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Environmental Management System – A.B Blanco & Sons

Author: Ellie Cross

At: July 21, 2023

Introduction

Companies operating in the manufacturing sector must follow government laws and regulations related to environmental sustainability and emission control, for which, having an EMS is helpful. EMS helps the companies to establish sustainability in operations by reducing resource use and monitoring waste (Oliveira, et al., 2016). This report evaluates the implementation of environmental management systems in The Virtual Company, A.B Blanco & Son. The company is a small family business that specialises in producing vehicle registration plates, made manually using the traditional process.

This study evaluates the manufacturing process in the organisation, followed by the resources it uses for manufacturing and emissions released. The waste generated by the organisation during production would also be evaluated. Furthermore, the organisation’s environmental management system will be analysed, followed by preparing a table detailing the aspects and impacts of the company on the environment, which would be scored and ranked. Lastly, a detailed presentation of the regulatory compliance register for A.B Blanco & Son.  

An Overview of A.B Blanco & Son  

Blanco & Son is a small-sized European family business that uses traditional methods in manufacturing car registration plates. The company uses manual labour largely to produce modern reflective plates without using ink for liquid paint. The raw materials for manufacturing include an aluminium reel, coloured wax ribbon, cleaning solvent and reflective sheet. The emissions to air include carbon dioxide, ethylene glycol, ethanol, methyl benzene, etc., whereas land emissions include wood,  polyethylene, cardboard and aluminium chips. Other hazardous waste of the company due to its manufacturing process includes waste solvents. Blanco & Son has twenty employees and it can produce an average of 200 pairs of reflective registration plates daily by working in full capacity, this allows the company to make a small annual profit. This finance remains an issue due to heavy competition from other firms operating in the same sector. Blanco & Son mostly use manual labours and techniques to produce the reflective number plates. Although the company has taken initiatives to procure clean electricity and focused on the non-manufacturing processes to reduce environmental impact, manufacturing processes and by-products are yet to be sustainable.

Environmental and Business Case for Introducing an EMS

EMS

An Environmental management system (EMS) contains a set of practices that helps a company reduce its environmental impact through increased operational efficiency (Crane & Matten, 2016). The different types of EMS available for the companies for implementation include in-house, best practice and certification. An in-house EMS is built and supervised in the organisation by the management. The best practices certification helps the companies follow the minimum quality standards.

ISO 14001, EMAS and BS 8555 are some environmental certifications that can be followed. This would offer an environmental audit scheme for the company and comply with the ISO14001:2004 standards.

The unplanned use of natural resources by the SMEs of Europe causes rapid depletion. It inhibits the future generation from having access to the same due to the use of fossil fuels (Daud, et al., 2019). Therefore, A.B Blanco & Son must adopt sustainability measures by implementing an appropriate EMS to ensure resource availability for future generations. The EMS will benefit the firm to achieve sustainable development by using environmental instruments such as environmental management system (EMS), ISO 14001, BS 8555 and eco-management & audit scheme (EMAS) to solve environmental issues (Varun, Bhat & Prakash, 2009).

Implementation of EMS for A.B Blanco & Son

Sekhon (2014) defined an environmental management system (EMS) as the framework a company implements to understand its environmental impact wilfully. An EMS enables the company to comply with the environmental regulations and undertake strategies to prevent environmental pollution (Fuzi, et al., 2019). However, implementing an EMS varies based on the company’s activities and size.  The benefits of implementing EMS in organisations include better environmental performance and improved market share (Zutshi & Sohal, 2003). This is because the EMS helps to introduce sustainability in operations that helps to reduce the costs in the long term, thereby keeping the price of the number of plates constant despite market inflations. Additionally, EMS in the company can gain the appreciation of conscious buyers and provide media coverage to the firm thereby increasing demand.

