Voluntary Environmental Standards Research Articles

Regulatory or market pressures: What promotes environmental grandstanding in Bangladesh?

Many factors affect the adoption of the mandatory technology of effluent treatment plants for pollution management in Bangladesh. Some of these factors could also affect the adoption of voluntary environmental standards. Therefore, it is important to identify and analyze the importance of these key factors, considering their role in enhancing environmental performance in crucial industries for the country's economy. In this study, a literature review preceded an analysis of factors through structural equation modelling to investigate how attributes of the regulatory agency combine with market aspects to influence environmental practices such as the adoption of mandatory ETP and voluntary certifications. Using official quarterly data, the results of this study show that access to green finance and the number of employees of the regulatory agency significantly affect the adoption of additional ETPs. On the other hand, the size of fines for pollution does not significantly affect the adoption of ETPs. It was also found that green finance and additional ETP adoption also increased the adoption of green factory buildings, which is a voluntary exercise. This study sheds light on the underlying relationships that can guide ongoing multilateral interventions to enhance capacity of regulatory agencies to implement environmental regulations. It also provides new evidence to formulate relevant strategies for enhancing environmental performance by scaling up green finance.

Unveiling the Relationship between Voluntary Environmental Standards and Stock Market Performance: Empirical Insights from Textile Manufacturing Firms in Pakistan

The primary objective of this study is to examine the impact of voluntary environmental standards, specifically EMS and eco-labels, on firms' stock market performance. To achieve this aim, fixed-effect regressions were applied using panel data from 96 textile firms listed on the Pakistan Stock Exchange between 2009 and 2022. Data were meticulously sourced from the State Bank of Pakistan (2022), annual reports of manufacturing firms, and their official websites. The findings of this study indicate a positive correlation between the adoption of EMS & eco-labels, and stock market performance among manufacturing firms in Pakistan. Similarly, eco-label also helps to promote sustainable business. Similarly, EMS is also important for EPS. It is also observed that firms having eco-label has significant impact on EPS. Eco-label helps to increase sale, profitability and stock market by ensuring the sustainable production, because, customer satisfaction and loyalty increases. By adopting VES, an industry can achieved increase in profit, reduce cost, improve environmental standards and, also, increase consumer confidence. The outcomes of the study signify the importance of managerial commitment to the adoption and implementation of voluntary environmental standards within these firms.

The impact of construction on the environment - the European experience of normative and legal regulation in Ukraine

Construction is a sector of the economy that directly affects the ecology, changing existing ecosystems and creating a new modified environment, which leads to the transformation of the existing one. Taking into account the importance that the implementation of construction projects has for the successful transformation of the environment, the study of factors of influence, design and other activities of construction participants on the environment, the development of systems for assessing such effects and their implementation in practical activities remains an extremely urgent task. The article examines the regulatory and legal documents of the EU regarding the regulation of the ecological consequences of the impact of construction on the environment, and also systematizes the directions of the impact of construction on the environment. Construction has a significant negative impact on the environment, which is accompanied by the transformation of ecosystems, fragmentation of landscapes, during drilling and blasting, construction of pits and trenches, felling of forests and bushes, pollution of the atmosphere, territories and water areas adjacent to the construction, and noise pollution, damage to the soil layer and washing away pollution from the construction site, the formation of construction waste dumps, etc. That is why the planning, construction and operation of construction sites must be carried out in accordance with environmental standards, and the standards themselves should ensure the minimization of the impact of networks on the environment. Therefore, it is important to improve the existing methods of assessing environmental risks, to form criteria and an assessment mechanism, as well as to bring the Ukrainian legislative and regulatory framework closer to the European one.
 The features and differences of the preparation of the following documents are determined: Strategic Environmental Assessment (SEA), Environmental Impact Assessment (EIA), Environmental Impact Assessment (EIA), as well as the advantages of using environmental product declarations (EPD) used in the EU in construction as a means of communicating transparent and standardized information about the environmental performance of products, are based on life cycle assessment (LCA) and comply with standards such as ISO 14025. By implementing mandatory and voluntary environmental standards and green building practices, enterprises in the construction sector will be able to play a key role in reducing the impact on the environment environment.

