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2.2 Improving Energy Efficiency [Back to Start of Section]The cost saving benefits of energy management have been well publicised. There are often practical opportunities to reduce costs that do not require any capital investment, through good housekeeping and staff awareness. As shown here there are many opportunities for smaller businesses as well as the larger organisations. The following table provides some initial guidance. Further advice and information is available from the Scottish Energy Efficiency Office, The Energy Efficiency Advice Centre and the Business Environmental Partnership
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Moredun Research Institute identified potential annual savings of £10-15,000 through relocating and rationalising freezers, improved lighting controls, more efficient scheduling of steam generators and recycling water. An investigation into energy use at Bell Bakers identified £17,000 potential annual cost savings, of which over £8,000 required little or no capital expenditure. Dalhousie Castle Hotel installed a new heating controller in all bedrooms following a trial which demonstrated 24% costs savings. Energy efficiency measures will soon achieve a further £12,000 pa in savings. Tourist attraction Edinburgh Butterfly and Insect World must maintain high operating temperatures to preserve stock. A recent essential refurbishment of the glasshouse, substituting a polycarbonate material, has reduced heat energy requirements by 25% and offered greater protection for the insects during a recent severe winter. |
2.3 Company and Employee Transport [Back to Start of Section]
With rising fuel costs and increasing congestion, transport issues have become increasingly important for businesses. In addition to the need to use fuel efficiently, a co-operative attempt to reduce congestion will help to improve delivery efficiencies, reduce delays and wasted time, and may reduce employee stress, illness and absenteeism.
Transport |
Recommended Actions |
Company Vehicles Petrol and diesel consumption figures for vehicles can be readily checked by simple monitoring Good driving techniques can reduce consumption by 20%. They also reduce the number of accidents Train journeys may take longer but the time can be used constructively to read reports and prepare for meetings
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Employee Travel & Commuting The optimal management of travel benefits both employer and employee
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Some actual examples of benefits achieved in practice
Agilent Technologies developed a package of measures to encourage employees to consider alternative modes of travel to work, including promotion of bus and rail, facilities for cyclists and Priority parking spaces for carsharers. The Travel Plan achieved a 5% reduction in solo-occupancy car trips. Supported by West Lothian Council and the Chamber of Commerce, the Kirkton Campus Green Commuting Forum was set up to lobby transport providers and to work together to promote and perhaps provide better public transport to the area. City Couriers provides an environmentally friendly courier service including speedy city cyclists and gas powered vans. Not only are harmful emissions significantly reduced, gas is cheaper than other fuels. Benefiting from this unique approach, City Couriers have already established an impressive client list, which includes many of Scotland’s top companies. The Royal Bank of Scotland post a wealth of transport information on their intranet site, which also incorporates a matching facility for employees to car-share to their Gyle offices. |
Contents | Introduction | Cost Savings | Minimising Commercial Risks | Improving Your Commercial Advantage | Making Things Happen | Useful Contacts & Publications
3. Minimising Commercial Risks
It is essential that your company is aware of, and complies with, both current and future legislation, to avoid the expense of dealing with costly clean up and/or other penalties. Ensuring that environmental risks are effectively managed is also critical in minimising the associated commercial risks. The main areas of concern are
Some actual examples of benefits achieved in practice
A review of the effluent treatment system at Dage Precision Industries recommended low cost measures to reduce effluent and extend the life of equipment. Not only will this ensure compliance with Scottish Water standards, but it could potentially avoid capital expenditure of up to £100,000 on a new treatment plant. An investigation was conducted at Deans Finishing to identify sources of zinc in the effluent, to avoid the need to purchase an effluent treatment plant. The solution was to change the process, enabling the company to meet discharge consents, produce a better quality product and save £10,000. Empteezy, manufacturer of plastic and steel storage systems, reduced air emissions by 60% through use of alternative coatings, solvent recovery and varying type range and finish of products. Cost savings of over £9,000 have also been achieved. Prompted by an environmental questionnaire from a major supplier, Duneill Engineering conducted a review which suggested measures to minimise environmental risk and tighten legislative compliance. They also developed posters to raise employee awareness of environmental responsibilities. The customer was so impressed they wrote to complement Duneill on their achievements. |
3.1 Legal compliance [Back to Start of Section]
Environmental regulation is a complex and rapidly changing area. In general, the regulations exist to prevent the release of potentially damaging materials in quantities that are harmful to either the public or the environment. Even if you are not a manufacturer, environmental regulations and standards may still be relevant to you.
