Corporations and Environment: Pollution Management in the European Union

Introduction

“Air pollution is the introduction of chemicals, particulate matter, biological materials that cause harm or discomfort to humans or other living organisms, or cause damage to the natural environment or built environment, into the atmosphere” ¹. Extreme climatic changes and degraded air quality is clear evidence of just how much damage has been done to the environment. “Indoor air pollution and urban air quality have been listed as the world’s worst pollution problems” ².

Sources of air pollution can be either natural or man-made. Natural sources include those that human beings have no or little control over ³. They include dust, gases emitted by the digestion process, radioactive emissions from the earth’s activity, gases from vegetation and emissions from volcanic activities and other natural phenomenons.

Man-made emissions, also known as anthropogenic sources, are those attributed to human activity. They include gases emitted when different compounds burn, fumes from solvents, chemicals, emissions from automobiles and other activities such as military actions. “The amount of emissions is measured by values that relate the quantity of a pollutant released to the ambient air with an activity associated with the release of that pollutant” ⁴.

All types of pollution have detrimental effects on the health of all living organisms. As a result of high levels of industrial activity, the EU experiences high levels of air pollution than any other form of pollution. “Gases with biggest percentages released to the environment include nitrate compounds, ammonia and methanol from manufacturing companies” ⁵. In regions where industries are concentrated, the air will sometimes appear as filled with soot which in real sense is as a result of high levels of air pollutants.

As a result of such high levels of air pollution, residents are exposed to high risks of contracting diseases such as cancer, kidney problems and respiratory complications such as asthma and bronchitis ⁶. People living in such areas are also at a high risk of contracting skin complications and other organs toxicity. Reproductive toxicity is high and cardiovascular complications may arise if people live in such conditions for a long time. Compounds such as nitrates and ammonia are also known to cause birth defects and developmental problems if expectant mothers are exposed to such conditions for a long period. The region recognizes the need to reconsider their environmental policies and implementation criteria, to ensure the residents are not exposed to such high risks of health complications.

Air pollution legislation in the EU

As The European commission points out “Concern over health and environmental effects of pollution have led to major policies being introduced in Europe over the last decade” ⁷. The levels of pollution in every part of the globe have been a source of constant fear and conflict amongst industrialists and environmentalists. Drastic climatic changes and increased natural disasters are a constant reminder of just how dire the situation is. The US, Europe and other developed nations have in the recent past introduced stiff policies to help stop any further damage. This paper analyzes environmental performance and legislation in the European region, and compares the situation with other parts of the world. The paper also assesses how different industries are reacting to the legislation, as well as the impacts.

“The European industry has made considerable progress in improving its environmental performance over the last 20 years, as measured by reductions of emissions of major pollutants of concern” ⁸. The European Commission documents improvements every year by measuring “greenhouse gases, ozone-depleting gases, acidifying gases and ozone-percursor gases” ⁹. Compiling this data every year allows the region monitor progress, and implement more productive policies.

The region has now established several bodies and regulations in an attempt to minimize the effects resulting from the over-exploitation of natural resources and environmental concerns. The European Union Environmental Policy Act (EUEPA), is one such body established to enhance the environment. “One of its responsibilities include preparing Environmental Assessments and Environmental Impact Statements which contain statements of the environmental effects of proposed federal agency actions” ¹⁰.

“Its essential purpose is to ensure that all environmental factors are weighted equally when compared with other factors in the decision-making process undertaken by federal agencies” ¹¹. All environmental actions in member states are required to meet Air pollution legislation in the EUEPA guidelines before any financing of the project can be done. “The body’s process consists of three processes; preparation of a categorical exclusion, preparation of an environmental assessment and finding of no significant impacts” ¹². The first and second processes ensure that activities being undertaken do not have significant effects on the quality of the human environment. The other step is “a more detailed evaluation of the environmental impacts when compared to the content of the environmental assessment” ¹³.

A carbon tax is another measure taken by the government to increase competitiveness on non-carbon technologies, in an attempt to help protect the environment. “It is an environmental tax levied on the carbon content of fuels, an initiative implemented in response to commitments under the United Nations Framework Convention on Climate Change” ¹⁴. In many cases where this tax is implemented, it is done in combination with other forms of exemptions.

A carbon tax that compensates for the social cost of carbon (SSC) varies by fuel source and the amount of carbon dioxide production of fuel source per unit mass or volume is multiplied by the SCC to obtain the tax and based on mean peer reviewed values, the taxes can be estimated ¹⁵.

EU principles for air quality management

The European Union’s principles for air quality management are constantly changing to suit current environmental needs in the region ¹⁶. One of the principles is ambient air standards.

