Implementation
of Environmental Management system
(EMS-ISO
14001) in Pakistan: Constraints and Impacts
Table of Contents
Title.............................................................................................................................................................1
Declaration..................................................................................................................................................2
Abstract.......................................................................................................................................................3
Acknowledgement......................................................................................................................................4
Dedication...................................................................................................................................................5
Table of
Contents.......................................................................................................................................6
List of
Tables...............................................................................................................................................8
List of
Figures..............................................................................................................................................9
1- Introduction...........................................................................................10
1.1
Overview......................................................................................................................................10
What is environmental management System (EMS)? .............................................................11
Environmental Management System in Pakistan.........................................................................15
Objective of the Research............................................................................................................18
Research Approach......................................................................................................................19
Structure of Research Report.......................................................................................................20
Summary.......................................................................................................................................21
2LiteratureReview.................................................................................22
Introduction..................................................................................................................................22
Background..................................................................................................................................22
2.1
Environmental management and Sustainable development........................................................26
2.2
Implementation of EMS: Constraints and Barriers.......................................................................31
2.3
Benefits of EMS.............................................................................................................................40
2.4
Summary.......................................................................................................................................42
3- Research
Method...................................................................................43
3.1
Introduction......................................................................................................................43
3.2
Research Strategy..............................................................................................................43
3.3
Research Instrument and
design.......................................................................................45
3.4
Data Collection and Analysis.............................................................................................46
3.5
Limitation of
Research......................................................................................................47
3.6
Summary..........................................................................................................................47
4- Findings
and
Discussion.........................................................................48
4.1 Brief about the
respondents.............................................................................................49
4.2 Response
Rate...................................................................................................................50
4.3 Discussion.........................................................................................................................52
4.3.1 Manufacturing
Sector: Constraints in Implementation....................................................52
4.3.2 Impacts in terms of Perceived Benefits and
Trends.........................................................54
4.4 Consultants
Response.......................................................................................................57
4.4.1 Impacts in terms of Perceived Benefits and
Trends.........................................................59
4.5 Overall
Response..............................................................................................................61
4.5.1 Impacts in terms of Perceived Benefits and
Trends.........................................................63 4.6 Summary..........................................................................................................................65
5-
Conclusion and Recommendations........................................................66
5.1
Introduction................................................................................................................66
5.2
Objectives: findings and
conclusion...........................................................................66
5.3
Conclusion..................................................................................................................72
References
&
Bibliography.........................................................................73
Appendix A:
Questionnaire
Sample............................................................77
List of Tables
Table
1.3: Function of Pakistan Environmental Protection Agency (Pak-EPA)..........................................17
Table
2.2.1.: ISO 14000 series overview...................................................................................................24
Table
2.3.1: The relation between ICC’s Business Charter for Sustainable Development
and the
Environmental management systems
according to the ISO 14000 series............................27
Table 2.4: Barriers,
Challenges and demand for Govt. Support................................................................37
Table 2.5: Benefits and Incentives of EMS................................................................................................41
Table 4.1.1: General Breakdown of respondents by sector
and nature of business...............................48
Table
4.3.1: Ranking of constraints in
descending order in terms of percentage
By manufacturers................................................................................................................54
Table
4.4.1: Ranking of the constraints in descending
order in terms of percentage
By consultants.....................................................................................................................59
Table
4.5.1: Ranking of the constraints in descending order in terms of combined
percentage.............63
List of Figures
Figure 1.2.1: Environmental Management system
Model ISO 14001 and 14004....................................13
Figure 1.2.2 - Breakdown of
EMS..............................................................................................................14
Figure: 1.3.1 Model of Environmental
Organization in
Pakistan..............................................................16
Figure
2.2.1: Driving force for environmental management /
Change.....................................................22
Figure
2.3.1 Path to Eco-Efficiency through ISO
14000.............................................................................29
Figure 4.1.1: Total number of ISO 14001 certifications achieved
per year..............................................49
Figure 4.2.1 Breakdown of individual response rate by
sector out of total questionnaire sent..........50
Figure 4.2.2: Breakdown of total response received by both
sectors overall.........................................51
Figure 4.3.1: Breakdown of constraints in implementation of
EMS by manufacturing sector................53
Figure 4.3.2: Breakdown of perceived benefits and trends by
manufacturing sector.............................55
Figure 4.3.3: Breakdown of perceived benefits in ‘Yes’ by
manufacturing sector...................................56
Figure 4.4.1: Breakdown of constraint
in implementation of EMS by consultants...................................58
Figure 4.4.2: Breakdown of perceived
benefits and trends by consultants..............................................60
Figure 4.5.1: Breakdown of
constraints in implementation of EMS by both sectors
(Manufacturers
&consultants).................................................................................................................61
Figure 4.5.2: Breakdown of perceived
benefits and trends: overall response.........................................64
Figure
5.2.4: Framework for successful implementation of environmental management
system..........71
1-Introduction
1.1Overview
Over the last two decades, concern about the
environmental issues has grown throughout the globe
rapidly. Global warming, climate change biodiversity and other environmental
problems have drawn the attention of environmental experts to plan, improve and
implement environmental management system (EMS) for green and sustainable
future.
