An Environmental Audit of the Company Bradken in Relation to its Operations and Activities - Case Study Example

Environmental Audit Name Tutor Course Date Table of Contents Table of Contents 2 Executive summary 2 Introduction 3 Definition of Company’s Key Target Market 5 Planning 6 Current Environmental Information Gathering System 7 Organizational Response Mechanism 8 Behavioral audit 9 Analysis of the nature and type of the environmental safety actions 13 Reporting 14 Recommendations 15 References 18 Executive summary Bradken is an Australian company that manufactures engineering products and machineries used in different sectors. The company targets customers located in different continents including Australia, South America, North America, Asia and Europe. Bradken is a market leader in Australia and it has manufacturing plants located in different parts of the country. The company has both the long term and short term plans to deal with environmental problems. Measurement parameters are used by the company to gather environmental pollution information. The company intends to work within the permissible limits to protect the environment. An environmental policy is in place at the company and its activities are governed by the environmental laws as well as ISO 14001 requirement. An environmental team is in place at the company to enhance the environmental protection processes. Consultations are made during the decision making process and the leaders are involved. The CEO of the company is supportive of the environmental protection measures being developed by the team. The annual energy consumption at the company is about 1,234,537 GJ while the greenhouse gases emission is about 226,666 CO2e tones. This can be attributed to the high energy requirements for its activities. A proactive approach is utilized to protect the environment. This involves putting in place measures such as reduced energy consumption, proper wastes disposal, working with other stakeholders and proper utilization of resources. The transport operations of the company contribute to the high levels of emissions. The reporting mechanism of the company is through the annual reports. It is recommended that the company focuses on alternative means of energy such as wind and solar. Adequate resources should also be availed. Transport mechanism for the finished products and raw materials should also be changed. Introduction Bradken is a leading manufacturing company of heavy machinery and engineering products. The company was established in 1922 by two former BHP steelworks company employees. The aim was to tap potential market at the time. During its establishment, the company was under the name Bradford Kendall Ltd. The company officially changed its name to Bradford Consolidated Limited in 1974 (Bradken, 2). Since then, the company has been undergoing growth and expansion through acquisitions. It has also opened up new branches in the United States of America and China. The company currently has 4800 employees worldwide. It also has 54 sales, service and manufacturing facilities across the world. It is headquartered in Mayfield West, Newcastle, New South Wales in Australia. The company was under the ownership of Australian National Industries Limited (ANI) from 1981 to 2000 (Griffiths, 3). In the year 2000, It was taken over by Smorgon Steel before it was broken up. It was later sold to private equity firm, CHAMP. In 2004, it was refloated on ASX and it is currently a public company. Currently, the company has a strong market presence in Australia, New Zealand, United Kingdom, United States of America, Canada, South America, Malaysia, Indonesia and China (Bradken, 2). The key strength of the company is its high quality products as well as expertise in the field of Engineering. Bradken can manufacture machined cast iron and steel products from a mass of as little as 0.5 kg to 25 tonnes. The major products of the company include metal castings and mining consumables. In order to meet the needs of specific customers in the market, the company has five major divisions which include mineral processing, mining products, Transport & industrial products, Engineering products and Cast metal services (Bradken, 3). As a manufacturing company, some of the activities of the company have the potential of polluting the environment. The paper is an environmental audit of the company in relation to its operations and activities. Definition of Company’s Key Target Market The company has customers in different contents and it also carries out its operations in different continents. The target market of the company is in Asia, North America, South America, Australia and parts of Europe. The demand for the products of the company is also on the increase in countries such as China (Bradken, 3). Transport and communication is an important aspect of business at the company. The company requires transportation as its products are bulky in nature. Shipping is the main mode of transport when the products are being moved from one continent to the other. However, within the same continent, or country, the movement of the products of the company is through road and rail. These methods are cost effective considering the bulky nature of the products. Communication is mainly through the use of phone calls, emails and online methods. The customers of the company are mainly mechanical engineering firms. Most of the customers have a habit of purchasing the products in bulk throughout the year. The company has an effective method of distributing the products. This includes hiring the services of heavy freight companies which distributes the products to the customers (Simson, 6). A tracking