TABLE OF CONTENTS

Preface ..................................................................................................................................... 3 Acknowledgements .................................................................................................................. 5 Executive Summary ................................................................................................................. 7 Environmental Management Systems in the nited !ingdom ................................................."3

Environmental Management Systems# $e%ort on .S. &m%lementation and Policy 'evelo%ments ........................................................................................................ (" &S) "*++"# A ,ia-le Pu-lic Policy .ool to Achieve Sustaina-ility in /a%an ............................3" EMAS0 &S) "*++" and Policy &m%lications in Euro%e .............................................................37 .he 1etherlands and 2ermany# .wo Euro%ean A%%roaches to EMS Policy ...........................*3 2lossary of .erms .................................................................................................................... *7 $eferences................................................................................................................................ *3 Appendices A%%endix A%%endix A%%endix A%%endix A%%endix " 4 1etherlands and 2ermany.....................................................................53 ( 4 .he 5anadian Ex%erience with EMS.....................................................53 3 4 nited States.......................................................................................... 63 * 4 /a%an..................................................................................................... 67 5 4 7Ma8or 5ountry7 Summary Matrix9.........................................................63

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.owards a 1ational EMS Policy and Strategy 4 Ma8or 5ountry $e%ort (

PREFACE
:.o -e inserted -y 5;&P<

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.owards a 1ational EMS Policy and Strategy 4 Ma8or 5ountry $e%ort *

ACKNOWLEDGEMENTS

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.owards a 1ational EMS Policy and Strategy 4 Ma8or 5ountry $e%ort 6

EXECUTIVE SUMMARY
.he Ma8or 5ountry re%ort %rovides a 7sna%shot7 overview of the status of EMS im%lementation in each of the identified countries0 -ut more im%ortantly0 it traces the key %olicy develo%ments in each country relating to the use of EMS. United Kingdom ;ith the a%%earance of the first national EMS standard in the early "33+s0 the nited !ingdom is the country in which the EMS 8ourney -egan. .he =ritish Standards &nstitution >=S&? had develo%ed =ritish Standard 775+# Environmental Management Systems as a com%anion to its =S 575+ standard on @uality management systems. =S 575+ was the forerunner and tem%late for the &S) 3+++ @uality management system standardsA =S 775+ was the national EMS standard for the nited !ingdom0 -eginning in "33(. &S)Bs strategic advisory grou% on the environment >SA2E? s%ent nearly two years studying =S 775+ and other national EMS standards to determine the need for a standardiCed a%%roach concerning environmental management. .he nited !ingdom0 and more s%ecifically =S&0 -ecame the secretariat organiCation within &S) .echnical 5ommittee (+7Dthe international grou% of ex%erts created to develo% the &S) "*+++ seriesDto lead the charge to develo% &S) "*++". A num-er of initiatives have emerged in the nited !ingdom lately linking governmental %olicy to EMSs. .hese include the 'e%artment of Environment and .rade >'E.$? and the 'e%artment of .rade and &ndustry >'.&? actively su%%orting &S) "*++"EEMAS in all its %olicy. =oth are actively referenced in "333s Sustaina-le 'evelo%ment Strategy entitled 7A =etter Fuality of Gife.7 A new %artnershi% -egan in Gondon to link industry0 government and environmental grou%s com%letely through the use of EMSs0 &S) "*+++ and other sustaina-le -usiness %ractices. .he S&2MA Pro8ect >Sustaina-ility &ntegrated 2uidelines for Management?0 was created -y the nited !ingdomBs '.&0 =S&0 the Horum for the Huture and the &nstitute of Social and Ethical Accounta-ility >&SEA?. .he S&2MA Pro8ect ho%es to esta-lish a strategic management framework for sustain a-ility within the next two years. &ncor%orating the conce%ts of environmental and social accounta-ility re%orting and other sustaina-le -usiness %ractices0 United States Iistorically0 the nited States has led the world in successfully defining contem%orary environmental %rotection. .hese environmental gains have -een achieved at great cost through heated legal and %olicy de-ates characteristic of the S environmental movement. A com%lex and im%erfect assem-ly of command and control re@uirements has -een effective over the %ast (+ years0 -ut dramatic turns in the economy and unforeseen changes in manufacturing suggest that more ada%tive0 %erformanceD-ased environmental management methods are needed. 5ou%led with a%%ro%riate environmental standards0 verifia-le audits and %u-lic re%orting of results0 EMSs offer an ada%tive su%%lement to com%lianceD-ased regulatory efforts in the S and can facilitate the achievement of common sustaina-le environmental %rotection goals. .he %olicy dialogue in the nited States views EMSs as an im%ortant emerging tool that hold %otential for linking -usiness logic with environmental goals and res%onsi-le stewardshi% for actual environmental im%rovements -eyond what the %resent configuration now offers. As the PresidentBs 5ouncil on Sustaina-le 'evelo%ment >P5S'? said0 7:a<lone0 environmental management systems >including %ro%erly certified &S) "*++" systems? do not necessarily ensure im%roved environmental %rotection and %erformance. $ather0 effective EMSs can %rovide significant structural su%%ort for im%roving %erformance if cou%led with @ualitative and @uantitative %erformance commitments and goals.7

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&n the nited States0 &S) "*++" im%lementation and certification was slow to take off as com%anies took a 7wait and see7 a%%roach to the standard. .his was due to a num-er of reasons0 which included mixed regulatory signals from the EPA and state enforcement -odies0 as well as limited outreach efforts -y the American -odies res%onsi-le for the develo%ment of the &S) "*+++ seriesDthe American 1ational Standards &nstitute and the S .echnical Advisory 2rou% to .echnical 5ommittee (+7 =ut -y "33J0 &S) "*++" certification num-ers in the nited States -egan to increase significantly0 with larger com%anies such as the &=M 5or%.0 Hord Motor 5o. and Gockheed Martin certifying to the standard. =y the end of "333 there were more EMS initiatives from the %u-lic sector0 and EMS continued to gain ground as a %olicy tool. .he use of certifia-le EMSs has -ecome a key element in most voluntary %rograms and initiatives develo%ed -y governments. 1ew /ersey0 )regon and Massachusetts0 and S EPA#s Star .rack %rogram all utiliCe EMSs as the -asis for %artici%ation in their advanced com%liance %rograms. .he 5linton Administration issued an executive order in late "333 that re@uiring all federal agencies to -egin environmental management system %ilot %ro8ects -y March 3"0 (++(0 and to esta-lish an effective EMS at all federal facilities -y (++5. )ther significant %olicy initiatives em-racing the EMS framework include 7reinvention7 activities at EPA0 and the final re%ort of the S PresidentBs 5ouncil on Sustaina-le 'evelo%ment in May "333. EPA has also issued two re%orts concerning EMSs including a strong commitment to utiliCing environmental management systems a%%roaches0 the first such clearly %roactive statement on EMS from EPA0 and a further agency commitment to develo% a %erformance track or alternate regulatory %athway. EPA also released the agencyBs Action Plan for EMSs. .his new %lan is the most com%rehensive %olicy a%%roach concerning &S) "*++" to date in the nited States0 and will likely garner significant discussion and de-ate in the early months of (+++. Japan /a%an leads the world -y a wide margin in terms of the num-er of com%anies certified to the &S) "*++" international environmental management systems standard0 nearing the 30+++ mark as of /anuary (+++. /a%anBs ma8or cor%orations are on -oard0 setting good exam%les with EMS im%lementation and encouraging other firms to -ecome registered with guidance and a lessonsDlearned a%%roach. .he electric a%%lianceEconsumer electronics industry is res%onsi-le for the ma8ority of certifications in /a%an0 with *+ %ercent of the market0 followed -y the chemical and trans%ortation sectors. /a%an is also an early leader in getting -eyond its own -orders0 with its ma8or com%anies even seeking &S) "*++" certification in overseas facilities0 in %laces like the nited States0 Asia and Euro%e. =ecause of this tremendous u%take of the &S) "*++" standard0 /a%an is a fundamental case study to understand the various %arameters driving the %rocess of &S) "*++" im%lementation and %olicy making. /a%anese industry and the Ministry of &nternational .rade and &ndustry >M&.&? learned from the costly lesson of delayed conformity with &S) 3+++. .hus0 when &S) "*+++ develo%ment -egan0 the /a%anese government and the industries with technology and man%ower0 took the initiative in sha%ing /a%anBs res%onse. /a%anese industries took %art in the %rocess through s%ecial task forces set u% in the /a%an Hederation of Economic )rganiCations >the 7!eidanren7? and other industrial -odies. /a%an was one of the first countries to fully em-race the EMS standards0 and M&.&Bs su%%ort and %ush was one of the crucial elements. /a%anBs geogra%hy and demogra%hy may also -e %laying a role in ado%tion of &S) "*++". As a small island nation with limited natural resources0 /a%an im%orts most of the raw materials and energy it uses. /a%anBs land area is almost e@ual to that of 5alifornia -ut -ecause of the mountainous terrain0 only "*K of the land is ha-ita-le. Moreover /a%anBs %o%ulation is a-out half of the nited States0 whereas the S has 3+ times more land area than /a%an0 thus0 making /a%an a densely %o%ulated nation much like the 1etherlands. .he result is that /a%an is realiCing the im%ortance of environmental %reservation for the current and future generations. .he !eidanren >Hederation of &ndustrial Association of /a%an? %u-lished the 2lo-al Environment

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5harter in "33"0 which called for voluntary action toward good environmental management. &n addition to voluntary action the 5harter stresses the need to reconfirm environmental ethics and ecoDefficiency through innovative technology and economic efficiency. Since its announcement0 the !eidanren 5harter has -een the guiding %rinci%le in /a%anese industry. European Union 5urrently0 the full mem-ers of the Euro%ean nion >E ? are Austria0 =elgium0 'enmark0 Hinland0 Hrance0 2ermany0 2reece0 &reland0 &taly0 Guxem-ourg0 the 1etherlands0 Portugal0 S%ain0 Sweden and nited !ingdom. )ther countries are vying for 7accession7 to E mem-ershi%0 including former SovietD-loc countries. E mem-ershi% is an attractive economic o%tion for these countries0 making environmental %erformance DD and hence EMS im%lementation DD an E accession issue. .he E has ado%ted as its management system EMAS >.he EcoDAudit and Management Scheme?. .he aim of EMAS0 the E s EcoDAudit and Management Scheme0 is to %romote onDgoing im%rovements in the environmental %erformance of com%anies and the %rovision of environmental information to the %u-lic. &t is a sectorDs%ecific standard0 o%en only to manufacturing sites. .o certify to EMAS0 a com%any must ado%t an environmental %olicy0 review environmental %erformance at the site in @uestion0 develo% an environmental management system -ased on &S) "*++"0 develo% a %lan of action in light of the findings of the environmental review0 audit the system and %u-lish a statement of %erformance of the site. A @ualified third %arty checks the system and the statement to see if they meet stated EMAS re@uirements in the standard. &f so0 they are validated and the site can -e registered. ;hen it has -een registered0 the site gets a statement of %artici%ation0 which it can use to %romote its %artici%ation in the scheme. Gike &S) "*++"0 EMAS re@uires the com%any to s%ecify environmental o-8ectives at all relevant levels within the com%any that are consistent with its %olicies. .he o-8ectives must -e set 7at the highest a%%ro%riate management level0 aimed at the continuous im%rovement of environmental %erformance.7 =ased on findings from the audit0 EMAS re@uires management to set higher o-8ectives and to revise the environmental %rogram to -e a-le to achieve those o-8ectives. .his ste% is analogous to the management review of &S) "*++". =ut a ma or difference -etween &S) "*++" and EMAS is that EMAS re@uires the com%any to examine and assess the environmental effects of the its activities at the site and com%ile a register of significant effects. .his register is not re@uired in &S) "*++". &n its first version0 %u-lished in "3330 EMAS consisted of (" Articles and 5 Annexes. .he new0 revised version0 called EMASD(0 will likely -e %u-lished in a streamlined format. .he EMAS revision0 now called EMASD(0 is ex%ected to -e %u-lished in (+++. .he main elements of the revised EMASD( are# .he extension of the sco%e of EMAS to all sectors of economic activity including local authoritiesA .he integration of &S) "*++" as the environmental management system re@uired -y EMASA .he ado%tion of a visi-le and recogniCa-le EMAS logo to allow registered organiCations to %u-liciCe their %artici%ation in EMAS more effectivelyA the involvement of em%loyees in the im%lementation of EMASA and .he strengthening of the role of the environmental statement to im%rove the trans%arency of communication of environmental %erformance -etween registered organiCations and their stakeholders and the %u-lic.

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.he goal of sustaina-le develo%ment0 which is now integrated into the Euro%ean nion o-8ectives0 calls for the use of a wider range of tools for environmental %olicy0 such as EMAS. .he 5th 5ommunity Environmental Action Plan recogniCes this and clearly indicates that environmental res%onsi-ility should -e shared -etween authorities0 industry0 consumers and the general %u-lic. Netherlands and Germany .he 1etherlands and 2ermany are -oth leaders in the use of EMSD-ased a%%roaches for %olicy0 regulatory and management %ur%oses. Since they are -oth mem-ers of the Euro%ean nion0 -oth nations are su-8ect to the 7voluntary regulation7 of EMAS. &n terms of EMS %olicy a%%roaches and regulatory instruments0 however0 these countries %resent @uite different and e@ually interesting %rograms0 each tailored to -uild u%on their res%ective existing legal frameworks and economic conditions .he 'utch 2reen Plan is formally known as the 1ational Environmental Policy Plan. .he current version of the %lan is generally referred to as 71EPP 3.7 .he %lan is com%rehensive0 longDterm and interdisci%linary. Es%ecially significant is the 1EPPs reliance on a management framework to ensure %racticality and functionality. .he em%hasis on 7good management7 in the 1EPP has %aved the way for the ra%id u%take of EMS in the 1etherlands. .he soDcalled 7covenant7 a%%roach is the 'utch model of sectorDs%ecific and facilityDs%ecific regulation0 organiCed through the heavily negotiated0 finely tailored contractual agreements known as 7covenants.7 ;hile the covenant a%%roach does not automatically im%licate the use of EMS0 most of the %artici%ating sectors and facilities have recogniCed the value of the EMS in the covenant model and have incor%orated the EMS conce%ts into their initiatives. &n contrast to the 1etherlands0 which has a high level of EMS im%lementation0 -ut with a relatively low level of %artici%ation in EMAS0 2ermany has used EMAS as its %rimary vehicle for EMS im%lementation. 2erman industry wants that flexi-ilityA the 2erman regulators want to find mechanisms to %rovide that flexi-ility while %reserving accounta-ility. =oth sides view the EMSD-ased EMAS %rogram as %roviding a mutually acce%ta-le vehicle. .his 8oint %osture of government and industry has resulted in an enormous level of acce%tance of EMAS in 2ermany. Partici%ation in EMAS is seen as demonstrating a su%erior level of environmental %erformance through a voluntary mechanism. &n =avaria0 for exam%le0 this has led to the 7su-stitution7 or sim%lification a%%roach through ecoDmanagement. Administrative mechanisms are -eing used to define the range of %ermissi-le su-stitution or sim%lification through EMS. Canada 5anada has -een very active in the &S) "*+++ %rocess0 chairing .5 (+7. .he national standards -ody0 the 5anadian Standards Association has a very %roactive outreach %rogram and has develo%ed excellent su%%lementary materials. .he 1ational $oundta-le on the Environment and the Economy >1$.EE? is res%onsi-le for 5anadaBs accreditation and ca%acityD-uilding efforts related to EMS. =ut the S is 5anadaBs %redominant trading %artner0 and since S com%anies have not considered EMS as much of a re@uirement as from /a%an0 ! or 2ermany0 so 5anada has -een relatively slow to em-race EMS. .he im%lementation %icture a%%ears to -e %oised for a dramatic change. Gooking -eyond the raw certification num-ers0 the true im%act of EMS standards in 5anada is much greater since many com%anies use &S) "*++" as a -enchmark to review their existing systems or to %rovide uniformity across several facilities within a com%any.B Many of these same organiCations have decided to wait to move to the certification stage until additional incentives0 whether regulatory or customerDdriven0 a%%ear. /ust recently0 therefore the Hord and 2&,& actions are sending interest and demand u% and down the su%%lier chain. )ntario in %articular is the center of auto %arts and auto manufacturing in 5anada and is feeling -ig im%act in (+++.

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&n 5anada0 &S) "*++" is %roving invalua-le as a measure of a%%ro%riate due diligence for cor%orate environmental %rograms. 5anadian 8udges have welcomed the advent of an international0 thirdD%arty certifia-le standard for environmental management systems. 5anadian courts have used &S) "*++" in several cases to date. .he Pros%ec 5hemical case0 decided in Al-erta0 drew wides%read attention0 not only in 5anada -ut also in the S for its innovative settlement a%%roach utiliCing EMS re@uirements. 5anadian cor%orate environmental %rograms have looked at this case as signaling the acce%ta-ility of &S) "*++" to courts and to the regulators. Gater this year0 the new 5anadian Environmental Protection Act will come into force. .hat statute has an interesting %rovision0 -asically ado%ting as law the notion that court sentences may include the re@uirement of im%lementing an EMS along the lines of a 7recogniCed international standard.7 EMS is -ecoming recogniCed as a tool for moving towards sustaina-ility. 5anada has -een much more rece%tive to -uilding u%on a sustaina-ilityDoriented framework than their S neigh-ors. .he sustaina-ility conce%t is ex%licitly -uilt into a num-er of government and %rivate sector initiatives. &n turn these %rovide vehicles for EMS im%lementation. )ne of the most significant sustaina-ility develo%ments in 5anada is the re@uirement that each Hederal Ministry %re%are a Sustaina-ility Plan. .he %u-lic sector is making the commitment to show the way forward on sustaina-ility in 5anada.