Controversy Over Voluntary Environmental Standards: A Socioeconomic Analysis of the Marine Stewardship Council

Voluntary standards certifying environmental qualities of labeled products have proliferated across sectors and countries. Effectuating these standards requires the collaboration among and between creators (typically firms and nongovernmental organizations) and adopters (firms across a particular supply chain). However, the need to collaborate does not rule out the presence of controversy. Drawing on the case of the Marine Stewardship Council, a leading seafood standard to conserve the world’s threatened marine fauna, we analyze how this controversy, from economic and sociologic vantage points, impacts a sustainability transition. In essence, interest divergence drives controversy over standard design, which spurs controversy over standard effectiveness and prompts the proliferation of competing standards. Controversy is magnified by the opacity or nontransparency of the fields which such standards seek to govern. We conclude that, while interest divergence and field opacity entail inherent controversy over voluntary environmental standards, the impact of this controversy on sustainability transitions is typically predominantly positive.

Controversy over Voluntary Environmental Standards: A Socio-Economic Analysis of the Marine Stewardship Council

Voluntary standards certifying environmental qualities of labeled products have proliferated across sectors and countries. Effectuating these standards requires the collaboration among and between creators (typically firms and non-governmental organizations) and adopters (firms across a particular supply chain). However, the need to collaborate does not rule out the presence of controversy. Drawing on the case of the Marine Stewardship Council, a leading seafood standard to conserve the world’s threatened marine fauna, we analyze how this controversy, from economic and sociologic vantage points, impacts a sustainability transition. In essence, interest divergence drives controversy over standard design, which spurs controversy over standard effectiveness and prompts the proliferation of competing standards. Controversy is magnified by the opacity or non-transparency of the fields which such standards seek to govern. We conclude that, while interest divergence and field opacity entail inherent controversy over voluntary environmental standards, the impact of this controversy on sustainability transitions is typically predominantly positive.

Adoption and diffusion of environmental and social standards

Purpose The increased focus on sustainability has led firms to incorporate a range of sustainability practices in their products, processes and supply chains. Because these practices are typically difficult to observe, firms often seek an independent verification and adopt voluntary environmental and social standards and eco-labels such as ISO 14000, FSC, USDA Organic or Fairtrade. The purpose of this paper is to study several factors linked to their adoption. Design/methodology/approach Drawing on existing theory, the authors hypothesize that environmental and social standards will be more widely adopted if they are better-governed, less stringent and more favorably covered in the media. The authors collect data on 41 eco-labels from multiple data sources. Findings The authors find that the better-governed labels are more widely adopted, but that more stringent labels within the sample are not less widely adopted. More favorable media coverage is not associated with wider adoption. Research limitations/implications The study focuses on the diffusion of a sample of well-established eco-labels. To establish causal links, longitudinal data on governance, stringency, adoption and media coverage would be needed. Practical implications Managers deciding which eco-label to adopt need not be concerned that a more stringent label will inevitably yield less business value due to the label being less widely adopted. However, they should care whether a label is seen to be well-governed. Managers cannot use the way a label is portrayed in the media as a predictor for adoption. Originality/value Past research has often ignored how characteristics of environmental and social standards impact their diffusion. The work contributes to the growing literature on diffusion of voluntary standards and eco-labels by adding a quantitative and multi-sectoral perspective.

