GOOD REASONS FOR EMAS

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1 GOOD REASONS FOR EMAS German EMAS Advisory Board

2 Editors: Veit Moosmayer, Esther Zippel, Mario Lodigiani, Claudia Koch Office of the German EMAS Advisory Board Gertraudenstr Berlin Germany Tel: +49 (0 ) Fax: +49 (0 ) Websites Text and Layout: Claudia Koch, Mario Lodigiani and akzente kommunikation und beratung, München Translation: Ricarda Schröder, Molly Hall and Mario Lodigiani Print: Oktober Druck, Berlin Illustrations: photocase.com Status: November st Printing / English Edition, 3,000 Copies With generous support of the German Federal Environment Agency and German Federal Environment Ministry

3 CONTENT PREFACE... 2 MORE FUTURE WITH EMAS MORE CLIMATE PROTECTION... 8 MORE RESOURCE EFFICIENCY MORE LEGAL CERTAINTY MORE SALES OPPORTUNITIES MORE EMPLOYEE INVOLVEMENT MORE CREDIBILITY MORE SUSTAINABILITY CONCLUDING COMMENTS FURTHER INFORMATION ABOUT EMAS

4 PREFACE In 2009, in the middle of the worldwide financial crisis, the very first (German) edition of this brochure questioned whether enterprises and companies face more important matters to worry about than environmental protection and, if anything, implementing a sophisticated environmental management. Two concerns lie behind this: companies that are already committed could reduce their effort in order to take pressure off a voluntary cost unit such as environmental management and - despite of all possible savings - potential newcomers would rather keep their hands off environmental management in this situation. Germany got off lightly through the crisis and so did the number of EMAS-participants. The apprehended wave of exits stayed away. However, it was also not possible to substantially restock the EMAS-register. In January 2010, after a long process of finding compromises both within the EC and the Member States, the revised EMAS-Regulation (EMAS III) came into effect. Embedded into the EC s Sustainable Consumption and Production and Sustainable Industrial Policy (SCP/SIP) Action Plan, Member States are asked for intensified promotion of EMAS and the support of the voluntary implementation of EMAS - particularly in small organisations. Furthermore, EMAS went global: registrations are now possible even outside of the European Economic Area. The examination of pressing environmental topics is not an obsolescent model. On the contrary, it belongs more than ever to social responsibility - if not to the existential task of organisations and companies. This is shown by ongoing worldwide discussions about the increasingly noticeable constraints at the commodity market, the impacts of undamped loss of biodiversity - despite of all appeals, and particularly about the energy supply of the future. There is still enough to do. Due to the fact that this brochure has been published the third time in German and the first time in English, I am absolutely positive that all stakeholders, which include economy, administration and politics, will increasingly appreciate the strengths of EMAS and use them in order to systematically improve environmental performance and legal certainty as well as credibly communicating these achievements to the public. The citations from the environmental statements mentioned in the brochure have been updated by current examples. The text has been editorially updated. Berlin, November 2011 Dr. Michael Schemmer, Chairperson of the German EMAS Advisory Board 2

5 MORE FUTURE WITH EMAS The requirements that EMAS sets for participating organisations are high. It is precisely for this reason that an environmental management pursuant to this European standard represents a meaningful quality feature. Improved environmental performance, more credibility, better legal compliance and higher competiveness are the rewards for voluntary participation and the basis for meeting future economic and ecologic challenges. The Development of EMAS EMAS started with the initiative of several German companies, most notably medium-sized companies that agreed in the 1980s, not merely to implement the minimal environmental obligations, but to use a new tool for developing an overall environmental management scheme for both the processes and products. The European Commission picked up this private sector approach and enacted the so-called EC Eco-Audit Regulation in 1993 with focus on the manufacturing industry. Thus, EMAS - the first European certifiable environmental management scheme - was born. In 1995, the German Environmental Audit Act (UAG) incorporated supervision, registration and licensing in accordance with the requirements of the EMASregulation. Some of the first companies registered as participating organisations by the end of that year. One can find the following companies in the German EMAS register which still employ EMAS to keep their company fit (www.emas-register.de): ORGANISATION 1st VALIDATION Viessmann Werke GmbH & Co., Allendorfer Werke Volkswagen Aktiengesellschaft, Werk Emden Audi AG, Neckarsulm Märkisches Landbrot GmbH, Berlin Bombardier Transportation GmbH, Locomotives, Kassel Sedus Stoll Aktiengesellschaft, Waldshut-Tiengen Demmel Aktiengesellschaft, Scheidegg Georg Hipp OHG, Pfaffenhofen Daimler AG, Mercedes-Benz Werk Kassel AESCULAP AG, Tuttlingen Nordzucker AG, Werk Clauen, Hohenhameln Nordzucker AG, Werk Schladen Table: The first EMAS-validated organisations One year later in 1996 ISO 14001, a worldwide applicable environmental management standard, came into effect. Nevertheless, the number of EMAS participants increased until it reached its peak at approximately 4,000 organisations at the end of EMAS was revised in 2001 to integrate ISO and to allow participation by all economic sectors. The 2001 revision did not result in the growth expected, however. The number of EMAS participants decreased slightly until Since 2004 the number of EMAS organisations is again on the upswing in Europe. In the last years, the sectors participating in EMAS have shifted in Germany. The strongest growth has been in the service sector and public corporations. Nevertheless, the manufacturing sector with about 700 organisations represents more than half of the EMAS participants and has by far the highest employment rate of all sectors. The Objective: Continuous Improvement of Environmental Performance Through EMAS, the EU Commission seeks to motivate private and public organisations to improve their environmental performance on a voluntary, continuous and systematic basis. The starting point is an initial environmental review or stocktaking, which captures, analyses and assesses all environmental aspects of the company s activities and all applicable legal requirements. The appropriate goals, measures and responsibilities for the organisation s environmental management system are outlined based upon this initial environmental review. In order to ensure that the environmental management system is not an one-time event, the system is established and documented to provide for a dynamic process for continuous improvement. In the so called environmental statement, the participating organisation describes the environmental management system in comprehensive detail and is made available to the public. The last step is validation of the management system by a licensed and independent environmental verifier. After the validation and registration in the EMAS-register, the organisation is authorised to use the EMAS-Logo. 3

