LESSON 1

BUSINESS AND THE ENVIRONMENT

TOPICS
1. Relationship between Businesses and the Environment
2. Environmental Issues
3. Environmental Certificate of Compliance (DENR)

LEARNING OUTCOMES
At the end of the lesson, you should be able to:
1. Critically discuss the relationship between businesses and the
environment;
2. Identify environmental issues/concerns; and
3. Discuss what ECC is and how it is availed.

TOPIC 1: RELATIONSHIP BETWEEN BUSINESSES AND THE ENVIRONMENT

Business is closely related with the environment. There is a constant “give and take”
relationship between businesses and the environment. The business receives
information, technology and inputs from the environment and gives it back in form of
outputs (goods and services).

If these outputs are accepted by the environment, the environment-business

interaction continues but if they are unacceptable to the environment, firms need to
adapt to the environmental requirements and have to change their operations.

Businesses need to have the Environmental Management System (EMS). EMS is a

set of processes and practices that enable an organization to reduce its environmental
impacts and increase its operating efficiency. This site provides information and
resources related to EMS for small businesses and private industry, as well as local, state
and federal agencies.

EMS helps an organization achieve its environmental goals through consistent

review, evaluation, and improvement of its environmental performance. The
assumption is that this consistent review and evaluation will identify opportunities for
improving and implementing the environmental performance of the organization. The
EMS itself does not dictate a level of environmental performance that must be achieved;
each organization’s EMS is tailored to the its own individual objectives and targets.

An EMS helps an organization 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. Basic Elements of an
EMS include the following:
 Reviewing the organization’s environmental goals;
 Analyzing its environmental impacts and legal requirements;

1
  Setting environmental objectives and targets to reduce environmental impacts
and comply with legal requirements;
 Establishing programs to meet these objectives and targets;
 Monitoring and measuring progress in achieving the objectives;
 Ensuring employee’s environmental awareness and competence;
 Reviewing progress of the EMS and making improvements.

TOPIC 2: ENVIRONMENTAL ISSUES

Over the years, the environment has been changing, and not for the better. The
world today faces big environmental problems. The exploitation of the resources by all
forms of businesses resulted to various environmental issues and concerns.

The following are the biggest environmental problems:

1. Climate Change – means the difference in the Earth’s global climate or in

regional climates over time. Climate change is now a major concern especially in
colder countries. Climate change can be warmer or colder. This includes global
warming and global cooling.

2. Transportation – also contributes to a range of other environmental issues, such

as the destruction of natural habitats and increase in air pollution.

3. Natural Resource Use – Increased resource use is linked to a number of other

environmental issues, such as air pollution and population growth. Over time,
the depletion of these resources will lead to an energy crisis, plus the chemicals
emitted by many natural resources are strong contributors to climate change.

4. Lowered Biodiversity – Continued human activities and expansion has led to

lower biodiversity. A lack of biodiversity means that future generations will have
to deal with increasing vulnerability of plants to pests and fewer sources of fresh
water.

5. Air Pollution – is becoming an increasingly dangerous problem, particularly in

heavily-populated cities. The World Health Organization (WHO) has found that
80% of people living in urban areas are exposed to air quality levels deemed unfit
by the organization.

6. Acid Rain – comes as a result of air pollution, mostly through chemicals released
into the environment when fuel is burned. Its effects are most clearly seen in
aquatic ecosystems, where increasing acidity in the water can lead to animal
deaths. It also causes various issues for trees. Though it doesn’t kill trees directly,
acid rain does weaken them by damaging leaves, poisoning the trees and limiting
their available nutrients.

7. Ozone Layer Depletion – is caused by the release of chemicals, primarily chlorine

and bromide, into the atmosphere. A single atom of either has the potential to
destroy thousands of ozone molecules before leaving the stratosphere. Ozone
depletion results in more UVB radiation reaching the Earth’s surface. UVB has
been linked to skin cancer and eye disease, plus it affects plant life and has been
linked to a reduction of plankton in marine environments.

2
 8. Water Pollution – can have harmful effects outside of contamination of the
water we drink. It also disrupts marine life, sometimes altering reproductive
cycles and increasing mortality rates.

9. Population Growth – The planet’s population grows by 1.13% per year, which
works out to 80 million people. This results in a number of issues, such as a lack
fresh water, habitat loss for wild animals, overuse of natural resources and even
species extinction. The latter is particularly damaging, as the planet is now losing
30,000 species per year.

10. Deforestation – The demands of an increasing population has resulted in

increasing levels of deforestation. Current estimates state that the planet is
losing 80,000 acres of tropical forests per day. This results in loss of habitat for
many species, placing many at risk and leading to large-scale extinction.

The consequence that humankind is having on the environment is becoming ever-

more important. Through our actions we are extinguishing habitats and threatening the
lives of future generations. At this point there is no denying the fact that our
environment is changing. The crucial is that they are all important challenges that need
to be confronted. Human beings must observe that the earth has rights. Humans must
make the environment as a priority.

