Chapter 9

Corporate Environmental Strategy

Corporate Environmental Strategy

Why follow “Environmental Strategy”?

1. Corporate image management (improve reputation)– Stakeholder communications– Corporate environmental reporting

2. Market advantage (increase sales)– Product quality

History of Corporate Environmental Strategy

Generation 1: Mid 70s to mid 80s• Objectives: Risk management.

• Main people: Senior Management, environmental staff.

• Indicators: Controlled emissions, dangerous wastes, violations & fines.

Generation 2: Mid 80s to mid 90s• Objectives: avoid costs, gain competitive

advantage.

• Main people: Stakeholders, line management, managers.

• Indicators: Resource efficiency, emissions & waste, financial,

History of Corporate Environmental Strategy

Generation 3: 2000 and ahead• Objectives: Strategic effectiveness, credibility,

business sustainability,

• Main people: stakeholders group.

• Indicators: environmental condition, resource efficiency, products safety .

History of Corporate Environmental Strategy

Corporate Environmental Strategy

Environmental Management Systems (EMS)”:

An EMS is a continual cycle of planning, implementing, reviewing and improving the processes and actions that an organization undertakes to meet its business and environmental goals.

Environmental Management Systems (EMS)

Most EMSs are built on the "Plan, Do, Check, Act" model.

Environmental Management Systems (EMS)

This model leads to continual improvement based upon:

1. Planning: including identifying environmental aspects and establishing goals [plan].

2. Implementing: including training and operational controls [do].

3. Checking: including monitoring and corrective action [check].

4. Reviewing: includ.ing progress reviews and acting to make needed changes to the EMS [act].

ISO 14001

ISO 14001: deal with environmental management systems (EMS)

requires implementation of an Environmental Management System (EMS) in accordance with defined internationally recognized standards (as set in the ISO14001 specification). To get ISO14001 , an organization should do the following :

1. Establishing an environmental policy, 2. Determining environmental aspects & impacts of

products/activities/services, 3. Planning environmental objectives and measurable

targets,

ISO 14001

4. Implementation & operation of programs to meet objectives & targets,

5. Checking & corrective action, and 6. Management review.

Applying Corporate Environmental Strategy, IKEA

IKEA identified three key areas to focus the task of integrating environmental criteria and awareness into its business operations:

1. The Environmental Adaptation of the Product Range First, to identify what material is being used today and, Second, which materials they will need to reduce over both the short and long term to improve environmental performance.

Applying Corporate Environmental Strategy, IKEA

2. Sustainable Forestry: Approximately 75 percent of the raw material for IKEA's products, packaging and catalogs comes from forests.

• IKEA's ultimate goal is to use wood products sourced only from sustainably managed forests.

• 3. Environmental Work with Suppliers: IKEA directly manufactures less than 10 percent of the products it sells. The balance is produced by some 2,300 suppliers in more than 60 countries.

Applying Corporate Environmental Strategy, IKEA

• Many suppliers, particularly in Eastern Europe and Southeast Asia, have lower environmental standards than in Western Europe or North America.

• IKEA is encouraging its suppliers to institute environmental management systems in their operations and many suppliers have already fulfilled the requirements according to ISO 14001