Singapore Government Press Release

Media Division, Ministry of Information & The Arts, #36-00, PSA Building, 460 Alexandra Road, Singapore 119963, Tel: 3757794/5

SPEECH BY RADM (NS) TEO CHEE HEAN, MINISTER FOR THE ENVIRONMENT AND SECOND MINISTER FOR DEFENCE, AT THE ASIA-PACIFIC REGIONAL SEMINAR ON ENVIRONMENTAL MANAGEMENT STANDARDS - ISO 14000 AND THE INDUSTRY ON WEDNESDAY, 6 NOVEMBER 1996, AT 9.00 AM, AT THE PAN PACIFIC HOTEL, BALLROOM I AND II

Good Morning, Distinguished Guests, Ladies and Gentlemen,

Let me first extend a warm welcome to all of you, especially to our overseas guests who are here to participate in this regional Seminar organised by the Germany-Singapore Environmental Technology Agency (GSETA). I would also like to welcome the expert speakers from Germany who will be sharing with us their expertise on the subject of ISO 14000.

Emergence of Environmental Management Standards (EMS)

2 The global business landscape is undergoing fundamental changes. Trade and investment liberalisation has facilitated an increasing flow of goods across boundaries. This has in turn prompted the creation of international standards which will allow goods and services produced in different countries by a variety of companies to conform to accepted standards. These standards fall into two categories.

3 The first category describes products. This gives consumers the confidence that the products they buy will serve the purpose for which they are intended. This facilitates the international exchange of goods.

4 The second category describes the processes by which various products are made. An example of this is the ISO 9000 quality standard, which provides the consumer with an assurance of good quality because the company has in place an audited system for ensuring high quality in its production process. The customer can, if he prefers, choose as his suppliers only companies that comply with these process standards. More companies are becoming ISO 9000 certified, even though certification is voluntary and not compulsory, as this provides a stamp of good quality that is a valuable marketing tool for their products.

5 ISO 14000 is another example. ISO 14000 has arisen out of the growing concern for the environment. Pressures stemming from consumers, competitors and interest groups are compelling industries to manage their operations in a more environmentally sensitive manner.

6 Against this backdrop, sound environmental management principles are fast becoming an integral part of any astute company's long-term strategy. The timely adoption of environmental management systems, such as the ISO 14000, is one way in which corporate leaders can overcome the challenges that they are confronted with.

7 When I met the German Environment Minister, Dr Angela Merkel, in November last year, we discussed the possibility of holding a regional seminar on ISO 14000 to be organised by the GSETA. This was prompted by the speed at which ISO 14000 is being accepted in the international business scene. We also felt that environmental management standards can help businesses by providing a systematic way of addressing environmental aspects of their operations. We believed that both Germany and Singapore could play a useful role by organising this Seminar as it will help regional companies to better prepare themselves for this latest environmental drive.

Good Business Decisions Can Also Be Good for the Environment

8 I am sure that many of you are familiar with terms like Environmental Auditing, Environmental Management System, Life Cycle Assessment, Labelling and Environmental Performance Evaluation. These concepts form part of an integrated management approach which the ISO 14000 promotes. The good news is that these concepts are not entirely new.

9 Companies would already have used some of these concepts in the course of making their business decisions. For example, when a company decides to use a production process that is more efficient in the use of energy and raw materials; when it takes into account waste management issues in choosing a manufacturing process; or introduces "no-frills" packaging to attract cost sensitive consumers.

10 All these business decisions may have been profit driven, but they can be good for the environment too. With better productivity and efficiency, production and business processes often become environmentally friendlier.

11 With the advent of ISO 14000, more companies will now need to review the criteria on which their business decisions are made. Although subscription to ISO 14000 standards is voluntary, experience with the ISO 9000 quality standards indicate that conforming to the standards will provide a marketing edge, in the case of ISO 14000, in those countries where consumers place great emphasis on environmental concerns when making their purchasing decisions.

Environmental Benefits of ISO 14000

12 Companies should also discard the belief that environmental regulations will inevitably erode their competitiveness. Environmental protection measures can be costly to implement if they are introduced as an after-thought. But if companies address the environmental aspects of their plans early and are prepared to take a long-term view, implementing environmentally friendly processes could well result in savings. Of course, every company will need to do its own sums to determine whether it is cost-effective to do so.