6 What the Future Demands Experiences show that EMAS organisations have tangible benefits for meeting future challenges because of the systematic and transparent approach they take with EMAS. 1 CLIMATE PROTECTION: Combating the world s advancing climate change is one of the most urgent tasks of our time. Whether for the improvement of energy efficiency i.e. energy management, reduction of greenhouse gases - or merely changing one s own behaviour: EMAS is an effective tool in order to provide for climate protection. More Climate Protection, see page 8 2 RESOURCE EFFICIENCY: A credible data basis is essential to initiate a continuous improvement process and thus reducing consumption of raw and auxiliary materials, as well as reducing waste production. EMAS therefore decreases costs, an important goal at any time. More Resource Efficiency, see page 11 3 LEGAL CERTAINTY: the importance of complying with environmental law has increased substantially in recent years. Internally, legal compliance prevents consequential losses. Externally, legal compliance prevents damage to the organisation s reputation. The confirmation of the organisation s legal compliance is a significant added value provided by the EMAS process. Thus, under EMAS, legal compliance increases and liability risks are reduced. More Legal Certainty, see page 13 4 ENVIRONMENTAL-ORIENTATED PROCUREMENT: Both for public tender procedures as well as tenders of other organisations and companies, an EMAS certificate demonstrates a particular systematic environmental engagement. Although EMAS does not guarantee new orders, it increases the chances for acquisition of new projects. More Sales Opportunities, see page 16 5 EMPLOYEE INVOLVEMENT: EMAS is a system that depends upon input from top management as well as blue-collar workers. In addition to the integration of all management levels, including top management, EMAS emphasises on giving all employees the opportunity for active participation. This ensures that existing know-how as well as potential new ideas will be used to their best advantage. More Employee Involvement, see page 19 6 TRANSPARENCY AND CREDIBILITY: Today s increasingly aware and critical public demands greater insight into enterprises and organisations operational activities. With a validated environmental statement, EMAS participants gain credibility as one can depend upon the content and data in their statements. Moreover, the EMAS-Logo serves as visible proof of theorganisation s engagement for the public. More Credibility, see page 22 7 SUSTAINABILITY: Besides the ecologic aspects of economic activities, social and societal effects increasingly receive more attention. EMAS-verified organisations have an excellent foundation for such enhancements - including the expansion from an environmental to a comprehensive sustainability management. More Sustainability, see page 25 EMAS is more up to date than ever. As a modern management and audit system, EMAS helps participating organisations to prepare for the future by increasing their innovation ability, decreasing environmental impacts and costs and by bolstering their public reputation. With EMAS, enterprises sharpen their awareness of their activities impacts and can identify improvement potentials and eliminate weaknesses. Central to the improvement of environmental performance is the continuous process, which EMAS initiates and maintains and which is approved by an external environmental verifier with annually-updated environmental statements and revalidated in regular validation circles. 4

