improving environmental performance with … environmental performance... · abstrak . struktur...

IMPROVING ENVIRONMENTAL PERFORMANCE WITH IMPLEMENTATION OF ENVIRONMENTAL MANAGEMENT

SYSTEM

Ho Lee Lee

Master of Engineering 2011

Pu at KbilJm t t u.mat UNIVEItSlTI MALAY

IMPROVING ENVIRONMENTAL PERFORMANCE WITH IMPLEMENTATION OF ENVIRONMENTAL MANAGEMENT

SYSTEM P.KHIDMAT MAKLUMAT AKADEMIK

111111111 rli'~iillllllill 1000246333

HOLEELEE

A thesis submitted in fulfillment of the requirement for the Degree of

Master of Engineering (Environmental)

Faculty of Engineering UNlVERSITI MALAYSIA SARA W AK

2011

DEDICATION

I dedicate this thesis to my family, especially ...

to my husband for opening my eyes to the world;

to my son for he is the source of unspeakable joy in my life;

to my Dad and Mom for their loving care and encouragement.

-

I

ACKNOWLEDGEMENT

I thank God for His strength and perseverance that helped me through the entire research

program. My gratitude towards my research supervisor, Professor Ir. Dr. Law Puong

Ling from Department of Civil Engineering, Universiti Malaysia Sarawak; whose

guidance, comments and patient support throughout the entire research has been deeply

needed and- highly appreciated. Last but not least, I am particularly grateful to my

husband, whose encouragement aided the writing of this thesis in innumerable ways.

11

ABSTRACT

The Environmental Management System (EMS) structure recogmzes that both

environmental and economic performances are qirectly linked with each other. The

primary objective of implementing EMS is to continuously improve an organization's

environmental performance. Benefits of successful implementation of an EMS include

cost reduction in pollution prevention activities, compliance with legislation

requirements, and a better organizational image internationally and locally. This

research looks into 4 most common frameworks of EMS; I) ISO 14001, 2) USEPA's

Performance Track, 3) Responsible Care ®, and 4) Eco-Management Audit Scheme)

Each of the individual frameworks is detailed with their respective entry or certification

criteria, as well as the respective implementation processes. This research also

investigated the relationship between EMS implementation and environmental

performance improvement. Empirical findings of a case study of a multinational

electronics manufacturing facility that implemented ISO 1400 I EMS are presented. The

company implemented ISO 14001 EMS in 2004 and was certified in early 2005. From

January 2004 to August 20 I 0, a total of thirteen Environmental Management Programs

(EMP) were implemented. Out of the thirteen EMP implemented, five EMP were for

legal compliances; four EMP were for environmental operational control and the other

four were for cost reduction through water and chemiGal conservation. In August 2010,

eleven EMP had achieved the targeted environmental performance indicators: four EMP

achieved legal compliances; another four EMP achieved environmental operational

control that resulted in better environmental performance; two EMP achieved water

conservation (16.4% and 9.1 % usage reduction) and one EMP achieved chemical

conservation (8.15% usage reduction) that led to cost reductions. The other two EMP

are still ongoing while some new EMP are being planned.

III

ABSTRAK

Struktur Sistem Pengurusan Alam Sekitar (EMS) telah mengenalpasti bahawa prestasi

persekitaran adalah berhubung erat dengan prestasi ekonomi. Objektif utama

pengamalan EMS adalah untuk meningkatkan prestasi alam sekitar di sesebuah

organisasi. Kejayaan pengamalan EMS akan membawa manfaat seperti pengurangan

kos dalam aktiviti pencegahan pencemaran, memenuhi keperluan undang-undang selain

daripada memberikan imej baik di peringkat tempatan dan antarabangsa. Penyelidikan

ini telah mengkaji 4 rangka EMS yang paling umum, iaitu 1) ISO 14001, 2) USEPA

Performance Track, 3) Responsible Care ® dan 4) EMAS. Setiap rangka telah

diterangkan kriteria keahlian atau keperluan persijilan dan juga proses pengamalannya.

