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Global Environmental Management Principles

Global Environmental Management Principles European Environmentai Law Revie~v ,Llz:ch 1993 Regimes for Oi that, to put it inelegantly, if the amount spilled is "gross" then the courts will consider that "gross negligence" has been involved. Therefore it is considered that in practice in the USA shipowners cannot rely upon any limitation of liability in the event of an oil spill. In addition, OPA calls for the provision of certificates of financial responsibility providing evidence of insurance coverage up to the limitation amounts provided (it is considered that insurers would nor be liable beyond the limitation amounts, even if the shipowner himself lost the right to limit), and permitting direct action against the insurer who has given the certificate. The maximum applicable limit under OPA would, in practice, (because of the fact that tankers over about 90,000 gross tons cannot get into US ports apart from the Louisiana Off-shore Oil port (LOOP), which is covered by special regulations imposing lower liability in any event), be approximately $120 million. Therefore in principle the OPA limits of liability could be covered by the P&I clubs, but they have so far refused to offer certificates of financial responsibility. This means that any shipowner who spills oil in the USA may well find that he has completely inadequate insurance, even granted that the P&I clubs may well respond to indemnify him, despite having refused to give a certificate of financial responsibility. Conclusion As has been outlined above, the CLCi Fund Convention regime provides a very simple and sure way of dealing with major oil spill incidents which has proved itself over and over again and certainly looks like proving itself once more in the case of the "Braer" with which we are concerned. Environments Management View from America The Popham Haik Law Firm* laws and regulations in the environmental, health, and safety areas. Legislation in these areas is increasingly interwoven and interdependent. Indeed, this consolidation is extending into the products liability and employee safety areas as well. We can easily foresee the time in this decade when these areas will all be treated together. Therefore, a company must consider establishing a multi-functional process which unifies and combines responsibility in these areas to ensure cross-departmental co-ordination. There is also a strong movement, primarily through ISO, to establish global principles for auditing and compliance programmes. T h e I S 0 9000 series (in Britain BS 5750) is becoming increasingly well known as companies rush to comply and get certified to its provisions. Many corporations are requiring suppliers to be registered as being in compliance with these standards. Corporations are seeking registration to assure themselves that they are conforming to at least minimal requirements for compliance programmes. Consumers are increasingly looking towards this type of certification for assurance that compliance principles are a real fact of life for the companies that consumers choose to purchase products from. These principles primarily reflect what a company is doing today, although they contain provisions (quite often ignored) which look towards future compliance and improvement of a company's programme and products. BS 7750 has incorporated these basic concepts in the creation of recommended environmental management principles. The third trend is the sudden (and some say faddish) attention on Total Quality Management Principles (TQM). As competition increases and the world economy worsens, attention to quality and quality service differentiates survivors from the vanquished. The popularity of these programmes often obscures an undue focus and attention on inward-looking quantitative programmes which are sometimes overly enmeshed in detail, ignoring the larger picture (some speak of TQP, Total Quality Paralysis). Nonetheless, these programmes have contributed enormously to improvements in company products and procedures because of their focus on benchmarking, competitiveness, and meeting customer expectations. Lastly, the proposed ECO Audit Directive (previously criticized in this column) is reflective of the trend towards verification and publication of a company's environmental performance. Recent criticisms in the Financial Times and other periodicals of unsupported claims to environmental achievements in annual Global Environmental Management Principles Summary There is a rather extraordinary trend gathering world-wide momentum. It is the attempted creation of global environmental management principles for corporations. Through the establishment of British Standard 7750, Britain has taken the lead in pointing us in the direction of this trend. However, BS 7550 lacks some essential ingredients which would make it a satisfactory guideline for establishing a company's management systems. The International Standards Organization (ISO) is working towards the creation of improved global standards which may come closer to meeting this need. The Trend Particularly in Europe, but also in Canada and the United States, there is a trend rowards the consolidation of *Minneapolis, Denver, "iliami, W~shtngron DC, Leipzig, Srurfgarr, Prupe, Bv~sszls European Environmental Law Revrew March 1993 obal Environments Management reports have given impetus to the perceived