7 The Benefit of Voluntary Participation Organisations, which show voluntary engagement, demonstrate commitment, exceed regulatory requirements and allow verification reap the benefits. Legislative and enforcement authorities of most German federal states provide registered EMAS-organisations with a great deal of administrative and/or economic relief, e.g. in the area of emission control as well as waste and water regulations. In many places, there is organisational and financial support for the implementation of an EMAS system. EMAS III A new edition of the EMAS regulation came into effect in The EU Commission hoped that the revision would improve the attractiveness of EMAS and increase the number of participating EMAS organisations from approximately 7,000 sites registered in 2009 to 23,000 sites by The focal point of the revision was administrative relief for small and medium-sized enterprises. Additionally, standardised core indicators were established and reference documents are developed to provide tips and advice for specific economic sectors and to improve the accessibility of environmental performance. Furthermore, the revision made it possible for sites outside the EU to participate. EMAS for Big and Small EMAS is not just for big companies. In fact, statistics show the opposite. Of the approximately 1,300 registered organisations in Germany, less than a third (29%) have more than 250 employees, 25% have between 51 and 250 employees, and at least 46% employ less than 50 people. So clearly, a small enterprise or small organisation can fulfil the requirements of the EMAS regulation. They are assisted by several special SME promotionprogrammes and methods such as EMASeasy. PERCENTAGE DISTRIBUTION OF EMAS ORGANISATIONS ACCORDING TO NUMBER OF EMPLOYEES IN GERMANY (2011) 11 % 18 % 46 % Employees Below ,000 More than 1, % Graph: UGA-GS, Data: 5

8 VOICES FOR EMAS In November 1997 we completed our first environmental audit according to EMAS. We can now look back on ten years of EMAS. While some felt some doubt at the beginning about the additional expenditures involved, since then the EMAS system has been well-integrated and has contributed substantially to the development of our corporate culture in our work.«aluminium Norf GmbH, Neuss Environmental Statement 2007 We are only at the beginning of our efforts to achieve a highly professional standard for our enterprise s environmental protection. However, we have now the appropriate managementtools for a continual improvement process at our disposal.«pilgerhaus Weinheim Environmental Statement 2008 When the European Community launched the corporate environmental audit for the manufacturing industry with the Eco-Audit in June 1993 and the German government in Bonn enacted the Environmental Audit Act, Studiosus began to assess whether and to what extent the environmental management system was appropriate for a travel service or even for service providers as a whole. Today, the environmental management system is an integral part of the DIN EN ISO and 9001 standards, and of the comprehensive EMAS-certified Studiosus integrated management system.«studiosus Reisen, Munich Environmental Statement 2008 From its beginning as a pilot project in 1996 for the WVV-group, the environmental management system has been proven of value during the last years as a valuable instrument in support of employees. The assessment of environmental impacts in the planning, realisation and in operation is also in the future an essential component of the plant operations. The installed EMAS environmental management system supports this process and is thereby a valuable operational instrument for all. «Müllheizkraftwerk Gattingerstraße der Stadtwerke Würzburg AG Environmental Statement

9 When one considers our successful efforts in meeting the target profile set by EMAS between 1998 and the present, one sees a proven track record of success combined with positive developments in CO2-accounting. As one considers the documentation in detail, it provides valuable tips for new fields of work with the intention of further optimisations.«mainau Island Updated Environmental Statement 2008 Effective organisational structures pursuant to EMAS support sustainable corporate activities in planning, logistics and production. They were established for the entire company and specified and implemented for each site.«volkswagen Sachsen GmbH, Fahrzeugwerk Zwickau and Motorenwerk Chemnitz Joint Environmental Statement 2008 Based on the positive experiences of implementing an environmental management system according to EMAS, we want to promote the environmental performance improvements by means of EMAS at other companies and service providers. To begin with, already certified companies have been contacted and we suggested a mutual appearance.«university City of Tübingen, Disposal Management EBT Environmental Statement 2007 We live a worldwide occupational health, safety and environmental management system that we are steadily improving. Also the sites outside of Europe such as in the USA, Brazil, China, India and Korea have been verified in accordance with the strict EMAS-Regulation. They have successfully passed the test, too.«schaeffler Group, Schweinfurt Environmental Statement 2008 Bombardier Transportation plans the transition of all of its sites from ISO to EMAS certification as soon as EMAS becomes a globally valid standard.«bombardier Sustainability Report

