Introduction
The United States Environmental Protection Agency (EPA) defines an Environmental Management System (EMS) as “a set of processes and practices that enable an organization to reduce its environmental impacts and increase its operating efficiency.”[i] Indeed, managing environmental impact as well as demonstrating a sense of eco-responsibility are becoming increasingly more important business issues around the world. A way of effectively showing a company’s commitment to environmental stewardship is to set up and manage an EMS. Performing and enforcing an effective EMS can significantly help eco-conscience consumers identify your company, and ultimately improve the bottom line. Additionally, planning for a successful environmental management system can help your company discover cheaper and more efficient ways to carry out your business activities.
Some of the key elements of an EMS are:
- Policy Statement - a statement of the organization’s commitment to the environment
- Identification of Significant Environmental Impacts - environmental attributes of products, activities and services and their effects on the environment
- Development of Objectives and Targets - environmental goals for the organization
- Implementation - plans to meet objectives and targets
- Training - ensure that employees are aware and capable of their environmental responsibilities
- Management Review[ii]
Case Study: HSBC
[iii]
A global banking and financial services company, HSBC, (as of 2011) is the second-largest banking and financial services group and second-largest public company in the world.[iv] While perhaps not the typical candidate for prominent EMS and Corporate Social Responsibility (CSR), HSBC has made significant strides in recent years to make banking greener.
“On May 30, 2007, HSBC announced a five-year, $100 million program to help reduce the impacts of climate change on the world's rivers, forests and cities. This ground-breaking initiative partners HSBC with four world-class environmental organizations—Earthwatch Institute, World Wildlife Fund (WWF), Smithsonian Tropical Research Institute (STRI) and The Climate Group—to inspire global action by individuals, businesses and governments worldwide. For each of our partners, HSBC's contribution represents the largest ever single corporate donation.”[v]
Furthermore, HSBC has been a “climate-neutral company globally since November 2005.”[vi] While still a bank and a multinational corporation, HSBC, seems to have done something others in its industry can only dream about. Given the focus on environmental management from HSBC, it is perhaps less surprising that HSBC has come up with a 10 step framework on adding an environmental management system to its website for others to design and implement their own EMS. The 10 step frame work chapter headings are presented below:
1 Understand what an ems is
2 How an ems can benefit your business
3 Understand the different types of ems
4 Working with external organizations
5 Review your business processes
6 Comply with environmental regulations
7 Plan your ems
8 Put your ems into action
9 Review and improve your ems
10 Integrate your ems into day-to-day processes[vii]
Conclusion
The world is changing. And while it may be surprising to some that the future may well see significantly more attention paid for environmental issues, CSR, and a company’s overall sustainability, for others, including some who have long dismisses such concerns, this future is inevitable. According to Deborah Leipziger, “we are in an age of accountability, where society holds companies and governments increasingly accountable for their actions. Hence one of the key challenges within the field of CR [Corporate Responsibility] relates to the issue of credibility and transparency.”[viii]
[i] http://www.epa.gov/ems/[ii] http://www.p2pays.org/iso/emsisofaq.asp#faq1[iii] Ibid.[iv] http://www.forbes.com/companies/hsbc-holdings/[v] http://www.hsbcusa.com/corporateresponsibility/environment.html[vi] Ibid.http://www.2009.annualreview.hsbc.com/annualreview/downloads/annual_review_2009.pdf[vii] http://www.knowledge.hsbc.co.uk/green+business/introduce+an+environmental+management+system[viii] Leipziger, Deborah. The Corporate Responsibility Code Book. Sheffield: Greenleaf Publishing Limited, 2003. Page 535.
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