Sustainable Business booklet of London RCE on ESD

LRCE-SG-SusBusiness-laidout-110119.docx

A profit-making
sustainable business
for a Sustainable London

London RCE (Regional Centre of Expertise) on ESD (Education for Sustainable Development)
A Sustainability Guide for the Business Sector

Why you should make your business more sustainable,
how to do it while enjoying larger profits, and
how a sustainable business trading in London can help build a sustainable London

This sustainability guide will answer these questions:
What is a sustainable business?
How can we make our business sustainable and profit-making?
Where can we seek support from?
How do we benefit from a sustainable business?
How can a sustainable business help build a Sustainable London?

London Regional Centre of Expertise (RCE) on Education for Sustainable Development (ESD)
http://www.londonrce.kk5.org

Page 1 of 18


CONTENTS
1 A sustainable business: an introduction 3
1.1 What is a business? 3
1.2 Profit vs. Sustainability 3
1.3 A profit-making sustainable business 3

2 How to build a profit-making sustainable business 4

3 Understand and minimise impacts 5
3.1 Minimise impacts on people 5
Employees
Local community
Suppliers
Customers
3.2 Minimise impacts on the environment 5
Resource use and waste production
Emissions
Resource use and waste production, and emissions
3.3 Minimise impacts on people and the environment 10

4 Harness sustainability opportunities 11
4.1 Sustainable innovation 11
4.2 Corporate Social Responsibility (CSR) 11
Workplace
Local community
Marketplace
Environment

5 Communicate sustainability performance 14
5.1 Why communicate? 14
5.2 What to communicate? 14
5.3 How to communicate? 14

6 Support available for a sustainable business 15

7 Benefits of a sustainable business 16
7.1 Cost savings 16
7.2 Employee performance 16
7.3 Reputation 16
7.4 Business opportunities 17
7.5 A winning business 17

8 How a sustainable business helps build a Sustainable London 18
7.1 Socio-economic contribution 18
7.2 Environmental contribution 18

Content & design: Asitha Jayawardena (http://www.aij.t83.net ,asitha_jayawardena@yahoo.com)
Communications Intern, London RCE on ESD (2010)

Guidance from www.businesslink.gov.uk and www.envirowise.gov.uk is gratefully acknowledged.

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1 A sustainable business: an introduction
1.1 What is a business? 1.3 A profit-making sustainable business

A business provides products and/or services The question is: Can a sustainable business
to people who need or want them, i.e. its enjoy profits? Yes, it can!
customers. A business has employees who
work for it. It purchases resources (e.g. raw
materials) and services (e.g. transport) from Can a sustainable business enjoy
suppliers. It operates from a location, profits? Yes, it can!
surrounded by a local community, within a set
of boundaries imposed by regulators. For
But how?
growth, it may need funds from financers and
investors. Moreover, a business consumes
Firstly, understand the adverse impacts of your
natural resources (material and energy) and
business on people and the environment.
produces pollution and waste.
Secondly, minimise these impacts and
communicate your sustainability performance
So, in the process of making available products
to gain the goodwill of the stakeholders and
and services, a business impacts people and
society, or the so-called ‘social licence to
the environment.
operate.’
1.2 Profit vs. Sustainability
In fact, by building sustainable businesses,
forward thinking innovative businesspeople
The fundamental aim of most businesses is to
are fast converting this ‘unsustainability’ threat
earn profit in return for the work done and the
into an opportunity, not only strengthening the
risk taken. The profit increases the wealth of
long term survival of their businesses but also
its owners and contributes to the growth of
increasing their profitability.
the business itself. So profit and the impact on
the wider human and natural world are
This booklet will reveal the secret of building a
integral parts of a business that are usually in
profit-making sustainable business. In the next
conflict. In fact the negative image due to the
three sections, it will describe:
impact of a business on the wider world is
How to make a business sustainable and
increasingly threatening the long term
profit-making
existence of the business itself – let alone its
The support available for building a
profitability.
sustainable business
The benefits a sustainable business will
Businesses are experiencing increasing
offer
pressure to become more sustainable,
especially from three fronts: government and
Finally, it will show how a profit-making
local authority, local community, and existing
sustainable business trading in London will
and potential customers.
help build a Sustainable London. If your
business is outside London, this section will to
a certain extent describe how your sustainable
business will contribute to the sustainability of
your locality and community.

