Environmental Management: From Overhead To Strategy

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Make a green university
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Environmental Management From Overhead to
Integration

• Environmental Management as an EHS Activity
• to
• Top Management Commitment
• Environmental Policy
• Green organization
• Environmental Management Systems

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Environmental Management

• Objectives of this part of the course
• Introduce you to main concepts and practices of
  environmental management
• Understand environmental management from DfE
  driven perspective

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This class

• Become familiar with departmental or activity
  based divisions of a company
• Understand integration of Environmental
  Management into those activities
• Understand how this integration can be driven by
  DfE

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What has been (and for the most part remains) the
primary way for companies to deal with
environmental issues?
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Departmentalization of Environmental Activities
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The Role of Environmental, Health and Safety
(EHS) Departments

• Ensuring compliance with government and corporate
  health, safety and environmental regulations
• Monitoring, recording, and reporting
• Advising and policing other departments

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Overhead

• Companies are organize to perform business
  strategies efficiently
• EHS added to existing structure as department to
  lessen disruption of existing strategy
• Or Integration
• Environmental performance made a part of all
  activities as part of a strategy for combining
  environmental performance with the companies
  activities
• Only top management can integrate all the diverse
  activities of a firm to achieve a common goal

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Fig. 1 Integrating Environmental Improvement
across Departmental Boundaries
Integrating environmental improvements throughout
a businesss divisions
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Top Management

• Strategy
• Commitment
• Policy
• Organization

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Strategy Competitive Advantages of a Sustainable
Business

• Improved product quality
• Healthy working environment and staff commitment
• Improved community relations
• Positive pressure group relations
• Improved media coverage
• Green Products and byproducts
• Cheaper finance
• Lower insurance and legal costs
• Assured present and future compliance
• Improved materials and energy efficiency
• Reduced cleanup and decommissioning costs
• Reduced supplier and customer costs

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OrganizationStakeholder Expansion

• Trading Partners
• Community
• Employees
• Investors
• Insurers
• Media
• Pressure Groups
• Customers
• Government

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Todays CaseNokia
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Environmental Strategy at Nokia
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Nokias Vision

• Nokia sees mobile technology as an enabler that
  can help create a more sustainable world.
  Combined with better product design, tighter
  control of production processes, greater reuse of
  materials, and proper recycling, mobile
  communications can help to reduce the use of
  scarce natural resources and energy.

Nokias Strategy
Covers the whole value chain and is implemented
through four key programs Design for
Environment, Supplier Network Management,
Environmental Management Systems, and End-of-Life
Practices. With the help of these programs we
strive to eliminate risks, gain the acceptance of
our stakeholders and increase our profits.
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Strategy based on

• Mobility Mobile technology and digital services
  can often replace the need for travel or
  transport, and this in turn reduces the
  greenhouse effect caused by the burning of fossil
  fuels. Mobile technology can make various
  transactions easier and enable greater economic
  and social activity, driving industry growth.
• Growth We strive to handle the short life cycles
  of mobile phones and the related increase in
  consumption by operating in a sustainable and
  responsible manner. We take part in a wide range
  of cooperative initiatives and global
  organizations to share knowledge and shape
  effective environmental policies. At the same
  time, we strive to reduce material and energy
  consumption in our own activities.
• Quality Reduction of waste is an environmental
  goal closely linked with quality - quality of
  design, sourcing, assembly, and end-of-life
  practices.