Penyelidikan ini juga mengkaji hubungan di antara pengamalan EMS dan peningkatan

prestasi alam sekitar serta pengurangan koso Satu organisasi multinasional yang

mengilangkan komponen elektronik dan mengamalkan ISO 14001 EMS telah dipilih

untuk kajian secara mendalam. Organisasi ini telah mengamalkan ISO 14001 EMS

sejak tahun 2004 and mencapai persijilan antarabangsa pada awal tahun 2005. 13 projek

alam sekitar telah dilaksanakan oleh organisasi ini sejak lanuari 2004 sehingga Ogos

201 O. Antaranya, perlaksanaan 5 projek adalah untuk tujuan memenuhi keperluan

undang-undang, 4 projek adalah untuk pengendalian operasi alam sekitar and 4 projek

lagi adalah untuk tujuan pengurangan koso Sehingga Ogos 2010, 11 projek alam sekitar

telah mencapai matlamat yang bertujuan untuk memenuhi keperluan undang-undang,

peningkatan pengendalian operasi alam sekitar serta pengurangan koso 2 projek alam

sekitar yang lain masih dalam proses pelaksanaan sementara beberapa projek baru juga

direncanakan.

IV

Pus t Khidm t Maklum r ON 'E m MALAYSIA

TABLE OF CONTENTS Page

DEDICATION

ACKNOWLEDGEMENT 11

ABSTRACT 111

ABSTRAK IV

TABLE OF CONTENTS V

LIST OF TABLES Xl

LIST OF FIGURES X11

LIST OF ABBREVIATIONS & SYMBOLS XIV

CHAPTER 1 INTRODUCTION

1.1 Environmental Management System (EMS) and 1 Environmental Performance

1.2 Role of EMS Implementation in Environmental Performance 3

1.3 Common Frameworks of EMS 6

1.4 Other Frameworks of EMS 10

1.5 Problem Statement and Hypothesis 10

1.6 Objectives and Outcomes 11

1.7 Scope of Research 11

CHAPTER 2 LITERATURE REVIEW 13

2.1 ISO 14001 Environmental Management System 13

2.1.1 Overview of ISO 14001 13

2.1.2 Benefits from ISO 14001 EMS Implementation 15

2.1.3 Process Steps in Establishing an ISO 14001 EMS 26

2.1.4 Summary 30

v

,......

