EMS Building Blocks An Introduction to the Resource Efficient Scotland’s guide to EMS Implementation
EMS Building Blocks: Existing Guide A stage by stage guide to • implementing an EMS based on ISO14001:2004 Tools and templates to support • implementation of your EMS
Revised Guide Covers new requirements of ISO14001:2015 • Additional tools and templates • Methodologies such as SWOT and PESTLE analysis to help meet • the new requirements Information on getting your EMS certified • Information on further support available from Resource Efficient • Scotland: Resource efficiency audits – Metering and monitoring your resource use – Support for implementing resource efficiency measures including – interest free loans Events – Green Champions Training –
Revised Guide: 5 Stage Process Basic Understanding and Leadership Business Context and Direction Aspects and Compliance Obligations Management and Operational Control Accredited Certification
What is new in ISO14001:2015 – Leadership, Context and Integration
Leadership The Basic Building Block of an Environmental • Management System is “ LEADERSHIP ”. Leadership is fundamental to the success of any project, initiative • or business plan. Leadership can be defined as: • “Helping all to do the right things. Leaders set direction, build an inspiring vision, and create something new. Leadership is about mapping out where you need to go to "win" as a team or an organization; and it is dynamic, exciting, and inspiring”. “Yet, while leaders set the direction, they must also use management skills to guide their people to the right destination, in a smooth and efficient way.”
Leadership – the corner stone Leadership is THE corner stone of the new • environmental management system (EMS) requirements. All other requirements are based on the vision or pattern established by leadership.
Leadership and the EMS You need to have a clear idea of why an environmental • management system (EMS) is required for your organisation. You therefore need to be able to answer the following questions: WHY DOES MY COMPANY NEED AN EMS? WHAT ARE OUR DRIVERS FOR HAVING AN EMS?
ISO 14001:2015 Leadership Requirements ISO 14001:2015 states that leadership in Environmental • Managements Systems is required in order to: – a) take accountability for the effectiveness of the environmental management system; – b) ensure that the environmental policy and environmental objectives are established and are compatible with the strategic direction and the context of the organization; – c) ensure the integration of the environmental management system requirements into the organization’s business processes; – d) ensure that the resources needed for the environmental management system are available;
ISO 14001:2015 Leadership Requirements ISO 14001:2015 states that leadership in Environmental • Managements Systems is required in order to: – e) communicate the importance of effective environmental management and of conforming to the environmental management system requirements; – f) ensure that the environmental management system achieves its intended outcomes; – g) direct and support persons to contribute to the effectiveness of the environmental management system; – h) promote continual improvement; – i) support other relevant management roles to demonstrate their leadership as it applies to their areas of responsibility.
Context Business Context is centred around establishing the • internal and external pressures that apply to your company. Every organisation operates within a context and the context is unique to the organisation. Variables in context arise from: • – The products and services delivered to meet customer needs – The financial and people resources available – The location of activities – The activities and processes completed – The strategic vision for the company – The customer and supplier base
Context The implementation of an EMS is a strategic decision • influenced by the context of the organisation. The consideration of context ensures that all internal and • external issues that can impact strategic objectives, processes and the outcomes of the EMS are considered. Setting the context involves a number of key steps: • 1. Establishing scope of activities 2. Establishing Who, What, When, Where, Why and How. 3. Establishing who is an interested party and why. 4. Assessing the business for risks and opportunities (will be covered in a later session) 5. Setting policy (direction).
Context - Scope The scope of the EMS is the determination of the • boundaries of the Environmental Management System It is essentially a simple statement of what it is that your • company does Note: ancillary activities such as distribution should be • included in the scope statement Example scope statement: “We make and bake cakes at our premises and distribute the cakes to our local and national client base”
Context – Interested Parties Interested parties are individuals or groups of people who • ‘focus on’ the performance of your company. Their interests may be in common but each ‘party’ will have a unique slant on your company and what their interest is in your company. It is useful to ask yourself: • “Who is interested in the environmental performance of our company and why are they interested?” You will need to understand the needs and expectations of • these interested parties and determine which of these needs and expectations become ‘compliance obligations’.