10 1 MORE CLIMATE PROTECTION EMAS-registered organisations are better equipped to respond to the challenges that have accompanied climate change as EMAS requires implementation of a continuous improvement process for increasing energy efficiency. Moreover, the collected data about energy consumption and emissions make it easier to meet and comply with new reporting requirements. A system set in place pursuant to EMAS helps to increase operational energy efficiency and thus decreases both emissions of green house gases and expenses. This is due to the fact that EMAS systems are designed to systematically identify and unlock potential savings. For this reason, EMAS is an important tool for operational climate protection. EMAS and Emissions Trading EMAS is set up to coordinate with emissions trading within the European Union. Pursuant to the German Greenhouse Gas Emissions Trading Act (Treibhausgas- Emissionshandelsgesetz TEHG), an environmental verifier is authorised to verify emission statements for companies within the commercial sector for which the verifier is licensed. Furthermore, environmental verifiers may verify the necessary allocation applications. The EU-requirements provide that an organisation s status as an EMAS participant shall be taken into consideration during the review of the organisation s emissions data. The Examination Guideline for the verification of allocation applications and emission reports of the German Emissions Trading Authority (DEHSt) states as follows: The expert can assume that facilities which are verified according to EMAS are equipped with an appropriate environmental management system, have internal guidelines for collection and assessment of their environmental impacts, and moreover, that the data of the verified environmental statement have been validated by an environmental verifier. The German Emissions Trading Authority (DEHSt) reserves the right to occasionally spot check the data of any organisation s environmental statements, however. Reporting According to E-PRTR European law requires that operational emissions data must be made directly available to the public. For that reason, the European Pollutant Release and Transfer Register (E-PRTR) was established to provide information about all pollutants emitted from industrial companies. The requirement to report covers companies that operate in the following sectors: power generation, metal, minerals processing, chemistry, paper, food as well as landfills, sewage treatment plants and agricultural enterprises with intense animal husbandry. European companies in the applicable sectors made disclosures for the first time in 2008 for 2007 emissions data in cases where these entities had exceeded the allowed threshold values of pollutants for their economic sectors. This might include, for example, emissions of over 100 million kilograms of carbon dioxide (CO 2 ) per year, or emissions of over 100,000 kilograms of methane (CH 4 ) annually. This information has been publically available since the summer of 2009 via the internet at General information can beobtained at EMAS-registered organisations that belong to one of the sectors mentioned above may have less difficulty with emissions reporting because of the preliminary work already completed with EMAS. The Guidance Document for the implementation for the European PRTR published by the European Commission reads as follows: If a quality assurance system such as ISO 9001; or an environmental management system such as EMAS or ISO or other analogous national systems is already being used by the facility, the reporting of the E-PRTR data might be included within that system to help to ensure the highest possible quality of the data. 8

11 For transferring the data, the German government and the German federal states have coordinated with the private sector to develop the software BUBE-Online. In addition to the information for E-PRTR, the webtool BUBE-online includes all reporting obligations for the 11th and 13th Ordinance for the Implementation of the Federal Immission Control Act (11. BImSchV, Emissions Reporting and 13. BImSchV, Large Combustion Plants) see (flyer partially in English). Thus it is possible to use data generated for EMAS for all reporting obligations. Advantages with EMAS Concerning the German Renewable Energy Sources Act EMAS organisations also have advantages with the German Renewable Energy Sources Act (EEG 2009) which came into effect in Germany at the beginning of Certain Companies with a high level of energy consumption may receive cost relief pursuant to the EEG s reimbursement scheme. This includes an estimated 460 enterprises in the manufacturing industry, including aluminium mills and railway companies. The German EEG provides that an industrial company that requests a restriction of the amount of EEG-energy that is required to be purchased according to 40 et seq. EEG 2009, must have implemented an energy management system. As EMAS-registered enterprises fulfil the requirements of the act, they only need to submit the EMAS certificate. The German Federal Office of Economics and Export Control (BAFA) provides regularly updated information on current regulations, see (available in English). New Standard for Energy Management Systems On the 1st July 2009 the European Committee for Standardisation (CEN) published a standard for energy management systems: EN This standard defines the organisational requirements for enterprises to improve energy efficiency continuously and systematically. The structure of the standard is similar to that of ISO with respect to environmental management systems - but requires more in terms of performance improvement and information duties. As EMAS includes exactly the same additional requirements as ISO 14001, EMAS organisations find it easy to fulfil the requirements of EN for energy management and accordingly, may be verified, such as e.g. Verkehrsbetriebe Potsdam (Municipal Transport Services Potsdam). Additional information Synopsis of all EN and EMAS requirements: (German and English available) Information in German about the emissions register E-PRTR published by the Federal Environment Agency on: The German Emissions Trading Authority (DEHSt): Current information in German about reimbursement provisions of the Renewable Energy Sources Act can be found at the website for the Federal Office of Economics and Export Control: An overview of current international and European standards is provided by the Principles of Environmental Protection Standards Committee (NAGUS) by the German Institute for Standardisation (DIN): 9

