Environmental Management Systems (EMS)

 
The Issues

Implementing an environmental management system (EMS) may bring significant benefits to companies, such as (a) improved management of environmental aspects; (b) reduced cost of waste management and/or savings in consumption of energy and materials; (c) increased export competitiveness and the avoidance of trade barriers; and (d) enhanced corporate image. However, despite its voluntary nature, there is also concern that ISO 14001 certification may become a de facto condition for doing business, at least in certain sectors, in a manner similar to the development of ISO 9000 quality management standards. Thus, ISO 14001 could have positive or negative effects on trade. National implementation issues in developing countries play a key role in determining the effects of the ISO 14001 standard.

Our Work
In October 1997, UNCTAD convened an Expert Meeting to examine the trade implications for developing countries of international standards for environmental management systems (EMS), particularly the International Standards Organization (ISO) 14001 standard. The Expert Meeting adopted a number of recommendations. With regard to UNCTAD's work, experts recommended that empirical analyses be carried out, of the trade implications of ISO 14000 standards as well as on national implementation issues that may have a bearing on international trade. This includes issues such as:
  • What are the possible trade implications of ISO 14001?
  • How could potential adverse effects be avoided and positive ones promoted, in particular through policies at the national level?
  • What are the environmental benefits of ISO 14001?
  • What are the challenges and opportunities for small and medium sized enterprises (SMEs)? How can their use of ISO 14001 be facilitated?
  • How can sectoral priorities be identified?
  • What kind of industry cooperation could be promoted?
  • What are developing countries' priorities in the ISO review process?

Such analysis is being carried out in the context of a project funded by the Governments of Italy and the Netherlands. For more information on the Netherlands-funded project, see: "Reconciliation of Environmental and Trade Policies".

UNCTAD is coordinating and cooperating with ISO (DEVCO), ITC (UNCTAD/WTO) and UNIDO

Ongoing and future activities

Analysis is under way at the national level, as part of activities carried out in the context of country projects on trade and environment in India (see: Strengthening capacities for trade and environment policy co-ordination) and Vietnam (see: Trade, Environment and Development in Vietnam). UNCTAD, in cooperation with the Government of the Netherlands is promoting a series of studies on the implications of ISO 14001 for developing countries.

The project in India has studied:

  • why Indian companies are adopting ISO 14001
  • constraints and opportunities for adopting it
  • composition of TNCs and local firms adopting it, and
  • the facilitating mechanisms Government has put in place for adopting and certifying it.

The Government of Switzerland is providing support for a small workshop, to be held in Geneva in 2000.