts made from corn by
products, which are more likely to
disintegrate naturally.


Reduce the amount of waste products by reducing the u
se of
components or materials that create or significantly add to waste streams.


Usually entails breaking down a product (or its parts) or a process
(or its components) into its base components and refabricating them.


Restore a product o
r process to its original condition or similar
condition. Rebuilding recovers some parts or components, while others must be
replaced. The greater the number of parts/components recovered, the more
efficient the rebuild.


Restore a product o
r process to original or better
original condition without any parts being reduced to raw materials.


Return material to the same application in its same form.

Internal Consumption.

Use waste internally when possible. For example,
wooden pallets

can be used to make electricity when used as a part of a co
generation facility.

Prolong Use.

Increase the overall life of the product through extended use.
An effective preventative maintenance program is key to prolonging use.

Forexample, car engines o
r cooling units may be re
designed to extend the
time periods between overhauls. While still maintaining acceptable levels of
safety and reliability.

Spread risks.

Transfer responsibility to a third party who is better able to
deal with the product or proc
ess. This option is often used when management
feels it cannot reduce the level of environmental problems associated with a
product or process. By calling in an expert, management attempts to spread
the risk e.g. a company using a disposal service to break

up and haul away an
old assembly line.

Create a market for waste products.

Seek customers for the company's
waste and help to create a market for it. For example, a furniture
manufacturer converted its remnants into rear interior shelves for use in
A third party was brought in to pick up the remnants and those from
other furniture makers in the area. The result was the creation of a viable
market for these remnants.

Separate waste.

Waste streams should be separated into different types
before recycli
ng, reuse or internal consumption. Waste separation is an
intermediate action to facilitate reuse or recycling.

Tip Sheet: Screening and Identifying improvements in Working Practices

How has it worked in similar applications?

Is this opti
on within the budget, considering both capital and ongoing costs?

Does this option have an acceptable payback period (under one year is
considered exceptional, under three years good?)

Does this option reduce the company's raw material costs, energy consum

and/or pollutants?

Will this option reduce the company's waste disposal costs and/or material and
waste storage costs?

Will this option reduce the company's costs associated with worker injuries or

Will this option reduce the company's in
surance premiums?

Does this option have a proven track record?

Will this option maintain or improve product quality?

Will this option adversely affect or increase productivity?

Is space available if necessary?

Are the necessary utilities available or must
they be installed?

Is the new equipment, materials, or procedures compatible with production
operating procedures, workflow and production rates?

Is special expertise required to operate or maintain the new system? Is
additional labor required?

Is it certa
in that this option will create less waste?

Is it certain that this option will not move waste problems from one form to
another site or part of the overall operation (e.g. from solid waste to air

Is the plant layout and design capable of incor
porating this option?

Has it been determined that this option will improve or maintain worker safety
and health?

Are materials and parts readily available?

Does the vendor provide an acceptable and reliable service?

Are other businesses using this option?

Does this option promote recycling?

Tip Sheet: Ways to Reduce Waste

Change plant operations and/or procedures by improving housekeeping and
training employees about ways to reduce waste.

Substitute non
toxic materials in the production process.

m (recycle) materials during the production process.

Modify equipment to improve efficiency.

design the final product to eliminate processes that create wastes.

Standardize materials or use the minimum number of types of materials in
processing. This in
creases the potential for recycling and reduces the amount
of waste requiring disposal.

Provide adequate aisle space for container transfer and easy access for

hapter 5: Implementing the Action Plan

Training Staff

Training is an essential
and cost
saving investment for the company to ensure all
personnel are aware of EMS benefits, objectives, procedures and targets.

Training also
enhances team work, improving personal relationships and encouraging collaboration to
find solutions.

tly, training helps employees feel that they have been
recognized, motivating their performance and stimulating their thinking.

Staff training significantly and immediately improves staff competency and quality of
service. Well
trained staff can better und
erstand how to perform in a focused manner
with available resources.

Management should encourage staff participation in implementing its EMS, since
employees have practical experience related to their areas and can be a great source of
information. They ca
n assist the environmental task group in duties such as drafting
procedures, and creating preventive and emergency plans.

Selecting Staff for Training

There are different types of training and requirements, and it is important that the
environmental task g
roup identifies the staff's training needs. Companies (SMEs) benefit
by training a wide range of participants because every employee can provide ideas and
contribute to the implementation of EMS.

The following table suggests audiences for various types of

Focus of training

Who should attend


Raising awareness of the
strategic importance of
EMS implementation

Top Management

Gain commitment and alignment to EMS

Raising general
environmental awareness

All employees

Gain co
mmitment to the EMS objectives
and targets

Develop a sense of individual

Skills enhancement

Employees with

Improve performance in specific areas,
such as the environmental task group,
action team and assessmen
t team


Employees whose actions
affect compliance

Ensure internal requirements for
implementing changes, such as in
operations and engineering

Considerations in Assessing Employee Training Needs

What EMS procedures affect his or her daily wo

What happens if these procedures are not followed?

What impact does his or her work have on the company's EMS implementation?

What knowledge and skills does he or she need?

How does his or her work affect their life in the community?

Note: Changing emp
loyee incentives to emphasize quality, lowering defect rates and
cutting waste will improve employee awareness and reduce resource use and waste.

Selecting Training Programs and Methods

Once the needs and training objectives have been identified and defin
ed, training
programs and methods will be selected. The environmental task group will research
material for creating an effective training program.