TOPIC 3: ENVIRONMENTAL CERTIFICATE OF COMPLIANCE (DENR)

The Environmental Certificate of Compliance (ECC) refers to the document

issued by the Department of Environment and Natural Resources (DENR) that allows the
project to proceed to the next stage of project planning, which is the acquisition of
approvals from other government agencies and LGUs, after which the project can start
implementation.

This certificate shows that the planned project or undertaking will not cause a
significant negative impact on the Philippine environment. Any project in the Philippines
that poses a potential environmental risk (such as agriculture projects, mining, and
construction) is required to secure an ECC from the Department of Environment and
Natural Resources – Environmental Management Board (DENR-EMB).

Environmental Certificate of Compliance (ECC) Requirements

1. Geotagged photographs of project site (taken for last 30 days)

2. Topographic Map of impact/affected areas (at least 1 km from the project
boundaries
3. Certification from LGU on the compatibility of proposed project with existing
land use plan
4. Site Development and/or Vicinity map signed by registered professionals
5. Project/Plan layout signed by registered professionals
6. Schematic Diagram of wastewater treatment facility
7. Schematic Diagram of Air Pollution Control Facility
8. Organizational Chart in charge on environmental concerns
9. Proof of authority over the project site (land title, lease contract, deed of
absolute sale, etc.)
10. Affidavit of No Complaint

3
Environmental Certificate of Compliance (ECC) Application Procedure

1. Conduct Impact Assessment and Environmental Management Plan;

2. Submit application letter to DENR-EMB for review and subsequent site
inspection;
o Approval and ECC is issued if all requirements are satisfied and no
apparent serious environmental damage shall result from the project
o In cases where DENR-EMB finds that an ECC is not applicable, a
Certificate of Non-Coverage (CNC) shall be issued confirming that the
proposed project is not part of the Environmental Impact Statement (EIS)
and poses no environmental threat.

4
 LESSON 2
INTRODUCTION TO EMS

TOPICS
1. Definition
2. Why an Organization needs an EMS?
3. EMS Goals
4. EMS Principles
5. EMS Benefits
6. EMS Framework and Main Steps
-PDCA Cycle

LEARNING OUTCOMES
At the end of the lesson, you should be able to:
1. Explain the need for formulating an EMS;
2. Identify and expound the goals, principles and benefits of EMS; and
3. Illustrate EMS framework and its relationship with PDCA Cycle.

TOPIC 1: DEFINITION

An Environmental Management System (EMS) is a framework that helps an

organization achieve its environmental goals through consistent review, evaluation, and
improvement of its environmental performance. The assumption is that this consistent
review and evaluation will identify opportunities for improving and implementing the
environmental performance of the organization. The EMS itself does not dictate a level
of environmental performance that must be achieved; each organization’s EMS is
tailored to the its own individual objectives and targets.
An EMS is a systematic approach for incorporating energy and environmental goals
and priorities (such as energy use and regulatory compliance) into routine operations.

An EMS is a voluntary management tool, which aims at the improvement of an

organization’s environmental performance through an integrated and systematic
approach to dealing with environmental issues.

TOPIC 2: WHY AN ORGANIZATION NEEDS AN EMS?

An EMS helps an organization 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

5
EMS can also help address non-regulated issues, such as energy conservation, and can
promote stronger operational control and employee stewardship.
An environmental management system helps organizations identify, manage,
monitor and control their environmental issues in a “holistic” manner.
There are many reasons why an organization should take a strategic approach to
improving its environmental performance. Users of the standard have reported that ISO
14001 helps:

 Demonstrate compliance with current and future statutory and regulatory

requirements
 Increase leadership involvement and engagement of employees
 Improve company reputation and the confidence of stakeholders through
strategic communication
 Achieve strategic business aims by incorporating environmental issues into
business management
 Provide a competitive and financial advantage through improved efficiencies and
reduced costs
 Encourage better environmental performance of suppliers by integrating them
into the organization’s business systems.

TOPIC 3: EMS GOALS

Environmental management goals are quite specific. Examples of EMS goals may
include:

 To increase compliance;
 To reduce waste;
 To improve the quality and availability of solid waste services;
 To increase awareness and transparency;
 To reduce environmental and health risks related to waste management;
 To utilize the economic potential of the sector;
 To eliminate or reduce the occurrence of algal blooms;
 To improve livestock health and productivity;
 To minimize the occurrence of fish kills; and
 To increase biodiversity and ecosystem health.

Compliance is the act of reaching and maintaining minimal legal standards. By not
being compliant, companies may face fines, government intervention, or may not be
able to operate. Waste reduction goes beyond compliance to reduce environmental
impact.
6
 TOPIC 4: EMS PRINCIPLES

There are some guiding principles of environmental management. These principles

are helpful in environmental decision making.

1. Polluter Pays Principle (PPP)

Many economists have suggested that firms discharging polluting

effluents to the environment should somehow be made to pay a price for such
discharges related to the amount of environmental damage caused.

