1. Successful Practices
of Environmental Management Systems
in Small and Medium-Size Enterprises
A North American Perspective
Commission for Environmental Cooperation
3. CONTENTS
1. Introduction 2
2. Defining Small and Medium-Size Enterprises 4
and Environmental Management Systems
3. Are Environmental Management Systems Effective? 9
4. The Benefits and Common Characteristics of Successful 12
Environmental Management Systems
5. Drivers and Barriers to EMS Adoption by Small 15
and Medium-Size Enterprises
6. Technical Assistance and Outreach 18
7. Incentive Programs and Policies 24
8. Future Directions 27
Appendix A. Useful Web Sites 29
Appendix B. 10 Elements of an Environmental 30
Management System
References 31
4. 1. INTRODUCTION
his report examines the use of environmental 1. designed with a strong business case in mind
T management systems (EMSs) in small and
medium-size enterprises (SMEs) in Canada,
2. managerial support and commitment of
resources
Mexico and the United States. In doing so, it pro- 3. engaged employees
vides a North American perspective on success- 4. integrated into business
ful practices and some of the issues faced by 5. clearly defined objectives and targets
SMEs in developing and implementing these sys- 6. continual monitoring and measurement.
tems. It also offers some suggestions for contin-
ued cooperation between the governments of Not all EMSs, however, are effective in
Canada, Mexico and the United States on promot- improving environmental performance. Most
ing EMSs. SMEs face few incentives and many difficulties
Over the past decade, the three govern- in implementing environmental management
ments have promoted the use of EMSs to help systems. The owner of a business must believe
companies improve their environmental per- that an EMS will create real tangible value for
formance and move beyond compliance with the business. Yet most SMEs do not know what
the law. The Commission for Environmental an EMS is and, if they do, how it could benefit
Cooperation (CEC) has served as a forum in their business. Even if they are familiar with the
which the three governments could share their concept of an EMS, many smaller businesses
experiences, practices, and successes on the use lack the technical expertise and resources
of EMSs in North America. In June 2000, for needed to develop and implement one.
example, the CEC published Improving Envi- Although business needs may ultimately
ronmental Performance and Compliance: 10 determine whether an SME implements an EMS,
Elements of Effective Environmental Manage- government or private sector technical assistance
ment Systems, which described those elements and outreach efforts are often crucial to provid-
that the three governments agreed were impor- ing the conditions under which businesses—par-
tant to address in implementing EMSs (CEC ticularly small and micro-businesses—are likely to
2000). The CEC has also encouraged a North implement a successful EMS. Continued cooper-
American dialogue on the use of environmental ation among the governments of Canada, Mexico
management systems through its support of and the United States could help improve the
and participation in numerous workshops and delivery of sector-specific information and techni-
forums, including most recently those of the cal assistance and specific advice on EMS
North American Pollution Prevention Partner- methodologies to SMEs.
ship, Mexico’s Pollution Prevention Roundtable,
the Auditing Roundtable and the Canadian Organization of This Report
Environmental Auditing Association. The chapters that follow describe a North
In recent years, the private sector has devel- American perspective on the use of environ-
oped various types of EMSs for identifying and mental management systems in small and medi-
managing the impacts that commercial, industrial um-size enterprises. The definitions of an EMS
and service operations have on the environment. and a SME in Chapter 2 are followed by a closer
Although the use of EMSs is becoming more look in Chapter 3 at the effectiveness of envi-
common among larger companies, their use by ronmental management systems in improving
small and medium-size enterprises is less com- environmental performance. Chapters 4 and 5
mon. then look at the benefits and characteristics of a
A successful EMS can enhance efficiency successful EMS and the drivers and barriers to
and lower costs, reduce resource use and waste, EMS adoption by small and medium-size busi-
help to ensure compliance with regulatory nesses. Chapters 6 and 7 review the technical
requirements, encourage employee involvement assistance and outreach, and the incentive pro-
in environmental performance and improve rela- grams and policies in the three countries. Chap-
tions with customers. In examining a variety of ter 8 concludes by examining areas for future
experiences in North America, this report identi- cooperation by the three governments on EMS
fies six common characteristics of successful EMSs promotion in North America. The two appen-
adopted by small and medium-size enterprises: dices to the report provide general information
2 E N V I R O N M E N TA L M A N A G E M E N T S Y S T E M S
5. on environmental management systems.
Appendix A lists some useful web sites in addi-
tion to those found as reference to this text, and
Appendix B presents the CEC’s "10 Elements of
Effective Environmental Management Systems."
With the growing integration of the North
American economy under the North American
Free Trade Agreement (NAFTA), the CEC is in a
unique position to step back and examine the
development of EMS policies and programs in
all three countries. Such an examination can help
those promoting environmental management
systems in Canada, Mexico and the United
States to learn from the experiences of the other
countries and can help to inform and stimulate
discussion and critical comment among those
assisting small and medium-size enterprises with
environmental issues.
3 A NORTH AMERICAN PER SPECTIVE
6. 2. DEFINING SMALL AND MEDIUM-SIZE
ENTERPRISES AND ENVIRONMENTAL MANAGEMENT
SYSTEMS
mall and medium-size enterprises in North percent of their gross domestic product (GDP)
S America vary widely in their impacts on the
environment. An environmental management
and over half of their private sector employment.
In the manufacturing sector, SMEs generate 55
system offers the methodology a company percent of manufacturing employment in Canada,
needs to identify and implement ways in which 66 percent in Mexico and 41 percent in the
to improve the environment both inside and out- United States (OECD 2002).
side a plant or business, from mere good house- Although most SMEs serve local markets,
keeping steps to strategies to prevent pollution. they are increasingly operating as part of a glob-
This chapter examines the various defini- al marketplace, purchasing products produced
tions of small and medium-size enterprises and abroad, supplying multinational companies and
some of the different types of environmental selling directly to overseas buyers. In North
Small and Medium-Size Enterprises? management systems in the three countries. America, SMEs play an important role in the
The threshold of 500 employees guides the Although the definition of a small and medium- market-driven coordination of production across
classification of small and medium-size enter- size enterprise varies from country to country, it the US-Mexico and US-Canada borders, espe-
prises (SMEs) in Canada, Mexico and the
United States. Environment Canada typically is useful to examine SMEs as a general category. cially in sectors such as automobile, telecommu-
classifies enterprises with less than C$50 mil - These kinds of enterprises generally have fewer nications equipment, computer, electronic
lion in annual revenues that are not wholly resources to address their environmental impacts products and textiles and apparel.
owned subsidiaries as follows: less than 5
employees, microenterprise; 5–49 employ- and are thought to be less likely to implement SMEs face widely differing environmental
ees, small enterprise; 50–499 employees, EMSs than larger companies. They also do not, issues based on the economic sector, employee
medium-size enterprise (Environment by most definitions, have a parent company on base and jurisdiction in which they operate. The
Canada 2003).
