The mutual influence of Environmental Management Systems and the EU ETS: Findings for the Italian pulp and paper industry

SummaryThe European Emissions Trading Scheme (EU ETS) is designed to be a flexible and efficient mechanism to encourage carbon-intensive industries to reduce CO2 emissions cost-effectively. Similarly, Environmental Management Systems (EMSs) are well-established tools designed to improve the efficiency of the environmental performance of companies. Up to now, knowledge of the mutual influences of strategic planning, ETS management and EMSs is still incomplete, and their implications are not fully understood. This study tries to identify whether the involvement of a firm in the ETS with the adoption of an EMS favors the generation of corporate strategic synergies in terms of organizational management and environmental planning. Due to a relatively short time frame and the need for exploratory research, a multiple case study emerged as the most suitable approach. Hence various Italian pulp and paper companies involved in the EU ETS were interviewed and analyzed. We found that organizations that integrate ETS management and EMS tend to establish satisfactory standards and procedures that are relevant for environmental monitoring and compliance. However not all ETS-related activities are integrated into EMSs. In addition, despite some mutual synergies, these are not sufficient for determining corporate environmental planning.

► The integration of ETS-related activities into corporate EMS is basically confirmed.
► EMS are mainly in charge of carbon emission monitoring, reporting and verification.
► Carbon market activities are assigned to qualified/administrative and finance staff.
► Investments in environmental innovation appear already to be part of EMS programs.
► To date, the EU-ETS has not been able to trigger further environmental investments.