Municipality of Aalborg, Denmark

Environmental Management Agreements: Facilitating more environment- friendly production processes in small and medium sized companies, by developing a manual for the implementation of Environmental Management Systems and concluding Environmental Management Agreements with companies.

Abstract

The aim of this project, which was initiated in 1990 by the Municipality of Aalborg, is to secure a continuous reduction in business undertakings' consumption of resources with associated environmental impact by making Environmental Management Agreements with small and medium sized enterprises. The agreements aim at more sustainable production processes through the introduction ofEnvironmental Management Systems.

The agreements are drawn up with individual companies or with sectors in the Municipality of Aalborg on implementing Environmental Management Systems in accordance with instructions provided in a manual. Agreements can also be drawn up with companies which already have implemented Environmental Management Systems. In this case, the agreements aim to secure a continuous co-ordination between the Environmental Management Systems of the companies and the inspection of the municipality.

Objectives

By facilitating the implementation of Environmental Management Systems together with dedicated environmental management, the Municipality of Aalborg aims to help small and medium sized enterprises reduce their environmental impact. The municipality can be of help in two ways: by developing a manual for implementing Environmental Management Systems and by entering into an Environmental Management Agreement with the company involved.

Project Status

The project was initiated through a pilot project in which three companies with a demonstrated interest in contributing to solving environmental problems participated. The environmental management manual was developed within the pilot project. Today these companies have edified and introduced Environmental Management Systems. The manual has been developed further in six other companies, which also have accomplished and implemented environmental management. The manual will be published at the beginning of 1997 and will be offered to all interested companies in the municipality.

Background Information

In connection with the candidature of Aalborg as Green City of Denmark, in 1992, distinctions between industry/trade and the municipality made a streamlined environmental effort possible through private/municipal co-operation. Consumers, investors, authorities, etc., are increasingly interested in environment-friendly and sustainable production. More companies want to adopt a strategy that takes the long-term future into account. Environmental management will naturally be part of good management combined with quality control. Companies with environmental management are in better control of the consumption of raw materials, subsidiary materials and energy. Consumption of resources and the amount of waste are reduced, which offers a competitive advantage, while reducing the environmental strain at the same time.

The Municipality of Aalborg has wanted to influence this development by disseminating knowledge of environmental management among AalborgÕs small and medium sized enterprises through the Environmental Management Agreements project. Agreements have been drawn up since 1993 with companies which have implemented environmental management.

Implementation

Strategy

A manual, which will help enterprises to introduce Environmental Management Systems into their processes, was developed in co-operation with trade and industry. The manual is to be used in connection with the Aalborg municipal counselling and guidance of companies wanting to start environmental management.

Business sector agreements will be entered into following discussion between the municipality and the interested business. Time schedules will be agreed on an individual basis with the business concerned. The Environmental Management Agreements are not legally binding, but will commit private business and local government to purposeful and cooperative efforts toward the introduction of Environmental Management Systems in the participating business.

Striking in this project is that the main tool (i.e. the manual) to be used for achieving Environmental Management Agreements between the municipality and its small and medium sized enterprises is developed within the same project as the actual drawing up of agreements.

Activities

In connection with the pilot project, agreements have been entered into with companies wishing to set up an Environmental Management System, but also with companies which already have implemented such systems. The purpose of the latter type of agreement is to secure an ongoing co-operation on giving priority to efforts and action plans and to contribute to a close dialogue between the companies and the municipality.

From the implementation of Environmental Management Systems it is a small step towards the implementation of cleaner technology or even more far reaching environmental measures. Cleaner technology aims to reduce the total stress on the environment, from the extraction of raw material, through the manufacturing of the product, to consumption and disposal of the product. Should the company also wish to include evaluations of the finished product in terms of its impact on the environment during use and disposal (life cycle evaluations), this too is possible under the terms of this project.

A standardised agreement, according to which all relevant subjects for the project are described and formulated, has been developed for companies. A timetable for each subject within the project is set in a schedule. The order of subjects may be changed if it is seen as expedient.

No Subject Jan. Feb. ...... Nov. Dec.
1 Deciding the environmental policy of the enterprise
2 Organising the environmental management programme
3 Delimitation
4 Involvement of employees
5 Initial environmental review
6 Selectrion of fields of action
7 Environmental Review
8 Proposal solution/analysis
9 Programme
10 Executions of the programme
11 Progress report
12 New objectives
13 Implementation of the environmental management system
14 Environmental manual (possibly integrated with quality manual
15 Validation

The agreement further mentions that confidential information about the production processes of the enterprise must be kept secret, that the project and its results shall be announced to the public and that the agreement may be denounced by both parties without advance notice.

The resources used (both human and monetary) in each Environmental Management Agreement by both private and public partners need to be specified. These budgets may be changed in consultation with the partners. Both partners must make a monetary reservation for the hiring of third parties. In the long run, financial gains are to be expected for the company involved through the reduction of unnecessary environmental costs.

