Chapter 9

1. Chapter 9 Corporate Environmental Strategy

2. Corporate environmental strategies … are choices available to managers to align environmentaland social investments with the general strategy of a firm.

3. Corporate Environmental Strategy Why follow “Environmental Strategy”? • Corporate image management (improve reputation): • Stakeholder communications. • Corporate environmental reporting. • Market advantage (increase sales): • Product quality

4. Motives for environmental strategy • Expected competitive advantage: • Company expects reward with an valuable competitive position. • Possible advantages: • Cost savings and improved efficiency • Preserving resources • Enhance reputation • Product quality improvement • Differentiation

5. Motives for environmental strategy • Comply with legislation • Attract quality employees • Satisfy consumer needs • Meeting stakeholders expectation • Attract capital investments

6. Motives for environmental strategy Motives for environmental strategy • Top management commitment: • Strong internal force . • Management as the facilitator of the learning process. • Creating the climate to learn how it internalize environmental issues.

7. History of Corporate Environmental Strategy Generation 1: “Mid 70s” to “Mid 80s" • Operator: Senior Management, environmental staff. • Objectives: Risk management. • Indicators: Regulated emissions, dangerous wastes, violations and fines.

8. History of Corporate Environmental Strategy Generation 2: “Mid 80s” to “Mid 90s” • Operator: Stakeholders, process management, pollution prevention. • Objectives: avoid costs, gain competitive advantage. • Indicators: Resource efficiency, emissions and waste, financial implementation.

9. History of Corporate Environmental Strategy Generation 3: “2000” and ahead • Operator: Stakeholders, sustainability, life-cycle management. • Objectives: Strategic effectiveness, credibility, business sustainability, product sociability • Indicators: Environmental condition, resource efficiency, products safety.

10. Corporate Environmental Strategy Environmental Management Systems (EMS) 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.

11. Environmental Management Systems (EMS) Most EMSs are built on the "Plan, Do, Check, Act" model.

12. Environmental Management Systems (EMS) This model leads to continual improvement based upon: • Planning: including identifying environmental aspects and establishing goals [plan]. • Implementing: including training and operational plans [do]. • Checking: including monitoring and corrective action [check]. • Reviewing: acting to make needed changes to the EMS [act].

13. ISO 14000 - Environmental management The ISO 14000 family addresses various aspects of environmental management. It provides practical tools for companies and organizations looking to identify and control their environmental impact and constantly improve their environmental performance.

14. ISO 14000 - Environmental management • ISO 14001:2004 and ISO 14004:2004 focus on environmental management systems. • The other standards in the family focus on specific environmental aspects such as life cycle analysis, communication and auditing.

15. ISO 14001:2004 SO 14001:2004 : • sets out the criteria for an environmental management system and can be certified to. • It does not state requirements for environmental performance, but maps out a framework that a company or organization can follow to set up an effective environmental management system.

16. ISO 14001:2004 • It can be used by any organization regardless of its activity or sector. • Using ISO 14001:2004 can provide assurance to company management and employees as well as external stakeholders that environmental impact is being measured and improved.

17. ISO 14001:2004 To get ISO 14001 , the organization should do the following : • Establishing an environmental policy. • Determining environmental aspects and impacts of products/activities/services. • Planning environmental objectives and measurable targets.

18. ISO 14001:2004 • Implementation and operation of programs to meet objectives and targets. • Checking and corrective action, and ….. • Management review.

19. Results of environmental strategies • Environmental performance. • ISO 14000 and its sub-standards. • Various aspects of environmental management. • EMS’ tools enabling to identify and control its environmental footprint.

20. 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, to identify which materials they will need to reduce over both the short and long term to improve environmental performance.

21. 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.

22. 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.