2.2 Perfonnance Track 32

2.2.1 Overview of Perfonnance Track 32

2.2.2 Perfonnance Track Design 34

2.2.3 Implementation of Performance Track 39

2.2.4 Environmental Perfonnance Improvement 40 Achieved by Perfonnance Track

2.2.5 Summary 41

2.3 Responsible Care ® 46

2.3.1 Overview of Responsible Care ® 46

2.3.2 The Cores of Responsible Care ® 48

2.3.3 The Responsible Care ® Global Charter 53

2.3.4 Health, Safety and Environmental Perfonnance 60 Improvement Achieved by Responsible Care ®

2.3.5 Summary 70

2.4 Eco-Management Audit Scheme (EMAS) 71

2.4.1 Overview of EMAS 71

2.4.2 Benefits of Implementing EMAS 73

2.4.3 The Main Stages of EMAS 75

2.4.4 Summary 76

CHAPTER 3 METHODOLOGY 77

3.1 Phase 1: Setting Up the EMS Milestone 80

3.1.1 Obtain Management Commitment 80

3.1.2 Establish the EMS Committee 80

3.1.3 Appoint Management Representative 80

3.1.4 Develop EMS Project Milestone 81

Vi

3.2 Phase 2: Conducting Initial Environmental Review 81

3.3 Phase 3: EMS Strategic Planning 84

3.3.1 Initiate Environmental Aspect and Impact Identification 84

3.3.2 Significant Environmental Aspects Determination 88

3.3.3 Setting Environmental Policy and Objectives 92

3.3.4 Identification of Legal and Other Requirements 92

3.3.5 Establish Organization Targets and Programmes 93

3.4 Phase 4: System Development 94

3.5 Phase 5: EMS Implementation 97

3.6 Phase 6: EMS Performance Evaluation 99

CHAPTER 4 RESULTS AND DISCUSSION 100

4.1 EMP I: Legal Compliance for Chimneys 100

4.1.1 Project Background 100

4.1.2 Project Details and Results 101

4.2 EMP 2: Waste Management Programme Implementation 102



4.3 EMP 3: Provision of Sheltered Scheduled Waste Storage Area 103 and Spill Containment



4.4 EMP 4: Classification of Scrap Material 104



VB

4.5 EMP 5: Upgrading of Sewage Treatment System 105



4.6 EMP 6: Upgrading of Wastewater Treatment System 107



4.7 EMP 7: Awareness Training for Proper Handling of Chemical, 109 Water and Draining of Wastes



4.8 EMP 8: To Obtain Approval of Waste Treatment Plant and 111 the Change in Final Discharge System Design



4.9 EMP 9: Labelling ofAll Listed Poison 113



4.10 EMP 10: Water Recycling Project 114



4.11 EMP 11: Water Conservation Project 117



4.12 EMP 12: Electricity Conservation Project 119



Vlll

I

4.13 EMP 13: Chemical Conservation Project 121



4.14 Summary of Results of EMP 124

CHAPTER 5 CONCLUSIONS 125

REFERENCES 128

IX

APPENDIXES

Appendix A: EMS Steering Committee's Organization for Company ABC 132

Compliance of Company ABC

Feasibility Report of Company ABC

Appendix B: Environmental Impact Register Data Sheet for Company ABC 133

Appendix C: Environmental Impact Register Summary for Company ABC 134

Appendix D: Legal and Other Requirement Register & Evaluation of 135

Appendix E: Environmental Management Project Request / 136

Appendix F: Project Planning of Company ABC 137

Appendix G: Project Progress Report 138

Appendix H: Monthly Average Electricity Cost Per Throughput 139 In Company ABC from October 2005 - September 2007

x

..W'

LIST OF TABLES

Table No. Page

1.1 Elements Required by Major EMS Frameworks 7

1.2 Other Common Elements Found in Major EMS Frameworks 9

2.1 Worldwide Number oflSO 14001 Certification as of 18 December 2006 / January 2007 (2)

2.2 ISO 14001 :2004 Worldwide Certification Number from 20 December 2005 to December 2008

2.3 Environmental Performance Table 37

3.1 Key Category and Area Covered 82

3.2 Type of Data Collected 83

3.3 Severity of Impact 90

3.4 Probability of Occurrence 91

3.5 Control Mechanism 91

4.1 Summary Data for Zone S Chemical Consumption 122 per Throughput (Quarter 1 2006 - Quarter 42007)

4.2 Summary of Results of EMP 1 to EMP 13 124

Xl

LIST OF FIGURES

Figure No. Page

2. 1 Worldwide Number of ISO 14001 Certification as of 16 January 2006

2.2 Worldwide Number ofISO 14001 Certification as of 17 December 2006 / January 2007 (1)

2.3 ISO 14001: 2004 Worldwide Total of Certificates from 20 December 2005 to December 2008

2.4 Annual Growth of ISO 14001 : 2004 Certification from 21 December 2005 to December 2008

2.5 Top 10 Countries for ISO 14001: 2004 Certification from 21 December 2005 to December 2008

2.6 Logo of EPA Perfonnance Track 32

2.7 Perfonnance Track Total Membership from 2000 - 2008 34

2.8 Cumulative Improvements in Perspective (2000-2007) 42

2.9 Environmental Perfonnance of Upstream, Inputs, 43 Nonproduct Outputs and Downstream of Performance Track Members (2000-2007)

2.10 Targets Set and Achievement of Performance Track 45 Members (2000-2007)

2.11 The Listing of 53 Organizations that Participated in 47 ICCA's Responsible Care ® Initiative

2.12 Responsible Care ® Logo 47

2.13 Codes of Practice 51

2.14 Lost Time Injury Frequency Rate of20 European 61 Countries in 2003,2005 and 2007

2.15 Atmospheric Emissions of Total Carbon Dioxide 64 from 2000 - 2007

2. 16 Carbon Dioxide Intensity from 2000 - 2007 65

2.17 Atmospheric Emissions of Sulphur Dioxide in Percentage 66 and Tonnes from 19 European Countries in 2003,2005 and 2007

