Environmental and Social Management System Development

Environmental and Social Management System Development

Logistics and Supply Chain Company, Thailand

SLP Environmental Co., Ltd (SLP) was appointed by an International Financial Institution (IFI) to prepare an Environmental and Social Management System (ESMS) on behalf of one of their clients (the ‘Company’). SLP performed an environmental and social due diligence (ESDD) assessment on the Company which revealed that the Company did not have a formal ESMS to manage the environmental and social (E&S) risks and impacts associated with their current and planned business activities. The ESMS was developed to align the Company’s E&S performance with the clients Environmental and Social Safeguards (ESS) requirements, and to be commensurate with the nature and degree of the E&S risks associated with the Company’s activities.

The Corrective Action Plan (CAP) prepared under the ESDD study identified the scope of the bespoke ESMS which was developed in accordance with good international industry practice (GIIP) and where possible incorporated selected aspects of the Company’s existing management systems such as ISO 9001, 14001 and 45001. A robust ESMS helps a business assess and control its environmental and social risks and impacts and is key to continuous E&S performance improvement. A key feature of a robust ESMS is the idea of continual improvement; an ongoing process of reviewing, correcting and improving a system in accordance with the Plan-Do-Check-Act cycle (PDCA). The benefits of an effective ESMS includes:

  • Enhanced understanding of legal requirements and best practice pertaining to environmental and social performance;
  • Risk reduction and impact avoidance/mitigation, including costs associated with ESG incidents and potential remedial actions;
  • Early identification of potential E&S risks associated with land, property and business acquisitions;
  • Better operational efficiency and reduced costs;
  • Greater employee retention and productivity;
  • Improved external relations and public image;
  • Increased access to clients, markets and investors which demand robust E&S management;
  • Improved OHS performance and reduction in accident and incident rates; and
  • Improved management of suppliers and contractors thereby reducing potential for substandard Labour and OHS practices.

SLP also provided high level ESMS training to familiarise the Targets senior management with the objectives, principles, benefits, structure and workings of the newlt authored ESMS framework documentation in order to ensure that key staff within the Target company responsible for its ongoing development, implementation and monitoring are aware of their roles and responsibilities.