How can a company develop management systems to address environmental issues? - A Look at HSBC

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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]

 

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[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.

Corporate Responsibility: From Environment to Sustainability

http://www.eoearth.org/article/United_Nations_Conference_on_Environment_and_Development_(UNCED),_Rio_de_Janeiro,_Brazil

1. Identify and discuss the Rio Declaration on Environment and Development.

The Rio Declaration on Environment and Development, sometimes called the Earth Summit, was the culminating document that came out of the The United Nations Conference on Environment and Development that took place at Rio de Janeiro from 3 to 14 June 1992.[1] Consisted of 27 principles intended to guide future sustainable development around the world, the Rio Declaration reaffirms the Declaration of the United Nations Conference on the Human Environment, adopted at Stockholm on 16 June 1972, and seeks to build upon it.[2] Recognizing the integral and interdependent nature of the Earth, our home, the Rio Declaration’s first principle is both the overall statement of intent as well as a powerful statement for the whole of the international community. It states that, “human beings are at the centre of concerns for sustainable development. They are entitled to a healthy and productive life in harmony with nature.”[3]

The remaining 26 principles of the Rio Declaration are:

“Principle 2

States have, in accordance with the Charter of the United Nations and the principles of international law, the sovereign right to exploit their own resources pursuant to their own environmental and developmental policies, and the responsibility to ensure that activities within their jurisdiction or control do not cause damage to the environment of other States or of areas beyond the limits of national jurisdiction.

Principle 3

The right to development must be fulfilled so as to equitably meet developmental and environmental needs of present and future generations.

Principle 4

In order to achieve sustainable development, environmental protection shall constitute an integral part of the development process and cannot be considered in isolation from it.

Principle 5

All States and all people shall cooperate in the essential task of eradicating poverty as an indispensable requirement for sustainable development, in order to decrease the disparities in standards of living and better meet the needs of the majority of the people of the world.

Principle 6

The special situation and needs of developing countries, particularly the least developed and those most environmentally vulnerable, shall be given special priority. International actions in the field of environment and development should also address the interests and needs of all countries.

Principle 7

States shall cooperate in a spirit of global partnership to conserve, protect and restore the health and integrity of the Earth's ecosystem. In view of the different contributions to global environmental degradation, States have common but differentiated responsibilities. The developed countries acknowledge the responsibility that they bear in the international pursuit to sustainable development in view of the pressures their societies place on the global environment and of the technologies and financial resources they command.

Principle 8

To achieve sustainable development and a higher quality of life for all people, States should reduce and eliminate unsustainable patterns of production and consumption and promote appropriate demographic policies.

Principle 9

States should cooperate to strengthen endogenous capacity-building for sustainable development by improving scientific understanding through exchanges of scientific and technological knowledge, and by enhancing the development, adaptation, diffusion and transfer of technologies, including new and innovative technologies.

Principle 10

Environmental issues are best handled with participation of all concerned citizens, at the relevant level. At the national level, each individual shall have appropriate access to information concerning the environment that is held by public authorities, including information on hazardous materials and activities in their communities, and the opportunity to participate in decision-making processes. States shall facilitate and encourage public awareness and participation by making information widely available. Effective access to judicial and administrative proceedings, including redress and remedy, shall be provided.

Principle 11

States shall enact effective environmental legislation. Environmental standards, management objectives and priorities should reflect the environmental and development context to which they apply. Standards applied by some countries may be inappropriate and of unwarranted economic and social cost to other countries, in particular developing countries.

Principle 12

States should cooperate to promote a supportive and open international economic system that would lead to economic growth and sustainable development in all countries, to better address the problems of environmental degradation. Trade policy measures for environmental purposes should not constitute a means of arbitrary or unjustifiable discrimination or a disguised restriction on international trade. Unilateral actions to deal with environmental challenges outside the jurisdiction of the importing country should be avoided. Environmental measures addressing transboundary or global environmental problems should, as far as possible, be based on an international consensus.

