Overcoming Barriers to Net Zero: How EMS Frameworks Can Help Your Business Achieve Sustainability

An environmental management system (EMS) is a tool for organizations to manage their environmental impact systematically. It provides a framework for identifying, assessing, prioritizing, and managing environmental risks and opportunities.

It helps improve regulatory compliance, resource efficiency, and stakeholder relations.

Why is EMS so important in 2023?

In the financial year 2020-21, the UK gov issued more than £27 million in fines to 33 companies for various breaches of climate change schemes introduced to help ensure the UK reaches its net zero emissions target by 2050.

The Retail, Food Service, and Grocery sectors spend over $41 billion on energy annually, representing 14 billion square feet of floor space in the U.S.

The steep rise in energy prices and non-compliance that invites massive fines threaten bottom lines for asset-intensive businesses like retail, which already operate on thin profit margins of around 2-3%.

Assuming a potential energy consumption reduction of 10%, retailers have a $4.1 billion opportunity in energy cost savings or an 8% increase in sales per square foot.

The most recent data on businesses' net zero actions say 'implementing change being costly' was the main barrier preventing businesses from acting (20%), while over 1 in 10 (13%) of those not taking action were 'unsure of how to measure their emissions.'

Common energy efficiency measures like retrofitting, renewable energy sources, cool roofing, and the like are capital-intensive, arduous to implement at scale, and may take years to show returns, creating barriers at every step in the journey toward sustainability.

However, enterprises can unlock massive cost savings by simply optimizing existing systems for simple workflow and process tweaks using a robust EMS framework and the right technology to drive their initiatives.

In this post, we will explore:

• The main purpose of EMS
• Requirements for an EMS
• EMS standards and certifications
• Steps to develop an EMS plan
• Techniques to manage EMS
• 5 examples of businesses that use EMS effectively
• Tips to operate EMS effectively at scale
• Benefits and drawbacks of EMS
• How to put together a team for EMS initiatives
• How to take the first step toward decarbonization

What is the main purpose of an environmental management system?

The ultimate goal of EMSs is to help organizations minimize their environmental impact and improve their sustainability performance.

• Identifying and assessing environmental risks
• Setting objectives and targets for improvement
• Implementing programs and procedures to achieve those objectives, and
• Monitoring and measuring performance to ensure continual improvement over time

Requirements for an environmental management system

Before developing an EMS plan, it's important to gather and have the following information and resources:

• Knowledge of the organization's environmental aspects and impacts, as well as legal and other requirements
• Input from key stakeholders, including employees, customers, and regulatory agencies
• Resources such as personnel, time, and funding to support the development and implementation of the EMS plan
• A clear understanding of the organization's goals and objectives, as well as its organizational structure and processes
• Access to relevant environmental data and metrics to track progress and identify areas for improvement
• Guidance from established EMS standards, such as ISO 14001, and/or from experienced EMS consultants or professionals

The specific requirements of an EMS will depend on the EMS standard being followed and the needs of the organization implementing the system.

EMS standards you should know about

There are several different EMS standards. Some of the most widely used ones include:

1. ISO 14001: This is the most widely recognized EMS standard worldwide. It provides a systematic approach to identifying and managing an organization's environmental impacts and achieving its environmental objectives.
2. EMAS (Eco-Management and Audit Scheme): This is a voluntary EU regulation that requires organizations to conduct an environmental audit, establish an EMS, and report on their environmental performance.
3. BS 8555: This is a British standard that provides a phased approach to implementing an EMS. It is designed to be flexible and scalable, making it a popular choice for small and medium-sized enterprises.
4. Sector-Specific EMS: Some industries have developed their own sector-specific EMS standards to address their unique environmental challenges. Examples include the Forest Stewardship Council (FSC) certification for sustainable forestry and the Marine Stewardship Council (MSC) certification for sustainable fishing practices.
5. Corporate EMS: This is an EMS that is developed and implemented by a corporation or large organization with multiple facilities or operations. A corporate EMS is typically designed to ensure consistency in environmental management practices across all sites and to drive continuous improvement.
6. Governmental EMS: This is an EMS developed by a governmental agency or public sector organization to manage its environmental impacts and comply with environmental regulations.

Each EMS standard has its own unique requirements and guidelines, and organizations can choose the one that best suits their needs and objectives.

Certifications in EMS

1. LEED (Leadership in Energy and Environmental Design): This is designed to promote sustainable building practices and reduce the environmental impact of buildings.
2. Carbon Trust Standard: A certification program that recognizes organizations for their efforts to reduce their carbon footprint and manage their environmental impact.
3. Green Globe: A certification program for the tourism industry designed to promote sustainable tourism practices and reduce the industry's environmental impact.

How to develop an environmental management system plan?

Developing an effective EMS plan is often a complex and frustrating process, but it yields significant benefits if you take the time to implement it properly.

1. Establish objectives and targets: Determine what you want to achieve with your EMS plan and set measurable goals to help guide your efforts.
2. Conduct a baseline assessment: Conduct an initial evaluation of your organization's environmental impact and identify areas for improvement.
3. Develop a management structure: Assign responsibilities for implementing the EMS plan, establish procedures for monitoring progress, and designate a team to oversee the process.
4. Create an action plan: Identify specific actions to be taken to achieve your objectives and targets, including timelines, resource requirements, and performance indicators.
5. Implement and train: Put your plan into action, including training employees, implementing new processes, and monitoring progress.
6. Monitor and review progress: Regularly review your EMS plan and track progress against your objectives and targets, making adjustments as necessary.

What are the different techniques for managing EMSs?

Environmental management system techniques refer to various methods used by organizations to manage and improve their environmental performance.