mechanism is in place during the distribution process which is aimed at ensuring the products of the company reach the destinations within the required time. The company has sales and service facilities which are also involved in the distribution process. The customers can access the products of the company from these facilities. The company is a market leader in Australia in terms of the products that it produces for various sectors. The products of the company are of high quality as it is manufactured with a lot of expertise. The brand image of the company has also been enhanced as a result of its high quality products used in different industries (Bradken, 3). The prices of the products of the company are competitive. Its affordability has also played an essential role in increasing its sales. The promotional activities of the company mainly involve advertisements. The advertisements are usually run through the print media as well as audio visual media like television. Currently, the company is also advertising its products through the internet. Social media is also used by the company for promoting its products as well as interacting with the customers. The company has sales and services facilities located in different parts of the continents (Simson, 7). The sales and service facilities acts as the distribution point for the products. The market share of the company is about 30% globally while it is the market leader in Australia in some of the sectors. Planning The company has long term and short term plans to enable it carry out its activities effectively. The corporate plan mainly involves improving efficiency at the organization through building the capacity of the staff. Social corporate responsibility is also part of the corporate plan. It mainly deals with the issues related to the society, environment and safety of the employees (de Villiers & Chris, 318). The strategic plan at the company is mainly aimed at growth and expansion. The long term plans of the company involve making acquisitions from different parts of the world. The company also intends to enter into new markets as part of its long term strategies. This has seen the company set aside funds for the planned market expansion. The company also intends to improve on its marketing capacity so as to attract more customers. Plans are also underway to recruit highly qualified personnel so as to improve on the efficiency of the company. The company has plans to fully utilize technology for the purposes of improving on its efficiency. Environmental plans are also in place for enhancing the environmental protection efforts. The long term environmental plan involves improving the manufacturing processes and facilities in order to protect the environment (Bradken, 1). The operations of the company are subject to all the environmental laws in the countries that it operates. Long term plans are also in place to cut down on the greenhouse emission gases. Plans are also underway to reduce the use of energy and other resources as part of the environmental plans. Current Environmental Information Gathering System The company utilizes the measurement parameters to collect information about the environmental issues. The parameters are usually in place to determine the permissible levels for different types of environmental pollutants (Potente, Caroline & Muhsin, 98). The company therefore measures the environmental effects of its activities in relation to the parameters and the permissible levels. The people in the neighborhoods are also involved in the data collection process. This is through notifying the organization about any incident of environmental pollution. The information that is collected is mainly concerned with pollution. This includes the air pollution, water pollution and noise pollution. The information is important as the company in some of its operations utilizes the hazardous materials (Bradken, 4). The environmental data is usually collected frequently by the company in order to promote decision making. The information collected is used for decision making regarding the operations of the company. The company can use the information to make adjustments in order to meet the permissible limit. It enables the company to streamline its operations so as to reduce the amount of pollutants produced. The processes and activities of the company can also be changed based on the information. This is for the purposes of ensuring that the activities do not affect the environment. The decision to reduce the amount of resources consumed is dependent on the data collected (Hofer, et al, 70). This information is also used by the company to determine the use of energy. The environmental policy of the company is also developed based on the information collected. Continuous improvement is also dependant on the environmental information gathered. The key decision makers at the organization are based at every operational plant of the company. This mainly involves the managers who are in charge of environment and health. However, the managers have to consult with other managers before the decisions are implemented. The senior management team is usually informed on the environmental situation and the nature of the decisions that needs to be made. Organizational Response Mechanism The company operates a group wide environmental management system which operates. The decisions at the company are usually made based on consultations between the members. The environmental group members usually meet to review the environmental reports or information that has been provided to them. The decision making process is crucial for an organization when it comes to the environmental issues (Haufler, 10). In most cases environmental teams are usually developed so as to come up with effective decisions. This is considering that the decision is likely to affect the whole organization with some of its operations discontinued. The team membership is drawn from different departments but is headed by members who are experts on the environmental issues. The company is environmentally proactive and it usually put in place measures to prevent environmental pollution (Bradken, 4). However, in case of any incident, the company usually acts immediately. Appropriate action is usually taken based on the cause of the problem. The company through the team also acts immediately to any reports indicating that the activities of the company are polluting the environment. The flexibility of the company makes it easy to act on reports and prevent further pollution of the environment. An appropriate mechanism is also in place at the company to ensure that the wastes are properly managed. Behavioral audit The company has numerous foundries in Australia and other parts of the world. The foundries arte the major energy consumers which is used to melt and heat treat steel. In Australia, the annual energy consumption is about 1,234,537 GJ (Bradken, 4). This amount accounts for about 82% of the total energy consumption at the company. The company has been cutting down its energy consumption over the years and it is within the acceptable limits considering the nature of activities carried out by the company. High energy consumption has negative impacts on the environment as it has negative impacts on sustainability. The raw materials used by the company are mainly steel and scrap metal which is modified to produces various products. The companies that supply the raw materials are based both in Australia and internationally. The company has policies that are used when dealing with the suppliers. The local suppliers mainly use the rail and road to transport the raw materials. The transportation method is a factor that affects the environment. The use of a high number of vehicles has negative impacts on the environment (Zhu, James & Joseph, 145). Shipping is the most preferred mode of transport that is used by the international suppliers. The company also utilizes the road, rail and water transport for delivering its products in the market. Thousands of trucks are used for transporting the raw materials and delivering the finished products. This has direct negative impacts on the environment due to the high amount of emissions. The company is subject to the common wealth laws as well as laws of Australia in terms of the emission of greenhouse gases (Gurran, Barbara & Elisabeth, 102). The operations of the group with regards to the disposal of hazardous substances as well as noise pollution are also subject to the laws. The company has put in place an environmental management system which compiles to the provisions of the International standards ISO 14001. The policy of the company requires a proactive approach which aims at adopting practices that minimizes negative impacts on the environment. Communication is also required with regards to the environmental aspects of the organization (Blowers, 5). The manufacturing and engineering sites of the company have developed, implemented and maintained the environmental policies and standards. Zero notifiable incidents as well as zero justified continuing reducing of wastes are part of the policy of the company. A continuous improvement policy is in place at the company for the purposes of ensuring that it reduces the amount of emissions every year. The identification, investigation and evaluation of energy saving opportunities are usually carried out by the company from time to time. Energy as well as raw materials is usually benchmarked by the company in order to enhance the energy saving opportunities. The company intends to reduce the energy foundries by 3.4% by 2020 (Bradken, 4). The company has put in place measures to ensure that the threshold of 25,000 tpa CO2e is not exceeded. However in 2015, the total greenhouse emission was 226,666 CO2e tonnes. The recordings were carried out in accordance with the policies of the company as well as the national standards. The corrective actions were communicated to the stakeholders through the annual report of the company. Recycling is one of the corrective actions that were utilized by the company (Bradken, 4). Other corrective actions include continuous improvements as well as continuous reduction of reduction in the use of energy. Most of the stakeholders are in support of the efforts that the company has put in place to reduce environmental pollution. There have been no reported incidences among the neighbours with regards to environmental pollution. This is an indication that the environmental policies and efforts of the company have positive impacts. Globally, most of the manufacturing companies are known for high energy consumption as well as environmental pollution (Burton & Noel, 18). In Australia, the companies are required to public their greenhouse gas emissions where it can be accessed by the members of the public. The company has been able to comply with this requirement which has played an important role in ensuring that the company gains support among the stakeholders. Climate change is a major issue in Australia and the world and a lot of focus is on the reduction of greenhouse gases (Pannell, et al, 380). All the efforts of the company are therefore aimed at protecting the environment and ensuring that the greenhouse gases emissions are reduced. Most of the members of public are satisfied with the efforts that the company has put