More and more importers are requiring their suppliers to have an Environmental Management System. But why? How do importers benefit from working with a supplier that has an Environmental Management System?

1. And How It Can Help You, as an Importer

2. A Snapshot of Manufacturing and the Environment
Manufacturing industry waste is threatening air, soil, and water quality.
Residents in immediate vicinities of factories are impacted by manufacturing
waste (e.g. shortened expected life span).
Even those on different continents feel its effects.

3. Rank Country PollutionIndex
1 Afghanistan 101.27
2 Ghana 97.85
3 Lebanon 94.88
4 Bangladesh 93.06
5 Egypt 92.84
6 Mongolia 92.67
7 Myanmar 89.74
8 Vietnam 88.41
9 China 88.08
10 Peru 87.12
Countries Ranked by Pollution Index, Mid-Year 2016

4. The Impact of the Environment on Importers
As the world’s environmental
condition declines, more retailers
and distributors are focusing on
holding themselves and their
business partners responsible for
limiting their environmental impact.

5. The Impact of the Environment on Importers
But what if you deal with different
suppliers that have different
environmental standards and
initiatives? And how can you make
sure they are actually compliant?

6. The Answer: An Environmental Management System
EMS
plan
act check
do

7. What is an Environmental Management System?
An organization uses an
Environmental Management
System (EMS) to help achieve its
environmental goals by actively and
consistently reviewing, evaluating,
and improving its environmental
performance.
NOTE: The organization must set
its own environmental objectives
and targets; the EMS acts as a
systematic review.

8. What are the Benefitsof Doing Business
with aSupplier with anEMS?
Many retailers and importers
insist on having an EMS because a
supplier that does not adhere to
environmental standards means
unwanted risks.

9. What are the Benefitsof Doing Business
with aSupplier with anEMS?
Enhance supplier efficiency and
compliance
Improve image with public,
employees, and investors
Create new customer and market
opportunities

10. What do Studies onthe Benefits of an EMSSay?
According to a 5-year study
conducted by the University of
North Carolina, an EMS can be
beneficial to the environmental
performances of most facilities.
Of the 83 facilities that participated in the
study, 86% said they benefitted from
developing and implementing an EMS.
86%
14%
Survey Results on the Benefits
of EMS
Benefitted from EMS Otherwise

11. What do Studies onthe Benefits of an EMSSay?
The Environmental Agency in
England concluded from its own
study that having an EMS is
associated with increased
operational performance.
The average Operator Performance
Appraisal (OPA) score for facilities
without an EMS was 3.4167, while the
average OPA score for companies with
ISO 14001-certified EMS was 3.6833.
3,2
3,4
3,6
3,8
Average OPA Score
Average OPA Score vs. EMS
No EMS EMS

12. These are the PossibleConsequencesof Doing Business with
aSupplier with NO EMS:
Supplier inefficiency and
non-compliance
Business and legal risks
Increased costs
Damaged business image
Lost business opportunities

13. If Your Supplier doesNOThave
anEMS
Some countries have environmental
regulations (e.g. a cap on emissions
or prohibition of certain waste
removal methods). If they are
violated, both you and your supplier
could face fines and court cases,
forced factory shutdowns, and loss
of business with retailers.
If your supplier does NOT have
an EMS, encourage them to
establish one.

14. The Next Step
If your supplier does have an EMS,
you should conduct an
environmental audit to look at
their goals and what actions have
been implemented to improve
environmental performance.

15. The Next Step
Now that you've decided to conduct
an environmental audit, what’s
next?
Determining the standards to base
your evaluation.
NOTE: ISO 14001 standards are
commonly used for this audit.

16. What does an ISO 14001 Audit Entail?
An audit based on ISO14001standards iscommonly usedto evaluate anEMS. The audit
considers:
Supplier
organization and
environmental
policy
Supplier EMS’s
environmental
aspects
Supplier legal
requirements and
documentation
Supplier
environmental
objectives, targets,
and programs
Supplier
operations and
management

17. The Structure of AnEMSUnderISO 14001
Management
Review
Policy
Planning
ImplementationChecking and
Corrective
Action

18. In Short…
An EMS saves you and your
supplier from major headaches and
many unwanted costs. Conducting
an environmental audit based on
ISO 14001 standards will make
sure your EMS is efficiently and
effectively improving
environmental performance.

19. Sources
• http://www.iso.org/iso/pub100329.pdf
• https://www.epa.gov/ems/learn-about-environmental-management-systems#what-is-an-EMS
• https://www.epa.gov/ems/learn-about-environmental-management-systems#costs
• https://www.linkedin.com/pulse/environmental-impact-manufacturing-from-industrial-between-robinson
• http://www.unep.fr/shared/publications/pdf/DTIx1262xPA-PriorityProductsAndMaterials_Report.pdf
• http://www.cfr.org/china/chinas-environmental-crisis/p12608
• http://www.slideshare.net/hecrod/environmental-management-systems-iso-14001
• http://www.nytimes.com/2013/03/30/world/asia/cost-of-environmental-degradation-in-china-is-
growing.html?_r=1
• http://www.pnas.org/content/111/5/1736.abstract
• http://www.numbeo.com/pollution/rankings_by_country.jsp
• http://www.slideshare.net/hecrod/environmental-management-systems-iso-14001
• http://www.slideshare.net/technosyscon/iso-14001-environmental-management-system
• https://www.eurekalert.org/pub_releases/2003-03/uonc-sce030603.php
• https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/290343/sp6-017-2-tr-e-e.pdf