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2 How to build a profit-making sustainable business
What is sustainability? It is being able to be in understanding and then minimising the impact
business indefinitely by minimising the impacts of your business on people and the
of the business on people and the environment environment. And you can build a profit-
while ensuring its financial stability. making sustainable business by taking one
more step forward by harnessing the threats to
opportunities and then communicating your
Sustainability is not a cost. It is sustainability performance.
really about saving costs, improving
Therefore, building a profit-making sustainable
the reputation, harnessing new
business is a four-step ongoing process.
business opportunities, and above all,
building a winning business.
A strategic approach to sustainability

Elements of a strategic approach to
Sustainability is not a cost and is certainly sustainability:
much more than merely complying with the Commitment of top management
current environmental regulations. It is really Understand the adverse impacts of the
about saving costs, improving the reputation, business on people and the
harnessing new business opportunities, and environment and the importance of
above all, building a winning business. sustainability for long term viability of
the business
If you are genuinely interested in building a Talk with stakeholders, consider their
sustainable business, please remember this. viewpoints and involve them, especially
One-off projects have a limited impact on your employees and local community
business’ sustainability performance and Embed sustainability principles into the
image. What you need is an in-depth, strategic way the business is run and developed
approach to sustainability (See BOX). Consider sustainability at all levels of
You can build a sustainable business by decision-making
Establish short term targets and long-
term objectives, envisioning a
One-off projects have a limited sustainable business
impact on your business’s Develop an action plan to achieve them
sustainability performance and
image. Take a strategic approach to
sustainability.

Communicate
performance
Harness
opportunities
Minimise
impacts

Understand
impacts

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3 Understand and minimise impacts
To build a sustainable business, firstly Local community
understand the full adverse impact of your
business on people and the environment, Be a good neighbour. Respect the local
embracing the entire lifecycle of your products community’s right to a quality life. Heavy
across the supply chain (i.e. from the traffic to and from your business or emissions
extraction of raw materials through to the from your factory may make them worry, quite
delivery to the end customer and then to the rightly.
disposal of the product after use).
Be an active partner to your local community.
Employ local people. Purchase from local
Understand the full adverse impact suppliers, helping their businesses. Support
of your business on people and the local activities and organisations. Fund a local
environment and minimise them. community programme, support a local charity,
or allow free use of equipment for community
programmes. Give paid time off to employees
Understand the impact on people: employees, to work on community initiatives.
local community, customers, suppliers’
stakeholders (especially suppliers’ employees This way, the community around your business
and local community) and finally society in will acknowledge you as a good neighbour –
general. one of them. This brings benefits, especially
lowered risk to your business.
Understand the impact on the environment,
too, namely depletion of natural resources, Suppliers
disturbances to ecological services due to
pollution, and piling up of waste. Deal with suppliers responsibly. Treat them
fairly, especially the small scale suppliers. Then
Secondly, minimise these impacts on people they will be loyal to your business.
and the environment as much as possible.
Customers
3.1 Minimise impacts on people
Offer real value for money. Listen to them
Make sure that your business does not because they can offer ideas on how to
adversely affect the wellbeing – physical and improve your products and services as well as
mental – of your employees, local community the business itself. Deal with your customers
and customers, the stakeholders of your responsibly. In brochures tell the truth; don’t
suppliers (especially their employees and local hide anything in ‘small print’. If something goes
communities), and the society in general. wrong, acknowledge the problem and deal
with it.
Employees
Such an approach will build a community of
Be a good employer. Treat your employees loyal customers.
fairly, offer them opportunities for
development and help them achieve a work- 3.2 Minimise impacts on the environment
life balance. Then, they will be happy, loyal and
more productive. Minimise your business’s environmental
impact, focusing mainly on two fronts:
Emissions