Support material for training and awareness programs can often be obtained at
standardization organizations,

business associations, chambers of commerce, and other
sources such as:

Consultancy firms

Community colleges and universities

Vendors and suppliers


Technical or trade business associations

study or study groups

Training consortia (teaming w
ith other local companies)


Scheduling Training

The next step is to schedule training sessions and workshops to raise employee awareness
and provide required training. Training sessions are good opportunities to gain employee
commitment and share t
he environmental values that will make the EMS an effective

Suggestions for Training

Emphasize the importance of employee participation in the EMS program and the
contribution their work has to the program.

Videotape the current EMS training cours
es and show the tape to new employees
and those who missed the training, or to reinforce the message.

Consider computer
based training as an alternative training method.

Also consider using other tools such as brainstorming, cause and effect analysis,
solving, process flow analysis and check lists.

Tip Sheet: Insights into Adult Learning

(Adapted from "30 Things We Know For Sure About Adult Learning,"
, July

Adults prefer active participation to straight lecture.

Information is acqui
red more slowly if it conflicts sharply with existing beliefs
or has little conceptual overlap with current knowledge base.

Adults prefer self
directed learning and want to help shape the training

Adults have expectations. It is important to clari
fy these up

Adults need the opportunity to integrate new ideas with their existing

Communicating EMS Information

Good communication is vital to the success of EMS implementation. A good
communication system should reach all levels and

functions of the organization. Such a
system demonstrates the company's commitment to environmental issues, gains the
support of employees and the community, raises employee awareness, and enhances
participation in the EMS implementation.

Regular communic
ation is also the way to gain employee involvement in developing and
implementing an EMS. It motivates the workforce, demonstrates management
commitment and informs all personnel about the results of EMS performance.

A good communication system includes bo
th internal and external lines of
communication. It is important that employees and those outside the company (such as
investors, customers, suppliers, shareholders, the local community, environmental
groups, government, control authorities and the general

public) are aware of the
organization's commitment to sound environmental management.

A positive communication process improves the organization's image, facilitates future
business relationships, increases employee satisfaction and pride in working for t
company and encourages public understanding and acceptance of the company's efforts
to improve its environmental performance.

Since employees are often an excellent source of information and ideas, create ways for
staff to communicate their ideas. Keep
in mind that external help is also available from
sources such as consultants and other companies.

Communicate progress as it is made. A good internal and external communication system
helps build trust and gain support.

Selecting Internal and External Tar
get Audiences

External publicity is a positive marketing tool. Promoting the company's
friendly actions helps improve its public image and enhance acceptance
of the organization's efforts to advance its environmental performance.

Internal p
ublicity helps achieve positive environmental results. For instance, employee
motivation can be enhanced by recognizing work in achieving environmental objectives
and targets. For example, the CEO from a company personally signed over 250 letters to
all hi
s employees, explaining the importance and benefits an EMS would add to the
company and asking for their commitment and participation. Employee response was
extremely positive. Staff from all levels were involved in the process, and suggestions
and feedbac
k came from all departments.

Selecting Information to Share

The company should effectively provide much information as possible to both internal
and external audiences, transparency is an important part of this process. Information
may include:

The company
's environmental mission statement

EMS objectives and targets

Organization performance (e.g. an 'environmental report')

Comparison and analysis of results

Environmental task group, action group roles and responsibilities

Monitoring and Assessment schedule

Preventative action and emergency procedures

Suggestions for Communication

Illustrate information materials with examples such as the company's targets and
its achieved results.

Make sure that the material supplied is sufficiently detailed and easy to
rstand (in layman's terms). Use a glossary or attach definitions when using
unfamiliar or technical terms.

Explain why these measures are being put into practice and the benefits of doing

Where possible, try to employ a paperless office and use more ma
communication, such as e

Incorporate a positive public image related to environmental improvements into
the company's marketing strategies.

Publicize the company's efforts to reduce negative environmental impacts.

Communication Procedures and Stan

The communication system in small and medium
sized enterprises are less complex than
in large corporations. This is an advantage. Keep communication simple and efficient.

Promote two
way communication with suggestion boxes. Add space for environmenta
issues in the company's journal where employees can write their ideas, accomplishments,
contributions and experiences during EMS execution.

Ways to Communicate with Staff, the Community and the Government

Staff meetings and brown bag lunches

Posters for
building staff awareness of environmental and cost
saving issues

Packaging, vehicles, advertising, press releases and open houses

Announcements on the bulletin board

Reports on the organization's environmental performance, proposed actions and
assigned per
sonnel, objectives and targets

Individual letters to employees or attachments to payment slips, notice boards and

Mission statement

Annual report or a separate environment report

Notices reminding

staff of cost
saving procedures

Quiz sheets fo
r raising or checking staff awareness of the environmental impact
on businesses

Environmental events (both participation and funding)

Electronic mail messages, which are fast, inexpensive and environmentally

Internal newspapers

Maintaining the Flo
w of Information

A responsible person or group should handle communications. This task could be
performed by member(s) of the environmental task group or human resources staff, for

All material, especially when intended for external release, shoul
d be checked prior to
release that it accurately communicates the company's environmental performance,
actions and concerns. It is also important to keep records and files on all communication
of environmental matters, both internal and external.

Cost Dete
rmination and Setting a Budget

The final part of the implementation phase is preparing a preliminary budget for each
project's development. Costs will include staff and employee time, training, some
consulting assistance, materials and possibly equipment.

The cost of EMS implementation is difficult to quantify. Most significant costs are due to
personnel expenditures. The benefits are equally hard to quantify, since many of the
benefits are intangible. However, in a global economy in which labor, materials,

capital costs are likely to converge over time, effective management of environmental
performance may become increasingly important in determining corporate winners.
Evaluation shows that many of the investments in EMS implementation provide
al positive returns and adds lasting value to the firm. In short, the benefits
outweigh the costs.