need for required documentation and publication of a company's performance. company services. They appear to be focused on performance standards as opposed to specific quantitative requirements. The I S 0 intends to include a broad range of management activity from establishment of policy goals, to the assessment of environmental impacts through system design, to operational controls, auditing, and training. It is proposed to include environmental management standards, auditing standards and performance criteria, as well as ECO labelling and life-cycle analysis. developments in those planning efforts. Some useful references might be made to the Responsible CareT" Program adopted by the Chemical Manufacturers Association's Board of Directors (CIMA). Following the creation of a voluntarv Communitv Awareness and Emergency Response (CAER) initiative in 1985, which was designed to reduce the risk of injury to employees and local residents from a chemical company's operations, Responsible CareT" was adopted to accomplish additional goals. Those goals were to improve companies' practices and procedures in the operation of the plans, to reduce waste and accidents and basically to open companies up to increased public communication, dialogue and public involvement. One of the themes emphasized in the Responsible CareT" Code is "continuance improvement." This theme emphasizes that Responsible CareT'M is an ongoing process with the goal of "continuance improvement and ongoing reduction of risk." One of its recommended management practices recommends a system that "makes health, safety, and environmental impact . . . key considerations in designing, developing, and improving products and processes." The Development of Global Environmental Management Principles These trends have been consolidated by I S 0 in its current effort to create Global Environmental Management Principles which would be the standards by which any company's performance would be judged in the world marketplace. T h e ISO-SAGE Committee (Strategic Advisory Group on the Environment) was formed in 1991 as an ad hoc advisory group to determine whether there was a need for standardization in the global environmental management area, and what the role of I S 0 might be. It is expected that a technical committee will be formed from the SAGE Committee. This technical committee will work towards the adoption of environmental management system requirements. They state this will be an attempt to combine all of the trends noted above into one set of management principles. By this, they intend to incorporate the "status quo" aspects of I S 0 9000 and BS 7750, the more quality oriented principles of TQIM, and the documentation and publication aspects of the ECO Audit Directive and similar provisions in the United States and Canada. It is unclear as to whether they intend to incorporate in these principles a process for going "beyond compliance" by recommending procedures which would attempt to ensure that there would be a continued monitoring process and a focus on improvement on environmental performance. The writer has heard that they are projecting creation of these proposals by 1994 and adoption by 1995. These Environmental Management Principles are intended to create a one-world standard for environmental management, to achieve transparency between world-wide environmental performance standards, to include third-party certification, and to have a clear impact on products planning and products standards. It is unclear to what extent they expect to get into Observations and Comments This development is important. It signifies the fact that increasingly we are a global village. It underscores the importance of a company establishing a global environmental safety and health plan for its world-wide operations. It emphasizes that a company's operations and procedures, as well as its products, will be expected to be open for scrutiny by an increasingly critical public, as well as vigilant governmental regulatory bodies. The United States' sentencing standards, as well as developments in Europe which give credit to companies which have adopted such plans and procedures, demonstrate that there are significant benefits to be obtained by such planning. Experts in the area agree that improved profitability can also be the result and not just an improved company image. However. to trulv be successful in achieving these objectives, these principles must include attention both to monitoring programmes and a process for continued improvement of a company's performance. T h e environmental review process of BS 7750, as well as the provisions of I S 0 9004, have begun to point a way towards this type of proactive But evaluation and im~rovement. neither of them go far enough, nor does TQM meet this need. It is vitally important that these principles build in to their recommendation the kind of process, procedures, and systems which will continually impel a company towards evaluating and improving on its past performance. If companies are currently engaging in doing environmental planning, they would do well to consider these Conclusion It is this kind of focus that any set of global environmental management principles must achieve if they are truly to lead the way towards responsible company practices and a cleaner environment. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png European Energy and Environmental Law Review Kluwer Law International

