Green Supply Chain

Management - GSCM
Introduction
What is an Environmental Management
System (EMS)?
•The part of the overall management system that includes
organizational structure, planning activities, responsibilities,
practices, procedures, processes, and resources for developing,
implementing, achieving, reviewing, and maintaining the
environmental policy
What is an EMS? Unofficial Definition
•A complete ‘box of tools’ to be used by organizations to improve all activities
that may affect the environment
•The toolbox contains:
◦ environmental plans, knowledge, and awareness
◦ competent individuals with clear responsibilities
◦ consistent procedures for all operations
◦ regular checks on performance
◦ rapid response to correct and prevent problems
◦ effective internal and external communications

4
What or Who is ISO?
•Federation of National Standards agencies from 136 countries
•Founded in 1947; headquarters in Geneva
•Develops international standards in all technical areas except
electrical and electronics engineering (responsibility of IEC)
•ISO means ‘equal’ (as in isobar, isotherm, isometric, isosceles,
isomer, isotope)
Objective of ISO
•Promote development of standardization in the world with the aim
of easing international exchange of goods and services
•Develop cooperation in intellectual, scientific, technological, and
economic activities
ISO Standards
•Intended to:
Make development, manufacture, and supply of products and services more
efficient, safer, and cleaner
Make trade between countries easier and fairer
Safeguard users and consumers of products and services
Make life simpler
International Organization for
Standardization
•Has published approximately 13,000 industrial standards, e.g:
◦ film speed
◦ credit/phone card size and thickness
◦ freight containers
◦ screw thread dimensions
◦ paper size (A4, legal, letter)
◦ book catalogue codes (ISBN numbers)
◦ sampling, testing, analysis of air, water, soil
Cont.
•Management System Standards:
Quality (ISO 9000 series, 1987, 1994, 2000)
Environmental Management (ISO 14000 series, 1996)
These are intended for use by all types
and sizes of organizations (e.g., private sector manufacturing and service
companies, government agencies, and NGOs)
ISO 14000 Series of Standards
and Guidelines
•Intended to be:
Relevant in all countries
Cost-effective, non-prescriptive, flexible
Usable by all types and sizes of organization
Suited to the needs of users and the public
Practical, useful, and useable
Suitable for internal or external verification

10
ISO 14001
What is ISO 14001?
•Defines the components required for a good environmental
management system (EMS)
•Provides a framework for continual improvement of environmental
performance
•Can be assessed by an independent agency and awarded
certification/registration recognized worldwide
Benefits from ISO 14001
•Strategic approach to environmental performance - use vision and initiative
•Helps to provide order and consistency in environmental performance
•Less need for government ‘command and control’ mode of regulation
•Demonstrates ‘Reasonable Care’ and ‘Due Diligence’
•Improved risk management
Goals
•The goal of ISO 14001 is continual improvement of environmental
management using a system consisting of:
◦ Environmental Policy
◦ Planning
◦ Implementation
◦ Checking and Corrective Action
◦ Management Review
Cont.
ISO 14001 core themes include:
◦ Prevention of pollution
◦ Shared responsibility for environmental management
◦ Leadership by top management
◦ Interdependence of all elements of the EMS
◦ Well-managed systems and procedures in support of quality
performance
Reasons for ISO 14001 Registration
•Streamline environmental effort (35%)
•Senior management directive (26%)
•Competitive advantage (21%)
•Customer pressure (16%)
Registration/Certification to ISO 14001
•Done by independent, accredited body
•Accreditation done by country’s National Standards agency, which in
turn is a member of ISO
•International Accreditation Forum (IAF) attempts to achieve
consistent standards of assessment worldwide

17
ISO 14001 Registrations
•Total worldwide to end of 2000: 22,897 in 98 countries
•Increase in certificates in 2000: 8,791
•Country with the most ISO 14001 certificates:
Japan 5,556
Thailand 310
Vietnam 9