12 VOICES ON EMAS AND CLIMATE CHANGE The desired CO2-reductions for the business year 2007 in comparison to business as usual will be presented for the first time this year and will continue to be made available in the following years. Altogether, 2,670.8 tonnes of direct emissions of carbon dioxide and 51.8 tonnes of indirect carbon dioxide emissions were saved at the external utility company through the introduction of sustainability management in 2007.«Apetito AG, Rheine Environmental Statement 2008 The positive response we have gotten and the current development of climate protection and its importance in the public discourse encourages us to continue on the course we have set for ourselves. To this end, we continue to include the accounting and evaluation of all climate-relevant data in a separate climate report. This transparently contains, besides the global and regional developments, in particular the carbon dioxide emissions of the Karlsruhe public utility s processes. The indirect emissions attributable to the municipal utility are also considered in the accounting. This includes emissions with regard to the use of our products energy and waterwhether they occur through household use, commercial or service providers or industrial use.«karlsruhe Municipal Utility Environmental Statement of 2008 with Climate Report Do we still need EMAS, after becoming certified for the first time in 2003? Yes, we need it now more than ever. In the past four years we have learned to value how eco- and energy management have sensitised us to reading consumption critically. ( ) We can now identify trends, control processes and sensitise for questions regarding resource consumption. That helps us in the current discussion on climate protection as well. For us, this is an integral part of eco-management which also makes economic sense. «Gemeindeverwaltung Illingen Environmental Statement 2007 Our environmental protection activities are a good example of the interaction between ecology and economy. A reduced use of natural resources and less material input not only helps maintain the environment but also reduces costs and increases efficiency. In light of a definite climate change, the reduction of energy use and the reduction of CO2-emissions clearly play a central role in the environmental activities of MANN+HUMMEL GMBH. Through organisational and technical measures, the input of electricity, oil, water and compressed air are continually reduced.«mann+hummel GMBH, Marklhofen Environmental Statement 2008 short version With the implementation of an environmental management system, Press n Relations will do its part to limit the impacts of climate change. To this end, environmental protection must be well-anchored in the enterprise and environmental management must create the economic basis for investments in further environmental measures, such as the decrease of energy consumption.«press n Relations GmbH, Ulm Environmental Statement

13 2 MORE RESOURCE EFFICIENCY One important aspect of EMAS participation for many EMAS enterprises is EMAS s role in systematically and permanently decreasing expenses for operational resource consumption. As experiences show, a strategically implemented environmental management can decrease the costs of waste, energy and water considerably, as well as improving resource efficiency. The first step towards a systematic environmental management is, inter alia, an inventory of all environmental impacts the environmental review under EMAS. This analysis and inventory of the energy and resource consumption of all processes and products (input / output) within the EMAS system is especially suitable for small and medium-sized enterprises (SMEs) because of the stringent structure and the sector-specific guidelines which facilitate the implementation. Detailed Data Collection is the Basis With the help of a detailed data collection about the operational resource consumption, cost drivers can be located, a necessary step for future decreases. An important factor of success is the full participation of employees: their knowledge and ideas are invaluable for increasing resource efficiency. They know best where the shoe pinches. Experience has shown that increasing one s potential is one of the most promising ways to gain large savings with the least effort. In order to be able to evaluate efficiency, it is essential to generate convincing environmental indicators (such as energy consumption) and performance indicators (such as energy consumption per unit produced). The guidance published by the European Commission for application to EMAS entitled [...] concerning the Selection and Use of Environmental Performance Indicators, mentions such indicators for measuring efficiency and shows how enterprises can better control and improve their energy and resource efficiency. The revised version of EMAS, EMAS III, lists energy efficiency as a core indicator to be reported on. Reduction of Material and Energy Consumption Surveys show that the instrument EMAS can be quite helpful for many organisations. In particular, industrial organisations that are resource-intensive were able to reduce material and energy consumption significantly just a short time after the implementation of the environmental management system. This is not only beneficial for the environment; participating organisations were able to amortise expenses for implementation and maintenance of the environmental management system or EMAS participation after only a short period. According to a survey conducted as part of the European Commission s EVER evaluation studies (2005), 62% of all registered enterprises were convinced that EMAS is an effective tool for increasing competitiveness. Moreover, in a survey conducted in 2006 by the Bavarian Environmental Agency (LfU), 75 % of all enterprises surveyed stated that they were able to reduce expenses with the help of the environmental management system. Making Potential Cost Savings Accessible Potential savings identified during the initial review generally are relatively easy to implement. Later in the process, however, more effort is required to increase resource efficiency. Therefore, it is advisable to integrate EMAS consistently into strategic management from the very beginning in order to include all entities and activities. Only when all employees are conscious of EMAS can the continuous improvement process be stimulated. Studies have shown that revenues and employment were well above average in organisations which had established EMAS and its strong learning process because all of the organisation s employees are pulling together in one direction. This ensures that EMAS is a good long-term economic investment as well as being ecologically worthwhile. Further Information Several sector- and topic-specific guidelines facilitate the EMAS implementation. Many of these guidelines and other practice-orientated aids are provided on the internet site of the German EMAS Advisory Board: 11