The regulations operate in two broad ways - regulations that prevent harmful actions (dumping of asbestos waste for instance) and licenses that control actions so no harm is caused. You need to be aware of what you must not do, and what actions require a licence. This section gives a broad guide but expert guidance is required if you think your business may be affected. The regulating authorities can offer some assistance, but an environmental consultant should be used to obtain full advice on how the regulations affect your business.
What the current Regulations cover:
Those particularly affecting small businesses include:
Disposal of waste from business operations
You must ensure your waste is disposed of legally and that it is removed by a registered carrier, though you may in general transport your own waste to a disposal site. Transfer Notes are required to demonstrate that waste has been passed on correctly. Some hazardous wastes such as used solvents require special documentation.
Receiving, treating and disposing of waste materials
Businesses dealing with waste must be licensed. You also have a duty of care to ensure others who buy, sell or transport your waste are doing so legally and that the waste in your care does not escape or harm the environment or the public.
Recovery of Packaging Waste
if your turnover exceeds £2 million and you handle more than 50 tonnes of packaging material in a year then you may have to register your business and recover a percentage of your packaging waste.
Disposal of liquid waste to sewers and rivers
Trade effluent which includes discharges from vehicle washing, can only be discharged to sewers with the permission of East of Scotland Water, who may prohibit some chemicals and charge for disposal. A consent is required to discharge water to a river (including drains which lead to rivers). You can be prosecuted if you pollute a river or stream and may have to pay for clean-up work - not knowing where your drains lead is not an excuse.
Emissions to the air (dark smoke, grit and dust from industrial processes)
The Clean Air Act 1993 prevents gross pollution of the air from industrial processes. Some more polluting industrial processes are controlled by the Environment Protection Act. If excessive dust, fumes, or odour is created you may cause a statutory nuisance and your local authority may serve a notice on you to stop.
Emissions of solvents (e.g. degreasers, paints etc.) and other volatile substances
If significant quantities of these materials are used you may need to register your process or reduce usage.
Some Industrial Processes
Those that have a particular impact on air quality (small waste incinerators and vehicle body shops for example) are known as Part B processes under the Environment Protection Act and have to have an authorisation to operate. They are specified in the Environmental Protection (Prescribed Processes and Substances) Regulations 1991, available from the Stationery Office.
Use of radioactive sources (such as some non-destructive testing equipment)
These must be registered and their disposal must be authorised, though some low activity sources are exempt.
Future regulations are likely to cover more industrial processes (including poultry farms), disposal of certain types of used product (particularly electrical goods and cars), recovery of petrol vapour from filling stations and abstraction of water from rivers and underground.
Who regulates what
Scottish Environment Protection Agency (SEPA) Contact: 0131 449 7296
- Movement of waste
- Waste storage and disposal sites
- Discharges to rivers (this may include your surface water drainage)
- Operation of large industrial processes and some smaller ones that have an important impact on air quality (such as small waste incineration plants and vehicle body shops.)
- Radioactive sources
- Registering of packaging waste producers
Scottish Water Contact: 08457 420 420
Discharges to public sewers
Local authority
Public health issues, emissions to atmosphere, noise and other nuisance
Legal compliance |
Recommended Actions |
There are many organisations that can help to identify the legal issues relating to business activities. The Duty of Care Regulations are relevant to all businesses which produce waste including offices and the self employed The regulatory authorities are willing to offer practical advice and guidance and many companies have found that working in partnership often leads to benefits for the company as well as the environment |
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3.2 Pollution Prevention & Site Management [Back to Start of Section]
Pollution Prevention is an approach which evolved in the manufacturing industry. Its principles have now spread to the service sector. Prevention is about identifying potential environmental risks and managing them to ensure they do not materialise.