18
Obstacles to ISO 14001 Implementation
•Insufficient resources (35%)
•Lack of management support (27%)
•Cost of certification and maintaining the environmental
management system (24%)
•Incorporating ISO 14001 requirements with existing management
system (12%)
Key requirements:
•Understanding by the organization’s top management of the resources needed
for an effective EMS
•Commitment and support from top management
•Provision of resources (e.g., people, time, money, equipment) by management
•Honest assessment of environmental and business goals, and willingness to
follow through on commitments
ISO 14001 Environmental Policy
•A statement of intentions and principles to guide environmental performance
•A framework for action; gives the overall direction for activities in the
organization
•Motivator for implementing and maintaining the environmental management
system
•All subsequent actions are judged against intentions stated in the policy
Cont.
•Other possible considerations:
Sustainable development principles
Use of Best Economically Achievable Technology to reduce pollution
Use of environmental performance evaluation
Life cycle thinking
Product and process design to minimize environmental impacts
Environmental Aspect and Impact
Environmental Aspect and Impact
•Aspect: “Element of an organization’s activities, products, or services that can
interact with the environment”
•Impact: “Any change to the environment, whether adverse or beneficial, wholly
or partially resulting from an organization’s activities products, or services”
•The relationship between the two is causal: an impact is the pollution that
would result if an environmental aspect were not properly managed or
controlled
 ISO 14001 Environmental Aspects says:
•The organisation shall establish and maintain (a) procedure(s) to
identify the environmental aspects of activities, products, or services
that it can control and over which it can be expected to have an
influence, to determine those which have, or can have, significant
impacts on the environment

25
Environmental Aspects
•Features of a company’s operations, processes, activities, products, or services
that can have an impact (good or bad) on the environment
•Examples:
use of raw materials
use of resources
discharges to water, air, or land
filling a storage tank with chemical or oil
noise emissions
effects of products when used

26
Environmental Impact
•Reduced oxygen in a river due to waste water discharge
•Contamination of the air by particulate and/or gas (such as sulphur dioxide,
carbon dioxide, nitrogen oxides)
•Ground contamination by oil or chemical
•Destruction of wildlife habitat
•Recycling of paper, metal, plastic, glass