The types of EMS available for implementation by companies include ISO 14001: 2015 Environmental Management Systems, the European Commission’s Eco-management and Audit Scheme (EMAS), and ISO 14001:2004 Environmental Management Systems (Crane & Matten, 2016). ISO 14001: 2015 is applicable across a range of organisations regardless of size and scope whereas EMAS is suitable for companies (Da Fonseca, 2015).  

To introduce an environmental management system for the company, it is essential to analyse the environmental and business case (Oliveira, et al., 2016). The primary stage of an EMS plan includes alluring the commitment of the organisation’s senior management and establishing the organisational goals along with allocating the responsibilities of the team members (Blowfield, 2013). This is followed by the allocation of the budget and resources that would be required to accomplish the project and formulate the schedule. The case study shows that the company uses the traditional manual producing reflective plates.

Benefits of implementing an EMS for A.B Blanco & Son

Implementing an EMS system will benefit A.B Blanco and Son by helping the firm reduce waste and initiate recycling programs. This will help the firm innovate practices and maximise resource use to reduce waste (Kuhre, 2018). EMS will benefit the company to increase its efficiency through maximum usage of the raw materials and minimise the environmental risks of polluting the air, land and water. The system will reduce the organisation’s environmental impact and help them become sustainable. The organisation can maximise the benefits of the EMS and gain professional certifications like the ISO 14001 certificate for enhanced quality management and sustainability.

Bianco & Son uses some distinct raw materials for production in which the presence of aluminium reel coloured waxed ribbon; reflective sheet and cleaning solvent are permanent. However, the matter of concern for the EMS of the organisation is the high quantity resource use, rate of emissions to air, land and hazardous waste generation. Carbon dioxide and Ethanol remain the highest concentrated emissions to air for the company. In contrast, aluminium chips and coloured wax ribbon are the maximum waste generated through the eight stages of production. Waste solvents emitted by the company are hazardous waste. The business case of the EMS would be to curtail the use of raw materials having a poor impact on the environment. The business case will enable the company owner to explain the need for environmental sustainability to the employees by modifying the existing operations. Following are the overall benefits of the EMS:  

  • Reducing the cost with the use of efficient processes and using less energy. 
  • Increase recycling and increase organisational profits by reducing resource use and cost of operations.
  • Improved reputation for the company and reduced environmental incidents.
  • Reduction in carbon footprint, emissions and the use of non-renewable resources.
  • Procure certification for gaining a competitive edge and have binding contracts from suppliers.
  • Reduce waste generation to air and land by developing compliance methods.  
  • Treat hazardous waste before disposal for complying with environmental regulations.  
  • Enhance the health and safety of staff with protective gear.
  • Provide training to the staff to comply with the EMS.
  • Use alternative energy sources and practice rainwater harvesting.
  • Improved regulatory performance.
  • Marketing advantage and a motivated workforce.
  • Achieve the CSR goals of the company and satisfy the stakeholders.
  • Increase profits in the long term due to lower costs and attract more customers and investors. 

As per Carayannis, et al. (2015), EMS plan is crucial for gaining investment opportunities and reducing environmental tax for organisations. The EMS plan in the organisation can be implemented by gaining the commitment of the 20 employees who are part of the organisation by explaining to them the need to integrate environmental sustainability into the operations. All 14 manufacturing employees should be provided advanced training for best industry practices and the use of fewer chemicals for production and ensuring proper waste disposal. The cleaner should have protective equipment and knowledge about waste management and segregation. Investment in sustainable and manufacturing technologies would ensure a long-term reduction in operational cost.

Cost-benefit balance:

A realistic target for the company would be to set the goal of recycling and safe waste disposal at every level. The benefits achieved by the company will be more than the cumulative expenses. The organisation will have the goal of implementing sustainability in operations. A specialist would be recruited for supervising the EMS in the company and two staff would be assigned. The British Assessment Bureau approves the application of ISO 14001 across all organisations irrespective of the sector they belong to, and hence it is recommended for A.B Blanco & Son. Before the implementation of EMS, initial review would be done by checking the releases of contaminants to the environment. The benefits of the EMS would include increased profits for the company as they would be able to use resources efficiently and reduce waste. Optimum use of the raw materials and recycling would ensure that lesser materials must be purchased and used by the company. The EMS plan would involve setting up the infrastructure of backup power with solar-powered batteries due to which solar panels would be installed around the facility.    