Pollution Prevention will help to:- reduce environmental risks & associated commercial liabilities
- obtain cheaper insurance cover
- avoid insurance and financial implications from pollution prosecution
- reduce waste / emissions and associated costs
- contribute to a positive image / improve employee relations
Pollution Prevention & Site Management |
Recommended Actions |
Many environmentally hazardous chemicals are still widely used even in small businesses. Responding to the concern, the chemical companies are now producing alternatives such as citrus based cleaning agents, low solvent paints and bacteriological alternatives to chemical pesticides As well as ensuring that environmental risks are effectively managed it is good practice to prepare practical emergency and spillage procedures. Even small spillages of oil or cleaning solvents can be expensive to clean up, particularly if they pollute water A well maintained site will help create a good impression with staff, customers and the local community |
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Contents | Introduction | Cost Savings | Minimising Commercial Risks | Improving Your Commercial Advantage | Making Things Happen | Useful Contacts & Publications
4. Improving Your Competitive Advantage
As well as ensuring that your company is efficient in the manufacture of your product or the delivery of your service, there are a number of other ways in which environmental management can contribute to your competitive advantage. The following areas will be considered:
4.1 Meeting Customers’ Environmental Expectations [Back to Start of Section]
Customers are showing increasing interest in the environmental performance of the businesses from which they purchase goods or services. This applies both to the general public as well as commercial customers and can take the form of informal assessments or more formal questionnaires. Some organisations such as the larger companies are also including environmental sections within their tender process.
It is clearly important for any business to be able to respond positively to such interest. Taking the initiative by addressing the environmental issues relevant to your business and by developing an Environmental Policy will help to ensure that you are able to meet your customers’ environmental expectations.
Some actual examples of benefits achieved in practice
Paragon Inks, a small UV Ink manufacturer, has both exceeded customers expectations and achieved competitive advantage by providing a value added service which reduces customers waste disposal costs and generates a profit for Paragon Inks. Paterson SA is the first hairdressing chain in Scotland to develop an environmental management programme. The programme, which includes targets for waste and energy, was partly based on questionnaire research with their customers. To demonstrate their commitment, a copy of their Environmental Policy is displayed in all salons. Following an environmental review, K&I Coachbuilders became the first Scottish company to achieve the Vehicle Builders and Repairers Association‘s quality standard XL incorporating ISO9002, which includes environmental management. Recognising the growing interest of overseas visitors in environmental issues, the Scottish Tourist Board have developed the Green Tourism Business Scheme to help guest houses and hotels improve and demonstrate their environmental performance. |
4.2 New Market Opportunities [Back to Start of Section]
The environmental sector is regarded as having significant potential, both for conventional businesses that introduce environmental features into their products or services, as well as those which specialise in environmental goods and services.
Some actual examples of benefits achieved in practice
Electronics company Thistle Design, designed and produced an integrated system for water level monitoring. The environment sector has subsequently become one of their main markets, representing 1/3 of turnover, and additional future orders are estimated at £12,000 per year. Recognising the lack of economically viable applications for waste glass, Mac-Glass Recycling developed products from cullet unusable by the container industry. The company now produces a range of products using waste glass as an alternative to sand, transforming the business from a collecting/sorting operation. The Caledonian Tree Company developed an innovative root enhancement system made from post-consumer recycled plastic. With support from Midlothian Council the company relocated manufacturing to Scotland where it will further develop the product range. Living Water has clients throughout the UK for their natural treatment systems. As well as treating waste waters, the reed beds and constructed wetlands attract wildlife and become attractive features in their own right. |
4.3 Planning for the Future [Back to Start of Section]
With so many issues to be addressed on a day to day basis, businesses rarely have time to take a step back and plan for the future. When opportunities arise, it is important to consider the environmental factors which could be relevant to your business, as part of the planning process.
As examples:
- Following the introduction of the Landfill Tax and the Climate Change
Levy, it is expected that the Government will introduce other tax measurers
such as:
- an aggregates tax on raw material extraction
- reductions in VAT for further energy saving materials and actions
- incentives to promote the use of natural gas for vehicles
- The development of new environmental technologies might make conventional technologies obsolescent
From a wider perspective, as governments and others respond to the challenge of Sustainable Development it is essential that small businesses evaluate the implications from a strategic perspective to ensure survival and take advantage of new business opportunities.
