ISO 14001 Delivers Effective Environmental Management and Profits

In the United States environmental management is typically portrayed as a hindrance to business rather than an asset. This is especially true in the electronics industry where the need to reduce costs had traditionally meant moving production to countries that have low labor costs and little or no environmental protection requirements. Thus electronics businesses have received the reputation of exporting environmental problems rather than developing solutions. Today many companies are realizing that instituting a sound environmental management system (EMS) like ISO 14001 actually leads to higher profits, produces a positive public relations image, and results in a cleaner world. In fact one company with an ISO 14001 EMS learned how to recycle 94% of its waste and created a profit center in the process.

Environmental awareness is important to a company's success.
Every electronics manufacturing facility, no matter the location, has environmental impacts on it neighbors. Companies must manage a variety of chemicals, energy use, air and water discharges, solid waste from scrap and packaging, and disposal of hazardous waste. Companies must have procedures to unload chemicals at the receiving dock, to store them appropriately and in accordance with regulations, to use them safely, and to treat and dispose of them correctly.

The electronics and computer industries use a wide variety of chemicals in their manufacturing processes. The processes within the electronics industry that use chemicals and generate the most waste are the manufacturing of semiconductors, printed curcuit boards, and cathode ray tubes.

The most common chemicals used and released in semiconductor manufacturing are sulfuric and hydrochloric acids used in etching and cleaning, solvents such as acetone and glycols used in photolithography and cleaning. Printed circuit board manufacturing uses and generates sulfuric, hydrochloric and nitric acids for plating and etching, and metals such as lead and copper. Glycol ethers and solvents, such as acetone, are used in image appilcation and cleaning. Ammonia solutions are used in electroplating, imaging, and etching. Production of cathode ray tubes utilizes a variety of metals, acids, and solvents.

Management of these hazardous wastes is of particular concern to most companies, whether large or small. Hazardous waste includes concentrated acids and bases, organic solvents, metallic salts, epoxy resins and catalysts, and gases, some of which are highly toxic. In addition to following RCRA (Resource Conservation and Recovery Act) regulations, companies must effectively track all materials in accordance with local fire regulations. Off-site recycling and disposal of hazardous wastes are expensive and have potential liabilities associated with them, especially if buried in a landfill. Recently one small company was almost bankrupted by the money they had to pay when records showed their waste had been disposed at a Superfund site.

An effective EMS considers all aspects of a facility's environmental impact. Consider the amount of energy it takes to make electronic components, to operate lights and computers, and air-condition the building. Energy production uses natural resources and either emits greenhouse gases or has other serious environmental effects. Becoming more energy efficient not only helps the environment, but adds directly to a company's profits.

Management of solid waste from scrap and packaging can also have significant financial potential. Scrap printed circuit boards and metal can be recycled. Containers in which raw chemicals are stored are now routinely returned to the supplier for reuse. Cardboard, paper, and wooden pallets can all be recycled. As an example, Canon Virginia, Inc. of Newport News, Virginia, aggressively manages their solid waste, most of which consists of packaging materials. "Canon is committed to conducting and supporting activities that make a measurable difference to the environment" siad Michiaki Matsuo, President and CEO of Canon Virinia,Inc. "One way we show our commitment is through our recycling efforts. Not only do we have a successful solid waste program, but every employee contributes to our recycling efforts everyday through paper and aluminum can recycling programs." Employees gather the waste from throughout the facility, separate it, and sell it to other companies. The company recycles 94% of its waste and, remarkably, the program is a profit center.

Besides profits, an effective EMS can result in good community relations. Consider a neighborhood that has a small chemical manufacturer nearby which has a strong smelling resin release once or twice a year. Each time this occurs, the neighbors are outraged. The story is carried on television, radio and in the newspapers while high-level company officials are tied up responding to the bad publicity. The company incurs more audits and fire inspections, pays fines, loses community support to expand the current facilities, and has higher liability insurance rates. An EMS like ISO 14001 can help this company.

What is ISO 14001?

