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Environmental Management System (EMS): Features, Elements, Costs & ISO 9000/14000 Explained

Environmental management system

Environmental management system (EMS) refers to the management of an organization's environmental programs in a comprehensive, systematic, planned and documented manner. It includes the organizational structure, planning and resources for developing, implementing and maintaining policy for environmental protection.

More formally, EMS is a system and database which integrates procedures and processes for training of personnel, monitoring, summarizing, and reporting of specialized environmental performance information to internal and external stakeholders of a firm.

Definition of EMS - Organizational structure, planning activities, responsibilities, practices, procedures, processes, resources, and standards (such as ISO 14000 or BS 7750) employed in formulating an organization's environmental policy and achieving its objectives on both short- and long-term basis.

    Environmental_Management_System_(EMS)_Features_Elements_Costs_&_ISO_9000&14000_Explained

    Goals of Environmental management system (EMS) 

    The goals of EMS are to increase compliance and reduce waste:
    1. Compliance is act of reaching and maintaining minimal legal standards. By not being compliant, companies may face fines, government intervention or may not be able to operate.
    2. Waste reduction goes beyond compliance to reduce environmental impact. The EMS helps to develop, implement, manage, coordinate and monitor environmental policies. Waste reduction begins at the design phase through pollution prevention and waste minimization. At the end of the life cycle, waste is reduced by recycling.

    Features of Environmental management system (EMS) 

    An environmental management system (EMS):
    1. Serves as a tool, or process, to improve environmental performance and information mainly "design, pollution control and waste minimization, training, reporting to top management, and the setting of goals"
    2. Provides a systematic way of managing an organization’s environmental affairs
    3. Gives order and consistency for organizations to address environmental concerns through the allocation of resources, assignment of responsibility and ongoing evaluation of practices, procedures and processes
    4. Creates environmental buy-in from management and employees and assigns accountability and responsibility.
    5. Sets framework for training to achieve objectives and desired performance.
    6. Helps understand legislative requirements to better determine a product or service's impact, significance, priorities and objectives.
    7. Focuses on continual improvement of the system and a way to implement policies and objectives to meet a desired result. This also helps with reviewing and auditing the EMS to find future opportunities.
    8. Encourages contractors and suppliers to establish their own EMS.

    Basic Elements of an EMS

    1. Reviewing the company's environmental goals
    2. Analyzing its environmental impacts and legal requirements
    3. Setting environmental objectives and targets to reduce environmental impacts and comply with legal requirements
    4. Establishing programs to meet these objectives and targets
    5. Monitoring and measuring progress in achieving the objectives
    6. Ensuring employees' environmental awareness and competence
    7. Reviewing progress of the EMS and making improvements

    Costs and Benefits of an EMS

    Potential Costs

    Potential Benefits

    Internal Costs

    Improved environmental performance

    Staff (manager) time

    Enhanced compliance with environmental laws

    Other employee time

    Pollution prevention

    Note: Internal labor costs represent the bulk of the EMS resources expended by most organizations.

    Resource conservation

    External Costs

    Access to new customers and markets

    Potential consulting assistance

    Increased efficiency and reduced operating costs

    Outside training of personnel

    Enhanced employee morale

    Improved image with public, regulators, lenders, and investors

    Greater employee awareness of environmental issues and responsibilities


    Meaning of International standard organization (ISO)

    ISO means international standard organisation. In business environment, ISO word is so famous and international organisation provides standards to those business organizations that fulfil its conditions. It has authority to issue certificate of quality management and quality environment. There are large numbers of business organisation who satisfy the conditions. They have ISO certificate.

    ISO (International Organization for Standardization) is the world's largest developer and publisher of International Standards. This organisation has made by participation of all countries. Its central secretariat is in Geneva, Switzerland. It is NGO which helps to promote business by providing them solution of quality problems.

    Meaning of ISO 9000 

    This is the latest version of international organisation for standardization which gives to those organisations who satisfy the following condition
    • It fulfils the quality requirements of customers.
    • It fulfils regulatory requirements.
    • Customers satisfaction
    • Continual improvement in quality management.
    • Records should show how and where raw materials and products were processed, to allow products and problems to be traced to the source.
    • You need to test and document whether the product meets design requirements, regulatory requirements and user needs.

    Meaning of ISO 14000 

    ISO 14000 is standard certificate which gives to those business organisations that fulfil the conditions relating to quality environment. Quality environments mean all measure to protect the environment from pollution.

    Definition of 'ISO 14000' 

    A set of rules and norms for environmental management of industrial production ISO 14000 applies to all businesses and is designed to reduce environmental damage and industrial waste. The ultimate goal of these guidelines is to promote useful and usable tools to businesses to help them manage their environmental impact.

    ISO 14000 has several subsets that address various aspects of environmental regulations. These rules were all created by the Industrial Organization for Standardization. They first became popular in Europe and then began to be widely used in the U.S. in the 1990s.

    Conditions
    1. Company has minimized harmful effect on environment by proper control on waste and pollution.
    2. Achieve improvement in its environment performance by planting the trees and other projects.
    3. ISO 9000 and ISO 14000 are given after taking test of products who apply for same and ISO takes also some fees for issuing the certificate. There is no guarantee, any quality of end products but almost all ISO products are high quality.
    4. The certificate will be for three years and after this product will again review for giving certificate.
    ISO 14001 is known as a generic management system standard, meaning that it is relevant to any organization seeking to improve and manage resources more effectively. This includes:
    1. Single site to large multi-national companies
    2. High risk companies to low-risk service organizations
    3. Manufacturing, process and the service industries; including local governments
    4. All industry sectors including public and private sectors
    5. Original equipment manufacturers and their suppliers.

    Objectives of ISO 9000 and ISO 14000

    1. To Increase the goodwill of company - Main objective of getting these standards is to increase the goodwill of company. Customer can compare the quality of two companies; one is with ISO standard and other is without ISO standard. Goodwill may be in form of increase in sale or more promotion of product of company.
    2. Control on Quality - After getting ISO standards, company has to control on quality and it is the objective of ISO standards. ISO standard 9000 controls product's quality and ISO 14000 controls environment quality.
    3. Revolution - After coming, ISO 9000 and ISO, 14000 companies have started to label the product by eco labelling. Moreover, awareness has come in the minds of company after its ISO standard in 1987.
    4. Working of ISO - ISO 9000 is more powerful tool to get confidence in market. Company can invite customers to check the quality before purchasing the products. It will only possible after implement ISO 9000 standards. Every product's package is with ISO 9000 and customer can understand its value.

    Sandeep Ghatuary

    Sandeep Ghatuary

    Finance & Accounting blogger simplifying complex topics.

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