One useful method to help you identify possible factors which need to be considered involves analysing possible trends under the five headings:
| Political / Legal Policy initiatives, new
regulations Economic Tax incentives, least cost production Socio-cultural Population demographics, lifestyle changes, attitudes, consumerism Technological New technological developments, rate of obsolescence Environmental Product/service design, efficient processes, waste minimisation, Producer Responsibility initiatives |
Gaining a Competitive Advantage |
Recommended Actions |
It is becoming increasingly common for organisations to ask their suppliers for copies of their environmental policies and evidence that they are complying with environmental regulations Many companies are now actively responding to the environmental challenges affecting their industry by developing new products and services with associated environmental benefits |
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Contents | Introduction | Cost Savings | Minimising Commercial Risks | Improving Your Commercial Advantage | Making Things Happen | Useful Contacts & Publications
5. Making Things Happen
From a business perspective, it is essential that you are efficient in your use of resources and comply with those regulations which relate to your activities. As discussed in the previous chapter, it is beneficial to address the wider environmental issues to help maintain and enhance your business competitiveness.
Those companies which most successfully realise the benefits of environmental management:
- involve employees and allocate responsibilities
- develop environmental policies and action plans
- regularly review performance
- communicate their policies and achievements to staff, customers and other interested parties
Many companies are also developing Environmental Management Systems as an effective method of managing the environmental aspects relating to their businesses.
Some actual examples of benefits achieved in practice
Building on existing good environmental practice, Capital Cooling prepared an Environmental Policy to demonstrate their commitment to continual improvement. They have now recruited a new employee to further develop the environmental management system. Napiers, the Edinburgh based manufacturer and retailer of natural medicines, creams and ointments already employ a number staff who are very environmentally aware. Largely on their own initiative, the staff have developed an Environmental Improvement Plan and have shared the responsibilities for implementing the plan. Not only does this help to meet their customers’ demands for high environmental standards, it has also developed a strong sense of pride amongst the staff. Alba Trees put key staff through an environmental training session as a first step in development of their environmental management system. Work is ongoing towards ISO 14001 accreditation which will further enhance the company‘s credentials in a market that is very aware of the issues. Macmerry Industrial Estate, was surveyed by an Environmental Placement Programme student to identify key issues, as part of an environmental awareness raising initiative The Macmerry Sustainability Partnership has now been established with East Lothian Council, Power Systems Scottish Power and Scottish Water to help businesses benefit from the opportunities identified. |
5.1 Involving Employees [Back to Start of Section]
Employees are often an excellent source of ideas for environmental improvements and can often be motivated by being involved. Furthermore, their active support is going to be critical if the business is to successfully implement improvement plans. Personnel development programmes such as Investors in People provide an excellent framework within which to incorporate environmental training.
Encouraging and raising awareness of environmental issues with employees will both motivate and encourage staff loyalty, as well as helping you to realise the wider commercial benefits of environmental management.
5.2 Environmental Policy & Action Plan [Back to Start of Section]
An Environmental Policy is a formal commitment, which sets out your approach to the environment and your longer term objectives. It should be promoted to employees, customers and any other stakeholders in your business. The policy should include a commitment to meet all relevant regulatory and legislative requirements plus a commitment to continual environmental improvement.
In order to ensure that the Policy is implemented, it is a good idea to develop an Environmental Action Plan. The plan will include more detailed objectives, agreed by management and staff, and will be reviewed regularly.
It is likely to be most effective if the objectives and targets are measurable and realistic, and if responsibilities and resources are allocated to each objective, with target dates for completion.
Making things Happen |
Recommended Actions |
Many organisations, publications and consultants give practical guidance on the development and implementation of environmental policies and action plans, as well as the development of more formal environmental management systems It is often a good idea to run staff awareness programmes and to establish environmental action teams to help get the employees involved The Institute of Environmental Management has recently been established to support the professional development of environmental managers |
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Example Environmental Policy
This is to certify that the management and staff of
Recognise the importance of the environmental issues relating to their business and are committed to:
Managing Director |
Contents | Introduction | Cost Savings | Minimising Commercial Risks | Improving Your Commercial Advantage | Making Things Happen | Useful Contacts & Publications
6. Useful Contacts & Publications
6.1 Organisations [Back to Start of Section]
Listed below are just some of the organisations that can provide information and advice to help you with any of the various environmental issues relating to your business.
