In Japan, where ISO14001 certifications have passed the 10,000 mark, the need for environmental management has taken firm root among companies. However, in the small-and medium-enterprise sector, and among tiny businesses, there are firms not obtaining ISO certification due to their concern about human resources and increased work load. On the other hand, among businesses that have already succeeded in gaining ISO certification. one does not sense any growth with regard to the continual improvement. Voices from certain quarters indicate there is a lack of incentive to keep on improving. With this background, we herewith present a new system to evaluate the level of environmental management in a company by means of a 5-step system.