To increase my understanding of the environmental management issues and to gain a professional accredition I have joined the “Integrated Environmental Management” course from the University of Bath by Distance learning. This core module when completed will provide a Associate Member accredition to the Institute of Environmental Management & Assessment (UK) and can lead to the Chartered Environmentalist (CEnv) qualification in the future after many years of experience.
The initial section of the study workbook explains the Environmental Challenge for a business. A small exercise in this section is about the environmental challenge faced by a Wood products company. The simple response that I have written is an example of “sustainability and business strategy”.
The Exercise:
You have recently been appointed environmental manager of a wood products company. One of the first requests made of you is to make a presentation to the board of directors explaining the environmental challenge confronting the company. In preparation for your presentation, draft an outline of the general issues that you wish to cover. (emphasis in original)
My response:
Environmental challenge for a wood products company.
A definition of a wood products company is one provided by North American Industry Classification System (NAICS) of “wood products manufacturing”.
This subsector comprises establishments primarily engaged in manufacturing products from wood.
There are three industry groups in this subsector, comprising establishments engaged in
• sawing logs into lumber and similar products, or preserving these products;
• making products that improve the natural characteristics of wood, by making veneers, plywood, reconstituted wood panel products or engineered wood assemblies;
• and making a diverse range of wood products, such as millwork.
And the exclusions:
Establishments primarily engaged in the following activities are excluded:
• logging; and chipping logs in the field (NAICS 113, Forestry and Logging);
• manufacturing wood pulp, paper and paper products (NAICS 322, Paper Manufacturing);
• manufacturing wood kitchen cabinets and counters, and bathroom vanities (NAICS 337, Furniture and Related Product Manufacturing); and
• manufacturing wood signs and coffins (NAICS 339, Miscellaneous Manufacturing).
[Source: http://strategis.ic.gc.ca/canadian_industry_statistics/cis.nsf/IDE/cis321defe.html]
The Environmental challenge for the organization is:
The current scenario:
1. Even though wood is a renewable resource; due to the non-sustainable use of forest land (grazing, agriculture, timber production, logging and natural causes) there is a trend towards a decreasing source of resources for the company.
2. Greater consumer and NGO involvement in the sector in connection with climate change issues.
3. Consumer activism is driving people away from natural products.
4. Investor concern in managing stakeholders and natural resources risk.
The challenge:
1. To continue to maintain a supply of sustainable resources; further defining, branding and communicating what it means to be sustainable
2. To create production processes which will increase the productivity of the use of these resources
3. To change design and product development to create long lasting and alternate products (e.g sustainable bamboo, recycled wood chips, wood waste from manufacturing)
4. To create a new marketing system where these changes are communicated, a new customer segment is targeted which understands and pays for the value of the sustainable products.
5. To create a new business model for the company which can combine the above requirements to create a viable, profitable business which is attractive to investors.
The benefits:
1. A more environmentally friendly company (more efficient, less waste production, higher productivity & lower costs)
2. A lower risk from stakeholders
3. An avenue for talent management (Gen X & Y, attraction and retention of current talent)
4. Creation of new products and markets
5. Targets the new and growing LOHAS customer segment
6. A new business model which is more attractive to investors (lower risk, new markets, higher profits)
