Corporate Social Responsibility (CSR) or sustainability is about how companies manage their business processes to
produce a positive impact on society. It deals with our impact, through development, on the environment and requires
us to meet the needs of the present without compromising the ability of future generations to meet their own needs.
Sustainability is about sustained economic growth within a framework of environmental protection and social equity.
France already has CSR legislation in place requiring major companies to report on their social and ethical
performance. At EU level, a CSR framework is at a fairly advanced stage of development. There is little doubt
that environmental and social legislation will increase globally in the next decade. The government in the UK bases
its vision of sustainable development on four broad objectives:
- Social progress which recognises the needs of everyone
- Effective protection of the environment
- Prudent use of natural resources
- Maintenance of high and stable levels of economic growth and employment.
The UK Sustainable Development Strategy
recognises the need for a new, more environmentally sound approach to development, especially with regard to
transport, energy production and waste management. The government wishes to maintain economic growth, but in a more
sustainable way, to ensure that the costs of growth do not result in excessive environmental deterioration or social
injustice.
This increasingly requires socially and environmentally responsible companies to comply with certain government
directives and to provide information on all their business processes. This measurement allows the pinpointing of
inefficiencies and turnaround strategies to be put in place.
This provision of information can be costly, erratic, difficult to collate and a strain on both human and IT
resources. This is where SustainIT can help you.
Your obligations
The Companies Act 2006 includes changes to Directors' duties to their stakeholders and includes Section 172 which
is the first ever statement in statute of directors' duties in respect of the environmental and social impact of
their companies' business. The Act firmly establishes a link between responsible business behaviour and business
success.
There is increasing pressure now from the new legally binding Climate Change Act 2008, carbon saving scheme called
the Carbon Reduction Commitment (CRC) and Energy Certificates. We have summarised some of the legislation below but
click here to find out more about your obligations.
National Drivers for Climate Change
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Climate Change Act 2008 - The UK has passed legislation which introduces the world's first long
term legally binding framework to tackle climate change. The Climate Change Bill was introduced into Parliament on
14 November 2007 and became law on 26th November 2008. It sets a statutory national target to reduce carbon
emissions by 80% by 2050 and brings into force a number of mechanisms to do this, including the Carbon Reduction
Commitment.
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Carbon Reduction Commitment - The Carbon Reduction Commitment is a mandatory "cap & trade"
emissions trading scheme for organisations whose total electricity consumption is greater than 6,000MWh
(approximately £500k pa) or for organisations who use half hourly energy meters. If an organisation falls within
the CRC scheme all electricity and fuel emissions are covered. From 2010 poorly performing organisations will be
penalised depending on their position in a CRC league table.
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Display Energy Certificates - From 1 October 2008 there is a legal requirement for all public
sector buildings with a total useful floor area of over 1,000m2, to show a Display Energy Certificate (DEC) in a
prominent place, clearly visible to the public. This will enable the public to see how energy efficient public
sector buildings are, using a rating scheme similar to that used for appliances.
To know and understand more about these commitments for your company, for a sustainability 'audit' and
recommendations or for how best to measure your sustainability performance contact us,
call 01275 774168 or e-mail
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The Board - half the Board are fully on board and the other half are sceptical
about 'fuzzy' issues such as these that "just get in the way" of the business doing business, ie. 'how much will it
cost and what will we gain out of it?'. This half are still looking to see which department they can palm it
off on. After a period of attrition, many have come round to OHSE (health, safety and environment) but have not
yet embraced CSR/sustainability and its benefits, both for the business and for the environment.
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The Head of CSR/Sustainability Manager - has a good grasp of the terminology,
concepts and issues that underpin sustainability management. They are fully committed to sustainability and, boy, do
they need to be because half their time is spent getting senior level support (see The Board above) or chasing and
cajoling the Ops Manager (see below)!
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The Operations Manager - sort of gets it that reducing energy and waste means
reducing costs, but has a plant/process/factory/logistics chain to run. They just wish that people would leave
them alone to get on with their 'day job' or at least stop using all that jargon and eco-speak and call it what it
is ... efficiency ... and cost savings.
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The Marketing/Sales Team - CSR?? - don't you mean CRM?! (OK - but if it means
that we can stand out from the crowd and attract more customers, then we'll put it int the ads!)
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The 'Eco-Warrior' in the IT Department - believes that protecting the
environment is the only thing that anyone should focus on; normally identifiable because their cycle clips are
still on at lunchtime. When not at work berating you for printing out your e-mails (ok - fair point), they can often
be found in trees or abseiling down John Prescott's house.
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Your Customer - Your Customers don't get the big words and hot air
from some of The Board but are increasingly aware of environmental and ethical issues and are choosing to buy
products from companies who have an obvious commitment to sustainability and don't produce, glossy, unintelligible
CSR reports on non-recycled paper which make Tolstoy envious. They care about their world and are doing their bit,
so make sure that your business is too.
We are all of the above and we understand all of the above, how to work with them (and occasionally round them) to
achieve results - so climb a tree if you have to, but do get in touch on 01275 774168 or
contact us.