Context – Examples of Interested Parties Employees Customers Regulators YOUR Organisation Investor / Bank / Others Shareholders Neighbours Suppliers
Context – Interested Parties Analysis If the needs and expectations of these interested parties • are important to your business you may determine that these needs and expectations become ‘compliance obligations’. To determine this you may undertake an Interested Party analysis: • Interested Party Need or Expectation EMS Critical Customers Supply of goods / services to Yes specification Employees Continued employment No Safe working environment free Yes from pollution Regulators Compliance with the law or site Yes permit
Integration The intended mechanism of ISO 14001:2015 is that it is • integrated into the organisations day to day management and not simply developed as an ‘add on’ or a system that is maintained by a single individual or department An EMS is a management system based on sound management • principles that should support in identification of the strategic direction of the organisation and that should work in partnership with other key business management activities such as financial control. The introduction of the ‘Context’ and ‘Leadership’ clauses • reflects the intention of ‘Integration’ into the business
Integrated Management Systems The ISO 14001:2015 standard has been drafted • alongside other management system standards (such as ISO 9001:2015 - Quality Management Systems) and there is a common structure that allows for integration of the standards to form an INTEGRATED Management System. The Annex SL structure is the high level structure that will be • applied to all management systems standards. This will facilitate the integration of management systems.
Integrated Management Systems The Annex SL structure is the high level structure that • will be applied to all management systems standards and the 10 point major clause structure will be identical: 1. Scope 2. Normative References 3. Terms and Definitions 4. Context of the Organisation 5. Leadership 6. Planning 7. Support 8. Operation 9. Performance Evaluation 10. Improvement
And now it’s time for...
Identifying environmental activities, aspects and impacts
Environmental Aspects and Impacts Definitions: Environmental Aspect : “element of an organisation’s activities, products or services that interacts or can interact with the environment” Environmental Impact : “changes to the environment, whether adverse or beneficial, wholly or partly resulting from an organisation’s environmental aspects ”
Environmental Aspects and Impacts ISO 14001:2015 requires that: “Within the defined scope of the EMS the organisation shall determine the environmental aspects of its activities, products and services that it can control and those that it can influence , and their associated environmental impacts , considering a lifecycle perspective ” So how can we go about achieving this?
Environmental Aspects and Impacts The easiest approach to this is to develop a process • diagram of what you organisation does. Company data such as your current supplied products list • would be useful to review at this stage. Each input, process and output should be identified. • Using a mind-map or brown paper with post-its and a camera • to record the results for later reference is a good way to collate this information. INPUTS PROCESSES OUPUTS
Environmental Aspects and Impacts Depending on the complexity of your business operations, • this process may best be completed at an activity specific level – e.g. unit operations in a chemical production process The scope of the identification should include: • – activities (e.g. transport of product) – processes (e.g. production) – services (e.g. off-site meetings with clients) Consideration of environmental aspects in the use of product • and services (e.g. energy consumption, lifetime, disposal) plus, where known, the environmental aspects arising from sourcing of raw materials, should be identified – this is because the EMS is also required to demonstrate life cycle thinking .
Environmental Aspects and Impacts Example 1 Business Activity Environmental Aspect Environmental Impact • Consultant travel by car • Consumption of fuel • Use of non-renewable (petrol/diesel) resources (fossil fuels) • Atmospheric emissions • Localised air pollution
Example Environmental Aspects Energy Use Oil storage Production and of waste disposal Environmental Aspects Use of Fuel use in natural transport resources Effluent Water use disposal
Classifying Environmental Aspects Environmental aspects should be categorised as follows: • – Normal : environmental aspects are those encountered as part of routine operations. – Abnormal : environmental aspects are from activities not normally encountered as part of day-to-day running of the business e.g. night operations or unscheduled maintenance of broken machinery. – Emergency : environmental aspects are encountered in emergency situations such as equipment failure, extreme weather or fire.
Environmental Aspects and Impacts An initial review of site information and baseline data (e.g. • annual costs and quantities of energy use, water use, waste and raw materials) will help you to prepare a list of environmental aspects for your company.
