1-Constraints in Implementation of EMS. 1- Higher management commitment and employees behaviour:

1- Higher management commitment and employees behaviour:

A detailed review has been conducted in order to understand and; assess the role and significance of these constraints in implementation of EMS.

1- Higher management commitment and employees behaviour: Top management commitment and training of the employees is considered an important point for successful implementation of any management system either it is ISO quality management system or it is EMS. For effective planning and development of an environmental policy require top management’s commitment (Sasseville et al 1997: p.72) three steps has been suggested for this purpose

1-      “Ensuring top management commitment and leadership.

2-      Performing an initial environmental review

3-      Developing an environmental policy.”

 . Amar and Zain (2002) points ‘lack of management commitment leads to ineffectiveness of the whole system. Some respondents argue that it is difficult to change the mindset of the employees, and employee’s behaviour is considered a great hurdle in implementation of EMS (Abdullah & Focng 2010).

 Although, EMS provides full guideline and information for implementation but is nothing without full commitment of trained employees under the leadership of motivated and committed management for successful implementation (Zhang: 2000).Employees, resistance against organizational change and fear of change adoption is considered a barrier in implementation of EMS. Sassevile et al (1997:71) argue that ISO14001 requires real commitment of management with full participation of employees and this must be defined in environment policy of company. Moreover, top management commitment is claimed three times more important than environmental policy development and four time more significant that continual management review (Ponsinska et al: 2003, p. 590). In addition, it requires looking at different aspects of business imposed by external and internal forces and their impact on environmental management and performance.

  Zutshi and Sohal (2004:401) and Sassevile et al (1997) agree that management plays vital role to develop the environmental policy and in setting objective and goals and to ensure the full participation of every employee.

Every employee’s participation requires knowledge, training and motivation and the employees participation can be exemplified as team work, commitment, dedication (Zhang: 2000 p.47). Similarly, the better understanding of the environmental management issues (Ponsinska et al: 2003, p. 590), creation and development of policy & procedures can enhance the motivation and participation of employees. In order to improve the environmental performance of the organization top management commitment, participant’s empowerment, incentives and feedback are considered effective tools (Govindarajulu , N. and Daily F.B. 2004).

In addition, they emphasise on the involvement of leadership on every stage of certification process and top management ensure that EMS elements are working in real. Higher management is also responsible to allocate reasonable resources like time, money and manpower. The success of EMS and policy lies in implementation and it is the responsibility of every person in the organization. It is identified that “inability to realize the benefits of EMS, the perceived complexity of the ISO 14001 standard and too much documentation are considered as a barrier to top management commitment.  Usually, in organizations environmental department is considered as stepchild and besides that management do not show commitment which ranks on fifth number (score 3.06) in a survey conducted by Babakri et al (2003). Management is responsible for training and development of the employees to achieve the set targets. Motivation and rewards are considered supporting elements to get the full commitment of employees.

 Zutshi and Sohal (2004) suggested following points for successful implementation stated as

·         “ Providing leadership and motivation to employees at all level

·          Appointing a champion for overseeing the implementation

·         Assisting the EMS implementation manager in finalising goals and objectives

·         Allocating time for communication , training and motivation

·         Providing adequate and timely resources for implementation of the changes required as a part of EMS implementation. 

Lack of awareness and understanding of the EMS & environmental issues is another constraint followed by   management commitment has been discussed.

2.4 Implementation of EMS: Constraints and Barriers

2.4 Implementation of EMS: Constraints and Barriers

 ISO 14000 series comprises of many standards but the main standard which provides the guideline for getting certification is ISO14001. Five key elements as mentioned earlier in figure 1.2.1 consist of many sub sections with specific detail and information for setting up environmental management system of any organization. A study conducted by Zhihai (2000) in China found that market competitiveness and strategic capabilities can be achieve with implementation of TQM, similar view stands for EMS implementation. The concept of EMS development and implementation is based on Deming’s rule of Plan, Do, Check, and Act, of quality management system (Watson and Emery: 2004). Similarly, EMS implementation evaluation and assessment is based on the same concept. This section gives idea about the constraints and barriers in implementing environmental management system and its impact on environment.

