Incentives of Facilities for Environmental Management and the Impact of Their Stakeholders: from the Results of OECD Survey

Abstract

In Japan, a growing number of firms and facilities are introducing an environmental management system (EMS). The adoption of EMS is expected to help firms to significantly reduce their environmental impact. The objective of this paper is to explore the motivation of the facility to adopt EMS, based on the results of the OECD survey which we conducted from April to May 2003. We found that public authorities, customers, and neighborhood and community groups are important stakeholders who influence the adoption of EMS in facilities. We also found that the competitiveness and location of the market of the products are likely to affect the motivation. Moreover, we found that the facilities of publicly held firms are likely to adopt EMS, probably, since the Japanese financial market values the adoption of EMS and raises the market value of the firms which have adopted it.