Principle 13

States shall develop national law regarding liability and compensation for the victims of pollution and other environmental damage. States shall also cooperate in an expeditious and more determined manner to develop further international law regarding liability and compensation for adverse effects of environmental damage caused by activities within their jurisdiction or control to areas beyond their jurisdiction.

Principle 14

States should effectively cooperate to discourage or prevent the relocation and transfer to other States of any activities and substances that cause severe environmental degradation or are found to be harmful to human health.

Principle 15

In order to protect the environment, the precautionary approach shall be widely applied by States according to their capabilities. Where there are threats of serious or irreversible damage, lack of full scientific certainty shall not be used as a reason for postponing cost-effective measures to prevent environmental degradation.

Principle 16

National authorities should endeavour to promote the internalization of environmental costs and the use of economic instruments, taking into account the approach that the polluter should, in principle, bear the cost of pollution, with due regard to the public interest and without distorting international trade and investment.

Principle 17

Environmental impact assessment, as a national instrument, shall be undertaken for proposed activities that are likely to have a significant adverse impact on the environment and are subject to a decision of a competent national authority.

Principle 18

States shall immediately notify other States of any natural disasters or other emergencies that are likely to produce sudden harmful effects on the environment of those States. Every effort shall be made by the international community to help States so afflicted.

Principle 19

States shall provide prior and timely notification and relevant information to potentially affected States on activities that may have a significant adverse transboundary environmental effect and shall consult with those States at an early stage and in good faith.

Principle 20

Women have a vital role in environmental management and development. Their full participation is therefore essential to achieve sustainable development.

Principle 21

The creativity, ideals and courage of the youth of the world should be mobilized to forge a global partnership in order to achieve sustainable development and ensure a better future for all.

Principle 22

Indigenous people and their communities and other local communities have a vital role in environmental management and development because of their knowledge and traditional practices. States should recognize and duly support their identity, culture and interests and enable their effective participation in the achievement of sustainable development.

Principle 23

The environment and natural resources of people under oppression, domination and occupation shall be protected.

Principle 24

Warfare is inherently destructive of sustainable development. States shall therefore respect international law providing protection for the environment in times of armed conflict and cooperate in its further development, as necessary.

Principle 25

Peace, development and environmental protection are interdependent and indivisible.

Principle 26

States shall resolve all their environmental disputes peacefully and by appropriate means in accordance with the Charter of the United Nations.

Principle 27

States and people shall cooperate in good faith and in a spirit of partnership in the fulfillment of the principles embodied in this Declaration and in the further development of international law in the field of sustainable development.”[4]

According to Deborah Leipziger, “although the Rio Declaration is addressed to nation-states, it introduced key concepts that are echoed in many” of the international tools including the Global Compact. Furthermore, the Rio Declaration defined two key principles – the precautionary principle and the polluter-pays principle – that are key elements of many environmental standards.”[5]

2. Identify and discuss what is meant by the Natural Step.

According to the Natural Step website, the organization is “a not-for-profit organisation dedicated to education, advisory work and research in sustainable development.”[6] Founded in Sweden in 1989 by scientist Karl-Henrik Robèrt the Natural Step has “worked with thousands of corporations, municipalities, academic institutions and not-for-profit organisations that have proven that moving strategically toward sustainability leads to new opportunities, reduced costs, and dramatically reduced ecological and social impacts.”[7] Following a national consensus about “what is in principle needed to sustain the human civilization on earth,”[8]

In a paper that Dr. Robert wrote in 1991 entitled ‘Educating A Nation: The Natural Step’, The Natural Step is described as a “network of experts from various fields who are attempting to find out how much can be accomplished by using scientific consensus as the basis for decision-making in human society. The network includes scientists, economists, teachers, environmental activists, politicians, business leaders, artists, and others who are all contributing to a mutual effort for a future based on respect for natural laws.”[9]