The medium-size category is not com -
which to rely for assistance. Despite these limi- requirements, demands, pressures and issues
monly used in the United States, and the US tations, SMEs can use the basic methods of they face will more often resemble those faced
Environmental Protection Agency considers a implementing an EMS as described in this chap- by companies in their own economic sector,
small business for research grant programs to
ter to integrate environmental planning into their regardless of size, than those in other sectors.
be a for-profit organization with no more than
500 employees that is not dominant in the everyday business practices. In addition, within the SME category differ-
field of operation. For Performance Track ences often exist in the technical capabilities of
Purposes (see Chapter 7), a small business is What are Small and Medium-Size small and medium-size businesses, with medi-
defined as a facility with fewer than 50 employ-
ees. These facilities may be part of larger Enterprises? um-size business much more likely to have
organizations. The US Small Business SMEs are found in the largest and most dynamic engineering expertise than small enterprises,
Administration has devised sector-specific defi- sectors of the North American economy, rang- especially related to energy efficiency and con-
nitions with both employee and revenue limits.
See <http://es.epa.gov/ncer/sbir/ ing from those that are pollution-intensive and servation.
2005SBIRfactsheet.pdf> and resource-intensive, such as manufacturing and SMEs, even those in the retail sector, can
<http://www.sba.gov/size/>. natural resource extraction, to those that are have significant impacts on the environment,
In Mexico, Profepa follows a classification
(by number of employees) established by the
more environmentally benign, such as retail. They including those from nonregulated activities
Secretary of Economy in 1999: often face unique environmental challenges that such as resource consumption, packaging and
Industrial CommercialService are related to their size and their place in the methods of hazardous and nonhazardous waste
Micro 0–30 0–5 0–20 economy. (See Table 2.1) disposal. According to Environment Canada
Small 31–100 6–20 21–50 The economic importance of SMEs in (2003), of the 2 million Canadian SMEs, the
Medium 101–500 21–100 51–100 North America is significant. Over 98 percent of 400,000 most pollution-intensive are in the agri-
businesses in Canada, Mexico and the United culture, primary and manufacturing sectors.1 A
Mexico’s National Institute of Statistics,
Geography and Informatics Instituto Nacional States are small and medium-size enterprises.
de Estadística Geografía e Informática— SMEs are found in all the economic sectors of 1. The primary sector includes activities such as fisheries, mining,
INEGI) has more specific classifications. the three countries, producing approximately 40 forestry and oil and gas extraction.
Table 2.1 Distribution of Employment in Manufacturing by Size Class
Country 0–9 10–49 50–99 100–499 500+ Total
Canada 4.1 17.8 8.8 24.2 45.0 100
Mexico 18.9 12.0 7.5 27.6 34.0 100
United States 3.6 4.1 16.0 17.4 58.9 100
Source: OECD 2002.
4 E N V I R O N M E N TA L M A N A G E M E N T S Y S T E M S
7. study prepared for the Organization for Economic with its "Pollution Prevention Pays" program,
Co-operation and Development (OECD) found and Dow, with its "Waste Reduction Always
that SMEs in the United States are significant Pays" (WRAP) program. In the 1980s, EMS pro-
contributors of pollution in three branches of grams largely focused on due diligence and
manufacturing: chemicals, primary metals and compliance with laws and regulations as well as
building materials (e.g., stone, clay and glass). ways to cut costs in disposing of wastes and
The largest impacts from these SMEs were on treating effluents. Also in the 1980s, trade asso-
biological oxygen demand (BOD) in water and ciations began to develop codes of environ-
suspended particulates in air, followed by the mental practices, which approximated the
release of toxic chemicals (OECD 2002). But definitions of environmental management sys-
those statistics for the United States were devel- tems (Pacific Institute for Studies in Develop-
oped in a study done specifically for OECD; ment, Environment, and Security 2000).
generally, "comprehensive pollution or resource
consumption statistics for SMEs do not exist, EMS Models
making it difficult to determine their contribution Today, EMSs can range in complexity from sim-
Total Quality Management to environmental degradation" (OECD 2002). ple reminders of regulatory deadlines at a single
Most systematic approaches to addressing facility to an elaborate, Internet-based, enter-
performance issues derive from the work of What Is an Environmental Management prise-wide performance management system
W. Edward Deming, the US statistician who System? that tracks regulatory requirements, assigns
is credited with dramatically improving the
performance of Japanese industry after World An environmental management system is a tool tasks, controls documentation and records, pro-
War II with a system that has come to be used by a company to identify measure and vides training, and shares information across mul-
known as Total Quality Management (TQM). manage the effects of its activities on the envi- tiple operations and facilities around the world.
Deming also popularized the plan–do–
check–act cycle that is at the root of all such
ronment. An EMS sets out the company’s goals EMSs are most effective when they are
systems: identify and analyze the problem for environmental performance and a plan for part of normal business activities rather than
(plan), develop and implement solutions (do), achieving those goals. Ideally, company man- treated as separate programs or initiatives.
evaluate and measure the results (check), and
agers will set goals in areas such as compliance Although businesses typically have many ele-
fix the problems identified and incorporate
the lessons learned into a feedback loop that with environmental laws, minimization of risks ments of an EMS already in place, the EMS pro-
begins the process anew (act). The feedback to human health and the environment, use of vides a systematic way to integrate those efforts
loop involves all personnel and elements of an natural resources, and prevention and reduction and direct them toward company-established
organization and runs counter to traditional
top-down "management by objective" of pollution. goals. The significant range and variations of
approaches. Environmental management sys- The evolution of EMSs in North America EMSs can be attributed to the differences
tems turn the TQM process to a specific con- can be traced to the 1970s and the pollution among organizations in size, activities, impacts,
cern for reducing environmental impacts.
prevention programs of companies such as 3M, regulatory requirements, corporate culture and
Source: Welch 1998.
Figure 2.1 BC Hydro’s Environmental Management System
Environmental
Responsibility Policy
Management Review
Planning
• Identifying aspects, impacts
and operational controls
EMS
Checking and Corrective Action • Indentifying legal and other
• Monitoring and measuring requirements
• Process improvement • Meeting objectives, targets
• Records and environmental programs
• EMS compliance audits
Implementing and Operation
• Defining training needs
• Implementing training
• Internal communication
and reporting
• External communication Source: Industry Canada,
• Document control <http://www.strategis.ic.gc.ca/epic/internet/
• Contractors and suppliers incsr-rse.nsf/en/rs00122e.html>.
