Environmental management certification and environmental performance: Greening or greenwashing?

This article analyzes the contribution of certifiable environmental management standards—such as ISO 14001 and the Eco‐Management and Audit Scheme (EMAS)—to corporate environmental performance. Based on a content analysis of 414 third‐party‐verified environmental statements from EMAS‐registered Spanish organizations, which included information for around 6,700 detailed indicators, a weak improvement in environmental performance was found. Less than half of the analyzed indicators—namely, 48.27%—revealed a net improvement. Similarly, analysis of the justifications of the registered companies for the lack of improvement points to a rather symbolical adoption of the certification, intended to do only the bare minimum. These findings call into question the prevailing opinion about the positive impact of voluntary certifiable environmental management standards on environmental greening. Implications for managers and public policy makers, as well as for other stakeholders, are discussed.     

从ISO14001到EMAS

ISO14001是目前应用最为广泛的环境管理体系标准,而EMAS是欧盟法令发布的自愿性环境管理工具。本文围绕环境绩效、环境评审、环境因素、信息公开、全面合规性、员工参与等方面,分析ISO14001和EMAS两种环境管理工具的相关性和主要差异,为组织从ISO14001升级至EMAS提供参考。     

Global governance in new public environmental management: An international and intertemporal comparison of voluntary standards' impacts

The aim of this paper is to analyse the indirect effects of environmental management system implementation and certification. Specifically, the paper comprehensively assesses the effects of International Organisation for Standardisation (ISO) 14001 and European Union Eco‐Management and Auditing Scheme (EMAS) certification as well as experience with implementing environmental management systems on (a) organisational activities outside the scope of environmental management systems, (b) pollution prevention, and (c) product stewardship. This is done by applying multivariate regression analysis to a large multicountry and multiperiod dataset. The analysis finds heterogeneous effects that are limited specifically as concerns pollution prevention and product stewardship and cannot establish clear links to national business systems. Given this and the differences between environmental management system standards, implications for global governance in the context of new public environmental management and the role of national governments in implementing sustainability, even beyond environmental protection, are discussed. Ultimately, the paper evidences on potential limitations of the major international environmental management system standards ISO 14001 and EMAS in supporting the diffusion of advanced practices such as pollution prevention and product stewardship that are necessary for sustainable development. In doing so, it highlights that government‐led public environmental management remains crucial for organising governance, especially in the context of voluntary standards that are applied internationally.     

Sustainable development carbon pricing initiative and voluntary environmental disclosures quality

Although corporate environmental disclosures have been researched extensively, empirical evidence regarding the indirect impact of carbon pricing on firms' voluntary disclosures is scarce. The objective of this study is to identify the indirect impact of carbon pricing initiatives on the voluntary environmental disclosures (VEDs) of electricity generating companies, analyzed through the lens of institutional theory. This study adds to the growing literature on the determinants of VED, investigating the impact of adoption of the Global Reporting Initiative and ISO 14001 on VED. Secondary data were collected from 2015 annual reports and/or standalone sustainability reports of electricity generating companies from 53 countries around the world. Content analysis approach was adopted for measuring the extent of the quality of VED. Findings of multiple regression analysis suggest that there is an indirect institutional impact of carbon pricing on the quality of VED. This study also finds that, as the form of nongovernment guidance, the Global Reporting Initiative adoption and ISO 14001 certification also have an institutional influence on the VED. VED is also affected by company size although this study reveals no significant relationship of leverage with VED.     

The impact of ISO 14001 on firm environmental and economic performance: The moderating role of size and environmental awareness

This paper analyzes the impact of adopting the ISO 14001 standard on firm environmental and economic performance. In particular, it is argued that the degree of environmental awareness of the society (EAS) and firm size are two factors moderating the effect of ISO 14001 on firm performance. A number of hypotheses are formulated and empirically tested on an international sample of 583 listed companies in 46 countries over the period of 2009–2018. The findings show that (i) ISO 14001 adoption contributes to reducing firm carbon emission intensity and increasing firm profitability; (ii) the impact of ISO14001 on profitability is greater for companies from countries with high EAS and for larger firms; and (iii) the impact of ISO 14001 on carbon intensity is greater for headquartered in countries with low EAS. Managerial and policy implications resulting from the widespread adoption of certifiable environmental standards are also discussed.     

Why do standardized ISO 14001 environmental management systems lead to heterogeneous environmental outcomes?

