Opportunities and limitations to environmental management system (EMS) implementation in UK small and medium enterprises (SMEs) - A systematic review

Abstract

Human activity has been the primary driver of wicked problems that have resulted in the twinned climate and biodiversity crises, that must now urgently be addressed by all sectors of society. Such impacts are primarily driven by economic activity and how business is conducted. Small and medium-sized enterprises (SME) make up the majority of global and UK business with relatively unquantified environmental impact. The present study investigates how UK-based SMEs experience environmental management systems (EMS) - tools used to systematically identify the environmental impact of products and processes - to identify key opportunities and limitations to their implementation. Between 2000 and 2021 the topic has received a consistent, but low level of attention, with a marginal increase that coincides with the introduction of environment, social, and governance (ESG) requirements. The study synthesized the findings of 30 publications identified in a systematic review of literature that were comprised of case studies and review articles. Internal drivers for embarking on an EMS were resource use efficiency and cost-savings, and market advantage was a frequent external driver. Limitations were often more internal than external, and included inadequacies in human resource, knowledge and skill to undertake an EMS in house. Legal compliance featured as both a key internal and external driver, but a lack of mandate for EMS implementation and external (e.g., governmental) support were critical external limitations. Consequently, key focal areas to upscale the ambition of EMS for SMEs were the provision of guidance and training, as well as top-down pressure. Overall, there are increasing pressures upon the SME sector to improve their sustainability performance due to the trickle-down effect of stronger, international ESG related policy and legislation into the value chain and EMSs may offer an established framework to enable SMEs to move with larger corporates into a more sustainable future.

Keywords: Eco-management and audit scheme (EMAS); Environmental management systems; European union; International standard organisation (ISO); Small and medium enterprises.