5 A NOR TH AMERICAN PER SPECTIVE
8. policy commitments. Figure 2.1 depicts the certification by accredited certificate bodies.2
EMS of BC (British Columbia) Hydro and is rep- The European Office of Crafts, Trades and
resentative of the structure of many EMSs. Small and Medium-Sized Enterprises for Stan-
dardisation (Le Bureau Européen de l’Artisant,
The International Organization for et des Petites et Moyennes Enterprises pour la
Standardization (ISO) 14001 Normalisation), better known by its acronym
The most widely recognized model for an EMS NORMAPME, has formally asked the ISO to
is the International Organization for Standard- "explore alternative ways to use the environ-
ization (ISO) 14001 standard. This standard, mental management system standard ISO 14001
which is applicable to organizations of all types that are in line with their members’ limitations."
and sizes, is based on five components: NORMAPME seeks changes that might include
allowing an incremental implementation of ISO
1. An environmental policy that commits the 14001 or allowing organizations to be certified
organization to "prevention of pollution," "con- in batches, sharing procedures and administra-
tinual improvement" and compliance with "rele- tive costs. The ongoing revisions of ISO 14004
vant environmental legislation and regulations." are intended to simplify EMS requirements for
2. Planning to implement the environmental SMEs in order to facilitate implementation. ISO,
policy, which entails identifying all of an organi- through its Sub-Committee 1 of Technical Com-
zation’s interactions (activities, products or serv- mittee 207, has formed an ad hoc group to study
ices) with the environment (its "environmental EMS penetration among small businesses, and a
aspects") and designating the "significant" report is expected in September 2005.3
aspects and setting quantifiable objectives and
targets for addressing those significant aspects. The Eco-Management and Audit Scheme
3. Implementation and operation, which Many European countries require large manufac-
requires an organization to ensure the availabili- turing facilities to implement the Eco-Management
ISO 14001 Trends in North America ty of resources, define roles and responsibilities, and Audit Scheme (EMAS). The components of
As of December 2003, the breakdown of develop documented procedures, emergency EMAS are similar to those of ISO 14001. However,
North American certifications for ISO 14001 preparedness plans and ensure employee com- EMAS has two significant additions: a baseline
was Canada, 1,274; Mexico, 406; and the
United States, 3,553 By contrast, in 1998 the petency, training and awareness. environmental assessment and a public environ-
breakdown was Canada, 104; Mexico, 39; 4. Checking and corrective action to measure mental performance report. Many companies
and the United States 291. See and track the performance of the system against outside Europe have also chosen to implement
<http://www.iso.org/iso/en/iso9000-
14000/pdf/survey2003.pdf>. No specific
its own goals and to evaluate compliance with the EMAS system or variations.
numbers exist for SMEs, which are more the relevant laws and regulations. The organi-
likely to use third-party registrars and zation must also identify, investigate and correct The CEC’s "10 Elements of Effective Environ-
therefore are less likely to be reported any nonconformities. The organization must mental Management Systems"
in the ISO system.
ensure that internal audits are conducted. In June 2000, the Commission for Environmen-
5. Review of the EMS by top management "to tal Cooperation published the "10 Elements of
ensure its continuing suitability, adequacy, and Effective Environmental Management Systems"
effectiveness." (CEC 2000). The "10 elements" were negotiated
by Canada, Mexico and the United States just
The ISO standard focuses on conformance after the ISO 14001 standards were published
with established policies, plans and procedures, and served as the first general policy statement
but it does not specify requirements for environ- by the three governments on what they
mental performance beyond compliance with the believed were important features of an EMS.
relevant legislation. Organizations are, however, The "10 elements" are generic in nature and not
free to set goals that exceed compliance specifically geared toward small and medium-
requirements. size enterprises. Notably, they place greater
Companies implementing ISO 14001 may emphasis on compliance with environmental
choose to have their EMS certified. They can seek regulations than the ISO 14001 standard. Like
third party certification from either accredited the ISO standard, the "10 elements" state that a
certificate bodies (those recognized by a national company’s environmental policy should include
accreditation body) or no accredited bodies. Most a provision for compliance with environmental
firms seeking certification employ accredited requirements. But the "10 elements" go beyond
bodies; these may be perceived on the market as the ISO in stating that an EMS should establish
having greater credibility, although a firm that
implements ISO 14001 solely for internal man-
2. For more on ISO certification, see <http://www. iso.org/iso/en/
agement purposes (without expectation of ben- iso9000-14000/basics/general/ basics_5.html>.
efits from regulators, customers or public 3. See <http://www.iso.org/iso/en/CatalogueDetailPage.
perception) may choose not to seek third party CatalogueDetail?CSNUMBER=31808>.
6 E N V I R O N M E N TA L M A N A G E M E N T S Y S T E M S
9. objectives and targets for achieving and main- ples tend to be those tailored to a specific
taining compliance with environmental require- industry and designed with input from the
ments and a commitment to continuous industry itself. For example, the Texas Commis-
improvement in environmental performance sion on Environmental Quality (TCEQ) developed
(see Appendix B for the CEC’s "10 elements"). a sample EMS for small businesses in the metal
finishing industry. (See Table 2.2) The EMS for
A Sample EMS from the Metal Finishing the fictitious company, Papa Plating, covers all
Industry on-site operations, including metal finishing and
Various sample EMSs are available for small and processing activities, groundskeeping, offices
medium-size enterprises. The most useful sam- and waste disposal.
Table 2.2 Selected Aspects of Sample EMS Addressing Water Usage
Form 7: Environmental Management Action Plans
Significant Environmental Aspects Water Use
Goal Reduce the amount of water purchased by 50%
Action Plan Analyze how water is used and what can be done to
minimize water use
Consider different potential rinsing methods
Review Cycle Willie Scott will review every 6 months
Form 8: EMS Work Instructions
Significant Environmental Associated Job Work Instructions
Aspects Functions Needed Responsible Person
Yes – employees should
Parts Rinsing monitor the drip time over Plating supervisor
the various rinse tanks and
withdraw the parts at the
proper speed
Water Use
Yes – employees should
rack parts to minimize
Parts Racking solution dripping on other Plating supervisor
parts
Form 9: Alternatives Identification — Significant Environmental Aspect: Water Use
Activity Current Practice Potential Alternatives
Rinsing methods Dip rinsing Try spray rinses in the various processes to try
to improve rinsing performance and decrease
water consumption
Water flow Rinse water is being Research the use of conductivity meters
flowed at a high rate and/or flow restrictions
during production
Treatment Currently chemically treated Consider the use of reverse osmosis and/or ion
and discharged to waste- exchange after the initial treatment and reuse
water treatment facilities the treated effluent back in our process
Rinse tank None Consider the use of air agitation in the rinse
tanks to improve agitation the rinsing process
Source: TCEQ
7 A NOR TH AMERICAN PER SPECTIVE
10. Papa Plating’s EMS contains elements of
ISO 14001 and the CEC’s "10 elements." The
EMS provides a sample action plan on water
use, energy use, sludge generation and dispos-
al, metal use and use of natural resources,
organic emissions from a degreaser and human
exposure to toxic materials and chromium emis-
sions. A look at the selected portions of an EMS
regarding water aspects of the Papa Platings
EMS usefully illustrates some of the specific ele-
ments of an EMS.
