Benefit of using formal externally audited Environmental Management System

This article discusses the benefits of implementing a formal externally audited Environmental Management System (EMS) for Toyota. These benefits include better regulatory compliance, resource efficiency, brand promotion, financing opportunities, sales and revenue growth, credibility, employee motivation, and reduced legal risk.

Benefit of using formal externally audited Environmental Management System
Environmental management system (EMS) can be defined as system that is used to
monitor environmental data for the organisation. The main feature of this system is to
improve environmental performance and design operational process in such manner so that
pollution control can be done. Advantage of using this application for Toyota is described as
below:
 One of the major benefit that Toyota receive by implementing this EMS system is it
can become able to manage regulatory compliances in better manner. Use of this
system always support in knowing responsibility towards environment hence
company can make changes in operations if its operations are causing harm to
atmosphere. Hence regulatory compliances can be managed effectively.
 AS implementation of EMS is done with proper supervision, as company needs to
follow proper policies and procedure hence it is beneficial for Toyota in utilising
resources in most effective manner. This helps in eliminating wastage of resources
hence it aids Toyota in reducing its resource cost to great extent.
 Use of externally audited EMS system gives amazing benefit to organisation as entity
can promote its brand greatly. Business credentials can be highlighted significantly.
By this way Toyota can make its buyers aware with kits operational process. This will
show how committed firm is towards fulfilling its corporate social responsibilities.
Hence entity can market this brand through advertisements and through its annual
reporting system. This will improve brand image of organisation and will attract more
investors towards the brand.
 Use of externally audited environmental management system is used by limited firms
only. It requires changes in exiting process and policies which is not easy to
implement for every firm. Hence companies such as Toyota can get more financing
opportunities by using this EMS system. This will increase its investments from
banks as banks like to give funds to business because it is putting great efforts
towards environmental protection (Set up an environmental management system
(EMS), 2020).
 EMS implementation gives opportunities to Toyota to raise its sales and revenues.
Most of the corporate houses and consumers like to buy services of company that has
effective EMS system.

 Each company which is using this EMS system gets certification from ISO which
raise creditability of Toyota and also can meet expectation of stakeholders. This will
enhance recognition of business unit in market and enterprise can be able to gain
competitive advantage as well.
 Implementation of audited EMS system encourage workforce, as they feel that they
are working with well established firm hence they will be more focus about legality
and norms. By this way Toyota can be able to encourage its staff members and will be
able to retain knowledgeable employees in firm for longer duration.
 EMS will reduce risk of legality as firm which is using audited EMS system and
showing their efforts towards environmental protection gets benefit of less visits of
environment audit team. Apart from this, it has to pay less fees to environmental
regulators hence lighter regulations is another benefit that firm can receive from it.
REFERENCES
Set up an environmental management system (EMS). 2020. [Online]. Available through <
https://www.nibusinessinfo.co.uk/content/advantages-and-disadvantages-environmental-
management-systems-ems >