Quick Environment Management System (QEMS) for SMEs in Sri Lanka
What if saving the planet could save you money? In today’s competitive market, going green is not just good for the planet – it is good for your company’s bottom line. While large corporations invest millions in environmental certifications, small and medium enterprises often struggle with the complexity and cost of implementing management systems like ISO 14001. But what if there was a simpler, cost-effective way to reduce your environmental impact while cutting operational costs and attracting more customers? That is where Environmental Management Systems come in, offering a practical path to sustainability that works for businesses of any size.
The Benefits of an Environmental Management System (EMS)
Identify Areas of Environmental Risks: EMS certifications such as ISO 14001 ensures businesses integrate a structured approach to identifying areas of risks, waste, and areas of improvement, enabling them to reduce resource consumption, lower emissions, and minimise waste. These measures, in addition to reducing negative impacts on the planet, also enhance their corporate image as environmentally conscious entities.
Cost Savings and Efficiency: By encouraging practices that reduce waste and optimise the use of resources such as fuel consumption and water, an EMS leads to streamlining of operations resulting in lower utility costs, fewer materials used, and a reduction in waste disposal expenses. Additionally, an EMS fosters compliance with environmental regulations, which can help businesses avoid costly fines or penalties for non-compliance.
Improved Market Competitiveness: With consumers and investors increasingly prioritising sustainability, an established EMS demonstrates a company’s commitment to actionable progress to environmental responsibility, which can attract eco-conscious customers and investors. This can open doors to new business opportunities and strengthen the businesses position in the market.
The Challenges of ISO 14001 Adoption
High Initial Costs and Resource Demands: The initial associated costs can be a significant barrier, particularly for small and medium-sized enterprises (SMEs). Developing and integrating an EMS can require significant time, expertise, and effort. Third party certification costs can also be significant, which many businesses struggle to justify, especially when the return on investment in an EMS is not tangible.
Ongoing Monitoring and Maintenance: The requirement for continuous monitoring, evaluation, and improvement may be demanding in terms of both time and resources. For many SMEs, this additional workload if often seen as a hindrance rather than a value adding set of activities.
Why the Low Uptake of ISO 14001 Certification?
Despite the clear potential benefits of ISO 14001, the challenges associated with its implementation contribute to its relatively low uptake, especially among SMEs. Many businesses hesitate to adopt the standard due to the initial costs, complexity, and time required to establish and maintain an effective EMS. While ISO 14001 offers significant environmental, financial, and competitive advantages, the challenges associated with its adoption—particularly for smaller businesses—remain substantial.
The Solution
Keeping this in mind, QEMS has been developed at STENUM Asia to support SMEs to align with some of the key aspects of the ISO 14001standard, improving operational performance while driving real change.
QEMS is a simplified, quicker yet effective environmental management system, tailored for SMEs. Considered as a simpler and more manageable first step towards ISO 14001 as certain aspects or requirements of ISO 14001 are in focus. QEMS focuses on key aspects of an EMS which deliver value to the SME, while also helping reduce the environmental impact of the SME.
The implementation of QEMS for SMEs is a structured 8-step process that can be completed in 4 days. The journey begins by understanding the business context of the SME and defining the scope of the environmental management system followed by conducting an eco-mapping assessment to identify hotspots; and develop a tailored Environmental Action Plan. SMEs will formulate an environmental policy with our guidance and conduct the first management review to evaluate progress and adjust accordingly. An internal audit shall be carried out to ensure compliance, followed by a second management review to assess the readiness for certification.
Throughout the process, SMEs are guided with consultations and materials, ultimately setting the foundation for long-term sustainability and potential ISO 14001 certification.
QEMS is currently being implemented in four SMEs in Sri Lanka and have already been established in few others in India, where they have already delivered significant benefits.