27
Reasons for Identifying Environmental
Aspects
•Guide the setting of new environmental objectives and targets as part of the
commitment to continual improvement
•Focus operational controls on significant environmental aspects
•Reduce risks from significant environmental aspects
•Identify training needs
ISO 14001 Legal and Other Requirements
says:
•The organization shall establish and maintain a procedure to have
access to legal and other requirements to which the organization
subscribes that are applicable to the environmental aspects of its
activities, products, or services
Legal and Other Requirements
•Organization must have a procedure to identify, access, and keep up-to-date
legal and other requirements relevant to its environmental aspects
•Responsibility should be assigned for maintaining the procedure, and for
communicating legal and related information to those who need it
•Personnel whose activities may affect the environment should be made aware
of legal and other requirements relevant to their job responsibilities
•The Environmental Policy commits the organization to compliance with legal and
other requirements
•Consideration of legal and other requirements is essential when setting
environmental objectives and targets
ISO 14001 Objectives and Targets
ISO 14001 Objectives and Targets says:
•The organization shall establish and maintain documented
environmental objectives and targets at each relevant function and
level within the organization
•The objectives and targets shall be consistent with the
environmental policy, including the commitment to prevention of
pollution
“Objectives” Defined
•Environmental goals (preferably quantified) that an organization sets in order to
achieve continual improvement and prevention of pollution as stated in its
Environmental Policy
•Example: Reduce emissions of sulphur dioxide from manufacturing operations
by 20% by the end of 2003
•Quantities of wastes sent to landfill, Energy use (electricity, coal, fuel oil, gas),
Volume of water used in manufacturing process, Emissions of gases and
particulates to atmosphere
“Targets” Defined
•Specific and (where possible) measurable performance requirements
set for the organization, internal departments, groups or individuals,
that will lead to the achievement of an Objective
Examples of Targets
•By June 2020, identify emission control technologies to achieve 20% reduction
•Conduct cost-benefit analyses of emission control technologies by September
2019
•Select emission control technology and award contract for installation by March
2019
•Install and commission emission control equipment by December 2019
ISO 14001 Environmental
Management Programs
ISO 14001 Environmental Management
Programs says:
•The organization shall establish and maintain programs for achieving
its objectives and targets, including:
(a) designation of responsibility for achieving objectives and targets at each
level and function of the organization
(b) the means and time-frame by which they are to be achieved
Environmental Management Programs
•An environmental management program (EMP) is an action plan specifying:
How objectives and targets will be accomplished
Who is responsible for achieving them
Who will manage and supervise the activities
Who will carry out the work
What they will do
What resources are needed (e.g., people, skills, equipment, time, money)
When the tasks will be completed (i.e., a schedule)
ISO 14001 Structure and
Responsibility
ISO 14001 Structure and Responsibility
says:
•Roles, responsibility, and authorities shall be defined, documented,
and communicated to facilitate effective environmental
management
•Management shall provide resources essential to the
implementation and control of the environmental management
system. Resources include human resources, and specialized skills,
technology, and financial resources
What are Roles, Responsibilities, and
Authority?
•Role is the position an individual occupies with an organization (job title), and
the relationship of that position to others in the organization
•Responsibilities are the assigned duties and obligations of an individual in a role
•Authority is the power and influence an individual has to carry out
responsibilities
What is Meant by “Defined, Documented,
and Communicated”?
•Defined: the organization has identified the positions and responsibilities
required to effectively plan, implement, and maintain the EMS
•Documented: roles, responsibilities and authority have been written down
◦ e.g., job descriptions, organization charts, operating procedures,
memoranda
•Communicated: roles, responsibilities and authorities have been made known
and are understood by all personnel
Top Management’s Role
•Build awareness of, and motivation for, environmental protection
•Communicate environmental values and commitment to the environmental
policy
•Integrate environmental awareness into the organizational culture
Individual’s Role
•It is the commitment of individuals with shared values that
transforms an EMS from procedures and documents into a way of life
at work
ISO 14001 Training, Awareness and
Competence
ISO 14001 Training, Awareness and
Competence says:
•The organization shall identify training needs. It shall require that all
personnel whose work may create a significant impact upon the
environment have received appropriate training
Awareness
•People accept responsibility more readily if they understand why their actions
are important
•People become self-motivated, so less reinforcement by management is
required
•Emphasises that environmental protection is everyone’s responsibility
•Helps to generate commitment by employees
Competence
•The application of knowledge, understanding, judgement, and skill to
consistently carry out an activity effectively and efficiently to a pre-set standard
•The objective of training should be to develop competence, or the means to
attain competence
Specific Training Requirements
•Top management
•Personnel responsible for identifying environmental aspects and impacts
•Personnel responsible for ensuring legal compliance
•Operating procedures for employees carrying out tasks where there is a risk of
significant environmental impact
•Emergency response team
•Persons handling hazardous materials
•Employees involved in environmental monitoring
•Waste treatment personnel
•Internal environmental auditors
ISO 14001 Communication
ISO 14001 Communication says:
•With regard to its environmental aspects and environmental
management system, the organization shall establish and maintain
procedures for internal communication between the various levels
and functions of the organization
The Purpose of Communication in ISO
14001
•Demonstrate management commitment to the environment; motivate
employees
•Address concerns about environmental aspects
•Raise awareness of environmental policy, objectives, targets, and EMS
•Increase understanding of internal and external interested parties about the
EMS and environmental performance
ISO 14001 EMS Documentation
What ISO 14001 EMS Documentation says:
•The organization shall establish and maintain information in paper or
electronic form to:
(a) describe the core elements of the management system;
(b) provide direction to related documentation
EMS Documentation Levels
•Policies: High level documents that state the organization’s commitments
•Management System Procedures: Describe the core elements of the EMS, how
they function and who is responsible for each
•Standard Operating Procedures: Organization or department operating
procedures
•Work Instructions: Details of how to carry out specific tasks
ISO 14001 Operational Control
ISO 14001 Operational Control says:
•The organization shall identify those operations and activities that
are associated with identified significant environmental aspects in
line with its policy, objectives and targets
•The organization shall plan these activities, including maintenance,
in order to ensure that they are carried out under specified
conditions
What are Operational Controls?
•Means by which an organization prevents pollution from operations, e.g.:
◦ Pollution control equipment such as scrubbers, filters, precipitators,
clarifiers, biological and chemical treatment, etc.
◦ Alarms for gas, pH, conductance, tank level, etc.
◦ Preventive maintenance practices
◦ Operating procedures