It is critical that the company accurately and consistently measures its inputs and outputs.
Without cost information, it is not possible for the company to
adequately assess the
results of improvements or the profitability of its products, departments or services.

Environmental costs are incurred by society, organizations or individuals resulting from
activities that affect environmental quality. These impact
s can be expressed in monetary
or non
monetary terms.

Since cost is the primary concern for most small businesses, low
cost, low
tech changes
should be identified and implemented first. These options are easier to implement and
their benefits are readily a
pparent. More capital
intensive options should be implemented

In today's highly competitive business climate, companies gain sustained competitive
advantage by reducing both environmental costs and operational costs and procedures
which produce nega
tive environmental impacts.

cost Options with Immediate Payback

Employee training about EMS objectives and tasks

Finding ways to use waste as an energy source

Good housekeeping can prevent waste through spills, etc.

Using quality resealable containers,

which prevent loss from spills and

Inventory control, which ensures that only necessary materials are used

Separating wastes, which may be used for recycling

Eliminating leaks, which reduces raw material consumption

Cleaning and stripping mech
anically, which can replace solvents where possible

Using old solvents for a first rinse, which may extend the life of the fresh solvent.

Tip Sheet: Writing the Financial Plan

The company may have a budget system for projects that could be adapted to
onmental issues.

Analyze all options carefully, weighing costs versus benefits.

Keep inventories of the amount of raw materials used per process to monitor
process efficiency.

Maintain an inventory of the types and quantities of waste produced by the
ny to target waste reduction opportunities.

Consider the cost of waste disposal when developing profit and loss

Keep records of waste production costs associated with the various processes.

Break down costs and benefits by category (such as dev
implementation and maintenance) and type (such as materials, equipment, labor,
fees and consultants).

Develop a methodology for tracking costs and benefits.

Chapter 6: Monitoring Progress

Formulating a Measurement System

The environmental tas
k group should establish a measurement system to regularly
measure the characteristics of its operations and activities that have a significant impact
on the environment. This includes recording information on performance and whether
objectives and targets

are being met.

The system will monitor and measure actual performance against the action plan, and
should be straightforward, cost
effective and technologically feasible. Indicators should
be verifiable and reproducible for practical use and analysis.


maintenance of records is essential to implementing the EMS. Records show the
program's success or otherwise in achieving objectives and targets. The record
process includes identifying, collecting, analyzing and completing information and data.

hen keeping records, focus should be placed on environmental information that the
company needs to manage effectively.

Generally Measurable Items

Quantity of raw material or energy used

Quantity of emissions such as CO2

Waste produced per quantity of finis
hed product

Efficiency of material and energy use

Percentage of waste recycled

Percentage of recycled material used in packaging

Specific pollutant quantities, such as NOx, SO2, CO, HC, Pb, CFCs

One way to monitor performance is through a record sheet, suc
h as a Data Structure
Model, which should be completed for every activity.

Table 3 Data Structure Model


Example of pH control in wastewater

Account name:

Wastewater control

Specification of the input or output:







lligrams per liter (mg/l)

Target Amount:


Name of the person in charge:

Mr. Savings

Once the Data Structure Model is complete, it should be reviewed and followed
Below is an example of follow
ups for various activities comprising of Wastewater

Environmental Indicators and Concepts to Consider in Measurement System



Target (mg/L)







Mr. Energy/Engineering





Mr. Water/Engineering


Oil and Grease



Mr. Savings/Engineering





Mr. Energy/Engineering





Mr. Water/Engineering


Oil and Grease



Mr. Savings/Engineering





Mr. Energy/Engineering





Mr. Water/E


Oil and Grease



Mr. Savings/Engineering

Operational Systems: raw material use, energy use, waste generation, waste
disposal and controlling environmental aspects (such as the number of days
without incidents).

Environment Area
indicators: natural resources, water quality and air

Suggestions for Developing and Using Measurement Systems

Examine existing regulatory compliance (e.g. quality, safety) and
environmental programs. Could they be adapted to serve the EMS purpose?

How effective have they been? How might they be improved?

Define the factors to be measured to determine a project's outcome, and
collect only the information that is relevant and valuable. More than one
measurement may be needed to inform the management
of a company how it
is doing in the environmental area.

Specify the frequency and method of monitoring EMS implementation
(procedures and changes), and compare it against the environmental targets
and objectives previously established in the EMS action pla

Identify the process equipment and activities that affect environmental
performance. Some companies put key monitoring equipment under a
special calibration and preventive maintenance program. This can help to
ensure accurate monitoring and informs empl
oyees which instruments are
most critical for environmental monitoring purposes. In some cases, it may
be more cost
effective to subcontract, rent or share calibration and
maintenance of monitoring equipment, or the equipment itself, rather than

these functions internally.

Equipment used for monitoring and measuring must be accurate and
calibrated on a regular basis, but the company does not have to own all the
equipment. As previously mentioned, it may be shared, rented or leased.

Quantify the f
inancial implications and results of environmental protection
using a standard accounting system.

Link the measurement program with the communication program.

Do not tolerate excuses for failure to meet compliance. For example, delaying
corrective action f
or internal assessment discrepancies should be considered

It is acceptable to start small and build up over time as the company gains
experience in evaluating its performance.

Record the quantity of waste (liquid, solid and gaseous) produced by
process the company is engaged in.

Benchmark Technique

The environmental task group may consider using benchmarking, a well
practice that can be used to identify improvement options.

In benchmarking, managers first identify the "best in cl
ass" companies, i.e. companies
that have developed excellent practices which might pertain to customer service,
inventory accuracy or environmental practices. Management may then visit these
companies to learn, exchange ideas and build cooperative alliance

The company then sets standards to meet or exceed the achievements of the best practice
company. Benchmarking is one way whereby managers can become aware of the
different approaches of companies in other industries, as well as other unique or effective

solutions for handling environmental issues. Trade associations are often able to assist
with benchmarking initiatives.

