CORPORATE ENVIRONMENTAL MANAGEMENT

CORPORATE ENVIRONMENTAL MANAGEMENT JOHN DARABARIS, P.E., C.P.A. Boca Raton London New York CRC Press is an imprint of the Taylor & Francis Group, an informa business © 2008 by Taylor & Francis Group, LLC CRC Press Taylor & Francis Group 6000 Broken Sound Parkway NW, Suite 300 Boca Raton, FL 33487-2742 © 2008 by Taylor & Francis Group, LLC CRC Press is an imprint of Taylor & Francis Group, an Informa business No claim to original U.S. Government works Printed in the United States of America on acid-free paper 10 9 8 7 6 5 4 3 2 1 International Standard Book Number-13: 978-1-4200-5546-7 (Hardcover) This book contains information obtained from authentic and highly regarded sources. Reprinted material is quoted with permission, and sources are indicated. A wide variety of references are listed. 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Trademark Notice: Product or corporate names may be trademarks or registered trademarks, and are used only for identification and explanation without intent to infringe. Library of Congress Cataloging-in-Publication Data Darabaris, John. Corporate environmental management / John Darabaris. p. cm. Includes bibliographical references and index. ISBN 978-1-4200-5546-7 (alk. paper) 1. Environmental management--Industrial applications. 2. Environmental risk assessment--Industrial applications. 3. Social responsibility of business--Environmental aspects. 4. Industrial management--Environmental aspects. I. Title. GE300.D37 2008 658.4’083--dc22 2007016722 Visit the Taylor & Francis Web site at http://www.taylorandfrancis.com and the CRC Press Web site at http://www.crcpress.com © 2008 by Taylor & Francis Group, LLC Table of Contents Preface........................................................................................................................ix About the Author.......................................................................................................xi List of Illustrations...................................................................................................xiii 1 Introduction..................................................................................1 Reference...........................................................................................................7 2 Environmental Management Assessment..................................9 3 Lines of Inquiry..........................................................................13 4 Assessment Model and Analytical Framework........................17 Assessment Model...........................................................................................17 Analytical Framework.....................................................................................19 Program vs. Project Management..................................................................20 Environmental Risk Management ..................................................................22 5 Internal Survey...........................................................................27 Corporate Headquarters .................................................................................27 Operations.......................................................................................................29 6 Corporate Commitment.............................................................31 Senior Management Commitment .................................................................31 Corporate Environmental Policy....................................................................33 Responsible Care...................................................................................34 The CERES Principles ...........................................................................35 GEMI and the ICC Charter...................................................................35 United Nations Environment Programmes’ Financial Institutions Initiative on the Environment ....................................................36 Environmental Banking Association....................................................36 World Business Council for Sustainable Development .....................36 ISO 14000 ..............................................................................................37 Performance Track Corporate Leaders..........................................................40 Strategic Environmental Planning..................................................................40 References .......................................................................................................42 7 Communication..........................................................................43 External Communication/Public Relations....................................................43 v © 2008 by Taylor & Francis Group, LLC CORPORATE ENVIRONMENTAL MANAGEMENT Internal Communication .................................................................................46 Issue Management...........................................................................................48 8 Functional Implementation.......................................................51 Organization and Staffing...............................................................................51 Internal Integration..........................................................................................52 Operational Systems........................................................................................53 Pollution Prevention Opportunities .....................................................55 Environmental Risk Management...................................................................60 Waste Minimization Programs........................................................................61 The Emission Reduction Program..................................................................63 9 Measurement Systems................................................................65 Audit Program .................................................................................................65 Site Tours ...............................................................................................68 Root Cause Analysis..............................................................................69 Environmental Management Information System (MIS)...............................70 Environmental Cost Management ..................................................................72 Environmental Asset Management.................................................................75 Environmental Financial Management...........................................................77 Conventional Commercial Loan ...........................................................79 Supplier Financing.................................................................................79 Commercial Paper .................................................................................80 Bond Financing......................................................................................80 Private Placement Debt.........................................................................81 Environmental Capital Equipment Leasing..........................................81 Environmental Related Preferred Stock...............................................82 Master Limited Partnerships..................................................................82 Research and Development..................................................................82 References........................................................................................................86 10 Benchmark Survey.....................................................................87 Environmental Management-Based Benchmarking Survey Approach........89 Technical-Based Benchmarking Survey Approach.......................................91 References........................................................................................................96 11 External Survey ..........................................................................99 External Scan...................................................................................................99 Assessing Global Impacts—Sustainable Development.................................99 Project Life Cycle Analysis............................................................................103 Activist Group Alliances ...............................................................................105 Independent Technology Scan.....................................................................107 12 Natural Resource Damage Assessment—Proactive Strategies....109 Early Recognition of Contamination Stage..................................................113 Agreement or Settlement Stage....................................................................115 Cleanup Stage................................................................................................115 Pursuit of a PRP Claim Stage.......................................................................115 References......................................................................................................115 vi © 2008 by Taylor & Francis Group, LLC Table of Contents 13 Environmental Risk Assessment Issues.................................117 General Discussion.......................................................................................117 Health Assessments.............................................................................117 Ecological Risk Assessment................................................................120 Population Risk Analysis..............................................................................122 References .....................................................................................................123 14 Emergency Response Analysis................................................125 Contingency Plans ........................................................................................126 Up-the-Stack Emergencies............................................................................127 General Emergency Management Concepts...............................................130 References .....................................................................................................134 15 Corporate Health and Safety System......................................135 Establishing Hazard and Safety Control Measures.....................................136 Inorganic Chemicals............................................................................137 Organic Compounds...........................................................................138 Operational Chemicals/Hazard Communication Program ...............138 Personal Protective Equipment..........................................................139 Respiratory Protection...............................................................139 Levels of Protection...................................................................140 Monitoring and Medical Surveillance ......................................143 Site Control of Work Zones...............................................................144 Exclusion Zone (EZ).................................................................144 References .....................................................................................................144 16 Environmental Risk Management at Banking Institutions....147 Practices for the Commercial Banking Community...................................149 EPA Lender Liability Rule...................................................................151 Post-Commitment Practices for Debt Transactions ..........................152 Practices for the Equity Banking Community............................................154 Integrating Environmental and Financial Performance..............................157 References .....................................................................................................164 17 Global Warming........................................................................167 Existing Market and Potential Revenue......................................................168 Brokers...........................................................................................................169 Global Climate Profile..................................................................................169 Global Climate Summary .............................................................................172 References .....................................................................................................174 18 Assessment of International Trends ......................................175 OECD/EIRIS Study Results...........................................................................175 Survey on the State of Global Environmental and Social Reporting.......186 Emerging China and India Environmental Issues......................................187 Kyoto Protocol Debates ...............................................................................188 State of the U.S. Environmental Policies ....................................................189 vii © 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