In addition, concerns about environmental
management have urged industrial sector to modify existing one, plan &
improve and implement environmental management systems regardless size and
nature of the organizations. The requirement of adoption and maintenance of EMS
has become the demand of international business from both parties (suppliers
and customers) in order to get competitive benefits and to prove organizations
as environment friendly.
The aim of this research project is
to investigate the constraints and barriers in implementation of environmental
management system (ISO 14001) in manufacturing industry of Pakistan. ISO 14001 as EMS will be considered the main
area under discussion .Furthermore, this piece of work investigates its
ultimate impacts on environment in manufacturing and production industry with
other social and corporate benefits. In last two decades with the evolution of
concept that ‘Be Green and Sustainable Development’ demand of Environmental
Management Systems (EMS) adoption and implementation has grown throughout the
world. EMS is a specific set of programmes, policies and techniques which
provides footing stone to any organization to demonstrate responsibly to save
the environment. Furthermore, EMS is helpful to handle the environmental
impacts of economic and industrial activities and to enhance the environmental
performance of the organizations. These impacts may result in air pollution,
water pollution, carbon emission, and many more; ultimately result in
environmental degradation. The role of environmental management in any industry
is important to gain competitive benefits. Adoption of EMS provides a
foundation to get reorganization of the products all over the world for an
effective business management and development.
On the other hand, many constraints and barriers are in path to adopt
and implement EMS. These constraints may include financial constraints, lack of
information, lack of awareness, poor legislations, lack of incentives to
implement, poor government policies, legal implications and many more, impede
the implementation process (Quazi 1999). These hurdles slow down the
environmental performance improvement process, which hinders the development
and growth of any company. Some authors argue that continues industrialization
in developing countries without taking into consideration the environmental
aspects, means the long term hunger, poverty and environmental degradation.
Most organizations (include large
Pakistani Companies) across the world have realized that in a rapidly changing
business environment, it is difficult to survive without proper implementation
of EMS. Realizing such requirements of organizations, companies would have to
design and develop such policies, which offer an integrated solution to all the
functional processes in an organization and their problems.
The scope of author’s project lies
around identification of constraints and barriers in implementation of EMS in
industrial sector of Pakistan especially regarding manufacturing organization.
It will also provide a path to investigate the impacts of those constrains on environment
and progress of the company. Finally, the project will prove a base for further
work to overcome and reduce these constraints.
1.2 What is environmental management System (EMS)?
With the
evolution of the concept that “Be Green and Sustainable Development” awareness
and concern at international level about environmental management has risen.
From last two decades pressure on business organization and manufacturers has
been raised to adopt sustainable methods for design and development. Moreover, conservation
of the natural resources, optimum utilization of the resources, and sustainable
development of the processes with minimum waste or zero dispose off is the
focus. However, the implementation and adoption of environmental management
system is a big challenge for developing countries. Developing countries are
lacking behind to demonstrate environmental friendly which is a priority of the
developed countries (Adams 1990, p114).