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Water is a material that you pay
Efficient use of materials and energy for twice – to receive clean water
The amount of natural resources (material and and then to take away the waste.
energy) is limited and it takes millions of years
for some of these resources to naturally form.
By way of efficient use, the future generations use reduction. And water use has other hidden
as well as we can use them for a long time, costs, such as water treatment, pumping,
allowing time for nature to recycle our waste maintenance, effluent treatment and discharge.
back into useful natural resources.
Top water saving tips
Waste is material of relatively low value.
Efficient use of raw materials and other Water bills are a good place to start,
materials (e.g. water, paper) reduces the but measure and monitor the amount
amount of waste. This way, you will lower the of water used. Then you can identify
consumption of materials, conserving the any unusual change in water use (e.g.
natural resources for future generations. due to a leak) before the next bill and
put it right without delay.
Appoint a water monitor to take
Resource efficiency is not just an periodic site-walks for water use
environmental initiative but an minimisation ideas.
important business process that Ensure pipes are well insulated to
saves money. protect against frost damage.
Replace conventional taps with spray
taps (reduces water use by 60 to 70%,
says www.envirowise.gov.uk)
Waste costs money, and according to Use alternative water sources, such as
www.envirowise.gov.uk, up to 4% of business rainwater harvesting and grey-water
turnover. So resource efficiency is not just an reuse
environmental initiative but an important Consider water efficiency when
business process that saves money. It cuts purchasing new equipment.
waste handling and disposal costs as well as Watch out for dripping taps. According
the impact on the environment due to waste to www.envirowise.gov.uk, a 5mm drip
handling and disposal. from a tap can cost over £900 a year in
water and grey-water treatment costs.
Water is a material that you pay for twice – to
receive clean water and then to take away the
waste. As www.envirowise.gov.uk claims, you Energy generation, especially from non-
can cut your business’s water use by up to 30% renewable fossil fuels, has an adverse impact
by adopting a systematic approach to water on the environment. For example, burning
fossil fuels emits carbon dioxide, contributing
to global warming.
House rules for environmental
sustainability Top energy saving tips

Use natural resources efficiently Install energy efficient equipment
Don’t disturb ecological services (e.g. by Switch off lights and equipment not in
harmful emissions or overexploitation use
of natural resources) Design improvements (windows close
Don’t overwhelm nature’s waste firmly, plumbing not leaking)
absorption capacity (e.g. by producing Practical improvements (in hot
excessive waste or waste that cannot weather, use blinds not air
be recycled, for example) conditioning)

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110119.docx

Efficient energy use will lower the demand for Recycle waste into the same type or
energy and also the need for energy different type of material (e.g. recycle
generation, lowering the impact on the
ation, waste paper into more paper or packing
ore
environment due to generation and use of, material)
especially, fossil fuels. Recover from waste the energy and
minerals embedded in it (e.g. recover the
All energy sources, renewable as well as non
, non- energy embedded in waste plastics to fuel
renewable, have an effect on the environment, cement kilns)
so clean technologies are not an excus to
excuse Disposal of waste in sanitary landfills
overlook energy efficiency.
Look at the business site as a whole and
identify areas where the business produces
eas
Clean technologies are not an most waste and prioritise them first. Put the
excuse to overlook energy sustainable waste management hierarchy into
efficiency. action.

Look at the business site as a whole
Sustainable waste management hierarchy
able and identify areas where the
For sustainable waste management, first you
business produces most waste and
need to measure the waste your business
produces, in terms of quantity and cost. Useful prioritise them first.
information sources include utility bills for
water, electricity and gas consumption and
onsumption
subcontractors for effluent treatment, skips Sustainable waste management hierarchy
and landfill. Then only will you be able to
benchmark and monitor improvements. Reduce:
Reduce waste at the source itself. Design,
Reduce purchase, manufacture or use of produ
products
and materials that reduce the amount of
(most preferred)
waste generated. This will reduce the
amount of raw materials used as well as the
Reuse amount of resources discarded as waste.
Reduce the amount of packaging and
purchase material in bulk. Reduce off
off-cuts
Recycle and rejects. Send and store information
electronically and think twice before
printing. And use both sides of paper for
Recover printing and writing.

Disposal Reuse:
(least preferred) Instead of throwing it away as waste, reuse
a product for the same purpose or some
other purpose. Reuse containers, dr drums
Then, rank the waste management options in and packaging boxes for other purposes,
order of preference, considering the such as bins. Reuse paper from misprints as
environmental impact: scrap paper. Donate reusable books,
Reduce, or if possible, avoid waste furniture, textiles and electrical equipment
generation (e.g. use a mug instead of to charities or waste exchange groups. For
disposable cups) printer cartridges, choose a supplier with a
Reuse waste for some other purpose (e.g. returns policy so that cartridges can be
use jars as pen holders) refilled and reused.
Continued ...........

