Contents

Company Overview (Mt. Baker Products):............................................................................. 2

Environmental Management Systems (EMS)...........................................................................2
EMS Under ISO 14001..................................................................................................... 2
1.

Commitment and Policy........................................................................................... 3

2.

Planning.............................................................................................................. 3

3.

Implementation...................................................................................................... 4

4.

Evaluation............................................................................................................ 4

5.

Review................................................................................................................ 4

Costs and Benefits of an EMS............................................................................................. 4

Potential Costs............................................................................................................. 4
Internal................................................................................................................... 4
External.................................................................................................................. 4
Potential Benefits......................................................................................................... 4
ISO 14001..................................................................................................................... 4
Interactions between the EMS Elements................................................................................. 5
Steps for gaining certification for an EMS.............................................................................. 5
From the perspective of given Case (Implementation of ISO 14001 in Mt. Baker Products).................6
Why ISO 14001? External Pressure...................................................................................6
Smartwood or FSC vs. ISO 14001..................................................................................... 6
Role of Aspects and Impacts in ISO 14001....................................................................6
Right and Wrong way to identify Environmental Aspects...................................................6
Who sets the Environmental goals and objectives for a company under ISO 14001?.......................7
Joshs major error in the implementation process...................................................................7
ISO Certificates and Their Benefits................................................................................... 7
ISO Certificates Importance in creating and maintaining global market share.............................7
Conclusion..................................................................................................................... 7
References..................................................................................................................... 8

Company Overview (Mt. Baker Products):

Mt. Baker Products, Inc. (MBP) manufactures plywood, hardwood, and other wooden products.
The company was founded in 1993 and is based in Bellingham, Washington. Mt. Baker Products,
Inc. operates as a subsidiary of Swaner Hardwood Company, Inc.
The company was turned around by investors in 1960 when it was facing huge losses. It was
later bought by Texas investors in 1992, who filed for Bankruptcy just after one year of buying.
The company was then bought over by Swaner Hardwood Company. Swaner privately owned a
company in forest product wholesaling.
Joshua Perry was appointed to manage the implementation of Environmental Management
System (EMS) in the company. He was responsible to help MBP get ISO 14001 certification
which was a push by MBP for green wood products for the following reasons
It was an idea of Rod Remington, President and GM of MBP to add credibility along with
SmartWood certification. The move was taken to enhance the company image in the eyes of
environmentally conscious customer base.
SmartWood certification (accredited by FSC) only ensured that MBP suppliers were
environmentally responsible, whereas ISO 14001 would provide for the entire Environment
Management System (EMS) for MBP.

Environmental Management Systems (EMS)

An Environmental Management System (EMS) is a set of processes and practices that enable an
organization to reduce its environmental impacts and increase its operating efficiency. The EMS
itself does not dictate a level of environmental performance that must be achieved; each
company's EMS is tailored to the company's business and goals.
An EMS helps a company address its regulatory demands in a systematic and cost-effective
manner. This proactive approach can help reduce the risk of non-compliance and improve health
and safety practices for employees and the public. An EMS can also help address non-regulated
issues, such as energy conservation, and can promote stronger operational control and employee
stewardship.

EMS Under ISO 14001

An EMS encourages a company to continuously improve its environmental performance. The
system follows a repeating cycle (see figure). The company first commits to an environmental
policy, then uses its policy as a basis for establishing a plan, which sets objectives and targets for
improving environmental performance. The next step is implementation. After that, the company
evaluates its environmental performance to see whether the objectives and targets are being met.
If targets are not being met, corrective action is taken. The results of this evaluation are then

reviewed by top management to see if the EMS is working. Management revisits the
environmental policy and sets new targets in a revised plan. The company then implements the
revised plan. The cycle repeats, and continuous improvement occurs.

The most commonly used framework for an EMS is the one developed by the International
Organization for Standardization (ISO) for the ISO 14001 standard. Established in 1996, this
framework is the official international standard for an EMS.
The five main stages of an EMS, as defined by the ISO 14001 standard, are described below:

1. Commitment and Policy

Top management commits to environmental improvement and establishes a company
environmental policy. The policy is the foundation of the EMS.

2. Planning
A company first identifies environmental aspects of its operations. Environmental aspects are
those items, such as air pollutants or hazardous waste that can have negative impacts on
people and/or the environment. A company then determines which aspects are significant by
choosing criteria considered most important by the company. For example, a company may
choose worker health and safety, environmental compliance, and cost as its criteria. Once
significant environmental aspects are determined, a company sets objectives and targets. An
objective is an overall environmental goal (e.g., minimize use of chemical X). A target is a
detailed, quantified requirement that arises from the objectives (e.g., reduce use of chemical
X by 25% by September 1998). The final part of the planning stage is devising an action plan
for meeting the targets. This includes designating responsibilities, establishing a schedule,
and outlining clearly defined steps to meet the targets.

3. Implementation
A company follows through with the action plan using the necessary resources (human,
financial, etc.). An important component is employee training and awareness for all
employees. Other steps in the implementation stage include documentation, following
operating procedures, and setting up internal and external communication lines.

4. Evaluation
A company monitors its operations to evaluate whether targets are being met. If not, the
company takes corrective action.

5. Review
Top management reviews the results of the evaluation to see if the EMS is working.
Management determines whether the original environmental policy is consistent with
company values. The plan is then revised to optimize the effectiveness of the EMS. The
review stage creates a loop of continuous improvement for a company.

Costs and Benefits of an EMS

Potential Costs
Internal
Staff (manager) time
Other employee time
External
Potential consulting assistance
Outside training of personnel

Potential Benefits

Improved environmental performance

Enhanced compliance
Pollution prevention
Resource conservation
New customers/markets
Increased efficiency/reduced costs
Enhanced image with public, regulators, lenders, investors
Employee awareness of environmental issues and responsibilities

ISO 14001
ISO 14000 is a series of environmental management standards developed and published by the
International Organization for Standardization (ISO) for organizations. The ISO 14000 standards
provide a guideline or framework for organizations that need to systematize and improve their
environmental management efforts.