Some of the most common EMS techniques include:

1. Environmental Auditing: This involves systematically reviewing an organization's environmental practices, processes, and systems to identify areas for improvement.
2. Life Cycle Assessment (LCA): This technique helps organizations understand the environmental impacts of their products or services throughout their life cycle, from raw material extraction to disposal.
3. Environmental Performance Indicators (EPIs): EPIs are metrics used to measure and track an organization's environmental performance over time.
4. Risk Assessment: This technique involves identifying and assessing potential environmental risks and developing strategies to mitigate them.
5. Environmental Impact Assessment (EIA): This is a process used to evaluate the potential environmental impacts of a proposed project or development.

To operate an EMS effectively at scale, it's important to prioritize and focus on the techniques that will have the greatest impact on the organization's environmental performance.

5 businesses that used an EMS framework to achieve energy efficiency and cost savings

1. Walmart optimized its lighting and HVAC systems using EMS resulting in annual energy savings of $200 million and an increase in sales per square foot by 3%.
2. Hilton Hotels also used an EMS to adjust their lighting, HVAC, and water usage, which led to annual energy savings of $74 million and a reduction in greenhouse gas emissions by 20%.
3. Staples achieved an annual energy savings of $1 million in the US and increased sales per square foot by 5% by implementing energy-efficient lighting and HVAC systems.
4. Kohl's achieved a total of 24% reduction in consumption across more than 110 million square feet by optimizing lighting and HVAC systems and increased sales per square foot by 6%.
5. The University of California optimized its lighting and HVAC systems across its campuses, resulting in annual energy savings of $21 million and a reduction in greenhouse gas emissions by 22%.
6. H&M optimized energy consumption across retail stores using EMS, which resulted in annual energy savings of $12 million and a reduction in greenhouse gas emissions by 25%.

Tips to operate your EMS efficiently at scale

Enterprises can follow advanced tips to operate an EMS more efficiently at scale:

• Use data analytics tools to collect and analyze environmental data, such as energy consumption, water usage, and waste generation, to identify areas of improvement.
• Regularly audit your EMS to ensure effectiveness and efficiency and identify improvement areas.
• Train employees on the importance of environmental management and their role in maintaining the EMS.
• Engage all stakeholders in your EMS, including customers, suppliers, and local communities.
• Continuously improve by setting new goals and targets, implementing new technologies and best practices, and measuring progress with performance monitoring.

Benefits of an environmental management system

• Identify and mitigate environmental risks with data-driven decisions
• Set measurable objectives and targets
• Implement programs and procedures to achieve those targets
• Comply with environmental regulations
• Increase resource efficiency
• Demonstrate a commitment to environmental responsibility and sustainability
• Minimize the impact of environmental incidents or accidents

Cons of environmental management systems

Implementing an EMS can be costly, time-consuming, and complex, particularly for smaller organizations without the necessary resources or expertise.

However, the benefits far outweigh the drawbacks. EMSs help organizations save more money in the long run by reducing waste, improving efficiency, and minimizing environmental risks.

They also enhance an organization's reputation, leading to improved relationships with stakeholders, increased customer loyalty, and better access to financing and investment opportunities.

How to build a team for EMS development, implementation, and success?

To create a successful EMS team, identify key stakeholders, including senior management, environmental staff, and representatives from each department.

Typical roles in EMS teams include:

• EMS champion: Typically an individual who has a strong passion for environmental management and sustainability and acts as an advocate for the EMS within the organization. They are responsible for promoting awareness of the EMS among employees, encouraging participation, and coordinating with the EMS team.
• EMS Manager: Responsible for overseeing the entire EMS and ensuring compliance with relevant regulations and standards. Also responsible for setting goals, developing procedures, and reporting progress.
• EMS Coordinator: Supports the EMS Manager in implementing and maintaining the EMS. Helps to develop procedures and ensures that employees are trained and aware of their responsibilities.
• Environmental Officer: Focuses on managing the environmental aspects of the organization's operations and implementing the EMS. Helps to identify and assess environmental risks and opportunities.
• Operations Manager: Ensures that the EMS is integrated into the organization's operations and that employees are aware of their responsibilities. Monitors progress and reports to the EMS Manager.
• Employee Representatives: Act as a liaison between employees and the EMS team. Help to raise awareness of the EMS and ensure that employees are engaged and involved in its implementation.

Be sure to provide team members with the necessary training and resources to implement and manage the EMS effectively. Encourage collaboration and continuous improvement, and regularly review and adjust the team structure as necessary.

Taking the first step towards decarbonization

At the core of all energy management challenges is the problem of silos, which creates challenges to benchmark and manage energy strategically across the enterprise, caused by multiple point systems at every store and decentralized ownership of energy initiatives.

What if you could use the cloud to remotely control and deploy different strategies across locations and realize energy savings compounded across stores, creating a much more significant impact on your operating margins?

What works for store A can be replicated and tested in stores B-Z remotely and without the need for going through painful integrations for point solutions from various vendors at every location.

Facilio, a cloud-based supervisory platform, makes this possible. It opens up opportunities to leverage smarter and more cost-effective alternatives.

This allows you the freedom and flexibility to deploy advanced energy optimization strategies like refrigeration suction pressure optimization, condenser valve strategy, dynamic electronic valve (EEV) control, and more at a portfolio level.

You can also configure rules to automatically adjust HVAC and lighting systems based on occupancy, weather conditions, and peak usage, enabling you to improve the energy bottom line and boost operational efficiency within only weeks from deployment, not years.

There's a smarter, more cost-effective, and faster way to identify, implement, and see value from your energy management investments, and we'd love to help you enable this journey for your organization!