Principal tasks of the laws are:

• Ensure bodies and institutions entrusted with the responsibility of ensuring clean air are equipped with competent professionals.
• Design, introduce and implement quality air standards that are in line with set targets and legislation.
• Implement and co-ordinate monitoring measures and programs.
• Assess progress annually and report to relevant authorities.
• Research on and advice on further investments that could allow improvements
• Putting in place measures to ensure the public is well informed and educated on air quality standards
• Set up and implement technical strategies that allow the region deal with new challenges from recent technologies

Comparing the EU and other regions

As Sarami explains,

the main drivers that make up the current air pollution regulatory framework across Europe for industry are; the UNECE protocols, the air quality Framework Directive, the National Emission Ceilings, the Auto-Oil Program, the Slovents Directive, the Waste Incineration and the IPPC Directive ¹⁷.

Every individual country in the region also has specific regulations that govern how air pollution is managed in the country.

“The European region’s legislation differs with other regions in that it addresses specific sources of emissions for example waste incineration, large combustion plants and other specific pollutants” ¹⁸. Other regions such as the USA simply categorize the sources and have different regulations addressing each category. Another notable difference is the number of legislation put in place to address pollution in different regions of the world. “While Europe has a longer list of policies, the US Clean Air Act includes a list of 189 hazardous air pollutants the the EPA regulates and encompasses many of the policies in individual directives in Europe” ¹⁹.

Other countries also have standardized laws regarding specific sources of pollutants. “In Japan for example, the 1974 Air Pollution Control Law introduced a system of total emission control for sulphur dioxide and Nitro-dioxide in 1974 and 1981 respectively” ²⁰. While it may not be easy to determine which country has more strict environmental regulations, it is notable that most developed countries have today introduced stiff regulations to curb effects resulting from environmental degradation.

The EU’s law on environment addresses very practical measures to protect the environment against pollution. The law provides suggestions and laws that enure everyone participates in the small ways they can to minimize pollution. For example, when dealing with compost, returning organic waste where it belongs at home levels will not only help save on costs of collecting it but will have tremendous benefits on the environment. By starting a compost pile at every home instead of sending all the waste to the municipal dump, it will save the amount of energy used to send the waste to the dump. Municipal laws in the region make it possible for communities to implement such initiatives without getting into trouble with the law.

The law also ensures that organic products are easily available for those who wish to use them. Using organic gardening products and techniques in lawns, gardens and large scale farming has proven very productive in minimizing pollution. Since going 100% organic is not easy as the demand may not be sustainable, farmers, companies and households are trained on how to mix their fertilizers and pesticides to reduce the impact that in-organic products have on the environment. By going organic, beneficial soil organisms are stimulated, harmful pollution is reduced and there is creation of a healthier environmental surrounding for human and animal existence. All these measures are provided for, and budgeted for in the municipal environmental activities outlined by the law.

Other practical ideas towards protecting the environment include increased local participation in environmental projects like litter collection, cleaning and community tree planting activities. Participating in local organic farms and other environmentally friendly activities creates avenues for the locals to share ideas and motivate each other on keeping away from destructive practices that easily destroy the environment.

Companies’ reactions

Different business have had different opinions and reactions towards the set laws. Some view them as hindrances to growth, while others view them as an opportunity to make the world a better place and guarantee future markets for their products. Power firms have been against the stringent air pollution laws implemented in the recent past. A group of electricity companies argue that “the EU’s industrial pollution laws on air must be flexible enough if the power sector is to deliver genuine results” ²¹. The companies were reacting to the recently passed Integrated Pollution Prevention and Control Act.

The business further claim that “if the power industry had to implement the technologies required by the new directive by 2016, then efficiency would suffer” ²². Other companies in other industries also argue that though the proposed technologies will help cut emissions, it may not be possible to maintain current levels of efficiency with such technologies. Those who oppose the directives continue to seek support to ensure that the laws are either changed or done away with.

A considerable percentage of investors in the region agree with the stiff pollution laws in the region. A good example of companies that have taken the laws positively is the electronic manufacturers. Samsung UK is one such company. “The company’s environmental record has been marred with conflict and confrontations by different environmental organizations for promoting non-recyclable hardware components” ²³. In 2003, different organizations led by Greenpeace campaigned against its chemical policies especially in relation to their use of BFRs and PVS in their products. In 2008, the company was listed last among the greenest electronic companies by Climate Counts. Through its continued environmental efforts, Climate Counts ranked Samsung in the top ten list in the same list this year. The Environmental Protection Agency also ranks Samsung as among the most environmentally conscious companies.

“To stop air pollution and reduce emissions, the company’s designs ensure that its products use less material, are free of toxic substances, are as recyclable as possible, and are shipped in smaller packaging” ²⁴. The company follows strict environmental standards from its manufacturing, to transportation, product use and finally recycling. Its designers and engineers pioneered the development of small, thin and light products to minimize amounts of raw materials used. Its engineers also ensure that the raw materials they use have the lowest levels of toxic materials possible, and suppliers are put to task to ensure that they only supply raw materials free of such toxins. Packaging and transportation is done in such a way that it minimizes toxic emissions to the environment and products are designed is such a way that they use minimum energy, giving environmental advantages to the final consumer. “Most of Samsung’s products today meet and exceed the energy star guidelines for energy efficiency” ²⁵.