The very first two standards, ISO 14001:2004 and ISO 14004:2004 deal with environmental
management systems (EMS). ISO 14001:2004 provides the requirements for an EMS.ISO
14004:2004 gives general EMS guidelines. The other standards and guidelines in the family
address specific environmental aspects, including: labelling, performance evaluation, life cycle
analysis, communication and auditing.
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.

Interactions between the EMS Elements

Steps for gaining certification for an EMS

Apply to accredited conformity assessment body for ISO 14001 certification
External comprehensive documentation review & preliminary audit to evaluate readiness
for certification
Implement improvements from documentation review & preliminary audit
Certification audit
Management review, & implementation of further improvements
Plan corrective action in response to any nonconformities raised
Certification granted for 3 years
Surveillance audits initially 6-monthly then annually

Annual management reviews

Triennial recertification audits.

From the perspective of given Case (Implementation of ISO 14001 in

Mt. Baker Products)
Why ISO 14001? External Pressure
The area surrounding the old mill had been improved with upscale development and the property
owners did not want to renew MPSs expiring lease. ISO 14001 certification would promise a
clean environmental bill of health in turn helping the lease holders decide towards renewing the
lease. Being certified by a third-party registrar as compliant would ensure the customer the MBP
was environmentally responsible.

Smartwood or FSC vs. ISO 14001

A SmartWood Certification assures customers the chain-of-custody standards for forestry
certification programs worldwide are followed. The importance of FSC (Forest Stewardship
Council) certification to wood processors, assures product suppliers were managed in an
environmentally friendly manner.
FSC - This incentive brings direct benefits to the forest, such as protecting biodiversity,
indigenous peoples' rights, workers rights, and areas of significant environmental or cultural
importance.
ISO 14001 are the international standards for evaluating a company's environmental
management systems (EMS'S) by third party registrars, assuring the customer that MBP's
suppliers are environmentally responsible. SmartWood - As the world's leading Forest
Stewardship Council (FSC) forest management certifier, SmartWood sets the international gold
standard for credibility in auditing environmentally and socially responsible forestry.

Role of Aspects and Impacts in ISO 14001

You must identify the aspects that need to be evaluated for the outcome i.e. significant impact on
the environment. Impacts are the outcome of the aspects.
Example: Exhaust from Trucks is the Impact of owning a large fleet of trucks.

Right and Wrong way to identify Environmental Aspects

The right way to identify environment aspects was to develop lists of potential environmental
impacts that could affect each environment aspect. The wrong ways was to use a standard form
and job descriptions as the control for the EMP's.

Who sets the Environmental goals and objectives for a company under ISO 14001?
Top management commits to environmental improvement and establishes a company
environmental policy. A company sets objectives and targets. An objective is an overall
environmental goal (e.g., minimize use of chemical X).
A target is a detailed, quantified requirement that arises from the objectives (e.g., reduce use of
chemical X by 25% by September 1998).

Joshs major error in the implementation process

Josh was unfamiliar with the mill operations, and without the detailed needed detailed
knowledge for designing the programs, Josh wrongly used job descriptions to identify the
operational control. He could not supervise and complete the training sessions planned for
guidance for the workers and operational control for the EMP.

ISO Certificates and Their Benefits

Cost savings - International Standards help optimize operations and therefore improve the
bottom line
Enhanced customer satisfaction - International Standards help improve quality, enhance
customer satisfaction and increase sales
Access to new markets - International Standards help prevent trade barriers and open up
global markets
Increased market share - International Standards help increase productivity and competitive
advantage
Environmental benefits - International Standards help reduce negative impacts on the
environment

ISO Certificates Importance in creating and maintaining global market share

Acquiring greater market share through the competitive advantage of a better image
often, it is a prerequisite for winning an important customer
competitors have a certificate, using it as a competitive advantage
a prerequisite for public contracts
ensuring verifiable legal compliance
making implementation and system processes in the company more transparent and
stabilized
reducing the need of operative interventions and problem solving
Defining responsibilities and competencies within the company.

Conclusion
An environmental management system takes time and commitment from the entire organization.
Effective running of an EMS will provide ongoing environmental benefits, cost savings and
contribute to building an attractive work place culture.

ISO certification is a useful tool to add credibility to your product or service to meet customer
expectations. ISO certification is provided by external certification bodies by evaluating the
products against ISO standards. International Standards bring technological, economic and
societal benefits. Conformity to International Standards helps reassure consumers that products
are safe, efficient and good for the environment.
The benefits of having ISO 14001 certification are mainly realized by large organizations, as
Small to Medium Enterprises (SMEs) have a smaller turnover and thus a correspondingly small
return on the costs of certification.
Although a fully certified ISO EMS may not be suitable for smaller organizations, it does
provide guidelines that assist organizations to consider all the relevant issues, and thus gain the
most benefit from their EMS, even without certification. SMEs can therefore use ISO 14001 as a
model for designing their own EMS.
However, larger organizations may find certification more valuable when considering the
potential trade and market advantages of an internationally recognized and certified EMS. This
was a significant factor for companies seeking certification under the ISO 9000 quality assurance
standards, and is likely to be a factor in decisions regarding ISO 14001 certification.

References
1. http://www.epa.gov/ems/
2. http://water.epa.gov/polwaste/wastewater/Environmental-Management-System-ISO14001-Frequently-Asked-Questions.cfm
3. http://en.wikipedia.org/wiki/Environmental_management_system
4. http://www.environment.gov.au/node/20494