Institutional theories and resource‐based views have suggested that, although they appear similar externally, standardized management systems may be implemented very differently in different organizations. This variability in implementation may be responsible for the heterogeneous performance of these standardized management systems. The current literature on the environmental impacts of ISO 14001 certification has largely neglected this phenomenon. Drawing on our survey of all US 14001 certificate holders, this study finds that great variability does exist in facilities' implementation of ISO 14001 standards. This heterogeneity has a significant impact on the linkage between ISO 14001 certification and facilities' environmental performance. In particular, we find that facilities that integrate ISO 14001 standards into their daily operations are more likely to report improvements in environmental performance. Environmental improvements are also more likely to occur in facilities that include performance management elements in their ISO 14001 standards. Furthermore, both types of facility are more likely to report that ISO certification contributes to this improvement. Neglecting the heterogeneity in facilities' implementation of ISO 14001 standards may explain the instability of findings from the empirical literature investigating the impacts of ISO 14001 certification. Theoretically, this paper informs the understanding of heterogeneous organizational behavior under isomorphic pressures. Copyright © 2008 John Wiley & Sons, Ltd and ERP Environment.     

Explaining the impact of ISO 14001 on emission performance: a dynamic capabilities perspective on process and learning

I draw upon the dynamic capability model to explore how new process standards influence the ability of manufacturing facilities to improve environmental performance by reducing toxic emissions. The process standards studied are the ISO 14001 environmental management standards, in use since 1996. Hypotheses are developed to account for how early adoption of ISO 14001 and experience with the standards influence emission levels. These hypotheses are tested using a large sample of electronics manufacturing facilities and data from 1996 through 2001. Consistent with theoretical expectations, analyses show that being one of the first facilities to adopt ISO 14001 was associated with lower emissions. Further, a separate effect is due to experience: the longer a facility operated under ISO 14001, the lower its emissions. The paper discusses the implications of these results for theory and policy development. Copyright © 2007 John Wiley & Sons, Ltd and ERP Environment.     

Driving sectoral sustainability via the diffusion of organizational eco‐innovations

Using insights from institutional literature, the resource‐based theory of the firm, and internationalization, we explain variations in the diffusion of organizational eco‐innovations. Studies have previously reported that the drivers of eco‐innovation are regulatory pressures, technology push, market pull, and firm factors. But relatively little attention has been paid to nontechnological forms of eco‐innovation, such as environmental management systems (EMS). Consequently, how exactly to encourage EMS adoption across sectors is still unclear. We attempt to address this question by combining sectoral panel data (2009–2014) from a number of sources in Spain. The econometric analysis reveals that environmental policy is driving the adoption of ISO 14001 largely due to differences across sectors in energy and pollution intensity. In addition, the adoption of ISO 9001 increases the use of ISO 14001 in industry because of complementarities between the two systems. Third, in highly internationalized sectors, firms adopt a greater amount of ISO 14001.     

An empirical investigation of environmental performance and the market value of the firm

This paper analyzes the shareholder value effects of environmental performance by measuring the stock market reaction associated with announcements of environmental performance. We examine the market reaction to two categories of environmental performance. The first category includes 417 announcements of Corporate Environmental Initiatives (CEIs) that provide information about self-reported corporate efforts to avoid, mitigate, or offset the environmental impacts of the firm's products, services, or processes. The second category includes 363 announcements of Environmental Awards and Certifications (EACs) that provide information about recognition granted by third-parties specifically for environmental performance. Although the market does not react significantly to the aggregated CEI and EAC announcements, we find statistically significant market reactions for certain CEI and EAC subcategories. Specifically, announcements of philanthropic gifts for environmental causes are associated with significant positive market reaction, voluntary emission reductions are associated with significant negative market reaction, and ISO 14001 certifications are associated with significant positive market reaction. The difference between the market reactions to the CEI and EAC categories is statistically insignificant. Overall, the market is selective in reacting to announcements of environmental performance with certain types of announcements even valued negatively.     

Strategies for Developing an Environmentally Sustainable Supply Chain: Differences Between Manufacturing and Service Sectors

This research illuminates the debate on whether there are differences between the manufacturing and service sectors in the matter of developing a sustainable environmental supply chain. Over the past 5 years a survey has been conducted with 800 large European companies, of which half are in the manufacturing sector and half in the service sector. The hypotheses within the survey are related to strategies for developing an environmental supply chain. They were derived from a literature review and were tested by means of a chi‐square test. The survey questionnaire enabled the respondents to give some viewpoints about the hypotheses. In this way, strategies for developing the supply chain such as ISO 14001, the Eco‐Management and Audit Scheme (EMAS), Life Cycle Assessment (LCA), auditing, waste management systems, reverse logistics, environmental indicators, remanufacturing and reuse have been investigated. Results show interesting and unexpected differences between manufacturing and service sectors that can lead to further research, practical implications and even suggestions for the surveyed companies. For instance, the viewpoints of manufacturing and service industries differ over ISO 14001 and EMAS implementation in the supply chain. In addition, service industries approach the implementation of auditing, reverse logistics, reuse and remanufacturing in a way different from that of manufacturing. Other strategies are considered essential by both sectors. Copyright © 2013 John Wiley & Sons, Ltd and ERP Environment.     