This
report gives idea about the implementation of the environmental management
system in Pakistan and it identify the constraints and barriers to implement
EMS and its impacts on environment. Though, the first world countries have
developed and still in developing phase to modify techniques and tools to cope with the global
warming and environmental issues which
has become the focus of globe. On the other hand less developed
countries/ developing countries are facing many problems regarding
implementation of environmental management system like financial constraints,
lack of information, poor public sector policies, and lack of managerial
commitment to implement the EMS (Adams p 114-15)
First,
it is necessary to have a look about environmental management system
development and its functions because good comprehension of the EMS leads to
better understanding of the issue.
According
to Marcus et al (1997) EMS, ISO 14001 has been described as a global passport
for international trade. In addition to that, Quazi (1999) states that “An
environmental management system (EMS) is described a well organized and planned
technique to deal with regulatory aspects and customer concerns relevant to
environmental issues”. Furthermore, Sheldon (1997 p19) describes that, in 1992
on the eve of United Nation Conference on Environment and Development (UNCED;
The Earth Summit) in Rio de Janeiro (Brazil), the Business Council for
Sustainable development (BCSD), decided to develop an international
environmental management system for the improvement of the environmental
performance of the organizations with least impacts on environment, of their
economical activities.
Before that, Strategic Advisory Group on
Environment (SAGE) in 1991, proposed suggestions and highlighted area for
development of environmental standards, for the benefit of the business
organizations. In 1993, International Organization for Standardization (ISO)
formed new technical committee ISO/ TC207 ‘Environmental Management’ to
formulate the standards suggested by SAGE.
Under
the supervision of six subcommittees and one working group from different
countries were, responsible to carry out work on the different areas of
environmental management. The ISO 14000 family standards have been developed to
support companies in any country to improve their environmental performance. In
1996, the ISO 14000 family standards (14001, 14004 14010) were published as
formal official document.
As a
formal official document of EMS (ISO 14001), it requires a specific requirement
for a company to maintain for third party registration. It comprises of following
five key elements
1- Development
of Environmental policy
2- Planning
3- Implementation
and operation
4- Checking
and corrective action; and
5- Review
and improvement( Management Review)
Source:
Adopted from Sasseville et, al (1997), p 66.
These main elements are further labelled as.
Figure 1.2.1: Environmental Management system Model ISO 14001 and
14004
 |
|||
 |
|||
Source: Adopted from Sheldon C. (1997), p.24
EMS is a
part of sustainable development and it enables the company to improve their
environmental performance. The ISO series objective is to provide strategic
tools and techniques for developing comprehensive policies to improve the
manufacturing process and to make environmental performance of the
organizations better and socio-environmental friendly. EMS adoption and
implementation and the concept of green innovation and adoption of cleaner
technology are interlinked and now have become more vibrant (Christie 1995).
ISO
14001 and ISO 14004 are interlinked because ISO 14004 provides basic
information and interpretation on EMS development & planning and provides
examples for further explanation.
Sasseville
et al (1997:p.67) states an example,
how they fit together. “The Principle 2 of ISO 14001 on planning, the
specification for “Legal and Other Requirements” is explained as follows: “The organization shall establish and
maintain a procedure to identify and have access to legal and other
requirements to which the organization subscribes, that are applicable to the
environmental aspects of its activities, products or services (ISO 14001 .2,
Section 4.3.2)”.
Quazi
(1999:p.304) represents the breakdown of the ISO 14001 series.
Figure 1.2.2 - Breakdown of EMS
ISO 14001
|
|
Source:
Adopted from Quazi (1999) p.304
It is
argue that five pillars are considered as a driving force for implementation of
EMS and sustainable development such as government policies and regulations,
commercial and economic considerations, corporate image, code of conduct and
finally, the growing pressure from financial/investment and community. World
Business Council for Sustainable Development (WBCSD) for International Chamber
of Commerce (ICC) points that for sustainable development formulation of
international environmental management system is needed.
ISO 14000
presents a new techniques and tools to achieve the better environmental
performance which results in sustainable development and green future. EMS
shifts the attention towards making producing responsible for polluting
environment and inspiring organizations for responsible behaviours. The ISO
14001 EMS is significant not only for organization but also for government,
citizens and consumers at large and small level. International business
community played a vital role for the development of ISO standards and EMS is
also in conformance with already developed quality management system, ISO 9000.
