Sustainable development is an area of risk that, when managed effectively, can create opportunities to innovate, differentiate and enhance reputation and is becoming fundamental to long-term business success. By addressing sustainable development issues, businesses of all sizes have found that they can have a significant impact, and at the same time meet - and sometimes exceed - their business objectives.
More advice on standards and EMS's sources of help, useful links and the Governments position statement on Environmental Management Systems can be found on the Defra website.
Business Case
The World Business Council for Sustainable Development (WBCSD) works to define the business case for sustainable development, and put that vision into practice. It has identified eco-efficiency, corporate social responsibility and innovation as the main business contributions to sustainable development.
The WBCSD believes business can benefit from pursuing sustainable development in two basic ways - by driving cost efficiencies and by generating top-line growth through innovation and new markets.
Driving Down Costs
Waste minimisation, process optimisation and energy efficiency are good for business, as well as the environment. So too is moving from costly "end of pipe" fixes to managing environmental impacts in an integrated way.
- pollution is normally a sign of poor technology and bad management
eg waste or incomplete use of resources - reducing pollution through better technology will almost always lower cost or raise product value / differentiation
- this offsets (at least in part) the cost of compliance with environmental standards
- doing so requires innovation
- new approaches to product design, production, distribution, service
Addressing environmental improvement without innovation eg via end of pipe waste treatment, clean-up or remediation - will inevitably raise cost and harm competitiveness Source:
Professor Michael E Porter, Harvard Business School.
"Towards a New Conception of the Environment-Competitiveness Relationship"
[Michael E Porter and Claas van der Linde:
The Journal of Economic Perspectives 9 (1995) |
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Adopting best practice works and it can improve productivity and profitability significantly. The Government's Envirowise and Action Energy programmes provide practical help and advice to business on cost-savings measures.
Management Systems
All businesses can benefit from minimising their environmental impacts in an structured way. Many use formal environmental management schemes such as ISO 14001 or the EU's Eco-Management Audit Scheme (EMAS).
These formal systems can be implemented in a convenient step-by-step approach using the new British Standard BS8555 which includes environmental performance evaluation, and is especially suitable for smaller businesses. The step-by-step approach was successfully piloted in the DTI-funded Project Acorn.
New Ways Of Doing Business
Innovation and new technology are pervasive in the modern economy. This is creating unprecedented opportunities to meet society's needs and aspirations with greatly reduced environmental impact.
This is not just about using cleaner and leaner technologies - although this will be important. It is also about new ideas and re-thinking business models to find smarter forms of production and consumption that use resources more productively.
Improving the way goods and services are designed, made, delivered, used and disposed. Providing greater value, performance and choice for the consumer - as well as reducing environmental impacts.
Becoming a Leading Player
The Government's aim is for the UK to become a leading player in the new and growing markets for green energy and products, waste minimisation, recycling and re-use.
It is supporting business through a range of activities including the following programmes:
- Carbon Trust
Government backed but business led, it supports the development and adoption of low carbon technology
- Renewable Energy
Supports high quality, innovative R&D projects that offer prospects for improving the performance and/or reducing the cost of energy derived from renewable sources
- Waste and Resources Action Programme (WRAP)
Helps to create new markets for recycled materials and to promote the development and take-up of new recycling technologies
Enhancing Reputation
Increasingly, business is expected not only to provide reliable, competitively priced goods and services but also to play a responsible role in society and take environmental issues seriously. In a globalised world, people also want to feel sure that the businesses are acting in a sensitive and responsible way in developing countries as well as at home.
There have been a number of cases where companies have encountered significant public concern over their activities. Some have been over environmental issues, others over human rights, while some businesses have suffered as a result of working conditions in factories run by sub-contractors in developing countries.
Corporate social responsibility is about meeting public expectations while improving business performance. It can bring real business benefits by reducing risks, enhancing brand value, fostering customer loyalty and motivating staff.
To find out more visit the Government's Corporate Social Responsibility website.
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