May include recycling systems systems to monitor and control levels of liquids

May include recycling systems systems to monitor and

This preview shows page 27 - 39 out of 51 pages.

May include recycling systems, systems to monitor and control levels of liquids, material and atmospheric discharge and waste u ISO 14001 is an international standard for EMA and its audit u EMS and adoption of ISO 14001 requires that environmental performance be measured against policies, objectives and targets 17-27
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Economic, environmental and social impacts u Economic and social impacts are difficult to identify and measure, but may be substantial u Future ecological and social impacts are not yet known u Current work practices may have future environmental and social consequences which we cannot predict u Many costs and benefits are external to the organisation u Difficult to detect and assess u Many costs and benefits are difficult to measure in financial terms 17-28
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Environmental costs u The costs that an organisation incurs to prevent, monitor and report environmental impacts u May extend into the future u US EPA defines 5 tiers of environmental costs u Private costs (tiers 1 to 4) and societal costs (cont.)
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Environmental costs (cont.) u Environmental costs can be analysed using the same framework as used to analyse quality costs u Prevention activities u Solve environmental problems before they occur, or turn problems into opportunities u Costs of these activities are ‘investments’, as they reduce the future outlays and provide long-term benefits u Appraisal activities u Monitor the levels of environmental impact u Measures damage, inspects processes and products, audits supplier performance (cont.)
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Environmental costs u Internal failure activities u To correct breakdowns discovered in appraisal activities u Cost of cleaning the plant after spillage, cost of occupational health and safety claims by employees u External failure activities u Occur when resolution and remediation efforts fall outside of the organisation’s management u Cost of cleaning up polluted sites, fines for environmental damage, lost profits associated with damage to reputation
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External & Internal Environmental Cost u Menipisnya sumber daya alam u Dampak kebisingan dan estetika u Emisi udara dan air u Pembuangan limbah jangka panjang u Kompensasi kesehatan u Change in local quality of life u Waste management u Remediation costs or obligations u Compliance cost u Permit fees u Environmental training u Environmentally driven R&D u Product guarantee u Employee health & satisfaction u Public/customer perception u Uncertain future remediation or compensation costs
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Improving supply chain management through measuring environmental and social impacts u Suppliers u An organisation may be willing to pay more where suppliers have reduced environmental and social impacts u Organisations may work with suppliers to adopt more responsible environmental and societal practices; this can lead to cost reductions u Formal supplier evaluation can include assessment of a range of environmental and social factors, as well as financial factors (cont.)
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Improving supply chain management through measuring environmental and social impacts (cont.) u Customers u An organisation can work with customers to reduce the adverse environmental and social impact of products u
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