Global Environmental Management Principles

European Energy and Environmental Law Review , Volume 2 (3) – Mar 1, 1993

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Kluwer Law International
Copyright
Copyright © Kluwer Law International
ISSN
0966-1646
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Abstract

European Environmentai Law Revie~v ,Llz:ch 1993 Regimes for Oi that, to put it inelegantly, if the amount spilled is "gross" then the courts will consider that "gross negligence" has been involved. Therefore it is considered that in practice in the USA shipowners cannot rely upon any limitation of liability in the event of an oil spill. In addition, OPA calls for the provision of certificates of financial responsibility providing evidence of insurance coverage up to the limitation amounts provided (it is considered that insurers would nor be liable beyond the limitation amounts, even if the shipowner himself lost the right to limit), and permitting direct action against the insurer who has given the certificate. The maximum applicable limit under OPA would, in practice, (because of the fact that tankers over about 90,000 gross tons cannot get into US ports apart from the Louisiana Off-shore Oil port (LOOP), which is covered by special regulations imposing lower liability in any event), be approximately $120 million. Therefore in principle the OPA limits of liability could be covered by the P&I clubs, but they have so far refused to offer certificates of financial responsibility. This means that any shipowner who spills oil in the USA may well find that he has completely inadequate insurance, even granted that the P&I clubs may well respond to indemnify him, despite having refused to give a certificate of financial responsibility. Conclusion As has been outlined above, the CLCi Fund Convention regime provides a very simple and sure way of dealing with major oil spill incidents which has proved itself over and over again and certainly looks like proving itself once more in the case of the "Braer" with which we are concerned. Environments Management View from America The Popham Haik Law Firm* laws and regulations in the environmental, health, and safety areas. Legislation in these areas is increasingly interwoven and interdependent. Indeed, this consolidation is extending into the products liability and employee safety areas as well. We can easily foresee the time in this decade when these areas will all be treated together. Therefore, a company must consider establishing a multi-functional process which unifies and combines responsibility in these areas to ensure cross-departmental co-ordination. There is also a strong movement, primarily through ISO, to establish global principles for auditing and compliance programmes. T h e I S 0 9000 series (in Britain BS 5750) is becoming increasingly well known as companies rush to comply and get certified to its provisions. Many corporations are requiring suppliers to be registered as being in compliance with these standards. Corporations are seeking registration to assure themselves that they are conforming to at least minimal requirements for compliance programmes. Consumers are increasingly looking towards this type of certification for assurance that compliance principles are a real fact of life for the companies that consumers choose to purchase products from. These principles primarily reflect what a company is doing today, although they contain provisions (quite often ignored) which look towards future compliance and improvement of a company's programme and products. BS 7750 has incorporated these basic concepts in the creation of recommended environmental management principles. The third trend is the sudden (and some say faddish) attention on Total Quality Management Principles (TQM). As competition increases and the world economy worsens, attention to quality and quality service differentiates survivors from the vanquished. The popularity of these programmes often obscures an undue focus and attention on inward-looking quantitative programmes which are sometimes overly enmeshed in detail, ignoring the larger picture (some speak of TQP, Total Quality Paralysis). Nonetheless, these programmes have contributed enormously to improvements in company products and procedures because of their focus on benchmarking, competitiveness, and meeting customer expectations. Lastly, the proposed ECO Audit Directive (previously criticized in this column) is reflective of the trend towards verification and publication of a company's environmental performance. Recent criticisms in the Financial Times and other periodicals of unsupported claims to environmental achievements in annual Global Environmental Management Principles Summary There is a rather extraordinary trend gathering world-wide momentum. It is the attempted creation of global environmental management principles for corporations. Through the establishment of British Standard 7750, Britain has taken the lead in pointing us in the direction of this trend. However, BS 7550 lacks some essential ingredients which would make it a satisfactory guideline for establishing a company's management systems. The International Standards Organization (ISO) is working towards the creation of improved global standards which may come closer to meeting this need. The Trend Particularly in Europe, but also in Canada and the United States, there is a trend rowards the consolidation of *Minneapolis, Denver, "iliami, W~shtngron DC, Leipzig, Srurfgarr, Prupe, Bv~sszls European Environmental Law Revrew March 