in place to address the problem of greenhouse gases. The company has embraced various mechanisms to ensure that the product is able to improve on its effectiveness in reducing the greenhouse emission. As a leading company in Australia in terms of the number of foundries, the company is utilizing the concept of care practices in order to avoid environmental pollution during the product development (Thompson, 556). The manufacturing facilities of the company are governed by environmental policies which are aimed at reducing environmental pollution. Equipment that produces less emission is also used by the company. Any supplier equipment supplier has to meet the conditions that have been put in place by the company. This is mainly in terms of greenhouse emissions. Modern technological tools are in all the manufacturing sites for determining the levels of pollutions. A concept known as notifiable incidences is in place at the company to ensure that any reported incident is dealt with immediately. The continuous reduction of energy use is also utilized by the company during the manufacturing process. The energy consumption is directly related to greenhouse gases. High energy consumption leads to the production of more greenhouse gases (Gouldson & Joseph, 17). The industrial wastes generated during the manufacturing process are usually reduced through the process of continuous recycling. About 90 tonnes is usually recycled by the company every year. Used or returned products are usually recycled to develop new products. Most of the products of the company are not packaged on paper or other items. This has played an essential role in eliminating environmental pollution during the process. The current Chief Executive Officer of the Company is concerned about the environmental issues and was involved in the development of energy and green house gases policy. The CEO of the company is of the opinion that the environmental protection is part of good governance. According to the Chief Executive officer of the company, this can be achieved by monitoring the greenhouses gases emissions as well as monitoring the energy consumption. The chief executive officer of the company has a managerial and technical background and is fully supportive of all the environmental protection efforts at the company. The inputs of the leaders or senior managers at the company are important in promoting the environmental protection efforts. The involvement of the CEO in the decision making process regarding the environmental issues is high. Involving the top management is important some of the decisions have direct impacts on the business operations (Qi, et al, 130). The company as also put in place measures to ensure that the efficiency is maintained at the office in terms of energy consumption. This is mainly through the use of equipment that consumes a low amount of energy. The energy consumption at the offices accounts for only 10% of the total energy consumption at the company. Most of the wastes generated at the office are usually recycled by the company. The company is law abiding and it complies with the environmental regulations that have been put in place. Performance parameters and strategies to achieve environmental goals are also in place at the company. Analysis of the nature and type of the environmental safety actions The environmental safety actions of the company are mainly proactive. In environmental protection, the proactive measures are mainly comprised of actions that are aimed at preventing negative environmental effects. Recycling of industrial wastes generated by the company is a proactive measure. This is because the accumulation of the industrial wastes usually results to environmental pollution which has adverse effects on the environment. In the environmental protection, the proactive methods are preferred by most of the companies (Boiral, & Jean-Francois, 89). The proactive method of environmental protection is effective as it enhances the ability of the company to monitor the activities that may have negative effects on the environment. Reducing the energy consumed for carrying out different activities is an important proactive measure. The company has been involved in cutting its energy consumption on a continuous basis. This proactive measure has seen the company drastically reducing its energy needs while at the same time expanding its operations. The company despite being the largest manufacturer in the industry is performing well in terms of managing the greenhouse gases. The proactive measures are important in ensuring that the organizations are able to develop effective mechanism of reducing the negative environmental impacts (Boiral, & Jean-Francois, 90). The use of technology as well as equipment that minimizes the use of energy is a proactive as it prevents the negative environmental effects. Continuous improvements at the company is also an indication that the proactive measures are being taken by the organization to prevent environmental pollution. The only reactive mechanism that the company is utilizing is the reporting of incidences. Reporting the incidences is a reactive mechanism that is used to deal with the problem after it has occurred. However, this is only on small scale and it involves the incidents that can be dealt with in a short period of time. The company can achieve its goals and objectives through the use of the proactive method. Reporting The process of reporting the information about environmental protection is important to an organization. It determines its effectiveness in providing the required solutions. The report about the environmental protection is issue is usually contained in the annual