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have shown interest in voluntary environmental commitments to eliminate or control negative environmental impacts associated with their activities (1-3). As such, firms shifted from a relatively reactive approach to more proactive environmental management strategies to protect the environment and public health as well as to satisfy international trade requirements. The ISO 14000 series of international standards have been developed to integrate environmental aspects into processes and product standards. This includes, but is not limited to, environmental management systems (ISO 14001), auditing guidelines (ISO 14010), labeling (ISO 14020), performance evaluations (ISO 14031), life cycle assessment (ISO 14040), and product standards (ISO 14060) (4-6). The ISO 14001 standard is considered one of several frameworks that guide a facility to developing an environmental management system (EMS) (4, 7).
Environmental Management System (ISO 14001) Certification in Developing Countries: Challenges and Implementation Strategies1 MAY A. MASSOUD* RABIH FAYAD RABIH KAMLEH MUTASEM EL-FADEL American University of Beirut, Lebanon
SHUTTERSTOCK
The cost associated with ISO 14001 certification has developing countries companies’ lag in environmental management.
The main purpose of an EMS is to systematically control adverse environmental impacts and ensure that established objectives and targets are met. It helps in scrutinizing environmental performance and operations particularly when regularly revised and verified toward continuous improvement (8). The ISO 14001 is a process standard: it articulates the characteristics of the components of a management system. In particular, it requires organizations to formulate an environmental policy, set objectives and targets, develop an implementation plan, monitor and measure the system’s effectiveness, correct problems, and conduct reviews aimed at improving the system (8, 9). Figure 1 depicts the inter-relationship of the different stages of implementing an ISO 14001 EMS.
Globally, since the United Nations (UN) conference in Rio de Janeiro in 1992, a progressively increasing number of firms 1 Editor’s Note: This manuscript was submitted prior to ES&T changing its manuscript parameters for Viewpoints. For the new format, please read the details at http://pubs.acs.org/doi/abs/10.1021/ es903081n.
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FIGURE 1. Implementation stages of ISO 14001 EMS (4, 9, 10). 10.1021/es902714u
2010 American Chemical Society
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Globalization and a growing awareness of environmental issues are pressuring firms to adhere to international environmental standards and respond to customers and market demand particularly with the increased interest of consumers in environmental implications of products and services. For instance, since the early 1990s, U.S.-based surveys indicated that 94% of the population would make an effort to buy environmentally friendly products and nearly 90% expressed willingness to pay more for such products (11). Examining the environmental performance of suppliers has become a main factor in decision making. In Europe and Asia most national procurement policies require suppliers to be registered with ISO 14001 (12) with many certified firms refusing to do business with noncertified counterparts (13). In fact, the number of firms that have voluntarily adopted ISO 14001 is steadily increasing and spreading: such firms in turn have also encouraged their suppliers to be ISO 14001 certified as a prerequisite in selecting them. Several countries have even declared ISO 14001 to be a national standard (14). Evidently, market forces that drive competition and cooperation could (increasingly) play an appreciable role in an organization’s decision to implement environmental protection measures (15). Accordingly, it is anticipated that registration with ISO 14001 will become the norm and it will be perceived by firms as a necessity to gain entry into the global market (14, 16, 17). Many multinational companies are adopting an EMS in response to customer demand of greater environmental credibility. Meanwhile, small to medium-size enterprises (SMEs) in particular may face serious constraints in setting up and maintaining an EMS although they have a significant cumulative impact on the environment. In this context, developing countries might be forced to adopt ISO 14001 if they wish to maintain a viable relationship with their primary trading partners. For instance, the Egyptian Ministry of Trade and Industry encourages firms to implement ISO 14001 by paying 85% of the consultancy and certification cost; more than 200 firms have benefited from this ISO 14001 certification project (18). Nonetheless, adoption of the standard in developing countries has been slow as compared to that in industrialized countries. Globally, as of 2006, there are 129,199 ISO 14001 certifications and registrations. European and Japanese firms have a relatively high number of certified firms because of their large international export focus (19). Firms from developing countries and transitional economies of Central and Eastern Europe account for an insignificant proportion with Central and South America, Africa, and the Middle East jointly having less than 3% of ISO 14001 certified enterprises worldwide (20). It is therefore timely to assess the challenges of implementing ISO 14001 EMS in developing countries and propose potential strategies to enhance implementation.