1993 obal Environments Management reports have given impetus to the perceived need for required documentation and publication of a company's performance. company services. They appear to be focused on performance standards as opposed to specific quantitative requirements. The I S 0 intends to include a broad range of management activity from establishment of policy goals, to the assessment of environmental impacts through system design, to operational controls, auditing, and training. It is proposed to include environmental management standards, auditing standards and performance criteria, as well as ECO labelling and life-cycle analysis. developments in those planning efforts. Some useful references might be made to the Responsible CareT" Program adopted by the Chemical Manufacturers Association's Board of Directors (CIMA). Following the creation of a voluntarv Communitv Awareness and Emergency Response (CAER) initiative in 1985, which was designed to reduce the risk of injury to employees and local residents from a chemical company's operations, Responsible CareT" was adopted to accomplish additional goals. Those goals were to improve companies' practices and procedures in the operation of the plans, to reduce waste and accidents and basically to open companies up to increased public communication, dialogue and public involvement. One of the themes emphasized in the Responsible CareT" Code is "continuance improvement." This theme emphasizes that Responsible CareT'M is an ongoing process with the goal of "continuance improvement and ongoing reduction of risk." One of its recommended management practices recommends a system that "makes health, safety, and environmental impact . . . key considerations in designing, developing, and improving products and processes." The Development of Global Environmental Management Principles These trends have been consolidated by I S 0 in its current effort to create Global Environmental Management Principles which would be the standards by which any company's performance would be judged in the world marketplace. T h e ISO-SAGE Committee (Strategic Advisory Group on the Environment) was formed in 1991 as an ad hoc advisory group to determine whether there was a need for standardization in the global environmental management area, and what the role of I S 0 might be. It is expected that a technical committee will be formed from the SAGE Committee. This technical committee will work towards the adoption of environmental management system requirements. They state this will be an attempt to combine all of the trends noted above into one set of management principles. By this, they intend to incorporate the "status quo" aspects of I S 0 9000 and BS 7750, the more quality oriented principles of TQIM, and the documentation and publication aspects of the ECO Audit Directive and similar provisions in the United States and Canada. It is unclear as to whether they intend to incorporate in these principles a process for going "beyond compliance" by recommending procedures which would attempt to ensure that there would be a continued monitoring process and a focus on improvement on environmental performance. The writer has heard that they are projecting creation of these proposals by 1994 and adoption by 1995. These Environmental Management Principles are intended to create a one-world standard for environmental management, to achieve transparency between world-wide environmental performance standards, to include third-party certification, and to have a clear impact on products planning and products standards. It is unclear to what extent they expect to get into Observations and Comments This development is important. It signifies the fact that increasingly we are a global village. It underscores the importance of a company establishing a global environmental safety and health plan for its world-wide operations. It emphasizes that a company's operations and procedures, as well as its products, will be expected to be open for scrutiny by an increasingly critical public, as well as vigilant governmental regulatory bodies. The United States' sentencing standards, as well as developments in Europe which give credit to companies which have adopted such plans and procedures, demonstrate that there are significant benefits to be obtained by such planning. Experts in the area agree that improved profitability can also be the result and not just an improved company image. However. to trulv be successful in achieving these objectives, these principles must include attention both to monitoring programmes and a process for continued improvement of a company's performance. T h e environmental review process of BS 7750, as well as the provisions of I S 0 9004, have begun to point a way towards this type of proactive But evaluation and im~rovement. neither of them go far enough, nor does TQM meet this need. It is vitally important that these principles build in to their recommendation the kind of process, procedures, and systems which will continually impel a company towards evaluating and improving on its past performance. If companies are currently engaging in doing environmental planning, they would do well to consider these Conclusion It is this kind of focus that any set of global environmental management principles must achieve if they are truly to lead the way towards responsible company practices and a cleaner environment.

Journal

European Energy and Environmental Law ReviewKluwer Law International

Published: Mar 1, 1993

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