Assessing the EMS

The information gathered during an EMS assessment will be used to determine if the
company is on the right track with

its action plan and to identify areas for potential
improvement of the EMS. Assessment should be used as a vehicle for making changes
for continual improvement and for revising and updating the EMS.

Steps for Assessing the EMS

Assigning and training perso

An EMS assessment can be undertaken by
the company personnel, external parties, action team and/or environmental task
group. The composition of an assessment team will vary from company to
company. Often the original environment task group takes over

the functions of
the assessment group, however participation of new members can enhance the
assessment and bring new inputs. The team should include, whenever possible,
personnel involved in each stage of business operations.

Even those employees
who are

not directly involved in processing or production may have helpful
suggestions. Familiarity with environmental regulations, the company's EMS
objectives and targets, facility operations, and auditing techniques are helpful
skills. Auditor training materia
ls are available through a number of organizations,
but it may be more cost
effective to link up with other local organizations
(perhaps through a trade association) to sponsor an auditor training course

Selecting procedures.

The environmental task grou
p and the assessment team
will create an assessment plan and an internal EMS checklist, including the EMS
action plan targets, for use as a guide. These documents should cover all areas of
the business, examining particular areas of the company (such as ma
transportation and receiving), environmental issues (such as water, waste and
energy) or individual operation sites. Assessment forms and checklists can
facilitate gathering and recording information.

Establishing frequency.

An EMS assessmen
t should be conducted regularly to
evaluate the status of the

EMS and to determine whether the system has been
properly implemented and maintained. The frequency may vary according to the
process, although an assessment should be conducted at least once a

year. The
assessment team should schedule meetings weekly, monthly or quarterly to
discuss the investigations and share new ideas and information.

Documenting findings.

Identify relevant problems, solutions, costs and
opportunities and record all recomm
endations throughout the assessment
procedures. Remember to keep it all well documented.
An effective
environmental assessment should generate sufficient information to enable
the company to develop its next action plan. The main objective is not only to
ocate weaknesses and deficiencies in the implementation, but also to
highlight achievements and compliance.

Assessment Procedures








Make a preliminary investigation to identify irregularities and n
with the EMS action plan.

Conduct a facility walk
through to verify the information and observe the
processes and operations.

Document the findings and disclose the information .

Assist the environmental task group in writing an new action pl

Considerations for the Assessment Team

Information can be obtained from various sources, such as document review. For
instance, a comparison could be done between the total raw material purchased
from year to year, or the total volume of wastewater fro
m month to month. There
are improvements that may be impossible or difficult to quantify, therefore, the
company should utilize alternative methods to measure its improvement.
Interviews and observations of working practices are further sources of evidence

The assessment team must have someone in charge and accountable for carrying
out the procedure.

A timetable should be established for completing the tasks outlined.

The appraisal should be conducted during normal business hours, so the
assessment team c
an talk to employees and observe processes in operation.

The appraisal should follow the product life cycle from receiving raw material to
delivery of the final product or service. One option is to break down the
assessment process into sectors, since some

areas may require more frequent

The assessment team should evaluate the strengths as well as weaknesses in the

The report should be written in a non
technical style since its readers will likely
have a range of expertise.

Specific att
ention should be given to corrective actions for discrepancy findings
from previous appraisals.

Discuss the report with personnel affected by the issues reviewed prior to its
release to ensure that data are not distorted.

Considerations if Results Show Dif
ficulties or Shortfalls in Target Attainment

Is the measurement system consistent?

Are there missing or faulty procedures?

Is equipment working?

Has there been sufficient training?

Are the requirements not properly understood?

Have the rules been enforced?

Is the communication process working?

Chapter 7: Improving Results

Creating and Implementing a New Action Plan

The EMS should be viewed as a dynamic process. The concept of continual improvement
is the essence of the EMS. By continually reviewing the EMS
performance against its environmental objectives, targets and policies, opportunities for
further improvement can be identified. As the companies change and grow, so do the
environmental complexities and conditions as they affect the company'
s EMS.

The assessment team will present their appraisal findings and recommendations to top
management, the environmental task group and the action team. Together, these groups
review the results of the assessment and collect ideas and suggestions for a re
vised action
plan, which ensures the continuing suitability, adequacy and effectiveness of the EMS
implementation. In this way, the company creates a loop of continuous improvement.

Elements of the Continual Improvement Process

Identify opportunities for i
mproving the environmental management system,
which will lead to improved environmental performance

Determine the cause or causes of nonconformance or deficiencies

Develop and implement plans for corrective and preventive action to address
causes as identi

Verify the effectiveness of the corrective and preventive actions

Document any changes in procedures from the process improvement

Make comparisons to objectives and targets

After reviewing the assessment findings and gathering staff proposals, the env
task group should write a new action plan.

Considerations for Creating a New Action Plan

Were EMS objectives and targets achieved / partially achieved / not achieved at

Were roles and responsibilities clearly defined and understood?

Were re
sources applied appropriately?

Were the EMS procedures effective?

Has the EMS been monitored effectively and regularly?

What measures need to be taken to bring about improvements?

Writing an Environmental Policy

An environmental policy's main purpose is to

serve as the basis for EMS implementation.
An environmental policy establishes the company's commitment to the environment and
provides a framework for environmental performance, while stating the company's
overall objectives. The company should keep its
policy simple and clear, and ensure all
employees are aware of it.

