ENVIRONMENTAL MANAGEMENT

AND SUSTAINABLE
BUSINESS/AGROINDUSTRY

Week #6
Eco-system in Crisis

• Climate Change
• Energy
• Resources Consumption
• Financial Crisis & Recession
• Access to Water
• Food Crisis
• Poverty
 Why Business?
“Business is the force of change. Business is
essential to solving the climate crisis, because
this is what business is best at: innovating,
changing, addressing risks, searching for
opportunities. There is no more vital task.”
Richard Branson
 FIRM
(PRODUCTION)

INPUT ECONOMY OUTPUT

HOUSEHOLDS
(CONSUMPTION)

EXTRACTION POLLUTION

ENERGY
AIR ENVIRONMENT HEAT WASTE
AIR POLLUTION
RAW MATERIAL
AMMENITY
WATER POLLUTION
WATER SOLID WASTE

Economic System and Environment

(Modified fromTietenberg, 1996:17)
 What is sustainable business?
Development that meets the needs
of the present without compromising
the ability of future generations to
meet their own needs.
1987 Bruntland Commission UN
 BUSINESS

+ GOVERNANCE

ECONOMY

SOCIAL ECOLOGY

The relationship of sustainable development components

People Profit Planet – The Triple Bottom Line
Shareholder vs Stakeholder
“It takes 20 years to
build a reputation
and five minutes
to ruin it. If you
think about that,
you'll do things
differently”
Warren Edward Buffet
(US stock broker, US representative, self-
made billionaire and philanthropist)
 Tools
• Recycling/Upcycling • Eco-Labels
• Zero Waste • LOHAS
• Cradle to Cradle • ISO, GRI, CSR
• Closed Loop Supply Chain • Life Cycle Assessment
• Design for Environment • Carbon Footprint
• Biomimicry • Ecological Footprint
• Socially Responsible Investing
• Energy Management
(SRI)
• Resource Management • LEED (Leadership in Energy & Environmental
• Eco- Efficiency/Effectiveness Design)

• Dematerialization • Carbon Cap and Trade

• Natural Step ™ • Architecture 2030
Biomimicry is an approach to innovation that seeks sustainable solutions to human
challenges by emulating nature's time-tested patterns and strategies. The goal is to create
products, processes, and policies—new ways of living—that are well-adapted to life on
earth over the long haul.
 ENVIRONMENTAL MANAGEMENT vs PROFITABILITY
(Goldstein 2002)
• The environmental impacts are hints (clues) against
economic wastes; doing more with less.
• EMS reduces many costs, often hidden costs.
• Companies that voluntarily applying high
environmental standards will stimulate the
emergence and diffusion of new ways or doing both
economically efficient and environmentally more
friendly (less harmful).
• Companies will benefit through the use and
fulfillment of criteria for environmentally friendly
products (environmental impact-reducing products)
• EMS encourages management to be better.
EMS oriented to easy and simple
applications
1. Practical, usable, useful,
2. Cost effective,
3. Mutual support with other systems,
4. Encourage continuous improvement, and
5. Includes five main components: policy
setting, planning, implementation and
operation, checking and corrective action,
and management's review.
 EMS benefits
1. Consistent with the company's noble values of heroism,
creative, and homely environment,
2. Improving the environment and the management of
reputation risk,
3. Cost saving,
4. Conserve energy and materials,
5. Reduce distribution costs,
6. Meet the expectations of stakeholders, responsible
business,
7. Ensuring compliance with laws, regulations, and related
rules,
8. Improve impression (image) of the company, and
9. Reflections on the company's commitment to the
principles of the global labor standards, human rights and
fighting corruption.
 The company's core elements
1. Top management commitment and define
the responsibilities,
2. Identification of environmental impacts,
3. Communicating environmental policy,
4. Setting goals and environmental program /
plan, and
5. Audit and review periodically.
 Integrasi SML dalam Manajemen Perusahaan

1. Design for Environment

2. Advantages or Product Stewardship as a component
of caring responsibilities.
3. Full-Cost Accounting is the process of measuring the
environmental costs associated with products or
processes which have been determined.
4. EMS development of formal adoption of the ISO
14001 standard variety.
5. Screening systems or choosing all of the alternative
processes and products according to the potential
environmental impacts.
 Sustainable Business

Economic Environmental
Consideration Conideration

Sustainable
Social Business
Consideration

Consideration and dimension of sustainable business

 Ten Trends in sustainable business
(Weybrecht 2010)
1. A deeper understanding of the meaning of sustainable
business
2. Workers are the secret weapon
3. Speak with not to the customer
4. Impact companies far beyond the office
5. Knowing exactly the suppliers
6. The gap getting bigger, can be either good or bad
7. The more open to develop sustainability
8. The business case is much broader than known
9. Recruiting new workers to bring the company more
sustainable
10. Pleased with sustainability