Xli

2.18 Atmospheric Emissions of Nitrogen Oxides in Percentage 66 and Tonnes from 19 European Countries in 2003, 2005 and 2007

2.19 Non-methane Volatile Organic Compounds Atmospheric 67 Emissions in Percentage and Tonnes from 20 European Countries in 2003,2005 and 2007

2.20 Hazardous Waste Produced in Percentage and Tonnes by 67 19 European Countries in 2003, 2005 and 2007

2.21 Non Hazardous Waste Produced in Percentage and 68 Tonnes by 19 European Countries in 2003, 2005 and 2007

2.22 Release of Nitrogen to Water in Percentage and 68 Tonnes by 19 European Countries in 2003, 2005 and 2007

2.23 Release of Phosphorus to Water in Percentage 69 and Tonnes by 20 European Countries in 2003, 2005 and 2007

224 Chemical Oxygen Demand in Percentage and Tonnes of 69 20 European Countries in 2003, 2005 and 2007

2.25 The EMAS Logo 72

3.1 Six Main Phases of EMS Implementation 79

3.2 Aspect Identification Process 86

3.3 Environmental Aspects and Impact Analysis Process 87

3.4 Risk Index Calculation for Company ABC 88

3.5 EMS Documentation Structure of Company ABC 95

3.6 EMS Implementation Process Flow Chart 98

Xlli

1

LIST OF ABBREVIATIONS & SYMBOLS

APR

BSI

BOD

C02

COD

CAER

CCPA

CEFIC

DOE

DOSH

EC

EEA

EEC

EMAS

EMP

EMR

EMS

EPA

EQA

EU

Ft2

gIL

Gal

GHG

Annual Performance Report

British Standards Institution

Biological Oxygen Demand

Carbon Dioxide

Chemical Oxygen Demand

Community Awareness & Emergency Response

The Chemistry Industry Association of Canada

European Chemical Industry Council

Department of Environment

Department of Occupational Safety and Health

European Commission

European Economic Area

European Economic Community

Eco-Management and Audit Scheme

Environmental Management Programme

Environmental Management Representative

Environmental Management System

Environmental Protection Agency

Environmental Quality Act, 1974

European Union

Square foot

Gram per litre

Gallon

Greenhouse Gases

XIV

GPM

GWP

HFCs

HSE

HVAC

ICCA

ISO

KPKT

LTIR

m 3/hr

MR

NOx

NMVOCs

PDCA

ppm

RC®

RO

S02

SS

TC207/SCI

UK

US

USEPA

]

Gallons per minute

Global Warming Potential

Hydrofluorocarbons

Health, Safety and Environment

Heating, Ventilating, and Air Conditioning

The International Council of Chemical Associations

International Organization for Standardization

Kementerian Perumahan dan Kerajaan Tempatan

Lost Time Injury Frequency Rate

Cubic meter per hour

Management Representative

Nitrous Oxide

Non-methane Volatile Organic Compounds

Plan-Do-Check-Act

Part per Million

Responsible Care ®

Reverse osmosis

Sulphur Dioxide

Suspended Solid

Subcommittee/Working Group of ISO on EMS

United Kingdom

United States of America

United States' Environmental Protection Agency

Degree Celsius

xv

CHAPTER 1

INTRODUCTION

1.1 Environmental Management System (EMS) and Environmental

Performance

The concern for the envirorunent is rapidly rising especially in those countries that are

currently experiencing significant envirorunental impacts, such as global warming.

Clarke (1989) argued that at its core envirorunental management asked two questions:

(1) What kind of planet do we want? and (2) What kind of planet can we get? Barrow

(2006) viewed that the ultimate goal of most organization's envirorunental managers is

to ensure that there is an optimum balance between envirorunental protection and

allowing human liberty.

