Development of an environmental performance evaluation (EPE) protocol for a medium-scale forest products-based furniture manufacturing firm in Pampanga, Philippines

The study aimed to develop a reliable and cost-effective firm-level environmental performance evaluation(EPE) protocol for a Pampanga-based medium-scale furniture manufacturer that uses forest products as raw materials. The EPE consists of appropriate parameters, indicators and methods for monitoring and assessment of the firm's management, and operational performances relative to the environmental conditions within the plant site. Results of the initial EPE showed that the firm presently lacks an environmental management system although it maintains good general housekeeping and safety practices. Its manufacturing system generates solid waste materials such as spent container and material trimmings, dust emission mostly during sanding and fumes from finishes and additives. Air analysis indicated that there are pressing concerns regarding the proliferation of nuisance, dust and volatile organic compounds (VOCs) in the sanding and finishing departments. A key informant survey of supporting institutional roles and relationships conducted revealed that managing industrial environmental performance is perceived to be a responsibility relegated to the individual firm since each firm has different strategies that are dependent on the environmental standards and regulation imposed by the Department of Environment and Natural Resources (DENR) and foreign vendors, buyers and traders. Following the ISO 14031 standard, the designed firm-level EPE protocol includes parameters and indicators for measuring the firm's management performance in terms of environmental awards and penalties, operational performance in terms of efficiency of its manufacturing system and environmental conditions considering the management of dust and VOC emissions. The protocol also specifies the mobilization of an EPE group to spearhead the evaluation to be conducted at the last quarter of each year which is the peak of firm operation. Analysis of potential costs and benefits using a SWOT framework indicated that the firm lacks sufficient working knowledge and technical skills adequate understanding of related environmental issues and additional resources. However, EPE application may lead to increasing competitiveness and market demand for its furniture products, products, ensuring health and safety of its workers and employees and improving compliance and conformance to environmental regulations and standards. On the other hand, a benefit-cost analysis showed that the firm will have net present value (NPV) of P19,481,759 and -P2,702,994 with and without EPE, respectively in 10 years at an 18% discount rate. With a benefit-cost ratio (BCR) of 1.36, the firm stands to gain more economic profits with an EPE system set-up despite the additional costs in its implementation; thus, the designed EPE system is more reliable and cost-effective to implement than using the present systems for monitoring and improving firm-level environmental performance.