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ENVIRONMENTAL MANAGEMENT SYSTEMS IN THE UNITED KINGDOM

BS 7750 The British Unde pinnin!s "# Environmental anagement

=efore -eginning down the long trek of understanding the develo%ment and im%lementation of EMS and its %otential effects on %u-lic %olicy0 it is im%erative to know and understand the history of the &S) "*++" standard and environmental management systems >EMSs? in general. .he nited !ingdom is a critical element to the EMS %uCCle0 -ecause it is in this country that the EMS 8ourney -egan with the a%%earance of the first national EMS standard in the early "33+s. Additionally0 the !Bs overall history is im%ortant -ecause all of the ongoing initiatives discussed in this section have a direct link to the future environmental %olicy of the nited !ingdom and many other countries around the world. .he nited !ingdom continues to -e the worldBs leader with EMS initiatives. Some o-servers trace the genesis of environmental management systems and the &S) "*+++ series to the "37( nited 1ations 5onference on Iuman Environment held in Stockholm0 Sweden0 which ultimately s%awned a "3J7 re%ort titled Our Common Future. .his re%ort contained the first reference to Lsustaina-le develo%ment.M 5alling for industry to develo% effective EMS to hel% manage their im%act on the environment. =y the end of "3JJ0 more than 5+ world leaders had %u-licity su%%orted the re%ort. .he nited 1ations then convened the .1. 5onference on Environment and 'evelo%ment D the Earth Summit D in $io do /aneiro in /une "33(. .o %re%are for that summit0 the &nternational )rganiCation for StandardiCation >&S)? in 2eneva0 SwitCerland0 esta-lished the Strategic Advisory 2rou% on the Environment >SA2E? in "33"0 to make recommendations regarding international standards for the environment. After much discussion and de-ate0 the $io Summit and the SA2E meetings eventually -egan to solidify the conce%t of an EMS standard that could -e utiliCed across all industry sectors on a glo-al scale. At that time0 efforts to create a single0 generic0 internationally recogniCed EMS standard were >and still are? driven -y the desire among com%anies to avoid du%licative Dand sometimes com%etitiveDcor%orate and governmental %rograms0 and -y the need for o-8ective validation of their commitment to the environment. Such efforts -egan on several fronts glo-ally0 -ut one clearly led the way to &S) "*++"0 the worldBs most visi-le and recogniCa-le standard for environmental management. &n the early "33+s in England0 the =ritish Standards &nstitution >=S&? develo%ed British Standard 7750: Environmental Management Systems, as a com%anion to its =S 575+ standard on @uality management systems. =S 575+ was the forerunner and tem%late for the &S) 3+++ @uality management system standards0 which gained huge %o%ularity for organiCations of all ty%es and siCes to esta-lish @uality management at all levels of %roduction. =S 775+ was the national EMS standard for the nited !ingdom0 -eginning in "33(. Along with other national standards0 including those develo%ed -y /a%an0 5anada0 &reland0 S%ain and Hrance0 =S 775+ eventually formed the -asis of &S) 14001 devel o%ment. &n fact0 the nited !ingdom0 and more s%ecifically0 =S&0 -ecame the secretariat organiCation within &S) .echnical 5ommittee (+7Dthe international grou% of ex%erts created from the SA2E meetings to develo% the &S) 14000 seriesDto lead the charge to develo% &S) 14001. 5ountries %artici%ating in SA2E0 which included most of the industrialiCed and develo%ing world economies0 s%ent nearly two years studying =S 775+ and other national EMS standards to determine the need for a standardiCed a%%roach concerning environmental management. .he reason to develo% =S 775+ >first %u-lished in "33(?0 and ultimately0 &S) 14001 >%u-lished in "336?0 was threefold for ! industry and government#

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". .he %assage of the

! Environmental Protection Act in "33+A

(. .he early draft of the Euro%ean nionBs >E Bs? EcoDManagement and Audit Scheme >EMAS? %rogram in 'ecem-er "33+ >%u-lished in "333 and u% for revision again in (+++?A and 3. Pressure from the %u-lic and %oliticians concerning the environment. .he -asic goals of =S 775+ were to validate a com%anyBs com%liance with its stated environmental %olicy and to re@uire that the com%any demonstrate that com%liance to others. &t was also written s%ecifically to -e com%ati-le with the &S) 3+++ series on @uality management and with the re@uirements of the E Bs EMAS0 which will -e discussed later in this %resentation. =S 775+Bs first draft was develo%ed @uickly in the nited !ingdom to address the needs of the market0 and was involved in a %ilot %rogram with over 3++ com%anies within "( months of the conce%tion stage. >5onversely0 &S) 14001 took four years to develo% and %u-lish its first draft.? !e"ining Environmental anagement

Eventually0 ex%erts in the nited !ingdom and around the world took the conce%t of =S 775+ and develo%ed the scheme of a standardiCed EMS called &S) 14001. .hose ex%erts defined the EMS conce%t as the as%ect of an organiCationBs overall management structure that addresses the immediate and longDterm im%act of its %roducts0 services and %rocesses on the environment. Additionally0 that conce%t ho%ed to %rovide order and consistency in organiCational methodologies through the allocation of resources0 assignment of res%onsi-ilities0 and ongoing evaluation of %ractices0 %rocedures and %rocesses. .he idea worked0 and @uickly caught on in 2reat =ritain and in other %arts of Euro%e0 as %u-lic concern over industryBs im%act on the worldBs environment increased. &ndeed0 %u-lic o%inion on the environment continues to -e a ma8or driver for E&,&Ss. .hen and today0 %olitically oriented -odies0 such as environmental advocacy organiCations0 watchdog grou%s and the 7green7 %arty that esta-lished a foothold in the =ritish Parliament0 urged -usinesses to take res%onsi-ility for their environmental effects. .his %ressure from the %u-lic sector led to a rise in %ro%osed and enacted environmental legislation worldwide. =ut there was great concern over the ado%tion and certification of too many different standards in the Euro%ean and glo-al markets0 which many feared would lead to trade -arriers -etween nations and costly and often du%licative systems to address environmental concerns. .his eventually led to the ado%tion of &S) "*++" not only in the nited !ingdom in "3360 -ut also throughout Euro%e and 1orth America soon after. &t was not an easy transition0 however0 to make the switch from =S 775+ to the international &S) "*++". &n the early "33+s0 many viewed =S 775+ as -eing more %rescri%tive than &S) "*++". &S) "*++" incor%orated many of the re@uirements of =S 775+ as an a%%endix0 which makes them guides only0 not re@uirements. Hor exam%le0 =S 775+ did not s%ecifically re@uire that com%anies %u-licly disclose environmental %erformance informationD-ut the language strongly leaned in that direction. As it is currently written0 &S) "*++" re@uires organiCations to communicate their environmental %olicies to interested stakeholders0 -ut does not re@uire %u-lic disclosure of environmental effects. Iowever0 a list of environmental effects is included in an annex to &S) "*++" as suggested items to consider during im%lementation. &ndeed0 economic indicators are increasingly -ecoming a ma8or factor for im%lementation and certification of &S) "*++" for industry. &n fact0 in 1ovem-er "3330 the (03++ mem-ers of the Gondon Stock Exchange announced that they would re@uire annual re%orts from its firms in (+++

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to detail how they identify and co%e with financial0 environmental and other risks in order to -e listed on the exchange. The Current #S$ %&00% S'enario and the E'onomy HastDforwarding to the current environmental situation and &S) "*++"Bs role in the nited !ingdom0 the effect has -een su-stantial to -usinesses of all ty%es0 government agencies and to the environment itself. 2lo-ally0 environmental awareness0 es%ecially in the Euro%ean nion0 ex%erienced a dramatic surge in the "33+s0 as technology allowed more information to -e distri-uted at a much faster rate to consumers and investors. Similarly0 organiCations that affected the environment em-raced &S) "*++" and environmental management as a %otential res%onse to that awareness0 in terms of communication >as a registered com%any to an internationally recogniCed standard? and as a new0 innovative avenue to address legal concerns. Since Se%tem-er "3360 when &S) "*++" was %u-lished0 an estimated "30+++ organiCations around the world have im%lemented and received an inde%endent0 third %arty certification of that system -y an accredited registrar. .he nited !ingdom accounts for an estimated "0+++ certifications0 currently ranked third -ehind /a%an and 2ermany with the highest num-er of certifications. =ut these figures0 some ex%erts say0 are only a @uick glim%se at &S) "*++" trends. ;hile these figures do re%resent a measurement of actual certifications0 some ex%erts -elieve a more so%histicated measure can -e o-tained -y taking into account a countryBs level of economic develo%ment0 as measured -y gross domestic %roduct >2'P?0 %o%ulation statistics0 as well as the num-er of certifications. Sim%le certification counts acknowledge some trend informationA >for exam%le0 the electricalEelectronics0 chemicals0 steel and car manufacturing industries re%resent the largest num-er of certifications from that data0 >most likely -ecause those industries often have the greatest im%act on the environment and to the worldBs natural resources?. =ut that information does not account for the %ractice of environmental management itself0 or the many factors that may account for the certification num-er differences -etween countries0 such as su%%lyDchain %ressure0 regulatory concerns and other factors that weigh heavily on industry in different sectors. Additionally0 a%%lying economic indicators to those figures gives the num-er of certifications for to% countries a different look# /a%an is "st -y num-er of certifications0 "3th -y %o%ulation0 and "Jth -y 2'P .he nited !ingdom0 on the other hand0 is 3rd0 "*th and "7th res%ectively0 and the nited States0 7th0 Jth and 37th0 according to information %rovided -y the Iungarian Association for Environmentally Aware Management. &ndeed0 economic indicators are increasingly -ecome a ma8or factor for im%lementation and certification of &S) "*++" for industry. &n fact0 in 1ovem-er "3330 the (03++ mem-ers of the Gondon Stock Exchange announced that they would re@uire annual re%orts from its firms in (+++ to detail how they identify and co%e with financial0 environmental and other risks in order to -e listed on the exchange. .his move -y the &nstitute of 5hartered Accountants >&5A? in England and ;ales is a conse@uential ste% toward holding directors and managers accounta-le for significant environmental0 ethical and social risks as well as financial threats. &t also is an im%ortant move toward making a firmBs environmental infrastructure more trans%arent in ways that -etter inform investors0 lenders and insurers.

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At least 5++ firms with head@uarters outside the nited !ingdom are listed0 including many from the nited States. .S. sectors re%resented include automotive0 %harmaceuticals0 finance0 energy0 electronics and communications. .he Gondon Stock Exchange is the fourth largest in the world as measured -y market value0 following 1ew Nork0 1AS'AF and .okyo. .he 'ow /ones in the nited States also created a similar index of environmental information for the same reasons in )cto-er "333. >See nited States summary for more information.? .he %ower of the Gondon Stock Exchange rule is in the information it re@uires as much as in actual com%any %erformance on environmental factors. Hor exam%le0 the stock exchange will allow com%anies to say why they are out of line with the risk management re@uirement0 -ut it is ex%ected that such admissions risk the financial -ottom line or consumer confidence. Ex%erts say the re@uirement will force this ty%e of risk visi-ility onto the -oard room agenda0 ultimately changing attitudes with cor%orations and investors. Additionally0 they say more %u-lic information regarding the environment will add credi-ility to the organiCationBs re%utation for success. &n the nited !ingdom0 a good exam%le of that re%utational risk was that of Shell )il0 which received harsh criticism in the "33+s for its dealing with la-or and human rights issues in the country of 1igeria and the decommissioning of an oil %latform in the 1orth Sea. .he com%anyBs stock %rice %lummeted following the news when shareholders assaulted ShellBs =oard of 'irectors for immediate action in Gondon in May "337. .hat confrontation %roduced Shell %olicies that included greater shareholder and stakeholder access to information regarding the environment. .he Shell =oardBs commitment to acce%t ultimate res%onsi-ility for environmental and ethical conduct received excellent review in the following months. Since "3370 systems0 including environmental management systems0 can fit into the %lans of those %rofessions. Similar to &S) "*++"0 the &5A code of the Gondon Stock Exchange re@uires clear0 measura-le o-8ectives0 8ust as many legislative %olicies do glo-ally. S%ecial attention is %aid to significant risks0 -ut care is advised to avoid creating new -usiness -ureaucracies and excessive %a%erwork. Similar to EMAS0 Euro%eBs environmental management system0 the &5A code carves out a strong role for em%loyees in the managing of environmental risk and achievement of environmental %erformance. &t asks the com%any to 7communicate to its em%loyees what is ex%ected of them and the co%e of their freedom to act.7 Environmental %rotection is es%ecially mentioned as an area where em%loyees have the knowledge0 skills and tools to su%%ort the achievement of the com%aniesB o-8ectives0 including the legal arena. .his is a key area of develo%ment for all involved in &S) "*+++ and EMSs in general. ;ith &5A0 em%loyees must have 7esta-lished channels to re%ort sus%ected -reaches of laws or regulations#B and strong attention is %aid to the need for em%loyees and management to com%ly with the code0 ena-ling them to %roduce an honest and com%lete re%ort to the Stock Exchange. 1oncom%liance with the re%orting code will result in an 7em-arrassing disclosure0 which could attract the attention of the %ress0 shareholder activities and institutional investors#B according to &5A. Environmental (eporting and the E S )in* .he recent develo%ments at the Gondon Stock Exchange0 the &5A 5ode and the 'ow /ones are the direct result of the worldBs need to o-tain more and more credi-le data regarding the

.owards a 1ational EMS Policy and Strategy 4 Ma8or 5ountry $e%ort "6

environment0 environmental management and other riskD-ased assessments.9 &nvestors0 consumers and the general %u-lic now have increased access to relevant data to make more informed decisions with financial investments as well as the %roducts for %urchase. .hese stakeholders are 8ust -eginning to -ecome aware of the %otential linkage -etween EMS and environmental re%orting. .he conce%t known as 7environmental re%orting7 is0 in itself0 a growing trend in the nited !ingdom and throughout the world0 es%ecially with large0 multinational organiCations. &n fact0 according to a recent re%ort issued -y Pensions and &nvestment $esearch 5onsultants in the nited !ingdom0 65 %ercent of com%anies re%ort in some form on environmental issues0 -ut not in ways that are com%ara-le or consistent. .he re%ort also states that environmental re%orting is more develo%ed among [Link] "++ firms >J3 %ercent? than [Link] (5+ firms >55 %ercent?. .here are wide sectoral differences# mineral extractionD"++ %ercent of firmsA oil ex%loration and %roductionDJ6 %ercentA 57 %ercent of the electrical and electronic e@ui%ment sectorA 33 %ercent of financialsA and 6 %ercent of investment trusts. Another re%ort from !PM2 shows that a third of the worldBs (5+ largest com%anies0 mainly multinationals0 now %u-lish a standalone environmental re%ort. .here is a wide variation -etween sectors0 with higher re%orting levels in those areas %erceived to have a greater %otential environmental im%act >%harmaceuticals0 chemicals0 trans%ort0 etc.?. Additionally0 more recent environment re%orts %lace greater em%hasis on em%loyee involvement0 su%%lier re@uirements and sustaina-le develo%ment than in the %ast. =ut again0 there is no standardiCed a%%roach to environmental re%orting0 and this issue has caused significant de-ate within the &S) "*+++ community as to how0 and indeed if0 environmental re%orting should -e linked to standardiCed EMSs. .he argument is that the -eauty of &S) "*++"0 a voluntary standard0 is its flexi-ility to -e ado%ted -y any ty%e of organiCation to reduce environmental im%act and instill the conce%t of continual im%rovement throughout all levels of the organiCation concerning waste reduction0 legal com%liance and myriad other environmental issues. &ndustry ex%erts -elieve that this flexi-ility is one of the most im%ortant values of &S) "*++" and EMS im%lementation0 and if &S) "*++" -egins to %rescri-e mandatory re%orting of environmental issues0 then the flexi-ility will -e lost and the ma8ority of small D and mediumDsiCed enter%rises will not -e a-le to im%lement the standard -ecause of increased costs and augmented lia-ility issues. Iowever0 other ex%erts -elieve the conce%t of environmental re%orting is inevita-le in the longDterm0 as the hunger for information continues to grow in this area. &S) "*++" ex%erts %lan to examine the issue during the revision %rocess0 already underway0 with ho%es of a revised version of &S) "*++" -y (++3. =ut many organiCations in the nited !ingdom already have initiated %lans to re%ort environmental information0 or have esta-lished %artnershi%s with relevant organiCations to %rovide the environmental data needed to make sound decisions. &n fact0 an a96reement was reached in late "333 -etween the )rganiCation for Economic 5oo%eration and 'evelo%ment >)E5'? nations to exchange environmental information -efore investing in large overseas %ro8ects. .he intention is that -y exchanging such information0 investment in environmentally damaging %ro8ects can -e avoided. .he agreement is also a first ste% toward international rules on ex%ort credits and the environmentDsomething that could have %rofound effects concerning the continuing de-ate on the "337 !yoto Protocol on 5limate 5hange issue for all nations0 including /amaica. Many ex%erts0 including those within the nited 1ations Hramework 5onvention on 5limate 5hange >the grou% that devised the !yoto %act?0 -elieve &S) "*++" and others in the &S) "*+++ series could %lay a significant role in re%orting relevant environmental information and reducing greenhouse gas >2I2? emissions to the ProtocolBs stated o-8ectives. #S$ %&00% and +oli'y #mpli'ations in the United Kingdom

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A$ In#%sin! EMS in&" P%'(ic P"(ic) . A num-er of initiatives have emerged in the !ingdom lately linking governmental %olicy to EMSs. .hey include#

nited

". .he 'e%artment of Environment and .rade >'E.$? and the 'e%artment of .rade and &ndustry >'.&? actively su%%ort &S) "*++"EEMAS in all %olicy and -oth are actively referenced in "333Bs Sustaina-le 'evelo%ment Strategy titled 7A =etter Fuality of Gife7 >%u-lished May "333.? (. .he 'E.$Bs advice to those sites affected -y the new E 'irective on &ntegrated Pollution Prevention and 5ontrol >&PP5? is to im%lement the ! $egulations via an EMS >this will affect over 70+++ 7installations7 under ! $egulations0 including the food and drink industry for the first time?. 3. .he Iealth and Safety Executive >ISE?0 the ! Iealth and Safety regulatory -ody0 is also em%hasiCing the use of a cor%orate EMS to im%lement the 5ontrol of Ma8or Accidents and IaCards >5)MAI? 'irective0 which came into force in A%ril "333. *. Hollowing a re%ort -y the Environmental Audit >Select? 5ommittee into the 2reening 2overnment &n@uiry0 the ! 2overnment has res%onded with a %olicy commitment that all ! government de%artments and next ste% agencies should ado%t EMSs with at least one ma8or site %er de%artment covered -y certification -y (++". .he committee also recommended that all government de%artments should 7take a stronger management systems a%%roach..7 to their %rocurement activities. .his0 in effect0 %laces the onus on the ! government to green its E*+ -illion a year of %rocurement activity Da ma8or market driver to EMS im%lementation. 5. .he ! government is nearly ready to reDlaunch its 7Making a 5or%orate 5ommitment >MA55? 5am%aign7 >originally focused on energy efficiency alone? with a wider focus aimed at getting ! -usinesses down the EMS route. 6. .he '.&0 working with =S&0 8ust develo%ed a new EMS Small =usiness Scheme >EMS(SME? with a %ilot due to start in He-ruary (+++ with (5+ com%anies and *++ individual training delegates. '.& grantDinDaid su%%ort has -een %rovided for the %ro8ect. B$ EMS *nd S%s&*in*'i(i&) P"(ic)$ A new %artnershi% -egan an early develo%ment %hase late last year in Gondon to link industry0 government and environmental grou%s com%letely through the use of EMSs0 &S) "*+++ and other sustaina-le -usiness %ractices. Pre%aring %roactively for the years ahead0 a federation of organiCations is now gearing u% to launch the second %hase of a %ro8ect that could someday -e the re%lacement standard for &S) "*+++0 Social Accounta-ility J+++ and the myriad other guidance documents now a%%earing in the market%lace to achieve some level of sustaina-ility. &ts name is the S&2MA Pro8ect >Sustaina-ility integrated 2uidelines for Management?0 and its %otential to do for sustaina-ility what &S) "*+++ is doing for environmental management in the nited !ingdom and other %arts of the world is @uite real. 5reated -y the nited !ingdomBs '.&0 =S&0 the Horum for the Huture and the &nstitute of Social and Ethical Accounta-ility >&SEA?0 the S&2MA Pro8ect ho%es to esta-lish a strategic management framework for sustaina-ility within the next two years. According to %ro8ect officials0 %rogressive com%anies in the nited !ingdom and others worldwide already have a great deal of ex%erience in tackling sustaina-ility issues0 -ut the lessons learned need to -e drawn out and translated into a generic framework that can -e a%%lied across industry as a whole. &t is the same scenario discussed earlier concerning =S 775+ and &S) "*++"0 only

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incor%orating the conce%ts of environmental and social accounta-ility re%orting and other sustaina-le -usiness %ractices. '.& officials say that thereBs a growing recognition in the market%lace concerning the environmental management systems the world now has0 including EMAS and &S) "*++". =ut the new %ro8ect ho%es to tackle not only the environmental %ro-lems of today and yesterday0 -ut also the as%ects of technology and the economy0 as well as the social and the ethical s%heres of the future. According to newly released literature on the %ro8ect0 successful com%anies can no longer afford to ignore sustaina-ility. .he %ressures are coming from all directions government0 consumers0 communities and organiCed grou%sDfor -usinesses to -e more environmentally and socially res%onsi-le and have higher ethical standards. At the same time0 the drive to -oost com%etitiveness and shareholder value for -usiness in the nited !ingdom is stronger than ever. 7Sustaina-ility is all a-out striking a -alance -etween these different %riorities#B the %ro8ectBs descri%tion states. .he !Bs Sustaina-le 'evelo%ment Strategy0 %u-lished in May "3330 defines sustaina-ility with four o-8ectives# Social %rogress that recogniCes the needs of everyoneA Effective %rotection of the environmentA Prudent use of natural resourcesA and Maintenance of high and sta-le levels of economic growth and em%loyment.