Papa Plating’s system is just one example
of how to create an EMS. An environmental
management system can be designed to
address the needs of any size organization.
Standards groups, trade associations and gov-
ernments have all designed different types of
environmental management systems and pro-
grams to help businesses improve environmen-
tal performance by integrating environmental
planning into everyday business processes.
8 E N V I R O N M E N TA L M A N A G E M E N T S Y S T E M S
11. 3.ARE ENVIRONMENTAL MANAGEMENT SYSTEMS
EFFECTIVE?
ecent studies indicate that not all environ- and assistance from their parent organizations,
R mental management systems lead to
improved environmental or business perform-
but they occur in privately held and govern-
ment facilities as well." The NDEMS study is
ance. However, several projects and numerous inconclusive on the financial benefits of an
case studies of successful EMS practices in EMS, but notes that benefits were "moderately
small and medium-size enterprises support the impressive" for the facilities that realized them.
proposition that an effectively designed EMS Thirty-two facilities reported quantified mone-
can, under the right circumstances, significantly tary benefits from EMS adoption; the average
help a company improve its environmental per- net benefit for those reporting a benefit through
formance and bottom line. Because not all the first three years was $90,320. (NDEMS
EMSs produce positive benefits, it is important 2003)
to understand the potential benefits of an EMS, One study completed by the University of
the common characteristics of successful EMSs, Sussex in July 2000 compared EMS use in EMAS
the drivers and barriers to EMS implementation, and ISO systems in 280 European companies at
and the programs available to help SMEs 430 production sites and found no statistically
improve their performance. These subjects are significant relationship between the adoption of
covered in the chapters that follow. a formal EMS and improved environmental per-
formance. The companies included 9 computer
Empirical Studies of EMSs companies, 58 electric power generators, 26 fer-
Empirical studies of the performance of EMSs tilizer manufacturers, 90 pulp and paper produc-
have only recently begun to emerge. One of the ers, 46 printers and 45 textile finishers.4
only studies in North America was conducted in Another study of electronic firms observed
An effectively the United States by the University of North that firms that adopted ISO 14001 were able to
Carolina and the Environmental Law Institute catch up to industry best practices, especially if
designed EMS can, between 1997 and 2002. The National Database they produced significant toxic emissions
on Environmental Management Systems (Russo 2000). A study conducted in the auto-
under the right (NDEMS) study examined environmental per- motive supply sector before Ford and General
circumstances, formance data at 83 facilities over a five-year
period. Ultimately, 30 facilities completed all five
Motors required their suppliers to be ISO-certi-
fied found minimal reductions after ISO 14001
significantly help a years of the study. The participating facilities adoption. In terms of toxic releases and compli-
ranged from large, publicly traded major manu- ance with regulatory requirements, environ-
company to improve facturers and electric utilities to small businesses mental performance was about the same in
such as auto parts suppliers and electroplaters facilities that had adopted EMSs under ISO
its environmental and government organizations, including military 14001 and those that had not (Matthews 2001).
bases and municipal water treatment plants.
performance and Approximately 70 percent of the organizations Projects and Case Studies
participating in the NDEMS study were part of a Although little empirical work exists on the
bottom line larger business or government organization. impacts of EMS adoption, the literature and
The final report of the study concluded case studies contain valuable information on
that evidence from the pilot facilities "suggests how companies have used EMSs to improve
that the introduction of an EMS can be expect- environmental and business performance.
ed to be at least somewhat beneficial to the The US Environmental Protection
environmental performance of most facilities, as Agency’s web site includes a case study index
well as to their operating and management effi- with links to EMS success stories, several of
ciencies, and in some cases to their regulatory them on SMEs.5 The EPA case studies generally
compliance patterns. These results are more include an introduction to the facility, an
likely for facilities that are subsidiaries of pub- overview of the planning and implementation of
licly traded corporations, owing to their greater the EMS, a list of the benefits achieved, and a
access to management capabilities, resources, description of the lessons learned. One case
study, for example, explains how the Mott’s
4. See <http://www.environmental-performance.org/analysis/index.php>. Aspers plant, an apple juice and apple sauce
5. See <http://www.epa.gov/ems/studies/index.htm>. plant with 378 full-time employees in Pennsyl-
9 A NORTH AMERICAN PER SPECTIVE
12. vania, implemented a EMS that resulted in the In this project, 11 large companies in Guadala-
production of less solid waste, reduced water jara, Mexico, signed a voluntary agreement with
usage, increased recycling, savings on energy Mexico’s Ministry of Environment, Natural
usage and wastewater treatment costs.6 Resources and Fisheries (Secretaría de Medio
The Manual for Implementing EMS in Ambiente, Recursos Naturales y Pesca—Semar-
SME, issued by the International Finance Cor- nap), now known as the Ministry of Environ-
poration (IFC), also includes 15 case studies ment and Natural Resources (Secretaría de
from facilities throughout the world, including Medio Ambiente y Recursos Naturales—Semar-
the United States, on the actual benefits real- nat), to mentor small suppliers in implementing
ized by small and medium-size businesses that EMSs. Within three months of completing the
have implemented EMSs (IFC 2004). Some formal EMS training, over 80 percent of the 20
summaries of selected case studies from the IFC participating companies in the GEMP study had
manual appear in Table 3.1. reduced their environmental releases, nearly 70
In Mexico, several projects have been percent had improved their work environment,
undertaken to provide SMEs with technical and over 50 percent had improved their eco-
assistance in implementing environmental man- nomic performance.
agement systems. The Guadalajara Environ- Slightly less than 50 percent reported
mental Management Pilot (GEMP), financed by improvements in waste handling, materials and
the World Bank, studied the effects of EMS use energy efficiency, and compliance. The study
in small and medium-size enterprises in Mexico. concludes that "gains from good housekeeping
are potentially very large in the case of SMEs,
6. See <http://www.epa.gov/ems/studies/mott.htm>. and … an EMS provides a means to capture
Table 3.1 Selected EMS in SME Case Studies, Worldwide
Company Environmental Benefit Cost Savings
Leff-Marvins Cleaners Inc. Replaced its old equipment with new system to The company realized a net savings of
recycle PERC (perchloroethylene). Eliminated US$1,400 per month with the new system.
most VOC (volatile organic compound) emis -
sions and also reduced purchase of PERC from
200 gallons per month to 40 gallons per month.