 Regarding the significance of implementation of EMS, a United Nations International Development Organizations (UNIDO)’s survey in 31, less developed countries, from certification bodies and trade unions indicates the main three reasons stated as

·         “To help demonstrate conformity to environmental legislation

·         To meet overseas consumer demand

·         To reduce cost of implementing mandatory standards”

Second points is the most important that indicates conformity with international standards as an external pressure for environmental performance (Sheldon, 1997: p.170).

 The previous literature shows the identical critical success factors for successful implementation and maintenance of EMS. Similarly, the work has done befor (Babakri, Bennet, Franchetti 2003, Massoud et al 2010, Zutashi and Sohal 2004) regarding the constraints & barriers those which are considered as hurdles in full adoption and implementation of this standard. Moreover, it evident that manufacturing sectors was leading in implementation and certification process than non manufacturing and services sector. However, the supporting bodies like public sector, NGOs, and environmental consulting firms are directly or indirectly striving as well, in same context of full conformance of ISO standard (Quazi: 1999) in different countries regarding the nature of the organization. James (1999: p 338) considered’ the gap between policy formulation, understanding of the issue, implementation requirements and need of the system may be another constraint in implementation of EMS in full.

The main objective of implementation of EMS is to improve the performance of the organization on regularly basis (Massoud et,al 2010) with continuous overall improvement of the management system. For sustainable development, implementation of EMS is unique aspect along with higher management commitment which cannot be ignored (Marcus et al 1997). Top management is responsible to develop environmental policy, resources, capabilities and infrastructure of the organization to confirm that your company is in conformance with demand of EMS. Sassville et al (1997:99) suggested following steps for implementation of EMS

·         “Establishing a structure and responsibilities.

·         Providing training, and ensuring awareness and competence.

·         Establishing external and internal communication.

·         Documenting the EMS.

·         Providing document control.

·         Ensuring operational control.

Most of the environmental experts (Massoud et al. 2010, Quazi 1999, Babakri et al 2003,  Rezaee & Elam 2000, Adams 1990) have consensus that following are the main factors considered as constraints in implementation of EMS or may be considered as critical success factors for successful adoption, implementation and maintenance of EMS.

·         Lack of top management commitment

·         Lack of Awareness

·         Lack of employees commitment and training

·         Lack of Financial resources

·         Cost of certification

·         Unclear responsibility

·         Poor public sector support and weak enforcement of policies

·         Less incentives and rewards

·         Uncertainty about the benefits of certification

·         Week  technical expertise

2.3 Environmental Management System (EMS) and Sustainable Development

2.3 Environmental Management System (EMS) and Sustainable

   Development:

Over last two decades, the idea of ‘sustainable development’ has become the main focus of the process and design experts due to growing awareness about environmental concerns (Marcus et al 1997 p. xi, Fortunski 2008 p.204) and has become the integral part of business policy (Pun and Hui:2001). Depletion of natural resources, consumption more than generation, land degradation, biodiversity, climate change and global warming has shifted attention of policy makers towards sustainable development (Christie et al, 1995 p.1 , Abdullah and Foung 2010 ) and cleaner production rather than ‘command and control approach’. It has been estimated by an economist that about 3-5 % of GDP is spent on cleaning up some of pollution produced by industrialized countries (Taylor B. Et al 1994: 32).

These environmental constraints are outcomes of human economical and industrial activities regardless of the impact of these activities on environment and community.  With changing scenario, increase in productivity and competitiveness with environmental performance improvement; is a challenging aspect for manufacturing sector. In view of Wilson and Sasseville (1999: XVIII) EMS is developed in such a way that it represents a model of cultural change,  awareness to create and hold environmental management system, to identify opportunities, identify ,assess and control the impacts and to create better procedure. So, to overcome such issues and to improve the environmental performance, decision was made to develop standard environmental management system for sustainable development.

 Fortunski (2008) points that the concept of sustainable development provided foundation for development of ISO 14000 series. He argues that ‘a relationship exists between ISO 14000 series and BCSD of the International Chamber of Commerce (ICC). These two aspects have a concern with countries; and with organizations accordingly. Hillary R. (1997: p.2) states that “cleaner production, like environmental management system, is a strategic approach to environmental protection” and cleaner production. In addition, it is considered as promotion of EMS that overall covers the concept of sustainable development. Although, many approaches of sustainable development has been discussed but Brundtland Report (WECD: 1987) provides common definition of sustainable development is given as 

 “Sustainable development is development that meets the needs of the present without compromising the ability of future generations to meet their own needs (Christie et al 1995 p.2)”.