Scheduled to com%lete the sco%e develo%ment %hase in He-ruary (+++0 which includes a com%rehensive survey of existing tools and standards in the environmental0 social and economic fields0 followed -y a ga% analysis to identify where new work is re@uired0 the S&2MA Pro8ect %lans to head into the new millennium -y recruiting (5 organiCations to ex%eriment with new tools and standards as they are develo%ed.

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.owards a 1ational EMS Policy and Strategy 4 Ma8or 5ountry $e%ort (+

ENVIRONMENTAL MANAGEMENT SYSTEMS+ REPORT ON U$S$ IMPLEMENTATION AND POLICY DEVELOPMENTS

In& "d%c&i"n .his section of the re%ort discusses current im%lementation trends and antici%ated %olicy directions in the evolving develo%ment and use of Environmental Management Systems >EMSs? in the nited States. .he im%lementation exam%les and technical as%ects of EMSs in use in the .S. are diverse0 wides%read and referred to here only generally for the %ur%oses of discussing their increasing ado%tion. .he thrust of this re%ort is to shed light on %olicy develo%ments at the state and federal level regarding the %romotion of EMSs as a matter of %romoting environmental im%rovement and further aligning it with economic efficiency. Iistorically0 the nited States has led the world in successfully defining contem%orary environmental %rotection. .hese environmental gains have -een achieved at great cost through heated legal and %olicy de-ates characteristic of the .S. environmental movement. So far0 this com%lex and im%erfect assem-ly of commandDandDcontrol re@uirements has contended well with numerous diverse forms of %ollution inherent to a dilating economy. 'ramatic turns in the economy0 however0 and unforeseen changes in manufacturing suggest that more ada%tive0 %erformanceD-ased environmental management methods are needed. &n the nited States0 as elsewhere0 environmental %rotection must increasingly rely on innovations in environmental management if a more advanced environmental management framework is to emerge early in the ("st century. .he %olicy dialogue in the nited States views EMSs as an im%ortant emerging tool that hold %otential for linking -usiness logic with environmental goals and res%onsi-le stewardshi% for actual environmental im%rovements -eyond what the %resent configuration now offers. As the PresidentBs 5ouncil on Sustaina-le 'evelo%ment >P5S'? said0 7/allone0 environmental management systems >including B%ro%erly certified &S) "*++" systems? do not necessarily ensure im%roved environmental %rotection and %erformance. $ather0 effective EMSs can %rovide significant structural su%%ort for im%roving %erformance if cou%led with @ualitative and @uantitative %erformance commitments and goals7 >P5S' "3330 %. *J? Environmental anagement Systems in the United States

A diverse grou% of organiCations0 associations0 %rivate cor%orations and governments have -een develo%ing and im%lementing various EMS frameworks in the nited States and other %arts of the world for the %ast (+D3+ years. Hor exam%le0 the 5hemical Manufacturers Association created its own framework called $es%onsi-le 5are in 19 ! &n addition0 the Hrench0 &rish0 'utch and S%anish governments develo%ed their own voluntary EMS standards in the 19 0s and 1990s, and %erha%s more im%ortant was the develo%ment of =S 775+ in the nited !ingdom0 the founding document of &S) "*++". >See discussion in ! section a-ove.? Pro-a-ly the most telling develo%ment surrounding the use of EMSs is the ado%tion and %roliferation of the &nternational )rganiCation for StandardiCation >&S)? Environmental Management Standard0 the &S) "*++" EMS standard0 finaliCed in Se%tem-er "336. $evisions have now -een %ro%osed0 -ut the intent of this standard is to %roduce a single framework for EMSs0 which can accommodate varied a%%lications all over the world. &n the nited States0 &S) "*++" im%lementation and certification was slow to take off during the first two years0 as a num-er com%anies took a 7wait and see7 a%%roach to the standard. .his was due to a num-er of reasons0 which included mixed regulatory signals from the EPA and state enforcement -odies0 as well as limited outreach efforts -y the American -odies res%onsi-le for

.owards a 1ational EMS Policy and Strategy 4 Ma8or 5ountry $e%ort ("

the develo%ment of the &S) "*+++ seriesDthe American 1ational Standards &nstitute and the .S. .echnical Advisory 2rou% to .echnical 5ommittee (+7. &n Se%tem-er "3370 one year after the final %u-lication of &S) "*++"0 only 3* com%anies had received thirdD%arty certification to the standard. .hose com%anies were mostly from the chemical and electronics sectors. >those sectors continue to lead in certification num-ers today.? =ut -y He-ruary "33J0 &S) "*++" certification num-ers in the nited States -egan to increase significantly0 with larger com%anies such as the &=M 5or%.0 Hord Motor 5o. and Gockheed Martin certifying to the standard with great vigor0 and total certi fication num-ers nearing "++. .hat year also ex%erienced increased activity within the .S. Envir9Jnmental Protection Agency0 which launched several EMS initiatives and released a %osition statement on the %u-lic %olicy im%lications of &S) "*++" and EMS im%lementation in the nited States. .he %rivate sector -egan to react %ositively as well to EMS -enefits following the EPA %osition statement. Soon after0 &=M announced that it would strongly encourage its hundreds of su%%liers worldwide to im%lement an &S) "*++" system0 8ust short of a re@uirement of doing -usiness. /ust a few months later0 the Oerox 5or%. issued a similar re@uest to it 3+0+++ su%%liers around the world. .he stage was then set for argua-ly the -iggest develo%ment to date in the nited States concerning &S) "*++". &n Se%tem-er "3330 .he Hord Motor 5o.0 after certifying more than "*+ of its own manufacturing sites glo-ally and %roclaiming the mil lions of dollars it saved in waste minimiCation and other environmental initiatives0 announced that it would re@uire &S) "*++" certification of its su%%liers -y (++3. .he 2eneral Motors 5or%.0 @uickly reacted in the days following the Hord announcement with its own &S) "*++" re@uirement of its thousands of su%%liers. .his single event will likely sha%e the EMS market for the next decade0 as thousands of com%anies will -e affected -y the automotive mandate. At the end of "3330 certification totals to &S) "*++" in the nited States reached a remarka-le 6++0 and are ranked 7th highest heading into (+++. Moreover0 the end of "333 saw more EMS initiatives from the %u-lic sector0 and continued to gain ground as a %olicy tool. .he 5linton administration issued an executive order in late "333 that re@uiring all federal agencies to -egin environmental management system %ilot %ro8ects -y March 3"0 (++(0 and to esta-lish an effective EMS at all federal facilities -y (++5. .he federal mandate will directly affect all "6 de%artments in the Executive -ranchDwhich includes more than "50+++ federal facilities0 %lus other agencies as well0 such as the .ennessee ,alley Authority0 the 2overnment Printing )ffice and the .S. Postal Service. .he draft order0 tentatively titled 72reening the 2overnment .hrough Geadershi% in Environmental Management#B will re@uire a system -ased on the .S. Environmental Protection AgencyBs 5ode of Environmental Management Princi%les >5EMP? or other a%%ro%riate existing EMS standards0 such as &S) "*++". )ther significant %olicy initiatives em-racing the EMS framework include reinven tion activities at EPA0 and the final re%ort of the S PresidentBs 5ouncil on Sustaina-le 'evelo%ment in May "333. EPA also issued two re%orts concerning EMSs# .he first was in August "333 and titled0 7Aiming for Excellence# Actions to Encourage Stewardshi% and Accelerate Environmental Progress7 .he re%ort included a strong commitment to utiliCing environmental management systems a%%roaches0 the first such clearly %roactive statement on EMS from EPA0 and a further agency commitment to develo% a %erformance track or alternate regulatory %athway. Such an initiative will likely rely heavily on EMS im%lementation and third %arty certification. .he second EPA re%ort came in 'ecem-er "333 in a draft form0 which will -e the agencyBs Action Plan for E&,&Ss. .his new %lan is the most com%rehensive %olicy a%%roach concerning &S) "*++" to date in the nited States0 and will likely garner significant discussion and de-ate in the early months of (+++. >See attachment.?

.owards a 1ational EMS Policy and Strategy 4 Ma8or 5ountry $e%ort ((

Testing the E S Ground .esting the environmental management %erformance of E&,&Ss is now a central fea ture of most reform initiatives in the .S. regulatory scheme. Hor instance0 the MultiDState ;orking 2rou% >MS;2?0 now re%resenting nearly all of the states0 has entered a %ilot research %rogram with .S. EPA and niversity of 1orth 5arolina s%ecifically to test and measure how EMSs may achieve -etter environmental %erformance. .he .S. Environmental Protection AgencyBs Pro8ect OG0 the Environmental Geadershi% Program0 and the Star .rack %rogram all recogniCe and rely on the voluntary use of effective EMSs in one way or another as %art of a overall %rogram of com%liance assurance. Similarly0 several states including 5onnecticut0 Hlorida0 Massachusetts0 1ew /ersey0 )regon and ;isconsin have created alternative or su%%lementary regulatory %rograms >See A%%endix A? that offer various administrative incentives for %artici%ating com%anies. Most state and federal incentiveD-ased or voluntary %rograms re@uire a %artici%ating com%any to have an EMS in %lace in addition to other features0 such as a good com%liance record0 a ro-ust environmental %olicy0 some form of auditing either internally or -y a third %arty and a commitment to continuous im%rovement and -etter environmental results. &n exchange0 the government %rograms usually offer incentives such as 7oneDsto% sho%%ing7 >consolidating %ermit and regulatory activities for greater convenience and efficiency?A some form of audit %olicy to allow a com%any time enough to identify and correct %ro-lems detected -y the EMS or audit >not to -e confused with state audit %olicies that 7shield7 com%anies from lia-ility or offer them 7immunity#B which is a @uestiona-le %olicy issue?A and ex%edited %rocessing or more flexi-ility for %ermits. Most voluntary or incentive %rograms are focused on com%liance with existing laws0 however0 and use regulations as the measure of environmental %erformance. Third,+arty Certi"i'ation and -uditing S'hemes .he evolution of EMSs directly %arallels the emergence of more accurate auditing methods and registered certification %ractices. Gooking forward to more %erform anceDfocused systems of environmental management and com%liance0 the goal for %u-lic oversight is to model new environmental %rograms to encourage higher levels of %erformance. .o do this0 modern environmental regulatory %rograms will want to enlist only com%anies with com%rehensive EMSs0 whose %erformance is audited and whose EMSs are certified -y accredited third %arties. .he current scheme in the nited States was esta-lished -y a 8oint agreement -etween the American 1ational Standards &nstitute >A1S&? and the $egistrar Accreditation =oard in "3370 formally called the 1ational Accreditation Program0 which accredits all as%ects of the third D%arty %rocessDEMS training courses0 EMS auditors and EMS registrars. .he incentive for a com%any0 for exam%le0 is the o%%ortunity to concentrate all of its annual regulatory and re%orting -urden into a single eventDan annual thirdD%arty certification of the com%anyBs conformance with a com%rehensive EMS that measures and re%orts com%liance and %erformance results. .his strategy0 which many reform %rograms in the nited States are considering0 entails the use of EMSs0 consolidated or unified re%orting and the growing field of registered thirdD%arty auditing and certifying services to verify ongoing or continual conformity with the s%ecified EMS in %lace and o%erating. =ecause of much confusion and concern among -usinesses0 environmentalists and some government officials over the use of EMSs0 it is very im%ortant to distinguish -etween the %rivate sector use of EMSs0 which only measure a com%anyBs %erformance against what it says it wants to measure >which is all that &S) "*++" is su%%osed to do0 although standardiCed?0 and the use of EMSs in a alternative regulatory strategies that setDu% criteria for demonstrating0 auditing and certifying com%liance and other critical information on actual environmental %erformance >sometimes referred to as an EMSD%lus system?.

.owards a 1ational EMS Policy and Strategy 4 Ma8or 5ountry $e%ort (3

)ne im%ortant attri-ute for environmental %rotection and oversight agencies to consider is the develo%ment of an effective and ada%tive environmental audit %olicy. Audit %olicies must s%ecify0 regardless of the ty%e or sco%e of any %articular EMS0 under what conditions a com%any will -e eligi-le to %artici%ate in voluntary %rograms or initiatives0 and under what conditions the agency will reduce0 toll or modify %enalties in exchange for an eligi-le com%any having a demonstra-le system in %lace for meeting0 verifying and re%orting environmental %erformance outcomes. Garger facilities and firms are es%ecially likely to want -enefits from a regulatory relationshi% with an oversight agency ca%italiCing on the environmental %erformance and management information -eing generated from the com%anyBs use of EMSs. =ut for this to occur0 most ex%erts -elieve that accredited thirdD%arty firms should verify the regulatory as%ects of environmental management0 com%liance and %erformance. )ther nonDregulatory as%ects of a com%anyBs environmental management that are not re@uired -y law could -e self Dcertified. Iowever third %arty verification and attestation would increase the %u-lic re%orting value. &n either case0 third %arty certification to verify critical %u-lic information and results will -uild greater %u-lic confidence than selfDauditing and certification. .ogether0 these tools %rovide a management techni@ue for demonstrating im%roved %erformance0 which is something most current regulatory systems do not do. #n"ormation anagement

&n any system for managing and %rotecting human health and the environment0 whether it is a %erformanceDfocused system utiliCing EMSs or the traditional regulatory system0 %erformance -aselines >i.e.0 -enchmarks? need to -e esta-lished for facilities0 firms and sectors. $egardless of the difference -etween firms and sectors0 the information collection or retrieval system should -e set u% in a crossDsectional way so that each %iece of information %erforms multi%le 8o-s# Provides environmental %erformance -aseline or -enchmarks re%orting infor mation >e.g.0 energy efficiency0 water usage0 discharge0 releases0 toxins usage0 resource %roductivity0 etc. on 3D* levels >facility0 firm0 sector?A 5ollects information that satisfies regulatory re@uirements -ut also shows com%liance assurance and environmental %erformance resultsA Monitors0 calculates or tracks am-ient environmental conditionsA $[Link]!now information for communities >i.e.0 accounta-ility?A and &m%rovement or %rogress >this information is useful to the government0 financial community0 and the %u-lic?.

.his kind of information -ase is already -eing constructed -y EPA in coo%eration with the MS;2 in an EMS re%orting %rocess that feeds into EPAPs 5enter Environmental &nformation and Statistics. A set of common environmental %erformance0 management and com%liance met rics also need to -e advanced in order to im%lement %erformanceDfocused use of EMSs. Several multiDstakeholder grou%s have recommended what these set of re%orting indicators ought to include >e.g.0 Environmental 'efense HundBs scorecard0 2lo-al $e%orting &nitiative >2$&?0 5ommon Sense &nitiativeEElectronicsB 75 $EM0 Environmental Geadershi% Program0 Star .rack0 $es%onsi-le 5are0 and the MultiDState ;orking 2rou% >MS;2?. .here is agreement enough on these core information elements to get started >most are known and can -e gleaned from a half doCen initiatives that have already -egun to answer this @uestion?. .he coDgenesis of information management technology0 as well as consolidated0 electronic and 7oneDsto%7 re%orting0 are all necessary to fully understanding and utiliCing EMS methodology.

