Going green is good for business

Going green is good for business

Carbon neutrality and Corporate Social Responsibility (CSR) has been hitting the headlines, but for many businesses it represents a maze of confusion and fears over spiralling costs. Paul Johnson investigates.

For most small and medium-sized businesses, environmental concerns can take a backseat to the very real need to ensure profitability, sustainability and growth. This is especially true among franchise businesses, where the need for return on investment is paramount. Indeed, the NatWest British Franchise Association Survey 2007 found that only 11 per cent of franchise businesses were currently reducing their carbon footprint, while an equally small number were actively reducing carbon emissions. This lack of action is no doubt linked to a fear of incurring extra costs, however in many cases reducing your carbon footprint can save your business money.

The government-funded Carbon Trust is the principal body providing free energy efficiency information and advice to UK businesses, as well as energy audits and financial support for eligible firms. Carbon Trust Chief Executive Tom Delay says: “Implementing straightforward energy saving measures in the workplace could reduce energy bills by up to 20 per cent, enhance their reputation and drastically cut their carbon footprint.”

Business has a critical role to play in tackling the problem as it is responsible for about 40 per cent of CO2 emissions in the UK, and it’s estimated that poor energy efficiency costs firms £2bn a year

Better for business

Going green can be a boost to business, not only to reduce running costs but also sending a powerful public relations message to customers, clients and colleagues alike. A survey by the Carbon Trust found that nearly three quarters of UK consumers are concerned about their own carbon footprint and two thirds are more likely to buy from a company they think is taking action to tackle climate change.
Another study found that almost three in four British families would boycott firms that do not take real steps to cut their environmental impact. So if you’ve turned green, shout about it and you could boost your profits.

Simple steps first

Helping the environment doesn’t have to cost the earth. Measure your franchise network’s carbon footprint, draw up a carbon charter for all staff and develop a sustainability plan, with goals to measure progress. For example make sure lights are switched off when leaving the workplace and turn the thermostat down by one degree to cut heating bills by up to 10 per cent. Computers should be switched off when not in use. £123m a year is wasted by PCs left on unnecessarily. Fitting low energy bulbs which can last for 8,000 hours, will have a lifetime saving of £35 each and pay for themselves within six months to a year. Encourage your staff to print out e-mails only when necessary, and re-use paper that’s been printed on one side. All paper should be recycled when finished with. Set up a company recycling scheme for all recyclable waste and instead of disposable foam cups for coffee, use reusable mugs.

Greener travel

Air travel is one of the worst culprits for carbon emissions. Return flight from London to New York produces about 1.5 tonnes of CO2 per passenger. Cars can be even worse, at about 150 to 200g of C02 per mile for many vehicles, but sharing a car, especially on longer journeys, can cut the impact. Hired cars or car clubs are a good alternative to company cars for occasional trips. Buses should be used for short trips whilst trains are better for longer journeys, as a full train is at least twice as energy efficient as a full car. Franchises with a fleet of vehicles should think about converting to biodiesel, which is made from plant oils and produces about 60 per cent less carbon than normal diesel. Better use of IT can also help replace business travel. The latest videoconferencing, called telepresence, uses life-size screens to make it feel like everyone is in the same room and may more cost-effective in the long run.

Easier commuting

Company organised car-sharing schemes, grants or loans for bikes and secure on-site bike parking can all help minimise the carbon damage from commuting.
The Government’s cycle to work scheme allows employers to loan bicycles and safety equipment to staff as a tax-free benefit. Firms can also claim free bike stands if they draw up a plan to encourage cycling. Allowing staff to work from home some or even all of the time cuts out the commute completely.

WEEE Directive

The Waste Electrical and Electronic Equipment Directive is an EU initiative to encourage re-use and recycling of electrical goods and reduce the amount going to landfill. It came into force on July 1 this year and means that all businesses, including manufacturers and retailers, are responsible for ensuring their equipment is correctly treated and reprocessed, and not just thrown away. Most office or business items are covered, including computer equipment, photocopiers, faxes, phones and fridges. Old computers can be given to charity for use in developing countries but make sure you securely delete sensitive data before recycling. Other unwanted office equipment and furniture can be sold – perhaps on eBay or in the classifieds. Another option is www.freecycle.org, an online resource for giving items away.

Get the grant

Grants, loans and bursaries are available to help organisations wanting to reduce their carbon impact. The Carbon Trust can award some companies interest-free loans of £5,000 to £100,000 to increase energy efficiency. Businesses investing in energy saving also qualify for a tax break which allows them to claim 100 per cent first-year capital allowance on approved equipment such as boilers, lighting and insulation.

Work with partners

Once you’ve minimised your own franchise’s carbon footprint, look at the prints of your business chain, your partners, suppliers, customers and clients, and work with them to minimise carbon emissions. Examples include using environmentally friendly power suppliers, cleaning companies or transport firms. Withholding your custom from non-green suppliers can soon bring about change in others.

Carbon offsetting

This involves planting trees or funding other initiatives to compensate for CO2 used. The Carbon Trust says carbon offsetting is best considered once a firm has tackled its own footprint and should not replace carbon reduction schemes. Offset Organisations include Climate Care and Offset Someplace Else, which offset carbon emissions through a range of environmentally friendly projects.

Businesses can start helping the environment in simple steps. Many carbon saving measures are free to implement, while others - such energy efficiency – will start to save company money almost immediately. Greener firms involved in franchising are not only far more appealing to customers, clients and business partners alike, but the staff running them can be safe in the knowledge they are doing their bit to preserve the planet for generations to come.

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