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IMPLEMENTATION OF ISO 14001 IN LEATHER INDUSTRY IN ETIDOPIA: THE CASE OF ETIDOPIAN TANNERY SHARE COMPANY BY: GASHAWTESFAYE A THESIS SUBMITTED TO THE SCHOOL OF GRADUATE STUDIES OF ADDIS ABABA UNIVERSITY IN PARTIAL FULFILLMENT OF REQUIREMENTS FOR THE DEGREE OF MASTER OF ART IN DEVELOPMENT STUDIES JULY 2007 ADDIS ABABA if AD D IS Y, SCHOOL OF I"1I1I"1I1q ""* ""'IES IMPLEMENTAT. ON OF'ISO 14001 IN LEA USTRY IN ETIDOPIA: THE CASE OF ~"""·Jfrr"""~T A:NNER SHARE COMPANY ADVISOR: ......... .IJ.t,:.<.L.Jr1 ~- JULY 2007 ADDIS ABABA _--- . . -.----- ADDIS ABABA UNIVERSITY SCHOOL OF GRADUATE STUDIES INSTITUTE OF DEVELOPMENT RESEARCH (IDR) Title Implementation of ISO 14001 in Leather Industry in Ethiopia: The case of Ethiopian Tannery Share Company BY Gashaw Tesfaye Gebreab DEVELOPMENT SlUDIES APPROVED BY THE BOARD OF EXAMINERS: SIGNATURE Dr. Mulugct8 Fe ••h . Institute of Dt>velopment Hesoarol:l Dircctol FACULTY CHAIRMAN n..e _~ .$;IMUA ADVISOR E!e"';XA~I~ Wax' n el ,~b INTERNAL EXAMINAR AcJmowledgement First and for most, [ am greatly indebted to my advisor, Dr. Belay Simane, for his intellectual and constrictive advise in all phases of my research. It is through his priceless and urul1itigated assistance that this study completed successfully. My heart felt gratitude also goes to Ato kebede Amede, EMR of the tannery; Ato Yetebarek Fantahun, Head of Leather Desk of MTI; Ato Mohamed Ali, EPA's Pollution Prevention Department Head; Ato Jemeberu Bekele, AJB Quality Institute; Ato Debebe Yilma, ECPC's Deputy Manager and Head of Environmental Service and LLPTI Laboratory staff for helping me to have access to valuable data and information and also sharing their view on the issue accordingly. Similarly, my deepest indebtedness goes to Ato Yohanes Afework, Ato Neseredin Abrar, Ato Fassil Ambaye, Ato Teshome Meresha and Fanuel Niberet for their support and encouragements. It is a special opportunity to express my gratitude to my family, Kassech Legesse, Sineke Mengistu, Meaza Meresha, Ephreme Tekelu and Derege Gebere for their help interms of prayer and support and encouragement in all respect. Once again, my profound thanks goes to my friends who assisted me to complete this study some way some how. TABLE OF CONTENTS Page CHAPTER ONE I. Introduction ..................................................................................................................... 1 1.1 Background ............................................................................................................. 1 1.2 Statement of the Problem ........................................................................................ 3 1.3 Objectives of the Study .......................................................................................... 4 1.4 Basic Research Questions ....................................................................................... 5 1.5 Significance of the Study ........................................................................................ 5 1.6 Scope and Limitations of the Study ....................................................................... 6 1.7 Organization of the Paper ....................................................................................... 6 CHAPTER TWO 2. Research Methods and Data Source ............................................................................... 7 2.1. Site Selection and Description of the Study Area .................................................. 7 2.2. Strategy for Collecting and Analyzing Evidence .................................................. 8 CHAPTER THREE 3. Related Literature Review .............................................................................................. 13 3.1 Conceptual Related Literature Review .................................................................. l3 3.2 Empirical Related Literatures Review ....................................................................2 4 CHAPTER FOUR 4. Result and Discussion ..................................................................................................... 28 4.1 Motivations and Description of the Tannery's EMS .............................................. 29 4.1.1 Opportunity and Resources ofETSC .......................................................... 29 4.1.2 Motivation of EMS of the Tannery ......................................................... 30 4.1.3 Description of the ETSC's EMS Initial Phase ......................................... 33 4.2 Design Phase of the Tannery's EMS ...................................................................... 36 4.2.1 ETSC'S Environmental Policy ...............................................................3 6 4.2.1.1 Content Analysis ....................................................................... 36 4.2.1.2 Progressive Analysis .................................................................. .38 4.4.2 Envirolm1ental Plalming Phase of the Talmery's EMS ............................ 42 4.2.2.1 Environmental Aspect Identification .......................................... .43 4.2.2.2 Legal, Other Requirements and Views ofInterested Pat1ies ..... .45 II 4.2.2.3 Significant Environmental Impact Assessment .......................... .46 4.2.2.4 Environmental Objective and Target ........................................ .48 4.2.2.5 Environmental Management Program ......................................... 50 4.2.3 Assessment of Significant Environmental Impact of the Talmery Production Process ...................................................................................... 57 4.2.3.1 Input of the Talmery Process ....................................................... 57 4.2.3.2 The TarUlery Production Process ................................................ 59 4.3. Implementation Phase of the Tannery's EMS ....................................................... 