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Voluntary Environmental Management for SMEs: Alternatives Models for ISO 14001 Adoption

Voluntary Environmental Management for SMEs: Alternatives Models for ISO 14001 Adoption . Lisa Greenwood Environmental Management Leadership Symposium VII May 2, 2011. Outline. Background SMEs ISO 14001 – what and why? Conformity assessment options Alternative Models Future Research

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Voluntary Environmental Management for SMEs: Alternatives Models for ISO 14001 Adoption

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  1. Voluntary Environmental Management for SMEs:Alternatives Models for ISO 14001 Adoption Lisa Greenwood Environmental Management Leadership Symposium VII May 2, 2011

  2. Outline • Background • SMEs • ISO 14001 – what and why? • Conformity assessment options • Alternative Models • Future Research • Questions

  3. Background • SMEs: smaller footprints BUT comprise > 95% of employer firms • Significant aggregate impact • Large share of industrial pollution, water and energy consumption • Present an opportunity to reduce global environmental burden

  4. Background • Voluntary Environmental Programs • Globalization + public pressure  voluntary environmental programs, EMS • Environmental Management Systems • Better management  betterenvironmental performance • ISO 14001: most prevalent • Can ISO 14001 be useful for SMEs?

  5. ISO 14001 – What and Why? • International environmental management system standard • EMS specification standard • voluntary or integrated in policy • Systematic approach to managing environmental impacts • Focused on continual improvement – Deming model • Typically involves certification of conformity by an independent third party Source: EPA/Glover-Stapleton Functional purpose: - Systematic control of adverse environmental impact - Achievement of objectives and targets Applied purpose: - signal to external stakeholders that a firm is “Green”

  6. ISO 14001 – Effective? • Not always conclusive, no clear consensus • Performance varies considerably among adopters • Variables include motivations/drivers; commitment, available resources, EMS maturity, etc. • U.S. –based research suggests at least modest improvements for adopters • Reduced pollutant releases • Reduced Energy use • Increased recycling

  7. ISO 14001 – Effective for SMEs? • ISO is very conscious of low uptake by SMEs • Strategic SME task force • Alternative standard – ISO 14005 • Guidance materials aimed at SMEs • Intended for use by any type/size organization….. • Presents specific challenges and potential barriers for SMEs

  8. SMEs – Costs • Do costs outweigh benefits? • additional staff /manpower needs • internal education and training • external consulting • internal auditing • environmental control measures • third party certification reviews and audits

  9. SMEs - Resources • Technical, human resource constraints • limited environmental management capabilities • Weak resource and management capacity • Lack of EMS expertise, technical skills, knowledge base

  10. Conformity Assessment LOW HIGH Independence Self-Declaration Internal verification Second-Party Verification Verification by interested party Verification by external party Third-Party Certification Independent verification • Depends on: • Customer and regulator requirements • Consumer expectations • Resources and cost • Needs of the organization

  11. AMEMs? • Alternative Models for Environmental Management • Primary Types: • EMS “lite” • Phased EMS • Joint EMS/Group Certification • Mentor approach

  12. AMEMs Key Point: - Effectiveness is not dependent on Certification

  13. Conclusions • ISO 14001 certification • may not be appropriate for most SMEs • AMEMs • Potentially more flexible, cost-effective • Credible, 2nd party process utilization • Can be applied with certification if desired • Focus for SMEs should be on Joint EMS and Mentoring options

  14. Questions?

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