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An Environmental Management System

An Environmental Management System

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More and more importers are requiring their suppliers to have an Environmental Management System. But why? How do importers benefit from working with a supplier that has an Environmental Management System?

More and more importers are requiring their suppliers to have an Environmental Management System. But why? How do importers benefit from working with a supplier that has an Environmental Management System?

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An Environmental Management System

  1. 1. And How It Can Help You, as an Importer
  2. 2. A Snapshot of Manufacturing and the Environment Manufacturing industry waste is threatening air, soil, and water quality. Residents in immediate vicinities of factories are impacted by manufacturing waste (e.g. shortened expected life span). Even those on different continents feel its effects.
  3. 3. Rank Country PollutionIndex 1 Afghanistan 101.27 2 Ghana 97.85 3 Lebanon 94.88 4 Bangladesh 93.06 5 Egypt 92.84 6 Mongolia 92.67 7 Myanmar 89.74 8 Vietnam 88.41 9 China 88.08 10 Peru 87.12 Countries Ranked by Pollution Index, Mid-Year 2016
  4. 4. The Impact of the Environment on Importers As the world’s environmental condition declines, more retailers and distributors are focusing on holding themselves and their business partners responsible for limiting their environmental impact.
  5. 5. The Impact of the Environment on Importers But what if you deal with different suppliers that have different environmental standards and initiatives? And how can you make sure they are actually compliant?
  6. 6. The Answer: An Environmental Management System EMS plan act check do
  7. 7. What is an Environmental Management System? An organization uses an Environmental Management System (EMS) to help achieve its environmental goals by actively and consistently reviewing, evaluating, and improving its environmental performance. NOTE: The organization must set its own environmental objectives and targets; the EMS acts as a systematic review.
  8. 8. What are the Benefitsof Doing Business with aSupplier with anEMS? Many retailers and importers insist on having an EMS because a supplier that does not adhere to environmental standards means unwanted risks.
  9. 9. What are the Benefitsof Doing Business with aSupplier with anEMS? Enhance supplier efficiency and compliance Improve image with public, employees, and investors Create new customer and market opportunities
  10. 10. What do Studies onthe Benefits of an EMSSay? According to a 5-year study conducted by the University of North Carolina, an EMS can be beneficial to the environmental performances of most facilities. Of the 83 facilities that participated in the study, 86% said they benefitted from developing and implementing an EMS. 86% 14% Survey Results on the Benefits of EMS Benefitted from EMS Otherwise
  11. 11. What do Studies onthe Benefits of an EMSSay? The Environmental Agency in England concluded from its own study that having an EMS is associated with increased operational performance. The average Operator Performance Appraisal (OPA) score for facilities without an EMS was 3.4167, while the average OPA score for companies with ISO 14001-certified EMS was 3.6833. 3,2 3,4 3,6 3,8 Average OPA Score Average OPA Score vs. EMS No EMS EMS
  12. 12. These are the PossibleConsequencesof Doing Business with aSupplier with NO EMS: Supplier inefficiency and non-compliance Business and legal risks Increased costs Damaged business image Lost business opportunities
  13. 13. If Your Supplier doesNOThave anEMS Some countries have environmental regulations (e.g. a cap on emissions or prohibition of certain waste removal methods). If they are violated, both you and your supplier could face fines and court cases, forced factory shutdowns, and loss of business with retailers. If your supplier does NOT have an EMS, encourage them to establish one.
  14. 14. The Next Step If your supplier does have an EMS, you should conduct an environmental audit to look at their goals and what actions have been implemented to improve environmental performance.
  15. 15. The Next Step Now that you've decided to conduct an environmental audit, what’s next? Determining the standards to base your evaluation. NOTE: ISO 14001 standards are commonly used for this audit.
  16. 16. What does an ISO 14001 Audit Entail? An audit based on ISO14001standards iscommonly usedto evaluate anEMS. The audit considers: Supplier organization and environmental policy Supplier EMS’s environmental aspects Supplier legal requirements and documentation Supplier environmental objectives, targets, and programs Supplier operations and management
  17. 17. The Structure of AnEMSUnderISO 14001 Management Review Policy Planning ImplementationChecking and Corrective Action
  18. 18. In Short… An EMS saves you and your supplier from major headaches and many unwanted costs. Conducting an environmental audit based on ISO 14001 standards will make sure your EMS is efficiently and effectively improving environmental performance.
  19. 19. Sources • http://www.iso.org/iso/pub100329.pdf • https://www.epa.gov/ems/learn-about-environmental-management-systems#what-is-an-EMS • https://www.epa.gov/ems/learn-about-environmental-management-systems#costs • https://www.linkedin.com/pulse/environmental-impact-manufacturing-from-industrial-between-robinson • http://www.unep.fr/shared/publications/pdf/DTIx1262xPA-PriorityProductsAndMaterials_Report.pdf • http://www.cfr.org/china/chinas-environmental-crisis/p12608 • http://www.slideshare.net/hecrod/environmental-management-systems-iso-14001 • http://www.nytimes.com/2013/03/30/world/asia/cost-of-environmental-degradation-in-china-is- growing.html?_r=1 • http://www.pnas.org/content/111/5/1736.abstract • http://www.numbeo.com/pollution/rankings_by_country.jsp • http://www.slideshare.net/hecrod/environmental-management-systems-iso-14001 • http://www.slideshare.net/technosyscon/iso-14001-environmental-management-system • https://www.eurekalert.org/pub_releases/2003-03/uonc-sce030603.php • https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/290343/sp6-017-2-tr-e-e.pdf

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