Low-carbon growth for Indian iron and steel sector: exploring the role of voluntary environmental compliance

India's move towards low-carbon growth will be successful only when the industries assume responsibilities of climate change. Previous studies argue that voluntary compliance by firms being business-led initiative is appropriate for developing nations, however provides little empirical evidence. The present study investigates the role of voluntary compliance in improving firms’ environmental performance in Indian iron and steel sector using sample of 76 firms over years 2006–07 to 2011–12. Environmental performance is measured by CO2 emissions. In absence of emission data at firm level, we quantify CO2 emissions from energy consumption using Intergovernmental Panel on Climate Change (IPCC) reference approach. Voluntary compliance is indicated by presence of voluntary environmental management standards - ISO 14001. The study finds that 33% of sample firms comply with ISO 14001. Further, the empirical results based on panel data econometric suggests that there is a significant positive relationship between voluntary compliance and improvement in environmental performance, even after addressing simultaneity issues and including other firm characteristics. Thus, voluntary compliance may be used as supplementary policy tool to achieve low carbon growth in industries. Additionally, there is a need to disseminate information about ISO 14001 by government as well as firms to create awareness.

Voluntary environmental standards in key russian industries: a comparative analysis

This paper provides a comparative analysis of voluntary environmental standards in key Russian industries. Five Russian industries, namely the oil and gas, mining, power generation, forestry and financial sector, with a high economic and environmental impact were analysed in order to determine the degree of implementation of voluntary environmental standards. It was determined whether or not companies possess voluntary environmental standards and reporting, in the oil and gas, mining and electricity production industries, an ISO 14001 and/or sustainability (non-financial) reporting with confirmation by an independent third party in accordance with Global Reporting Initiative; in the forestry industry a Forest Stewardship Council certification; and in the financial sector the Equator Principles, United Nations Environmental Program Financial Initiative, Principles for Responsible Investments and Carbon Disclosure Project. The paper presents data and information on adherence to the above-mentioned standards by the main Russian companies by size in each sector. The research determined that the top performing industries are forestry and oil and gas, whereas the power generating industry and the financial sector show fairly low levels of implementation.

"Protecionismo privado": a atuação da sociedade civil na regulação do comércio internacional

A proliferação de padrões ambientais (ou requisitos) voluntários, formula-dos e administrados por organizações não governamentais - de forma total-mente independente ou com diversos graus de participação governamental - tornou-se questão problemática para muitos países de menor desenvolvimento relativo. Essas fontes não tradicionais de regulamentação global podem constituir barreiras injustificáveis ao comércio internacional que escapam da competência da OMC. Nesse contexto, objetiva-se verificar em que medida as regras multilaterais de comércio podem ser aplicadas a restrições comerciais impostas por atores não estatais. Na medida em que as regras da OMC são aplicáveis unicamente a Estados-membros, constata-se a importância de averiguar de que forma esses padrões privados voluntários envolvem a participação do governo ou como esses padrões podem ser atribuídos aos governos no que concerne às regras da OMC.

Identifying critical enablers to high performance environmental management: an empirical study of Chinese firms

The aim of this paper is to identify the critical enablers to high performance environmental management (EM). Using empirical data, we explore green operational practices associated with both self-regulatory and voluntary environmental standards and their impacts on firms’ performances in China under different operating conditions (i.e. with Internal EM Programmes or Supply-Chain-Wide EM Programmes). Our data show that both self-regulatory (e.g. adopting environmentally conscious operations) and voluntary environmental standard (e.g. adopting ISO 14001 guidelines) approaches positively related to the overall performance of the firm. Voluntary environmental standards seem to be more highly associated with the overall performance of the firm. A major reason for this is the awareness and understanding of environmental sustainability. Applications of voluntary environmental standards, such as ISO 14001, thus offer and open up continuous improvement opportunities to impose greener standards for organisations in China. By focusing on the critical enablers, firms in China could become more environmentally responsible while improving their economic and operational performance.

