The Environment Agency’s findings that small and medium size enterprises (SMEs) are neglecting basic environmental practices in the current economic climate are worrying although not altogether surprising. As small businesses fight for survival, it’s clear that many still perceive environmental management as a burden rather than a benefit. This short-term approach is not only detrimental to SMEs but for the whole UK economy.
SMEs together account for over 99% of all private sector enterprises in the UK, and over 50% of total private sector employment and turnover. Their support and action in tackling environmental issues will be crucial, if the UK is to achieve its legally binding targets of reducing greenhouse gas emissions by 80% by 2050 and CO2 emissions by 26% by 2020. As well as directly contributing to emission reductions through energy efficiency and waste minimisation, with their reputation for adaptability and innovation, SMEs should be playing a leading role in the Government’s plans to build a low carbon economy.
SMEs stand to make direct financial gains from taking action on environmental issues. With the rising cost of fuel and charges for sending waste to landfill, improving energy efficiency and waste management has a positive impact on the bottom line. Even more importantly, developing an environmental management system helps small businesses to assess and manage environmental risks such as non-compliance with current environmental legislation, as well as helping them to prepare for future legislation. Many small businesses have found adopting environmental business practices has opened up new markets, enabling them to win business from larger corporate customers who are increasingly demanding suppliers meet specific environment standards.
Whilst sophisticated, internationally-recognised environmental management systems such as ISO14001 are appropriate for large companies, it is understandable that SMEs may not want to follow this route. However, there are undisputed business benefits to implementing basic environmental management systems based on existing risk and financial systems.
SABMiller and WWF publish water footprinting report
SABMiller and WWF UK have jointly published a report which explains the water footprint of the whole value chain for SABMiller’s beers in South Africa and the Czech Republic. SABMiller and WWF are working together on water footprinting to improve understanding of the quantity, efficiency and geographical context of water used to produce beer so that it can then be better managed. The two organisations are using the insight provided by water footprinting to develop targeted programmes to improve water management. Contact: SAB Miller www.sabmiller.com
Cadbury New Zealand to revert to palm oil-free chocolate production
Cadbury New Zealand announced on August 17 that it will exclude palm oil from its chocolate following consumer response over the environmental impact of palm oil plantations. The confectionary maker said that the decision to revert to its cocoa butter-only formula was a direct result of consumer feedback. The company has received hundreds of letters and e-mails of complaint following its move in June to replace some of the cocoa butter in its chocolate with vegetable fat, including palm oil. Auckland Zoo, which gave the campaign further momentum last month when it removed Cadbury chocolates from its shelves as part of its ban of all products containing palm oil, said it will reinstate the company’s cocoa butter-only chocolate when it becomes available. Contact: Cadbury New Zealand www.cadbury.co.nz
Green policy ‘ignored’ as small companies struggle
Small and medium sized enterprises are abandoning green business practices as they wrestle with recession, according to a report conducted by NetRegs for the Environment Agency. The SME-nvironment 2009 survey released on August 18 covered 7,000 companies and found a 75% drop in those operating what the agency described as “a basic formal environmental management system”. More than half said the system or environmental policy was of “no use” to their business in the current climate. The report expressed disappointment at the low priority being given to green policies after earlier evidence of an improvement in business practices. In the past two years the number of small businesses reducing energy and water consumption had doubled. Almost 85% were now recycling waste compared with 66% in 2007 and overall 55% had taken some action to reduce their contribution to environmental damage Contact: Environment Agency www.environment-agency.gov.uk
Only 12% of major firms have executive team for sustainability
Many large corporations are merely paying lip service to their environmental policies, according to a new report from the Sustainable Enterprise Institute, released on August 19. ‘The Road Not Yet Taken: The State of U.S. Corporate Environmental Policy and Management’ report found that among companies in the Russell 1000 Index, a stock market index in the US, only 125 have an executive level committee with responsibility for corporate social responsibility or environmental, health and safety oversight. Only 54 of the firms, or just above 5%, have a “C” level executive responsible for such oversight. About 60% of the firms have company-wide environmental policies, although very few of those firms have formalised documents on the topic. Instead, most firms address CSR or EHS in a CSR report or language on the company website, with many of them “not particularly substantive” according to the report. Contact: Sustainable Enterprise Institute www.sustainableenterpriseinstitute.org
Kimberly-Clark to source 40% of fiber from recycled or FSC certified stock
Kimberly-Clark has agreed to source 40% of the wood fibre in their North American division from recycled or stock certified by the Forest Stewardship Council (FSC) by 2011, representing an estimated 600,000 tonnes, an increase of more than 70% over 2007 levels. Greenpeace, which worked with Kimberly-Clark on its revised standards, announced that it will end its “Kleercut” campaign, which focused on the company and its brands. Kimberly-Clark has also set an overall goal of obtaining 100% of the company’s wood fibre for tissue products, including the Kleenex brand, from environmentally responsible sources. The announcement was made on 5 August. Contact: Kimberly Clark www.kimberly-clark.com
Understanding and preventing greenwash: a business guide
A report by Business for Social Responsibility and Futerra Sustainability Communications released recently aims to help companies avoid the most common mistakes in communicating their green activities, and the perception of greenwashing.