Identifying compliance obligations Relevant to discuss at this stage because there is a • lot of interaction between environmental aspects and compliance obligations Compliance Obligations (which can still be referred to as legal • and other requirements) are defined as: “legal requirements that an organisation has to comply with and other requirements that an organisation has to or chooses to comply with” Compliance obligations can arise from: • Law and regulations (i.e. mandatory) – Voluntary commitments (e.g. organisation/industry standards) – Contractual relationships – Code of practice and agreements with community groups or NGOs –
Understanding compliance obligations ISO 14001 requires that an organisation determines the • compliance obligations that are related to its environmental aspects Some examples could include: • Environmental Aspects Compliance Obligations Use of f-gases in air conditioning The Fluorinated Greenhouse units Gases Regulations SI 2015/310 Disposal of waste batteries Waste Batteries (Scotland) Regulations SSI 2009/247 Generation of packaging waste Producer Responsibility (from placing packaging on the Obligations (Packaging Waste) UK market) Regulations SI 2007/871
Scoring Environmental Aspects Once all the aspects and compliance obligations have been • identified for your company, you must determine those aspects that have or can have a significant environmental impact (i.e. your significant environmental aspects), using a scoring method. There is no definitive method for determining significance as it • needs to be relevant to the individual business needs but there are a number of methods that could be used depending on the complexity of the company.
Environmental Aspects and Impacts A simple High, Medium and Low ranking regime may be • applied to companies with limited aspects arising from simple and limited activities, processes and services. More complex companies would benefit from a more robust • approach that allocates scores to the aspects based on numeric values ascribed to various categories of scores. Inputs that should be considered include compliance obligations, concerns of interested parties (internal/external), type, scale, frequency, severity, duration, and exposure. Whichever method your business chooses should be • repeatable and should be checked once completed to ensure that the results reflect the actual activities of your business. The aspects deemed significant for your organisation are the ones your EMS will seek to control.
Example Scoring Table Example of environmental significance scoring table: CATEGORY Legislation Other Requirement Likelihood Severity Normal / SCORE Abnormal/ Emergency SPECIAL LEGAL BUSINESS PRIORITY N/A Catastrophic N/A SCORE REQUIREMENT REQUIREMENT environmental APPLIES APPLIES incident 50 25 50 HIGH INDIRECT LEGAL SUPPLY CHAIN 10 10 Normal REQUIREMENT FOR PRIORITY OR HIGH 10 SUPPLY CHAIN IMPORTANCE 10 REQUIREMENT 10 MEDIUM N/A 5 5 5 Abnormal 5 LOW / NIL N/A 1 1 1 Emergency 1
Environmental Aspects and Impacts The environmental aspects need to be regularly reviewed • to establish whether the significance to the business has changed and therefore whether it needs some form of control. A change management process is usually beneficial to consider the • possible consequences of proposed changes that may impact on environmental performance. As and when changes, including planned or new developments, • and new or modified activities, products and services change, the environmental aspects and significance will need to be reviewed.
Exercise: Identifying environmental aspects and impacts in your own organisation
Discuss: In your tables come up with at least three examples in total of each of: For those organisations that do not yet have an EMS • What are your main activities that have an environmental impact? – For those organisations that have an EMS certified to the 2004 • standard: What activities not currently covered by your existing EMS will need to – be covered in order to obtain ISO 14001:2015?
What is new in ISO14001:2015 – Risk- Based Thinking and Life Cycle Thinking
Risk Based Thinking ISO 14001:2015 requires organisations to determine the risks and opportunities related to its: – Context – Interested Parties – Environmental aspects – Compliance obligations Risk : “the effect of uncertainty” Risks and Opportunities : “potential adverse effects (threats) and potential beneficial effects (opportunities)”
Risk Based Thinking Why is risk based thinking required? To give assurance that the EMS can achieve its intended outcomes Enhancement of environmental performance Fulfilment of compliance obligations Achievement of environmental objectives Prevent or reduce undesired effects, including the potential for external environmental conditions to affect the organisation Achieve continual improvement
Risk Based Thinking The risks and opportunities facing an organisation should • be central to the strategic direction and strategic decision making of that company – knowledge of them and an appropriate response to them underpins current and future performance. Identification of business risks and opportunities are key to the • implementation of an effective environmental management system. Identification of business risks and opportunities is typically • completed through management tools such as PESTLE and SWOT although specific tools such as Failure Modes Effects Analysis, Fault Tree Analysis, HAZOP and HAZAM and financial risk models may also be applied depending on the complexity of the organisations activities and processes.
