Sunday 19 February 2012

Paper - ISO14031 on EPE (Environmental Performance Evaluation)

I'm obliged to share this paper which was first made public in 2003. In my professional opinion E.P.E is designed to alleviate the torment of compiling documents in view of reporting such as during an Audit and the Management Review. It's like the K.P.I used in conventional management. Without the E.P.E, it is like Sebastian Vettel having to drive his F1 beast without the tachometer or at slower pace a sailor without a compass! Ironically, too few organizations believed in this, even today. Happy reading!



A paper for PUSPATRI in conjunction with a seminar entitled QUALITY ENVIRONMENT FOR QUALITY LIVING, 29th December 2003, at Dewan Suasana Hotel Selesa, Pasir Gudang, Johor 

INTRODUCING ISO14031 – ENVIRONMENTAL PERFORMANCE EVALUATION AS A TOOL OF SELF-REGULATION AND SELF AUDITING

 By SEKITAR SYNERGY SDN BHD and delivered by Khalid Mohd Ariff

Introduction

Environmental Performance Evaluation (EPE) is based on the adage, “what gets measured, gets managed”. It has been used globally by organizations in the manufacturing, health services, transportation, electrical utility and municipal sectors to improve environmental performance, provide a basis for performance benchmarking, demonstrate compliance to regulations and increase operational efficiency. This article describes the EPE methodology as set out in the ISO 14031 standards together with its benefit and objectives, implementation steps, and the results from a recent case study. Note: for specialized training in this area contact us at www.sekitar.com, khalid@sekitar.com or Tel: 07-2416491/92 Fax: 07-2416490 (these old contact links are no longer valid)

What is EPE?

EPE is a relatively new term used to describe a formal process of measuring, analyzing, reporting, and communicating an organization’s environmental performance against criteria set by its management. The Process involves collecting information and measuring how effectively an organization manages its environmental aspects on an ongoing basis. Certain concepts and components of EPE have been applied for more than a decade. ISO 14031 now provides a structured approach for organizations to follow independent of location, size, complexity and type of activity.

Objectives and Benefits

The objectives of implementing an EPE program include:
  • Better understanding of an organization’s impacts on the environment;
  • Providing a basis for benchmarking management, operational and environmental performance;
  • Identifying opportunities for improving efficiency of energy and resource usage;
  • Determining whether environmental objectives and targets are being met;
  • Demonstrating compliance with regulations;
  • Determining proper allocation of resources;
  • Increasing the awareness of employees; and
  • Improving community and customer relations.

Once achieved these objectives are realized as benefits. One of the first steps in applying EPE involves identifying environmental aspects and impacts and establishing performance indicators to monitor.
The ISO14031 Standard

ISO 14031 is an international standard that describes a process for measuring environmental performance. It is not a standard for certification, as is ISO 14001. The EPE tool is designed to provide management with reliable and verifiable information on an ongoing basis to determine whether or not its organization’s environmental performance is meeting criteria it has set for itself. It fits into the ISO 14000 series of standards, and is intended to assist organizations obtain ISO 14001 certification. ISO 14031 is also being used by organizations of all sizes, type, locations and complexity, and provides benefits to organizations with and without environmental management systems in place. In applying the standard, an organization with an environmental management system in place should evaluate its performance against its environmental policy, objectives, targets and other criteria set established within the management system. Organizations without an environmental management system may use EPE to: identify its environmental aspects; determine which aspects it will consider significant; establish environmental performance criteria; and assess its performance against these criteria.

The process described in the standard is based on the Plan-Do-Check-Act (PCDA) business process improvement model (see Figure 1).

 Planning (Plan)

The focus of planning efforts is on the selection of indicators, which should be based on: significant environmental aspects; environmental performance criteria, including internal criteria as well as regulatory standards; and the views of interested parties. A review of environmental aspects should be undertaken whether the organization has an environmental management system in place or not.

