|
        
|
|
Executive Report: Why it pays to go green Like any other businesses, hire companies have obligations to meet regarding the challenges of environmental sustainability. Nigel Strickland explains the implications and how they can be addressed with positive results. Open your newspaper, turn on the television or visit any internet news source and it will not be long before you come across a reference to ‘green’ issues. Global warming sceptics appear to be retreating in the wake of new, seemingly incontrovertible evidence that climate change is a reality and happening rapidly. The UK government has introduced a climate bill, making the goal of a 60% reduction in carbon emissions by 2050 a legally binding target. Responsibility for meeting the challenges of sustainability is, however, devolving from being purely an abstract governmental concern, to one that impacts on every individual. Domestic waste recycling, congestion charges, airline taxes and variable vehicle excise duties show how we are all being incentivised to reduce our carbon footprints. Attitudes are changing rapidly at corporate level, with consumers wanting supermarkets and other suppliers to offer sustainable solutions. Marks & Spencer’s recently announced 100-point ‘Eco-initiative’ will cost the company in the region of £200m, whilst Asda’s US parent, Wal-Mart, is committed to using 100% renewable energy and reducing waste. Such businesses are placing green issues high on their corporate agendas as a way of enhancing brand value and as a necessary response to greater consumer awareness. So what impact will climate change have on the hire industry, and how should it react? Already, two major UK hirers are publicly responding with initiatives on green vehicles and introducing awards for both suppliers and customers who are doing most to lessen their impact on the environment. Market driven by climate change The impact of sustainability and climate change on hire can be viewed in two distinct, although not unconnected, areas. Firstly, the industry will continue to respond to a market place that is increasingly driven by climate change, legislation and transformation of demand. Longer, hotter summers and warmer, wetter winters mean that the fleets of most hire companies now include as many coolers and air conditioners as temporary heaters. As
EHN
explained
in
the
January/February
2007
issue,
legislation
demands
greater
thermal
efficiencies
in
new
construction,
resulting
in
an
increased
use
of
pre-fabrication
building
technology
and
modern
methods
of
construction
(MMC),
with
a
subsequent
requirement
for
new
tool
solutions.
Demand
for
equipment
could
also
be
enhanced
by
refurbishment
programmes
designed
to
Minimising waste Reports
show
that
customers
are
increasingly
favouring
environmentally
friendly
companies
and
more
and
more
businesses
are
demanding
resource
efficiency
from
their
suppliers
and
partners.
Minimising
waste
within
your
business
can
be
one
of
the
most
simple,
yet
cost-effective
ways,
of
improving
your
sustainability,
but
knowing
just
where
to
start
can
be
daunting.
Envirowise
(www.envirowise.gov.uk)
offers
a
government
funded
programme
of
free,
confidential
advice
to
any
business
wanting
to
reduce
its
environmental
impact,
by
exploring
ways
of
reducing
waste
which,
Charges for mains water, sewerage and industrial effluent are all rising, so reducing water consumption is one of the easiest and most inexpensive ways to achieve cost savings, according to Envirowise. The organisation can help businesses identify ways of minimising their water use by understanding exactly where waste occurs and how to reduce it through simple monitoring tools. Typically, an underground water leak can be the single largest cause of increased water consumption, making its detection vital. As a guide, a single 15mm hole will cause leakage of between 400-800 litres/hour, equating to 3500-7000m3 of water each year. This represents a cost in water alone of between £1,330-£4,410 depending upon local charges. However, a good waste minimisation programme will look at every aspect of an organisation’s business, ranging from what is bought in from suppliers, right through to waste disposal. By cutting down on waste at all levels of a company, savings will go straight to the bottom line, and the negative impact on the environment will be reduced. Benchmarking results Recycling, important though it is, is quite different from waste minimisation, which is all about reducing waste at source and not creating it in the first place. It may not sound terrifically exciting, but measuring waste is essential. Only by knowing how much in quantity and cost your company wastes can you can calculate potential savings, track progress and benchmark the results. Apart from its web site, Envirowise provides free helplines, best practice guides and can also arrange site visits delivered by expert advisors. Since 1994, it claims to have helped UK industry save more than £1 billion. Creating an environmental strategy can also bring real benefits to others. By donating redundant IT equipment to organisations such as Digital Growth (www.digitalgrowth.co.uk) you can significantly reduce disposal and storage costs and work in full compliance with the European WEEE (Waste Electrical and Electronic Equipment) directives. Digital Growth's free collection service covers the entire UK mainland and once your old equipment reaches one of its depots, computer experts remove any data to standards that exceed those set by the Ministry of Defence. This service also meets your legal obligations under data protection legislation to irretrievably destroy any personal data held. Equipment is then refurbished and updated before Digital Growth’s distribution teams provide it at low cost to individuals, schools, charities and small community organisations around the world. Using initiatives like these cost nothing, and they again enhance the image of your company to your customers and employees alike. Cutting vehicle costs Another proven way of minimising waste is by cutting vehicle costs through driver development courses such as SAFED, which stands for safe and fuel efficient driving (www.safed.org.uk). This encourages better and more environmentally aware driving among van drivers and consists of training and assessment. It also explains how vehicle condition and maintenance affects environmental efficiency. Launched in January 2006 with initial funding from the Department for Transport, SAFED’s van driver training programme showed that the 7,500 people it worked with averaged an improvement in fuel consumption of more than 24% on a typical day, up to 60% reduction in driving errors, 34% fewer gear changes and a 1.5% reduction in journey time. The organisation calculates that these benefits can equate to annual fuel savings of £500 per vehicle, depending on mileage. Where operators actively monitor and manage the fuel used by vehicles, a fleet’s consumption can typically be reduced by 10%, with an equivalent cost saving. Use of safe and fuel-efficient driving techniques as part of fuel management can make a major contribution to fuel saving. These ideas and initiatives are representitive of the many simple actions and strategies that any size of hire organisation can take as ways of introducing more sustainable working. Much information and guidance to assist businesses comes absolutely free, with the evidence clearly showing the potential positive impact on the bottom line. By engaging workforces in developing a sustainability strategy, you can bring an additional positive dimension to the working lives of all your employees, while cutting overheads. And once you have a strategy, make sure you tell your customers and suppliers, so that you can maximise the strong marketing opportunity it represents. • Executive Hire News › Archives › July 2007 › Executive Report › Why it pays to go green
|