Aspects and Impacts

This section of the study determines aspects of the activities and impact of Blanco & son.

ProcessActivityAspectImpactSpecific hazard
LaminationThe use of solvents for cleaning the aluminium  sheet  Air emissions from the solvent vapour    Air pollution causing respiratory health hazard, occupational and environmental hazard   Methyl benzene can cause organ toxicity, skin irritation  Ethyl glycol can cause oral toxicity 
Leakage of solvent Particulate matter emissionsSoil and groundwater pollution, health issues for humans 
Particulate matter emissionsRespiratory hazard
Adhesion with reflective sheet        Air emissions of particulate matter from the adhesive  Air pollution, poor air quality       
  Using a machine to laminate  Electricity consumption GHG Emission Waste generation    Occupational hazard Resource depletion, Global warming        
BlankingCutting of aluminium sheets attached with the pre-printed reflective sheet    GHG emission, Particulate matter emissions, waste generation, dust generation        Noise, resource depletion 
Drilling and roundingWaste generation, GHG emission, Dust generation, Noise from machines,      Noise pollution, climate change, poor air quality, disturbance for the local people and employees    
Identification taggingGuillotine cuttingNoise emitting from the machine and consumption of electricityEmissions causing harm to human  health and potential physical harm due to aluminium chips,  noise, global warming, resource depletion 
Embossing 1EmbossingGHG Emissions like CO2  and high electricity ConsumptionAir quality reduction, use of resources  
Hot stamping 1Hot stampingElectricity consumption Waste Generation GHG EmissionContamination of groundwater, climate change  
Embossing 2EmbossingElectricity consumptionSolid waste generation, human health issues  
Hot stamping 2Hot stampingColouring causing spills and thermal transference causes emissions to land, emissions to air Harm to the soil and biodiversity 
Riveting Joining results in the elimination of fine particles causing solid wasteHarm to human health and resource depletion 

Aspect severity score:

AspectScoreSeverity total score  (A)Occurrence probability (B)Significance (AxB)
Env damageRegsCostBusiness
Emissions to land water4/52/51/53/510/20  (50.0)5250 = Very high
Air emissions and solvent vapour in wastewater 3/53/52/52/510/20 (50.0)4200= High
Dust generation and noise2/53/52/52/59/20 (45.0)3135 =Low
Air emissions due to adhesive 3/53/52/52/510/20 (50.0)4200= High
GHG emissions4/52/51/53/510/20  (50.0)5250 = Very high
Heavy electricity consumption 5/52/51/53/511/20 (55.0)3165= Moderate
Waste generation5/55/53/53/516/20 (80.0)5400 = Severe
Noise pollution 4/53/51/52/510/20 (50.0)4200 = High
ProcessAspectEnvironmentSocial/HealthEconomyImpactControl measures
LaminationAir emissions Greenhouse gas causes global warming, climate change, and air pollution.     Global warming due to CO2 release. Urgent action requiredInstall an electrostatic precipitator and air filters before the gas passes out of the facility for reducing air pollution (Jaworek, et al., 2017)
Waste generation     Biodiversity loss. Urgent action required.Recycling and segregation.
Cleaning agent   Waterbody pollution. Urgent action required.Treatment and check for temperature before release.
BlankingMethylbenzene is a toxic gas, which is harmful to living creatures. It can have persistent exposure.   The activity causes an increase in air pollution and degrades human health. Urgent action requiredContained with scrubbers and ESP.
GHG emissions     Climate changeUse recyclable and biodegradable materials
Dust generation    Respiratory hazardEnsure use of laser technology for reducing dust
Identification taggingSeverely harmful to the environment. It causes massive ocean pollution and increases the toxicity of the land where it is dumped.    High levels of plastic harm the entire biodiversity. Urgent action requiredReduction with recycling.
Noise     Disturbance to localsUse soundproofing equipment
Electricity consumption   Environmental impact, resource depletion Use low electricity consuming machines
Embossing 1This material is dangerous and can affect the human lungs. Contamination of aluminium in the land can cause metal fume fever.     It causes land and air pollution.Reuse the chips to melt the e-waste and make new plates to reduce free flow in the environment.
Electricity consumption   Resource depletionUse low electricity consuming machines
Hot stamping 1Thermal transfer causes this waste generation. It is tough to process this waste without causing air pollution. This causes carbon emissions if burned.     Contamination of groundwater, climate change. Investigation needed Reuse of the coloured wax to solidify the waste after melting the wax for reuse.
Electricity consumption GHG Emissions   Resource depletion, climate changeUse low electricity consuming machines, limit resource use
Embossing 2Probability of contaminating drinking water and affect flora and fauna on the earth.     Solid waste generation, human health issues  Investigation needed Filtration and containment of the solvents and proper disposal.
Electricity consumption   Resource depletionUse low electricity consuming machines
Hot stamping 2Emissions to land, emissions to air  Electricity consumption   Harm to the soil and biodiversity Control in processUse organic wax
RivetingGeneration of solid waste             Harm to human health and resource depletion Investigation needed Waste management
Electricity consumption     Resource depletionUse low electricity consuming machines