It lays out a “greenwash matrix” of the different types of poor communication about corporate environmental activities, and explores the ways firms can move toward messages that more clearly explain their green works. The report also includes a list of the top 10 “signs of greenwash” to help companies avoid making any unintentional mistakes, as well as perspectives from customers, NGOs and the media. Contact: Business for Social Responsibility www.bsr.org
Asda builds social site to push transparency
Asda launched a social networking website in August as part of its plan to become a more transparent business. ‘Your Asda’ has its own URL as well as a link to the existing Asda.com site, and will provide several ways to enable customers to interact with the retailer and share their views. The move is designed to increase customer interactivity and sales. A spokeswoman said: “We have many different ways of getting customer feedback but this is more instant and gives us another avenue of showing we are reacting to queries.” The site includes a blog called “We’re on the case” where customers can talk about specific queries, a “What’s hot and what’s not” element to give shoppers the chance to vote for specific products they want in their local store, a live Twitter feed, and photo gallery. Contact: Asda http://your.asda.com
Mining and metals face growing ethical claims
It has been another bad year for the Basic Resources sector’s ethical reputation; criticisms have increased and demonstrating the social and environmental value of products remains a serious challenge, according to Covalence in a report published on 31 August. The Basic Resources sector ranks 17th out of 18 sectors in Covalence EthicalQuote calculated from July 2008 to June 2009. In the last 24 months, the sector has lost nearly half of its past gains, while the overall benchmark doubled. Criticisms have strongly increased in 2008 and 2009. Alcoa and Rio Tinto are clearly the leaders of the sector and are the only companies to reach the top 100 of Covalence cross sectors ranking, with Alcoa being member of the top 10. Contact: Covalence www.covalence.ch/
The Good Company Seal aims to identify socially responsible companies
Iconoclasts announced the launch of the Good Company Seal on August 13, a new mark which plans to recognize US-based companies which are on the forefront of the Social Responsibility movement. Companies must complete an application process which requires them to demonstrate how their commitment to being a socially responsible business manifests itself in relation to employees, the environment, consumers, the community and suppliers. The application process is structured so as to incorporate specialised certification programmes along with factors unique to specific industries. All applications will be reviewed by an Integrity Committee, comprised of a cross-section of consumers, researchers and business professionals. Good Company Seal recipients will be able to display the Seal on all product packaging, signage, consumer and trade advertising, and public relations communications. Contact: Good Company Seal www.goodcompanyseal.com
Latest paper from Cranfield’s Doughty Centre puts the media under the spotlight
This summer, two high profile stories have brought attention to the corporate responsibility of the media in the UK. News International was accused by a rival newspaper of illegally tapping mobile phones belonging to public figures, and The Daily Telegraph ran a month long expose of MPs’ abuse of parliamentary allowances. A new paper released on 17 August by Professor David Grayson, Director of the Doughty Centre for Corporate Responsibility at Cranfield School of Management explores CR in and of the media. In the report Professor David Grayson expands the focus from how the media covers CR, to include the corporate responsibilities of the media themselves and offers a more complex understanding and appreciation of the role of the media for CR. Contact: Cranfield School Management www.som.cranfield.ac.uk
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