Green Issues - What are the Benefits of Environmental Management

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1 Introduction – Environment Sense as Business Sense

Businesses have a major role to play in helping protect and enhance the environment.

With regard to dangers like for example climate change through carbon dioxide, the usage of toxic substances, the diminution of the Earth´s ozone layer, the greenhouse effect, the destruction of natural habitats and, above all, the fact that we live in a world of waste- the so-called “green issues” or environmental issues are increasingly important and urgently need to be established in business managements. That our nature and environment will nothing but profit from it is widely known. But what are the benefits companies gain by establishing an environmental management? This paper will discuss what the benefits of environmental management in businesses are. Additionally, it will also glance at some organisations supporting this topic.

2 What are the Organisation´s Benefits of Improved

Environmental Management?

In the following a division into three major sectors of improved environmental management that are waste minimisation, improving energy efficiency and company and employee transport will be made and the organisation´s benefits within these areas are worked out.

Not only for large organisations and companies, but even for small businesses, a reduction in operating costs can significantly improve profitability. Cost savings can be achieved through any of the following aspects, such as waste minimisation, improving energy efficiency and company and employee transport.

2.1 Waste Minimisation

As a matter of fact, everyone and every business produces waste. Due to the Defra (Department for Environment, Food and Rural affairs, UK) England and Wales

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industry, commerce and households produce over 100 million tonnes each year. This is growing at around 3% each year.

Waste is the use of energy, materials and labour for activities which do not add value to the product you make or the service you provide to your customers.

While waste cannot be eliminated, we can reduce its environmental impact by preventing waste wherever possible, and making more sustainable use of the waste that is produced. Thus, waste cannot be eliminated, but minimized.

Minimising waste was traditionally practised only in “green” companies. This is no longer the case: Organisations recognise the extensive benefits that can be gained from the responsible use and reuse of resources and waste. This led to the fact that they developed waste minimisation strategies. Fortunately, as a result, these strategies are delivering environmental, social and financial benefits in the public and private sector, in manufacturing and service businesses, and in small and large organisations. The arrangements for the disposal of wastes combined with acting in accordance with legal requirements can be costly and time-consuming. However, the cost of pure waste is much more than the cost of its management. As a matter of fact, many of the produced waste is avoidable, so that reducing waste means to use less and spend less at the same time which would not only make sense but also would be more efficient. The unavoidable wastes then can be reused or recycled. In this way, efficiency will be increased, the business can maximise its output. Immediate benefits can be gained by introducing a better use of paper in the office or by controlling the use of water. Long-term benefits require more effort, such as changing a manufacturing process where the use of resources is reduced for example.

The UK government´s site of the environment agency gives “Good Reasons Why” waste should be minimised and sums up the most important advantages to businesses: cost savings, environmental benefits, compliance, risk reduction and market positioning (source: http://www.environment-agency.gov.uk/subjects/waste/131528/131597/?lang=_e).

It says that cost savings can be gained by an “increased output, reduced processing time and less waste” through a waste minimisation programme.

Of course, in addition to the cost savings there are many environmental benefits that can be gained by introducing this programme.

When a company respects legislation and acts lawful in terms of the various regulations to protect the environment there is no risk. Otherwise, if there is no

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respectation of the regulations there are many negative aspects for the organisation like bad publicity, prosecution, fines and imprisonment.

As the site also says the different waste management options can be ranked in a Waste Hierarchy which many companies have adopted as the “heart” of their waste minimisation initiatives:

(source: http://www.environment-agency.gov.uk/subjects/waste/131528/131597/?lang=_e)

The waste hierarchy can be described as follows:

• Elimination – of waste is the best environmental option but the most difficult one to realize

• Reduce – purchase less or select products with less packaging

• Reuse - many products and materials can be used again, for example the re- use of shredded paper for packaging etc.

• Recycle - Paper, plastic, glass and metals that are collected in recycling facilities are sent for reprocessing and remanufacturing

• Disposal - Wastes sent to landfill are not reused or recycled, least favourable option (source: University of Technology, Sydney :

http://www.sustainability.uts.edu.au/campusmgt/reducehierarchy.html)