Red: High risk

Yellow: Moderate risk

Blue: Needs more investigation

Green: Control in process

The aspect and impact table presents an account that enables the company to reduce its environmental impact with efficient control measures. The emission of CO2 and Ethanol into the air causes severe environmental impact and needs the urgent attention of the company’s authorities. The land waste comprising polythene and aluminium chips can be reduced by recycling and reusing. This would lead to a lower carbon footprint and reduce the cost of operations for the company in the long term (Crane & Matten, 2016). The lack of sustainability in the organisation results in increased consumption of non-renewable resources and depletion of natural resources. Implementing control measures would ensure that the company’s carbon footprint would be reduced. The organisation would be recognised as a model of CSR and as a result, improve its public image. Implementing the EMS would suffice the CSR goals of A.B. Blanco & Sons. The CSR goals of the organisation span the social, economic and environmental aspects incorporating self-regulatory organisational measures to enhance the economy, ensure social welfare and conserve the environment.  The EMS would suffice the economic goals of the organisation of higher revenue generation and profits by helping to reduce the cost of the operation and attract more investors, customers. The EMS would help the firm to accomplish the societal goals by reducing emissions to air and water to safeguard the health of the people in the community. Lastly, the EMS would contribute to attaining the environmental goals of CSR for the firm by helping them minimise their carbon footprint and adopt sustainable business practices. This will eventually lead to higher sales, profitability, and brand recognition for the organisation. At the present stage, the high levels of emissions of the company like carbon dioxide and methylbenzene have detrimental effects on the environment and health of the common people. Along with this isopropanol and ethanol are also required to be minimised for restoring the company’s corporate image.

Regulatory Compliance Register

The register of regulatory compliance is an important component of the EMS, as it would detail the minimum requirement and environmental performance for the organisation to comply with the environmental laws (Tennant, 2013). The following table presents the regulatory compliance register for Blanco & Son.