.owards a 1ational EMS Policy and Strategy 4 Ma8or 5ountry $e%ort (*

)ne of the challenges to moving o%erating com%anies and the regulatory agencies into %erformanceDfocused management %rograms is to develo% information management and administrative mechanisms that com%lement the use of EMSs. &n the nited States0 various efforts are underway to consolidate re%orting re@uirements0 offer oneDsto% re%orting or %ermitting registration0 and to convert to electronic re%orting. Each of these costDeffective activities is currently -eing %ursued -y EPA and some states. .he resource savings to -oth the regulated community and government suggest that this form of information re%orting >e.g.0 consolidated and electronic? will shortly -ecome the norm. =ut consolidated and 7oneDsto%7 ty%e re%orting >i.e.0 %ermitting0 registration0 renewals0 etc.? are not yet fully a%%lica-le on a wide scale. !ey facility identifiers -egin to tie the various statutory and regulatory re@uirements of a facility into a single %oint of reference0 -ut the nited States has not as yet offered the a-ility to consolidate all regulatory and administrative re@uirements into a single re%orting and registration event for any of the ma8or o%erating sectors. .he further develo%ment of this ca%acity does not cause a %erformanceD-ased system to fully materialiCe0 -ut it is a critical efficiency ste% and could -e %art of how to organiCe under a sector a%%roach su%%orted -y certified EMSs. .inan'ial #ndustry -nalysis Most financial analysts from insurance0 e@uity or lending institutions will tell investors that it is not the kind of environmental management system that matters. &t is what the com%any has said it was going to do in the EMS0 and whether or not the com%any %roved to do what it said it was going to do. &f a com%any didnBt say that it was going to do much0 and it shows that it didnBt do much0 then that is the story0 regardless of the needs of the environment. Hor exam%le0 a com%any without an EMS could %otentially score much higher in the overall financial analysis de%ending on how well the com%any is %erforming against what it said it would do. .he com%any has to set to some goals and o-8ectives and it has either met them or not. .he financial analyst may not agree with those o-8ectives or goals0 -ut they see that the %olicy and a %rocess are in %lace. ;hat the analyst wants is to go to the com%any or another information source to determine what the com%any views as its environmental management res%onsi-ilities0 and then determine how well the com%any manages itself accordingly or not. 'e%ending on the industry0 lending for instance0 the analyst may try and guide a com%any into an area where0 in his view%oint0 will reduce risk. &n another exam%le0 an insurance com%any will go into a com%any and see that it has had some historical losses. .hat doesnBt mean -ecause a com%any may have had loses that the com%any cannot -e insured. ;hat most analysts are looking for is that a com%any will likely detect and correct %ro-lems as they arise0 and that the organiCation has a framework in %lace0 such as an EMS0 to do this effectively and consistently. According to what the analyst identifies and calculates0 the %rice of stock or credit may vary. &f an analyst assumes0 -ased on the environmental %erformance information he or she receives0 that there was a thirdD%arty verification0 and that analyst is comforta-le with that information and what it shows0 so too will other -uyers and sellers or lenders. Aside from the information that an environmental management system would collect0 and regardless of all the %articulariCed environmental attri-utes and s%ecific as%ects that are sti%ulated -y the com%any0 the use and com%lexity of the EMS reveal com%any -ehavior. .he fact a com%any may or may not have an EMS is showing some ty%e of -ehavior and commitment0 whether or not this information is verifia-le or certified. Potentially0 a thirdD%arty audit or certification of the EMS and the information it %roduces will add another level of certainty to this analysis. Much of the analystBs or lenderBs 8o- is to determine whether or not to assume that the com%anyBs management is committed and should -e extend credit resources. &f a lender sees0 in fact0 a

.owards a 1ational EMS Policy and Strategy 4 Ma8or 5ountry $e%ort (5

com%any is dedicated and it has -uilt in and integrated into the %rocess means for reducing risk and lessening im%acts0 it will -e much more comforta-le that that this level of -ehavior will continue0 -ecause there is money -eing set aside for it. ntil recently0 much of this section on the linkage -etween EMS and Hinancial Analysis may have -een somewhat s%eculative. Iowever0 with the advent of such initiatives as the 'ow /ones Sustaina-ility &ndex and a similar rating %rogram from &novest0 it is likely that this methodology will see ra%id acce%tance within the ;all Street community. -lternative (egulatory +rograms/ Generi' .rame0or* .his outline of a generic alternative regulatory %rogram is synthesiCed from %ro%osed and existing %rograms develo%ed over the %ast 5 or more years. Exam%les include the As%en &nstitute0 Enter%rise for Environment0 S EPA 5ommon Senses &nitiative0 Environmental Geadershi% Program0 Star .rack and Pro8ect OG recommendations. .he conce%t of an alternative regulatory %rogram >e.g.0 alternative or innovative regulatory strategies0 %athways0 etc.? is increasingly recogniCed as a %otential regulatory transition tool -y various interests from -usiness0 government and the environmental community. 1early all such %rograms rely on the im%lementation or existence of varying forms of Environmental Management Systems >EMSs?. $easons cited for im%lementing or authoriCing such a %rogram include the following# $esources are increasingly constrained0 making it im%erative to identify ways of achieving environmental goals more effectively and more efficiently. Environmental managers at com%anies in %artnershi% with an active grou% of community or environmental stakeholders are sometimes well %ositioned to ex%eriment and decide what a%%roaches will yield -etter environmental results than can -e achieved under existing or foreseea-le regulations. ;ith %ro%er safeguards0 allowing flexi-ility can su-stantially reduce com%li ance costs and make industries more com%etitive0 %rovide for much greater community involvement in the decisions of their neigh-oring industrial %lants0 foster coo%erative %artnershi%s and encourage greater innovation and -etter results in meeting environmental goals.

5oo%erative com%liance strategies utiliCing EMSs and that -undle small D or mediumDsiCed enter%rises together as units under an alternative com%liance %ro%osal0 or agencies acting in %u-licE%rivate %artnershi%s as a%%licants with multi%le entities0 can achieve outcomes with significantly greater environmental com%liance rates for entire industry sectors or regions. .here are two -asic models of an alternative regulatory %rograms for Environmental Management Systems# a. Pilot %rograms to test out new ideasEa%%roaches with EMSs for -roader reform of generic environmental management %rogramsE%rocesses >i.e.0 general system lessonsA -etter facility -ased management?. -. A variance or alternative regulatory %rogram that %romotes environmental %erformance and im%rovements -y offering %artici%ating entities flexi-ility for meeting environmental %erformance goals through contractual commitments -ased on EMS and %erformance criteria rather than under the commandDandDcontrol re@uirements alone. .hese conce%ts are not mutually exclusive. &n -oth cases0 however0 an array of minimal re@uirements0 safeguards and authority are necessary for %roviding a foundation that allows %artici%ating com%anies to transition from a com%lianceD-ased management a%%roach to a %erformanceD-ased a%%roach that utiliCes EMSs0 auditing0 %u-lic re%orting and certification.

.owards a 1ational EMS Policy and Strategy 4 Ma8or 5ountry $e%ort (6

.he general %ur%oses for an alternative regulatory %rogram are -ased on the need to antici%ate the future of our environmental management framework. .o do this0 %rograms designed to authoriCe trial ad8ustments to existing environmental regulatory re@uirements calculated to measura-ly im%rove environmental results are emerging at -oth the state and federal level of government. .hese %rograms su%%lement an agencyBs current ca%acity to oversee environmental %rotection -ut allow greater variance with existing legal re@uirements under certain conditions. Such %rograms also %rovide regulatory lessons and information a-out the transition to a future environmental management. Alternative regulatory %rograms com-ine exam%les of economic efficiency0 environmental management systems and %ollution %revention that em%hasiCe -etter environmental results under systematic controls designed to inform changes to the existing management framework. Most state and federal alternative regulatory %rograms re@uire some form of EMS0 -ut also go on to re@uire %erformanceDoriented commitments. Hor instance0 %rograms tend to feature# a. .hat the a%%licantBs %ro8ect in total must %rovide documented antici%ation of 7su%erior environmental %erformance7 >SEP? or -etter environmental resultsA and i. .he 7%ro%ortionality7 of the -etter environmental result to the degree of flexi -ility sought should -e considered or weighed -y im%lementing agency. A %ro%ortional -alance should also -e sought -etween the level accounta-ility and the modifications soughtA Some 7nexus7 should exist -etween the environmental resultE-enefit and the regulatory modifications sought although a -alance of environmental im%rove ments >e.g.0 %ollution %revention? could -e identified through the stakeholder %rocessA Pro8ects that seek overall reductions in releases should not result in any signif icant increase in existing releases that adversely affect individuals0 any %o%ulation or natural resource. Pro8ects cannot shift or trans%ort %ollutants that %ose significant risks of adverse effects from one %o%ulation to anotherA su-8ect any %erson or %o%ulation to un8ustDor dis%ro%ortionate environmental im%actsA and cannot result in any significant increase in the risks of adverse effects to the health of individuals0 any %o%ulation or natural resources.

ii.

iii.

-.

Am-ient health and environmental @uality standards would -e maintained. Exigent circumstances such as nonDattainment status will -e assessed accordingly to %reserve ex%ected regional or mediaDs%ecific goals. Pro8ects that achieve only administrative relief andEor cost savings are a%%rov a-le if some of the savings are a%%lied toward environmental -enefit. 1o s%ecific definition or threshold of environmental -enefit would -e defined -ut would -e left to the stakeholder %rocess su-8ect to a%%roval authority. 'iscerni-le %erformance -aselines0 %ro%ortionality and nexus should -e demonstrated0 however >see >a? a-ove?.

c.

d. S.A!EI)G'E$ P$)5ESS# A stakeholder %rocess meeting the following minimum criteria are usually created for individual %ro8ects# Hull %u-lic disclosure of information and o%en access to stakeholder %roceedings or %rocesses >trans%arency?. Provides for the develo%ment and dissemination of information ade@uate to ena-le verification of environmental %erformance -y any interested %ersons. 5onsensusD-ased decision making >normally advisory although %ro8ects could include other decisional

.owards a 1ational EMS Policy and Strategy 4 Ma8or 5ountry $e%ort (7

rules0 -ut no individual vetoes?0 s%ecific rules and codes of conduct to -e decided -y the stakeholder team >a selfD%olicing system in most %rocesses?. =alanced stakeholder grou%s re%resentative of all interests. Ensures that ade@uate technical su%%ort or resources exist for an effective %rocess. Stakeholder %rocess could -e amended or waived under certain circumstances contingent on a%%roval authority if there is insufficient interest in convening stakeholder %artici%ants. And .he stakeholder %rocess would not -e useful in view of the routine or nonDcontroversial nature of the %ro%osal.

.he recommendation of a -road consensus of the stakeholder grou% is weighed heavily in the a%%roval decision. f. A%%roval would -e -ased on =).I the su-stance of the %ro8ect agreement as well as the im%lementation of the stakeholder %rocess >the %rocess would have to -e documented %rior to a%%roval?.

g. 5riteria for determining SEP or a -etter environmental result should include -enchmarks for new and existing facilities. h. .he a%%roval authority should seek a diverse array of a%%lications -ased on such factors as facility siCe0 %ro8ect sco%e0 %u-licE%rivate %artnershi% and %ollution %revention o%%ortunities0 etc. A%%roved %ro8ects must record and re%ort information sufficient for the agency to measure and evaluate the merits and -enefits ex%ected to -e achieved. i. 8. Each a%%roved %ro8ect would -e evaluated in the context of the overall alternative regulatory %rogram in order to assess generic changes to the management system0 recommend changes in re@uirements and ultimately re%ort to 5ongress. Methodology# A %u-lic %rocess re%resentative of all stakeholder interests should -e em%loyed -y the agency to aid in its overall evaluation of the %rogram.

.owards a 1ational EMS Policy and Strategy 4 Ma8or 5ountry $e%ort (J

.owards a 1ational EMS Policy and Strategy 4 Ma8or 5ountry $e%ort (3

ISO ,-..,+ /APAN

A VIABLE PUBLIC POLICY TOOL TO ACHIEVE SUSTAINABILITY IN

/a%an leads the world -y a wide margin in terms of the num-er of com%anies certified to the &S) "*++" international environmental management systems standard0 nearing the 30+++ mark as of /anuary (+++. =ecause of this tremendous u%take of the standard0 /a%an was chosen as a fundamental case study to understand the various %arameters driving the %rocess of &S) "*++" im%lementation and %olicy making. Since the -eginning0 /a%an has taken a integral role with &S) "*++"Bs develo%ment to %rovide a flexi-le framework for incor%orating and integrating environmental management into the core -usiness decisionDmaking %rocess of /a%anese industry. &t is widely -elieved in /a%an >and elsewhere? that the %ro%er im%lementation of an EMS will im%rove internal organiCational efficiency0 %rovide com%etitive advantage and enhance %u-lic image0 which may o%en the door for regulatory flexi-ility from governmental -odies as well as %referential financial treatment -y insurance and lending institutions. Additionally0 many ex%erts are convinced that the &S) EMS standard will also facilitate international trade0 something vital to /a%anese industry0 which im%orts more than J+ %ercent of its natural resources to %roduce one of the worldBs strongest economies. .his review of the /a%anese ex%erience is to understand the nature of forces %ushing the im%lementation of &S) "*++" in /a%an0 the economic and environmental -enefits of its im%lementation and the feasi-ility of transfera-ility of this %rocess to other countries to develo% a working %u-lic %olicy model for encouraging &S) "*++" im%lementation for sustaina-ility in other countries. "SO 1#001 "m$%&mentation in 'a$an As mentioned -efore0 /a%an is the world leader in ado%ting &S) "*++". .he country -oasts nearly 30+++ registered com%anies0 according to recent figures from the /a%an Accreditation =oard for 5onformity Assessment >/A=?. .hat figure re%resents nearly a @uarter of the worldwide total0 followed -y 2ermany with an estimated "05++ certifications and the nited !ingdom with "0+++. Earlier surveys have consistently identified /a%an as the world leader0 followed -y 2ermany0 and the nited !ingdom0 Sweden and .aiwan. .he trend is likely to continue and according to some forecasts0 the num-er of registered organiCations will dou-le in the next three years. .he myriad organiCations that have achieved &S) "*++" registration in /a%an are also worth noting. .he remarka-le variety of /a%anese organiCations0 from -oth the %rivate and %u-lic sectors0 ranges from factories to government offices to su%ermarkets and also varies in siCes. As in most other countries0 the manufacturing industry such as electrical machinery and e@ui%ment0 chemical0 trans%ortation e@ui%ment0 organic %roducers0 farmers0 and wholesalers0 %aint and coating industries0 accounts for the significant %ro%ortion of &S) "*++" registration. .he list of registered nonDmanufacturing organiCations includes schools0 universities0 -anks0 trading houses and even su%ermarkets. 2overnment agencies are also esta-lishing and registering for EMSs. .he /a%anese Environment Agency0 for exam%le0 is seeking registration0 as are an estimated J+ local governments. More than a doCen local government entities are already registered to the standard. 'es%ite the high num-er of certifications in /a%an0 the reasons for im%lementing &S) "*++" are much the same in this country as they are in the rest of the world. 5om%anies see an EMS as a means of im%roving their environmental %erformance and %u-lic image0 reducing costs -y conserving energy and resources0 motivating em%loyees0 distinguishing themselves from the com%etition and ex%anding their %ool of %otential clients.

.owards a 1ational EMS Policy and Strategy 4 Ma8or 5ountry $e%ort 3+

The #S$ 1000 (ea'tion )ne of the ma8or factors for such elevated certification efforts in /a%an is %erha%s the conse@uence /a%anese industry ex%erienced when the &S) 3+++ series was launched internationally for @uality assurance in the late "3J+s0 according to 5)1SE1S S magaCine. Although those @uality standards are not -inding in terms of legal im%lications0 they @uickly -ecame the international norm in the early "33+s0 and Euro%ean and 1orth American clients insisted that their im%orts fulfill &S) 3+++ re@uirements0 %articularly in the automotive sector. /a%anese com%anies were slow to ado%t &S) 3+++ -ecause of their confidence in their own @uality control systems0 thus0 %utting them -ehind many of their com%etitors in the glo-al market%lace. =ut /a%anese industry and the Ministry of &nternational .rade and &ndustry >M&.&? learned @uickly from the costly lesson0 and when &S) "*+++ develo%ment -egan0 /a%anese firms did not want to ex%erience a similar fate. Ience0 the /a%anese industry res%onded to the environmental management standards >&S) "*++"? right from the -eginning. 'uring the international EMS &S) "*+++ standards develo%ment0 the government and the industries with technology and man%ower0 took the initiative in sha%ing /a%anBs res%onse. /a%anese industries took %art in the %rocess through s%ecial task forces set u% in the /a%an Hederation of Economic )rganiCations >!eidanren? and other industrial -odies. .his is true of -oth the esta-lishment of %rocedural and organiCational systems >esta-lishment of the accreditation and registrationEcertification -odies0 auditors training -odies? and %re%arations -y com%anies. &ndeed0 -ecause of this %roactive effort0 /a%an was one of the first countries to fully em-race the EMS standards0 and M&.&Bs su%%ort and %ush was one of the crucial elements. According to Mr. Nano0 de%uty director of the Standards Planning )ffice within M&.&0 the country ado%ted &S) "*++" s%ecification0 &S) "*++* guidance and &S) auditing standards in "336 to coincide with the &S) timeline0 which also %rovided the infrastructure to esta-lish the certification and accreditation scheme within the same time frame through the /a%anese Accreditation =oard. An ex%onential growth in the registration was o-served since the ado%tion of &S) as /&S. According to /a%anese ex%erts0 many /a%anese com%anies were already im%lementing environmental %rograms that conformed to &S) "*++". .hus0 com%anies such as Sony0 Ionda0 Ashai 5hemical0 &toh Nohkado Su%ermarket0 E-era 5or%oration and many utility com%anies got a head start for im%lementation and the standardBs many -enefits to the -ottom line. Peo%le with extensive work ex%erience in Asia as well as with familiarity with /a%an -elieve a num-er of factors that are uni@uely /a%anese may also have %layed a role in the &S) im%lementation. !insella >,P of S5S Engineers0 an international environmental consulting firm -ased in =ellevue0 ;ash.? -elieves that larger industries in /a%an are 7moving ahead under voluntary suggestion7 with the /a%anese Ministry of &nternational .rade and &ndustry. A growing %ercentage of /a%anese com%anies indicate that they will -e &S) "*++" com%liant0 if not certiD fied in the coming months. Additionally0 /a%an is an early leader in getting -eyond its own -orders0 with its ma8or com%anies even seeking &S) "*++" certification in overseas facilities0 in %laces like the nited States0 Asia and Euro%e. /a%anBs ma8or cor%orations are also on -oard0 setting good exam%les with EMS im%lementation and encouraging other firms to -ecome registered with guidance and a lessonsDlearned a%%roach. A list of registered com%anies %rovided -y &nternational Environmental Systems %date includes wellDknown names such as Sony >all manufacturing -ases are certified to &S) "*++". all nonDmanufacturing -ases must o-tain certification -y March (++"?0 Iitachi0 .oshi-a0 Sanyo >All the manufacturing sites worldwide0 including "* sites in 5hina0 .aiwan0 !orea0 and five sites in Southeast Asia have o-tained certification. Sanyo aims to have all nonDmanufacturing facilities certified -y A%ril (+++. 5or%orate Environmental Management in Asia Electronic Sector He- 33?0 Hu8itsu0 Shar%0 5anon and 1E5 >All overseas manufacturing su-sidiaries must o-tain certifications -y )cto-er (+++. 1E5 5om%onents Phili%%ines and .ian8iin 1E5 Electronics and 5ommunications &ndustry 5o. Gtd. have o-tained certification.?.