Partners

The active role undertaken by the municipality in connection with the introduction of an environmental management system in a company will be primarily in providing guidance and inspiration. At the same time the municipality will act, to the extent that this is possible, as an advisor to the company in (among other things) energy and water saving issues.

The introduction of Environmental Management Systems in a company requires full participation and involvement, both among management and employees. The responsibility for such a system should therefore be placed both with the management and in the daily manufacturing process. A project organisation must be established in connection with each agreement. This will comprise a management group represented by management both from the company and the municipality (Department of Business and the Environment). A steering group is set up to provide strategic guidance, whereas project groups, comprising employees of the business and the municipality, will undertake the day to day work.

The company involved must specify, for each subject of the agreement, the man hours it will consume for both the municipal departments and the enterprise involved. The municipal departments involved are: the Administration for Trade, Industry and Environment, the Centre for Energy and the Scavenging Department.

Through these agreements companies become familiar with the municipal view on environmental management, and the municipality gets the opportunity to evaluate the practices of the company and adjust the regular environmental inspection accordingly.

Financing and Resources Used

An estimated 0.8 man-year has been spent annually on the project by the municipality. This resource has been provided by the existing staff of the department. No external consultant has been involved in the project. From the outset, it was the intention of the municipality to gain experiences and know- how from the project. The project has been subsidised by the Commercial Council with DKK 100.000.

Results & Impacts

The main purpose of the project, to create environmental and resource conservation improvements by implementing Environmental Management Systems in Aalborg's industry and trade, has been fulfilled. Furthermore, the project has fulfilled the following secondary purposes:

to create know-how on environmental and energy management;
to get the opportunity to change the order of priorities concerning environmental inspection;
to test new ways of co-operation with industry.

The project has shown that environmental management allows companies to efficiently identify disadvantageous environmental effects and consumption of resources, thus enabling them to make improvements. Environmental Management Systems prove the link between environmental improvements and cost savings. The cooperation with trade and industry on environmental questions have turned out to be very promising. There is a widespread - and still increasing - interest in environmental questions including environmental management in trade and industry. As a supplement to the traditional role of local authorities, the environmental authorities can be used as a partner for cooperation with trade and industry. In addition, the municipality has come to know more about environmental effects and resource consumption through this project than it could have learned through traditional inspection.

The participating companies have profited from the project in terms of financial gains by reducing the resources used and the negative side-effects, and especially through the substantially improved image of the companies.

As a follow-up of the project Environmental Management Agreements II has been developed to assist companies which have implemented Environmental Management Systems and environmental management, in securing continuous contact between the municipality and the company and a continuing discussion of environmental efforts, action plans, etc..

Barriers & Conflicts

No significant barriers or conflicts have been encountered during the project. However, it was difficult for the participating companies to reserve enough time for the project, especially during the development of environmental management, which had to be undertaken alongside the regular operation. In such cases the municipality decided to contribute a few more hours than was planned. This was possible because of the support for the project in the municipal organisation and specifically the support by politicians. Support by the management of the companies involved proved to be indispensable, to the extent that companies which lacked this support had to withdraw from the project.

Transferability

As an idea, the Environmental Management Agreements-project is transferable and applicable to other environmental authorities, as it is a general tool for local environmental authorities to promote environmental management in companies by co-operating with these companies.

Lessons Learned

This project proved that good contacts between the municipality and its industry is crucial for implementing environmental projects from which both parties may benefit. However, in order to maximise the benefits of the co-operation, it is important to carefully plan the project in terms of man-hours and resources.

The City of Aalborg has also learned that a forum or network in which the companies involved in the project can exchange experiences may be a good means to raise interest in the project among other small and medium sized enterprises. The manual will be used in the guidance of such networks.

Further Information

Contact

Mr. P. Mikkelsen, City of Aalborg,
Urban and Environmental Affairs Department,
Mailing address:
Vesterbro 14, P.O. Box 765,
DK-9100 Aalborg,
Denmark
Tel: +45 / 99 - 31 23 80
Fax: +45 / 99 - 31 23 98

References

P. Mikkelsen, Environmental Management Agreement, City of Aalborg, Urban and Environmental Affairs Department, 24.10.1995.
Municipality of Aalborg, Aalborg, Towards the Sustainable City, Aalborg, 1994.
S.L. Thomsen, The development project "Environmental Management Agreements", City of Aalborg, Urban and Environmental Affairs Department, 1994.
Urban and Environmental Affairs Department, Manual for the introduction of Environmental Management Systems for small and medium sized enterprises, Aalborg, 1996.

Acknowledgements

This case study was prepared by EURONET - Zandvoort Ordening & Advies in association with Mr. P. Mikkelsen and Mr. S.L. Thomsen of the Urban and Environmental Affairs Department of the City of Aalborg.