The Natural Step approach to sustainability begins with four simple scientific observations:

1. Matter and energy cannot be destroyed (the 1st Law of Thermodynamics)

2. Matter and energy tend to spread spontaneously (entropy, the 2nd Law of Thermodynamics)

3. Biological and economic value (quality) of matter is in its concentration and structure

4. Net increases in material quality on Earth are generated almost entirely by the sun-driven process of photosynthesis[10]

Putting the two laws of thermodynamics together and applying them to the global environment, the following facts become apparent:

1. All the matter that will ever exist on earth is here now (First Law).
2. Disorder increases in all closed systems and the Earth is a closed system with respect to matter (Second Law). However, it is an open system with respect to energy since it receives energy from the sun.
3. Sunlight is responsible for almost all increases in net material quality on the planet through photosynthesis and solar heating effects. This flow of energy from the sun creates structure and order from the disorder.[11]

Following the four simple scientific observations, The Natural Step developed Four System Conditions of Sustainability In a sustainable society, nature is not subject to systematically increasing:

• concentrations of substances extracted from the earth's crust;
• concentrations of substances produced by society;
• degradation by physical means; and, in that society.
• human needs are met worldwide.[12]

Mr. Robert then worked out a first version of system conditions for sustainability and a planning method that later evolved into and became known as The Natural Step Framework (or the Framework for Strategic Sustainable Development). In general, The Natural Step Framework takes people beyond the arguments of what is and is not possible; or what may be politically left or right wing. Instead, the Framework builds on a “basic understanding of what makes life possible, how our biosphere functions and how we are part of the earth’s natural systems.”[13] Rather than get lost in abstract definitions and causes, The Natural Step “builds on a platform of basic science and is designed to allow true interdisciplinary, cross sector cooperation for concrete and measurable change towards sustainability. After all, if you want to achieve ‘success’, you have to first understand what this means in real terms before you can then take strategic steps to achieve it.”[14]

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[1] http://www.unep.org/Documents.Multilingual/Default.asp?DocumentID=78&ArticleID=1163&l=en[2] Ibid.[3] http://www.unep.org/Documents.Multilingual/Default.asp?DocumentID=78&ArticleID=1163&l=en[4] http://www.unep.org/Documents.Multilingual/Default.asp?DocumentID=78&ArticleID=1163&l=en[5] Leipziger, Deborah. The Corporate Responsibility Code Book. Sheffield: Greenleaf Publishing Limited, 2003. Page 308.[6] http://www.naturalstep.org/en/our-story[7] Ibid.[8] http://www.naturalstep.org/en/our-story[9] http://www.context.org/ICLIB/IC28/Robert.htm[10] http://www.brightworks.net/pages.php?id=naturalstep[11] http://www.thenaturalstep.org/en/our-approachhttp://www.brightworks.net/pages.php?id=naturalstep[12] http://www.brightworks.net/pages.php?id=naturalstep[13] http://www.naturalstep.org/en/our-story[14] Ibid.

Sustainable Development in Nigeria - Water Issues

Since last month’s TPR paper written on IAQ topics our group the Foxtrots met again at the Saxby’s café off main street in downtown Doylestown. This meeting, the first since finding out our group’s focus on water issues in the final presentation, included Philip S. Getty, P.G. who came to speak at our cSBA class in March. Continuing our general discussion on sustainability issues related to Nigeria’s Intercontinental Education Community Center (ICEC2) construction and maintenance, out team met on the morning of April 15th to discuss more specific sustainable options involving water management that are feasible and cost-efficient for the Nigerian site.