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Matsushita Electrical &ndustrial has announced that it is giving %riority to su%%liers who have an EMS0 and is even considering offering financial assistance to su%%liers who want to im%rove their environmental %erformance. Most of .oyotaBs manufacturing facilities around the world are registered0 including %lants in 1orth America. .oyota was the first automaker to secure &S) "*++" registration to the full standard in the nited !ingdom and in /a%an. .oyota also has issued a guideline for tier " su%%liers in /a%an recommending that they -ecome registered to &S) "*++" -y the end of (+++. Iowever no decisions have -een made regarding the 1orth American su%%liers. IondaBs automotive %lants in )hio are all registered to &S) "*++" and the com%any also re@uires its main su%%liers to register -y the end of (+++. Ionda -elieves that it must -alance its customersB desire for fun and %erformance with societyBs need for less %ollution and lower energy consum%tion. Governmental #nitiatives and ar*et !rivers

According to .amami .agakuchi0 a s%okeswoman for the /a%an Fuality Assurance )rganiCation0 government %olicy on environmental matters is also driving registration in that country. Iowever0 there is no clear evidence on its cause and effects0 .agakuchi adds. .he /a%anese government is relatively aggressive toward environmental matters. /a%anese officials %redict the &S) "*++" certification growth will remain steady in /a%an as firms follow the lead of -ig name com%anies like Ionda0 .oyota and 5anon. )ther ex%erts -elieve Asian countries are looking at &S) "*++" as a way to maintain access to international markets and gain com%etitive advantage. According to 'r. Mohammed Matou@ > 15$'0 %ersonal communication? another ma8or driver -ehind im%lementation of large com%anies is the glo-al trade re@uirements and the enhanced %u-lic image. Pressure from the /a%anese Environmental Agency or the /a%anese Standard &nstitute did not %lay any role in certification0 Matou@ said. Ie also stressed that smallD mediumDsiCed enter%rises >SMEs? are not likely to get certified to &S) "*++" in the immediate future due to cost -arriers0 -ut many of them do %ractice environmental management of some kind. )ther officials at the /a%anese Environmental Agency saw &S) "*++" im%lementation as a totally voluntary initiative on the %art of %rivate sector0 with some %romotion of the standards from the Ministry of &nternational .rade and &ndustry >M&.&? and officials from the &S) "*+++ committee. .his outreach effort0 however0 %roved to -e significant to hel% disseminate the information a-out the standards0 to im%rove environmental %erformance0 to move toward sustaina-ility and to enhance %u-lic image -y %roviding im%roved environmental %erformance re%orts. /a%anese officials say that the electric a%%lianceEconsumer electronics industry is res%onsi-le for the ma8ority of certifications in /a%an0 with *+ %ercent of the market0 followed -y the chemical and trans%ortation sectors0 adding u% to a cumulative sum of nearly (+ %ercent. .his data is %arallel to other &S) "*++" certification markets in the nited States and the nited !ingdom. >See sections a-ove.? $ther ar*et !rivers

=ecause the /a%anese economy is an ex%ort oriented country and so reliant on trade with other nations to take %art in the glo-al economy0 the new EMS standards were @uickly acce%ted as -usiness re@uirements. According to one estimate0 -y the time the final version of &S) "*++" was %u-lished in Se%tem-er "3360 a-out twoDthirds of the countryBs electrical e@ui%ment industry had already registered to the new standard.

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=ut /a%anBs demogra%hy may also -e %laying a role in ado%tion of &S) "*++". As a small island nation with limited natural resources0 /a%an im%orts most of the raw materials and energy it uses. /a%anBs land area is almost e@ual to that of 5alifornia -ut -ecause of the mountainous terrain0 only "*K of the land is ha-ita-le. Moreover /a%anBs %o%ulation is a-out half of the nited States0 whereas the .S. has 3+ times more land area than /a%an0 thus0 making /a%an a densely %o%ulated nation much like the 1etherlands. )ne sees %arallels in the way the two countries are %ursuing glo-al as well as local environmental issues. /a%an is realiCing the im%ortance of environmental %reservation for the current and future generations. &n fact0 /a%anese interest in environmental issues is on the rise. 2lo-al warming0 climate change0 resource conservation0 land use issues and %ollution are of serious concerns. 'uring the countryBs ra%id growth in the "35+s and "36+s0 several highD%rofile incidents0 including over J+ deaths due to mercury %oisoning0 led to wides%read concern a-out %ollution. .he emerging glo-al environmental %ro-lems0 around the end of the "3J+s0 made /a%an recogniCe the needs for voluntary action toward good environmental management -eyond regulatory com%liance. &n this context0 !E&'A1$E1 >Hederation of &ndustrial Associations of /a%an? %u-lished the 2lo-al Environment 5harter in "33"0 which called for voluntary action toward good environmental management under the %rinci%les of 75oo%eration with the Society7 and 75ontri-ution to the ;orld7 -y -oth manufacturing as well as nonDmanufacturing industries. !eidanren %artici%ated in the formulation of the &S) environmental management and auditing standards to utiliCe the standards to effectively im%rove the environment. &n addition to voluntary action the need to reconfirm environmental ethics and ecoDefficiency through innovative technology and economic efficiency were stressed. Since its announcement0 the !eidanren 5harter has -een the guiding %rinci%le in /a%anese industry. 1ow0 more than 6+ %ercent of large and mediumDsiCed manufacturing com%anies in /a%an have their own environmental management %rogram0 with the ma8ority conforming to the &S) "*++" standard. .o that end0 the /a%anese government esta-lished the =asic Environmental Gaw in "333 to address environmental issues and to sti%ulate the %rinci%le of Environmental Policies to industry. .o -uild a sustaina-le society0 it urges every state and local governments0 cor%orations and citiCens to integrate environmental concerns in their daily activities with s%ecial em%hasis on voluntary measures. .hese measures develo%ed under the law %romoted voluntary actions -y industries to address environmental issues in the "33+s. .he governmentBs cam%aigns to enhance %u-lic awareness0 esta-lish ecoDla-eling %rograms0 encourage interDindustrial colla-oration as a way to reduce environmental -urdens at every %hase of life cycle0 and to %ush for environmentally friendly -usiness activities0 technologies and a sound social system have -een instrumental in contri-uting to &S) "*++"Bs success in /a%an. .he national government0 for exam%le0 has su%%orted the im%lementation of EMSs since "3330 when its =asic Environmental Plan recommended them as an effective tool for dealing with environmental issues. More recently0 events such as the nited 1ationsB "337 !yoto 5onference on glo-al warming and new environmental legislation have %rom%ted /a%anese 2overnment and %rivate organiCations to review their environmental %olicies and %ractices. Some local governments are now studying how to introduce the certification of &S) "*++" into their own regulations in %lace of the command and control structure that is currently used. .his is the 7green track7 or dual track system0 which is also -eing discussed in the nited States. =esides %ursuing their own registrations0 governments at the national0 %refecture and local levels offer information0 grants and loans to organiCations esta-lishing or registering an EMS. .okyoBs metro%olitan government0 for exam%le0 will cover half the cost of registration for firms0 to a maximum of ".3 million yen >a-out Q"(0+++?. Con'lusions

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/a%anBs ex%erience shows the growth %otential for &S) "*++" and environmental management in other %arts of the world0 and the -enefits to -e realiCed on economical as well as environmental front. &t is feasi-le to decou%le economic growth from environmental %ressure with sustaina-le use of resources as im%lementations of 1PP"0 1PP( %lans over the years and that of the current 1PP3 %lan in the 1etherlands. Similar voluntary measures in 5anada known as A$E. >Accelerated $eduction and elimination of .oxics? have -een very successful. )ther government %lans have fostered environmental -enefits. 2overnments can foster the growth of standards -y endorsing and a%%lying them. Ma8or com%anies can hel% -y im%lementing the standards and also -y encouraging their su%%liers to ado%t EMS as well as -y selecting only those with effective environmental management system. Most im%ortantly0 however0 an EMS needs to -e widely used as an effective tool for managing an organiCationBs im%act on the environment -y integrating it in core -usiness %ractices.

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EMAS0 ISO ,-.., AND POLICY IMPLICATIONS IN EUROPE

Ba'*ground .he EcoDAudit and Management Scheme >EMAS? is a voluntary scheme for industry introduced -y the Euro%ean 5ommission >E5? in "333. &ts aim0 then and now0 is to %romote onDgoing im%rovements in the environmental %erformance of com%anies and the %rovision of environmental information to the %u-lic. &t is a sector s%ecific standard0 o%en only to manufacturing sites. .o certify to EMAS0 a com%any must ado%t an environmental %olicy0 review environmental %erformance at the site in @uestion0 develo% an environmental management system -ased on &S) "*++"0 develo% a %lan of action in light of the findings of the environmental review0 audit the system and %u-lish a statement of %erformance of the site0 a key difference -etween &S) "*++" re@uirements and EMAS criteria. A @ualified third %arty checks the system and the statement to see if they meet stated EMAS re@uirements in the standard. &f so0 they are validated and the site can -e registered. ;hen it has -een registered0 the site gets a statement of %artici%ation0 which it can use to %romote its %artici%ation in the scheme. An im%ortant %art of the EMAS regulation re@uires that com%anies com%ile a register of their significant environmental effects. .hese include such effects as controlled and uncontrolled emissions to the atmos%here0 controlled and uncontrolled discharges to water0 solid and other wastes0 use of land0 water0 fuels and energy and other natural resources and other ty%es of environmental effects. $egarding &S) "*++" develo%ment0 it is im%ortant to remem-er that EMAS came first. 'uring &S)Bs develo%ment0 most delegates to .5 (+7 did not favor such a %rescri%tive a%%roach to recording and communicating environmental effects. .hat is why the &S) "*++" standard only re@uires organiCations to consider external communication of such environmental information -ut does not re@uire it and why the Annex to &S) "*++" notes that com%anies 7may include7 information a-out environmental im%acts. E -S !evelopment in the European Union 5urrently0 the full mem-ers of the Euro%ean nion >E ? are Austria0 =elgium0 'enmark0 Hinland0 Hrance0 2ermany0 2reece0 &reland0 &taly0 Guxem-ourg0 the 1etherlands0 Portugal0 S%ain0 Sweden and nited !ingdom. )ther countries are vying for 7accession7 to E mem-ershi%0 including former SovietD-loc countries. E mem-ershi% is an attractive economic o%tion for these countries0 making environmental %erformance DD and hence EMS im%lementation DD an E accession issue. .he Euro%ean nion originated with the "357 .reaty of $ome0 which was esta-lished to a-olish tariffs and @uotas among its six mem-er states and to stimulate economic growth in Euro%e. 'iffering national %roduct certification re@uirements0 however0 made selling %roducts in multi%le national markets in the Euro%ean 5ommunity a costly and com%lex %rocess. &n addition0 Euro%e feared that com%etition from the nited States and the Pacific $im would slow Euro%ean economic growth. &n res%onse0 the E called for a greater %ush toward a Single &nternal Market and for the removal of %hysical0 technical and fiscal -arriers to trade. &n "3J50 the E5 5ommission %resented a %rogram for esta-lishing a single internal market and this goal was further ex%edited -y the Single Euro%ean Act0 ado%ted in He-ruary "3J6. .he goal of this legislation was to a-olish -arriers to trade among the "( mem-er states >at the time? and to com%lete an internal Euro%ean market -y the end of "33(.

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Although the key goal of EMAS was to deter trade -arriers0 the E faced >and still faces? environmental challenges. Iowever0 environmental %rotection and enforcement in the Euro%ean nion varies -y mem-er state. &n res%onse to environmental concerns0 the E has -een looking for communityDwide solutions to com%lement national legislation. >.he enforcement of environmental legislation0 whether it is develo%ed at the E level or at the national level0 is enforced at the national level.? .he original goal of EMAS was to develo% E Dwide environmental %olicies that %rotect the environment0 -ut allow for free trade and regional differences. Additionally0 the ultimate aim is to work toward sustaina-le develo%ment. .o achieve this goal0 the E is looking -eyond the traditional 7commandDandDcontrol7 a%%roach to environmental regulation. Alternatives include various marketD-ased %rograms that reward environmentally res%onsi-le -ehavior -y industry and -ring %u-lic attention and %ressure to -ear on environmental %ro-lems. Such a%%roaches can also im%rove the enforcement of environmental laws and reduce the high cost of environmental regulation and enforcement. .he main o-stacle to E Dwide a%%roaches is that the E legislative system is weak and canBt do much to enforce environmental %rotection at the mem-erDstate level0 although the new E Environment Minister is doing an overhaul of the regulatory system to overcome this issue. =ut it is still difficult for the E to %ass detailed legislationA and once ado%ted0 such legislation is difficult to enforce. .hus0 the E is looking for other ways to achieve its environmental goals. .he voluntary EMAS scheme is one such method. Partici%ation in the scheme is siteD-ased and o%en to com%anies o%erating industrial activities as defined in the E Bs 1A5E classification of industries. >.his is similar to the Standard &ndustrial 5lassification 5ode.? &n addition to manufacturing industries0 the scheme also a%%lies to the electrical0 gas0 steam and waste dis%osal sectors. $etail industries could also get involved in EMAS on a voluntary -asis. &n addition0 the mem-er states can extend the schemeBs %rovisions on an ex%erimental -asis to other sectors0 such as government agencies. Much like &S) "*++"0 a ma8or reason for EMAS im%lementation0 %articularly in 2ermany0 is market %ressure. )rganiCations with Euro%ean sites may -e encouraged to %artici%ate for com%etitive reasons and to achieve recognition in the E market%lace. )rganiCations that choose not to seek &S) "*++" registration for nonDEuro%ean sites may nevertheless register their E sites to &S) "*++" as %art of EMAS %artici%ation. Although &S) "*++" did -ecome the official EMS standard within EMAS in "33J0 it was designed as a standDalone scheme. .hat is0 com%anies can meet the re@uirements of EMAS and seek verification of com%liance with EMAS without im%lementing other EMS standards and achieving registration. General (e2uirements o" E -S .his section is a -rief syno%sis of EMAS re@uirements. ;here a%%ro%riate0 it %oints out differences -etween &S) "*++" and EMAS re@uirements. &ndeed0 EMAS calls for firms to esta-lish management systems and %rograms to %eriodically and systematically audit their environmental %erformance0 to strive for continuous im%rovement and to inform the %u-lic of their results. &n its first version0 %u-lished in "3330 EMAS consisted of (" Articles and 5 Annexes. .he detailed re@uirements start with Article 3. .he new0 revised version0 called EMASD(0 will likely -e %u-lished in a streamlined format. >See EMAS 'raft .ext -elow.? Gike &S) "*++" and most EMSs0 a com%any must ado%t an environmental %olicy that %rovides for com%liance with all regulatory re@uirements regarding the environment0 and must include a commitment to achieve 7reasona-le continuous im%rovement of environmental %erformance0

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with a view to reducing environmental im%acts to levels not exceeding those corres%onding to economically via-le a%%lication of -est availa-le technology.7 EMAS also %rescri-es several %rinci%les on which the environmental %olicy must -e -ased0 including among others0 assessing the environmental im%act of all current activities on the environment0 im%lementing %ollution %revention0 %roviding information to the %u-lic a-out the environmental im%act of the com%anyBs activities and %roviding advice to customers a-out the environmental as%ects of the handling0 use and dis%osal of its %roducts. Additionally0 EMAS %rescri-es a list of issues that the %olicy0 EMS %rogram and audits must address0 including energy management0 environmental im%act reduction0 raw materials management0 waste avoidance0 %roduct %lanning0 etc. Gike &S) "*++"0 EMAS re@uires the com%any to s%ecify environmental o-8ectives at all relevant levels within the com%any that are consistent with its %olicies. .he o-8ectives must -e set 7at the highest a%%ro%riate management level0 aimed at the continuous im%rovement of environmental %erformance.7 =ased on findings from the audit0 EMAS re@uires management to set higher o-8ectives and to revise the environmental %rogram to -e a-le to achieve those o-8ectives. .his ste% is analogous to the management review of &S) "*++". EMAS also calls for an initial environmental review that focuses on the issues addressed -y the environmental %olicy. .his sets the stage for the EMS system. )f course0 if the organiCation already has an EMS in %lace0 its environmental review would not -e initial -ut would likely check to make sure it addresses the issues descri-ed in EMAS. &n light of the results of the environmental review0 the com%any sets u% an environmental %rogram a%%lica-le to all activities at the site and aimed at achieving the commitments in the environmental %olicy. &n general0 these re@uirements are similar to those in &S) "*++". =ut a ma8or difference -etween &S) "*++" and EMAS is that EMAS re@uires the com%any to examine and assess the environmental effects of the its activities at the site and com%ile a register of significant effects. .his register is not re@uired in &S) "*++". .he com%any must also esta-lish and maintain %rocedures to record all legislative0 regulatory and other %olicy re@uirements %ertaining to the environmental as%ects of its activities0 %roducts and services. EMAS also re@uires relatively detailed auditing re@uirements. &t calls for the organiCation to set u%0 im%lement and revise a systematic and %eriodic %rogram of environmental audits concerning# a. -. ;hether or not the environmental management activities conform to the environmental %rogram and are im%lemented effectivelyA and Iow effective the EMS is in fulfilling the com%anyBs environmental %olicy.

&t must then carry out or cause to -e carried out environmental audits at the site. Either com%any auditors or external auditors acting on the com%anyBs -ehalf may conduct the audits. .he criteria for the auditing are the same twelve issues mentioned a-ove. EMAS re@uires that the audit fre@uency or the audit cycle is com%leted at intervals of no longer than 3 years. Along with audits0 the com%any must %re%are an environmental statement 7s%ecific to each site audited.7 .his is done when the initial environmental review and su-se@uent audits or audit cycles are com%leted. .his %u-lic environmental statement and its validation are key goals of the entire EMAS effort.

.owards a 1ational EMS Policy and Strategy 4 Ma8or 5ountry $e%ort 3J

The !i""eren'es o" E -S and #S$ %&00% &tBs useful to %oint out the -asic differences -etween &S) "*++" and EMAS re@uirements0 including the environmental statement re@uirement. .he most o-vious differences are that EMAS is a voluntary regulation while &S) "*++" is an international standard. .hus0 where EMAS a%%lies only to sites within the E 0 &S) "*++" is a%%lica-le worldwide. )ther key differences include the following# EMAS is siteDs%ecific and relates to industrial activities whereas &S) "*++" a%%lies to activities0 %roducts and services across all sectors0 including nonDindustrial activities such as government. 1ote0 however0 that under EMAS0 nonDindustrial activities are -eing included on an ex%erimental -asis. EMAS re@uires an extensive initial environmental review as %art of the EMS. .his is not s%ecifically re@uired in &S) "*++" although it is suggest in Annex *.(." of &S) "*++". As mentioned a-ove0 EMAS focuses more directly on the im%rovement of environmental %erformance than does &S) "*++"0 which %laces more em%hasis on esta-lishing and im%roving the EMS0 with environmental %erformance im%rovement as an im%lied -ut not %rescri-ed result. EMAS re@uires the %u-lication of a validated %u-lic environmental statement and an annual sim%lified statement. &S) "*++" does not re@uire a %u-lic statement. &n clause *.3.30 it sim%ly calls on com%anies to consider external communication. &t is u% to the com%any to decide what information and how much to communicate. &n addition0 while EMAS re@uires the com%any to make %u-licly availa-le its %olicies0 %rograms and EMS system0 &S) "*++" only re@uires that the environmental %olicy -e availa-le to the %u-lic. EMAS calls for more extensive auditing than does &S) "*++"0 which only re@uires EMS auditing. >Although the organiCation under &S) "*++" must evaluate com%liance with its re@uirements?. EMAS0 unlike &S) "*++"0 also s%ecifies a maximum audit fre@uency of three years. .he EMS re@uirements in EMAS re@uire the %re%aration of an environmental effects register0 which is not re@uired in &S) "*++".

The (egistration34eri"i'ation S'heme &n "3330 each mem-er state of the E was res%onsi-le for designating an inde%endent and neutral com%etent -ody within "( months of the EMAS regulation entering into force. A com%etent authority or com%etent -ody is the national authority in each mem-er country that has overall res%onsi-ility for the safety of %roducts. A com%etent -ody can -e either a government agency or inde%endent The (evision o" E -S .he EMAS regulation0 now called EMASD(0 has -een revised and a new version is ex%ected to -e %u-lished in (+++. .he main elements of the revised EMASD( are# .he extension of the sco%e of EMAS to all sectors of economic activity including local authoritiesA .he integration of &S) "*++" as the environmental management system re@uired -y EMASA .he ado%tion of a visi-le and recogniCa-le EMAS logo to allow registered organiCations to %u-liciCe their %artici%ation in EMAS more effectivelyA

.owards a 1ational EMS Policy and Strategy 4 Ma8or 5ountry $e%ort 33

.he involvement of em%loyees in the im%lementation of EMASA and .he strengthening of the role of the environmental statement to im%rove the trans%arency of communication of environmental %erformance -etween registered organiCations and their stakeholders and the %u-lic.