65 4.3.1 Competences, Training and Awareness ..................................................... 65 4.3.3.1. Content Analysis ......................................................................... 65 4.3.1.2 Progressive Analysis ................................................................... 67 4.3.2 Interview Result of Competence, Training and Awareness of the Tannery's EMS .......................................................................................... 69 4.3.3 Operational Control .................................................................................... 72 CHAPTER FIVE 5. Stakeholder Perception and Involvement in the Tarmery's EMS ................................... 75 5.1 The Nearby Community ......................................................................................... 75 5.1.1. Socio-economic Background of the Respondent ....................................... 75 5.1.2. Perception of the Nearby Community toward the Health Condition .........7 6 5.1.3 Perception of Nearby Community on Tarmery Activity and Envirorm1ent Issue ..................................................................................... 78 5.2. Stakeholder Analysis .......................................................................................... 82 5.2.1 Stakeholder Categorization ..................................................................... 82 5.2.2. Stakeholders Influence and Support for the Implementation of ISO 14001 in the Tarming Sector .............................................................. 84 5.2.2.1 Primary Stakeholders .................................................................. 84 5.2.2.2 Intennediary Stakeholder. ..........................................................9 1 5.2.2.3 Secondary Stakeholder. ..............................................................9 3 5.2.2.4 Summary of Stakeholders Influence and Support .................... 98 CHAPTER SIX 6. Conclusion and Recommendation ................................................................................. 10 1 6.1 Conclusions ............................................................................................................ 10 I 6.2 Recommendations ................................................................................................... 104 References Annex (A-F) III List of Tables Page Table 1. Environmental Aspect, Impact Objective and Target ----------------49 Table 2. Environmental Management Program of Skins Working Team---- 51 Table 3. Environmental Management Program of Hides Working Team---- 56 Table 4. Resource Usage in the Talmery------------------------------------------ 58 Table 5. The Overall Environmental Significant Impact Assessment Matrix ------------------------------------------------------------------------ 60 Table 6. Laboratory Test Result of the Tannery's Wastewater -------------- 61 IV List of Figures Page Figure 1. Schematic Representation of EMS - PDCA Model ----------------- 22 Figure 2. Organizational Structure of the ETCS's EM ------------------------- 33 Figure 3. Schematic representation of pollution prevention hierarchy ------- 42 Figure 4. Schematic mapping of linkage of environmental policy and other designing component. ------------------------------------------ 48 Figure 5 Chromium Consumption of the same Quantity Product but Di fferent Reci pe ----------------------------------------------------- 53 Figure 6 Salt collected by hand from salted skins. --------------------------- 54 Figure 7. Symptoms of Disease Prevailed in Respondents Family Member -------76 Figure 8. Cause of contact with the tannery activity --------------------------- 78 Figure 9 Stakeholders Right to Return ----------------------------------------------- 83 Figure 10 Skills Development Training Program ofLLPTI ------------------- 94 Figure 11 Stakeholder influence and support the Implementation of ISO 14001 in Leather sector. ------------------------------------------------99 v Lists of Annex Annex A Quatemaries and List of Key Informants Arulex B Envirorunental policy ofETSC' EMS Annex C New Skins Drying Machine (BAT) Almex D Location Map of the Study Area Arulex E Preparation of Nursery Site Annex F Schematic Diagram of Tanning Process VI List of Abbreviations and Acronyms ADLI Agricultural Development Led Industrialization ASTM Americans Standard Testing and Material BAT Best Available Technology BS British Standards CSA Central Statistics Authority (Ethiopia) CP Cleaner Production DAs Development Assistant ECPC Ethiopian Cleaner Production ELLA Ethiopian Leather Industries Association EMP Environmental Management Program EMR Environmental Management Representative EMS Environmental Management System EPA Environmental Protection Authority (Ethiopian) EPO Environmental Protection Office(Oromiya) ESISO Ethiopian Standard International Organization of Standardizations ETA Ethiopian Tanners Association ETSC Ethiopian TannelY Share Company FAO Food and Agricultural Organization FDT Foreign Direct Investment FGD Focus Group Discussion FNG Federal N egari t Gazeta HACCP Hazard Avoidance and Critical Control Point ISO International Organization of Standardizations LCA Life Cycle Assessment LLPTI Leather and Leather Product Technology Institute ME Ministry of Education (Ethiopian) MH Ministry of Health(Ethiopian) MI Ministry of Infornlation (Ethiopian) MTI Ministry of Trade and Industry(Ethiopian) NBE National Bank Of Ethiopia P2 Prevention of Pollution PAs Peasant Association PCP Pentachlorophenol PDCA Plan-Do-Cheek-Act QMS Quality Management System QSAE Quality and Standard Authority of Ethiopia SAGE Strategic Advisory Group on Environment TC Technical Committee UNCTAD United Nation Conference on Trade and Development UNIDO United Nation Industrial Development Organization VA Voluntary Agreement WB World Bank WT Working Team VII

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