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Representative ProjectsGreening the Supply Chain: EMS Projects in Guadalajara, Mexico and Lima, PeruChallengeLarge companies across the globe have successfully used ISO 14001-based environmental management systems (EMSs) to improve both environmental and economic performance. It remains to be seen, however, whether small and midsized enterprises (SMEs) can benefit from such systems, and whether environmental management is a tool that can strengthen the economic sustainability of companies linked together in a supply chain. Proyecto Guadalajara, a 2-year project
funded by the World Bank and 11 large industrial companies in Guadalajara,
Mexico, was one of the first large-scale efforts worldwide to apply the
ISO 14001 model systematically among SMEs. As lead consultant for the
project, The Lexington Group was asked to adapt the ISO 14001 EMS model
to the needs of SMEs; provide ISO 14001 training to 23 Guadalajara-based
SMEs who were suppliers or customers of the larger companies; and assist
the SMEs in developing and implementing their own EMSs. Lexington Group ApproachAlthough each project presented slightly different challenges, the core elements of The Lexington Group's approach were the same:
ResultsResults from Proyecto Guadalajara indicate that SMEs do benefit from developing EMSs. Among the 23 SMEs that participated in the project, environmental awareness and commitment increased substantially. The majority of the participating companies implemented process changes that benefited both the environment and their bottom line. Another important finding was that the SMEs who maintained their EMSs did so because they had important business reasons to do so (e.g., they were suppliers of large multinationals who regularly performed environmental audits). It is too early to evaluate the results of Proyecto Cadena. Return to Initial "Representative Projects" page An Environmental Strategy for the Multilateral Investment FundChallengeThe Multilateral Investment Fund (MIF), a branch of
the InterAmerican Development Bank (IDB), asked The Lexington Group and
Brugger, Hanser and Partner (BHP, a Swiss consulting company) to develop
a strategy for investing more of its funds in projects that support environmentally
responsible businesses in Latin America and the Caribbean. MIF had already
invested in some environmental projects in the region but wanted a more
systematic, comprehensive approach to soliciting and selecting projects
that met its criteria of sustainability, replicability, and innovation. Lexington Group ApproachThe Lexington Group, in conjunction with BHP, developed a short survey regarding potential opportunities for MIF and distributed this survey to more than 100 business leaders and development experts throughout the region. The Lexington Group then conducted interviews with business leaders and potential MIF partners in selected countries in the region to identify and develop potential projects. A group of entrepreneurs and potential partners also attended a workshop at IDB facilitated by The Lexington Group and BHP. At this workshop, participants discussed and refined a comprehensive strategy for using MIF's resources and expertise to promote eco-efficient business practices and the development of markets for environmental products. ResultsThe Lexington Group and BHP delivered to MIF a comprehensive strategy for promoting the development of environmentally responsible businesses in Latin America. The strategy paper included a detailed analysis of the drivers in the region toward environmentally responsible businesses as well as the challenges. The Lexington Group and BHP also identified a number of potential projects, including technical assistance grants and investment funds, for MIF consideration, several of which MIF is currently funding. Return to Initial "Representative Projects" page Management Review of EPA's Partnership ProgramsChallengeThe U.S. Environmental Protection Agency has close to
thirty partnership programs run from its Headquarters and a significant
number of regional partnership programs as well. The Agency developed
its first partnership programs--in which EPA works collaboratively with
industry and/or other stakeholders to achieve a mutual goal--in the early
1990s, and since that time additional partnership programs have developed
in an ad hoc manner throughout the Agency. The Office of Policy and Reinvention
(OPR) hired The Lexington Group to review how these programs, as a whole,
are managed within EPA and to make recommendations for improved management. Lexington Group ApproachThe Lexington Group gathered information for its analysis in several ways:
ResultsThe Lexington Group produced a draft and final report for OPR and gave briefings to senior OPR staff and others within the Agency. The report and briefing discussed The Lexington Group's major findings and recommendations. OPR is currently investigating ways to implement several of The Lexington Group's recommendations. Return to Initial "Representative Projects" page Supporting ISO 14001 Certification for Five Manufacturing Plants in a Large Transnational CorporationChallengeA large Japanese transnational corporation, with four operating divisions, sought the Lexington Group's support in achieving ISO 14001 certification for five manufacturing plants in Southern California and Mexico. The corporation asked the Lexington Group to develop an environmental management system (EMS) methodology that could be implemented consistently and effectively with corporate quality, efficiency, and productivity management objectives. The project required that all training and implementation support be conducted in Spanish for the Mexican plants and in English for the California operations. Lexington Group ApproachThe Lexington Group initiated the effort with an intense training program on EMS fundamentals for plant managers and their staffs. EMS management training avoided the technical requirements of the ISO 14001 standard and emphasized costs and benefits, the relationship of the EMS to the company's existing general management systems (including ISO 9001/2), ways in which the ISO 14001 project could help the company meet its objectives, and management's crucial role in leading the effort. The second phase included detailed reviews of each plant's existing general management systems; operating practices; training programs; environmental, health, and safety (EHS) compliance; and opportunities for EHS performance improvements. The Lexington Group used its EMS assessment tool to analyze gaps, then presented the results of the plant reviews and EMS assessment to each plant's general management team. In phase three, the Lexington Group delivered just-in-time training to the plants' cross-functional ISO implementation teams. Over a 6-month period, the Lexington Group presented three 2-day ISO 14001 courses, covering "Planning and Policy," "Implementation and Operation," and "Internal Auditing." Between the training sessions, the Lexington Group provided on-site consulting assistance to each plant's ISO implementation team, awareness training for large groups of employees, and support for plant management progress reviews. During the final phase, the Lexington Group conducted "pre-audit" assessments of each plant to identify any remaining nonconformities and to recommend improvements. ResultsEach of the five plants received ISO 14001 certification by the corporate deadline. All five plants achieved significant EHS performance improvements during EMS implementation, including a 45-percent reduction in the use of volatile organic compounds, a 5-percent reduction in production scrap, an increase of over 25 percent in recycling, and a significant improvement in EHS compliance performance. Return to Initial "Representative Projects" page Developing a "Multi-site" EMS for a Large CorporationChallengeWith ISO 14001 EMSs gaining some momentum, how should multi-plant companies proceed if they seek ISO 14001 certification for all their facilities? Should they build separate ISO 14001 EMSs at each site and seek certification for each site? Or should they develop a "multi-site" EMS and seek a single corporate ISO 14001 EMS certification covering all sites and corporate environmental functions? In late 1998, the Lexington Group was asked by a diverse manufacturing company with 25 plants to devise the most cost-effective approach to this issue. Lexington Group ApproachWe worked with the Corporate Environmental Manager and other corporate managers to develop a single company-wide EMS ("single organization—multiple locations") that covers:
The customer is currently implementing the company-wide EMS design both at the corporate and plant levels. ResultsThis approach will enable a single ISO 14001 certification for the corporate EMS which includes all manufacturing and service operations. One important initial result is that the customer has been successful in substantially reducing the cost of ISO 14001 certifications and periodic surveillance visits by the registrar. A single company-wide EMS, which is systematically implemented using the same EMS framework at each plant, lessens the time required for external verification and surveillance visits. In addition, there is an opportunity for further verification cost reductions through random sampling pursuant to ANSI-RAB criteria (NAP EMS Document E3.1). Return to Initial "Representative Projects" page Supporting EMS Development in a Public Environmental Management AgencyChallengeThe drive to manage environmental performance more systematically is not limited to the private sector. Increasingly, public and non-governmental agencies are seeking to understand their environmental impacts and develop plans to manage them. Introducing environmental management systems (EMSs) into public agencies presents an array of challenges not encountered in the private sector, especially in terms of measuring environmental performance and rewarding improvements. But the opportunities—for more efficient management and an improved environment—are great as well. Seeking