ISO 14001 is a standardized management system that assists a company in controlling its effects on the environment. It was developed and approved by approximately 500 delegates from over 40 countries representing both industry and governmental agencies. Development of ISO 14001 was based on two other standards: BS 7750, an EMS developed for UK companies, and EMAS, a European-developed EMS which requires an evironmental impact statement to be published for the general public. The International Organization of Standards (ISO) formally published the ISO 14001 standard on September 1, 1996.

The ISO 14001 environment management system (EMS) provides a proactive, orderly approach to control environmental issues and yields tangible and intangible benefits. Companies with an ISO 14001 system have reduced energy consumption, cut generated wastes, streamlined internal operations, and received favorable publicity for these achievements. Some companies pay back their ISO 14001 implementation costs in less than two years, and continue to increase profits by uncovering additional cost-saving ideas every year.

Implementing ISO 14001 requires companies to identify the parts of its operations that cause the greatest environmental impact. A program must then be established to control and reduce pollution caused by these operations. As these discharges are reduced and brought under control, resources can then be used to address the operations that have less impact.
ISO 14001 also includes sections to help mange the implementation of the EMS. The standard addresses internal audits to evaluate the effectiveness of the EMS, corrective action procedures to fix any problems, and management reviews to assess change and continually improve the system.

Overview of the Standard

The ISO 14001 standard is a tool organizations use to establish an effective environmental management system. The standard requires the company to install an environmental policy, plan an approach to managing its environmental inpacts, implement and operate the EMS, check the system's operation, use corrective actions to fix problems, and conduct management reviews. (Refer to sidebar 2)

The standard does not require much documentation. Items that must be documented include the environmental policy, a description of the EMS with the objectives and goals, management reponsibilities, procedures to operate and control equipment that causes environmental impacts, and management review meeting minutes.

Achieving ISO 14001 Registration/How to Implement ISO 14001

Implementing and complying with ISO 14001 obviously takes time and money. Most companies need 12 to 18 months to become registered. The resources required to implement ISO 14001 are based on a number of factors, such as the type and size of the organization, exsisting management systems in place, and third-party audits. These registration audits are conducted in two phases. The first phase reviews the EMS documentation, how it is set up, and a survey of the site. The second phase, usually performed several months later, evaluates whether the EMS is operating in accordance with the ISO 14001 standard and the company's written and unwritten procedures, similar to ISO 9000. Most companies will probably require two surveillance visits each year, whereas smaller companies may require only one annual visit.

The type of manufacturing facility will affect the number of environmental impacts the company has. A company that assembles electrical goods will have fewer environmental issues than a semiconductor manufacturing plant because an assembler uses fewer chemicals. Also, the size of the facility will affect how many personnel require training and the extent to which procedures will be distributed.

Companies with an exsisting quality standard (like ISO 9000, QS-9000, or AS9000) can implement ISO 14001 faster due to the commonality of elements in these standards. With ISO 9000, a registered company has a defined management structure, quality management review meetings, document and records control procedures, internal audits, and a procedure for corrective actions. Having an existing EMS means a company will have many of the ISO 14001 elements already in place.

For example, Midland Brake,Inc.'s facility in Iola, Kansas exemplifies how quickly a company can become registered to ISO 14001. The company, with approximately 450 employees, was registered to ISO 9001 in 1995. At that time it had an environmental management system in place. The EMS is also used to control the company's environmental health and safety program. In October 1997 they started adapting the environmental management program to ISO 14001 requirements. They expect to complete the final registration audits in April 1998. A total of 6 months!

Simple Steps to ISO Registration

To successfully implement ISO 14001, a company should:

1. Get top management support. They will supply the resources to implement ISO 14001 and their input is needed to review the system and to keep it operating effectively.

2. Evaluate the current status of environmental procedures. Develop a list of written and unwritten policies, procedures, and other requirements the company uses to deal with environmental issues. Compare this list to each of the auditable requirements in Section 4 of the ISO 14001 standard.

3. Collect information on costs and quantify resources used, production rates, and wastes generated. Future improvements to various company operation will be measured against this baseline.

4. Create an environmental policy that incorporates commitment to prevention of pollution and continual improvement.

5. Identify specific operations and its environmental impacts. Rank these using criteria such as toxicity, effect on production, cost to remediate, and community interest under normal and abnormal conditions. Select which operations will be initially managed under the ISO 14001 EMS based on its ranking, company policies, and available budget.