A relation between environmental management system and ICC Business Charter for Sustainable Development is evident from table, labelled below.

Table 2.3.1: The relation between ICC’s Business Charter for Sustainable Development and the Environmental management systems according to the ISO 14000 series

ICC Business Charter for Sustainable Development	Environmental Management System ISO 14000 Series
Item 3- Process of improvement	Permanent Improvement- the pillar of the model of environmental management system
Item -4 Education of employees	Organization of training for employed. Guidelines are in the standard PN-EN ISO 14001:1998
Item-5 Prior assessment of environmental impacts	These aims are represented in the ISO 14000 standard, in particular in the ISO 14004 Standard
Item- 6  Products or services  - environmental impact or safety assessment	Related to life cycle assessment
Item -7 Customer advice	ISO 14001:1998 , Chapter 4.4.3 emphasis communication related to environmental issues with external partner , Eco –labelling is an example
Item-10 Precautionary Approach	Pollution prevention is one of the aim of the ISO 14000
Item -11 contractors and suppliers – communication of environmental management principles	See remarks under item -7
Item- 12 Emergency Preparedness	ISO 14001:1998

 Source: Adopted from Fortunski B. (2008) p.207.                                                                     

In addition to that, adoption of cleaner production technologies as an environmental management tool is necessary for sustainable development. Christie (1995) describes cleaner production technology as a new integrated approach for pollution reduction and prevention at source. Sebhatu and Enquist (2007:478) argue that EMS- ISO 14001 is not only useful to monitor and improve the environmental performance but can also play a significant role for sustainable development.

 However the implementation of such techniques cannot be isolated from environmental management system which is a key element for sustainable development. Although the main focus is on the principle definition of sustainability but there are many other key ideas are associated with sustainability, two of them are stated by Christie et al (1995) as,

·         “the need to minimise use of processes and products that degrade or may degrade environmental quality

·         The need to reduce or prevent the activities that endanger the critical ecological processes on which human and other life depends.

  These two points support the idea of development of new policies and plan to reduce the environmental degradation for green future. Globally, sustainable development has become the hall of mark for better achievements and benefits at both, public and private sector. In last few years, not only the national authorities were committed towards sustainable development but also the international authorities like Asian Development Bank, NGOs UNO and other relevant, were remained mentor and still. It is suggested that, developing countries can get benefits by using experience of developed countries and those countries which will use cleaner production technologies, automatically fulfil many environmental related restrictions (Hoo D in Hillary (ed.):1997).

 In Pakistan, Three years ago, a project under the vision of ‘Switch Asia’ has been introduced with the partnership of UNEP, Lead Partner, Cleaner Production Institute of Pakistan and Iqbal Hameed Trust (IHT) for improvement of the environmental performance of industrial sector. This project is specifically for textile industry and leather industry at initial phase, will lead implementation and improvement of environmental management practices for other manufacturing industries like pulp and paper, sugar, steel rolling etc for long term initiatives. The aim of this project is to assess the different resources and environmental aspects of manufacturing industry and to develop the sustainable and cleaner production chain (European Commission: 2010) and to prepare industrial sector for adoption and implementation of EMS.

The focus of industrial sector and government is to improve the environmental performance and to control the environmental impacts of industrial secto. In order to resolve and overcome such issues like solid waste, waste water dispose off, water and ground contamination, discharge of lead and chromium to water streams ‘Cleaner Production Centre (CPC) has been established in Sialkot district which is centre of tanning industry. (Cleaner Production Centre: 2003-2004).

The correspondent in Tanning industry in Pakistan have realized the importance of EMS adoption and implementation. A project “Cleaner Production in the Tanneries” (CPIT) has been initiated in Sialkot with the mutual funding of Export Promotion Bureau (Government of Pakistan), Norwegian Agency for Cooperation & Development (Government of Norway) under the management of Pakistan Gloves Manufacturers & Exporters Association (GMEA). The main goal of his initiative is to introduce in-house cleaner and sustainable production techniques, improvement of working conditions, and to control the heavily polluted waste water discharge. (Cleaner Production Centre: 2003-2004).

