The basic concepts
Resource efficiency lies at the heart of the sustainability challenge for business - particularly during times of economic downturn and with rising concerns over global competition for scare resources and security of
energy supplies, increasing evidence of climate change and the issues of demand versus supply against a background of worldwide population growth.
Many businesses have started on the journey towards sustainability by addressing pollution issues, energy efficiency, cleaner technologies and waste minimisation. Business needs to become more "eco" efficient by creating more value with less resource use whilst also adapting to
climate change impacts by becoming more resilient to the effects of adverse weather (flooding and heatwaves) and taking advantage of new market opportunities that a changing climate will bring.
But there is more to sustainability than just this. Forward thinking businesses are increasingly
progressing towards a more strategic approach, addressing all business
contributions to society’s economic, environmental and social objectives in an integrated way. The increasing emphasis on responding to the challenge of climate change by reducing CO2 emissions
whilst gaining an understanding of how the markets, design and delivery for goods and services will be influenced by climate change and taking action in response is now of paramount importance.
In the South West and throughout the United Kingdom the adoption of energy and environmental management best
practice has proved to work, improving productivity and profitability significantly. There are many national and South West schemes and organisations
to help businesses improve their environmental performance and become more sustainable. This website highlights many of these including the SW Energy & Environmental Management Groups. See also the "Links"
page of this website for links to websites of Environmental Business Support Organisations and Schemes.
Some of the things your business can do:-
• make it your corporate policy to
assess and address your impacts – doing your bit on resource use including energy efficiency and by reducing CO2 emissions,
water consumption, waste, unnecessary travel, etc – and managing these impacts towards continuous improvement through
formal management systems (ie ISO14001 and/or EMAS). Your organisation could make
a public demonstration of its corporate commitment to sustainable business practice by highlighting its policy on the company website and also by reporting progress on improved environmental
performance in its annual report. There are increasing pressures on businesses to report on their environmental impacts. For advice on the "Business Benefits of Environmental Reporting"
and its role in driving progress in our businesses and the public sector towards a resource efficient, low waste economy for the South West see below.
• embed sustainable business practice in the culture of your organisation
- managing change is a very important factor in the success of every business. "Resource Efficiency and Corporate Responsibility - Managing Change" is a useful guide that serves as a self-diagnostic tool
to help managers think creatively about how they manage change. It was first published in February 2004 by GOSW and Envirowise. Endorsed also by the Carbon Trust, the Energy Services and Technology Association and numerous managers and consultants worldwide that have used it, the guide can be found on the BUSINESS
page of this website. Click here to view: Resource Efficiency and Corporate Responsibility - Managing Change
• be "best in class" – explore the
scope for greater eco-efficiency in all aspects of the business and make
full use of benchmarking, monitoring and targeting and other techniques
as well as the help and advice from the Government’s advisory and best practice support schemes. Links to schemes and programmes can be
found on the BUSINESS page of this website.
• embrace the principles of producer
responsibility by caring about what happens to products at end of life,
by working towards greater recycling and recyclability, by taking account
of the different aspects from "cradle to grave" in supplying products and
services, and considering all the implications and opportunities at the
design stage.
• attend to social responsibilities as
a good employer by, for example, encouraging fairness at work; helping staff
to develop their skills; introducing green transport plans; being a "good
neighbour" that is responsive to the local community; and as an ethical trader.
Note. Take into account the issues surrounding the Corporate Social Responsibility (CSR) agenda and the benefits that would
flow to your business:-
improved reputation - affected by the costs and benefits of a company's
goods and services, how it treats its employees and the environment, its record on human rights,
its investment in local communities, and even its prompt payment of bills;
competitiveness -
the advantages of good supplier and customer relationships, workforce diversity and work/life balance, as well
as efficient management of environmental issues; and
reduced risks - better control of risks -
financial, regulatory, environmental, or from consumer attitudes.
Visit the Government's Corporate Responsibility website
BERR - Corporate Responsibility
for further information or the Business in the Community website.