Risk Based Thinking - SWOT A SWOT analysis looks at the: • Strengths – Weaknesses – Opportunities – Threats – posed within the wider context of the organisation. • It is a useful tool, but can be quite limited in the depth that it can • developed so is likely to only be appropriate for smaller SMEs with a limited product or service offering.
Risk Based Thinking - SWOT STRENGTHS WEAKNESSES E.g. Established leader in E.g. Small company with market place limited access to finance for Recognised environmental capital projects credentials SWOT ANALYSIS OPPORTUNITIES THREATS E.g. New supplier of environmentally 'sound' raw E.g. New legislation bans key material that reduces energy raw material requirements
Risk Based Thinking – PESTLE A more detailed approach suitable for larger organisations is • a PESTLE Analysis: Political Economic Environmental Social Legal Technological
Risk Based Thinking – PESTLE Example - Economic AREA ISSUE POTENTIAL POTENTIAL ACTION ACTION(S) to address IMPACT ON RISKS and/or REQ’d (Y/N) risks and opportunities BUSINESS OPPORTUNITIES (incl. effectiveness controls) Economic New POSITIVE Long-term cost Y Negotiate deal with investor Possible to reductions investor for improve asset sustainable future condition and Competitive implement advantage planned maintenance programme
Risk Based Thinking – PESTLE Example - Social AREA ISSUE POTENTIAL POTENTIAL RISKS ACTION ACTION(S) to address IMPACT ON and/or REQ’d risks and opportunities BUSINESS OPPORTUNITIES (Y/N) (incl. effectiveness controls) Economic Key person NEGATIVE Failure to meet Y Review opportunities incapacitated Inefficient / orders in a to document ‘job’ non-compliant compliant knowledge in operations manner procedures Review deputy structure Develop succession plan
Risk Based Thinking – PESTLE Example - Legal AREA ISSUE POTENTIAL IMPACT POTENTIAL RISKS ACTION ACTION(S) to address ON BUSINESS and/or REQ’d (Y/N) risks and opportunities OPPORTUNITIES (incl. effectiveness controls) NEGATIVE - Production closure Y Complete analysis of Unable to meet as non-compliant compliance options Legal Change in requirements with with law Liaise with Enterprise legislation current assets - Major CAPEX Agency for possible required to meet grant support in new requirements process POSITIVE - Long-term cost Y Liaise with Resource Possible to improve reductions Efficient Scotland production - Competitive efficiencies and advantage reduce waste - Key market-place differentiator
Risk Based Thinking The examples provided are just a snapshot of some • simple risks and opportunities When undertaking your SWOT or PESTLE analysis you should • complete a full table, noting that multiple entries per category may be appropriate Accurately identifying risks and opportunities will enable your • organisation to determine which factors will affect and are affected by, its operations, and this can help to determine the scope of the EMS. Risks and opportunities will allow your business to focus on • particular areas for improvement or risk mitigation. Environmental factors that can affect, or be affected by, an • organisation’s products, services, investments and interested parties should be emphasised.