Challenges of Implementing ISO 14001 in Developing Countries Lack of appropriate infrastructure, unsound policies, and ineffective environmental regulations as well as financial and human resource constraints are the major challenges facing developing countries in implementing ISO 14001 EMS. In the absence of adequate infrastructure (i.e., sewer networks, power supply, wastewater treatment plants, and waste management facilities) it becomes difficult, if not impossible, to comply with or enforce environmental regulations. Estimates of the World Health Organization (WHO) and the Water Supply and Sanitation Collaborative Council indicate that 25% of developing country urban dwellers lack access to sanitation services; the number reaches up to 82% for rural populations of developing countries (21). Power shortage is a problem in many developing countries, particularly African countries and most regions of India (22). Industries in developing countries may be disadvantaged because compliance may require massive investments
beyond available resources and capabilities. Hence, in addition to the high cost associated with implementing and maintaining an EMS, the production process alterations and technological investments (with components not available locally) necessary to overcome national infrastructure deficiencies exacerbate the problem. For instance, in a developed country such as Canada, companies spend, on average, ∼2% of total expenditures on obtaining and maintaining ISO 14001 (23). While the cost is generally less significant for larger firms than for smaller ones, most firms in developing countries are SMEs and the cost of implementing and certifying an EMS requires relatively more human and financial resources than expected (24). Environmental regulations and policies in developing countries tend to be outdated, deliberately general and vague, and constrained by inadequate coordination among authorities. Responsibilities are interrelated or overlapping in such a way that it is difficult to discern a clear authoritative system linking decrees to implementing agencies, and to verify that the assigned agency has the resources, or even intent, to implement a decree. As a result, industries do not commit themselves to compliance with national regulations. National laws and the institutional framework for executing and implementing these laws may vary in different countries. For instance, the 1965 Factories Act in Bangladesh was set before industrial pollution became a serious concern. The recent legislation which deals with environmental issues is the Bangladesh Environmental Conservation Act of 1995 and assigns very few environmental obligations related to industries (25). Even when environmental regulations are well drafted and jurisdictional mandates are clear, implementation and enforcement often remain weak or absent when requirements target economically important activitiessparticularly those owned and operated by the government. This may be a result of staffing constraints, lack of proper training, low levels of fines because the legislation has not been regularly updated, and corruption. For instance, enforcement of environmental laws and regulations in Central American countries is ineffective: this may be attributed mainly to the lack of political will, inefficient legal frameworks, and lack of financial and human resources. Moreover, the institutions responsible to ensure environmental compliance are underfunded, and have unclear and contradictory mandates and objectives (26). Many developing countries lack the institutional capacity, expertise and technical skills to assess environmental problems and/or to recommend alternative sustainable techniques to unsound practices. Moreover, due to the lack of local expertise, industries in developing countries may be compelled to seek out-of-country assistance in establishing and implementing an EMS and to conduct audits and training. Thus, the overall cost of certification will be much higher as compared to industries in developed countries where all the required infrastructure and technological knowhow exist domestically. In addition, environmental awareness and social responsibility are lacking at various levels (private or public, community or individual) resulting in the absence of pressure on SMEs to adopt an EMS. Furthermore, ISO 14001 certification might be less relevant to customers than quality standards such as ISO 9001 or ISO 22000 as they are not always interested, aware, or directly affected by the environmental impacts of industries.
Strategies to Enhance Implementation While there are many impediments and challenges toward the implementation of ISO 14001 EMS, these can be overcome by suitable planning and policy execution; however, not easily or promptly. The lack of appropriate infrastructure is a major problem that cannot be solved through government/public management plans alone. Most public enterprises in deVOL. 44, NO. 6, 2010 / ENVIRONMENTAL SCIENCE & TECHNOLOGY
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veloping countries are wasteful in their use of capital and labor, leading to inefficient performance or even failure to meet the ends. Moreover, consumers are often undercharged for the services rendered which puts a drain on the government. The accumulated public sector deficits and the weak performance of many public services promote the involvement of the private sector in the delivery and financing of infrastructure services (27). Yet the success of the private sector involvement depends on the ability of the government to establish a good monitoring and regulatory framework whereby the government provides assurance that privately financed projects conform to existing policies. This situation results in significant inertia against effective ISO 14001 implementation. In the interim, governments in developing countries can promote the use of imported pollution control equipment through reductions of and exemptions from tariffs. To be effective and avoid misapplication, such pollution-control equipment should match the technical requirements and the institutional capabilities of the country that has to implement their use. Subsidies that are selective and aimed at reducing waste such as energy- and water-saving devices and fuel substitution should be encouraged rather than endof-pipe technologies. However, most developing countries are facing serious financial constraints and it might not be easy for them to provide subsidies. Increasing user fees such as water tariffs and effluent charges