.he Euro%ean Parliament ado%ted the (nd reading during the autumn of "333. .his should allow the new EMAS regulation to enter into force in (+++.

.owards a 1ational EMS Policy and Strategy 4 Ma8or 5ountry $e%ort *+

.owards a 1ational EMS Policy and Strategy 4 Ma8or 5ountry $e%ort *"

THE NETHERLANDS AND GERMANY+ TWO EUROPEAN APPROACHES TO EMS POLICY

.he 1etherlands and 2ermany are -oth leaders in the use of EMSD-ased a%%roaches for %olicy0 regulatory and management %ur%oses. Since they are -oth mem-ers of the Euro%ean nion0 -oth nations are su-8ect to the 7voluntary regulation7 of EMAS. )ne would think0 therefore0 that great similarities would exist. At the facility EMS im%lementation level0 this is certainly true. &n terms of EMS %olicy a%%roaches and regulatory instruments0 however0 these countries %resent @uite different and e@ually interesting %rograms0 each tailored to -uild u%on their res%ective existing legal frameworks and economic conditions. A$ Ne&1e (*nds *nd &1e C"2en*n& App "*c1

.he most noteworthy characteristic of the 1etherlands is its small land area0 much of it reclaimed from the sea. Everything in the 1etherlands is located in extremely close %roximity0 in terms of industrial0 agricultural0 residential and other land uses. .here is sim%ly no room to s%read out or to 7hide7 environmental %ro-lems. .his has led to the develo%ment of a strong environmental ethic in the 1etherlands0 -oth among industry leaders and the general %u-lic. .he 'utch have %ioneered many 7green7 ideas at the day to day microDlevel0 such as car sharing0 and at the strategic macroDlevel with the notion of the national 2reen Plan. .he 'utch 2reen Plan is formally known as the 1ational Environmental Policy Plan. .he current version of the %lan is generally referred to as 71EPP 3.7 .he %lan is com%rehensive0 longDterm and interdisci%linary. .he 1EPP weaves together com%lex systems of air0 water0 waste and energy with the human factors of economics0 health and carrying ca%acity. Es%ecially significant is the 1EPPBs reliance on a management framework to ensure %racticality and functionality. .he em%hasis on 7good management7 in the 1EPP has %aved the way for the ra%id u%take of EMS in the 1etherlands. &m%lementation of the 'utch national goals are -eing achieved through a variety of mechanisms0 -ut the device that has ca%tured the imagination of the international %olicy community is the soDcalled 7covenant7 a%%roach. 5ountless international delegations0 es%ecially from S state regulatory agencies0 have swe%t through the 1etherlands for a first hand look at the 'utch model of sectorDs%ecific and facilityDs%ecific regulation0 organiCed through the heavily negotiated0 finely tailored contractual agreements known as 7covenants.7 .he covenant a%%roach does not automatically im%licate the use of EMS. =ut most of the %artici%ating sectors and facilities have recogniCed the value of the EMS in the covenant model and have incor%orated the EMS conce%ts into their initiatives. =ecause the 1EPP calls for setting sectorDs%ecific goals0 and these goals are formaliCed in the covenants0 the as%ects and im%acts methodology of the EMS model for setting organiCational goals are %articularly a%t. .he strong %artici%ation of the 1etherlands >through its national standards -ody 1etherlands 1orma&isatieDinstitution? in the &S) "*+++ %rocess has hel%ed signal this new relationshi% -etween government and industry on voluntary EMS. Most leading 'utch com%anies0 such as A!R) 1o-el0 $oyal 'utch Shell0 and Philli%s Electronics0 have voluntarily moved towards &S) "*++" certification. At this time0 the 1etherlands total num-er of &S) certifications issued DD a%%roximately 5++ DD is @uite remarka-le for a country of its siCe. .he outreach to the general %u-lic on EMS0 at least as a tool for im%lementing the 1ational Environmental Policy Plan0 has a%%arently -een extremely effective. ,isitors from the S have re%orted that0 even in local %u-s0 one can strike u% a knowledgea-le conversation with the locals a-out the 'utch 72reen Plan7 and the ways to achieve its goals.

.owards a 1ational EMS Policy and Strategy 4 Ma8or 5ountry $e%ort *(

.he 'utch use of the EMS tool is -ut one %rong in a more com%rehensive national strategy to move towards sustaina-ility. Any discussion a-out EMS in the 1etherlands leads directly to a discussion a-out environmental re%orting. ;hile EMS and environmental re%orting are seen in many countries as two se%arate initiatives or two se%arate mechanisms0 in the 1etherlands they are viewed as 7hand in glove.7 &n /une "33J0 a governmental decree was issued with further detailed re@uirements on the %ro%osed contents of mandatory cor%orate environmental re%orts. Su-se@uently0 in "3330 the 'utch Hederation of Em%loyers and the ED12) Houndation for 1ature and Environment 8ointly issued voluntary guidelines for environmental re%orting. .he relevance of re%orting to EMS im%lementation in the 1etherlands is significant. .hus0 while EMAS registrations continue to lag in the 1etherlands as com%ared to &S) "*++"0 the strong %ush fore environmental re%orting may ultimately tilt the -alance in favor of EMAS. &n order to encourage that direction0 the 'utch 2overnment recently esta-lished a 1ational EMAS =oard. 'r. 5ees Moons0 'irector 2eneral of the 'irectorate for &ndustry and 5onsumer Policy in the 'utch Ministry of Iousing0 Planning and the Environment0 was scheduled to address the /amaican ;orking 2rou% on EMS Policy and Strategy during the 7Ma8or 5ountry7 conference call in 'ecem-er "333. 'r. Moons was unex%ectedly detained0 -ut he has since forwarded a co%y of his standard %u-lic %resentation on this to%ic. .his text has -een distri-uted as -ackground to the ;orking 2rou% mem-ers and is a%%ended hereto. 'r. Moons states @uite clearly that0 7within government %olicy0 &S) "*++" and its im%lementation takes a dominant %lace.7 'r. Moons em%hasiCes that a system -ased on EMS must -e @ualityDoriented0 in two related res%ects# the first is the @uality of the EMS itselfA the second is the @uality of the certification %rocedures. According to 'r. Moons0 government and industry saw the value of EMS as an alternate model0 -ut -oth understood the 7vulnera-ilities7 of the &S) "*+++" standard. .hus0 he ex%lained0 7consensus could easily -e reached on the im%ortance of certification.7 Hor further information on the 'utch ex%erience in utiliCing &S) "*++" in government %olicy0 and in %articular details of the certification %rogram in the 1etherlands0 %lease see the a%%ended text of the s%eech delivered -y 'r. Moons in /akarta0 &ndonesia on "" 1ovem-er "337. 'r. Moons has ex%ressed interest in rescheduling his dialogue with the /amaican ;orking 2rou% and wishes it success in its develo%ment of a national %olicy and strategy. B$ Ge 3*n) *nd &1e Re!%(*&" ) S%'s&i&%&i"n App "*c1

&n contrast to the 1etherlands0 which has a high level of EMS im%lementation0 -ut with a relatively low level of %artici%ation in EMAS0 2ermany has used EMAS as its %rimary vehicle for EMS im%lementation. >See summary chart at %.iii of this 7Ma8or 5ountry7 re%ort.? ;hile the reason for this dis%arity remains a mystery to many %artici%ants locked inside the &S) negotiating %rocess0 a sim%le answer is to -e found outside of the &S) drafting circles. &n discussions with 2erman %rivate sector leaders and their government regulator counter%arts0 it is @uite clear that -oth agree on one fundamental %oint# that industry will only get regulatory flexi-ility if it can demonstrate su%erior environmental %erformance. Sim%ly stated0 2erman industry wants that flexi-ilityA the 2erman regulators want to find mechanisms to %rovide that flexi-ility while %reserving accounta-ility. =oth sides view the EMSD-ased EMAS %rogram as %roviding a mutually acce%ta-le vehicle. .his 8oint %osture of government and industry has resulted in an enormous level of acce%tance of EMAS in 2ermany. Partici%ation in EMAS is seen as demonstrating a su%erior level of environmental %erformance through a voluntary mechanism. .he high EMAS num-ers for 2ermany DD as com%ared to its 7&S) "*++" only7 certification num-ers DD illustrates this eagerness -y industry to manifest voluntary initiatives in a framework acce%ta-le to the regulators.

.owards a 1ational EMS Policy and Strategy 4 Ma8or 5ountry $e%ort *3

&n certain 7lander7 >or states? in 2ermany0 this model has -een taken to the next logical ste%. .he regulators in =avaria0 for exam%le0 have sought to more clearly articulate the regulatory -enefit of the EMS a%%roach. .hey have introduced the notion of 7regulatory su-stitution7 or functional e@uivalence. .hus0 in =avaria0 the im%lementation of an EMS can lead to wellDdefined regulatory relief. 'r. Matthias ;eigand0 the head of the Gegal 'e%artment in the =avarian Environment Ministry0 discussed this a%%roach with the /amaican EMS Policy and Strategy ;orking 2rou% during the 7Ma8or 5ountry7 conference call. 'r. ;eigand ex%lained the rationale for the movement from the 7command and control7 or enforcementDoriented model to the B8oint res%onsi-ility7 or 7direct res%onsi-ility7 model with an em%hasis on com%liance and enforcement. Ie indicated that where enforcement is deficient and resources are limited0 voluntary EMS is seen as a solution. 'r. ;eigand strongly asserted that 7government must %oint the way7 and 7esta-lish the framework for %roviding regulatory relief.7 &n =avaria0 this has led to the 7su-stitution7 or sim%lification a%%roach through ecoDmanagement. Administrative mechanisms are -eing used to define the range of %ermissi-le su-stitution or sim%lification through EMS. .he a%%roach has -een %iloted with the chemical industry0 and0 according to 'r. ;eigand0 its success is attri-uted to the clearly defined administrative rulesA external verification and registrationA and the develo%ment of codes of -est %ractices.

.owards a 1ational EMS Policy and Strategy 4 Ma8or 5ountry $e%ort **

.owards a 1ational EMS Policy and Strategy 4 Ma8or 5ountry $e%ort *5

GLOSSARY OF TERMS -NS# American 1ational Standards &nstitute BS 445. =ritish Standard 775+ on Environmental Management Systems BSI =ritish Standards &nstitution CE + 5ode of Environmental Management Practices %romulgated -y S EPA for use -y Hederal Agencies CSA 5anadian Standards Association CS# 5ommon Sense &nitiative0 torD-ased %rogram S EPA secD &ncentive Pro8ect7 Environmental -spe't 5onsideration of the %otential interaction with the environment of an organiCationBs activities0 %roducts and services GRI 2lo-al $e%orting &nitiative #nnovest ;all Street environmental risk rating organiCation #++C =ritish system of integrated %ollution control %ermitting #SE&nstitute for Social and Ethical Accounta-ility0 a coDs%onsor of =ritish S&2MA initiative ISO &nternational )rganiCation for StandardiCation JS/a%anese Standards Association Keidanren /a%anese Hederation of Economic )rganiCations Kyoto +roto'ol &nternational agreement regarding 5limate 5hange MITI /a%anese Ministry of &nternational .rade and &ndustry MSWG MultiDState ;orking 2rou% on EMS0 a consortium of state regulators in the S N-CE Euro%ean e@uivalent to Standard &ndustrial 5lassifications >S&5 codes? NE++ .he 'utch 1ational Environmental Policy Plan

CU(E 5om%rehensive regulatory re%orting %rogram for the electronics industry in .exas !ET( =ritish 'e%artment of Environment and .rade !G 5# 'irectorate within the E for EMAS %rogram res%onsi-le

!#N 2erman 1ational Standards &nstitute !T# =ritish 'e%artment of .rade and &ndustry E -S .he Euro%ean nionBs EcoDAudit and Management Scheme E -S,6 Pending $evision to the Euro%ean Eco Audit and Management Scheme0 also $eferred to as 7EMAS (+++7 E S#+ )regon state ,oluntary Program0 7Environmental Management Systems

.owards a 1ational EMS Policy and Strategy 4 Ma8or 5ountry $e%ort *6

NN# 'utch 1ational Standards &nstitute +CS! S PresidentBs 5ouncil on Sustaina-le 'evelo%ment +ro7e't 5) S EPA voluntary %rogram for 7excellence and leadershi%7 (egister o" Signi"i'ant E""e'ts EMS re@uirement for %u-lic disclosure of information (einvention .erm used -y 5linton Administration in S to connote regulatory sim%lification and im%rovement (esponsi8le Care 5hemical Manufacturers Association code of conduct (io Earth Summit 1 5onference on Environment and 'evelo%ment held in /une "33( S-GE on the

Sustaina-ility &ntegrated 2uidelines for Management Star Tra'* S EPA voluntary %rogram develo%ed in 1ew England region SUSC$. Sustaina-le 5offee %rogram of =S"

.owards a 1ational EMS Policy and Strategy 4 Ma8or 5ountry $e%ort *7

REFERENCES
C*n*d* 5ommission on Environment and Sustaina-le 'evelo%ment0 7$e%ort of the 5ommissioner to the Iouse of 5ommons.7 )ttawa0 "333. Environment 5anada. &ntroductory 2uide to Eigironmental Accounting D. >Fue-ec $egion? "337. 2ouvernment du Fue-ec0 Ministiere de &BEnvironnement et de la Haune. 7,ision Strategi@ue "336 D (++".7 "336. 1ational $oundta-le on the Environment and the Economy >1$.EE?. Measuri g EcoDefficiency. )ttawa0 "337. )ffice of the Auditor 2eneral. [Link] $ole and ;ork Program of the 5ommissioner of the Environment and Sustaina-le 'evelo%ment.7 )ttawa0 "337 A--ot0 $o-ert0 et al 7Making &S) ;ork at MidDsiCe Hirms# .he Pros%ec 5hemicals 5ase.7 5or%orate Environmental Strategy 0 /anuary "337 75anadian 5ourt &ncludes &S) "*++" 5ertification $e@uirement in )rder.7 =usiness and the Environment0 March "336

Uni&ed Kin!d"3 Gister0 1ick. 7 ! Ex%eriences in &m%lementing &S) "*++"7 Presentation to .5 (+70 /une "33J. =ritish Standards &nstitution >=S&?. S%ecification for Eutironmental Management Systems. =S 775+#"33(. 'e%artment of .rade and &ndustry >'.&?0 Horum for the Huture0 and =S&. 7=ackground %a%er on the S&2MA %rogram7 >Gondon? 1ovem-er0 "333. 7Sustaina-le 5offee in an &nternational Su%%ly 5hain.7 Presentation -y =S& to the 5)PD5 meeting on 5limate 5hange. =onn0 1ovem-er "333.

Uni&ed S&*&es S EPA0 7Aiming for Excellence.7 $e%ort of EPA &nnovations .ask Horce. >;ashington0 '5? August0 "333. S EPA0 7Action Plan for Promoting the >;ashington0 '5? /anuary0 (+++. se of Environmental Management Systems.7

S EPA0 7Star .rack# Near one $e%ort7 >=oston? August0 "33J. PresidentBs 5ouncil on Sustaina-le 'evelo%ment >P5S'?. [Link] a Sustaina-le America.7 >;ashington0 '5? May "333. Pinero0 Edwin. 7EMS ,ision 5ontinues for Pennsylvania.7 &nternational Environmental 5ystems %date0 )cto-er0 "333.

/*p*n Motou@0 Mohammed and )ya0 !en8i. 7&S) "*++" and $egional Environmental Management# A 5ase Study of 5entral /a%an.7 Presentation at "33J &S) "*++" in 5hina 5onference0 =e ing0 1ovem-er "33J. Seiki0 !atsuo. 7/a%anBs Environmental Policies.7 Presentation at E5) 370 Paris0 /une "337. !eidanren. 7A%%eal on Environment.7 .okyo0 /uly "60 "336 /a%anese 1ational 5ommittee for &S)&.5 (+7ES5"ESME. 7&m%lementation of &S) "*++" in /a%anese SMEBs.7 Presentation %a%er to &S) .5 (+70 /une "33J. 7/a%anese Hirms Pre%aring for &S) "*++" &m%lementation.7 &nternational Environmental Systems %date0 Se%tem-er0 "335. 7/a%anese .rade Ministry Asks Hirms to Pre%are for &S) "*+++.7 &nternational Environmental 5ystems %date0 /anuary "336. E% "pe*n Uni"n EE5 5ouncil $egulation 1o."J36E33. 5ommunity EcoDManagement an>Audit Scheme. >=russels? /une "333. &nternational 1etwork for Environmental Management >&1EM?. [Link] !it for SMEBs. >Iam-urg? "33J. 2el-er0 Matthias. 7;ill $evision Iel% EMAS Iold &ts )wn Against &S) "*++"S7 =usiness and the Environment0 He-ruary0 "33J. Iunter0 $osCell. 7'oing =usiness in Euro%e DD Myths and $ealities of $e@uirements.7 Presentation to 5EEM &nternational 5onference0 Marina del $ey0 5alifornia0 )cto-er0 "336. 7'utch Ex%erts State .heir 5ase# &S) "*+++" Makes the 2rade )ver =S 775+ and EMAS.7 &nternational Ervironmental Systems %date0 'ecem-er0 "335. 7EMAS &m%lemented# 2erman Style.7 &nternational Environmental Systems %date0 August "336. 7&S) "*++" 5om%liance to -e $e@uired -y EMAS.7 Environmental Management $e%ort0 /uly0 "333. Ne&1e (*nds *nd Ge 3*n Moons0 5ees. [Link] Significance of EMAS and &S) "*+++ for 2overnmentBs Policies .owards Sustaina-le 'evelo%ment.7 Presentation in =russels0 1ovem-er0 "337. ,$)M 1ational Environmental Policy Plan# the Summar >1EPP3?0 He-ruary "33J. ,1)D15;. Environmental Agreements in the 1etherlands. 5onfederation of 1etherlands &ndustry and Em%loyers >Iague?0 /une0 "333. /ohnson0 Iuey. 2reen Plans# 2reen%rint for Sustaina-ility. niversity of 1e-raska Press0 "335.

Stans0 /ohn. 7Ex%eriences with 5ertification in the 1etherlands.7 Presentation to &S) .5 (+70 /une "33J.

Heldman0 &ra0 and ;yman0 M. 7EMS and $egulatory Su-stitution in =avaria.7 &nternational Environmental 5ystems %date 0 Se%tem-er "33J. ;isconsin 'e%artment of 1atural $esources. 7;isconsinD=avaria $egulatory $eform ;orking Partnershi%.7 &nformation %ackage0 March0 "333. ;eigand0 Matthias0 7Environmental Pact of =avaria# Su-stitution and 'eregulation for $egulatory Gaw# EMSs and their 5onse@uences.7 Presentation to ;ise and She%erd Silicon ,alley 5onference0 "33J.