In next section and overview of environmental management system in Pakistan has
been described.
1.3
Environmental Management
System in Pakistan
Pakistan is strategic developing
country situated in south Asia with 176 million (2009 est.) populations, about
70 % of them belongs to agricultural sector. Like many other developing
countries, Pakistan is also suffering from environmental problems. Over last
two decades, growing awareness about environmental issues and strict
environmental policies and regulations at international level proved as a
hurdle in promoting business in Pakistan. Recent recession as well hit hard the
business and export of different products at international level.
According to United nation’s report (2000 p8),
until 1980, development policy of Pakistan had no concern with environmental
issues. Pakistan Environmental Protection Ordinance (PEPO) of 1983 was
considered as a first step towards handling environmental issues but still it
was inadequate to implement in full.
Later on, PEPO 1983 was replaced with Pakistan
Environment Protection Act (PEPA) 1997 which took key environmental issues into
consideration. Pakistan’s environmental policy is based on participatory
approach and is governed by Pakistan environmental protection council (PEPC)
and monitored and implemented by Pakistan Environmental Protection Agency
(PEPA) under the supervision of ministry of environment. Pakistan Environmental
Protection agency (Pak- EPA) is the main plate form for planning, implementing
and monitoring of environmental aspects which works under the supervision of
Pakistan Environmental Protection Council. Pak- EPA is not only responsible for
implementation of EPA acts 1997 but also accounts for handling public
complaints and further investigation in environmental related fields (MOEN –Pak
2010).
In 1992, after Earth
Summit in Reo Rio de Janeiro (Brazil), Pakistan adopted National Conservation
Strategy (NCS) after sound consultation with media, NGOs, educational sector
and with environmental experts which covers natural resources, environmental
protection and assessment of environmental aspects.
An overall general model
for organization of environmental management in Pakistan has been labelled as
under.
Figure: 1.3.1 Model of Environmental Organization in Pakistan
The focus of EPA in
Pakistan is to enhance the environmental performance of the industrial sector
through the implementation of PEP Act 1997. Pakistan environmental protection
Act 1997 provides basis for implementation for the protection of environment,
rehabilitation, conservation and improve of the environment. It also includes
work for prevention and control of pollution; and for sustainable development
as well. (Brief on Pakistan Environmental Protection Agency, 2010).
Implementation of PEPA,
1997 ensure the implementation of policies and standards, introduction of
Environmental Impact Assessment (EIA) procedures to industrial sector,
formulation and implementation of National Environmental Quality Standards
(NEQS). Different measures and action has been taken into account for
sustainable development and an effective environmental management like Green
Industry Programme / self monitoring and reporting program (SMART), Clean
Development Mechanism (CMD) as a national operational strategy. Despite of all
these efforts still there is a sound need to promote concept of cleaner
production and sustainable development.
These initiatives and
other environmental management systems are drivers for sustainable development
and improvement of the environmental performance .Green Industry Programme
(SMART) was launched on 8th March, 2006. With the notification of
National Environmental Quality Standards (NEQS) in 1993 the implementation of
SMART became valid form 1st July 1994 for already running units and
on 1st July 1996 for new units to prevent pollution at source.
According to EPA source (2010) about 120 industries are using SMART and data is
continuously being monitored that provides basis for further impact assessment.
From 2003 to 2009, about 19 cases received for environmental impact assessment,
12 of these approved and 7 were in process.
Table 1.3:
Functions of Pakistan Environmental Protection Agency (Pak-EPA)
|
Source: Information
collected and complied from website of Pak- EPA (www.environment.gov.pk)
About 59 companies (ISO
Survey of certification 2005) in 2005 and 77 companies (Massoud, 2009 p 201) in
Pakistan were ISO certified including Unilever, Pakistan Refinery Limited
(PRL), Haleeb Food and other similar industries. With the evolution of
environmental concern, Industrial sector in Pakistan is interested in adoption
and implementation of EMS. Many multinational organizations have obtained ISO
14000 certification including education sector like Baluchistan University. In
addition to that, Sustainable development policy institute (SDPI) with other
similar institutes in Pakistan is providing training and awareness to industrial
sector about the implementation of EMS. SDPI points lack of understanding among
the stakeholders about EMS especially ISO 14001 (SDPI 2003) and considered it
as a constraint.