58
ISO 14001 Emergency Preparedness
and Response
ISO 14001 Emergency Preparedness and
Response says:
•The organization shall establish and maintain procedures to identify
potential for and respond to accidents and emergency situations,
and for preventing and mitigating the environmental impacts that
may be associated with them
•The organization shall review and revise, where necessary, its
emergency preparedness and response procedures, in particular,
after the occurrence of accident or emergency situations
•The organization shall also periodically test such procedures where
practical
Key Points
•Prevention (i.e., risk management) is a key component of emergency
preparedness
•An organization must have a procedure for identifying potential accidents and
emergencies
•Need to know all potential sources, types, and environmental impacts of
emergencies
ISO 14001 Monitoring and
Measurement
ISO 14001 Monitoring and Measurement
says:
•The organization shall establish and maintain documented
procedures to monitor and measure, on a regular basis, the key
characteristics of its operations and activities that can have a
significant impact on the environment
•This shall include the recording of information to track performance,
relevant operational controls, and conformance with the
organization’s environmental objectives and targets
Recommended Routine Monitoring
Requirements
•Emissions to air, discharges to water, and solid waste disposal
•Environmental impacts on air, water, land, biota
•Energy consumption
•Chemical, fuel, and hazardous waste handling, storage, and disposal
•Training needs, training conducted, employee awareness and competence
•Communications from interested parties
 ISO 14001 Non-Conformance,
Corrective and Preventive Action
ISO 14001 Non-Conformance, Corrective
and Preventive Action says:
•The organization shall establish and maintain procedures for defining
responsibility and authority for handling and investigating non-
conformance, taking action to mitigate any impacts caused, and for
initiating and completing corrective and preventive action
Consequences of Non-Conformance
•Major Non-Conformance cause: Registration to ISO 14001 delayed until problem
is corrected and re-audited
•Minor Non-Conformance Cause: Can receive registration to ISO 14001 but must
commit to fix problem within 60 days; correction will be confirmed on next
audit
What are Corrective and Preventive Actions?
•Corrective action fixes the immediate problem (e.g., repair a leaking valve)
•Preventive action is designed to stop the problem occurring again, or stop
problems before they happen (e.g., improved maintenance procedures)
•Effective preventive actions are a key to CONTINUAL IMPROVEMENT
ISO 14001 Records
ISO 14001 Records: Basic Principles
•Keep track of performance, activities, information, operating variables, dates
•Demonstrate progress towards targets
•Monitor trends
•Provide proof of activities
•Assess effectiveness of the EMS
•Maintain history of operations
ISO 14001 EMS Audit
ISO 14001 EMS Audit: Definition
•A systematic and documented verification process of objectively
obtaining and evaluating audit evidence to determine whether an
organization’s EMS conforms with the EMS audit criteria set by the
organization (i.e., ISO 14001), and communicating the results of this
process to management
Audits: The Big Test
•Environmental audits of an EMS are usually conducted once or twice a year
•Types of audits:
◦ Internal audits by personnel from the facility, other company sites, or contractors
◦ External audits by independent certified registration body:
◦ Registration (3-year intervals)
◦ Surveillance (every 6 months or 1 year)

73
ISO 14001 Management Review
ISO 14001 Management Review says:
•The organization’s top management shall, at intervals it determines, review
the EMS to ensure its continuing suitability, adequacy, and effectiveness
•The management review process shall ensure that the necessary
information is collected to allow management to carry out this evaluation
•This review shall be documented
•The management review shall address the possible need for changes to
policy, objectives, and other elements of the EMS in the light of EMS audit
results, changing circumstances, and the commitment to continual
improvement