Investor's Digest interviewed Sekitar Synergy's Khalid Mohd Ariff in 2002.

Dear Environmental Partners.

 In 2002, we were being interviewed by Investors Digest Magazine pertaining to the current outlook of environmental management in Malaysia. Since we thought that some of the information might be an interest to you, we have decided to disperse for your review and feedback.  The write-up may have omitted some areas and details as the interview was short and snappy.

Q 1:  What environmental standards are currently practised in Malaysia?

 As an active environmental participant in the global green procurement, we are subscribing to the International Environmental Management System Standard, that is, the ISO 14001.  Nevertheless, in order to display this commitment, our SIRIM QAS SDN. BHD. has adopted this international requirement as a local standard called MS ISO 14001 where MS abbreviates ‘Malaysian Standard’.  SIRIM QAS SDN. BHD. is in turn accredited by the British UKAS which enable our SIRIM’s MS ISO 14001 be recognized internationally.  In addition to this, Malaysia is among the earliest nation in the South East Asian region to have promulgated a national environmental legislation aimed to prevent, abate and control pollution for the enhancement of our environmental quality.  This local environmental law which is known as The Environmental Quality Act, 1974 is primarily enforced by The Department of Environment.  Therefore, apart from the international standard the Malaysian government has instilled a form of environmental management amongst local enterprises (especially the manufacturing and services sectors) via the regulatory environmental requirements.

 Q 2:  Do many companies locally adhere to environmental management and sustainable development standards?  What are their reasons for practicing environmental management?  Could you provide some examples of environmental management systems or projects facilitated or designed by Sekitar?  How does Sekitar determine whether a company is ready to implement environmental management?

A significant and continuous increase in the number of local companies that subscribe to this international standard for environmental management is now evident.  This is mainly contributed via de-facto mechanism as the influx for the requirements seeps into the supply chain of businesses.  Apart from these market drives, the Malaysian Department of Environment has displayed prominent role as an enforcement agency that encourage environmental management amongst local enterprises in their numerous endeavor that instilled awareness on the consequence of severe environmental impact to natural resources, socio-economics, etc., including its associated liability for legal non-conformance.

Apart from these, other rationale that has influenced an enterprise to practise environmental management system is due to the presence of strong environmental requirements in products by customers in developed nation, especially the northern block.  The environmental awareness there in high enough to propel business compliance to their consumer demands.  Literally, as product that doesn’t bear any environmental tag (currently known as eco-labels) may lose consumer attention in the market competition due to this new market niche.

  

Q 3:  Does environmental or sustainable disclosure management improve shareholder value?  How can the tangible and intangible results of environmental management be measured?

 In the current ambience of global businesses a company that practices environmental management system receives greater market acceptance as the ISO 14001 is perceived to foster continual improvement in environmental performance.  The ultimate resultant of sound environmental management system is a dynamic and progressive efforts by enterprises to mitigate the inevitable impact onto the environment, thus, enhances rates of rehabilitation and conservation of the natural resources.  By virtue of this, the current shareholder values increase correspondingly as the advantage is usually accompanied with monetary savings from waste management and more efficient resource consumption.  Ironically the vast and past 18 years experience in this field has also taught us that, two identical companies which are certified ISO 14001 doesn’t display identical environmental performance.  For example, two printing-base companies producing printed carton-paper boxes, say of identical qualities by using the same printing machines and inks, and both enjoys the benefit of ISO 14001 certification advantage, displays two different levels of environmental performance. 

The first decided to recover valuable spent organic solvent by investing in a solvent recovery system as they embark in EMS.  The first 2-3 years after this purchase shows no positive values or recoverable monies over the previous cost for conventional hazardous waste disposal.  The second company decided to dispose their spent organic solvent via the legally stipulated method of hazardous waste disposal and pays on tonnage basis.  At this point we are able to observe the up stream chronology of resource conservation within which lies a measurable indicator of environmental performance.

The amount of final and non-useable residue (waste) from the Solvent Recovery System of the first company is approximately one twentieth in proportional volume comparison to the latter.  The rate of waste entry into the environment from the first company in measurable time and pollution load from dumping is approximately 25 to 30 times less frequent as compared to the latter.  There are several matrices, calculation and assumed constants involved in this particular scope of environmental performance measurement.  This example also illustrate how versatile and practical the EMS ISO 14001 is in instilling environmental values that generate favorable economic gains.

Q 4:  What elements do you look out for when conducting an environmental audit?

 Environmental Audit is a term used to describe an environmental verification process.  There are various types of environmental audits whereby the difference is determined by the aim, objective and scope of the audit interest, such as, Initial Environmental Review, Initial Certification Audit, Compliance Certification Audit, Surveillance Certification Audit, Internal EMS Audit, Legal Compliance Audit, Environmental Performance Evaluation, Life-Cycle Analysis and Internal Audit Verification Audit.

Nevertheless, the methodology remains somewhat similar and to assure this the International Organization for Standardization has promulgated within the ISO 14000 series a few other standards for Environmental Audit such as the ISO 14010, that standardize principle methods of environmental audit, ISO 14011 to standardize audit procedures and

ISO 14012 to standardize qualification and experience requirement of an environmental auditor.

In a certification audit, for instance, all the 17 elements in the ISO 14001 norms shall be sampled and viewed for compliance to justify the establishment of a functional EMS, in terms of manual, procedures and operational mechanism.

However, in a Legal Compliance Audit however, the audit standard (or reference) shall be all the legal requirements that the audited party subscribes.  Therefore the aim and purpose of an environmental audit has to be adequately defined in the planning stage to ensure its effectiveness.

Q 5:  Why does Sekitar choose to champion environmental management and sustainable development?  What have been Sekitar’s achievements to date?  How would you describe response by your target markets?  And what are your target markets and why?

As for us in Sekitar Synergy Sdn. Bhd. we believe and continually strive to instill local businesses to picture sustainable Development as their backdrop.  The reason being the fact that there is no absolute solution for environmental pollution. Having understood the dynamics of environmental pollutants, for instance, how the trace of mercury waste that we dispose in the form of blown fluorescent bulbs from our homes every year eventually come back to us in the form of our favourite dish for dinner, drove us to give true environmental advise to all our valued customers.  This analogy represents the real food chain and cycle and is our popular story-line in after-lunch hours of our public and in-house seminars on environmental subjects.  We have a substantial mileage in environmental management, almost 20 years now and our experience spans from Canada, Germany, Denmark, Austria, France, Belgium and the U.K and currently to dedicate our endeavor for the nation, local investments and companies investing in our country.  For more information about us, please feel free to visit us at www.sekitar.com or e-mail us for our company profiles.  Our most honourable achievement to date is to be selected as the Consulting Trainer for Petronas Corporate Health, Safety and Environment Department that was successfully completed last year where we’ve trained their experienced and highly qualified Internal Trainers and provided high-end training materials for their continual usage.  We use to think about ourself as lean but mean in the market because from the existing statistics, 95 percent of the total business influx flows via words of mouth of our clients.  Despite being a 100% Bumi Company registered with our local Ministry of Finance and the Human Resource Development Fund agency, we have so far only served the private businesses, from multi-national corporate manufactures to the local SMEs.  Naturally a stint in long-term government contract shall help expand our capacity as we already have capabilities!

To date we are embarking on integrated management system comprising of ISO 14001, ISO 18001 and ISO 9000 (2000), that is, on management system that encompasses environmental, health, safety and quality.  Yet, enabling all three ISO certification.