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Strategy meaning

• Mobility making the best out of mobile phones
  reduction of infrastructure and traveling
  impacts.
• Growth dealing with increasing consumption of
  mobiles and their short life spans through
  eco-efficiency and cooperation
• Quality linking environmental performance to
  product quality

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Top Management Commitment

• Personal actions and responsibility
• Corporate actions and responsibility

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Environmental Policy

• Reasons for an environmental policy
• Guidelines for an environmental policy
• The International Chamber of Commerce Benchmark
• Examples

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Reasons for Environmental Policy

• States the companys commitment to improve
  environmental performance to all stakeholders
• Creates a base from which all stakeholders can
  judge performance

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Guidelines for an Environmental Policy

• Communicate companys commitment to environmental
  protection to all stakeholders
• Cover all aspects of a companys activities
• Create performance objectives and targets that
  are reasonable and can be measured
• Clear and understandable
• Signed by CEO or Managing Director

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International Chamber of Commerce (ICC) Business
Charter for Sustainable Development

• 1. Corporate Priority
• 2. Integrated Management
• 3. Process of Improvement
• 4. Employee Education
• 5. Prior Assessment
• 6. Products or services
• 7. Customer Advice
• 8. Facilities and Operations
• 9. Research

• 10. Precautionary Approach
• 11. Contractors and Suppliers
• 12. Emergency Preparedness
• 13. Transfer of Technology
• 14. Contributing to the Common Effect
• 15. Openness to Concerns
• 16. Compliance and Reporting

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Environmental Policy

• CX will ensure that our staff are educated in
  environmental matters.
• CX will develop systems to minimize and conserve
  energy.
• CX will encourage the development of
  environmentally friendly technologies within the
  airline industry.
• CX will participate in influencing the Hong Kong
  Government in environmental matters.
• CX will consciously act as an environmental
  leader in the community.

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China Light and Power
Our Policy As a responsible corporate citizen,
the CLP Group is to providing quality power
supply and services to our customers in a manner
that ensures a safe, healthy and clean business
environment for our employees, customers and the
public. Our goals are "Zero Accident", "Zero
Non-compliance" and "World Class Products and
Services".
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CLP cont
Our principles are to Exceed the
service requirements and expectations of our
customers, to ensure we are their preferred
energy service supplier Operate to the
highest standards in safety and health
Conduct our business in a manner that strives to
balance the sustainable environmental, social and
economic needs of the community Develop a
competent, innovative, responsible and motivated
work force Encourage and require,
wherever appropriate, our business partners,
suppliers and contractors to adopt equivalent
principles. We will continue to systematically
identify, monitor, review and control our safety
and health risks, environmental impact and
quality issues to ensure ongoing improvement.
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Elek and Eltek

• We are committed to protect the environment and
  pursue continual improvement of our environmental
  performance in the printed circuit board
  manufacturing business with the following
  principles
• To comply with all applicable environmental
  legislation's and other subscribed requirement
• To monitor and control the significant
  environmental impacts associated with our
  business activities
• To prevent pollution and conserve resources in
  every aspect of our business activities
• To provide training and support to enhance
  environmental consciousness amongst all levels of
  employees
• To share environmental experience with our
  customers, vendors and other interested parties
  and
• To support public environmental programmes and
  activities.

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IBM

• Provide a safe and healthful workplace and ensure
  that personnel are properly trained and have
  appropriate safety and emergency equipment.
• Be an environmentally responsible neighbor in the
  communities where we operate, and act promptly
  and responsibly to correct incidents or
  conditions that endanger health, safety, or the
  environment. Report them to authorities promptly
  and inform affected parties as appropriate.
• Conserve natural resources by reusing and
  recycling materials, purchasing recycled
  materials, and using recyclable packaging and
  other materials.

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IBM cont

• Develop, manufacture, and market products that
  are safe for their intended use, efficient in
  their use of energy, protective of the
  environment, and that can be reused, recycled or
  disposed of safely.
• Use development and manufacturing processes that
  do not adversely affect the environment,
  including developing and improving operations and
  technologies to minimize waste, prevent air,
  water, and other pollution, minimize health and
  safety risks, and dispose of waste safely and
  responsibly.
• Ensure the responsible use of energy throughout
  our business, including conserving energy,
  improving energy efficiency, and giving
  preference to renewable over non-renewable energy
  sources when feasible.