The cSBA handbook has this to say about problems related to water. Water, while seemingly abundant “is a scarce resource. Water that can be treated to drinking water standards (potable) are difficult to find, manage, and protect, and treating that water to drinking water quality is energy intensive and expensive.”[1] Using potable water for anything that does not require the highest standards of water quality is wasteful and puts enormous strain on our “public utilities to keep trying to find and treat water resources to keep up with not only population growth, but wasteful practices.”[2] In general using potable water to do things besides “drinking, cooking, bathing and cleaning is wasteful.”[3] While wasteful water uses in house range from bad habits, to poor maintenance, by far the most wasteful use of potable water is for landscape maintenance.[4] Some sources of concern for water consumption include among others: groundwater depletion and salt water intrusion in coastal areas, habitat destruction when dams are used to create reservoirs, etc.
Water use versus water supply along with environmental stewardship and economic growth help define the fundamentals nature of sustainable water management. It is important to remember that a need for healthy, potable drinking water will continue to be of vital importance to the long-term success and growth of humanity around the globe. As the population of our world grows the pressure on water supplies will exponentially increase unless more sustainable measures are implemented. Water demand, water quality and habitat protection issues will only make supplies more expensive and difficult to find[5] in the years and decades ahead. Items to take on actively for promotion of a sustainable water management include: using little to no fertilizers. Developed watersheds often have high levels of phosphorous which are commonly found in surface water.[6] This added phosphorous, often from lawn and garden care promotes algae blooms that then “decompose and deplete oxygen needed by fish and other aquatic life.”[7] Similar to fertilizer pollution is pesticide pollution affecting water sources. Studies show that regular use of “herbicides, fungicides, and insecticides decrease numbers and diversity of beneficial soil life, from earth worms to down to bacteria and fungi. In studies, increasing pesticide and soluble fertilizer use correlated with increasing soil compaction, acidification, and thatch buildup in lawns.”[8] Worse than the effect of pesticides on the environment and habitat, numerous epidemiological studies have found increased risk of cancer and birth defects in children of families using lawn and garden pesticides.[9] As ICEC2 will largely be used as a place for education and learning for youths and adults alike, minimizing or eliminating use of these carcinogens will be important aspect of making the location a sustainable community.
The planned Intercontinental Education Community Center (ICEC2) in Nigeria. Located at about 5° latitude and 9° longitude, the site is located atop a hill that has numerous options for sustainable water use. The meeting with Mr. Getty focused rather extensively on the potential use of cisterns at the ICEC2 site. For the cistern system to be most effective it will be important to have sufficient native vegetation on the property and any location that may be vital for water infiltration that may be accessed by both the cistern and the wells. Native forests return up to “50% of rainfall to sky through evapotranspiration, ET (the evaporation of water through plant life, as opposed to direct evaporation), and infiltrate more than 35% into soil”[10] Along with the benefits to infiltration, such strategies reduce runoff caused by impervious surfaces. Fundamental to the sustainable characteristics of the ICEC2 site will be the rehabilitation of habitat, protection and additions to the native forests and effective water management for the various planned gardens and other plantings on location. Despite the meeting ending without a final decision on whether to use a cistern, the meeting allowed the Foxtrots and Mr. & Mrs. Ukazim insight into the complexity of the issue. The next step entails development of a cost/benefit analysis as well as additional research to determine feasibility. Three important considerations that will need to be addressed before a successful completion of a cost/benefit analysis were identified. One, the ICEC2 site needs to determine what is our design rain? What should the capacity of the system be? Examination of watershed area and annual rain fall on the site will need to be accurately determined. Two, along with the capacity of the entire ‘system,’ an examination at each specific cistern size on site needs to be conducted. What are ICEC2’s water needs on a daily and seasonal basis? Third, what are, or would be the elevation differences from cistern to point of use? An examination and determination needs to be made about the need for pumps and pumping costs. The size and pressure of the pump for the cistern will need to be based on how much head pressure one needs to create a functional system. Additionally it will help determine at what rate the peak demand will be.[11]