The company's top management must endorse the environmental policy, since
commitment and support from the highest level of determining the policy is essential for
the program's success. The

environmental task group and employees can contribute to the
process of determining the policy. Encourage everyone to share their suggestions.
Environmental issues encompass quality, health and safety issues, and they should all be
included in the environ
mental policy.

Considerations for Writing an Environmental Policy

The company's mission and core values

Support for continual improvement

Pollution prevention

Compliance with relevant laws and regulations

Relevance to the organization's activities, product
s and services

Reflection of objectives and targets

Points to Address in an Environmental Policy

Minimization of negative environmental impacts in production, use and disposal

Education and training of the workforce

Reduction of waste and consumption level
s of resources (materials, fuel and

Commitment to recovery and recycling

Encouragement of support of the EMS by suppliers and contractors

Involvement of all employees and local community

Chapter 8: Questionnaire

Questionnaire for Establishing Priorities for Objectives and Targets

The following

questionnaire is a checklist

for establishing priorities
and building an action plan. While it may not include all specific
business activities of a company, it provides areas for consideration.
Review the questions in each section carefully and identify

how the
products, activities, and services of your company could significantly
impact the environment.



Have all sources of emissions to water, air and land been
identified? Besides obvious sources, there may also be more
diffuse sources, such as drying or surface cleaning operations
which need to be assessed.


Have all potential sources of air emissions been identified?
Have all direct (i.e., stack) and indirect (i.e., fugitive) sources
of emissions been identified?


Have all stacks, vents, and exhausts and associated air pollutant
sources been identified and located?


Have the emissions b
eing released into the environment by the
organization's operations been identified, quantified and


Can all emissions, including any low concentration
nts, be quantified? Is the company aware of the
physical and chemical characteristics of these emissions?


Are emissions monitored and are detailed records kept? Have
the a
ppropriate authorizations been secured for these
emissions? Do these emissions consistently meet legal


Reducing one form of emission may result in increases
in other
emissions. The overall environmental impact of any planned
emission controls must always be fully considered.


Have any detectable odors, solid particulates, liqui
d droplets or
mists been detected in the air?


Is monitoring equipment installed to allow detection?


Have developments in process and abatement technology been
reviewed to establish the best available techniques to minimize


Are current legal requi
rements being met? Is the organization
aware of any likely future standards?


Have targets been set to reduce emissions? If so, have measures
to achieve these targets been

Definitions: Volatil
e Organic Compounds (VOCs) and
Hazardous Air Pollutants (HAPs)

These are gases created by the operation of the transformation
process. For example, when spray painting a bicycle, most of the
paint lands on the bicycle or the backdrop. The paint that does n
land on the product is called overspray. However, some of the paint
goes into the air where it can escape into the atmosphere. These
gases can be dangerous or poisonous. In general, VOCs are thought
to be precursors of air pollution. VOCs are also found

in adhesives,
sealers, solvents, and paints.

HAPs are considered toxic, and in
high concentrations can cause illness in people, animals, and
adversely affect vegetation through exposure.



Is energy used efficiently?


Have ways to reduce consumption been investigated?


Is energy consumption regularly reviewed?


Are energy efficiency practices encouraged?


Are employees trained in energy conservation?


Are energy bills/usage monitored by individual departments or
the company centrally?


Are buildings designed and insulated to reduce energy loss and
promote ene
rgy efficiency?


Is the efficiency of heating and air conditioning systems


s lighting energy efficient in design and operation? Is the use
of natural light maximized?


Are electrical appliances the most energy
efficient type


Has the installation of integrated energy management systems
been investigated? These can control heating, lighting, air
conditioning and electrical loads.


Are transport and distribution functions efficient in their fuel

What are the parameters determining "efficiency"?


Are emissions from energy sources on site, such as boiler
houses and generators, controlled?


Can the organization reduce its use of energy derived from
fossil fue


Have alternative energy sources (such as methane from landfill
gas, refuse
derived fuel or combined heat and power systems),

if available, been reviewed?

Note: Some of the waste created by the trans
formation process can
take the form of the inefficient use of energy, such as electricity. If
there is a machine that requires more energy to operate than other
available options, the excess energy consumed can be considered


Energy Sources/Us


Has energy consumption during production been minim


Can more environmentally
sound energy sources be used?


Have the least environmen
tally damaging sources of energy
been selected? There may be opportunities to use combined
heat and power, land fill gas, solar power, waste derived fuel,
wind energy and other sources.


Have possibilities for energy recovery been maximized?
Options include heat exchanges, recirculating cooling or
process water or improving plant insulation.


Are energy usage and costs monitored, and have efficiency or
reduction targets been set? Furthermore, can this be done for
individual departments?


Are there opportunities

to use high efficiency motors and
variable speed drives?


Are the factory and office premises designed to maximize
energy efficiency? Have they been insulated?


Could equipment be upgraded to improve energy efficiency?



Is there any area in which full environmental indemnity may be
difficult or impossible to obtain?


Is there any are
a in which insurance companies may place
limits or exclusion on liability coverage?

Note: EMS implementation may help facilitate negotiation with
insurance companies.

Laws and Regulations


Is the company required to comply with environmental laws
and regulations? The company should be active in all areas
which laws and regulations are addr


Are any of the company's activities not in compliance with
legal requirements?


Are there specific areas of the company with particular
environmental pressures from legislative requirements or/ and



Is packaging minimized in products for transportation or sale?


Is packaging material recycled or reused?


Could the organization's suppliers and customers be encouraged
to recycle used packaging?.


Can the comp
any's packaging be reduced? Can its products be
distributed and sold in bulk or loose? Can packaging be
designed to be reused, refilled or recycled?


Can new/other packagin
g materials be used to facilitate waste


Can consumers be encouraged to reuse or recycle packaging
through bottle bank collections and the reuse of plastic bags
nd refillable containers?