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IBM cont

• Participate in efforts to improve environmental
  protection and understanding around the world and
  share appropriate pollution prevention
  technology, knowledge and methods.
• Utilize IBM products, services and expertise
  around the world to assist in the development of
  solutions to environmental problems.
• Meet or exceed all applicable government
  requirements and voluntary requirements to which
  IBM subscribes.
• Set and adhere to stringent requirements of our
  own no matter where in the world the company does
  business.
• Strive to continually improve IBM's environmental
  management system and performance, and
  periodically issue progress reports to the
  general public.

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IBM cont

• Conduct rigorous audits and self-assessments of
  IBM's compliance with this policy, measure
  progress of IBM's environmental affairs
  performance, and report periodically to the Board
  of Directors.

Every employee and every contractor on IBM
premises is expected to follow this policy and to
report any environmental, health, or safety
concern to IBM management. Managers are expected
to take prompt action.
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• Thinking Globally
• Achieving Excellence
• Searching for Sustainability
• Managing Growth
• Managing Energy
• Managing Waste
• Controlling Pollution
• Operating Safely
• Obeying the Law
• Raising Awareness
• .

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Raising Awareness
Our mission is to forge a new and more
sustainable ethic for business. We are committed
to continuous education for our employees on
environmental issues. We are committed to freedom
of information and full and comprehensive public
disclosure of our environmental performance . We
are also committed to encouraging our business
partners around the world to report on their
environmental performance.
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BP's commitment to health, safety and the
environmental performance Everybody who works
for BP, anywhere, is responsible for getting HSE
right. Good HSE performance and the health,
safety and security of everyone who works for us
are critical to the success of our business.
Our goals are simply stated - no accidents, no
harm to people, and no damage to the environment.
We will continue to drive down the
environmental and health impact of our operations
by reducing waste, emissions and discharges, and
using energy efficiently. We will produce quality
products that can be used safely by our
customers.
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BP cont
We will consult, listen and respond openly to
our customers, employees, neighbours, public
interest groups and those who work with us work
with others - our partners, suppliers,
competitors and regulators - to raise the
standards of our industry openly report our
performance, good and bad recognize those who
contribute to improved HSE performance Our
business plans include measurable HSE targets. We
are all committed to meeting them. Sir John
Browne Chief Executive Officer
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Nokias Environmental Policy

• Nokia is committed to the pursuit of
  environmentally sustainable development. The
  company's policy is to achieve such development
  by leveraging its resources including
  technological know-how, market position and the
  continuous building of competencies.
• From an organizational point of view,
  environmental management is integrated into all
  business activities. Based on the principle of
  sustainable development, Nokia and its people
  work continuously towards good corporate
  community involvement.

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Nokias Environmental Policy

• The basic principles of our environmental policy
  are
• A successful business requires a solid product
  life cycle-based environmental performance.
• The Nokia Way means an active, open and ethically
  sound approach to environmental protection.
• The objective of Nokia's environmental policy is
  sustainable development in accordance with the
  ICC (International Chamber of Commerce) business
  charter.

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Nokias Environmental Policy

• Principles of Implementation
• The environmental policy is part of the general
  management process.
• Line organizations plan and implement the action
  programs by using environmental specialists and
  the best available technology.
• The action programs are based on a thorough
  understanding of the environmental impacts of a
  product throughout its life cycle.
• Minimizing the environmental impacts requires
  continuous efforts and follow-up of the results
  it is thereby a part of the total improvement
  activities.

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Green Organization

• Bottom-up as well as top down improvements
• Education and training
• Responsibility, accountability and reward
• Organizational integration and structure
• Environmental manager
• Green management committees and work teams

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Environmental Manager integrator

• Co-ordinate and consolidate efforts from staff of
  different operations into environmental programs
• Communicate the objectives of the environmental
  programs to staff, and solicit their suggestions
  and support
• Oversee the progress of environmental programs
• Ensure that good business results are achieved
  through the environmental programs and
• Provide a contact point for sharing information
  with external parties.