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Other objective of this project is to enhance the technical capacity and sharing of technical information at industrial and institutional level. These objectives will be obtained through different assessments and research work like ‘Life Cycle Assessment (LCA), assessment of local equipment manufacturers, transfer of technology to institutes and universities. Targeted benefits are considered the reduction in cost, improvement in energy utilization, adoption of sustainable and cleaner production techniques and methodology. Induction of Cleaner Development Mechanism (CDM) by ministry of environment is reflects commitment towards sustainable development and management of environmental issues. (European Commission: 2010). Schmidheiny S. (Marcus et,al 1997) introduced a concept of Eco-efficiency which is an extension of  sustainable development in connection  with EMS. Furthermore, in third stage of sustainable enterprise creation following requirement suggested by him shown as in a model confirms the relation between sustainable development and implementation of EMS.

Figure 2.3.1 Path to Eco-Efficiency through ISO 14000

Stage III                                                            

Requirements                                                           Create Sustainable Enterprise

·         ISO 14001                                                                              

·         Life Cycle Assessment

·         Design for Environment

·         Conformance with Ecolabelling Scheme

                                                                                                                                         Benefits

·         Enhanced Market Advantage

·         Improved Business Performance

·         More Efficient Use of Capital

·         Improved Access to Capital

Source: Adopted from Marcus et al (1997), p Xiii

  The author supports this model and this model shows mutual integration of the concept.

One example of sustainable development and adoption of ISO 14001 is Pakistan Refinery Limited (PRL) which is situated in Karachi. PRL is ISO 14001:1996 and OHSAS 18001:1999 certified since November 2002. PRL is fully committed to control the pollution, zero emission, and minimum waste and conservation of natural resources under long term object of sustainable development.

The overall concept of cleaner production and EMS is the same one with single purpose is to improve the environmental performance and capacity building of the organization (Wangen G. In Hillary: 1997) but might be it require separate legislations. It is being considered a step towards sustainable development and environmental management.  The concept of integration for single environmental management system is evolving and urging people to think towards single Sustainable Management System (SMS) (Esquer-Peralta J. et al 2008).

PRL is an excellent example of incorporation of environmental policy of health, safety and environment (Environmental Report 2004, PRL.p.3, 2009). Besides that many other multinational and national manufacturing industries like Attock Cement Limited and Haleeb Foods are certified under ISO 14001. According to federal bureau of statistics of Pakistan, an increasing trend has been reported regarding export in fiscal year 2009-2010 as compared to last year including textile and clothing, agro food,  minerals and mining, industrial goods and manufacturing industry. Over past two and half decades, it has been observed that the numerically export and import difference of Pakistan fluctuated between fifty to sixty percent overall. These aspects of economy receive directly or indirectly enough effect from up gradation and management aspects of the industrial sector likes adoption of quality and environmental management system

.Finally, it is evident from previous literature with practical example that EMS has a strong interaction with Concept of sustainable development and vice versa. It would not be wrong to say that the concept of sustainable development generated the idea of development of environmental management system. Adoption and implementation of EMS has become mandatory but many constraints are in way to impede the process, have been discussed in next part of this chapter. 

2- Review of Literature

2- Review of Literature

2.1 Introduction

This chapter comprises of detailed literature review of environmental management system. It covers review of background of EMS, development of EMS, elements of EMS, its implementation, EMS and its role as a tool for cleaner production & sustainable development. This chapter covers the review of constraints in implementation of EMS in manufacturing industry as well, with having a look on incentives and benefits.

 2.2 Background

Over past few decades, with the increase in production demand and consumption need, industries have adopted the theme of mass production regardless taking into account the aspects of environmental degradation. In past, industrial accidents like, Bhopal disaster in India in 1984(Adams 1990) and other similar incidents before or later on, opened a new way regarding environmental consciousness. 

This figure 2.2.1 represents the environmental pressure group that urged the companies to adopt EMS. Modern technology, customer environmental awareness, government restrictions and similar aspects as labelled are considered the drivers for change.

 This awareness about sustainable development and green future, stressed the international business community to formulate international environmental standards and policies for an effective green business and sustainable development. The adoption and maintenance of EMS was the main element on business agenda (James: 1999) for improving environmental performance to reduce the environmental impact through sustainable improvements and development (Sebhatu and Enquist: 2007).