14 VOICES ON EMAS AND RESOURCE EFFICIENCY We have implemented our environmental goals and objectives with respect to energy savings. Furthermore, we used these goals and objectives for the certification of our energy management system in accordance with the new standard DIN EN ISO 16001: «ViP Verkehrsbetrieb Potsdam GmbH Updated Environmental Statement 2009 The way in which an organisation takes care of natural resources will be a future factor to its success. This is confirmed by our experience: in 2007 alone we were able to avoid approximately 165,000 Euros in electricity and heating costs, contributing to an annual surplus of 1.5% for the fiscal year In the six accounting years the entire savings added up to approximately one million Euros.«Savings Bank of Kraichgau, Bruchsal Environmental Statement 2008 Reducing our burden on the environment and the real estate s costs of the municipal authority for construction is also necessary for the future. Thus we see in EMAS an important element for a positive development.«municipal Authority for Construction of the City of Schwabach Environmental Statement 2007 The consequent reduction and removal of environmental pollution determines our actions. Concretely, this means that we give priority to environmentally-friendly products, procedures and services. We give preference to fair trade wares. We save resources such as energy, paper and water. We treat waste pursuant to the principle of avoiding or reusing it before disposing it.«environmental Statement of the Church Development Service Consequent environmental controlling have lead in the past years among other things to savings in costs through the reduction of energy consumption and waste as well as the decrease of operational costs despite rising energy prices. The monitoring and consistent application of applicable legal requirements resulted in greater certainty in the internal clinic procedures and a considerable improvement in the clinic s image.«clinic of Hochried, Murnau Environmental Statement of 2006 with update As more stringent environmental protection standards cause higher initial costs, the necessity of these costs will be put into question. This is even true when the mid- or long-term savings can be calculated. And it is true for the private sector as well as for commercial decisions. Environmental protection will not advance on its own. With our participation in the EMAS certification process we want to show that it is doable and we want to give other firms the courage to undertake an Eco-audit.«Senate Department for Environment, Civil Engineering & Transport of the Free and Hanseatic City of Bremen Updated Environmental Statement 2008 Our students are youths or young adults, an age for which concern with the environment or climate is not inevitably the first priority. Therefore our rules, measures and activities are presented so that the students must work through the issues of scarcer raw materials, new technologies for future energy supply, and a more responsible approach to energy.«vocational School Kiel Environmental Statement

15 3 MORE LEGAL CERTAINTY Pursuant to EMAS, an environmental verifier makes a thorough examination to determine whether an organisation complies with all legal requirements concerning the environment. In this way, EMAS participants demonstrate an increased level of legal compliance and therefore reduce their risk of liability. Federal and state governments reward EMAS-registered organisations by allowing enforcement relief with regard to environmental regulations and in some cases, granting a financial advantage. One aspect of EMAS is that an organisation may register its site only if it complies with all relevant environmental regulations. Only in that case the verifiers are allowed to give their seal of approval and validate the environmental statement. A further control mechanism is provided by the responsible competent body that involves law enforcement agencies and finds out whether the organisation has any recorded violations. Therefore, the credibility-building function of an EMAS-certificate is not to be underestimated: customers, suppliers, governmental authorities and the public can all rely on the statements regarding legal compliance contained in an EMAS-organisation s environmental statement. Prerequisite: No Legal Violations An environmental verifier must have examined all the activities of each EMAS organisation after three years at the latest. Furthermore, he or she visits the sites on an annual basis. Each environmental statement contains an environmental verifier s declaration on verification and validation activities where the verifier confirms that there is no evidence of non-compliance with applicable legal requirements relating to the environment. Hence, environmental verifiers are prohibited from validating an environmental statement if the verifier has detected legal violations relating to the environment. This strict process results in a considerably improved level of legal compliances for all participating EMAS organisations. Therefore, legislative and enforcement agencies are able to provide exemptions or relief, especially with respect to supervision, reporting and documentation duties. EMAS-Privileging Ordinance The German EMAS Privileging Ordinance (EMAS- Privilegierungs-Verordnung), which came into force in June 2002, established significant relief for EMAS participants in the areas of immission control and waste. Examples are environmental monitoring reporting, disclosure and notification duties concerning business organisation as well as recurring measuring of emissions. The internal reviews connected to EMAS are equivalent to official inspections. Moreover, responsible authorities shall waive the requirement of comprehensive application documents concerning construction, operation or changes to facilities to be approved, if they receive verified documents resulting from the environmental review, which correspond to the required content of the application documents. Most of the German federal states provide EMAS participants additional privileges on discretionary decisions pursuant to environmental pacts and cooperation between the states and the private sector. One example of administrative relief (Substitution) is that the environmental authority may use an already existing environmental statement rather than demanding a new and separate waste disposal concept. In addition, internal expert personnel may perform recurring measurements of emissions, or extend the periods between measurements. 13