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Integrated Structure

• Green Management Committees
• Green Work Teams

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Green Management Committee
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Design for Environment
Dematerializing
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OrganizationExternal Help

• Stakeholders
• Consultants environmental management, strategic
  management, scientific etc.
• Universities and other research institutions

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Nokias Environmental Organization
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Nokias Environmental Organization I

• Nokia-Wide Bodies ensure business group and
  unit level activities are consistent with
  environmental policy and efficient co-operation
  between business groups.
• The Nokia Quality Board is the highest
  decision-making body in environmental issues. Its
  members include the Chairman and CEO of Nokia,
  the President of Nokia and the Presidents of the
  Business Groups.
• Nokia Environmental Management Team prepares
  proposals to be implemented on a Nokia-wide basis
  to the Environmental Steering Group.
• The Nokia Environmental Steering Group prepares
  action programs and guidelines for business
  groups and line organizations
• Communications Manager is responsible for
  internal and external communication of Nokia-wide
  environmental issues.

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Nokias Environmental Organization II

• Business group and unit level
• Environmental work is integrated into normal
  business activities.
• The quality and process organizations act as
  facilitators in environmental issues and the
  daily environmental work is carried out in the
  line organizations.
• Each production site has a designated person
  responsible for the implementation and
  development of the site's environmental
  management system.

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Environmental Management Systems ISO 14000

• "That part of the overall management system which
  includes organizational structure, planning
  activities, responsibilities, practices,
  procedures, processes and resources for
  developing, implementing, achieving, reviewing
  and maintaining the environmental policy."

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From Overhead to Integration

• Initial Environmental Review followed by regular
  Environmental Audits
• Policy and targets followed by action
• Goals upgraded from compliance to regulations to
  continual improvement

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Benefits of an EMS

• Ease of trade
• Improved compliance with legislative and
  regulatory requirements
• Credibility
• Reduction in liability/risk
• Regulatory incentives
• Sentencing mitigation
• Pollution prevention and waste reduction
• Profit cost reduction, new processes and
  products, image

• Improved internal management methods
• Reduce pressure from shareholder groups
• Reduced pressure from environmentalists
• Community goodwill
• A high-quality workforce
• Insurance costs lowered
• Preference in bank loans
• Sustainable development

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Plan

• Identify activities that can have environmental
  impacts and evaluate the impacts
• Determine the need for compliance with legal
  requirements
• Make an environmental policy
• Determine what type of internal performance
  criteria is required (by technology, job, etc.)
• Establish environmental objectives and targets
  and
• Develop environmental plans and management
  program.

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DO

• Supply human, physical, and financial resources
• Integrate activities and tasks for EMS
  objectives
• Establish accountability and responsibility among
  workforce
• Develop environmental awareness and motivation
• Develop workforce knowledge, skills, and training
  systems
• Setup system for communication and reporting of
  environmental measures and other information
• Setup system for EMS documentation
• Develop systems of operational control for
  equipment
• Establish emergency preparedness and response
  systems

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Check

• Measuring and monitoring
• Take corrective and preventative action when
  practices or results fall below standards or
  targets
• Record performance continually for EMS and ensure
  adequate management of information
• Perform periodic audits of EMS

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Act

• Analyze results against targets
• Determine cause for non-achievement
• Determine methods of correction
• Suggest further means of improvement
• Modify policy

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Environmental ManagementRelation to Your Project

• How does your DfE project support or advance the
  vision and environmental policies of your
  company?
• How should your DfE project be aligned with or
  help to create the green organization and EMS of
  the company?
• How can a system for continual improvement of
  environmental performance (an EMS) help to track
  the performance of your DfE project?

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Todays References

• Green Management http//www.info.gov.hk/epd/eam/
  index.html
• Chapter 5, Organization, operational matters and
  industrial structure in Roberts, Peter 1995.
  Environmentally Sustainable Business. London
  Paul Chapman Publishing.
• Chapter 4 in Welford, Richard and Gouldson,
  Andrew 1993. Environmental Management and
  Business Strategy. London Pitman Publishing.