Knowledge Centre

1.1 In recent years, the volume of environmental legislation has increased.

• Breaking the law can carry serious criminal and financial penalties as well as generating bad publicity.
• Planning ahead to take account of new environmental standards can minimise the costs of modifying or replacing equipment and updating working practices.

1.2 Good environmental management can bring substantial cost savings.

• For example, in raw materials, waste disposal, energy and transport.

1.3 Increasingly, customers prefer to buy from environmentally responsible businesses.

• Many large companies are 'greening' their supply chain. Some will buy products only from suppliers that satisfy strict environmental criteria.
• Many consumers will pay a premium for environmentally friendly products.

1.4 Business partners are increasingly looking at companies' environmental profiles.

• Banks, insurers and other sources of finance may avoid businesses that do not take environmental matters seriously and expose themselves to unacceptable risk.

1.5 It is easier to recruit employees.

• Many are better motivated when working for a green employer.

1.6 Failure to act in an environmentally responsible way can bring you into conflict with other people - for example, the local community and pressure groups.

2.1 What environmental impact does your business have and how do you manage it? Can it be managed more effectively?

Key areas to consider include:

• The raw materials you use and the products you make (see 4).
• The waste you produce (see 5).
• The energy you use (see 6).
• Any discharges or emissions from your business (see 7).
• Storage and movement of materials.
• How any previous incidents were handled.
• The environmental impact of your business investments and pensions.

Even small office-based businesses will have an environmental impact - for example, the paper and printer toner they use, their electricity and heating, and transport.

2.2 What environmental risks does your business pose?

• What environmental damage could be caused if there was an accident?
• How likely is an accident?
• Are you located in an environmentally sensitive area (eg by a river)?
• Do you offer advice, or manage contracts, that could result in a third party causing environmental damage?

The COMAH regulations (Control of Major Accident Hazards) provide guidelines to help when preparing your risk assessment.

2.3 What environmental standards and regulations apply to your business - now (see 3) and in the future?

• What policies and legislation are being developed by the Government that might affect your products, supplies or operation?

2.4 What do customers, employees, suppliers and others expect of your business?

• Sending out questionnaires can raise expectations, so informal consultations may be more appropriate.

2.5 Does your insurance policy cover environmental risks?

3.1 The fundamental rule is that businesses can be held responsible for any environmental damage they cause.

• There can be serious financial consequences for your business.

  Fines of £5,000 or more are not uncommon and you could receive a prison sentence.

3.2 The extent of legislation affecting your company depends on your type of business. For example:

• In general, there are less environmental regulations for office-based businesses.
• Businesses that have a more direct impact on the environment (eg agriculture, transport, chemicals, construction or manufacturing) are more heavily regulated.

3.3 Several organisations can provide advice on the detailed legislation that affects you.

• The local branch of the Environment Agency, your local authority, your trade association and other sources may be able to provide informed help (see 8).
• Environmental consultants and solicitors can explain the law to you.

Many of these organisations can also help with your environmental review.

4.1 Design products and processes to reduce the use of resources.

• It is often cheaper to buy less material than to waste and dispose of it.

4.2 Design products for re-use.

• Make products that can be reused, repaired and easily recycled.

4.3 Use recycled and recyclable packaging.

• Businesses with an annual turnover of £2 million or more that handle more than 50 tonnes of packaging per year are legally required to 'recover' and recycle a percentage of their packaging waste.

  Ask for advice (see 8).

4.4 Use environmentally responsible materials.

• Avoid using scarce natural resources.
• Avoid buying supplies with excessive packaging.
• Avoid use of hazardous substances and comply with legal restrictions.
• Avoid materials that produce toxic by-products when processed.

4.5 Use environmentally responsible production methods and machinery.

• For example, new refrigerators do not use the ozone-damaging CFC coolant, and they use less electricity.
• There are tax incentives in the form of enhanced capital allowances for energy saving and environmentally beneficial equipment. Loss-making businesses can surrender losses attributable to expenditure on such equipment in exchange for tax credit from the Government. Visit www.eca.gov.uk for more information.
• If you plan to replace existing equipment, such as lighting, boilers or insulation, with a more energy-efficient version you may be able to offset financing costs with the savings you make. Visit www.energyefficiencyfinancing.co.uk for details.

4.6 Use appropriate labelling.

• Inform customers how your products and production processes take account of the environment, and how to recycle or dispose of products properly.

5.1 The best form of waste management is waste reduction.

• The costs of waste disposal have increased significantly over the past few years and this trend will continue.
• Explore opportunities for elimination, reduction, re-use, recycling and recovery before disposal.

5.2 You must store waste safely and securely.

• Store waste in suitable containers which are clearly labelled and ensure waste cannot escape.
• Store normal and hazardous waste separately. For example, fluorescent tubes are hazardous waste and should not go in the normal bin.

5.3 You must ensure that the person collecting and disposing of your waste does so properly.

• Check that your collector has a licence from the Environment Agency.
• Make sure the carrier disposes of your waste at a site that is licensed to accept the type of waste your business generates.
• Fill in and sign the relevant transfer or consignment notes and keep a copy for a minimum of three years.

5.4 If your business is involved in producing or selling electrical and electronic equipment you have to comply with the Waste Electrical and Electronic Equipment (WEEE) Directive.

Search www.businesslink.gov.uk for more details.

6.1 Encourage your employees to save energy.

• Switch off lights and appliances when they are not in use.
• Reduce expenditure on heating by closing all doors and windows, and investing in adequate draught-proofing and insulation.
• Ensure that thermostat systems are seasonally adjusted and working correctly.

6.2 It may be worth investing in new, more efficient equipment (see 4.5).

• Short-term costs can be outweighed by long-term benefits.

6.3 If your present energy consumption is causing concern, consider an 'energy audit' which can help identify the most effective uses of energy in your business.The Carbon Trust (0800 085 2005 or www.carbontrust.co.uk) can provide free advice on energy audits and other methods to reduce your energy bills.

7.1 Discharges of effluent are strictly controlled.

• Ordinary domestic effluent (ie water) can be discharged into ordinary sewerage drainage (unless you discharge excessive amounts).
• You must have consent from the local water company before discharging anything else into a public sewer.
• Accidental or careless discharges are your responsibility. You may be prosecuted even if it is not your fault. For example, if your oil tank leaks or a contractor spills chemicals or fuel onto land.

7.2 You may require authorisations for any emissions into the air from your business.

• You will have to comply with the terms and conditions of the authorisations.
• Unauthorised emissions may lead to prosecution.
• If in any doubt, check with the local authority and the local branch of the Environment Agency.

7.3 Take into account the effect of your business on local people.

• This can include not only discharges and emissions but also noise, litter, dust, smells and so on.
• Transport to and from your business can be a concern (eg lorry noise and fumes).
• Local authorities have powers to protect people from nuisance caused by businesses.
• Assess the potential environmental impact before carrying out any large projects.

8.1 The Carbon Trust offers free advice on how to save energy and reduce carbon emissions (0800 085 2005.

8.2 Envirowise provides free expert advice and information on how to save money by reducing waste (0800 585794).

8.3 Local branches of the Environment Agency (03708 506 506), the environmental health departments of local authorities and other organisations such as the Health & Safety Executive can assist small businesses - often for free.

• You can find free guidance on different environment and efficiency topics at www.businesslink.gov.uk).