And How It Can Help You, as an Importer

A Snapshot of Manufacturing and the Environment

Manufacturing industry waste is threatening air, soil, and water quality. Residents in immediate vicinities of factories are impacted by manufacturing waste (e.g. shortened expected life span).

Even those on different continents feel its effects.

Rank Country Pollution Index

1 Afghanistan 101.27

2 Ghana 97.85

3 Lebanon 94.88

4 Bangladesh 93.06

5 Egypt 92.84

6 Mongolia 92.67

7 Myanmar 89.74

8 Vietnam 88.41

9 China 88.08

10 Peru 87.12

Countries Ranked by Pollution Index, Mid-Year 2016

The Impact of the Environment on Importers

As the world’s environmental

condition declines, more retailers

and distributors are focusing on

holding themselves and their

business partners responsible for

limiting their environmental impact.

The Impact of the Environment on Importers

But what if you deal with different

suppliers that have different

environmental standards and

initiatives? And how can you make

sure they are actually compliant?

The Answer: An Environmental Management System

EMS

plan

act check

do

What is an Environmental Management System?

An organization uses an

Environmental Management

System (EMS) to help achieve its

environmental goals by actively and

consistently reviewing, evaluating,

and improving its environmental

performance.

NOTE: The organization must set

its own environmental objectives

and targets; the EMS acts as asystematic review.

What are the Benefits of Doing Business with a Supplier with an EMS?

Many retailers and importers

insist on having an EMS because asupplier that does not adhere to

environmental standards means

unwanted risks.

What are the Benefits of Doing Business with a Supplier with an EMS?

Enhance supplier efficiency and compliance

Improve image with public, employees, and investors

Create new customer and market opportunities

What do Studies on the Benefits of an EMS Say?

According to a 5-year study

conducted by the University of

North Carolina, an EMS can bebeneficial to the environmental

performances of most facilities.

Of the 83 facilities that participated in the

study, 86% said they benefitted from

developing and implementing an EMS.

86%

14%

Survey Results on the Benefits of EMS

Benefitted from EMS Otherwise

What do Studies on the Benefits of an EMS Say?

The Environmental Agency in

England concluded from its own

study that having an EMS isassociated with increased

operational performance.

The average Operator Performance

Appraisal (OPA) score for facilities

without an EMS was 3.4167, while the

average OPA score for companies withISO 14001-certified EMS was 3.6833.

3,2

3,4

3,6

3,8

Average OPA Score

Average OPA Score vs. EMS

No EMS EMS

These are the Possible Consequences of Doing Business with a Supplier with NO EMS:

Supplier inefficiency and non-compliance

Business and legal risks

Increased costs

Damaged business image

Lost business opportunities

If Your Supplier does NOT have an EMS

Some countries have environmental

regulations (e.g. a cap on emissions

or prohibition of certain waste

removal methods). If they are

violated, both you and your supplier

could face fines and court cases,

forced factory shutdowns, and loss

of business with retailers.

If your supplier does NOT have

an EMS, encourage them toestablish one.

The Next Step

If your supplier does have an EMS,you should conduct an

environmental audit to look at

their goals and what actions have

been implemented to improve

environmental performance.

The Next Step

Now that you've decided to conduct

an environmental audit, what’s

next?

Determining the standards to base

your evaluation.

NOTE: ISO 14001 standards are

commonly used for this audit.

What does an ISO 14001 Audit Entail?

An audit based on ISO 14001 standards is commonly used to evaluate an EMS. The audit considers:

Supplier organization and

environmental policy

Supplier EMS’s environmental

aspects

Supplier legal requirements and

documentation

Supplier environmental

objectives, targets, and programs

Supplier operations and management

The Structure of An EMS Under ISO 14001

Management Review

Policy

Planning

Implementation Checking and Corrective

Action

In Short…

An EMS saves you and your supplier from major headaches and

many unwanted costs. Conducting

an environmental audit based on

ISO 14001 standards will make

sure your EMS is efficiently and

effectively improving environmental performance.

Sources

• http://www.iso.org/iso/pub100329.pdf

• https://www.epa.gov/ems/learn-about-environmental-management-systems#what-is-an-EMS

• https://www.epa.gov/ems/learn-about-environmental-management-systems#costs

• https://www.linkedin.com/pulse/environmental-impact-manufacturing-from-industrial-between-robinson

• http://www.unep.fr/shared/publications/pdf/DTIx1262xPA-PriorityProductsAndMaterials_Report.pdf

• http://www.cfr.org/china/chinas-environmental-crisis/p12608

• http://www.slideshare.net/hecrod/environmental-management-systems-iso-14001

• http://www.nytimes.com/2013/03/30/world/asia/cost-of-environmental-degradation-in-china-is-growing.html?_r=1

• http://www.pnas.org/content/111/5/1736.abstract

• http://www.numbeo.com/pollution/rankings_by_country.jsp

• http://www.slideshare.net/hecrod/environmental-management-systems-iso-14001

• http://www.slideshare.net/technosyscon/iso-14001-environmental-management-system

• https://www.eurekalert.org/pub_releases/2003-03/uonc-sce030603.php

• https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/290343/sp6-017-2-tr-e-e.pdf