Using ISO 14001 to promote a sustainable supply chain strategy

Formally adopted in 1996 by the International Organization of Standardization, ISO 14001 represents a voluntary international environmental standard, which will likely be adopted by a vast majority of corporations. Its major focus is on the structure, implementation and maintenance of a formal environmental management system. Despite its international acceptance, ISO 14001 is surrounded by controversy and criticism. The literature is clearly divided in its assessment of ISO 14001, which is viewed as a variant of total quality environmental management or a paper‐driven process of limited value. In this study, case‐based research is used to address the competing views of the standard to show that ISO 14001 registration can be leveraged across the supply chain into a competitive advantage. By looking at ISO 14001 registered firms, we compare different amounts of integration and sustainability in the supply chain. We then posit several research propositions to provide an empirical framework for the impacts of ISO 14001 on supply chain design and how it will evolve in the future. Copyright © 2010 John Wiley & Sons, Ltd and ERP Environment.     

Navigating through firm–environmental groups' relationships: The impact of societal trust on corporate environmental strategy

This study examines the impact of societal trust on corporate environmental strategy with particular reference to the firm–environmental groups' relationship, which has received very little attention in trust literature. Using data on 2332 firms from 16 countries, we find that societal trust exerts a negative effect on the likelihood of ISO 14001 certification. The negative relationship between societal trust and the likelihood of ISO 14001 is more pronounced for firms having intense collaboration with environmental groups. However, this effect appears to be weak in higher market uncertainty. These findings, besides significantly adding to the literature, have practical and managerial implications.     

Environmental Management Systems and Local Community Perceptions: the Case of Petrochemical Complexes Located in Ports

Most oil refineries and factories producing basic chemical products are located in port areas, with the result that industrial complexes potentially have a strong environmental impact on their area of influence. These externalities result in a loss of welfare for citizens residing in neighbouring areas. In a context of sustainable development, companies must integrate concerns about the natural environment in their business strategy. External stakeholders, as residents, find it difficult to visualize the actions firms take to reduce their environmental impact, and the adoption of voluntary certified environmental management systems (EMSs) acts as a signal indicating the adequate environmental behaviour of these companies. These certifications enable companies to achieve the social legitimacy they need for long‐term survival and competitiveness. In the context of a petrochemical industrial complex located in the port of Castellón (Spain), this paper primarily discusses whether such certifications – which act as signals of firms’ desirable environmental conduct – translate into higher trust in firms and lower risk perception by residents. Contrary to what might be expected, despite the widespread use by companies of voluntary and certified EMSs, the research findings confirm a relatively high citizen perception of risk regarding the industrial complex and a low trust in companies. On the other hand, the findings also show a low trust in the public institutions responsible for authorizing and monitoring firms’ activities and for enforcing possible sanctions in non‐compliance cases. Copyright © 2013 John Wiley & Sons, Ltd and ERP Environment     

Companies' participation in EMAS: The influence of the public regulator

When adopted in 1993, the European Union's Eco‐Management and Audit Scheme (EMAS) was viewed as emblematic of a new policy approach involving more flexible and market‐based environmental instruments. A few years after coming into force, EMAS does not appear to be a tremendous success in terms of industrial participation. Apart from in Germany and Austria, participation is insignificant and comparatively very far behind that in ISO 14001, the environmental management standard of the International Organization for Standardization. The paper seeks to explain this modest result. It focuses on the influence of the European and national regulators on industrial participation. Using a comparative analysis of the implementation of EMAS in France, Germany, the Netherlands and the United Kingdom, it argues that the most powerful participation leverage has been the granting of regulatory relief for registered companies. This leads one to be pessimistic as to the future of EMAS. The possibility and scope for a lighter regulatory touch are primarily nationally specific since they are related to the national regulatory traditions. Consequently, the systematic and comprehensive use of this leverage is unlikely to generalize. Copyright © 2002 John Wiley & Sons, Ltd. and ERP Environment.     

ISO 14001 – experiences,effects and future challenges: a national study in Austria

More than 60000 organizations worldwide have implemented environmental management systems (EMSs). About 800 of them are located in Austria. As Austria was one of the leading countries in promoting the EU scheme EMAS, and as there has been no specific study on Austrian experiences with ISO 14001, the purpose of this study is to describe the experiences with and effects of ISO 14001 in Austria. The results show that ISO 14001 often leads to reduced environmental impact, especially in the area of waste. A strong driving force behind implementation is the expected improvement of an organization's image. The average repayment time on an investment in an EMS is less than two years. Legal compliance tends to be difficult to implement, but on the other hand it works well in daily practice. To develop an EMS into a sustainability management system, the two most important challenges are to improve coordination between the EMS and the organization's strategies and to synchronize the EMS with central value chains. Copyright © 2006 John Wiley & Sons, Ltd and ERP Environment.     