may provide an incentive to adopt water-saving technologies to reduce consumption and (thus) wastewater production. Moreover, setting fines at high levels may deter violators: developing countries typically set fines and then do not adjust them for inflation. Combining command-and-control and economic instruments may prove useful in developing countries as compliance with regulations is coupled with economic returns. The experience of (developing) countries in promoting financial instruments for pollution control is progressing (28). In Indonesia tariffs are reduced on imported wastewater treatment equipment. In South Korea, low-interest loans are provided for purchasing energy-saving equipment. China encourages the use of imported high-technology goods, including pollution control equipment, through reductions and exemptions from tariffs (28). It is very crucial to assess the characteristics of each problem and locality prior to deciding on economic instruments. Considering the lack of resources (financial and local expertise) and the weak institutional capacity of developing countries, important criteria to assess models prior to adopting developed (industrialized) countries’ versions are cost effectiveness, flexibility, and administrative feasibility. For example, industries may be asked to adopt pollution control measures over time in phases. Furthermore, developed countries should strengthen developing countries’ capabilities to manage environmental problems by providing technical assistance. Funding initiatives in cooperation with microfinance institutions and international organizations constitute the foundation toward well-tailored and phased development in line with national socio-economic objectives. The introduction of a national support system or industry advisory groups and the establishment of national institutes to guarantee loans would assist industries in acquiring international certifications and enable project financing. For example: the Japanese government subsidized some of the costs of adopting ISO 14001 (29); Austria established a government program to assist SMEs in environmental certification, with grants of up to $50,000 (USD) to pay for environmental consultants (30). The successful implementation of economic instruments cannot be achieved without pre-existing policies and regulations as well as effective administrative, monitoring, and 1886
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enforcement capability. Evidently, there is a need to review, consolidate, and update the fragmented and outdated environmental regulations. These then need to be integrated within a well-articulated environmental policy framework suited to current demands which takes potential environmental impacts into consideration. Moreover, it is important that environmental policies are included with development planning and regarded as a part of the overall framework of economic and social planning. Strengthening human and institutional capacity in developing countries through a combination of training, technical assistance, and public awareness programs is an essential initial step toward realizing effective and prosperous environmental regulations. Initially a government’s strategy needs to be based on assisting industries and helping them interpret the standard, write documentation, and conduct audits. Considering that many industries lack the knowledge of pollution prevention and control technologies and risk assessment, specialist assistance to assess environmentally relevant technical issues of the industries’ operations is crucial. Additionally, educational campaigns targeting the user and promulgating the impacts of environmental problems, and the necessity for conservation, should be established. Many organizations have often implemented an EMS in parallel or sequentially with a quality management system (e.g., ISO 9001) to reduce duplication and wasting resources with no reported difficulties (31, 32). The success of an EMS depends on the cooperation of the management and workforce and commitment at all company levels (33). Multidisciplinary committees to exchange information related to environmental management on a regular basis (34) and cross-functional teams with delegates from various areas such as quality, environmental, engineering, manufacturing, sales, marketing, and public relations constitute a promising starting point. In developing countries, environmental issues do not always command a high priority due to competing priorities such as poverty alleviation, rapid economic development, and resolution of internal and external conflicts. Neither environmental policies nor environmental education can succeed when people lack viable economic alternatives. Political willingness is a major requirement to allocate resources to environmental improvements and to prioritize environmental concerns in a development agenda. Environmental protection should not be viewed in isolation and needs to be associated with development and economic growth. In conclusion, we note that considering that environmental performance or emission levels are not stipulated in the ISO 14001 EMS, improved environmental performance is linked to national regulatory requirements. Clearly, implementing ISO 14001 in a country that lacks sufficient infrastructure and has weak institutional capacity and poorly enforced environmental laws will not guarantee environmental improvement. Although ISO 14001 EMS alone cannot ensure environmental protection and sustainable development, it (at least) integrates environmental considerations into industrial activities. Helping developing countries to implement this standard can provide the traction for improved global environmental protection. Dr. May A. Massoud works in the Department of Environmental Health, Faculty of Health Sciences, American University of Beirut. Mr. Rabih Fayad works in the Department of Civil and Environmental Engineering, Faculty of Engineering and Architecture, American University of Beirut. Dr. Rabih Kamleh is in the Department of Environmental Health, Faculty of Health Sciences, American University of Beirut. Dr. Mutasem El-Fadel, is also in the Department of Civil and Environmental Engineering, Faculty of Engineering and Architecture, American University of Beirut. Please address correspondence regarding this article to
[email protected].
Acknowledgments Special thanks are extended to the American University of Beirut Research Board for funding this research project.
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