Reduced hazardous waste stream from over
1,900 gallons of spent PERC per year to just 35
gallons of still residues per month.
Company A Introduced more efficient ways of handling Waste elimination bills were cut by 55 percent.
cardboard. Reduced its waste by 577 tons in Saved staff time.
the first year.
Mounstevens Ltd., a manufactur- Increased staff awareness and introduced care- Expected benefits include cutting waste bills in
ing and retail baker ful separation of waste. half and saving US$8,800 and 26 tons of waste.
Company B Instituted a facility-wide municipal waste recy- Reduced disposal costs and gaenerated enough
cling program, including metal, cardboard, revenue from marketing the recyclables to fund
paper, wood, plastic and glass. More than 50 the program’s operating expenses, including wages
percent of the municipal waste generated by and benefits, equipment operation and mainte -
the company is now recycled. nance, utility costs and program improvements.
Jamestown Paint Company Reduced its use of toluol by 95 percent and Information not available.
xylol by 74 percent by developing water-based
products to replace solvent-based coatings.
A manufacturer of power steering Installed a green sand recycling system in its Reduction in the purchase of sand from 4 mil-
gears, engine timing devices and foundry that puts recovered sand directly back lion pounds of sand per year to only 80,000
power transmission boxes into the processing lines, recovering about 95 pounds per year, saving on sand purchase and
percent of silica sand. disposal costs.
10 ENVIRONMENTAL M ANAGEMENT SYSTE MS
13. these gains very quickly." The project’s prelimi-
nary findings indicate the following:
s The ISO 14001 EMS model can be applied by
SMEs without any modifications, with the
exception of documentation.
s Although the ISO 14001 EMS model is appro-
priate for SMEs, most SMEs require substantial
implementation support, particularly in the
areas of simplified formats, discrete mile-
stones, management systems thinking and
Within three months staff assistance.
of completing the s The business culture of a firm is probably a
more important factor than size in determin-
formal EMS training, ing whether it can implement an EMS (World
Bank 1998).
over 80 percent of
Because the GEMP study was undertaken in the
the 20 participating early stages of EMS implementation, the longer-
term economic and environmental affects of
companies in the EMS implementation have not been analyzed.
In another project, Proyecto Administación
GEMP study had Ambiental Monterrey (PAAM), undertaken in
reduced their Monterrey, Nuevo Leon, large companies and
the Multilateral Investment Fund of the Inter-
environmental American Development Bank (IADB) supported
an effort by the Instituto Protection Ambiental
releases, nearly 70 (IPA), a nongovernmental association of busi-
nesses in Monterrey, to train 19 SMEs in the use
percent had improved and application of a modified environmental
management system based on the ISO 14001
their work environ- model. One of the project objectives was to
determine whether EMSs were a useful tool in
ment, and over 50 improving SME environmental performance.
Four companies could to point to specific envi-
percent had ronmental and economic benefits of participating
in the project. The project’s report noted that the
improved their eco- vast majority of the "root causes" of significant
environmental problems identified by the firms
nomic performance. could to be addressed through changes in man-
agement practices such as improved mainte-
nance, improved procedures and better training.
Relatively few of the solutions, according to the
report, required significant capital expenditures
(Lexington Group 2002).
These studies and projects point the way
to understanding the potential benefits of an
EMS, while serving as a reminder that many
obstacles and barriers to effective EMS imple-
mentation exist.
11 A NORTH AM ERIC AN PERSPE CTIVE
14. 4. THE BENEFITS AND COMMON CHARACTERISTICS
OF SUCCESSFUL ENVIRONMENTAL MANAGEMENT
SYSTEMS
esigning and implementing an EMS can longer generating hazardous waste (IFC 2004).
D have tangible benefits for business enter-
prises. A system can help a company to
In another example, during the development of
its EMS a company in Mexico, Químicos y
enhance efficiency and minimize resource use Papeles del Norte, identified the use of exces-
and waste, thereby reducing costs, help to sive rinse water as a significant environmental
Lower Insurance Costs ensure compliance with regulatory require- aspect of its operations: the short production
The most reliable financial quantification of
the benefits of an environmental manage -
ments, encourage employee involvement and runs of incompatible products required the
ment system is often lower insurance costs; improve relations with customers. Despite vari- equipment to be rinsed between products. The
companies that minimize risks may receive ation in the sophistication, scope and achieve- company implemented a more systematic pro-
better insurance rates. The current case stud - ments of environmental management systems, duction programming to eliminate product
ies, however, provide only a few examples of
small and medium-size enterprises that real- successful EMSs share common characteristics changeovers and increased product storage
ized this benefit. In one example, DESC, a that are directly related to the benefits of an capacity. The results were more efficient utiliza-
holding corporation in Mexico that owns sev - EMS. The benefits and the characteristics of tion of product and storage space, water savings,
eral companies from different sectors, includ-
ing the chemical sector, chose to expand its successful EMSs are described in this chapter. reduced product waste and improved labor uti-
company-wide EMS to include outsourced lization (Lexington Group 2002).
carriers. As part of this effort, suppliers, cus- The Benefits of Environmental Reduced liability is another financial criterion
tomers, carriers, terminals and all who were
in the supply chain were evaluated. During Management Systems that can be used to measure the success of an
the first two years, the main focus was the Various books, articles and studies have identi- EMS. A court or the government may view a
carriers, who were audited under a specific fied the benefits an environmental management company with an EMS in place more favorably
risk reduction program. By developing tools
to evaluate the risks along its transportation
system can have for a company. In this section, when determining sanctions. For example, in
routes, DESC was able to achieve a substan- these benefits are categorized into five main Nova Scotia a judge dismissed a case against a
tial reduction in insurance fees. In turn, the areas that are most relevant to SMEs. pulp and paper mill for a small oil spill because
carriers, once they implemented these prac-
the company had an EMS in place that addressed
tices across their operations, were able to
negotiate a reduction in their own insurance. Enhanced Efficiency and Lower Costs spill issues. The judge cited the company’s due
Accidental index was reduced from six acci - EMS manuals and case studies point most fre- diligence, stating "the supervisor who found the
dents in 2001 to zero in 2004. Part of the quently to the financial benefits of implementing leak . . . knew the equipment, what to do to
evaluation tools used came from the
Responsible Care System of Mexico’s an environmental management system. Cost sav- stop the leak and did so immediately. . . . He had
National Association of the Chemical Industry ings are often linked with consuming fewer been instructed on what to do in the event of
(Asociación Nacional de la Industria resources and producing less waste, but savings any oil spill and he did that." R. v. Stora Forest
Química—ANIQ)
can also accrue from operational efficiencies, a Industries Ltd., [1993] N.S.J. No. 330 (N.S. Prov.
