This study presentation outlines the role that environmental issues are now playing in business strategy. It looks at the main aspects of environmental legislation also at the role of CSR (corporate social responsibility), with a particular focus on sustainability

1. Business & the
Environment

2. Business is inextricably linked with the
environment

3. Key environmental issues for business
• Sustainability • Complying with
• A “green” supply environmental
chain laws
• Minimising packaging • Carbon
• Promoting emissions
environmental • Waste disposal
policies

4. Main environmental regulations
• Store and treat waste safely and
securely
• Protect employees and environment
from air pollution
• Don't produce excessive noise, smoke,
fumes & other forms of pollution
• Comply with rules for storage and use of
hazardous substances & waste

5. The enforcers!
• Three main environmental regulators in
the UK:
– Environment Agency in England and Wales
– Northern Ireland Environment Agency
– Scottish Environment Protection Agency
• + Local authorities who regulate
– Air quality & pollution
– Noise, odour and light pollution
– Land contamination
– Environmental health

6. Some business benefits of environmental
friendly actions
• Lower raw material costs & waste
disposal charges
• Longer life of assets that are recycled or
repaired
• Trading opportunities with organisations
that will only use environmentally-
friendly suppliers
• Improved customer goodwill

7. What businesses need to look at
• Use of raw materials, water and other
resources (inputs)
• Energy use and its impact on climate
change
• Waste and pollution produced by the
business
• The impact the business has on
employees and the local, wider and
international community

8. The Environment and CSR
Corporate Social
Responsibility

9. Environmental issues are just one part of CSR

10. CSR and the environment – key issues

11. What is a “sustainable” business?
A business that has
no negative overall
impact on the
environment

12. Examples of actions to promote
sustainability
• Using packaging that can be reused or recycled
• Minimising or eliminating the use of hazardous chemicals
and processes that produce harmful by-products
• Working with suppliers to assess and improve their
sustainability, or switching to more sustainable suppliers
• Using more energy-efficient equipment, or using
renewable sources of energy
• Collaborating with other businesses that can use waste
(or supply by-products that can be used as raw materials)
• Eliminating unnecessary activities – e.g. replacing some
business travel with conference calls instead
Source: Adapted from Businesslink

13. Sustainability case – M&S Plan A

14. The aim
“…to be the
world’s most
sustainable
retailer”

15. Why focus on sustainability?
“Sustainability is a key
ingredient of business success,
as it will enable our business to
become more efficient, develop
efficient
new markets and build
customer loyalty.
loyalty
Sir Stuart Rose, outgoing CEO, M&S 2010

16. M&S - the 5 Pillars of Sustainability
Sustainable
Climate Raw Fair
Change Waste Materials Partner Health

17. Another good example: Pret

18. GE – Gains from Sustainability and
Investment in Green innovation
“GE has saved £81 “Investing in
million since Ecoimagination
implementing a has enabled GE
comprehensive to generate $70
sustainability strategy billion in revenue
in 2006” in the first five
years”
http://www.ecomagination.com/about/fact-sheet/

19. Pressure groups forcing the issue on
sustainability
http://www.independent.co.uk/environment/green-living/online-protest-drives-nestl-to-environmentally-friendly-palm

20. More great examples here:
Guardian – Sustainable Business

21. Evaluating sustainability
Costs Benefits
Reduce costs
Higher supply cos
ts
Build brand
Programme inves Motivate & retain
tm en t key
Management & people
reporting Grow revenues &
profit
“On balance…”

22. Key questions for shareholders
• How does this support out business
aims and objectives?
• Isn’t this the job of government?
• Is this something employees &
customers care about?
• Might this backfire on us?
• What are our competitors doing?

23. A strategic approach to sustainability
• Requires the commitment of top management
• Understand how changes will affect employees
and other stakeholders
• Gain commitment and support from those
stakeholders
• Anticipate changes in environmental legislation -
try to be "ahead of the game"
• Set short and long-term objectives for
sustainability projects
• Review progress and objectives regularly

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