An Envirorunental Management System (EMS) is a practical way to enhance a

company's envirorunental performance and to ensure that an organisation is effectively

managing its envirorunental risks (Nicholas and Smith, 2005). Alberti et al. (2000)

viewed EMS as a systematic approach to effectively integrate envirorunental

considerations into an organization's day-to-day operation and management culture.

According to Richelsen et al. (2000), EMS could provide a predictable structure for

managing, assessing and continuously improving the effectiveness and efficiency for

I

managing the environment. Such approach also builds in periodic review by top

management and emphasises continuous improvement instead of crisis management.

Many definitions of EMS have been developed in the past few years and the most

recognised definition is by TC 207/SC 1 from International Organization for

Standardization (DSM, 2004) that defines an EMS as "part of an organization's

management system used to develop and implement its environmental policy and

manage its environmental aspects." The EMS structure recognizes that both

environmental and economic perfonnances are directly linked with each other (Alberti

et aI., 2000). The primary objective of implementing an EMS is to continuously

improve the organization's environmental performance. Successful implementation of

an EMS would lead to cost reduction in pollution prevention activities, compliance

with regulatory requirements, and a 'better organizational image internationally and

locally (Muhamad Awang et aI., 1999). Pollution prevention strategies help reduce or

eliminate environmental concerns at source, resulting in less waste, more efficient use

of inputs reduced risk and liability that may be reflected in lower insurance premiums

and avoid contingency expenses, and many other environmental, health, safety, and

financial benefits (Morris, 2004). EMS offers the opportunity for a facility to integrate

its chemical and product quality management and planning efforts, so that the focus is

not just on hazardous chemicals or wastes, but also on prudent use of all materials and

resources by the organization (MassDEP, 2007).

Environmental perfonnance is a new central concept in systematic environmental work.

Piper et al. (2003) viewed that environmental perfonnance is what the organization

2

accomplishes through its environmental efforts over a particular period of time.

According to ISO/TC/SC4 in ISO 14031 (1999), environmental performance is "the

result of how well the organization handles its environmental aspects, or the result of

how well the organization is able to handle its environmental aspects." The definition

of environmental performance in ISO 14001:2004 (DSM, 2004) is "the measurable

results of an organization's environmental management system of its environmental

aspects based on the organization's environmental policy, environmental objectives,

environmental targets and other environmental performance requirements."

1.2 Role of EMS Implementation in Environmental Performance

EMS has demonstrated to provide measurable environmental as well as business

perfonnance improvements for many countries; be it in the local governments or

private sector organizations throughout the world over the last decade or more.

Recognizing these benefits, more organizations have developed and implemented EMS

to achieve similar enhancements in various activities and facilities. Besides, Sheldon

and Yoxon (2006) wrote that EMS plays a vital role in environmental performance, as

in maintaining compliance with relevant legislation and regulation. An organization

has to understand how the EMS works in relationship with legislation, tracking the

development of environmental regulations, and knowing where to look for further

information for the assurance staying within the law. According to Harte (1992);

McEldowney (1996) and BeIl (1997), environmental laws provided the framework for

regulating the use of the environment and crucial for environmental management aiding

the protection of the environment and biodiversity.

3

With respect to the measurement of environmental performance, different companies in

different countries have been using different approaches; such as environmental

performance surveys, questionnaires, data collection, raw material usage data

monitoring and other techniques (Stasiskiene and Staniskis, 2005). Different

frameworks of EMS might also suggest the different methods 10 measunng

environmental performance as a whole, and the results can vary tremendously,

depending on given answers and style of information expression. Differences in the

interpretation of presented information and other discrepancies can also affect the

evaluation of an organization. However, it is suggested that basic data should include

infonnation obtained through implementation of environmental management system in

their organization over a period of time.