Has the company considered or implemented a "take back"
policy on the packaging of its products?



Can paper use be reduced or made more efficient by means
such as greater use of electronic mail, voice communications or
s in office practices?


Can more recycled paper be used in offices?


Are there opportuni
ties to reduce costs by using recycled


Have possibilities for recycling waste paper been investigated?
Would it reduce waste disposal costs?


Are different types of waste paper separated for reuse and


How many internal and external business

forms does the
organization have? Are they all necessary?


Are employees encouraged to do more double


Are internal circulation lists based on a need
know basis,
particularly where long or costly documents are concerned?

Process Design/Operation


Are the environmental impacts of manufacturing processes
minimized during normal operations and periods of
maintenance, testing or shutdown?


Are processes designed to minimize energy, water usage and
raw material consumption?


Does the organizati
on recycle or reuse energy, water and
materials where practical?


Are appropriate environmental monitoring systems in place
throughout these processes?


Are the best available techniques used to prevent environmental
damage? Are technological developments reviewed regularly to
identify possible improvements?


Are processes designed and operated to minimize effluents,
emissions and solid waste?


Are effective environmental proced
ures in place to cover
periods of abnormal operation, such as maintenance or testing?


Could processes be designed to be waste

Note: Suppliers frequently use packaging material such as
cardboard, pa
per, plastic strapping, plastic wrapping film, wooden
pallets or plastic foam. In many cases, these items are landfilled.

Product Design


During product design, are the actual and potential
environmental impacts considered and minimized? Do these
considerations extend from supply and production through use
o ultimate disposal?


Are the company's products subject to current or proposed
environmental legislation? Can these legal requirements be


Are products designed to minimize the energy and raw
materials required to make them? Has the potential for using
recycled materials been maximized?


Can the product be designed in a way that would reduce the
environmental impact of the production processes and
minimize waste production?


Chapter 9: Case Stu

Finding a Mentor to Help Develop an EMS

Company A, a small Brazilian firm of 'x' number of employees, had two objectives in
developing its EMS. First, it sought to create cost savings to re
invest in the company and
second, it wanted to comply with e
nvironmental laws.

The first step the company took was to contact a supplier company that had previously
implemented an EMS of its own with positive results. The supplier company agreed to
serve as a mentor, sending staff to advise and help Company A imple
ment an EMS and
achieve its environmental objectives.

The staff from the supplier company advised Company A to prioritize its efforts by
selecting areas and issues on which to concentrate, since all of the company's concerns
could not be addressed at once
. The staff from the supplier company also suggested that
Company A examine each operational phase, such as purchasing, process, products,
transportation, rework, waste and packaging, to facilitate analysis. This approach
provided ideas of where to start l
ooking for potential environmental impacts.

Company A's manager in charge of the operation worked with other employees involved
in the process and identified six areas that would benefit from their resources and time.
Company A also developed a "risk analy
sis summary" which drew on their best
professional judgement to estimate the environmental hazardous risks for each of the six
areas. Company A prioritized its projects and started taking measures to implement an

Six months later, the staff from the s
upplier company returned to Company A to help
evaluate the results. They found that Company A had:

Made great improvements with very low investment
. They realized that one of
the best sources of technical information were the regulators themselves and
ined assistance and support from them. For example, government agencies
helped them find ways to minimize waste, since any dripping tap was a cost.

Acted to reduce water consumption and monitored its progress
. This action
required only a small investment
, which was quickly recovered in savings.

instance, Company A purchased hose guns, which significantly reduced water

It also purchased timer valves that reduced the amount of water used at
one time, so that buckets of water no longer overflowe
d. Inexpensive individual
water meters were also purchased from the water companies. Company A also
started reusing its water several times before releasing it into drains, as well as
detecting situations that did not require water use.

Involved its staf

in promoting their environmentally
friendly efforts. Employees
became motivated to participate in the program and submitted ideas such as
separating paper into two bins, one for waste and the other for recycled paper.

The recycled paper was turned into
scrap paper, resulting in cost savings. Waste
was also shredded and turned into packaging material.

Company A implemented
a reward program to recognize employees who submitted ideas to minimize the
company's negative environmental impacts.

Bought new eq

to eliminate an obsolete process of treating material in
tanks with strong chemical additives. The new equipment, which used water
additives, required investments and at the first the company had rejected the
possibility. However, Company A's

environment culture prompted further
consideration. The decision was made that the products used for the new process
were a lot cheaper in the long run, thus justifying the investment.

Identified hazardous components

in their products and started removin
g them.
For instance, platinum and palladium contacts were separated from the remaining
copper and steel before it was sent for refining. Company A also began notifying
the county that the hazardous material was leaving its site and being transported
to th
e public hazardous waste incinerator. The government agency issued the firm
a certificate that ensured clients and community that Company A conducts its
business in an environmental responsible manner.

Adopted a new purchasing policy

of encouraging suppl
iers to take back
containers of chemical substances for reuse. The company also planned to reduce
the size of their vehicle engines and reorganize work patterns to reduce mileage.
Those efforts would reduce CO2 in the atmosphere, creating an environmental

Decided to change its packaging
, requiring the cooperation of suppliers and
customers. The company recognized that shrink wrapping would increase the
capacity of a pallet by 40 percent and also save energy costs and transport

ided to review its arrangements

with waste contractors and scrap merchants
to negotiate better deals for their recycled waste. Company A also implemented
an extremely rigorous control system, fully documenting every movement onto or
off their site.


A's manager stated that the supplier company provided the advice and
experience Company A needed to feel confident of putting a system in practice that
would yield results and create a profit. In the manager's words, "Once you get started,
you'll be surpr
ised with your progress." The president of Company A says that the new
environmental system has become part of the company's culture. Environmental issues
are now considered in every decision involving capital expenditure and executives try to
find the bes
t environmental approach to take, given other constraints.