Conclusion

In times when there are very unpredictable weather patterns and a fast growing population, environmental conservation is continually gaining fame and calls for use of resources in a way that human needs are met while the environment is preserved. This will ensure that today’s needs are met and the future generations’ needs are protected. Large percentages of populations in different regions or countries are today undernourished such that death by starvation has become increasingly common. This is all due to over-exploitation of natural resources and polluted environments that make it hard to stay health and grow enough food.

Among the most important obligations of the laws is to teach people the four most important environmental principals which are reuse, recycle, repair and sharing of resources especially those whose continuous manufacture could degrade the environment. Reuse includes using old shopping bags and cloths instead of buying new ones every time there is a need and involves using old plastic bags for other purposes instead of disposing them each time they are used. This reduces the amount of plastic bags disposed all over including in farms which would interfere with growth of trees. Recycling of things such as old furniture instead of throwing them away can reduce the amount of trees cut down to make new ones.

Source of air pollution can be categorized as natural or man-made. Natural pollutants include dust, gases emitted by the digestion process, radioactive emissions from the earth’s activity, gases from vegetation and emissions from volcanic activities and other natural phenomenons. Man-made emissions, also known as anthropogenic sources, are those attributed to human activity. They include gases emitted when different compounds burn, fumes from solvents, chemicals, emissions from auto-mobiles and other activities such as military actions.

Legislation in different parts of the world are aimed at reducing man-made pollutants by addressing human and industrial practices. Principal tasks of the laws in the EU and other parts of the world include seeing that bodies and institutions entrusted with the responsibility of ensuring clean air are equipped with competent professionals, designing, introducing and implement quality air standards that are in line with set targets and legislation, implementing and coordinating monitoring measures and programs, and assessing progress annually do determine necessary adjustments.

The law in the EU also seeks to support research and development of more environmentally friendly technologies, and putting in place measures to ensure the public is well informed and educated on air quality standards. The law ensures that it is the responsibility of every member of the EU to set up and implement technical strategies that allow the region deal with new challenges from recent technologies.

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Footnotes

1. Abhishek, T & J Colls, Air pollution, Routledge Publishers, New York, 2005.
2. Anand, S, Essentials of corporate governance, Wiley & Sons, New York, 2007.
3. Cowen, SC, BF Lindsor & DP Tinsay, ‘The impact of corporate characteristics on social responsibility disclosure: A typology and frequency-based analysis’, Accounting, Organizations and Society, Vol. 12 no. 2, 2010, pp. 111-112.
4. Daft, M, Understanding waste management, South-Western Cengage Learning, Mason, OH, 2009.
5. European Commission, A comparison of EU air quality pollution policies and legislation with other countries, European Commission, United Kingdom, 2010.
6. Gessler, F, ‘Innovation Speed: A concept model of context, antecedents and outcomes’, Academy of Management Review, Vol. 21, no. 4, 2000, pp. 1143.
7. Greenwood, J & M Aspinwall, Collective action in the European union: intrests and the new politics of associability, Routedge, New York, 2007.
8. Hinrichsen, D, Population and the environment: The global challenge, 2011. Web.
9. Hopkins, S, Corporate social responsibility and international development: Is business the solution, Earthscan Ltd., Chicago, 2009.
10. Marthy, BKV, Environmental Standards and Global Environmental Accountability: A Developing Country Perspective, 2007. Web.
11. Michael, AB, Protecting The Environment, 2010. Web.
12. Miller, G, Environmental management: Air pollution, Routledge Publishers, New York, 2011.
13. Pacheri, B, Environmental implications of enabling technologies, South-Western College Publishers, Ohio, 2010.
14. Payne-Sturges, D, ‘National environmental measures for minority and low-income populations’ Environmental Research, Vol. 102, no. 2, 2006. Web.
15. Rondinelli, DA & AB Michael, ‘Environmental citizenship in local corporations: Social responsibility and sustainable development’, European Management Journal, Vol. 18 no. 1, 2000, pp. 70-84.
16. Sarami, A, Strategy formulation in environmentalanagement, Ashgate, Aldershot [u.a], 2007.
17. Sheikh, S, A guide to the Companies Act 2006, Routledge, Cavendish, 2008.
18. Stefan, R, Costs of air pollution control: Analysis of emission control options for ozone abatement strategies, Springer, Berlin, 2005.
19. Strickland, A, Strategy formulation and implementation: Environmental management, Irwin, Homewood, IL, 2000.
20. UNCTAD, Effects of environmental policies: Standards and regulations on market access and competitiveness, with special reference to developing countries, UNCTAD, London, 2009.
21. Vos, H, Review of economic instruments for gaseous pollutants, AETAT Environment Agency, London, 2010.
22. Waddock, S, Leading corporate citizens: Vision, Values, Value added, McGraw-Hill, New York.
23. Watt, J, The effects of air pollution on cultural heritage, Springer, New York, 2009.
24. Watkiss, P, Evaluation of air quality strategy in the EU, Wiley & Sons, New York, 2011.
25. World Bank, Green industry: New roles for communities, markets and governments, World Bank, Washington, 2011.