APPENDIX , 6 NETHERLANDS AND GERMANY

EMS *nd 7Re!%(*&" ) S%'s&i&%&i"n7 In B*2* i* Ne0 -pproa'h Streamlines -lternate (egulatory System By #ra .eldman and 9yman i'helle

1ew environmental a%%roaches are on the horiCon. &n /uly0 the =avarian Environmental Ministry %u-lished its midDterm assessment of the 7Environmental Pact of =avaria7 .he ministry stated that environmental management systems are -eing %ut in %lace in com%anies throughout =avaria and that doCens of industrial sites have su-mitted to successful environmental audits. 1early (0+++ smallD and mediumDsiCed com%anies have com%leted environmental assessments since the im%lementation of the Pact. According to Environmental Minister .homas 2o%%el0 the voluntary agreement has -een a 7great success7 2o%%el said the agreement has had a %ositive effect on em%loyment within =avaria D and with an a%%roximate one million environmental 8o-s in 2ermany0 "++0+++ are -ased in =avaria. &n an effort to streamline the regulatory %rocess and to %romote coo%erative enforcement0 the =avarian government develo%ed and im%lemented resolutions to meet these o-8ectives. 'etailed in the following text0 the history to the shift in =avaria from 7deregulation7 to 7su-stitution7 has -een com%licated0 yet the results continue to %rove its effectiveness. Cutting Through the (ed Tape .he coalition0 government of the Hederal $e%u-lic of 2ermany has agreed that a %rinci%al contri-ution of contem%orary %olitics is to make government 7leaner7 and to %rune the -ureaucracy. As a result0 government activity is to -e %ared to the -are essentials. .oward this aim0 the Hederal 2erman 5a-inet esta-lished a 7nonDadministrative0 inde%endent BGean StateB committee of ex%erts7 in "335. 1amed the Gean State Advisory 5ouncil0 the grou% ado%ted a resolution in "336 on 7$einforcing %rivate initiative# ecoDaudits and the means of transferring them to areas other than that of the environment7 .wo sections articulate the a%%roach su%%orting voluntary initiative toward com%liance. .he resolution stated that -y com%lying with the law of the environment through the methodical a%%roach of 7functional e@uivalency#B a voluntary effort on the %art of the com%anies and authorities. .hey -oth en8oy greater. latitude in the areas of su%ervision0 information and re%orting duties in a less com%licated and streamlined way. &f a com%any demonstrates through the im%lementation and regular %ractice of initiatives that @ualify under law0 or through im%lementation of more general %reventive measures0 certain ecological standards are ex%ected to -e attained and exercised. .o su-8ect such com%anies to additional %ro8ect controls when they have demonstrated their voluntary initiatives would -e inconsistent with the aims of the 7%rohi-ition of excess7 Prohi-ition of excess is contained in the rule of law0 which relies on state com%etencies or instruments of intervention as necessary and %ro%ortionate measures.

The Bavarian +a't and +ilot +ro7e'ts .he ecoDaudit introduces a new %ath for regulatory com%liance controls through voluntary initiatives set outside of the area of the law of %rotection. &t is a valua-le tool in the %ractice of 7%rohi-ition of excess7 Edeltraud =oehmDAmtmann of the =avarian Ministry for 'evelo%ment and Environmental Affairs said. 7;ith regard to the fundamental differences -etween the draft &S) "*+++ standards on the one hand0 and the Euro%ean 5ommunityBs EcoDAudit $egulation on the other D and considering the international com%etitiveness of 2ermany D it is an innovative model designed to link the two systems.M &n Se%tem-er "3370 the =avarian State Ministry of State 'evelo%ment and Environmental Affairs initiated two %ilot %ro8ects involving transnational cor%orations that are mem-ers of the =avarian %act. )ne %ilot %ro8ect is with a %lant of the =M; 5or%. in S%artan-urg0 S.5.0 and the other with the Siemens 5or%. in =avaria. .he o-8ectives of the %ilot %ro8ects are to com-ine validation and certification of %artici%ant industrial locations in accordance with the EMAS. &S) "*++" and &S) 3+++ standards. &ndustry has long acknowledged the existence of the synergetic effects resulting from the association -etween @uality and environment management systems and the EMAS $egulation. .hese synergies are now to -e com-ined on the government side as well as into a new0 constitutionally correct conce%t that conforms with sti%ulated E5 legislation0 relieves industry and administration as a whole0 and %rovides %recise instructions for the enforcement agencies on how this to -e carried out. +rivati:ing the )a0 =avarian leaders -elieve the %rimary %rinci%le for 7deregulating regulatory law7 is the EMAS $egulation. =ut =avaria has to seek a solution to -eing accounta-le to two conflicting legal sti%ulations. nder the EMAS $egulation0 the administration was -ound -y 2erman =asic Gaw on one hand0 and the %olicy guidelines defined -y Minister President Stoi-er on the other. So0 the administration re%laced the term 7deregulation 7 of regulatory law with "" su-stitution7 .he logic -ehind this was clearly stated in the 7Environmental Pact of =avaria7 that the com-ined model is derived from the merger of the EMAS $egulation and regulatory law. .his com%liance a%%roach is the key to a 7su-stitution7 of regulatory law as such through the voluntary fulfillment of the regulations of environment law in accordance with this section of the article and the annexes to the EcoDAudit $egulation0 .o this extent0 it is an act for which the legal entity in @uestion is directly res%onsi-le >i.e.0 with a view of %erformance0 instead of one that is su-8ected to nationally enforced environmental law?. .he only change0 however0 is in the definition of the fulfillment of the o-ligation0 not the o-ligation itself. .his makes it clear that it is not the su-stantive 7deregulation7 of environmental law that is at issue here0 -ut a %artial %rivatiCation of the enforcement of environmental law. .his %rocedure is therefore consistent with a further defined %olitical guideline. .his formula can resolve the dichotomy involved in taking care of the industrial site and %rotecting the environment. Plus0 this a%%roach makes a contri-ution to reducing the deficit in the enforcement system0 in the s%here of environmental law accom%anied -y the continued downsiCing of human resources. The +rin'ipal o" .un'tional E2uivalen'y

.his actual com%liance with the regulatory re@uirements is the %erformerBs own res%onsi-ilityA however0 it does not lead automatically to a corres%onding withdrawal and relin@uishment on the %art of the enforcement agencies. According to the EMAS $egulation0 state environmental control remains unaffected. 5ontrary to the certification of %roduct safety0 for exam%le0 the environmental assessment attested to -y an inde%endent environmental auditor does -y virtue of the audit im%ly that the res%ective com%any will %ermanently com%ly with all relevant %rovisions. &n order to track the %arallel controls arising from this0 the =avarian Environmental Ministry worked together with the Hederal Ministry of the Environment to esta-lish the %rinci%le of 7functional e@uivalency7 .he su-stitution of the tasks of the enforcement agencies through voluntary cor%orate controls is only %ossi-le if the res%ective instrument of the EcoDAudit $egulation and regulatory law is e@uivalent in its aims and effectiveness of controls if it is functionally and su-stantially e@uivalent. 7Hunctional e@uivalency7 works on the assum%tion to distinguish the identity of two systems. &t has -een assumed that0 for the entire monitoring s%here0 there exists a reci%rocal functional e@uivalency -etween regulatory law and the catalog of o-ligations of the EMAS $egulation0 >i.e.0 for the su-se@uent official controls of the industrial %lants at their res%ective locations and the com%aniesB o-ligations to %rovide information :re%orting and documentation< in su%%ort of these control mechanisms?. .he key to 7regulatory su-stitution7 and success is a com%liance a%%roach with environmental audits0 according to ;eigand. .he su-stitution doesnBt lead to a withdrawal of enforcement agencies or a deregulation of environmental laws0 rather a %artial %rivatiCation of the enforcement of the law. IMPLEMENTATION ISO6,-.., IN THE NETHERLANDS Mr! F"( Stuyt, )ire*tor +sso*iation %or the Coordination o% Certi%i*ation o% EMS ,SCCM)elivered .y Mr C!M! Moons, Ministry /0OM, (etherlands, /akarta0 "" 1ovem-er "337 %; #ntrodu'tion

;ithin the 1etherlands government %olicy0 "5+D"*++" and its im%lementation takes a dominant %lace. 2overnment and industry have realiCed the vulnera-ility of &S)D"*++" as a -asis for a different relationshi% -etween com%anies and authorities. .herefore0 consensus could easily -e found on the im%ortance of certification0 to ensure the needed @uality with regard to the im%lementation of &S)"*++". 6; #mportan'e o" minimum 2uality level

;hen we talk a-out @uality then we refer to two %oints of view# the first is the @uality of the environment management system and the second is the @uality of the certification %rocedures. ;e have learned from the @uality management systems that too much em%hasis was %laced on the internal %rocedures of the system. An EMS must -e o%erational and must -e ca%a-le of realiCing the o-8ectives set -y the com%any. .he %rinci%le of continuous im%rovement must work in %ractice. A com%any has to demonstrate that the cycle 7%lanDdoDcheckDact7 works. &t is im%ortant that these %rinci%les are assessed in the certification %rocedures .he @uality of the certification %rocedures is im%ortant -ecause#

the risks of &S)D"*++" EMS certification than0 for exam%le0 for @uality certification -ecause there are more %u-lic as%ects. &f an certified com%any has environmental %ro-lems0 this will -ring -ad %u-licity and could have an effect on the system as a wholeA without a minimum @uality level0 it is not %ossi-le to use an EMS certificate with regard to another relation with the authorities. <; Certi"i'ation 8odies results must 8e 'ompara8le

.he value of an EMS certificate must -e inde%endent of the certification -ody. 'ifferences can occur in the inter%retation of the standard &S) "*++". .here are many %oints where-y the certification -ody has to inter%ret the standard0 for exam%le the de%th of the environmental effect evaluation0 the commitment to continual im%rovement0 com%liance with regulations. .he organiCation of the certification -ody. ;e think that the certification audits have to -e carried out -y a team. An organiCation is necessary to assure that these audits have a good @uality levelA the certification %rocedures and assessment criteria. Hor exam%le how to handle with -reaches of the license. 'ifferences would mean that certification -y a s%ecific -ody has a different value to that -y another -odyB An EMS certificate could in this case have no real value for the authorities and certainly would not -e understood -y the %u-lic. )ur o-8ective is to minimiCe the differences where %ossi-le and to guarantee a minimum @uality level. &; #mplementation stru'ture "or E S,'erti"i'ation

.he general %rinci%les for the im%lementation of certification in the 1etherlands are as follows. &n %rinci%le0 certification should -e done -y third %arties0 whose inde%endency and im%artiality can -e assured0 and who should use a%%ro%riate certification %rocedures. Hor the accreditation of these certification -odies0 existing structures in the 1etherlands will -e used. Accreditation of certification -odies is done -y the 'utch 5ouncil for Accreditation >$vA?. .his 5ouncil also exercises su%ervision on the certification -odies. &n addition0 a s%ecial foundation has -een set u% to guarantee the @uality of the certificate. .his foundation0 called Houndation for the 5oordination of the 5ertification of Environmental Management Systems >S55M? %lays a crucial role within the structure for the im%lementation of &S)D"*++". & will now tell you a little more a-out S55M. S55M is a new organiCation S55M is an initiative of government and industry. .he committee of S55M has four mem-ers. .wo from industry and two from government authorities .he aim of S55M is -roader than 8ust -eing res%onsi-le for the @uality of certification. .he official aim of S55M is to stimulate the im%lementation of environmental management systems and the use of EMS systems in the relation with the license. =esides the develo%ment9 Tf a certification system0 an im%ortant task of S55M is to inform industry and authorities a-out the %ossi-ilities of EMS certification 5; Central Coun'il o" E=perts ;ithin the S55M0 a 5entral 5ouncil of Ex%erts will o%erate0 which is res%onsi-le for the following# esta-lishment of accreditation criteria which are used -y the 5ouncil for Accreditation in addition to more general re@uirements for accreditationA drawing u% and managing a certification com%lies with &S)D"*++"# in this system mandatory inter%retations of the &S)Dstandard are given0 as well as working methods to -e followed -y the certification -odyA monitoring the o%eration of the accreditation and certification system in %ractice. All interested %arties are mem-ers of the 5entral 5ouncil of Ex%erts0 including industry0 licensing authorities0 the environmental organiCation and trade unions. & would like to tell you in more detail a-out the 5entral 5ommittee of Ex%erts and their res%onsi-ility for the certification system. .he com%osition and %rocedures of the 55vE have to com%ly with the re@uirements of the 5ouncil for Accreditation. )ne of the re@uirements is that all %arties concerned have re%resentatives in the committee and that the com%osition is well -alanced. )ur 55vE has fifteen re%resentatives. Hive ex%erts come from the various levels of authorities0 the government level0 regional authorities and local authorities. Hive ex%erts come from several sectors of industry. ;e have five %laces for re%resentatives of third %arties. .hese

ex%erts come from the environmental movement0 one from the la-or union and the -ank and insurance com%anies. .he 5entral 5ommittee of Ex%erts was installed in "335. .he committee esta-lished a certification system for &S)D"*++< in 'ecem-er "336. .his certification system has a dynamic character. .he 5ommittee of Ex%erts is res%onsi-le for the content of the system and has to im%rove the system on the -asis of new develo%ments or the most recent ex%erience. S55M organiCes meetings with the certification -odies to discuss their ex%eriences and inter%retation several times a year. .his information is in%ut for the 5entral 5ommittee of Ex%erts and can lead to changes in the certification system. .he result is that all certification -odies accredited in the 1etherlands work with the same system and in this way a minimum @uality level is guaranteed. >; -''reditation and E S 'erti"i'ation stru'ture

.he accreditation and certification structure0 which is used in the 1etherlands for the im%lementation of &S)D"*++"0 can -e summariCed as follows. .hree %arties are involved# U U .he 'utch 5ouncil for AccreditationA S55&,& and the 5entral 5ommittee of Ex%ertsA the certification -odies.

S55&,& and the 5entral 5ommittee of Ex%erts have a central function in the accreditation system. .he committee of ex%erts has develo%ed a certification system. .o -e accredited as certification -ody in the 1etherlands0 the certification -ody is o-liged to close an agreement with S55M for the use of this certification system. S55&,& has an agreement with each of the certification -odies. &f the 55vE decides to change the certification system0 then the certification -odies are o-liged to work with the new re@uirements. Each certification -ody has to %ay a yearly license fee. .he 'utch 5ouncil for Accreditation is an inde%endent organiCation0 which is res%onsi-le for the accreditation within the framework of many certification systems in the 1etherlands0 for exam%le &S) 3+++. .he 5ouncil for Accreditation audits each certification -ody in actual %ractice -efore it can -e accredited. .he certification -ody has to show the correct use of the certification system in %ractice. .he res%onsi-ilities can -e summariCed as follows# .he 5ouncil of Accreditation is res%onsi-le for the accreditation and su%ervision of certification -odies and the individual certifiers working for these -odies. .he 5ouncil for Accreditation su%ervises each certification -ody in actual %ractice. &t could -e summariCed as me 8udiciary %ower. .he 55vE is res%onsi-le for the content of the certification system an can summariCed as the legislative %ower and the certification -odies as the executive %ower. 7; Certi"i'ation system E S a''ording to #S$,%&00%

.he 5entral 5ommittee of Ex%erts esta-lished a certification system in 'ecem-er "336. .he certification system consists of the following three elements#

.he inter%retation of &S) "*++"A .he organiCation of the certification -odyA .he %rocedures used -y the certification -ody.

.he 55vE of the S55M wishes to streamline the inter%retation of &S) "*++" -y the individual certification -odies as much as %ossi-le. Hor this %ur%ose there is %eriodic consultation with the certification -odies0 to esta-lish the need for further inter%retations. )ther %arties can also alert the 55vE to am-iguities. =y adding new inter%retations to existing inter%retations. .he certification system is gradually o%timiCed. .he current inter%retation is laid down in 5ha%ter ( of the certification system. 5ha%ter 3 descri-es the re@uirements set -y the 55vE for the organiCation of the certification -ody. .hese re@uirements are -ased on the EA5 2uidelines. =ut again the 55,E has not hesitated to draw u% further inter%retation0 if necessary. Hinally0 5ha%ter * outlines further re@uirements and inter%retations concerning the %ractice to -e ado%ted -y the certification -odiesB also in accordance with the EA5 2uidelines.

APPENDIX 8 6 THE CANADIAN EXPERIENCE WITH EMS

#mplementation and Capa'ity/ Current Status 5anada has -een very active in the &S) "*+++ %rocess0 %resently chairing .echnical 5ommittee (+7 on Environmental Management. .he national standards -ody0 the 5anadian Standards Association0 maintains the .5 (+7 Secretariat for the international %rocess. )n the domestic 5anadian front0 5SA has a very %roactive outreach %rogram and has develo%ed excellent su%%lementary materials. .he 1ational $oundta-le on the Environment and the Economy >1$.EE? is res%onsi-le for 5anadaBs accreditation and ca%acityD-uilding efforts related to EMS. 1umerous 5anadian consulting firms are geared u% no only for domestic activity0 -ut have -ecome @uite visi-le on the international scene. And at least two 5anadian firms have develo%ed software that facilitate the im%lementation of EMS and %erformance metrics at the com%any level. .hus0 it would a%%ear threat 5anada ought to -e one of the flagshi% countries for EMS im%lementation. .o date0 however0 des%ite sufficient ca%acity0 %ioneering tools0 and a strong environmental ethic0 EMS im%lementation has lagged0 at least at the &S) certification level. .here is one overriding significant reason for this limited u%take0 and clearly it directly related to the economic giant 8ust to the south of the 5anadian -order. .he S is 5anadaBs %redominant trading %artner0 and S com%anies have re@uired neither EMS demonstration nor EMS certification to the same degree as has other trading %artners from /a%an0 ! or 2ermany. .hus0 5anadian com%anies have not -een %ressed in any direct manner to certify and have -een relatively slow to em-race EMS. 1ow0 however0 es%ecially with the emerging su%%lier chain driver discussed a-ove in the S cha%ter0 the im%lementation %icture in 5anada a%%ears to -e %oised for a d"ramaiic change. &n %articular0 )ntario is a center of the automotive and automotive %arts industry. .he recent su%%lier chain initiatives announced -y 2M and Hord have already im%acted the EMS im%lementation among the diverse com%anies situated in the .oronto area. E S +oli'y #nitiatives ;hile the voluntary marketDdriven u%take of EMS in 5anada has -een slow0 it does not mean that EMS as %olicy tool has -een ignored. =oth the regulators and the 8udiciary in 5anada have taken note of EMS in very %ositive terms. EMS is -ecoming recogniCed as a %u-lic %olicy tool for moving towards sustaina-ility. 5anada has -een much more rece%tive to -uilding u%on a sustaina-ilityDoriented framework than their S neigh-ors. .he %u-lic sector is making the commitment to show the way forward on sustaina-ility in 5anadaA the sustaina-ility conce%t is ex%licitly -uilt into a num-er of government initiatives. &n turn0 these %rograms %rovide excellent vehicles for EMS im%lementation. )ne of the most significant sustaina-ility develo%ments in 5anada is the re@uirement >through an amendment to the Auditor 2eneral Act? that each of the (J Hederal Ministries %re%are a Sustaina-le 'evelo%ment Strategy. All of the Ministries have develo% a %lan0 -ut many have faltered in the transition from %lanning to action. Many Hederal de%artments in 5anada are working to im%rove their im%lementation of sustaina-le develo%ment. .he Policy $esearch &nitiative >P$&? is intended to im%rove the Hederal governmentBs ca%acity to address what is descri-ed as an 7im%lementation ga%7 around sustaina-ility. .hrough P$&0 a we- of interde%artmental coo%erative initiatives is in %lace to assist in im%lementation activities. Among these are the &nterde%artmental 1etwork on Sustaina-le 'evelo%ment Strategies and the Hederal 5ommittee on Environmental Management Systems.