6. Evaluate whether the company is in compliance with environmental statutes and regulations.

7. Develop objectives to address each significant operation and establish specific goals for each objective.

8. Identify a list of tasks to reach objective and goal.

9. If your company has an ISO 9000 quality program, integrate elements of the two programs to the extent practicable.

10. Select an accredited registrar that will work well with you and provide value to the audits. The auditors should focus on the company's management system, not on a company's regulatory compliance.

11. Begin implementing the ISO 14001 EMS by starting work on the tasks and internal audits.
Invite the registrar to perform phase one of the registration audit where the auditors review the EMS documentation, survey the facility, and audit all or part of the EMS.

12. Continue operating the EMS.

13. Invite the registrar back to perform the second and final phase of the registration audit. This audit focuses on implementation of the EMS.

14. Maintain the EMS and continue having the registrar perform surveillance audits to validate compliance with their own system and the ISO standard.

Benefits

In a competitive market, where a contract loss due to non-compliance, or worse, a hefty legal settlement which could irreparably damage the prestige and finances of a company, ISO 14001 offers an organized approach to manage environmental issues. Using this approach, a company can cut environmental-related costs and thereby increase profits in a variety of ways.
By implementing ISO 14001, a company can directly increase its profits over the short term through decreased energy costs, lower costs for diposal and treatment of solid and hazardous wastes and lower amounts spent on remediation.

As the company continues to implement its EMS, it benefits from improved regulatory compliance, an improved reputation as a good neighbor, and a leader within the industry. Other benefits include a decrease in greenhouse gases, a lower potential for accidental spills and releases, improved employee safety and increased interest and enthusiasm, and less toxic and hazardous wastes.

References

United States Environmental Protection Agency, Profile of the Electronics and Computer Industry, EPA Office of Compliance Sector Notebook Project, EPA 310-R-95-002, September 1995.

Sidebar #1
Where to go for more information
There is no shortage of information available on ISO 14001. Copies of the ISO 14001 standard and guidelines are available from the American Society of Quality (AQS), American Society for Testing and Materials (ASTM), and American National Standards Institute (ANSI). Books on the subject can be obtained from ASQ and CEEM Information Services.
Many periodicals have information on ISO 14001, environmental management systems, and pollution prevention. One that focuses on ISO 14001 is Environmental Management Report, published by McGraw-Hill.

Other information can be found through professional organizations including the ASQ, the Environmental Auditing Roundtable, and the National Association of Environmental Management.

Additionally, web sites and discussion groups abound. Two of the best are www.iso14000.net and www.iso14000.com. A useful discussion site is owner-iso14000@quality.org.

Sidebar #2
The ISO Standard
1. Define the Company's Environmental Policy"
The standard requires that the managers of the organization define the environment poilcy. In the policy, there must be a commitment to Continually improve the environmental management system, Prevent pollution of the environment, and Comply with relevant environmental legislation.
2. Steps to plan the Environmental Management Program
> Identify the major environmental issues for the company.
> Identify the relevant environmental regulatory issues.
> Specify objectives and goals to reduce environmental impacts.
> Develop a list of tasks that will achieve each of these objectives and goals.
3. Operating the EMS
> Identify the management roles and responsibilities needed to implement the EMS.
> Train personnel so they are aware of the EMS program and competent to control environmental impacts.
> Establish internal and external lines of communication.
> Prepare a document that describes the EMS.
> Manage EMS documents such as procedures.
> Control operations of the company that cause significant impacts.
> Have procedures to prepare for and respond to emergencies.
4. Monitoring and Correcting the EMS
> Monitor and Measure:
- Performance of those operations that cause a significant environmental impact,
- Progress toward meeting the objectives and goals,
- Calibration of monitoring equipment, and
- Compliance with environmental regulations.
> Maintain EMS records such as permits and monitoring data.
> Conduct internal EMS audits
> Perform corrective actions to fix problems and preventive actions to prevent problems from occurring
5. Management Review
Management periodically reviews the EMS to continually improve it. This review will evaluate the need for changes to the Environmental policy Identified significant issues, and Schedule and budget to meet the objectives and goals. These changes keep the EMS current and effective.