Up to May 2004, about 38
environmental consultants were registered with public sector which are working
in Pakistan and providing their services to both private and public sector
regarding environmental management, resource management and for training and
certification (MOEN. 2004)
On the other hand,
Pakistan Standards and Quality Control Authority (PSQCA) is the Standardization
body of Pakistan and is a member of International Organization of
Standardization (ISO). The objective of this authority is to improve the
quality and safety standards (PSQCA n.d). Although, the manufacturing organization
are willing to cope environmental challenges but the lack of awareness,
shortage of financial resources, poor policies ,lack of higher management
commitment , scarcity of expertise and other similar constrains made this goal
to achieve time taken and difficult.
1.4
Objective of the Research
The main aim of the
research work is to identify the constraints and barriers to implementing EMS
in manufacturing industry in Pakistan. Secondly, objective is to investigate
the impacts of these constraints on environment. In order to achieve this aim,
the study has been broken down into objectives.
- Is EMS a tool for sustainable development
&cleaner production in organisations?
- Identification of constraints and
barriers in Implementation of EMS
- EMS implementation: constraints and its
impacts in terms of benefits and trends
- Integration of
constrains and its impacts
- A conclusive
evaluation of these aspects and
recommendation for further work
Moreover these factors will be considered for further discussion and
analysis
- Examining the role of
EMS as a basic tool for sustainable development
- Identification of the
constraints/barriers in EMS implementation as a negative aspect for
organizations
- Explanation of the
environmental impacts and their
consequence
- Present conceptual model for removing
these barriers for up-to- date business and sustainable future
- To analyse standard
EMS and its compatibility with current atmosphere in Pakistan.
The study will address these and other
identical aspects of the topic under consideration
- How EMS play’s its
role as a key element for sustainable development?
- What are the
constraints which impede the implementation process of EMS?
- What are the ultimate
consequences of these constraints and how it effects the growth of organization?
- What are the benefits of EMS
implementation
5. How these factors can be
overcome
Overall, this study will cover all these points, and method
of research design and research approach will be represented in next chapter in
detail.
1.5
Research Approach
The nature of the study has reverence to investigation and
analysis of the issue. In order to achieve the target two phase strategy is
adopted for identification of constraints and for investigation of their
impacts. Firstly, the information related to implementation of EMS and
constrains will be collected. On the basis of previous data and literature, as
a primary source of information questionnaire will be designed. The focus of
questionnaire will include the question about implementation of EMS in manufacturing
industry and constraints and its impacts on environment. Questionnaire is used
as a primary source of information for survey on the basis of which further
analysis and discussion is carried out. In addition to that previous case
studies form books, journals and articles served as a supporting element to
conceive outcome of this project in real based on questionnaire survey.
In second phase, the
data will be collected and interpreted to reach specific results. Qualitative
research methodology will be used as a secondary source of information.
Previous case studies in books and journals, articles, conference proceedings,
and magazines are supporting element in this phase for discussion, analysis and
conclusion.
1.6
Structure of Research
Report
The research work is
divided into five main chapters including appendices, list of figures and
tables.
In first chapter, an overview and introduction
about EMS followed by research objective, research approach has been described.
The review of the literature on Implementation
of environmental management system will be discuses in second chapter. It will
provide information about role of EMS in improving environmental performance
and related issues. It also describes the research issues, what the constraints
are and how it effects the environment
Chapter third describes
the research methodology, study design; research instrument and other
parameter. It provides information about the questionnaire design and survey.
Forth chapter describes
the findings and collection of the data. With the help of questionnaire survey
discussion and analysis will be carried out.
Conclusion and
recommendation with highlighting the area for further work will be represented
in last chapter
1.7
summary
This
chapter gives idea about the environmental management system and its
implementation. First, an overview about the EMS and its role in industrial
sector has been discussed. Second, an introduction about the development and
background of environmental management system has been discussed. Third, the
EMS in Pakistan and its organization structure with different functions and
responsibility has been discussed. In forth section the research objective has
been labelled followed by research methodology and report structure.
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