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Sustainable waste management hierarchy (Continued from previous page)

Recycle:
Recycling either turns waste into a new version of the same product or creates an altogether
different product out of waste. Recycling is an effective way of managing waste once it is
generated. It is an increasing requirement through legislation.

Recycling prevents materials from being disposed of as waste and put them into use, making the
maximum use of the materials and energy gone into making the original product. Recyclable are a
range of products and materials, such as glass, paper, plastics and metals.

Glass, for example, can be recycled into other products ranging from glass bottles to filtration
media for water utilities. Recycling waste glass utilizes the raw materials already consumed and
requires less energy than to melt down the original raw materials when making glass from the very
first step.

Paper can be recycled into more paper or other uses, such as insulation, packing material and
office supplies. In papermaking, the major share of the energy consumption is for pulping to turn
wood into paper. In paper recycling, the input is not wood but waste paper, which saves a lot of
energy.

Plastics can be recycled into a wide range of products, such as carrier bags, PVC sewer pipes,
flooring and window frames, compact disc cases, fencing and garden furniture. Recycling plastics
saves energy and lowers emissions. Since oil is a raw material in plastic making, recycling plastics
saves oil, too.

If you are in manufacturing business, consider ‘Design for Recyclability’.

Recover:
Recover energy and minerals by using industrial waste as raw materials or fuel, usually in another
industry (see Industrial Symbiosis in Benefits of a Sustainable Business).

Co-processing is a widely adopted recovery method that uses the waste of one industry as
alternative sources of energy or minerals (i.e., alternative raw materials) for the production
process of another industry. While disposing of waste (of the first industry) in a safe manner, it
lowers the need for fossil fuels and natural resources for manufacturing (in the second industry).
Co-processing is applicable to many industries, such as steel cement, and glass.

Disposal:
Disposal is the least preferred option and there are two widely adopted methods, namely sanitary
land filling and incineration.

Land filling disposes of waste by way of storage of waste. If not handled carefully, land filling would
cause groundwater pollution and emit carbon dioxide and methane, which contribute to global
warming. A sanitary landfill is a site designed for the final disposal of waste in a safe and
environmentally sound manner. However, landfill sites represent a finite resource and are rapidly
diminishing.

An incinerator is a furnace for burning waste under controlled conditions. Incineration produces
acid gases, carbon dioxide and toxic chemicals that require treatment with air pollution control
equipment. Ashes resulting from incineration should be disposed of, either at a landfill or, if toxic,
at a hazardous waste facility.

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Emissions
Non-renewable and renewable energy
Emissions monitoring and control sources
Monitor and control the emissions during raw
material extraction and transport, the Non-renewable energy sources:
production process, and the distribution of Fossil fuels:
products. Emissions due to heavy traffic to and o Coal
from your factory as well as production-related o Oil and petroleum products
emissions will particularly attract wrath of the (including petrol, diesel,
local community. propane)
o Natural gas
Going local Nuclear fuels:
Sourcing from local suppliers will shorten the
transport distances, cutting your business’s Renewable energy sources:
carbon footprint. Employing local people will Biomass
cut commuting distances, again lowering your Water
business’s carbon emissions. Geothermal
Wind
Sustainable travel and green alternatives Solar
Turn to green alternatives to transport. For
example, replace business travel with
conference calls. Use green vehicles, which do
not solely rely on fossil-fuelled internal Use renewable energy efficiently,
combustion engines. For example, hybrid cars too, because renewable energy
and battery-powered vehicles use electric sources are part of ecosystems
motors, which are more efficient. Encourage
sustainable travel among employees by way of
various means such as cycle-to-work, cycle Resource use, waste production and emissions
storage facilities, and public transport ticket
subsidies. And create and maintain an efficient Energy/resource-efficient, environment-
distribution network. friendly equipment
Switch to low-carbon, clean technologies, such
Renewable energy as biomass energy and micro-combined heat
Fossil fuels are non-renewable resources. That and power. They use renewable materials and
is, it will take millions of years to form fossil energy sources – efficiently. When replacing
fuels again. The existing resources are running heating equipment, select low carbon
out fast. Moreover, fossil fuel production and alternatives, such as a biomass boiler or a
use pollutes the environment. Burning fossil ground source heat pump. Reduce the
fuels, for example, emit carbon dioxide, which consumption of natural resources (e.g. use a
contributes to global warming. high proportion of recycled materials).

