Environment and Sustainability news and comment CCB 115
February 07, 2011
News of the Environmental Agency’s new civil powers is yet another sign of the onset of greater environmental regulation for companies. Regulation, coupled with heightened stakeholder demand for eco-products/services and ever more stretched natural resources, will make the environment an increasingly important issue for businesses over the coming decades. The majority of companies have now woken up to the issue of climate change and, in most cases, environmental management has moved from a bolt-on to become a central function. Despite this, there remains a lack of environmental expertise amongst senior business leaders.
The role of the CEO is to create value for a company’s stakeholders in a competitive marketplace. Historically, the skills needed by senior executives have included: sales and marketing, to generate value by meeting consumer needs; expertise in delivering economies of scale, especially as manufacturing has become more global; and, finance, with mergers and acquisitions an increasingly important factor in creating value. As environmental issues start to have a greater influence on almost all aspects of business, are the CEOs of today equipped to ensure they generate maximum value for their companies in the future?
A buzz word in the corporate world during the global recession has been ‘sustainable’ business. Stuart Rose, the outgoing Chairman of Marks & Spencer, said last month that despite the efforts his business has made through Plan A, they had ‘only done about 10% of what is needed to become a truly sustainable business’. What is clear is that the CEOs of tomorrow will need to have the necessary environmental expertise to be able to successfully navigate through the myriad of risks and opportunities that will face a company right across its value chain. To be a sustainable business, the challenge will be to use innovation to create new business value in a world of greater environmental regulation, changing stakeholder demands and dwindling resources.
Chad is a senior consultant at Corporate Citizenship.
Email him at chad.rogerson@corporate-citizenship.com to discuss assurance, community, impacts, new business, stakeholder engagement and strategy development.
2010 Green Awards winners
In 2010 the 5th annual Green Awards took a leap forward, opening its doors to worldwide participation across the 16 award categories and introducing a mobile platform to facilitate public voting for the “Best Green Apps and Applications” category. Entries were received from most parts of the globe, including China, India, Romania, United States, Denmark, Australia, South Korea and Sweden, with the winners announced on 3 December at an event in London. With criterion of creativity, sustainability and effectiveness, successful companies included Kingfisher plc, owner of B&Q, for their CSR report, WMMorrison Supermarkets for best educational programme ‘Let’s Grow’ and Toyota Sweden for best green mixed media.
The 2012 Ford Focus, on sale early 2011, uses cottons from recycled clothing in areas such as carpet backing and sound-absorption materials for interior quietness. With the equivalent of approximately two pairs of old blue jeans per car, the recycling of these materials means less waste is sent to landfill while also reducing the need for water, fertiliser and land to grow virgin cotton. This latest initiative forms part of Ford’s strategy to increase the use of non-metal recycled and bio-based materials in its products, which currently include soy foam seat cushions, recycled resins for underbody systems, recycled yarns on seat covers and natural-fibre plastic for interior components.
The UK Environment Agency has been granted new civil powers to complement existing regulatory powers with a view to making environmental law enforcement more flexible. As of 4 January, businesses that cause environmental damage may face civil sanctions rather than prosecution. Powers will include monetary penalties, making business repair environmental damage and preventing businesses from continuing operations that are damaging the environment. Organisations will also be given a formal opportunity to restore voluntarily any damage they cause. While expected to be used sparingly, introduction of these new powers aim to make it easier and more cost effective for businesses to operate within environmental laws.
National Grid’s environmental work in Leeds was praised by conservation volunteering organisation BTCV at its annual Green Heroes awards ceremony in London on 26 November. The National Grid team won an award in the Local Partnership category for its work with BTCV at the Skelton Grange Environment Centre, which provides an environmental education resource for the region. National Grid has supported BTCV since 1995 in the provision of land and contributions to the project running costs. The awards recognise people and groups who have made a special contribution to the environment, often in the face of challenges and difficulties.
British Brewers Commit to Carbon Cuts and Water Efficiency Boost
The British Beer and Pub Association (BBPA) released the report Brewing Green in December, identifying ten sustainability commitments to address almost every aspect of members’ environmental impacts. Commitments include a 17.5% reduction in overall CO2 emissions and an 11% increase in water efficiency by 2020, which respectively translate into 67% and 42% reductions in usage compared to a 1990 baseline – well above government requirements or targets. BBPA acknowledges the brewing industry’s role in helping shape the UK’s environmental record through influencing the supply chain, reducing packaging waste, encouraging recycling and reducing resource use. The industry will also improve data collection to allow for better monitoring and performance management.
Greater London Authority launches hydrogen bus fleet
Zero-polluting hydrogen buses that emit only water were unveiled on 10 December in London, providing a boost to the Mayor’s plans to improve the capital’s air quality. The first buses of a planned fleet of eight started operating on 18 December, with the remaining to be phased in during 2011. Specifically designed for Transport for London, the vehicles use the latest hydrogen fuel cell technology and will form the only hydrogen bus fleet in the UK and the largest currently in Europe. The London bus network is already one of the lowest polluting in Europe and the new hydrogen buses comprise part of a larger drive by the Greater London Authority to reduce pollution in the capital.
Greenpeace released its 2010 Boreal Marketplace review on 14 December, assessing the performance of 23 major forest-products customers on their commitments and concrete actions to protect the Boreal Forest and the endangered woodland caribou. “True leaders”, including Kimberly-Clark and Office Depot, were identified as having influenced suppliers and forestry practices, leading to a major increase in the extent of forests certified to the standards of the Forest Stewardship Council (FSC), the suspension of logging in some wilderness areas and the adoption of environmentally sustainable solutions and procurement policies. Companies categorised as “failing our forests” included Best Buy, Home Depot and Toys R Us, with alleged greenwashing and refusal to work with environmental organisations to improve environmental protection.
One of the first printing firms to achieve EMAS (EU Eco-Management and Audit Scheme) certification in 1999, Oxford printing firm Seacourt has now become the first closed-loop, zero waste company in the industry. A journey spanning 14 years, efforts have included consciously reducing waste; development of partnerships with organisations that could reuse or recycle different streams; and the purchase of wormeries to address canteen waste. Other sustainability initiatives include the use of 100% renewable energy. The company highlights the need for the concept of sustainability to provide a foundation in all decision-making.
According to a survey by GE Capital Real Estate, released 3 December, green building initiatives are a key influencer when tenants decide to sign or renew commercial real estate leases. The survey of over 2,200 office tenants in the US, Canada, France, Germany, Sweden, UK, Spain and Japan revealed that around half of respondents consider initiatives such as energy efficiency and water conservation measures to be of high priority. Japan (59%), Canada (52%) and Sweden (52%) placed the greatest importance on green building practices, with US respondents indicating the least concern at 43%. GE Capital Real Estate is exploring programs such as the installation of electric vehicle chargers and Energy Management Systems (EMS) to promote tenant retention.
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