Russian Business and Sustainable Development: Implementation of International Standards in Environmental Risk Management

Government environmental regulation in developing countries is often based on lower environmental standards and has high corruption risks. Common rules of global competition with respect to environmental indicators can be achieved by transition to international voluntary environmental standards that are based on a balance of the interests of stakeholders, with compliance certified by a ‘disinterested third party’, such as an independent auditor. The need for movement in this direction is confirmed by the study of trends in use by Russian companies of such voluntary mechanisms as ISO 14001 environmental management systems, GRI non-financial reporting, voluntary forest certification (FSC) and voluntary certification of marine biological resources (MSC). The analysis shows that voluntary international standards are increasingly used by those Russian industries, which have the largest environmental impacts. The trend towards greater use by leading companies of higher voluntary environmental standards, which are also less vulnerable to corruption, will continue as the Russian economy integrates with the global economy and joins the leading international economic communities. The main Russian companies, which have businesses extending beyond national borders and need to use the tools of international finance, will be compelled to use these environmental standards in their corporate governance. Further implementation of international environmental standards and better verification are key factors for improving the competitiveness of Russian companies in world markets and for reducing environmental risks and negative impacts on the environment in the Russian Federation. The Chapter’s conclusions include recommendations for measures by government to encourage environmental responsibility and make Russian companies more competitive.

Environmental Standards and Labor Productivity

In the last decade, a rising number of firms have adopted voluntary international environmental management and product standards, such as the international ISO 14001 management standard or organic ...

Information and Communication Technology‐Enabled Low Carbon Technologies

SummaryThis article outlines the subsector of the information and communication technology (ICT) industry concerned with reducing the economy's environmental impact, dubbed ICT‐enabled low carbon technologies (ICTeLCTs). The article is based on a study funded by United Kingdom (UK) Trade and Investment, a division of the UK Department for Business, Innovation and Skills. ICTeLCTs can be segmented into specialist and generalist operators. Specialists focus on one or two ICT applications to monitor or reduce environmental issues, while generalists supply products and services enabling a firm or a private household to reduce the environmental impact of its activities. The subsector can be further segmented into green ICT, energy management, building management, carbon accounting, waste management, intelligent transport systems (ITSs), and water management. The main factors driving ICTeLCTs include legislation, voluntary environmental standards, corporate social responsibility (CSR) activities, customer demand, and competitive market factors. Policy makers should continue to drive the growth of ICTeLCTs with the introduction and refinement of environmental legislation regulating energy use and markets.

Dynamics of Spatial Interdependence: The Contingent Effect of International Trade on Voluntary Environmental Standards

Previous research has shown that international trade exposure promotes the diffusion of voluntary environmental standards, such as ISO 14001, from importing nations to exporting nations. However, previous studies have not theorized about the conditions under which trade diffusion is most effective. We argue that international trade exposure influences ISO 14001 adoption rates in countries that have yet to achieve high domestic adoption levels relative to the global average. But if a country achieves a high domestic adoption level, companies have incentives to certify their operations for domestic reasons, and these incentives dominate international influences. Thus, we expect the relative importance of international pressure to decrease as the domestic adoption level increases. International diffusion of ISO 14001, therefore, may not reflect a ‘race to the top’. We test this theory against a global panel dataset on ISO 14001 adoption rates for the years 1995–2007.

A Responsible Lender? The European Investment Bank's Environmental, Social and Human Rights Accountability

This article examines the principles of accountability applied by the European Investment Bank in comparison with the practices of other Multilateral Lending Institutions. After a brief description of the EIB and its activities, the substantive and procedural principles governing the EIB’s external accountability are reviewed. The substantive accountability principles considered are the applicable rules of the EU legal order and the voluntary human rights, social and environmental principles and standards which the EIB has identified for itself and committed to follow throughout its operations. The article evaluates the extent to which these norms form a credible normative framework against which the EIB’s lending practices can be appraised. From a procedural accountability point of view, the article assesses the transparency and participation policies of the EIB, as well as the mechanisms offered to external stakeholders to seek redress from the EIB in case they are wronged by one of its decisions. The redress mechanisms analyzed are the recent EIB’s Complaints Office, the European Ombudsman and the Court of Justice. We conclude that the EIB should take more advantage of its being subjected to the EU human rights, social and environmental rules and of the EU judicial apparatus in order to upgrade its substantive and procedural accountability towards external stakeholders.

International integration: a hope for a greener China?

