The Institute of Management’s Karen Charlesworth on how an environmental strategy can help your business.
The concept of “environmental management” was practically unheard of 25 years ago – it simply didn’t figure in managers’ strategies for running a business. Now, a combination of legislation and pressure from suppliers, customers and even shareholders have forced them to change their ways.

What is the legal position on environmental management policies?

Managers have to be alert to potential environmental problems – or face stiff penalties. The government now expects businesses to take responsibility for environmental damage. It introduced the “polluter pays” principle in 1972 and there is a raft of UK and European legislation on environmental issues. This includes the Environmental Protection Act; the Landfill Tax Regulations; the Producer Responsibility Obligations (Packaging Waste) Regulations; the Water Resources Act; the Clean Air Act; the Building Regulations; and the Environment Act.

Are there any other reasons to improve my firm’s environmental performance?

Institute of Management research carried out in 1997 found that, for almost 90% of managers, avoiding liability for environmental damage was their main motivation for introducing an environmental management policy. The next most popular reason was that firms with environmental management policies have a better public image. This in turn improves customer relations and helps recruitment. Most people want to work for organisations that are admired by the public, rather than firms that are accused of harming the environment.

How do I establish an environmental management policy?

First, you should think about whether your business contributes unnecessarily to the depletion of fossil fuels. Working in an energy-efficient pays off in the long run, as a well-insulated or well-designed building requires less energy to heat.

Waste is another big issue. With 50 million tonnes of packaging thrown away annually in the European Union, it is not surprising that respondents to the IOM survey named the disposal of solid waste and the heavy use of paper/packaging as the two main ways in which their organisations impacted on the environment. Building firms need to think about reducing waste by recycling materials and cutting down on packaging wherever possible.

Are there any practical things I can do?

Recycling paper and other office consumables, and adopting energy-efficient measures, such as low-energy light bulbs, are a good start. Some managers who responded to the IOM survey said they had tried to improve their surroundings with lots of green plants in the office to absorb toxins and emissions from PCs, photocopiers and other equipment. Also, it is worth thinking about cutting down on travel to meetings. Tricky negotiations may need to be face-to-face, but, in some cases, a conference call will do just as well.

How should I publicise the policy?

You need to organise all the relevant documentation, then distribute it to staff using your company’s existing communications systems. Then, you should devise an environmental statement. This will also be useful in outlining your policy to the public.

Tips for a green strategy

  • Ensure that codes of practice are relevant and up to date
  • Keep up to date with environmental legislation
  • Ensure that all staff are given training on environmental issues
  • Think about the environmental implications of all actions that the company takes
  • Implement energy-saving measures, such as using long-life light bulbs
  • Try to use recyclable materials, such as paper and plastic, wherever practical
  • Be aware of the environmental policies of your suppliers, competitors and customers. Some clients may only use firms with an environment-friendly reputation