CategoryAspectLegislationDescription Requirement Relevance/ Compliance
Health and safety Occupational healthHealth and Safety at work act 1974          To ensure the health and safety of the employees (Health and Safety at Work etc Act, 1974).      The production facilities and factories are required to ensure that the health and well-being of the employees are preserved and that they are not exposed to any hazardous materials.The sampling of hazardous waste generation and assessment of the safety equipment and measures.
Control of Substances Hazardous to Health Regulations 2002        Proper safety protocols and measures along with emergency services must be made available in case of any health emergency.Prevention of employee exposure to hazardous substancesEnsures health surveillance for the staff
Registration, Evaluation, Authorisation and Restriction of Chemicals) Regulations 2007The employees’ health must be ensured in case of a hazardous workplace by restricting the use of chemicals.Continuous monitoring of the chemicals used.Ensure proper labelling of chemicals and first aid kits.
Air pollution Climate Change, GHG, dust and particulate matter emissions, and electricity consumptionClimate Change Act of 2008Compliance with environmental laws and regulations. Sustainable business operations for reducing carbon emissions and heating. Use of minimum raw materials and recycling.The company must ensure it does not directly increase climate change and global warming through its emissions and activities (Climate Change Act, 2008).Implementing checks and equipment for filtering emissions before releasing them into the air.
Water pollution Environmental Protection   Protection of groundwater against pollution and deteriorationEnvironmental Protection Act 1990                                Ethical sourcing of raw materials and responsible usage ensure that business operations or manufacturing do not negatively affect the environment and biodiversity. Implement protocols for environmental preservation and protection of wildlife and biodiversity.  As per the Environmental Protection Act, (1990), the company must ensure that its activities do not directly harm biodiversity.                      Implement strict measures to check the unrestricted and improper waste dumping like aluminium chips and plastic.                    
DIRECTIVE 2006/118/EC OF THE EUROPEAN PARLIAMENT AND THE COUNCIL          Judicious use of water and waste management ensures no seepage of waste and toxic materials into the groundwater (Europa, 2006). Minimise water pollution    The company is required to ensure that there is no deterioration of groundwater and the prevention of chemical pollution.          Ensure waste management systems and filters for separating the effluents and toxins.            
  Water Resources Act  Prevent groundwater from subjected to risk    Judicious use and disposal      Consent needed for discharge    
  The Groundwater Regulations (1998)  Minimise water pollution  Control source of water pollution    Contaminated water has to be treated
Waste Environmental quality standards for water policy, amending and repealing    DIRECTIVE 2008/105/EC OF THE EUROPEAN PARLIAMENT AND THE council  Ensuring the safe disposal of water-based waste and no chemical pollution.      Ensure the protection of habitats and the ecosystem (Europa, 2008).      Measures to control discharges from the factory.        
Landfill Regulations (England & Wales) 2005Acceptance standard for waste  Pre-treatment of wasteTechnical requirements need to be introduced  

Conclusion

In summary, due to the business nature of A.B Bianco & Son, it can be said that it is a step in the right direction for the company to implement EMS ISO 14001 as the appropriate EMS for improving environmental performance. Also, ISO 14001 would allow the company to work for continuous improvement of waste management and sustainability standards. Furthermore, ISO 14001 will support A.B Blanco & Son in its effort to control and reduce environmental impacts and minimise waste and pollution, and recycling of the waste by implementing new strategies will be beneficial in two years of operations. Lastly, the adoption of ISO 14001 will enhance Blanco & Son’s ability to increase its operational efficiency and competitiveness, as well as increasing the firm corporate social responsibility.

References

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Climate Change Act , 2008. Climate Change Act. [Online] Available at: https://www.legislation.gov.uk/ukpga/2008/27/contents[Accessed 30 June 2020].

Crane, A. & Matten, D., 2016. Business ethics: Managing corporate citizenship and sustainability in the age of globalization. 2nd ed. London: Oxford University Press.

Daud, S., Yusof, N. & Mokhtar, M., 2019. The Effectiveness of the Environmental Management System (EMS) Implementation in Green Supply Chain: A Case Study. KnE Social Sciences, 1(1), pp. 943-962.

Environmental Protection Act , 1990. Environmental Protection Act 1990. [Online] Available at: https://www.legislation.gov.uk/ukpga/1990/43/part/I[Accessed 30 June 2020].

Europa, 2006. DIRECTIVE 2006/118/EC OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL. [Online] Available at: https://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=OJ:L:2006:372:0019:0031:EN:PDF[Accessed 14 July 2020].

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