• 1.1 UNDERSTANDING MANAGEMENT SYSTEMS
• 1.2 IMPLEMENTING A SUSTAINABILITY MANAGEMENT SYSTEM (SMS)
• 1.3 CONDUCTING AN ENVIRONMENTAL ASSESSMENT
• 1.4 SELECTION OF FRAMEWORK AND INDICATORS
• 1.5 THIRD-PARTY VERIFICATION

EMS
An Environmental Management System (EMS) is an organization's approach and methodology to comprehensively and systematically managing its environmental impacts. Through data collection, documentation, planning, and implementation of programs and policies, the objective is to continuously measure and work towards minimizing environmental impact.

ISO
ISO is the acronym used by the International Organization for Standardization. The organization develops voluntary technical standards with the objective of making the development, manufacture and supply of goods and services more efficient, safe, and clean. The ISO 14000 series refers to a category of voluntary standards and guidance documents that supports organizations addressing environmental issues. This category includes third-party EMS certification, standards for environmental and EMS auditing, environmental labelling, performance evaluation, and life-cycle assessment.

SMS
The Sustainability Management System (SMS) process has evolved beyond EMS by integrating social and economic factors with environmental performance into a single approach. There is currently no standard method for SMS. However, because co-operatives are people focused and community oriented, SMS is the most applicable and complementary model to the co-operative structure.

Sustainability is an evolving process, not an end state. A Sustainability Management System is, therefore, an ongoing process that follows a cycle of planning, operating, assessing and reporting, and implementing. Steps to achieve an SMS include:

1) Conducting an assessment;
2) Identifying indicators that track performance;
3) Setting targets for each indicator;
4) Developing and implementing an action plan;
5) Re-assessing performance against the indicators; and
6) Revising the action plan and implementing it.

An environmental assessment is a key aspect of a management system and typically includes the results of steps 1, 2 and 3, above. It transparently reports on a wide range of environmental performance indicators (see 1.4: Selection of Frameworks and Indicators, below). The assessment process allows the co-op to take stock of its environmental performance, pinpoint challenges, strategically bolster its efforts, and highlight its strengths and successes.

Periodic reporting (annually or bi-annually) allows a co-operative to:

• Establish a baseline against which future performance can be assessed;
• Identify environmental impacts such as water and energy consumption, and air pollution;
• Set goals and targets as well as identify strategic opportunities for cost savings and innovation;
• Track and monitor data so as to increase performance through informed planning, decision making, and management;
• Demonstrate the unique value of co-operatives across environmental bottom-lines;
• Increase knowledge transfer to co-op members in order to raise their sense of ownership and level of involvement;
• Be transparent about its operations, which can attract more potential members and serve as a resource or example for the broader community to emulate; and
• Assess progress towards its objectives so as to continuously improve performance.

Good examples of sustainability reports that contain an environmental assessment component have been produced by Vancity Credit Union, The Co-operative Bank, Desjardins, Mountain Equipment Co-op, and The Co-operative Group.

A framework is a consistent approach to an assessment, and sets out the principles and indicators that organizations can use to measure and report on performance. The most widely used sustainability reporting framework is the Global Reporting Initiative (GRI); it is applicable to organizations of all sizes. Co-op developer Russ Christianson has created an assessment framework specifically for co-operatives; this Co-operative Sustainability Scorecard is free to co-ops.

The process to select indicators could involve the steps listed below.

1) Select a person, a team, or an organization that will lead and oversee the sustainability assessment process and potentially provide or seek out further guidance, if necessary.
2) Convene a multi-stakeholder advisory group that will inform the selection of an environmental sustainability reporting framework (including indicators and principles), as well as determine the data collection process.
3) Work with the group to determine a framework in order to select and replicate, or create indicators appropriate to your co-operative.
4) Collect the data relevant to the indicators chosen.
5) Draft the assessment by compiling and analyzing the data collected.
6) Circulate the assessment.
7) Obtain feedback and adjust future assessments accordingly.
8) Use the assessment to plan, implement, measure, and evaluate progress.

Environmental sustainability auditing, like financial auditing, provides an additional level of assurance to co-operative members and society in general. At least two co-operatives, Mountain Equipment Co-operative and Vancity Credit Union, have used third-party verification for this purpose.

AccountAbility is an organization that promotes accountability innovations for
sustainable development through the development of principles, standards, and indices.