16 Benefits of Legal Compliance EMAS participation can pay off financially when permitting or renewing permits. Pursuant to the 4 th Ordinance for the Implementation of the Federal Immission Control Act (4. BImSchV, Installations Requiring a Permit) permitting authorities are to consider whether the proposed facility belongs to a registered site while reviewing the permit application. If that is the case, the organisation may reduce procedural costs by using existing EMAS-documentation. As to costs: many German federal states exempt EMAS participants from an average 25% of the fee for immission control related permits. Moreover, the EMAS certificate may provide some competitive advantage with public tendering procedures. Regrettably, not all EMAS organisations can benefit from reliefs granted by the German federal and state governments regarding waste, water and immission control laws. However, every EMAS-organisation benefits from the comprehensive legal review included in the EMASvalidation and registration process. Increased legal compliance can considerably reduce the company s risk of liability, and therefore the risk of unpleasant and expensive incidents, which is of interest to insurance companies and investors. Thus, EMAS organisations will want to make sure they present their EMAS certification documents during all procedures or negotiations. Moreover, companies with a higher liability risk, due to their products or production procedures, may be able to request a reduction of fees and interest rates based upon their EMAS participation. Prepared for Legal Changes EMAS participants are well-armed for current and future legal developments. As an example, enforcement of the German Environmental Damage Act - EDA (Umweltschadensgesetz) is based upon an EU-Regulation (Directive 2004/35/EC) and has extended strict liability regardless of fault for environmental damage. Since many small and medium-sized enterprises (SMEs) are unaware of this new provision, EMAS participants have an advantage in legal compliance. As the German Chamber of Industry and Commerce (DIHK) reasoned in a recent statement: Enterprises that have implemented an environmental management system pursuant to the EMAS regulation, and that control all relevant risks effectively, will not need an update or even a correction. Other organisations may want to start thinking about such an implementation. Additional Information: Legal compliance requires knowledge about laws, acts and other regulations affecting the organisation. Helpful are sector-specific guidelines, see: (in German), information of the Chamber of Industry and Commerce or a consultation of an (external) environmental consultant or verifier. The Federal Government of Germany conducts an internet portal where all laws and regulations are listed (www.gesetze-im-internet.de), the Laender or federal states offer comparable portals (see web sites of the 16 federal state environmental agencies). The Office of the German EMAS Advisory Board provides a summary on EMAS in laws and administrative regulations ( EMAS in Rechts- und Verwaltungsvorschriften ) that includes tips on relief that EMAS participants may receive in Germany. See deutschland 14

17 VOICES ON EMAS AND LEGAL CERTAINTY New laws, directives, guidelines or changes to the law require examination, evaluation and documentation. To the extent that they are relevant for Apetito, these measures are differentiated, applied and their impact monitored.«apetito, Rheine Environmental Statement 2008 We achieved a higher legal certainty by using a computer-assisted monitoring system for the administration of servicing and maintenance planning, monitoring and auditing, self-monitoring, documentation of verification and the monitoring of dates.«schumacher Packaging GmbH, Environmental Statement 2010 With the help of our documented environmental management system we were able to organisationally secure compliance with regulations as well as with constraints and conditions.«wwk druck GmbH, Schlott Gruppe Environmental Statement 2008 We are able to ensure compliance with relevant environmental laws and regulations through an annual legal check. Responsibilities are controlled. Installations and devices are maintained and serviced regularly. Each year there is a safety inspection by an occupational health and safety specialist.«protestant Academy Bad Boll Sustainability Report 2008 The daily application of our environmentally-oriented company philosophy guarantees that all of our organisational, commercial and technical activities are in accord with our environmental politics as well as our environmental goals and that all of our contractual agreements and legal commitments are fulfilled.«sternquell-brewery GmbH, Plauen Environmental Statement 2008 In our environmental policies we have made the commitment to note and comply with all environmental requirements. So that this is not just a fine-sounding letter of intent, we have ensured that all relevant legal guidelines are systematically fulfilled in each of our corporate procedures. Changes to the law are covered in a regular updated index of relevant regulations. ( ) Additionally, a register of permissions and safety-related as well as environmentally relevant facilities which need monitoring on a periodic basis are being administered. This is how we ensure compliance with constraints and verification periods.«chemiepark Marl und das PolymerLatex Centrum in Marl-Frentrop Joint Environmental Statement

18 4 MORE SALES OPPORTUNITIES Whether for public authorities or private enterprises: tender requirements regarding environmental management are the order of the day. EMAS registered enterprises have a clear advantage in that they can provide credible evidence of their commitment. Public authorities federal, state, and local are an important economic factor. According to the German Federal Statistical Office, public entities purchased an estimated 260 billion Euros in products, construction and services in This accounts for 12% of the German Gross Domestic Product. Thus, the public sector exerts a considerable influence on the environment, and the keyword has become eco-friendly purchasing (Green Public Procurement, GPP). Environmental Management as a Selection Criterion The new European Union procurement directive and its implementation into national procurement law has increased the public sector s sphere of influence with respect to ecological requirements in tenders. Public authorities may take environmental performance of potential suppliers and service providers into consideration starting with defining the subject of the order and service description to the point of choosing the bidder and assessing the offer. The European Regulations are legally binding for all German procurement agencies since the implementation of the German Regulation on the Award of Contracts (Vergabeverordnung - VgV) in The amendment of the Act Against Restraints on Competition (GWB) provided a further clarification of the formal law. The new regulations refer directly to EMAS and therefore EMAS-registered organisations have advantages. Nevertheless, it is illegal to favour an organisation s bid because the organisation can show an EMAS registration certificate this would be incompatible with the principles of the fair competition and public procurement law. Rather, EMAS- registration is an additional criterion. If, however, a public authority received two offers similar in content and price, the authority could select a supplier or service provider that successfully participated in EMAS. Participation in the European environmental management system may be an important competitive advantage, both in the description of the technical capacity or assortment of the bidder respectively a so-called qualification test and with respect to the terms and conditions of the contract. The German Federal Ministry for the Environment, Nature Conversation and Nuclear Safety (BMU) and the German Federal Ministry of Economics and Technology (BMWi) both make clear that federal agencies are to consider EMAS-participation wherever possible in the scope of competitive procurement procedures. In a shared communication written in August of 2004, the two agencies explained how German federal agencies could do this within the legal framework. Simple Proof of Technical Capacity Pursuant to the general principles of procurement, only competent, efficient and reliable enterprises may receive public contracts. If construction and service orders could have an environmental impact - as generally true for construction projects then participation in EMAS could be evidence for the organisation s technical capacity. In this context, the allocation office may request information regarding the environmental management of the bidder to the extent that it is relevant to prospective bidder s execution of the contract. The information required must be specifcly connected to the subject of the prospective contract. 16

