Health & safety: Firms urged to clean up

Achieving environmental excellence need not be too costly. Companies can save money, the environment and increase investor interest by altering their approach, delegates to an environmental conference have been told.

The United Nations Environment Programme meeting in Cambridge on 15 June, heard that environmental excellence could lead to commercial benefit and businesses were encouraged to rethink their systems.

According to Dr Peter Hewkin, from Cambridge Network, businesses mindful of environmental issues win financially — largely through tax breaks and escaping fines.

When British Telecom installed audio conferencing facilities recently it saved £20m in transport costs and reduced the amount of non-renewable resources used and lowered pollution emissions levels.

Construction and facilities management company Carillion has also benefited, saving £60,000 on one project over 11 months simply by better use of water.

Speaking at the forum, Charlie Thomas of Jupiter Asset Management said people want to invest in companies who 'provide solutions to environmental and social problems' and also those who 'minimise the environmental and social impacts of their processes.'

Thomas said he believes that Socially Responsible Investment (SRI) funds perform better. The introduction of FTSE4Good and Dow Jones Sustainability has emphasised how important it is for companies to be socially responsible.

Investors are only too familiar with the huge cost of clean-up operations. They are increasingly attracted to companies that tackle environmental issues head on and look for long-term solutions.

However, Thomas also noted: 'They [companies] still have to make money - that's the bottom line.'

From July the Institute of Business Ethics will certify companies according to their ethical stance. For information email Caroline Hill
chill@cambridgechamber.co.uk