to manage its parks, forests, and related services more systematically, the Commonwealth of Massachusetts hired the Lexington Group to assist the state's Department of Environmental Management (DEM) in developing an EMS. Lexington Group ApproachThe Lexington Group began by interviewing employees from all branches and levels of DEM to develop a holistic picture of current environmental management practices at the agency. These interviews focused on how the agency manages a range of environmental issues, from solid waste to maintenance, from land acquisition to environmental education and interpretation. The Lexington Group produced a gap analysis report at the end of this initial phase. The report discussed how DEM's current environmental management practices compared to a comprehensive EMS based loosely on the ISO 14001 framework. The Lexington Group discussed these findings with DEM's EMS Steering Committee, consisting of DEM management and employees. The Steering Committee decided to implement the EMS within the Division of Forests and Parks, which is responsible for day-to-day operations and management of nearly 300,000 acres of forests and parks. The EMS will initially address operational environmental issues at state forests, parks, and swimming pools, and will be implemented in each of DEM's 5 Regions. The Lexington Group and its subcontractors will provide EMS training and consulting support to Regional EMS Teams. DEM has identified 3 priority areas for establishing Environmental Objectives and Targets within the EMS: solid waste management, water quality, and infrastructure management. After initial implementation within the Division of Forests and Parks, DEM will consider extending the EMS to its other "line" division, the Division of Resource Conservation, which performs resource assessment, planning, design, construction, and scientific services. ResultsThe Lexington Group's initial analysis uncovered significant opportunities for DEM to improve its environmental management. The second phase of this project (EMS implementation to realize these opportunities) is ongoing. Return to Initial "Representative Projects" page Eco-Efficiency Primer and Implementation Guide: a Handbook for Implementing Eco-efficiency in Latin AmericaChallengeOut of necessity, many Latin American companies have begun to improve their efficiency and reduce their environmental impact. But many more companies either do not yet understand the competitive advantages attainable through improved environmental management or do not know how to make improvements. To fill this gap in information, the Programa de Liderazgo Empresarial para el Desarrollo Sostenible (PLEDS) of the Instituto Centroamericano de Administración de Empresas (INCAE) contracted the Lexington Group to prepare a guide for implementing eco-efficiency. PLEDS is an innovative program within INCAE that provides direct outreach and services to a regional network of companies on how to promote sustainable development as an integrated element of their business strategies. Lexington Group ApproachThe Lexington Group recognized that PLEDS had two goals: first, convincing business leaders that eco-efficiency can make good business sense, and, second, helping those who are convinced to implement an effective approach to eco-efficiency in their companies. To achieve these two goals, the Lexington Group developed two separate products: an eco-efficiency primer and an eco-efficiency implementation guide. The primer is intended to market the concept of eco-efficiency to business leaders. It explains the concept of eco-efficiency concisely and then presents the benefits a company can achieve by focusing on eco-efficiency, using case studies from a diverse range of companies in Latin America. The primer also raises the importance of eco-efficiency in the context of a region's development, challenging business leaders to make sustainable development a priority as their companies grow. The implementation guide provides a more detailed approach to integrating eco-efficiency into a business's strategy and everyday operations. To make the product appeal to a wide range of companies, the Lexington Group focused on explaining the central elements of an effective environmental management system rather than describing eco-efficient strategies for particular industry sectors. The Implementation Guide complements other PLEDS programs that offer industry-specific technical advice and information. ResultsPLEDS translated the Lexington Group's Eco-Efficiency Primer and the Implementation Guide into Spanish and desktop-published and printed both products. They are currently available from PLEDS's Internet site and through its distribution network. The primer and guide have filled a critical information gap in a region where sustainable development and business development must go hand-in-hand. Return to Initial "Representative Projects" page Supporting Reinvention at OSHA: Performance Measurement and Customer ServiceChallenge
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