.owards a 1ational EMS Policy and Strategy 4 Ma8or 5ountry $e%ort 5J

&n the "333 $e%ort of the 5ommissioner of the Environment and Sustaina-le 'evelo%ment0 it is clear that the 5ommissioner intends to use the EMS model to %rovide assurances that sustaina-ility strategy will -e im%lemented consistently and that ade@uate goals are esta-lished and results achieved. .he $e%ort found that such management %ractices were lacking in several of the %ilot Ministries studied. .he 5ommissioner stated that0 7significant im%rovements can -e made in %rotecting our environment and %romoting sustaina-le develo%ment if sound management %ractices are a%%lied to these issues. se of the systematic a%%roach to continuous im%rovement em-odied in standards like &S) "*++" would strengthen management %ractices significantly.7 .he sustaina-ility framework in 5anada %rovides the vehicle not 8ust for EMS im%lementation0 -ut for the full range of other strategic environmental management tools. "3*mvirohment 5anada is actively %romoting -oth 7environmental accounting7 and life cycle analysis >G5A?. .he 1$.EE has made some significant contri-utions to the state of the art on environmental %erformance indicators in the context of 7ecoDefficiency.7. And0 as noted a-ove0 5SA0 is %roviding outreach and generating training and guidance materials on all of these tools. Hinally0 there has -een attention %aid to the needs of small and medium siCed enter%rises in 5anada. )ne SMEDoriented %rogram is known as =EP) DD the 5anadian =usiness Performance )ffice. =EP) descri-es itself as a 7virtual office7 for -usiness and environmental %erformance. =EP) develo%s sectorDs%ecific and generic tools to assist EMS im%lementation. =EP) is run as a coo%erative venture -etween industry0 government and nonDgovernmental %artners. E S and !ue !iligen'e in Environmental )a0 )ne of the increasingly im%ortant uses of EMS in 5anada involves the legal conce%t of 7due diligence.7 &f0 for exam%le0 a com%any is found to -e in violation of an environmental statutory or regulatory %rovision0 it is a defense to the charge that the com%any had in fact taken all 7reasona-le care7 to avoid the violation. )f course0 this sort of defense cannot -e used as a com%lete shield to environmental enforcement actions0 -ut when the enforcement %rocess reaches the 8udicial stage0 such a due diligence defense can -e critical in ascertaining the a%%ro%riate %enalty or other measure of damages. .he most difficult @uestion related to due diligence is defining how much 7diligence7 is 7due07 or in other words0 7how much care is enoughS7 &n 5anada0 &S) "*++" is %roving invalua-le as a measure of a%%ro%riate due diligence for cor%orate environmental %rograms. /udges have welcomed the advent of an international0 thirdD%arty certifia-le standard for environmental management systems0 since it relieves them of the -urden of defining due diligence in a 7-and aid7 or %iecemeal a%%roach. )ne must also kee% in mind that few 8udges have cor%orate managerial ex%ertiseA thus0 the existence of an international standard develo%ed -y ex%erts and validated worldwide %rovides a reasona-le level of comfort to 8udges that they are 7doing the right thing7 in terms of s%ecifying an a%%ro%riate tem%late for an environmental management system in order to resolve a case -rought for environmental violations. 5anadian courts have used &S) "*++" in several cases to date. .he most noteworthy was the Pros%ec 5hemical case decided in Al-erta. .his case drew wides%read attention0 not only in 5anada -ut also in the S for its innovative settlement a%%roach utiliCing EMS re@uirements. .he model has su-se@uently -een followed in settling numerous S lawsuits. Pros%ec had violated several 5anadian environmental regulations. .he settlement included a %enalty0 -ut also incor%orated a re@uirement to im%lement and certify to &S) "*++" within a s%ecified time %eriod. Pros%ec %osted a -ond to ensure com%liance with the EMS re@uirement. ndou-tedly0 the dollar %enalty would have -een far greater if the EMS com%onent was not included in the settlement %ackage.

.owards a 1ational EMS Policy and Strategy 4 Ma8or 5ountry $e%ort 53

5anadian cor%orate environmental %rograms have looked at this case as signaling the acce%ta-ility of &S) "*++" to courts and to the regulators. .hus0 many are taking a %roactive stance and0 recogniCing the need to %rove due diligence0 they are im%lementing &S)Dcom%liant EMS %rograms. Similarly0 the regulators and legislators in 5anada are looking at this trend and res%onding. Gater this year0 the new 5anadian Environmental Protection Act will come into force. .hat statute has an interesting %rovision0 -asically ado%ting as law the notion that court sentences may include the re@uirement of im%lementing an EMS along the lines of a 7recogD niCed international standard.7 According to .oronto lawyer 2ray .aylor0 while it does not s%ecify &S) "*++"0 it is clearly what the legislators had in mind. 2ray .aylor sees the growing significance of EMS in 5anada as a voluntary -est %ractices tool. .herefore0 he is the founding chair of the 5anadian &S) "*+++ Gegal &ssues Horum0 a new entity o%en to lawyers and nonDlawyers alike0 and -ased u%on the organiCation of the same name in the S which has facilitated the legal and %olicy dialogue on EMS for the %ast four years. .aylor -elieves that the whole -eauty of &S) "*++" is that it is voluntary. Ie wants to see government incentiviCing EMS0 -ut not forcing it. .aylor notes that there are other EMSDrelated develo%ments finding their way into the 5anadian legal system. Ie %oints to a new sewer -yDlaw in .oronto which re@uires that com%anies which discharge certain su-stances into the system will need to develo% a 7%ollution %revention %lan.7 .oronto0 re%orts .aylor0 has made the link -etween this re@uirement and &S) "*++"0 advising com%anies that one way to im%lement the a%%ro%riate %ollution %revention %lan is to include it as %art of an &S)Dcom%liant EMS. )thers in 5anada urge outside o-servers to look -eyond the raw certification num-ers. .hese cor%orate environmental leaders correctly note that registration figures or registrarsB dollar revenue cannot ca%ture management system ado%tion. .he true im%act of EMS standards in 5anada is much greater0 they suggest0 since many com%anies use &S) "*++" as a -enchmark to review their existing systems or to %rovide uniformity across several facilities within a com%any. Many of these same organiCations have decided to wait to move to the certification stage until additional incentives0 whether regulatory or customerDdriven0 a%%ear.

.owards a 1ational EMS Policy and Strategy 4 Ma8or 5ountry $e%ort 6+

.owards a 1ational EMS Policy and Strategy 4 Ma8or 5ountry $e%ort 6"

APPENDIX 9 6 UNITED STATES O e!"n G een Pe 3i&s And En2i "n3en&*( M*n*!e3en& S)s&e3s Incen&i2es P ":ec& ;EMSIP<
A$ P "! *3 Desc ip&i"n

&n "3370 the )regon Gegislature created 72reen Permits7 to encourage regulated facilities to achieve environmental results that are significantly -etter than otherwise %rovided -y law. nder the )regon 2reen Permits and Environmental Management Systems &ncentives Pro8ect >E&,&S&P?0 a %ermit %roviding administrative -enefits or reduces regulatory re@uirements is given to facilities that meet criteria esta-lished -y the Environmental Fuality 5ommission >EF5?. .hree cor%orate facilities signedDu% for the initial %ilot %ro8ect which has now ex%anded. 2reen Permits and EMS&P are regulatory reform efforts founded on four key %rinci%les# com%liance with regulation is the -aselineA significant and measura-le %erformance goals will -e esta-lishedA meaningful stakeholder involvement is ex%ectedA and the system will -alance sim%licity and certainty with flexi-ility and innovation. .he 2reen Permits legislation authoriCed the EF5 to create multi%le classes of 2reen Permits and to esta-lish s%ecific criteria and %rocedures for a%%lication0 review and %u-lic %artici%ation. EMS&P is the a%%roach 'EF is ex%loring to achieve the results envisioned in the legislation. )nce facilities meet criteria for %artici%ation0 the %ro8ect uses a tiered system in which greater environmental %erformance is rewarded with increasing regulatory -enefits. .he framework has six categories that are divided into three tiers. .he categories are Environmental Management Systems >EMS?0 EMS verification0 stakeholder involvement0 measuring and re%orting0 %erformance standards0 and regulatory incentives. 2reen Permits and EMS&P are designed to achieve greater environmental results than what is %ossi-le under the current regulatory system. 'EF recogniCes that the current system does not encourage or reward environmental stewardshi% and that many environmental issues cannot or will not -e ade@uately addressed solely -y regulatory means. ,oluntary0 market Ddriven0 outcomeD-ased a%%roaches can -e effective in accom%lishing desired environmental results -ecause many com%anies have the knowledge and resources to significantly reduce environmental im%acts. ". Program Attri-utes a. &ntegrating and Iolistic Systems A%%roach# .he EMS&P %ilot %ro8ect re@uires all %artici D %ants to have at least a 7-asic7 EMS. &S) "*++" is not the only o%tion0 -ut the EMS must -e 7&S) "*++" com%ara-le7 for the highest two tiers. .his re@uirement ensures that com%anies use an integrated and holistic systems a%%roach to their environmental management. Performance &m%roving 2oals# All %artici%ants must set goals for %erformance im%rovement. .he threeDtiered system is designed to %rovide strong incentives for %erD formance -eyond com%liance. &n order to @ualify for incentives0 %artici%ants must demonstrate reductions in targeted environmental im%acts. Additionally0 the highest and secondDhighest incentives tiers re@uire the facility to -e in the to% "+K and (5K0 res%ectively0 of industry environmental %erformance. &nformation $ich# .he %ilot framework contains 7measures and re%orting#B which re@uires measurements of targeted im%acts and disclosure of an annual %erformance re%ort. .he re%ort must include information on regulated im%acts0 measures of %erD
.owards a 1ational EMS Policy and Strategy 4 Ma8or 5ountry $e%ort 6(

-.

c.

formance im%rovement and details of stakeholder in%ut received. Additionally0 the Environmental Management System >EMS? defined in the two highest tiers re@uires identification and documentation of all regulated and unregulated environmental as%ects. d. 5ommunity &nvolvement and =enefits# .he %ro8ect re@uires extensive re%orting and stakeholder involvement. All tiers re@uire annual %erformance re%orts0 which include all in%ut that was received from stakeholders over the course of the year. .he highest two tiers also re@uire twoDway communication such as hotlines0 we- sitesEeDmail and annual %u-lic meetings. .he communication may cover environmental %olicy0 analysis of environmental im%acts0 targets for im%rovement0 %erformance measures and %rogress in reducing im%acts. ;orker Engagement# An &S) "*++" EMS re@uires environmental training to increase environmental awareness of em%loyees. An environmental %olicy statement must -e written and then communicated to em%loyees throughout the organiCation. Market $ewards# &ncentives include %u-lic recognition as an environmental leader. .his is the only s%ecifically marketD-ased incentiveA other incentives are regulatory flexi-ili D ty0 technical assistance and enforcement discretion. Environmental Stewardshi%# Environmental stewardshi% comes through identification and reclucdo*n of the organiCationBs im%acts on the environment. .he higher two tiers re@uire the facility to consider regulated and unregulated im%acts of the facility itself0 along with ma8or su%%liers and useEdis%osal of %roducts. .he highest tier also re@uires a 7ro-ust7 environmental im%act assessment0 which includes assessment of significant %eri%heral im%acts >7su%%liers0 %roducts0 wetlands0 etc7?.

e.

f.

g.

(. Sustaina-le 'evelo%ment# EMS&P integrates the dimensions of sustaina-le develo%ment into one coherent framework that %rovides guidance for im%rovement and offers incentives for verified results. $esource %roductivity is a central com%onent of the framework through the focus on %ollution %revention and %erformance im%rovement. Economic -enefits can -e ex%ected through %ollution %revention0 internal efficiency0 and regulatory incentives. Social and community -enefits will come through re%orting and stakeholder involvement0 as well as through economic and environmental im%rovements. .he framework %rovides accounta-ility and su%erior environmental %rotection while ensuring that %artici%ants work toward sustaina-le develo%ment instead of regulatory com%liance. 3. $esults# .he %rogram is new and there are no results at this time0 as 'EF only announced the %artici%ants in /uly "33J. EMS&P offers a com%rehensive alternative to commandDandDcontrol0 -ut this alternative needs %ractical im%lementation -efore it can -e fully evaluated. *. .ransforming Effect# .his alternative regulatory system was created with the statutory driver of the 2reen Permits Gegislation. .he legislation can -e considered a switchD%oint from the existing com%lianceDoriented system to a managementD-ased and %erformanceDdriven system. .he legislation ena-les 'EF to offer meaningful regulatory relief and may %rovide a %ractical exam%le for creating an alternative system on a larger scale. 5. $e%lica-ility# 'e%ending on %ilot results0 2reen Permits and EMS&P might %rovide a model for similar %rograms on a regional or national level. Similar %rograms could -e created through legislative drivers at the state or national level. .he %ro8ect framework is consistent with P5S' recommendations. 6. $elationshi%s# .he %ro8ect fosters more coo%erative relationshi%s -etween industry and regulators than would otherwise -e achieved through traditional commandDandDcontrol.

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Accounta-ility and enforcement are maintained0 -ut facilities shift to more %roactive and less com%lianceDdriven mindsets. EMS&P is a %artnershi% that ena-les regulators to assume less adversarial roles0 such as %rogram su%ervisors and technical assistance %roviders. .he 2reen Permits legislation was %assed in "3370 -ut full im%lementation of 2reen Permits and EMS&P has yet to -e achieved. Hacilities were not chosen for %artici%ation until /uly "33J. 2reen Permits and EMS&P use a legislative driver for an alternative regulatory framework that offers incentives for demonstrated environmental %erformance while ensuring strong accounta-ility. .he system uses EMSs as one %art of a -road framework that is designed to -e flexi-le and %erformance oriented. Essentially0 )regon wrote %ractical details for a system that com-ines incentive tiers with an alternative %athway0 consistent with recommendations from E*E0 .he As%en &nstitute and P5S'. &t remains to -e seen if the EMS&P framework can %rovide a model for an alternative regulatory system on a larger scale. &n %articular0 it needs to -e demonstrated that the facilities can meet the re@uirements for the various tiers and that the incentives can motivate signif icant %erformance im%rovement.

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APPENDIX - 6 /APAN
&S) "*++" &m%lementation in /a%an >Month -y month? 'iagram &S) "*++" &m%lementation in /a%an >Sector -y sector? 'iagram "ndustry 1eaders 2ith "SO 1#001 Certi%i*ation ISO 14001 registrations of /a%anese firms took off and increased ex%onentially. Iere are the industry code -reakdowns for certifications. Electric machinery .............................................................................................................. 40.3% 2eneral machinery ............................................................................................................. 9.3% 5hemical industry ............................................................................................................... 9.1% Precision tools .................................................................................................................... 4.8% Petrochemistry .................................................................................................................... 3.4% Metal %roducts ............................................................................................ ....................... 1.4% =everage manufacturing .................................................................................................... 1.2% $u--er %roducts ................................................................................................................. 1.2% Sales ................................................................................................................................... 0.9% Pa%er and %ul% ................................................................................................................... 0.9% Plastics ............................................................................................................................... 0.9% Hood %rocessing ................................................................................................................. 0.9% 1onferrous metals .............................................................................................................. 0.9% .he different categories of industrial sectors registered in /a%an are %arallel to those o-served for other %arts of the world. To*yo Cham8er o" Commer'e and #ndustry Survey&11? .he reasons for o-taining &S) certification -ased on general survey results in 1998 can -e grou%ed in two ma8or categories. .he ma8or reason for certification in /a%an includes the following three criteria# )rganiCation of the environmental %rotection activities ..................................................... 64% 5om%liance with holding or %arent com%any %olicy ........................................................... 58% &m%roving the com%any or organiCationBs image ............................................................... 48% )-serve international rules and regulation ........................................................................ 19% )-tain an o-8ective evaluation .......................................................................................... 18% &m%roved -usiness in general ............................................................................................ 12% 5ost reduction .................................................................................................................... 12% $e@uest from overseas trade %artners ............................................................................... 10% MinimiCe environmental risk .............................................................................................. 9% 5om%etitive advantage ...................................................................................................... 9% $e@uest -y domestic %artners ........................................................................................... 7% .he reasons for o-taining &S) certification among the different industrial categories varied. .he main reason amongst the ma8or and early ado%ters of &S) "*++" sectors such as machine manufacturers0 trans%ort0 electrical or information machinery was to strengthen the management system and to increase the market share in the glo-al economy0 whereas for trading com%anies0 reducing the environmental risks and changing the %erce%tion to environmentally friendly

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-usiness %ractitioners were the main drivers. 5om%etitive advantage and uni@ue %ositioning due to &S) certification were the reason for its ado%tion -y education institution. .he governmentBs reason for ado%ting the standards is its enhanced %ower to enforce environmental %olicy function as well as to encourage local governments and other %rivate enter%rises to seek certification. .he ma8or -enefits gained due to im%lementation were as follows >-ased on survey?# Promotion of environmental activities ............................................................................... 55% &m%roved %u-lic relations .................................................................................................. 44% MinimiCe environmental risk .............................................................................................. 36% 5learness of the res%onsi-ility and role ............................................................................. 30% &m%roved -usiness management and revitaliCation of the organiCation ........................... 26% Esta-lishment of o%erating %rocedures ............................................................................. 22% Maintenance of documented records ................................................................................ 15% $educed cost ..................................................................................................................... 9% 3hese [Link] 2ere some2hat de$endent on the si4e o% the 2or5%or*e!

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APPENDIX 5 6 =MA/OR COUNTRY= SUMMARY MATRIX>

S&*nd* ds B"d) BSI A1S& /SA '2O" 'k1 11& 5SA 7 8#0 9+ll data a**urate as o% 'anuary 8000

ISO ,-.., Ce &i#ic*&i"ns ,.,#&6 D3+++ nEa D"*6+ 7 #75

EMAS Ce &i#ic*&i"ns 49 nEa nEa 3+++ 7 8890 7 860

nEa

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