• protect biodiversity by understanding
how your business impacts on habitats and species. Identify any species
or habitats in your area of influence for which there are local or national
Biodiversity Action Plans. You could also identify opportunities to create
habitats and attract species. There are national and local groups that
can help you (e.g. local Wildlife Trusts, RSPB etc) and they can also advise
on the measures you should take to protect species.
• communicate with stakeholders –
customers, the workforce, local community, shareholders – by reporting
on environmental performance against meaningful targets, by utilising product
labelling and making green claims that are legal, decent, honest, and truthful
about products and services so that customers and consumers might respond.
• work with others through the supply
chain, specifying what you want and helping others to comply, or as part
of concerted sectoral action to help improve overall performance, safeguarding
yours as well as theirs. Check that your suppliers are resilient to climate change impacts - for example ask if they or nearby critical infrastructure are vulnerable to tidal, ground water or river flooding.
The Business Benefits of Environmental Reporting
- and its role in driving progress in our businesses and the public sector towards a resource efficient, low waste economy for the South West
REPUTATION
Does your company or organisation have a culture of caring for the environment? Does it have a medium to long-term view of how it will adapt to meet new environmental regulations, alternative low
carbon fuels or sources of raw materials? Is the reduction of waste on its agenda?
These are the question your stakeholders – staff, investors, customers, the local community – increasingly want answered. Environmental reporting can help demonstrate your organisation’s values and improve stakeholder relationships.
ACTION
Once a company or organisation is publicly reporting on environmental impacts, such as annual carbon dioxide emissions and the use of raw materials, then it has become a boardroom issue. Questions start to be
asked. Why did our emissions go up or down last year? What are the financial implications of our waste volumes? Can we do better?
The role of the energy or environmental manager has now become a priority. He or she is pursuing company policy of improving its operational efficiency. He or she has the ear of the board. Environmental reporting can help your organisation raise its game.
Defra has published useful guides on environmental reporting to help you get started or sharpen your act (including guidelines on environmental key performance indicators), visit: www.defra.gov.uk/environment/business/reporting/index.htm.
Reporting on environmental issues and annual financial reporting.
The Institute of Chartered Accountants for England and Wales (ICAEW) in association with the Environment Agency has published (September 2009) a guide on environmental reporting in financial statements. The publication is aimed at those preparing, auditing and using
annual financial statements published by businesses. While written with the specific needs of accountants in mind, it is essential reading for anyone involved in producing annual financial statements. It can be found on the EA website from this link: Environmental Finance - EA.
Formal environmental management systems such as the global standard ISO14001 and the European Eco Management and Audit Scheme, EMAS, can help companies systematically set targets and objectives and report on performance. But even if
you have not got a formal environmental management system, you can start setting targets and reporting progress.
Note.
The Accounts Modernisation Directives (i.e. 78/660/EEC and 83/349/EEC - designed to bring European accounting requirements into line with modern accounting practices applying to financial years starting on or after 1 January 2005) introduced requirements for large private companies to report on environmental or employee matters to the extent necessary for an understanding of a company's development, performance or position.
GETTING STARTED
The "Change Management Matrix" (a stand alone pdf document within the "Resource Efficiency and Corporate Responsibility - Managing Change" guide) on this website (www.oursouthwest.com) is a useful diagnostic tool that management teams can use to start
making progress within their own companies on sustainability issues in a structured way. It
has been designed to help you plot progress and move forward methodically and effectively.
The Global Reporting Initiative (GRI) is a useful source of guidance. GRI is a large network of independent experts with the purpose of developing and disseminating Sustainability Reporting Guidelines for global use.
The GRI guidelines are for voluntary use by organisations for reporting on the economic, environmental, and social dimensions of their activities, products, and services. The GRI incorporates the active participation of representatives from business, accountancy, investment, environmental, human rights, research and labour organisations from around the world. Started in 1997, GRI became independent in 2002, and is an official collaborating centre of the United Nations Environment Programme (UNEP).
HELP AND ADVICE
The region’s sustainability website, www.oursouthwest.com ('BUSINESS' page), managed by GOSW can help managers in industry and commerce access the information and guidance
that is available as well as sources of local help.
www.oursouthwest.com
2010