The path to environmental responsibility does not have to be complex or costly. QEMS offers SMEs a practical first step towards sustainability, delivering tangible benefits from reduced utility bills to enhanced market reputation. With success stories showing ROI in less than a year and operational cost reductions of up to 30%, the question isn’t whether to implement an environmental management system – it’s why wait? Take the first step today towards a more sustainable and profitable future for your business.
Strategic Briefing on the Delivery of Green Financial Services to Businesses
The Strategic Briefing on the Delivery of Green Financial Services to Businesses brought together experts and stakeholders to discuss sustainable finance in Sri Lanka. The event underscored the urgency of aligning financial systems with environmental goals to address the global climate crisis and build a resilient economy. Key discussions highlighted the role of financial institutions in bridging funding gaps and promoting green economic growth.
Mr. Dilhan C. Fernando, Chairman of Biodiversity Sri Lanka (BSL), emphasised the severe climate risks outlined during COP29, including the slim chances of limiting global warming to 1.5°C. He called for immediate financial investments in developing nations like Sri Lanka to mitigate climate impacts. BSL’s collaboration with the EU-funded Switch Asia project was commended as a benchmark for advancing circular economy solutions. The involvement of the Central Bank Governor was highlighted as critical for fostering a green financial ecosystem to support the nation’s green transition.
Dr. Johann H. Hesse, Head of Cooperation of the EU Delegation to Sri Lanka and the Maldives, shared insights into the EU’s Green Deal, a policy package aimed at climate neutrality by 2050. He celebrated milestones such as the launch of Sri Lanka’s first green bond and stressed addressing barriers like information gaps and limited private investment mechanisms. He also highlighted ongoing EU support for circular economy initiatives, including plastics management under the Switch Asia Plastics Project, and reiterated the importance of partnerships to strengthen Sri Lanka’s financial sector.
Delivering the keynote address, Dr. P. Nandalal Weerasinghe, Governor of the Central Bank of Sri Lanka, focused on the global significance of addressing climate risks. He pointed out the inadequacy of taxpayer-funded initiatives and emphasised the need for innovative financial instruments to attract private sector investments. He outlined the Central Bank’s progress in sustainable finance, such as the 2019 roadmap and the 2022 green finance taxonomy. Despite challenges posed by the pandemic, the Central Bank enhanced sector capacity through training and international collaborations. A new roadmap is being developed, integrating social and environmental considerations to broaden sustainable finance frameworks.
Dr. Weerasinghe also stressed the importance of adaptation finance, alongside mitigation efforts, to address growing climate risks. He called for innovative financial products and increased collaboration to close gaps in Sri Lanka’s sustainable finance progress. The Governor reaffirmed the Central Bank’s commitment to fostering sustainability and enabling a cultural shift toward green development.
The event included a presentation by Mr. Errol Abeyratne, BSL Green Finance Specialist, on the EU Switch Asia Plastics project, which promotes a circular economy through green financing and clean tech solutions. Key achievements included feasibility studies, outreach to financial institutions, and capacity-building programmes for SMEs. Future efforts will focus on increasing institutional engagement and leveraging philanthropic investments for climate risk financing.
Mr. Anushka Wijesinha, Co-Founder of the Center for a Smart Future, presented findings from the Green Finance Maturity Assessment, which identified gaps in operationalising green finance, such as limited internal policies and inadequate risk assessment mechanisms. The study emphasised integrating environmental risk assessments into financial processes to unlock green growth opportunities.
During the open discussion, stakeholders addressed barriers like high costs of green finance, the potential of green bonds, and the role of fiscal and regulatory incentives. Dr. Weerasinghe highlighted the need for institutional coordination to align national policies with international climate goals and foster innovative financing mechanisms.
The briefing concluded with a call for multi-stakeholder collaboration to overcome barriers, advance green finance, and accelerate Sri Lanka’s transition to a sustainable economy. By fostering dialogue, stakeholders can drive ecosystem restoration, green economic growth, and resilience in the face of climate challenges.