13 Some companies have already found it worth their while to embrace the ISO 14000 guidelines. In Singapore, I am told that SGS-Thomson has saved some S$200,000 improving the energy efficiency of its cooling plant. Another company, Sony Display Devices, has saved about S$7.5 million a year by eliminating raw material wastage. Baxter, which has already obtained ISO 14000 certification, has disclosed savings and cost-avoidance up to US$3.4 million by implementing an environmental management system.

14 Apart from the financial benefits, these companies might also have gained a marketing advantage. In terms of environmental benefits, these companies' endeavours have helped to reduce the impact of waste generation and pollution, and they have also helped to conserve the earth's limited resources.

15 Many of you here today might have similar beneficial experiences when you decided to take a closer look at improving your operations. I hope that you will share these experiences at this Seminar.

ISO 14000 in the Global Context

16 The ISO 14000 standard is quickly gaining acceptance in many parts of the world. In Europe, firms seeking to market to government dominated industries not only have to establish a quality system meeting ISO 14000 standards, they also need to have their system registered by a third party. In the US, many industrial facilities are also seeking third party registration for their processes.

17 There is also a growing interest in ISO 14000 within the region. Companies in Japan and South Korea have begun to seek certification to earlier environmental standards such as the UK's Environmental Management and Auditing Regulation (EMAR) to prepare for the ISO 14000. Many ASEAN countries, including Malaysia, Indonesia and the Philippines, are planning to help their industries and companies cope with this development.

ISO 14000 in Singapore

18 In Singapore, companies have also noted the benefits of adopting ISO 14000 and the importance of making preparations early to meet these standards. A Co-ordinating Committee has been set up in September this year to help companies in Singapore prepare for ISO 14000. This Committee is chaired by the Singapore Confederation of Industries and comprises representatives from both the public and private sectors.

19 Larger companies may not find it too difficult to implement environmental management systems (EMS) - they have the financial strength and economies of scale. However, many small and medium-sized enterprises (SMEs) are likely to face difficulties in adopting environmental controls due to their lack of resources and limited access to technology.

20 I am, therefore, happy to note that the Productivity and Standards Board (PSB) is initiating an ISO 14000 EMS Implementation Scheme to assist local SMEs. This programme will help the SMEs overcome the problem of lack of internal expertise and lack of understanding of the requirements of ISO 14000. In May this year, the PSB also extended the Local Enterprise Technical Assistance Scheme to give financial assistance to SMEs wishing to implement EMS and to gain certification to the ISO 14000 standards.

Role of Local Environment Technology Industry

21 In aiming for ISO 14000 certification, local companies will want ready access to information and expertise on clean technologies and processes. The local environmental technology industry has undertaken a programme to provide such support.

22 The Singapore Association for Environmental Companies (SAFECO) has compiled a directory that features the products and services that local companies offer in the environmental field. This is a timely move by SAFECO which will help companies source for the appropriate technology and expertise to meet their needs. I would encourage SAFECO to make this directory available on the Internet as soon as possible.

23 SAFECO also plays an important role in networking with companies in countries that are already advanced in the implementation of similar standards, and they can be a conduit by which such technologies become available to companies in Singapore.

Concluding Remarks

24 In concluding, I would like to thank the German Government for all its support to make this Seminar possible. Germany and Singapore enjoy close co-operation in many areas, and I am glad that working together to improve the environment is one of them. Both Governments are committed to promoting the transfer of environmental know-how and technology to this region. Over the last three years, the GSETA has initiated many useful forums to facilitate this process, for example, in the areas of marine pollution prevention and waste management. I hope that this Seminar will similarly provide our participants with a greater understanding of the ISO 14000 Environmental Management Standard.

25 I would also like to thank the participating governments and private sector organisations for supporting this event. To all our friends from overseas, I hope that you will find time to take in the sights of Singapore during your short stay here.

26 On this note, it gives me great pleasure to declare this Seminar on "Environmental Management Standards - ISO 14000 and the Industry" open. Thank you.