An EMS is a long-term commitment for any organisation. Implementation and maintenance of any system takes time. Attention needs to be given to aspects of the business, which may have been neglected in the past (e.g. a more detailed focus on waste management).
This attention to detail will need investment in time and equipment, but cost savings (for example, in reduced consumption of energy and materials, and lowered waste disposal costs and taxes), some of which can be realised immediately, can more than offset the costs.
Preparing, implementing, maintaining and improving an EMS requires resources, both human and financial. The costs of these resources need to be considered in the context of the benefits to be obtained, both from the overall system and through specific improvement action plans (e.g. emission control options, waste management options, energy saving measures).
For example, a company implemented an EMS and consequently paid closer attention to the types and quantity of wastes it produced. One waste stream, which was a mix of oil and water, was allowed to stand in a redundant storage tank before disposal.
It was found that the oil and water separated to such an extent that the oil could be recycled and the water was clean enough to be discharged to sewer. The company saved £27,000 in one year in disposal costs. Less than £3,000 had been spent on moving and connecting up the old storage tank.
The following provides an overview of typical costs and benefits.
The ‘acceptance criteria’ in the table shown below are the potential advantages which would make it worthwhile for a company’s management to adopt an EMS.
Costs
- Preparation and implementation of the EMS, e.g. preparatory review, system design, project co-ordination costs.
- Ongoing management and administration of the EMS, e.g. programme implementation, documentary control, auditing.
- Investments in continual improvement, e.g. training, technical innovation, cleaner technology.
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Acceptance Criteria
- payback (how long until the cost of a project is repaid).
- rate of return ('earnings' of the project in relation to its cost over its lifetime).
- licence to operate.
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Benefits
- Recurring savings, e.g. materials, energy, waste.
- 'Intangibles', e.g. market position, staff morale, productivity, improved management.
- Avoided costs, e.g. business disruption, liability costs, staff time when things go wrong.
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Commitment and business benefits
A high level of commitment is required from senior management for effective environmental management. Indeed, ongoing active commitment and leadership is crucial if the organisation is to achieve continual improvement in the environmental management of its activities, products or services. This is true for any organisation introducing a new concept that requires organisational change and commitment.
In organisations where top management are taking the lead, it is essential that they demonstrate (and continue to demonstrate) this to employees at all levels. Where environmental initiatives are originating from a 'bottom-up' process, then it is vital that the full commitment of senior management is attained.
Reasons for commitment and overall responsibility from senior management
- By taking the lead, and demonstrating commitment, personnel at all other levels are more likely to take their environmental responsibilities seriously and be motivated to achieve continual improvement. Action at all levels will be necessary for the organisation to implement an effective EMS.
- It is unlikely that there will be adequate prioritisation, or resourcing in terms of manpower or budgets, without senior management commitment. Such resourcing is essential for the successful implementation of a management programme that addresses relevant environmental priorities.
- Senior management commitment will help ensure that environmental issues are integrated into all aspects of the business, so that there is a total organisational approach, rather than ad hoc developments. This will also assist co-operation and co-ordination between functions, e.g. purchasing, production, marketing and finance.