Does the Eco‐Management and Audit Scheme Foster Innovation in European Firms?

This paper studies whether environmental management systems can spur eco‐innovation, analyzing EMAS (Eco‐Management and Audit Scheme) adoption and patented innovations (at the European Patent Office) at firm level. It uses an original panel database of 30 439 European firms belonging to all sectors from 2003 to 2012. An original instrumental variable is implemented to control for potential endogeneity. The analysis reveals that EMAS adoption is conducive to more innovation at the firm level. The results vary across countries and sectors. In particular, EMAS is positively related to green patents for medium and low technology manufacturing. Copyright © 2017 John Wiley & Sons, Ltd and ERP Environment     

Does quality management improve the internalization of environmental practices? An empirical study in Africa

This article analyzes the role of quality management in the internalization of environmental practices. A qualitative study based on interviews with 35 practitioners was conducted in three African countries (Cameroon, Senegal, and Ivory Coast). The results highlight the contrasting roles played by the main reference model for quality management—International Organization for Standardization (ISO) 9001—in the internalization of the international standard for corporate environmental management—ISO 14001—with positive points related to formal and documentary aspects and perverse effects such as increased bureaucracy and a focus on quality at the expense of the environment. The results also point to four configurations of integration of environmental practices according to the level of quality management internalization and the level of institutional pressure to adopt corporate environmental management: poor integration, partial integration, substantial integration, and sustainable integration.     

Voluntary adoption of ISO 14001 in Japan: mechanisms,stages and effects

This paper seeks to understand what factors contribute to voluntary adoption of the ISO 14001 environmental management system by private sector facilities in Japan. A model based on regulatory, competitiveness, social responsibility and organization theory is applied to 1999 survey data. Analysis shows systematically different factors to be important indicators of voluntarism in different industries and for facilities at different stages of certification. First adopters and second adopters appear to be fundamentally different types of organizations driven by different internal and external factors. Although results do not indicate a clear causal linkage between ISO adoption and greening activity, evidence shows that at least two different stages of adoption have taken place in Japan and that ISO adoption is associated with environmental action. Copyright © 2002 John Wiley & Sons, Ltd. and ERP Environment     

Environmental Policies for Sustainable Development: An Analysis of the Drivers of Proactive Environmental Strategies in the Service Sector

This article examines the drivers of environmental proactivity in the service sector. Hypotheses were tested using multiple hierarchical regression analysis with data from a sample of 41 managers in Spanish environmental consulting companies. Results show statistically significant relationships between (1) managers’ attitude towards sustainable development, (2) positive short‐term firm performance and (3) the strategic attitude of environmental consulting firms and the adoption of proactive environmental strategies by the studied companies. This article is pioneering in the analysis of drivers of corporate proactive environmental strategies in the consultancy sector. The findings have practical implications for policy‐makers, investors and other agents interested in a better management of the environment. Economic incentives such as subsidies to environmental training programmes for managers can induce changes in cognitive components of managers’ attitudes. Education policies could also affect managers’ attitudes towards the environment. Companies may also encourage attitude change by providing their managers with financial assistance to receive environmental training. External assistance to develop a strategic attitude could be an interesting policy to encourage voluntary environmental initiatives. Finally, fiscal deductions, tax breaks or subsidies to those companies interested in managing the environment can be effective incentives for those firms facing a weak short‐term financial situation. Copyright © 2014 John Wiley & Sons, Ltd and ERP Environment     

Setting Strategies outside a Typical Environmental Perspective Using ISO 14001 Certification

The scope of this research is to evaluate whether ISO 14001 certification could be used as a strategic vehicle for achieving objectives that are not strictly linked to a technical and operative perspective, and to determine what these objectives are. In order to find these objectives, a review of the literature was first conducted to determine what they were and seven hypotheses emerged. The hypotheses concerned the possibility of using ISO 14001 as a strategy for achieving objectives related to finance and turnover, customer satisfaction, community satisfaction, employee satisfaction, health and safety in the workplace, and growth and skills of employees. The validity of each hypothesis was tested via a survey of 164 managers of European manufacturing companies. This research produced interesting findings, some of which contradicted the findings of other research, in particular for financial and turnover objectives. In addition, the research revealed interesting relationships between employees' skills and issues such as Design for the Environment and Sustainability. Furthermore, some limitations of ISO 14001 with respect to the Eco‐Management and Audit Scheme regulation emerged. Copyright © 2017 John Wiley & Sons, Ltd and ERP Environment