Process Optimization in Textile Dyeing

Company B, a textile hosiery processing industry in Ludhiana, India, bleaches and dyes
cotton hosiery fabric on a job
order basis. Major process steps include

bleaching, dyeing and finishing. The entire process is carried out using winches. After the
first three steps, fabric is rinsed to remove extracted impurities and residual chemicals.
After wet processing, the fabric is dried in a tubular steam h
ot air dryer. The company
process about 4,000 kg of fabric per day, employs 150 people and has an annual turnover
of about US$700,000.

Cleaner Production Assessment

Pressure from the Pollution Control Board to comply with environmental regulations was
catalyst for a Cleaner Production program. Other factors were a high fuel
consumption (compared to other industries) and a high redye rate.

Cleaner Production Solutions

A Cleaner Production (CP) assessment identified 34 options, of which 22 have been
mented, including:

Reduction of liquor to material ratio in winches from 10:1 to 8.5:1

Reduction of 15 percent in specific alkali consumption in scouring

Eliminating one washing step by providing five minutes drag
out time after each

Replacing th
e steam hot air dryer with direct fuel
fired hot air dryer. This means a
reduction of drying cost from Rs. 1,20 per kg fabric to Rs. 0.60 per kg

Optimizing boiler efficiency by controlling draft with an additionally installed
damper and fuel firing practic

Environment Benefits

Implementing 22 CP solutions resulted in the following environmental benefits:

Reduced water consumption by 25 percent

Reduced COD load by 20 percent

Reduced particulate emission from 300 mg/Nm to less than 50 mg/Nm, therefore
ng air pollution norms (150 mg/Nm) without any control equipment

Reduced redye/reprocessing rate from six to two percent, a 67 percent reduction
in redyeing/reprocessing

Financial Benefits

The company invested US$10,000 to implement 22 CP solutions, which
resulted in
annual savings of US$35,000 with a payback period of less than four months. Estimated
total investment and annual savings for all 34 solutions would be US$260,000 and
US$100,000 respectively.

Energy Saving in Soap Production

Company B located i
n Dar es Salam, Tanzania, is a private undertaking with 45
permanent staff members and 20 seasonal employees. It manufactures five tons of bar
laundry soap per hour.

The soap is made from fat through a saponification process utilizing caustic soda. After a

separating process the so
called "neat soap" is taken to a crusher, where it is mixed with
pigment, perfume and other additives. The soap is then transferred to an intermediate
tank from which it is fed into a vacuum flash cooling system. The cooled soap
is then
extruded in the form of bars, cut into size and packed in cartons.

Cleaner Production Assessment

The principal source of process energy is steam, which is generated from the combustion
of industrial diesel oil in the boiler furnace burners. Steam i
s used throughout the whole
process and for handling materials (unloading of fat from truck tankers, fat storage
heating). The Cleaner Production (CP) assessment revealed leakages of steam from some
of the valves and inefficient use of steam. The unloading

of fat delivered to the factory
resulted in spillage of 3,000 kg per annum. The spilled fat was absorbed by the soil.

Cleaner Production Solutions

In an effort to conserve steam energy and curb spillage of raw material, the project team
recommended the im
plementation of the following CP options:

Replace leaking steam valves and traps with certified products.

Reduce the time required for heating the fat storage tank from the initial six to
seven hours to three hours.

Incorporate the right amount of water du
ring saponification, minimizing steam
consumption during the cooling stage.

Recover the spilled, soiled fat at the material handling section by treatment with
steam, followed by separation.

Environmental Benefits

The boiler furnace consumption of industria
l diesel oil was reduced by 54 percent to only
30 liters per ton of laundry soap produced, saving 415,800 liters per year. This measure
also resulted in a considerable decrease in the emission CO
, SO

and NO

. The recovery
of spilled fat also made a sign
ificant improvement to the direct environment of the

Financial Benefits

The only option that needed some investment was the installation of steam valves, which
cost US$830. All steam saving measures together resulted in annual savings of
0. The payback time was only two days. Recovery of the spilled fat requires
virtually no energy input, creating a savings of US$2,400 per year.

Increased Raw Material Efficiency in Pulp and Paper Production

Company C in Zhejinang Province, Republic of Chin
a, produces 51,000 tons of writing
paper and cardboard annually and currently employs 5,000 people. About 18,000 tons of
pulp are prepared annually from wheatstraw. The major operations of the plant are
pulping, which includes straw preparation, batch mode

cooking, washing, screening,
hypochlorite bleaching, refining, stock preparing, black liquor extraction, alkali recovery
and paper making.

Cleaner Production Assessment

Company C is one of the major contributors of pollution in Zhejinang Province. It is a
a major consumer of energy and water. The pulping process, which contributed mostly to
the high consumption and pollution load, was selected as the focus of the assessment.

Cleaner Production Solutions

In the assessment, 38 Cleaner Production (CP) opti
ons were generated. 22 no

or low cost
options were selected for implementation along with four high cost options. Options
requiring a substantial investment were the introduction of a computer control system for
the operation of the cooking digestor, the
installation of an additional causticizer and the
repair of dust collectors and the caustic dregs washer. No

and low cost options included:

Process amendments, such as extending the temperature raising time during

Increasing the vacuum of the vacu
um washer

Changing the mesh size of the net of the washing process

The plant also decided to improve supervision of personnel and to introduce better
operating procedures.