Renewable energy sources, on the other hand, Customers on use and disposal of products
are not used up and energy generation from Consider the impact of product use and
renewable sources has far lower impact on the disposal, too. Ensure that your customers
environment. So sign up for energy generated know how to use the product efficiently and
from renewable sources. dispose of it in a safe and environment-friendly
manner.
However, use renewable energy efficiently, too,
because renewable energy sources are part of
ecosystems, so overexploitation will adversely Consider the impact of product use
affect the associated ecological services. and disposal, too.

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Environment Management System (EMS) Sustainable suppliers
An Environment Management System (EMS) Be vigilant about the sustainability
will provide you with a framework for performance of your suppliers, especially those
monitoring, improving and controlling the from developing countries with sustainability
environmental performance of your business. issues such as low wages, poor working
conditions, child labour and environmental
Environment Management System (EMS) irresponsibility.

What an EMS may include: Source from Fairtrade-certified suppliers so
Assessment of your business’s that you will ensure a fair deal to farmers,
activities, products, processes and workers and their communities in developing
services that might affect the countries. And try to work with your suppliers,
environment helping them improve their sustainability
Development of an environmental performance. If that fails, simply deal with
policy more sustainable suppliers.
An environmental improvement
programme Fairtrade
An awareness and training programme
Procedures for controlling activities of Committed to tackling poverty and injustice
significant environmental impact through trade, The Fairtrade Foundation
Periodic auditing of the system works with businesses, civil society
A formal review by senior management organisations and individuals to ensure a
better deal for the producers in developing
countries.
3.3 Minimise impacts on people and the
environment The FAIRTRADE mark on a UK product is a
guarantee that the product has been
Sustainable resources certified against internationally agreed
Use sustainable resources, which impact Fairtrade standards. Although the mark
minimally on people and the environment. indicates a better deal to the producers
Consider early stages of the supply chain. For involved, it is not an endorsement of an
example, irresponsible extraction methods in entire company’s business practices.
developing countries adversely affect the
wellbeing of local communities as well as the More from www.fairtrade.org.uk
local ecosystems.

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4 Harness sustainability opportunities
A sustainable business presents a multitude of market them. This is a real opportunity to
business opportunities. That’s why forward outperform competitors.
thinking businesses consider sustainability as a
bonus not a burden! Why not harness these Sales of sustainable products
opportunities while lowering your business’s
continue to grow, often selling at a
premium price.
Forward thinking businesses
consider sustainability as a bonus
Reputation opportunities
not a burden! Many people will like an environmentally
friendly and socially responsible business.
impact on people and the environment? Customers will be proud to patronise such a
company; employees, to be part of such a
4.1 Sustainable innovation company; suppliers, to do business with such a
company; and the local community, to
Sustainable innovation means exploiting consider such a company as a member of their
environmentally friendly and socially community. Altogether, such a company will
responsible business ideas to generate benefits gradually build a strong brand, ensuring
of three types. financial stability in the long run.

Adaptation opportunities In order to harness these opportunities,
Legislation increasingly encourages a integrate all your sustainability efforts under a
sustainable approach to business, so keep an CSR (Corporate Social Responsibility)
eye on environmental and social issues programme.
currently media spotlight. Proactive change
towards sustainability anticipating future
regulation gives your business more time to Harness these opportunities by
adapt, avoiding unnecessary costs of sudden integrating all your sustainability
adaptation. efforts under a CSR programme.

