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Articles & Publications :: Dannemann Siemsen News Nº 17 June 2007 :: Environmental management: What does it mean? What is its purpose?
   
 
 
Nº 17 - June 2007
 
 

:: ENVIRONMENTAL LAW

Environmental management: What does it mean? What is its purpose?

Isabel Hirsch de Alcantara


Its purpose is to seek harmony between economic development and conscientious, balanced and sustainable use of natural resources. It is the environmental variable in corporate management that has become an inexplicable requirement for companies that did not act to comply with social obligations.

Management should begin with investment planning, even prior to purchasing an asset, quantifying and qualifying its value so as to know just what is being acquired.

Before a project, whether public or private, is put into practice, the interested party needs to understand the location where it will be implemented, including information on the soil, climate, hydrology, flora, fauna, infrastructure and social systems created.

Considering that currently everyone is better informed about environmental issues, which are key to beginning any business - whether the industrial, tourist, real estate or infrastructure sector -, investment banks are only financing projects that promise a better environmental performance than production or infrastructure activities.

Choice of location, formulation of a project, its implementation and operation will always depend on sustainable development, which essentially means harmony between economic development and conscientious, balanced use of natural resources.

With these objectives in mind - and placed on paper- one may begin to think about the legal administrative procedures (licensing) required to meet this goal.

What would be the licensing for a project that has been carefully planned in compliance with prevailing environmental legislation? An easy, agile analysis for any environmental agency in any area that is responsible for authorizing its operation.

When the licensing process begins with these objectives already considered, processing is faster and more efficient, without obstacles on the development path.

What exactly would be Environmental Management for a project's implantation and operation?

It would be choosing the right location; elaborating a project appropriate for applicable legal parameters and monitoring its construction; and using modern technology that has already been tested in more developed countries so as to avoid repeating the mistakes of the past.

Companies that apply Environmental Management practices reap unmistakable benefits, from an economic, as well as strategic, perspective, to name a few: lower consumption of water, energy and other inputs; the recycling, sale and utilization of wastes and decreased effluents; avoiding pollution-related fines and penalties; an increase in the marginal contribution of "green products", which can be sold at higher prices; a higher market share due to innovative products and less competition; the creation of new product lines for new markets; higher demand for products that help reduce pollution. Of the more prominent strategic benefits, the following are few remarkable examples: a stronger institutional image; a revitalized portfolio of products; increased productivity; committed personnel; improved labor relations; enhanced creativity for new challenges; better relations with governmental agencies, the community and environmental groups; guaranteed access to the international market; better alignment with environmental standards.

(Source: Adapted from North, K. Environmental business management. Geneva: ILO, 1992. In: Cagnin, 1999.)

It is not useful to hold seminars, conferences, meetings and other gatherings with different economic sectors without keeping in mind that the foundation for any type of business is the environment and its planned management.

Activities can no longer be conducted with "dealing" or " influence trafficking": the issue is treated seriously. Companies must engage competent and respected professionals to help make project implementation possible.

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