Envirowise highlights 'twin-threat' to SME
SMEs must recognise the growing impact of CSR and environmental issues on the future of business and start to adopt or highlight existing policies, or risk the twin-threat of losing customers and access to growth capital, Envirowise has today warned.
The government-funded organisations call has been backed by social responsibility experts SustainAbility, who mainly work with the big international companies that are now beginning to put the squeeze on small and medium-sized suppliers, and on joint venture partners and contractors.
The twin-threat to business comes from larger companies recognising consumer demand for socially responsible practices and applying their policies throughout their supply chains, and business financiers increasingly recognising this trend and factoring CSR and environmental issues into their decision-making.
Envirowise points out that companies which have effective environmental policies in place are not only more efficient, saving up to 1,000 every year per employee, but are also less vulnerable to supply chain 'black-listing'.
Dr Martin Gibson, programme director explained: Small businesses that believe CSR and environmental policies are irrelevant need to be aware of the potential consequences. But while the pressures are growing, Envirowise can help to guide companies through what they should be doing, not only to comply with supply chains, but to reduce their costs.
Businesses of all sizes can save as much as four per cent of their turnover by adopting simple low-cost or no-cost measures to reduce waste. At the moment, many businesses are writing off between one and four per cent of their turnover, and I must emphasise thats turnover rather than profit. Using too much water, over-complicated product design or simply throwing away too much, all hit businesses where it hurts in the wallet.
John Elkington, Chairman of leading business advisors SustainAbility, is backing Envirowises call. "As bigger, more vulnerable companies discover new forms of corporate responsibility and start to rattle their supply chains, do-nothing strategies will be increasingly high risk for SMEs", he says.
"Taken together, SMEs have bigger social and environmental impacts across the EU than the more conspicuous big companies. When the European Commission surveyed 7,600 SMEs in 19 European countries, only half engaged in "socially responsible activities" - mainly linked to health, welfare, sports and culture. Most switched-on companies engaged because they felt it was the 'right thing to do', although 75% saw real business benefits."
To help small businesses take the first steps to becoming more resource efficient and reduce their environmental impact, Envirowise recommends considering the following practical no-cost or low-cost measures:
PEOPLE:
Companies working with Envirowise that implement a full programme of measures to minimize waste and make more efficient use of their resources can save up to 1,000 per employee per year. However, this can only be achieved if the business has the full support of all its employees.
1. Encourage staff to flag any waste problems. A good manager will never criticise if waste is brought to his/her attention. Be seen to act, make waste important!
2. Dont keep costs secret. Employees often dont appreciate the value of the materials they are handling, because they havent been told. Talking about savings in s is more meaningful than quoting percentages. Make waste understandable and everybodys responsibility.
PAPER:
The average UK office worker wastes 1584 sheets of A4 paper ever month.
3. Think before you print! Do you really need to print that document or make so many copies of it?
4. Set your printer to print on both sides of the paper by default. It will automatically reduce the amount of paper you use and thus reduce your paper budget.
5. Re-use scrap paper.
6. Issue documents electronically rather than in paper form.
WATER:
Over two-thirds of water use in the average office takes place in the washroom, where substantial savings can be made.
7. Turn off taps fully a 5mmstream of water wastes 528 000 litres of water each year. This could cost up to 705 per year
8. Fit a water displacement device such as a cistern bag supplied free of charge by most water companies or simply a 1-litre plastic bottle filled with water, in toilet cisterns to reduce the amount of water per flush
9. Ensure pipes are well insulated to protect against frost damage.
10. Keep water-using equipment well maintained and check it periodically for leaks.
Envirowise has also recently published a free leaflet called How to develop an Environmental Policy. To receive a copy of the leaflet or for more information on Envirowise, please call 0800 585 794 or visit the website at www.envirowise.gov.uk