Legislation increasingly encourages a
sustainable approach to business. 4.2 Corporate Social Responsibility (CSR)
Proactive change towards
CSR, or Corporate Social Responsibility, is
sustainability anticipating future
understanding the impact of your business on
regulation gives your business more the wider world and then using it in a positive
time for adaptation. way by taking a responsible attitude. It is part
of a continuous process of building long-term
value, ultimately contributing to the business’s
Commercial opportunities bottom-line and long term performance.
Sales of sustainable products continue to grow,
often selling at a premium price. By way of CSR cuts across almost everything you do and
sustainable approaches to, for example, everyone you deal with. It mainly comprises
product design, production processes, four elements:
packaging, distribution, product use, create Workplace
products, services and systems that lower Local community
impact on people and the environment and Marketplace
Environment

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Workplace

Environment
CSR Local
community

Marketplace

Workplace Support charities chosen by employees, who
will be grateful to the business for supporting
Involve employees actively in your their cause – whether it is environmental
sustainability endeavour. conservation or equal opportunities for
education.
Appoint sustainability champions, who will
enlist more colleagues to the sustainable Strengthen your employees’ relationship with
business cause. Give employees the the local community. Give paid time off to
opportunity to present ideas to improve employees to work on community activities of
business sustainability, put good ideas into their choice. While improving the relations
practice and reward the innovators between employees (and therefore the
appropriately. Such active participation in business) and the local community, such
business improvement will increase their activities will develop their communication,
productivity and they will feel good by doing teamwork and problem solving skills. Such
something good (e.g. recycling or energy employees could be considered as the
saving). Sustainability Ambassadors of the business.

Local community
Employees’ active participation in
Develop close relations with the local
business improvement will increase
community and the local authority.
their productivity and they will feel
good by doing something good. Recruit from the local community and
purchase from local suppliers. Show the
human face of your business. For example, a
restaurant can organise a quarterly ‘free food

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day’ for the local homeless people. Or a builder
can offer free labour and materials to a local ‘Industrial symbiosis,’ or using the
community project. Such local community industrial by-products of a business
involvement generates positive media as a raw material for another
coverage.
business, is an effective way for
A healthy relationship with your local authority business-business collaboration in
makes it easier to do business. Some local sustainability.
authorities, for example, prefer to award
contracts to businesses with a local community in joint waste reduction initiatives (e.g.
involvement. recycling).

Considering the whole lifecycle from raw
Recruit from the local community
material sourcing to final product disposal,
and purchase from local suppliers. develop sustainable products. Some used
products can be remanufactured to a like-new
condition, restoring their value. This process
Marketplace cuts carbon emissions and the use of energy
and natural resources, creates markets for
Collaborate in sustainability initiatives and skilled employment and increases profit
develop sustainable products. margins.

Using the industrial by-products of a business Environment
as raw materials for another business,
‘Industrial symbiosis,’ is an effective way for Initiatives at the workplace, in the local
business-business collaboration in community and at the market place focuses on
sustainability. Moreover, involve your lowering the impact on the environment as
stakeholders, such as suppliers and customers, well as on people. Therefore, they contribute
to the environment dimension too.

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5 Communicate sustainability performance
To make the most out of your business’s 5.2 What to communicate?
sustainability efforts, communicate your
Communicate how you have embedded
sustainability principles in the heart of your
To make the most out of your business, what you intend to achieve and how
business’s sustainability efforts, you are planning to achieve them. Let others
communicate! know the key players behind the initiative,
such as sustainability champions, and
sustainability performance. encourage others to approach them with new
sustainability ideas.
5.1 Why communicate?
Once your sustainability drive is on for some
Communication is essential to keep the time, you can communicate the progress
stakeholders (especially employees) engaged achieved, the drawbacks, the lessons learnt
in your sustainability drive and to enlist new from them and the revised plan together with
members around the endeavour. It will also revised goals if relevant. Don’t forget to give
help you improve your sustainable business credit to whom it is due.
strategy and action plan.
5.3 How to communicate?
Moreover, public reporting will maximise the
benefits arising from the sustainable Communicate on a regular basis. Engage in
performance of your business. More two-way communication, especially with
customers will buy from you and investors and employees.
regulators will notice that your business has a
sound approach to reduce business risks.
Communicate on a regular basis.

Investors and regulators will notice
Ensure accuracy and credibility, and no ‘green-
that your business has a sound washing’, please! Messages should be clear
approach to reduce business risks. and coherent and the tone should be humble.

Select media, such as a PDF newsletter, a
webpage, a blog or a notice board, appropriate
for the target groups. An annual sustainability
review can review the progress annually.