Another important element of planning is to obtain management input so that the scope and focus of the EPE program fits into the organization’s overall business plan. Scope considerations may include answers to the following questions; 
  • What information is needed to support the overall environmental policy and goals?
  • How can the data requirements be integrated with existing measuring and monitoring systems?
  • Should the program address the entire organization or be phased-in starting with selected activities or business units?
  • Which activities, products or services represent the largest cost saving and performance improvement opportunities?
  • How many performance indicators can be monitoring with the resources allocated to the program?
Table 1: Example of Performance Indicators and Metrics

Operating Performance

Indicator (OPI)

Management Performance

Indicator (MPI)

Environmental Condition

Indicator (ECI)
Raw material used per unit of
Product (Kg/unit)
Environmental costs or budget ($/year)
Contaminant concentrations in ambient air (ug/m3)
Energy used annually per unit of product (MJ/1000 L product)
Percentage of environmental targets achieved (%)
Frequency of photochemical smog events (#/year)
Energy conserved (MJ)
Number employees trained (% #trained/to be trained)
Contaminant concentration in ground- or surface water (mg/L)
Number of emergency events or unplanned shutdowns (#/year)
Number of audit findings (#)
Change in groundwater level (m)
Hours of preventive maintenance (hours/year)
Number of audit findings addressed (#)
Number of coliform bacteria per liter of potable water
Average fuel consumption of vehicle fleet (L/100 Km)
Time spent to correct audit findings (person-hours)
Contaminant concentration in surface soil (mg/kg)
Percentage of product content that can be recycled (%)
Number of environmental incidents (#/year)
Area of contaminated land rehabilitated (hectares/year)
Hazardous waste generated per unit of product (kg/unit)
Time spent responding to environmental incidents (person-hours per year)
Concentration of a contaminant in the tissue of a specific local species (ug/kg)
Emissions of specific pollutants to air (tonnes CO2/year)
Number of complaints from public or employees (#/year)
Population of an specific animal species within a defined area (#/m2)

Operating Performance

Indicator (OPI)

Management Performance

Indicator (MPI)

Environmental Condition

Indicator (ECI)
Noise measured at specific receptor (dB)
Number of fines or violation notice (#/year)
Increase in algae blooms (%)
Wastewater discharged per unit of product (1000 L/unit)
Number of suppliers contacted about environmental management (#/year)
Number of hospital admissions for asthma during smog season (#/year)
Hazardous waste eliminated by pollution prevention (kg/year)
Cost of pollution prevention projects ($/year)
Number of fish deaths in a specific watercourse (#/year)
Number of days air emissions limits were exceeded (days/year)
Management levels with specific environmental responsibilities (#)
Employee blood lead levels (ug/100 mL)

The final step in analysing the data is comparing the information to performance criteria and targets established for the organization. Performance criteria can be derived from specifications found in regulations, operating permits, or benchmarking data. There is increasing interest amongst industry in benchmarking performance to define “best industry practices” and cost-effective ways of improving performance. These are seen as complementary approaches to existing risk-based regulatory approaches.

The final task in completing the EPE assessment or “do” step of the PDCA cycle is to communicate the results to both internal and external stakeholders. This is a critical step if environmental improvements are to be realized. This will create awareness, demonstrate commitment and put information in the hands of those who will be responsible for making improvements. Important points that should be addressed by the report include:
  •  A description of the organization’s activities, products and services;
  • A statement of the organization’s commitment to EPE as a tool for environmental management;
  • A statement of its significant environmental aspects and related performance indicators
  • A comparison of performance indicators to established criteria and targets;
  • Trends in the organization’s environmental performance;
  • Legislative and regulatory compliance;
  • Cost savings and financial results;
  • Opportunities or recommendations to improve environmental performance; and
  • Actions arising from EPE.

 The results may be communicated as reports or statements published on a regular basis. In preparing reports, consideration should be given to the target audience, as different readers need varying types of information. One approach is to prepare a comprehensive report and provide specific sections of the report to stakeholders based on their needs, such as those presented in Table 2.

CONCLUSION

A First Step Towards EMS Implementation

A technical report (ISO/TR 14032) was published to support the ISO 14031 standard that describes examples of EPE applications from around the world. Although intended as a tool to assist companies in obtaining certification to the ISO 14001 environmental management system standard, many companies are using EPE either as a first step towards EMS certification, or as a stand alone program. Using EPE as a stand-alone program is attractive to small and medium sized enterprises that want a means to quickly and efficiently start measuring performance and making improvements without getting bogged down with the certification process. Others are using EPE as a starting point and means of focusing and tracking the implementation of a certified EMS.

References
  1. ISO/TC207/SC4/JWG.ISO 14031: 1999(E)Environmental Performance Evaluation – Guidelines. Canadian Standards Association.
  2. ISO/TC207/SC4/JWG.ISO/TR 14032: 1999 – Examples of Environmental Performance Evaluation (EPE). Canadian Standards Association
  3. Kuhre, W. Lee. ISO 14031 – Environmental Performance Evaluation (EPE): Practical Tools for Conducting an Environmental Performance Evaluation.Prentice Hall, Upper Saddler River, NJ. 1998


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