19 The applicable legal sources refer to EMAS and to ISO as appropriate evidence for environmental management; other comparable approaches must align themselves to these standards. Thus, contractors offering environmental services do not necessarily have to participate in EMAS or ISO 14001, but are obliged to demonstrate their compliance with the specific content requirements. As a rule, an independent certification body must then review each submission. One of the factors considered is whether the enterprise has implemented a proper system for continuous improvement of environmental performance, and whether the organisation is in compliance with the applicable environmental law. Such a review must not indicate legal violations. Advantages in Tendering Procedures Registered EMAS-organisations have a clear advantage during competitive biddings: they do not have to spend extra money on experts reports and they have higher certainty in planning since they know, based on their EMAS validation, that their system is environmentally suitable. Additionally, in certain circumstances, the contracting entity may request from the contractor certain environmental measurements while executing the order. Pursuant to EU law, the procurement agency may specify such additional conditions, if it is stated in the contract documents and if these conditions have a reasonable connection to the order. Successful EMAS participation may help the organisation to demonstrate, that it will take certain environmental management measures during execution of the order as well. What is true in the public sector is also valid in the private sector. Many large, internationally-active companies operating in economic sectors, which, on the one hand must comply with a high level of environmental laws, and on the other hand, commission a great number of suppliers (for example the automobile industry), may require proof of a validated environmental management system from their suppliers. Thus, these companies implement their very own strategic environmental aims and reduce their liability risk. EMAS organisations are more easily able to provide comprehensive data and facts concerning the operational environmental management - if these are required during a preselection since they have already collected them. In these cases EMAS may be another demonstration of quality and therefore lead to new orders. Additional Information gives an overview for European Tenders which mention EMAS as a criterion. General information regarding green procurement in the public sector collected by the German Federal Environment Agency: 17

20 VOICES ON EMAS AND SALES OPPORTUNITIES GEALAN fosters its business and partner relationships with its suppliers for many years. 80 percent of ( ) the purchased goods originate from Germany. Suppliers of particularly environmentally relevant products, which are certified by either EMAS or 14001, are given a preference.«gealan Window Systems, GmbH, Oberkotzau - Sustainability Report with Environmental Statement 2005 Strategic suppliers must be certified pursuant to ISO or EMAS.«GETRAG Getriebe- und Zahnradfabrik Hermann Hagenmeyer GmbH & Cie KG, Untergruppenbach Environmental Statement 2007 (Environmental Programme) Companies holding environmental certificates (e.g. EMAS, QuB, Umweltpakt Bayern) are being preferred within the framework of tenders and awarding contracts for commercial cleaning of the Rural District Office.«Rural District Office Starnberg Environmental Statement 2008 Ecological advantages are achieved through the collaboration with contracted shipping companies due to optimising the utilised transport capacity through the carrier as well as avoiding deadheads. The contracted shipping companies have been informed about the Wilkhahn s company policy and are obligated to comply with the quality standards of Wilkhahn.«Wilkening + Hahne GmbH + Co. KG, Bad Münder Consolidated Environmental Statement 2008 We put an influence on our business partners to make use of our environmental policy. In addition, we inform our customers about the environmentally sound use of our products and their disposal.«leoni-group, Werk Bad Kötzting Environmental Statement 2008 VAUDE aims for the Oeko-Tex Standard 100 and Bluedesign Standard for the whole product range. This makes it necessary to carefully select as well as to collaborate with (material-) suppliers and manufacturers. VAUDE sets a high value on long-term business relationships. That is why we, first and foremost, try to obtain existing business partners for a Bluedesign-certification or the use of environmentally friendly materials.«vaude Sport GmbH & Co. KG, Tettnang Environmental Statement

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