reports of the company. The annual report contains detailed information about the emissions generated by the company as well as the measures that have been put in place to protect the environment. The annual reports of the company are usually detailed and it provides clear information to the investors as well as the members of the public about the measures that has been put in place to protect the environment. The presence of a report is important in enabling the members of the public to fully understand whether the company is making progress or not in its attempt to protect the environment (Krut & Harris, 15). Apart from the annual report, the company usually produces an energy efficiency report every year. The report usually provides detailed information about the energy consumption. The measures that the company has put in place to reduce the energy consumption is also provided in the report. The annual energy report is also used by the company for the purposes of continuous improvements. The presence of the annual reports is an indication that the company is committed to reducing the amount greenhouse gases emissions. The opportunities identified for making improvements is also provided in the annual reports. Recommendations It is recommended that the company should continue focusing on reducing the emission of greenhouse gases. Although the company is making progress, the amount emitted is still high and it affects the environment. It is recommended that the company should invest in technological equipment that consumes little amount of energy. Since the company has invested heavily in the mechanical equipment, the replacement of equipment with the ones that are more energy efficient should be carried out in phase over a period of five years. However, the simple equipment should be replaced immediately. The company can change its processes and operations gradually in order to reduce the chances of using a huge sum of money at once. It is recommended that the company should invest in different forms of energy. This includes the use of green energy which is friendly to the environment (Qi, et al, 130). It is recommended that the company should invest in solar and wind energy in order to power its operations. These alternatives are viable in most parts of Australia. It is also recommended that the company should ensure the solar and wind energy is generated and stored for future use. The use of green energy is highly recommended as a measure to protect the environment. It is recommended that the company should embrace the use of solar and wind energy immediately as it is a cheaper option. The green energy is much cheaper and it will reduce the cost of production for the company (Thompson, 556). It is recommended that the company should make changes to its transportation system. The company should reduce its reliance on trucks. The fuel consumption of the trucks is higher as the company has to make many trips to deliver the products to the customers. The suppliers also make a lot of trips during the process of delivering raw materials to the customers. It is recommended that the company should ensure that its products are delivered in bulk and at once. This can be achieved through a proper utilization of the rail transport which has the potential of transporting bulky raw materials and products at once. It is recommended that the company should come up with a transport policy that supports the environmental protection measures. Audits should also be carried out in order to determine the effectiveness of the transportation system (Boiral, & Jean-Francois, 90). It is recommended that the company should work with experts to improve on its accuracy in terms of determining the amount of emissions. This will play an ensuring that more measures are put in place. It is recommended that the company should also continue to utilizing the proactive measures to ensure that it prevents the adverse environmental effects. It is recommended that that the company should also expand its scope in terms of environmental protection. This should target natural resources such as water as the company requires it during some of its operations. It is recommended that the company should enhance its ability to manage the wastes that it generates during the manufacturing processes. The company should develop a waste recycling plant at the site where the wastes are generated. This will ensure that all the wastes are well managed and the negative impacts on the environment are avoided. It is recommended that the company should also utilize green energy for its offices. The use of green energy reduces the emission of green house gases (Blowers, 5). It is also recommended that the company should provide more resources to the committees that are involved in managing the environmental issues. The team should utilize the resources to come up with measures that promote sustainability. The employees of the company should be trained on the importance of environment al protection. It is recommended that the decision making process should be more consultative and the employees should also provide their inputs. The company should also prepare its environmental reports more frequently. This can be done after every three months as opposed to the once every year. Increasing the frequency of developing the environmental reports enables the company to obtain detailed information about the amount of greenhouse gases emitted and the measures that have been put in place to deal with the problem. It is recommended that the company should channel more resources towards enhancing the environmental protection efforts. 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