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Biowise Biotechnology at work Helpline Tel: 0800 432 100 www.dti.gov.uk/biowise |
Biowise aims to help companies find biotechnology solutions to industrial problems including treatment of effluents/emissions and the remediation of contaminated land. Biowise can provide both advice and information. |
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Business Environmental Partnership Tel: 0131 654 1234 www.met.org.uk/bep |
The Business Environmental Partnership (BEP) can provide free advice and practical assistance to help businesses with waste minimisation and environmental management. The BEP can also provide supervised student placements through the Environmental Placement Programme which is run in association with the Shell Technology Enterprise Programme (STEP). |
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Building Research Establishment (BRE) Tel: 01923 66 44 61 www.bre.co.uk/waste |
BRE provides information and advice on the impacts of buildings and their components on global, local and indoor environments. Also provides information on the availability and demand for construction and demolition waste. |
Chambers Of Commerce Edinburgh Chamber of Commerce West Lothian Chamber of Commerce |
Chambers of Commerce provide a local forum for business. Services include business support and advice, guest speakers and events, visits to interesting locations, networking opportunities, business training, and affinity schemes.
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DETR/DTI Joint Environmental Markets Unit (JEMU) Tel: 0207 215 1078 www.dti.gov.uk.jemu |
JEMU aims to provide industry with details of opportunities available for exporting to overseas environmental markets. JEMU currently holds a database of 5,000 UK suppliers of environmental goods and services. |
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Energy Savings Trust Tel: 0131 244 7683 www.est.org.uk |
Manages various programmes to encourage energy savings. Can provide grants, rebates or loans to assist with e.g. installation of energy efficient heating and lighting, and conversion to cleaner fuel vehicles. |
Environment and Energy Helpline |
Free information and advice on every aspect of environmental and energy management, either immediate solutions to urgent problems or longer-term strategies for achieving lower costs and higher profits. |
Environment Council |
The Environment Council has established the ‘Conservers at Work Scheme’ which provides support to individuals who want to improve their company’s environmental performance. The Council also publishes an Environmental Handbook and the ‘Who’s Who in the Environment Scotland’. |
Envirowise |
Envirowise offers free environmental information and practical assistance. As well as advice through the telephone helpline, and an extensive range of publications such as ‘Finding Hidden Profit – 200 Tips for Reducing Waste’, businesses may be able to benefit from a free visit from a counsellor to identify measures to improve environmental performance. |
Graduates for Growth |
Largely funded by Scottish Enterprise Edinburgh and Lothians and supported by CBI Scotland,Edinburgh Chamber of Commerce and the Edinburgh Universities, to assist small and medium companies to employ graduates. Offers a sifting and screening service, followed by a training and mentoring programme. |
| Greentie Centre Tel : 031 46 4202203 www.greentie.org |
The Greentie Centre maintains a user-friendly database of environmental technologies, established in response to Agenda 21, to facilitate the exchange of information on greenhouse gas mitigating technologies. |
| Institute of Environmental Management (IEMA) Tel : 0131 558 8810 www.iema.net |
The IEM is a professional body committed to developing sustainable business practices. It supports members through raising the professional status of environmental management in industry, and furthering environmental competence & best practice. They provide a wide range of information, arrange workshops and publish a regular quarterly journal of best practice, which is also available to non-members. |
Local Authority
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Your Local Authority can provide you with support formany aspects of your business. |
| Lothian & Edinburgh Environmental
Partnership (LEEP) Tel : 0131 555 4010 www.leep.org.uk |
LEEP operate a number of energy, recycling, transport and other environmental projects throughout Edinburgh and the Lothians. |
| Napier University Contact: Martin Askey 0131 455 2672 |
Napier University run a number of short courses on environmental management specifically for businesses. |
New Deal Environment Task Force |
This scheme can assist you to recruit an unemployed 18 – 24 year old to conduct environmental projects, under supervision, and offers wage subsidies and money towards training. |
| RAGS Recycling Advisory Group Scotland Tel : 0131 553 3303 www.rags.org.uk |