Addressing some of the concerns mentioned in the cSBA student notebook, ICEC2 is taking the time and care to evaluate its sustainable options to produce the most favorable solution that impacts the economy of Nigeria, the local community, the environment at large, the needs of the inhabitants and population that comes to the school to learn. To that end ICEC2 wants to spend time and effort up front to mitigate potentially disastrous ramifications down the road. These include making sure there is sufficient groundwater reserves to meet the needs of the ICEC2 community that can be readily replenished to prevent depletion. Such an eventuality would not only impact the environment negatively it would make operations and costs on site rise dramatically. In addition to depletion the need to protect the ground water and cisterns from intrusions and pollutants is essential as it would be costly to repair and clean again to allow the resource usable again. ICEC2 is committed to habitat restoration for many reasons, not only is it the right thing to do from an environmental stewardship point of view but careful consideration of the natural habitat could yield important, perhaps even essential ingredients. For example, ICEC2 is looking into planting bamboo that could be carefully managed to make sure it does not grow too invasively but also so it could be used on site for construction and maintenance as it is a durable, rapidly renewable and relatively cheap alternative to more conventional hardwoods or steel. Along with bamboo large vegetable and fruit gardens are under consideration to help make the site self-sustaining. As mentioned above plantings especially those that are native to the region will increase infiltration of vital water that will make ICEC2 a reality. Small and efficient hydro dams have been considered. While concern for damming exists designs would not include the creation of reservoirs. We are trying to access if funneling water through such small dams could make sufficient enough electricity to justify instillation. If they are cost effective they would be used to direct water during the rainy season when the planned solar panels would be less efficient after the water had passed through the dam it would proceed into a basin to would seek to maximize infiltration into the aquifer thereby remaining useful for the population on ICEC2’s site through the groundwater wells that have already been drilled. This strategy along with other are being considered to make efficient of all sustainable options. Hippocrates is quoted as saying “do no harm, then try to do good.” This is a guiding principle of sustainability and the ICEC2 site. As the planned Intercontinental Education Community Center in Nigeria takes shape the elements of low impact development and sustainability are integral, not only to the important from a cost and environmental point of view, this site needs to be self-sufficient for the project to be completed and maintained at all.

This is an Excerpt only and may not be copied or cited without permission, Please contact me directly to learn more.

[1] National Sustainable Building Advisor Program. Unit 6: water. Student Notebook. Version 1.3. Page 2 of 26. ©2008 NaSBAP.[2] National Sustainable Building Advisor Program. Unit 6: water. Student Notebook. Version 1.3. Page 2 of 26. ©2008 NaSBAP.[3] National Sustainable Building Advisor Program. Unit 6: water. Student Notebook. Version 1.3. Page 2 of 26. ©2008 NaSBAP.[4] National Sustainable Building Advisor Program. Unit 6: water. Student Notebook. Version 1.3. Page 2 of 26. ©2008 NaSBAP.[5] National Sustainable Building Advisor Program. Unit 6: water. Student Notebook. Version 1.3. Page 3 of 26. ©2008 NaSBAP.[6] National Sustainable Building Advisor Program. Unit 6: water. Student Notebook. Version 1.3. Page 3 of 26. ©2008 NaSBAP.[7] National Sustainable Building Advisor Program. Unit 6: water. Student Notebook. Version 1.3. Page 3 of 26. ©2008 NaSBAP.[8] National Sustainable Building Advisor Program. Unit 6: water. Student Notebook. Version 1.3. Page 3 of 26. ©2008 NaSBAP.[9] National Sustainable Building Advisor Program. Unit 6: water. Student Notebook. Version 1.3. Page 3 of 26. ©2008 NaSBAP.[10] National Sustainable Building Advisor Program. Unit 6: water. Student Notebook. Version 1.3. Page 3 of 26. ©2008 NaSBAP.[11] Mr. Getty recommended websites: http://www.oasisdesign.net/water/storage/ http://www.oasisdesign.net/water/storage/ for further research.