 Furthermore, on the eve of United Nations Conference on Environment and development (UNCED) in 1992, Business council for sustainable development (BCSD) concluded that the international business community need to develop environmental management standards. In 1993, new technical committee ISO /TC207 ‘Environmental Management’ started work to develop environmental standards with the assistance of other relevant authorities. In 1996, two standards (ISO 14001 and 14004) under the supervision of sub committees, SC1 and SC2 published officially (Sheldon 1997 p.19).

  Almost all environmental experts define environmental management system (EMS) in same context with little variation in wording and position of these wordings. Christie et,al (1995: iX), states that “environmental management systems are set of techniques and disciplines that facilitate movement by firms towards cleaner production”.

Moreover, Sheldon (2006) and other environmental experts describes EMS as a formal approach to improve the environmental performance.

 In addition, talking about socio-ecological aspect of the sustainability, (Sutton P. ed. 1997 in Sheldon p.212, 1997) ‘The Sustainable Development has been described as “development that brings about ecological, social, and economic sustainability while contributing to the achievement of society’s other goals”.

 An over view of EMS has been labelled as under

 Table 2.2.1.: ISO 14000 series overview

Standard Number	Title	Relevance
ISO 14001	EMS: Requirement for use with guidance	Requirements are expressed in Clause 4. Useful additional guidance in annexes which are advisory only
ISO 14004	EMS: General guidance on systems, principles and supporting techniques	Useful background information on the approach to EMS installation
ISO 14015	Environmental assessment of sites and organizations(EASO)	Guidance useful for self-assessment of pre-acquisition audit
ISO 14020-14025	Environment labels and Declarations	Not directly relevant to EMS Implementation. Useful only to those interested in taking part in an eco-labelling scheme
ISO 14031	Environmental performance, evaluation- Guidance for environmental management	Very useful in establishing measurements for objectives and targets and environmental performance indicators as part of an EMS, or as a precursor to the installation of an EMS
ISO 14040-14048	Life Cycle Assessment	Could be useful in getting to grips with LSA as part of your IER
ISO 1405	Environmental Management Vocabulary	Advisory, but very useful to ensure that everyone is using a common terminology. Especially useful to those managing multisite operations
ISO 14063	Environmental Communications	Guidance on the full range of environmental aspects of both internal and external communication.

Source: Adopted from Sheldon & Yoxon (1999) p. 218

Fortunski B. (2008) argues that awareness about increased environmental issues provided an opportunity for sustainable development. In addition to that, McCloskey et al (1994) point that ‘interest in environmental issues from both parties, suppliers and consumers (Ponsinska et al 2003) have become the main focus of the environmental experts. Growing awareness with other external elements of pressure like market demand and customer requirements urged companies to think seriously regarding adoption (Sasseville et al: 1997) and implementation of EMS. If a company do not bother to adopt market driven initiative, might be deprive from tangible benefits and may see organization at a competitive disadvantage. Other stakeholders like unions, customers, suppliers, banks, community, neighbours have their own rights and power and have great influence to get the industrial sector to perform according to their expectations (Wolf J, In Hillary ed., 1997) and it shows the practical demonstration of environmental responsibility.

Social awareness about environment has made the customers sensitive towards sustainable action in routine life (Marcus et al 1997) and for return of organization services; implementation of sound environmental management system has become mandatory. As a result of that in 1991, the Strategic Advisory Group on Environment (SAGE) proposed suggestion and recommendations based on their analysis for further formulation and implementation of environmental management system.

Furthermore, Nee & Wahid (2010) states that “ISO 14001 refers to an organization’s management system ( i-e set of interrelated elements used to establish policy and objectives and to achieve those objectives which encompassed organizational structure planning activities, responsibilities, practices , procedures, processes and resources) used to develop and implement its environmental policy and manage its environmental aspects”( MS ISO 14001:2004 p.2).

   The sustainable development is considered the main theme involved in development and formulation of environmental management systems. In 1994, summit held in America (Miami) acknowledged that “sound environmental management is an essential element of sustainable development.” and the participants promised for sustainable development (Marcus et.al 1997 p.189).

Generally, it is believed that EMS is there to ensure the improvement of environmental performance through audits but in developing countries the perception was pessimistic.EMS was considered as a trade barrier which can’t be met, imposed on the name of harmonization (Wolfe In Hillary Ed.: 1997). The role of EMS system as a driving force for sustainable development has been discussed in detailed in next section.