Source: Margarita Ferat Toscano, corporate environ- higher level of management efficiency, reduced Ct. Jun 23, 1993) Chapter 7 describes how gov-
mental manager, DESC, SA de CV, e-mail message
to Ignacio González, CEC, 4 october 2004.
liabilities and shorter permitting times because of ernment policies encouraging EMS usage may
better relations with regulators and communities. also affect penalty calculations.
Operational efficiency usually involves
replacing or renovating equipment and facilities, Reductions in Resource Use, Waste and
as well as improving the production process Emissions
design and paying closer attention to all inputs Many SMEs rate the success of their EMSs by
and outputs. Such changes can reduce inputs monitoring the resources used and the waste
(energy, water, etc.) or make operations more minimized, both of which are closely related to
efficient, so that production is higher, faster or cost savings. Implementing an EMS allows a
cheaper than before. Costs are compared pre- company to identify opportunities for improve-
and post-EMS implementation. ment and to plan expenses. Key performance
Even small changes in operational efficiency indicators include: the volume of raw materials,
can produce significant results. During its EMS water and energy consumption, recycling rate,
identification process, one company highlighted hazardous and nonhazardous waste generation
in the IFC case studies (Figure 3.1) noticed that and the number and volume of releases. Organi-
one of its large machines had a serious oil leak. zations use self-generated records, bills or data
The leak was quickly repaired with a $5 gasket. from various utilities to measure consumption
This easy, inexpensive action cut the amount of and waste pre- and post-EMS implementation.
oil consumed by the company by half, resulting Both large corporations and small and
in significant cost savings. In addition, the local medium-size enterprises use EMSs to reduce
municipal authority reclassified the plant as no resource and energy consumption, as well as
12 E N V I R O N M E N TA L M A N A G E M E N T S Y S T E M S
15. the volume and toxicity of waste generation. the United States, which was cited in the Nation-
Fourteen of 15 International Finance Corpora- al Database on Environmental Management Sys-
tion case studies claim reduced waste, con- tems study, designed its EMS without employee
sumption or toxicity as companies' main goals in involvement, but then engaged employees in a
EMS design and implementation, as well as the series of classes and meetings to introduce and
primary criteria for evaluating EMS usefulness. reinforce EMS concepts. It also trained a dozen
Elsewhere, in a survey of 580 manufacturing employees from the company to act as internal
Fourteen of 15 plants with more than 50 employees, Florida auditors. By contrast, another company cited in
and Davison (2001) found that facilities with the NDEMS study, a 350-person manufacturing
International Finance EMSs resoundingly pointed to recycling and plant, selected a wide range of employees, from
reductions in air emissions and solid waste and managers to engineers to line operators, to
Corporation case electricity use as evidence of facility-level make up the team responsible for creating the
improvement. EMS. The company considered employee
studies claim reduced engagement in the design process as important
waste, consumption Regulatory Compliance
Another frequent indicator of a successful EMS
as engagement in implementation.
or toxicity as com- is achieving the goal of regulatory compliance. Improved Relations with Customers
The criteria an organization selects to measure An EMS can improve relations with customers.
panies’ main goals improvement can vary widely and depends on For an SME, improved relations usually means
the company’s compliance history and regulato- larger purchasers in a dominant market position,
in EMS design and ry burden. Management can use an EMS to such as Ford and GM, which require their sup-
monitor the legal requirements and thereby plan pliers to be ISO 14001-certified. Smaller compa-
implementation, as expenses associated with permitting, reporting nies, however, may also find that an EMS means
and monitoring to ensure compliance with the wider appeal in a more local market. For exam-
well as the primary law. Ideally reducing the frequency and severity ple, Framboisière de l'Estrie, a berry farm in
of violations and the associated costs. Quebec, was one of the first two farms with ISO
criteria for evaluat- An EMS can also help a company to pre- 14001 certification in North America (see side-
pare for a more stringent application of environ- bar). It markets its environmental improvements
ing EMS usefulness. mental regulations by the government. For and the positive economic benefits it has reaped
example, the IFC case studies include the from ISO certification.
example of a manufacturer of office furniture
that eliminated methyl chloroform from its The Benefits and Common Characteristics
cleaning and fastening processes and reduced of Successful Environmental Management
the volume of emissions of volatile organic The success of an organization’s EMS can be
compounds (VOCs) by converting to a powder- evaluated by monitoring the organization’s
based coating system. These pollution preven- progress toward meeting its environment-relat-
tion alternatives saved the company more than ed objectives and targets. Understanding the
$1.1 million a year and gave the company a common characteristics of a successful EMS will
return on its $1 million investment in less than help to ensure that the conditions needed to
one year. This effort helped the company to support successful EMS design and implementa-
comply more easily with increasingly stringent tion are present.
environmental regulations and eliminated incin-
eration fees for solid and liquid hazardous Designed with a Strong Business Case in Mind.
wastes (IFC 2004). A successful EMS is developed with a strong
business case in mind. Its purpose is to improve
Employee Involvement the value of the company through risk reduc-
Many companies recognize that the success of tion, revenue enhancement and cost reduction.
an EMS depends on the participation of the full
spectrum of employees. Indeed, employee Supported by Management and Commitment of
engagement is at the heart of the Total Quality Resources. Unless the owner and upper man-
Management (TQM) process on which EMS agement are committed to and supportive of the
principles depend. Different types of employees EMS, it is extremely difficult to obtain the
have different insights into environmental per- resources and cooperation needed to success-
formance and suggestions for improvements. fully develop and implement an effective sys-
Proper implementation of an EMS requires tem. The environmental policy, as endorsed and
employee involvement and, if successful, cre- supported by management, defines the strate-
ates as a benefit a sense of responsibility and gy of the organization and specifies the scope
accomplishment among the employees. and commitments of the EMS to employees,
A 90-person metal finishing company in customers and those outside the company,
13 A NORTH AMERIC AN PERSPE CTIVE
16. such as local agencies, investors and communi- of the EMS. A key element of any management
ty groups. system is the opportunity it provides for learning
from experience. Given the size, resources, and
Engaged Employees. When employees at all variety of structures, as well as the obstacles
levels of an organization are engaged in an faced by small and medium-size enterprises in
EMS, it is more likely to succeed. Under a well- implementing environmental management sys-
Improving the Value of the Raspberry designed EMS supported by management, indi- tems, it is important that those systems be flexi-
Business vidual employees understand their roles and ble. Whenever possible, the goals and
Situated at Johnville, near Lennoxville, responsibilities, receive adequate training and complexity of an EMS should be set by the com-
Quebec, the Framboisière de l’Estrie stretches information, and are aware of the potential envi- pany itself. Those goals will necessarily be limit-
over 11 hectares. Each year the farm grows
and sells 43,000 kilograms of fruit and mar- ronmental impacts of their jobs. Typically, when ed by financial and economic considerations,
kets associated products such as syrup. As a employees are engaged in such a program they including the profitability requirements of the
result of going through the ISO process, the enjoy a sense of ownership and possess the organization.