RAGS represent and promote recycling and waste minimisation in Scotland. |
Scottish Energy Efficiency Office (SEEO) |
The SEEO promotes many useful publications on allaspects of energy management, including ‘Practical Energy Saving Guide for Small Business’. It can also provide free advice to small and medium sized businesses and may offer a free site visit from an energy advisor to help identify savings. |
| Scottish Environmental Industries
Association (SEIA) Contact : Nita Redfearn Tel : 0131 472 4035 www.seia.co.uk |
The SEIA assists and promotes Scottish-based environmental companies in marketing and exporting environmental technologies and services. It acts as a catalyst for environmental technology development and commercialisation, and provides a point of contact for industry throughout Scotland. |
| Scottish Environment Protection Agency
(SEPA) East Region Office Tel : 0131 449 7296 www.sepa.org.uk |
SEPA has taken over the functions of the Forth River Purification Board, HM Industrial Pollution Inspectorate and the waste regulation air pollution control functions of the old District Councils. |
Scottish Water |
Scottish Water is responsible for the supply of water to businesses, together with the treatment of sewage and industrial effluents. |
Small Business Gateway |
Provides a wealth of advice, information and support for both start-up and established businesses. Aims to be a first stop for all your information needs. |
VIBES Awards |
This annual competition and award encourages business efficiency and competitiveness through improved environmental performance. Check the web-site for case studies on previous winners. |
| Waste Watch Tel : 0171 248 0242 www.wastewatch.org.uk |
Waste Watch is a national agency promoting action on waste reduction and recycling. They produce a UK Recycled Products Guide, with details of companies promoting products manufactured from recycled materials. |
6.2 Other Useful Publications [Back to Start of Section]
As well as numerous publications produced and available through the organisations listed above, the following publications may also be of interest:
| The Better Business Pack NatWest Ventures Tel : 0131 243 4589 |
Produced as a joint initiative between the WWF and NatWest Group, the Pack is full of checklists and practical tips to help increase profits by reducing environmental impact. |
| Croner’s Environmental Management Croners Publications Tel: 0181 247 1175 www.croner.co.uk |
One of a number of practical guides produced by Croners. Regularly updated and also available on CD ROM. |
ENDS |
Monthly report covering environmental issues including environmental standards, industry/policy trends, court activity and events. ENDS also publish a Directory of Environmental Consultants. |
| Environment Business Information for Industry Tel : 020 7393 7845 |
Fortnightly newsletters and bi-monthly magazines covering UK & EU environmental policy, legislation. Environment Business also publishes an Environmental Directory. |
| Environmental Compliance Manual Information for Industry Tel : 020 7393 7845 |
The manual covers all aspects of environmental regulations and is updated quarterly. A computerised version is also available. |
Going Green |
An invaluable handbook of environmental guidance for managers of tourism businesses. |
Green Futures |
Bi-monthly magazine containing information opinion and debate. The focus is on communicating solutions and best practice. |
| Green Guide to Scotland Green Guide Publishing Tel: 0171 354 2709 www.greenguideonline.com |
Eco-friendly consumers directory. Contains only regional listings aimed at enabling the consumer to make decisions on an informed basis. Also available on-line. |
| Green Office Action Plan Friends of the Earth (Scotland) Tel : 0131 554 9977 |
Friends of the Earth produced this guide for busy office administrators who want to help the environment. |
Less is More |
Final report of the East of Scotland Waste Minimisation Project. Contains results of the project and useful case studies. |
Managing Waste – a business guide |
A guide designed to help you understand the production of waste; this contains tools to review waste, checklists and case studies. Some very useful checklists are available free on the web-site. |
| Materials Recycling Handbook Tel : 0181 277 5540 |
A comprehensive guide to specifications for most sectors of recycling in the UK. |
No Time to Waste –a practical guide to waste minimisation |
This useful video takes you step-by-step through the drivers for waste minimisation and outlines a systematic approach, all illustrated with case-studies |
Success & Sustainability |
A guide to sustainable development for owners and managers of small and medium-sized businesses – what it is and why it matters, and what to expect for the future. |
Contents | Introduction | Cost Savings | Minimising Commercial Risks | Improving Your Commercial Advantage | Making Things Happen | Useful Contacts & Publications