Environmental Benefits

The CP options implemented resulted in a significant decrease

of the pollution load of
more than 900 tons of COD on an annual basis. At the same time, the pulp yield was
increased from 45 to 51 percent. The consumption of caustic soda is expected to decrease
by 230 tons per year through the installation of a compute
r control system. Furthermore,
significant water savings are being achieved.

Financial Benefits

The joint implementation of all selected no

and low cost options will result in annual
savings of US$85,000. The implementation of the medium and high cost opt
requiring an investment of US$55,000, will yield a total annual saving of US$161,000.
Payback periods range from six months to one year.

Water Savings in Sugar Refining

Company F operates two sugar refineries in Harare and Bulawayo, Zimbabwe. The
are plant was built in 1953 and its main equipment dates back to the same period. The
factory runs seven days a week, twenty
four hours a day and has a yearly production of
140,000 tons of refined sugar. The factory employs approximately 500 people.

The re
fineries receive raw sugar from sugar cane mills and process it into refined white
sugar. White sugar is produced for the local market and for regional export. This case
study follows the assessment in the Harare factory.

Cleaner Production Assessment

focus of the Cleaner Production (CP) assessment was on water conservation, as a
long drought had resulted in severe water shortage and rationing in Zimbabwe. The sugar
refinery was faced with high surcharges when the water consumption level exceeded the
located amount. The most significant sources of water loss included:

Approximately 42 m

of fresh water used daily to wash the bagasse originating from the
clarifier into the sewage system.

An overflow of 264 m

per day from an insufficient water storage c
apacity from
the cooling towers, due to the increase in the capacity of the evaporation tanks.

Use of 216 m

of fresh water to wash the charhouse (an older method for
decolorization using bone char).

Cleaner Production Solutions

The following CP solutions
have been implemented:

A water softener and additional piping were commissioned to recycle water as
'sweet water' in the melting pot at the start of process.

The bagasse generated at the clarifiers is now put through a press filter and used
for agricultura
l purposes, instead of being discharged into the sewage system. The
water is recycled as "sweet water" in the melting pot.

Water meters were installed to improve water management at units with high
water consumption. The option of re
directing the overflow

from the cooling
towers to the production process is under investigation.

Environmental Benefits

The implementation of the three options is projected to reduce the water consumption by
approximately 86,000 m

annually. Solid wastes to the municipal sewer
is projected to be
reduced by 120 tons per year.

Financial Benefits

The factory invested US$ 28,000 for the reduction of water consumption. With an
expected saving of US$ 24,000 per year on water charges, payback period will be 14
months, not considering a
ny possible surcharges for which the company may have been

Chapter 10: Resources

Adapted from content excerpted from the
American Express® OPEN Small Business

The resou
rce base and organizational structure of SMEs can impose certain limitations on
completing an EMS. In order to manage these constraints, SMEs should seek outside
assistance to reduce costs and enhance performance, and wherever possible, consider
e strategies.

Support Sources

Large Companies, Clients or Suppliers Acting as Mentors.

Large companies
with active environmental policies can be good sources of help in developing
meaningful approaches to good environmental management. It may also be in th
interest of SMEs to strengthen ties with major customers and suppliers.

Other SMEs.

Promote worker groups within SMEs to guarantee collaboration to
generate ideas for reducing environmental impact, defining and addressing
common issues, sharing know
w and experiences, preparing technical and
training material, using facilities jointly and collectively engaging consultants.
Industry associations can be a link between the company and other firms
interested in sharing their experience and expertise in EM
S implementation.

Expert and Local Technical Assistance.

Consultants can be helpful and save
time. However, if a company decides to hire consultants, it should limit
consulting costs. For example, a company may be able to join forces with other
small bus
inesses in the area to hire a consultant jointly. For more information on
consultants, see Considerations in Hiring Consultants in this chapter.

Extra Assistance.

Make effective use of interns or temporary employees to
perform potentially time
EMS development tasks such as collection
data, drafting and typing procedures. This approach allows in
house personnel to
focus on more complex EMS development tasks.


Considerations in Hiring Consultants

Assess the company's own in
house resour
ces first.

Ensure that the work objective is clear and understood by both staff and

Before hiring a consultant, obtain and check their references. Engage consultants
with experience with small businesses and in the company's specific industry.

Use consultants to obtain insights on method.

Consultants should work with company staff, since an EMS developed by isolated
consultants without staff input is not likely to work.

Information Sources

Multinational Companies

have strong in
house Environmen
tal Management
Systems (EMSs) that enable them to conduct supplier audits and also provide
EMS training programs to suppliers.

Environmental Regulatory Agencies

can provide assistance in developing the

Ask state and national agencies about educatio
n and outreach programs for
businesses developing an EMS.

Publications, brochures and on
line help related
to environmental issues and laws may also be available. In addition, most
environmental regulatory organizations maintain good web sites.


provide industry
specific environmental management issues.

Customers and Suppliers

are valuable sources of information and expertise.
These companies can provide advice and share experience and expertise in EMS

The Internet

s a wealth of information related to EMS implementation
available electronically via the Internet. There are many web sites about specific
environmental topics, such as water management, hazardous material and waste
management. These sites are resources fo
r locating technical assistance, learning
about regulations, finding consulting firms, elaborating training materials and
gathering information on industry
specific environmental management issues,
products and equipment.

Support Material

for implementing
an Environmental Management System (EMS) can
often be found at the following locations:

Governmental and non
governmental organizations

Universities and other research centers which support production and innovation

Industrial associations

Web sites and da
ta bases

Organizations and institutions related to environmental issues

Consultant firms (professional assistance)

Other small and medium
sized enterprises

Public libraries

Large companies which have already implemented an EMS or are already
certified by I
SO 14001, EMAS, or BS 7750.

Copyright © 1995
2007, American Express Company. All Rights Reserved.