farm did away with all pesticide use and
replaced fertilizers with compost, maintained
motivation to make a positive contribution to
water consumption while increasing produc- the success of the program. * * *
tion surface by 50 percent and reduced the
cardboard content of its boxes by 50 percent,
Integrated into Business. The most successful With these potential benefits, why aren’t more
which reduced its purchase, transportation
and storage costs. Overall, its production EMSs are not stand-alone projects or initiatives; SMEs designing and implementing successful
costs decreased while yield increased. they are part of the standard decision-making EMSs? One reason is that, in most cases, the
process of a business. They also are integrated driving forces are not strong enough to over-
into all aspects of a company’s activities, prod- come the barriers. It is essential that those pro-
ucts and services. In the NDEMS study, all com- moting an EMS to such enterprises understand
panies that had adopted EMSs asserted that they the drivers and barriers faced by an SME. The
saw a business value in improving their environ- driving forces or barriers that are most impor-
mental performance. tant depend on the type of industry, the size of
the business and its customers.
Clearly Defined Objectives and Targets. Success-
The Case of Salsa de La Laguna ful EMSs tend to set both abstract/overarching
In adopting an environmental management and specific/measurable goals. An abstract/
system, employee engagement and buy-in overarching goal may be "transparency," where-
can be particularly important when a compa - as a specific/measurable goal may be "Have
ny has a recognized brand name. The
Guadalajara Environmental Management Pilot Michael document the EMS design and imple-
(GEMP) study recounts the case of Salsa de mentation process" or "Reduce air emissions by
La Laguna (SLL), a 30-person Mexican com - 35 percent by 2006." Abstract/overarching
pany that makes hot sauce and supplies one
of the largest tequila manufacturers in Jalisco
goals allow for creativity and problem solving,
with sangrita. because managers and employees are not
The company faced environmental issues bound to follow certain codes. Specific and
associated with excessive noise, the dis -
charge of raw materials, generation of exces -
measurable goals ensure that the abstract is
sive waste, effluent discharges to a lake and translated into the feasible and achievable. This
an excessive risk of fire. SLL developed a duality also places smaller objectives in the con-
comprehensive EMS by mobilizing work text of larger goals.
teams to analyze and respond to problems in
industrial hygiene, raw material use and con -
trol of wastes, effluent discharges and noise. Continual Monitoring and Measurement. Moni-
Among the ideas that they, together with toring and measurement are always cited in
management and a university consultant, had
were sorting solid waste into reusable and EMS success stories, but companies go to wide-
recyclable bins, cleaning up work spaces, ly different lengths to monitor and measure
improving the maintenance of company vehi- their progress.
cles, reducing effluent discharges through
water conservation, reducing the use of sani - After setting objectives and targets, a com-
tizing chemicals, requiring suppliers to use pany should devise a means of monitoring and
strong containers in order to reduce waste measurement, preferably in quantifiable terms.
and loss, and rinsing out drums of orange
juice to salvage concentrate. Some of these
Are changes being implemented? Are the cor-
measures resulted in savings of over rect policies being pursued? Is the amount of
US$10,000 a year. This new environmental waste being reduced, and, if so, by how much?
consciousness went beyond the factory.
How much money is being saved through waste
According to the report on the project, some
workers "began wearing T-Shirts describing reduction? Are targets being met? Are more
their new environmental concerns, to speak effective means of reducing waste available?
at local schools, and to participate in environ- Should objectives and targets be revised? Ques-
mental cleanup activities in the community"
(World Bank 1998). tions like these should be asked daily by any
company and not limited to the start-up period
14 ENVIRONMENTAL M ANAGE MENT SYSTE MS
17. 5. DRIVERS AND BARRIERS TO EMS ADOPTION BY
SMALL AND MEDIUM-SIZE ENTERPRISES
riving forces are factors that create or in an environmentally responsible way. The
D change an organization’s environmental
performance by pushing it to utilize environ-
Canadian Federation of Independent Business
(CFIB) survey of SMEs revealed that respon-
mental management tools, including environ- dents in the most regulated industries—that is,
mental management systems. The drivers are those in the primary and agricultural sectors—
usually directly related to the benefits articulat- were more likely to adopt a formal environmen-
ed in the case studies in Chapter 4: enhanced tal management system. Businesses in these
efficiency and lower costs; reduced resource sectors were also subject to higher levels of cus-
use, waste and emissions; regulatory compli- tomer requests for EMSs (CFIB 2001).
ance; employee involvement and improved
relationships with customers. Other drivers Driver - Customer Requirements
might be motivators such as building relation- For a small and medium-size business, one tan-
ships with government agencies, achieving gible value in creating and implementing an
faster approval of projects, seeking fewer EMS is that such a step will meet the require-
inspections and less scrutiny, creating a good ments of larger customers, or dominant buyers.
public image and responding to pressures from Large multinational companies are increasingly
internal stakeholders within a company. requiring their suppliers to adopt environmental
Unlike large companies with a recognized management systems—a development that
brand name and large public exposure, smaller directly affects SMEs. By choosing not to do
businesses, especially suppliers to larger com- business with firms that do not adhere to their
The owner of the panies, are unlikely to implement an EMS as a environmental policies, large multinational com-
way enhance their reputation with the public. panies are able to greatly influence the environ-
business must believe The owner of the business must believe that the mental impacts of their smaller suppliers and
EMS will create real tangible value for the busi- distributors. DaimlerChrysler, Ford, General
that the EMS will ness. When a strong business case exists, the Motors and Sony, for example, now require ISO
business owner’s active support for the design 14001 certification of their primary and second-
create real tangible and implementation of the EMS is critical to ary suppliers. Large companies impose these
value for the business. help ensure its success. requirements for a variety of reasons. Among
them are reduced risk, new European Union
Driver - Economic Factors regulations restricting substances in consumer
An EMS can, in many instances, create real tan- products, direct financial savings, improved
gible value for a business in risk reduction, rev- relations with their customers or regulators and
enue enhancement and cost reduction. A small recognition of responsibility for their environ-
background survey conducted by the National mental impacts.