Life Cycle Thinking ISO 14001:2015 requires that: “Within the defined scope of the EMS the organisation shall determine the environmental aspects of its activities, products and services that it can control and those that it can influence , and their associated environmental impacts , considering a lifecycle perspective ” Lifecycle : “consecutive and interlinked stages of a product (or service) system, from raw material acquisition or generation from natural resources to final disposal”
Life Cycle Thinking So what does this actually require? • – It requires careful consideration of the lifecycle stages that can be controlled or influenced (i.e. it doesn’t require that a detailed life cycle assessment is completed) – Therefore, you need to think of environmental aspects at each stage of the ‘lifecycle’ – The intention of this requirement is to require organisations to consider whether they can control or influence an environmental aspect at different stages in its lifecycle. This lifecycle thinking means that a 2015 EMS should be much broader in terms of its environmental management
Life Cycle Thinking
Life Cycle Thinking – Example: Laptop Design • better design leads to reduced energy consumption – during the life of the product (e.g. energy saving mode) Procurement • avoid the use of rare earth metals, these are a supply chain – vulnerability and have high environment impacts at extraction Production • improvement in the manufacturing process can reduce impacts – Transport and Delivery • logistics planning to optimise journeys – Use • providing information to a customer on energy saving – processes End of life treatment and final disposal • provide information to customers on how to return their – product so it can be disassembled and components re-used and recycled
Life Cycle Thinking Key reminders on life cycle thinking: • – The lifecycle stages that are applicable will vary depending on the activity, product or service – The extent of direct control or influence will vary depending on the activity, product or service – Remember you are also a part of other organisation’s lifecycle: • E.g. suppliers (upstream) • E.g. customers (downstream) – This is an opportunity to engage upstream and downstream to improve the environmental performance of your activity, product and service
EMS in practice: two brief case studies
UK Operations of International IT Company Existing EMS certified to ISO14001:2004 • EMS fully integrated into management of the company • Strong leadership and robust management processes • Range of business activities including management of data • centres, delivery of IT related services and products, management of a portfolio of buildings Large UK workforce •
Easy to Implement Leadership Involvement and Accountability the existing EMS was fully integrated into the management • of the company with significant senior management involvement Communication Strategy High levels of engagement with the existing EMS of both staff and • contractors Risk Based Thinking Robust risk management already integrated into business • processes
Hard to Implement Interfaces with Suppliers Procurement was not in the scope of their ISO14001:2004. • The organisation decided to bring it into scope to meet the new requirements. Life cycle thinking was not a consideration for procurement • This required fundamental changes to processes, procedures and • training
Small UK Manufacturer Design and manufacture of products • One UK site • Existing EMS is certified to ISO14001:2004 but is “tick box” • Some senior management involvement • EMS not integrated into business management processes •
Implementation Challenges Leadership involvement and commitment • Re-engineering business processes to incorporate EMS • requirements Particularly challenging for design and procurement processes – Time commitment for system upgrade •
Actions for your organisation
Organisations with an existing EMS If you have an existing ISO 14001 EMS then you should: • – Review the ISO 14001:2015 Standard and understand the key changes between the 2004 and 2015 Standards – Engage with top management and determine when your organisation is going to transition to the 2015 Standard – Set out a transition timeline • Set out milestones for key transition activities • Talk with your certifying body about when they can certify you to the 2015 Standard Note: most certifying bodies are engaging early with clients to advise on the changes to ISO 14001:2015 and how that affects your audit cycle
Organisations with an existing EMS If you have an existing ISO 14001 EMS then you should: • – Determine your resourcing requirements : • Will you need additional training? (e.g. attending a Managing the Transition to ISO 14001:2015 course?) – Undertake a Gap Analysis : • Undertake a systematic and thorough review of the existing EMS and supporting business processes against the requirements of the 2015 Standard – Develop a Gap Analysis Action Plan : • This can be an output of the gap analysis and should outline the programme of actions required to manage the transition to ISO 14001:2015 – Engage with your Certifying body to arrange certification!
Organisations without an EMS If you do not have an EMS then you should: • – Review the ISO 14001:2015 Standard to understand the key requirements of the 2015 Standards – Develop an EMS implementation plan : • This should be a detailed plan that outlines the programme of actions required to establish, implement and maintain an EMS to ISO 14001:2015 – One the EMS has been implemented you should ‘run’ the EMS for at least 3 months to embed it into the organisation and identify/address nonconformities and implement any improvement opportunities – Engage with your Certifying body to arrange certification !
Next steps
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