Organizations are attracted by very practical benefits through implementation of EMS

in their organizations, such as effective management of raw materials, improved

operating efficiency, avoidance of penalties for transgression of environmental

legislation, reduced energy and water consumption, costs reduction such as reduced

insurance costs, reduced raw material usage through waste minimization, pollution

prevention and consequently improved corporate performance and increase of overall

sales (Morris, 2004). Sangster (1993) from Esso Petroleum, United Kingdom had

personally experienced the improvement of environmental performance, such as

relative reduction m effluent test results and reduction of volumes of oily wastes

disposed off site, m Esso's petroleum distribution operations through management

action with relatively small level of investment. According to Sangster (1993), it

covered the establishment of an environmental management system incorporating field

measurement, stewardship of results and management of corrective action to maintain

4

I P sat Khldmat M kJumat A fmil-; UNTVERSm MALAYSf.O\ ARAWAJe'

progress towards meeting self-imposed targets. Besides, EMS implementation also

aims for proactive management, in the aspect of taking action in advance of legislation

before they are realized in the form of regulations (Sheldon and Y oxon, 2006).

Within business, most environmental management perfonnance measurement or

accounting activities seem to be taking place in the manufacturing sectors rather than in

service or resource extracting sectors. According to Stasiskiene and Staniskis (2005),

this is due to materials accounting of environmental management system, which can

help manufacturing facilities gain better understanding of material flows and related

costs. In other words, the perspective created according to evaluation of

implementation of various environmental management programmes allows managers to

see economic values of natural resources, and the business and financial value of good

environmental performance. Richelsen et al. (2000) reported that Kuching, city of

Sarawak was selected as the project area for EMS implementation in June 1999 through

the Sustainable Urban Development Project by State Government of Sarawak in

collaboration with the Danish Cooperation on Environment and Development

(DANCED). The focus of the Kuching City-EMS project was placed on the

monitoring of the environmental quality, producing environmental statements and

keeping the management infonned on the development in the environment and the need

for corrective measures. Therefore, implementation of EMS can be treated as a sound

conceptual basis for measuring environmental impact of company's activities and

linking it to environmental and economic perfonnances in order to identify and

implement win-win situations (Stasiskiene and Staniskis, 2005).

5

1.3 Common Frameworks of EMS

Several organizations, including governments, independent standards developers, and

trade organizations have developed frameworks that companies can use to assure

quality environment performance. Common frameworks that companies generally use

for creating EMS include ISO 14001, EPA National Performance Track, and

Responsible Care ®. These frameworks commonly share the required elements of an

EMS that are designed to assure that the company or organization using the system will

be able to consistently manage and minimize the impact its operations may have on the

environment (MassDEP, 2007).

Table 1.1 summarizes the key elements required in the three major EMS frameworks.

However, it is noteworthy that different frameworks may share those common

elements, whereby they may be managed differently among frameworks. It is noted

that each of the elements listed in Table 1.1 have common definitions. Table 1.2

describes some of the other common elements used in major EMS frameworks with

certain degree of variation across different frameworks.

6

Table 1.1 Elements Required by Major EMS Frameworks

Element Description of ISO Performance

RC®Element Goals 14001 Track I

Environmental Develop a statement of Policy organisation's

~ ~ ~ commitment to

Ienvironment. Environmental Identify environmental Aspects and attributes of products,

~ ~ ~Impacts activities and services and impacts on the environment.

Legal and Other Identify and ensure ~ ~ ~Requirements access to relevant laws

and regulations. Objectives & Set environmental goals

~ ~ ~ Targets for the organization. Environmental Plan actions to achieve Management objectives and targets. ~ ~ ~ Programs Structure and Establish roles and

IResponsibility responsibilities within the ~ ~ ~ organization.

Training, Ensure that employees I I

Awareness and are aware and capable of ~ ~ ~ Competence their environmental

resp_onsibilities. Communication Develop processes for

Iinternal and external communications on ~ ~ ~ environmental management issues.

EMS Maintain information I

Documentation about EMS and related ~ ~ ~ documents.

Document Ensure effective I

Control management of ~ ~ ~ procedures and other

Idocuments. Operational Identify, plan and Control manage organization's

operations and activities ~ ~ ~ I

inline with the policy, I

objectives and targets, and significant aspects.

IEmergency Develop procedures for ~ ~ ~

7

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