Environmental Education and Training Founda- An example of the effect large corpora-
tion (NEETF) in the preparation of its 2001 tions can have on their supply chain is illustrat-
report "Standardizing Excellence: Working with ed by the Environmental Performance
Smaller Businesses to Implement Environmental Agreement between the Canadian Automotive
Management Systems" found that the top five Parts Manufacturers’ Association (APMA), Envi-
factors likely to drive EMS adoption in smaller ronment Canada Ontario Region and Industry
enterprises were Canada. The agreement, entered into in 2002,
committed participating APMA member compa-
1. business benefits of an EMS nies to be ISO 14001–registered by December
2. tax breaks for EMS implementation 2003 and to take action to reduce emissions of
3. customer EMS purchasing requirements volatile organic compounds, carbon dioxide and
for suppliers other substances. APMA members collectively
4. insurance benefits of an EMS account for over 90 percent of the $35 billion
5. a performance-based regulatory system. automotive parts industry production in Canada.
This agreement was a response to the supply chain
In heavily regulated sectors, an EMS may requirements of DaimlerChrysler, Ford Motor
be a way to demonstrate to regulators, lenders, Company and General Motors. Specific targets
insurers and buyers that a company is managed and timelines for this initiative are an aggregate
15 A NORTH AMERIC AN PERSPE CTIV E
18. Mexico’s National Association of the Chemical Industry (Asociación Nacional de
la Industria Química—ANIQ) was the first association to design its Responsible
Care program as an environmental health and safety management system
(Sistema de Administración de Responsabilidad Integral—SARI).
reduction of 20 percent in VOCs and 3 percent for becoming a member of ANIQ. Members must
in carbon dioxide and CEPA toxic substance commit themselves is to actively participating in
substances (where applicable) by 2007.7 assistance activities designed to support the
A recent pilot project by the World Envi- Responsible Care program in member SMEs.
ronment Center (WEC) illustrates this trend. The Responsible Care had a strong impact on
WEC is a not-for-profit organization composed the decision by the National Association of
of many large multinational corporations. The Chemical Distributors (NACD) to develop an
Center’s Supply Chain Management Partnership environmental code of its own (the NACD has
promotes the adoption of improved environ- members in Canada and the United States, and
mental management techiniques and cleaner many of its members are small businesses). The
production programs among companies that NACD code is based on Responsible Care, but
supply WEC member companies. The WEC is is stronger in several respects; it requires third-
implementing pilot projects with multinationals party verification of members’ performance, as
and a select number of their suppliers in Mexico, well as health, safety, and security, and has a
Brazil and China (where the project is in the history of suspending and terminating members
planning stage). In Mexico, the project involves for noncompliance (Nash 2000).
Janssen-Cilag, an operating subsidiary of John- The Environmental Commitment and
son & Johnson that produces drugs for clients Responsibility program of the Canadian Electric-
around the world, and Alcoa Fujikur, whose ity Association (CEA), which counts small and
lines of business include automotive and elec- medium-size businesses among its members,
tronic distribution systems and fiber-optic cable. stipulates that adoption of an ISO 14001–con-
sistent EMS is a condition of membership.
Driver - Trade Association Requirements Under the Environmental Commitment and
Some trade associations require their members Responsibility program, a verification team visits
to have an environmental management system a selected number of utilities each year to deter-
The Importance of the Business Owner in place or to adhere to environmental codes of mine whether the EMS implemented satisfies
For small and medium-size enterprises, a cen- conduct. For example, national chemical associ- the program’s requirements.
tral factor in the implementation of an envi-
ronmental management system is the ations in 52 countries run Responsible Care® For SMEs, market forces are particularly
leadership of the top manager in pushing for programs. Under Responsible Care, member important. This is especially true in Mexico,
continual improvement. Observers have companies must commit to adopting a set of which has a large, informal economy and whose
noted that a commitment to achieving envi-
ronmental improvements is a far bigger factor guiding principles, codes, guidelines and check- smaller businesses may be subject to fewer reg-
in achieving environment results than merely lists on health, safety and environmental matters, ulatory pressures. A recent Inter-American
having an EMS in place; an EMS just makes a and to developing indicators and verification Development Bank study of ISO 9000, and to a
company be able to achieve these improve-
ments. In fact, a Canadian Federation of Inde-
procedures. They must communicate their "good lesser degree ISO 14001, in certain areas of
pendent Business (CFIB) survey found that faith efforts" to implement the codes to employ- Latin America, including Nuevo León in Mexico,
for 87 percent of respondents the personal ees and stakeholders.8 found that a key determinant of the quality of
views of owners were the primary motivation
Mexico’s National Association of the the environmental management system was the
for improved environmental performance
(CFIB 2001). Chemical Industry (Asociacion Nacional de la extent to which management demanded the
The Guadalajara Environmental Manage- Industria Quimica—ANIQ) was the first associa- system (IADB 2004). However, despite these
ment Pilot (GEMP) and Proyecto Adminis- tion to design its Responsible Care program as market forces, for most SMEs the barriers to
tración Ambiental Monterrey (PAAM) studies
highlight the importance of manager support an environmental health and safety management EMS adoption outweigh the drivers.
for employee involvement in the EMS process. system (Sistema de Administracion de Respons-
Those managers who enthusiastically adopted abilidad Integral—SARI). It incorporates elements Barriers to EMS Adoption
EMS concepts and who worked with their
employees achieved successful EMS imple- of ISO 14001 and fulfills other requirements of Barriers are factors that hamper and can even
mentation during the study time period, different known management systems related to bring to an end the design, implementation and
whereas those managers who did not with environmental, health and safety issues. Adoption operation of an environmental management sys-
their employees failed. A manager who sees
an economic benefit in EMS implementation
of the Responsible Care program is a condition tem. Even when driving forces exist, SMEs may
and actively supports its design and develop- face imposing barriers when designing and
7. B. Brad Cummings, manager, Pollution Prevention and
ment is a critical factor in EMS implementation
Innovative Technologies, Environment Canada Ontario Region,
implementing an EMS that larger companies are
(Lexington Group 2002).
e-mail message to Tim Whitehouse, CEC, January 28, 2005. less likely to face. A Lack of knowledge about
8. See <http://www.responsiblecare.org>. and awareness of environmental management
16 ENVIRONMENTAL MANAGE MENT SYSTEMS
