An assesment of corporate environmental programs and their performance measurement systems

Leading American businesses are moving beyond basic compliance with environmental regulations and are now striving to make the management of environmental issues an integral part of their day-to-day business. As a result, environmental management systems are crucial and innovative companies are developing programs to measure environmental performance. A benchmark study was performed to gather environmental program management and environmental performance measurement information from 33 major companies in four industry sectors (utility, paper, consumer products, and chemical). Environmental management systems are strategic programs in place to address and control environmental, health, and safety issues. The companies chosen were believed to be "best in class" within the environmental performance area. "Best in class" companies are those companies believed by their peers to be superior in a specific area. A survey tool was developed to acquire the information with questions related to environmental management systems and very specifically to environmental performance measurements. Of the 33 companies contacted, 18 companies participated in the survey. Environmental performance and environmental management rating systems were developed to analyze trends within and between specific industries. The chemical industry was found to be superior to the other industries in management of environmental programs and in measuring environmental performance. The paper industry had the next highest rating with the consumer products and utility, industries lowest in performance. Although the utility industry, as a whole, trailed the three other industries, the highest rated company in the survey was an electric generating corporation.