OECD has suggested the Polluter Pays principles (PPP) as a general basis
for the environmental policy. It states that if measures are adopted to reduce
pollution, the costs should be borne by the polluters. According to the OECD
Council, “The principle to be used for allocating costs of pollution prevention and
control measures to encourage rational use of scarce environmental resources
and to avoid distortions in international trade and investment is the so-called
Polluter Pays Principle.” The essential concern of this principle is that polluters
should bear the costs of abatement without subsidy.

2. The User Pays Principle (UPP)

It is considered as a part of the PPP. The principle states that all resource
users should pay for the full long-run marginal cost of the use of a resource and
related services, including any associated treatment costs. It is applied when
resources are being used and consumed.

3. The Precautionary Principle (PP)

The main objective of the precautionary principle is to ensure that a

substance or activity posing a threat to the environment is prevented from
adversely affecting the environment, even if there is no conclusive scientific
proof of linking that particular substance or activity to environmental damage.
The words ‘substance’ and ‘activity’ are the result of human intervention.

4. Principle of Effectiveness and Efficiency

It is essential that efficiency of resources use may also be accomplished

by the use of policy instruments that create incentive to minimize wasteful use.
It also applies to various issues of environmental governance by streaming
processes and procedures in order to minimize environmental costs.

5. The Principle of Responsibility

It is the responsibility of all persons, corporations and states to maintain

the ecological processes. Further, access to environmental resources carries
attendant responsibilities to use them in an ecological sustainable economically
efficient and socially fair manner.

7
 6. The Principle of Participation

It is the duty of all persons to participate in collectively environmental

decision making activities. Some participation areas are related to the use of
trees and other plants, minerals, soils, fish and wildlife for purposes such as
materials and food as well as for consumptive and non-consumptive recreation.
The second issue concerns solid waste i.e. garbage, construction and demolition
materials and chemically hazardous waste etc. The third issue of participation is
related to pollution generating activities.

7. The Principle of Proportionality

The principle of proportionality is based on the concept of balance. A

balance is to maintain between the economic development on the one hand and
environmental protection on the other hand. It cannot be disputed that no
development is possible without some adverse effects on ecology. Therefore, it
is essential to adjust the interest of the people as well as the necessity to
maintain the environment. Moreover, comparative hardships have to be
balanced and benefits to a larger section of the people have to be maintained.
(https://www.yourarticlelibrary.com/economics/environmental-economics/
environmental-management-7-basic-principles-of-environmental-
management/39722)

TOPIC 5: EMS BENEFITS

Multiple studies have been performed to examine the benefits of the EMS
approach. The evidence indicates that the systems approach to managing
environmental issues that is fundamental to an EMS causes a deep, cultural shift in how
the organization addresses these issues. Every employee must incorporate
environmental considerations into their daily job functions. Thus the documented
benefits of implementing an EMS range from improved compliance with environmental
regulations (and often a reduction in fines) to increased management efficiency, and
even a reduction in waste production and energy consumption. The systematic EMS
approach to the daily management of energy and environmental objectives leads to
benefits that can only be created by an integrated effort across the entire organization,
and are typically difficult to foresee prior to the implementation of the EMS.

The following are potential benefits of EMS:

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

8
 TOPIC 6: EMS FRAMEWORK AND MAIN STEPS – PDCA CYCLE

EMS is a structured framework for managing an organization’s significant

environmental impacts.

An EMS encourages an organization to continuously improve its environmental

performance. The organization 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
organization 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 the top management to see if the EMS is
working. Management revisits the environment policy and sets new targets in a revised
plan. The company then implements the revised plan. The cycle repeats, and continues
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
which is based on the Plan-Do-Check-Act methodology. The five main stages of an EMS,
as defined by the ISO 14001 standard are described below:

https://www.iso.org/standard/60857.html

9
 1. Commitment and Policy – Top management commits to environmental
improvement and establishes the organization’s policy. The policy is the foundation of
the EMS.
2. Planning – An organization first identifies environmental aspects of its operations.
An organization then determines which aspects are significant by choosing criteria
considered most important by the organization.
3. Implementation – An organization follows through with the action plan using
necessary resources (human, financial, etc.).
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 the organization’s 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.

PDCA Cycle
The US EPA defines an EMS as “a set
[or system] of processes and practices that
enable an organization to reduce its
environmental impacts and increase its
operating efficiency.” This focus on
processes and practices is common to all
EMSs, which are generally founded on the
“Plan, Do Check, Feedback” cycle of
continuous improvement.

The “Plan, Do, Check, Act” (or

Feedback) Cycle was originally illustrated by
Walter Shewhart for the continuous

improvement of product quality, and https://www.iso.org/standard/60857.html

[most notably] implemented by W.
Edwards Deming in post-WWII Japan.

All EMS models are based on a “Plan, Do, Check, Act (Feedback)” cycle that is
primarily concerned with the process an organization uses to incorporate environmental
concerns into routine operations and not the operations themselves.

10