PurposeIn recent years, “trade up” argument has gained momentum. It argues that international integration can benefit developing countries' environments by fostering the adoption of voluntary environmental standards, such as International Organization for Standardization (ISO) 14001 certification. Based on this argument, a social marketing program that encourages greenness among buyers, especially downstream industrial buyers (for example, auto industry) in developed countries could motivate firms in developing countries go green. The purpose of this paper is to provide an investigation on whether “trade up” is a real hope, and what is required to make it real.Design/methodology/approachTheoretical modeling and case studies.FindingsThis paper finds that international trade does gear up the adoption of ISO 14001 standards in China through increasing pressures from international green customers. However, our analyses suggest that the adoption of ISO 14001 certification does not necessarily improve firms' compliance with existing environmental regulations in China. The actual impact depends on how stringently environmental agency carries out inspections. We also find that in China, ISO 14001 certification motivates little, if any, environmental performance improvement beyond bottom‐line environmental regulations.Research limitations/implicationsThis finding suggests that the “trade up” argument as well as a social marketing strategy targeting international buyers (including downstream industries) need to be scrutinized carefully before being used to guide practice.Originality/valueFew efforts have been made to explore the actual impacts of ISO 14001 certification in developing countries. This paper fills this gap. It provides empirical support for Andreasen's argument that social marketing should be applied more broadly to achieve the desired impacts.

The effect of expertise on the quality of forest standards implementation: The case of FSC forest certification in Russia

The central question of the paper is how differences in expertise affect the implementation of voluntary environmental standards in the forestry sector. Specifically we analyze the experience of two large forest companies in Russia that certified their forest management under the Forest Stewardship Council (FSC) forest certification program. Drawing on the literature on financial auditing we show that specific outcomes of forest management standards implementation are shaped by the differences in forest management auditors' knowledge, skills and attitudes.

Adoption of Voluntary Environmental Standards: The Role of Signaling and Intrinsic Benefits in the Diffusion of the Leed Green Building Standards

We examine the role of signaling and of intrinsic benefits in the adoption of the individual elements of the voluntary LEED (Leadership in Energy and Environmental Design) standards for green buildings. We use goodness-of-fit tests on data for all 442 LEED certified buildings and find that neither signaling nor pursuit of intrinsic benefits can independently explain the observed adoption pattern, but that a combination of the two factors can. We also find tentative evidence that the adoption decision is made sequentially: organizations first choose a level of certification (consistent with signaling), and then choose how many LEED elements to adopt given their chosen level of certification consistent with pursuing intrinsic benefits). We relate our findings to some open questions in the literature on diffusion of technology and draw implications for the design and the future development of similar voluntary standards and eco-labels.

Regulating the Use of Voluntary Environmental Standards Within the World Trade Organization Legal Regime: Making a Case for Developing Countries

Regulating the Use of Voluntary Environmental Standards Within the World Trade Organization Legal Regime: Making a Case for Developing Countries

What Explains the Uneven Take-Up of ISO 14001 at the Global Level? A Panel-Data Analysis

Since its release in the mid-1990s, close to 37 000 facilities have been certified to ISO 14001, the international voluntary standard for environmental management systems. Yet, despite claims that the standard can be readily adapted to very different corporate and geographic settings, its take-up has been highly geographically variable. This paper contributes to a growing body of work concerned with explaining the uneven diffusion of ISO 14001 at the global level. Drawing from the existing theoretical and empirical literature we develop a series of hypotheses about how various economic, market, and regulatory factors influence the national count of ISO 14001 certifications. These hypotheses are then tested using econometric estimation techniques with data for a panel of 142 developed and developing countries. We find that per capita ISO 14001 counts are positively correlated with income per capita, stock of foreign direct investment, exports of goods and services to Europe and Japan, and pressure from civil society. Conversely, productivity and levels of state intervention are negatively correlated. The paper finishes by offering a number of recommendations to policymakers concerned with accelerating the diffusion of voluntary environmental standards.