How Businesses Can Dig More Money Out of the Environment  (January 2004)

If the title sounds a bit blasphemous these days then read on...

For years now we've exploited the environment by removing natural resources, dumping copious quantities of waste into the waterways, and pumping massive pollutants into our atmosphere and soils.

Somewhere along they way, however, we began to wake up, to realize that sustainable development was becoming limited by our own actions (and inaction).

We also realized that becoming environmentally responsible helped control and reduce many of our costs, and thus made us more profitable.

General Motors reports saving over 180 million dollars through waste management and recycling efforts resulting in tremendous reductions in greenhouse gas emissions.  (See www.gmability.com for more information.)

In 1999 it was reported by the Dow Jones Sustainability Group Index that the top 6  environmental performers in the chemicals industry showed a 9.2 percent higher annual return than those of the poor environmental performers.  (Business for Social Responsibility, [online].  Available: www.bsr.org/bsrservices/environment.cfm. 2004.)

So how do you make more money exploiting the environment while at the same time protecting it?

Simple.  You develop, implement and maintain environmental management systems to an international standard such as ISO 14001.

What is an environmental management system, you ask?

An environmental management system (or EMS) is a structured management plan designed to identify and manage the effects a company has on the environment.  It includes having an environmental policy, identifying the aspects of your business that do, or can, have an effect on the environment, developing environmental objectives and programs to attain those objectives, and providing training to all of your employees.

You're familiar with the ISO 9000 series of international standards.  Now it's time to become familiar with the ISO 14000 series of standards. (If you are ISO 9000 certified now is the time to look into ISO 14001 as it may soon become a significant part of ISO 9000 re-certification.)

Sounds expensive and time consuming.  What's in it for me?

Creation of a management system that can reduce your company's environmental liability.

Awesome publicity.

A global marketing advantage over your competition.

Strong public image among business associates and your community (including banks, insurance agencies, and your customers).

Reduction of trade barriers.

Inherent cost savings from improved processes.

And possibly the most important benefit of all: the potential opportunity for regulatory flexibility with agencies such as the EPA, state environmental offices, or your local zoning office (think of the permitting hurdles that could be overcome for that expansion should you be able to prove your environmental responsibility).

European companies have been implementing these systems as a necessary part of doing business or borrowing money for years now.

Let us take a page from their book and become ever more profitable.  More information on ISO 14001 can be found at the ISO website: www.iso.ch or at www.greatbayconsulting.com.