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6 Support available for a sustainable business
Building a sustainable business is not as hard Will lower the use of natural resources or
as you think and you will not be alone. There’s energy or the generation of waste
plenty of support out there in terms of Includes energy efficient materials or
processes with early implementation
opportunities
There’s plenty of support out there
in terms of financial support as well The Carbon Trust (www.carbontrust.co.uk)
as advice. offers support in a number of ways, ranging
from carbon surveys to 0% business loans (up
financial support as well as advice. to £100,000!) to help organisations finance and
invest in energy saving projects.
Useful and comprehensive advice can be found
from two UK government websites: Moreover, you can benefit from the
www.businesslink.gov.uk government-sponsored Knowledge Transfer
www.envirowise.gov.uk Networks, which help businesses, universities
and government to work together to develop
You can apply for grants for financial support innovative sustainable solutions and new
from Sustainable Technology Fund if your technology.
innovation:

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7 Benefits of a sustainable b
business
A sustainable business will offer a variety of
benefits. A sustainable business can save on
environmental taxes, such as climate
change levy and landfill tax.

Cost savings
A sustainable business is more likely to r
retain
Employee performance the current employees, lowering unnecessary
recruitment costs.
Business opportunties
7.2 Employee performance

Reputation A sustainable business will attract competent
people.
A winning business
At such a business, all employees will be more
productive due to:
Better work environment
7.1 Cost savings Being active players in company’s
sustainability endeavour
A sustainable business will generate cost Being proud about their affiliation to a
savings, mainly in three ways: responsible company
Efficiency Being secure due to lower risk of the
Compliance business
Recruitment
7.3 Business opportunities
Efficient use of materials (e.g. raw materials
and water) and energy lowers the raw A sustainable business facilitates compliance
materials costs, the utility bills and the waste with current regulations and offers better
disposal costs, bringing immediate cash
mmediate adaptation to future changes in the regulatory
benefits. environment. So when the change actually
comes into force, the sustainable business has
more time for adaptation and can therefore
Efficient use of materials and comfortably stay ahead of the competitors.
energy brings immediate cash
benefits.
A sustainable business f
facilitates
compliance with current regulations
Compliance with regulations will avoid non- and offers better adaptation to
compliance penalties. Therefore, p
. proactive future changes in the regulatory
change towards sustainability anticipating
s environment.
future regulation will give you more time to
adapt, avoiding unnecessary costs of sudden
adaptation. Moreover, a sustainable business
. A strategic approach to sustainab
sustainability will offer
can save on environmental taxes, such as to businesses a host of opportunities for
climate change levy and landfill tax. developing sustainable products, which they
ing
can market before the others in order to
maintain a competitive edge.
ntain

Page 16 of 18


7.4 Reputation 7.5 A winning business

A sustainable business will enjoy reputation in A business powered by productive employees.
the eye of all stakeholders, gaining a multitude A business that does not waste money but
of benefits: instead innovatively exploits business
Employees: attracts the best in opportunities that sustainability offers. A
recruitment business that is seen as socially and
Local community: improves relations with environmentally responsible by all its
the local community, making doing stakeholders.
business easier and less risky; easier to
work with local authorities What else will that be, other than a WINNING
Customers: attracts and retains customers business?
Industry: earns respect in the industry as a
solid business
Financers and investors: attracts and What else will a sustainable business
retains investors due to lower, well- be, other than a WINNING
managed risk business?
Society in general: earns respect as a good
business

Page 17 of 18


8 How a sustainable business helps build a Sustainable London
Building a sustainable London requires London’s characteristics at a glance
countering the challenges that exist in socio-
economic and environmental domains. A Socio-economic characteristics
sustainable business can help London to face
these challenges successfully. London is one of the most diverse and culturally
rich cities in the world. At least 50 non-
indigenous communities with a population of
A sustainable business can help over 10,000 live in London and its inhabitants
London to face socio-economic and speak over 300 languages.
environmental challenges Since 1965 Greater London has been
successfully. administratively divided into 32 boroughs and
the City of London and each borough is further
divided into several districts. There are
8.1 Socio-economic contribution particular districts that associate with particular
ethnicities or cultures.
London is a financial centre driving the global
economy but it also harbours worst levels of Turning to economic characteristics, London is
poverty in the UK. one of the world’s leading centres for
international financial and business services. It
Businesses in London – sustainable or is the headquarter base for many global
otherwise – benefit from the city’s premier companies.
financial status. A sustainable business, by
Up to the 1970s London experienced an
contributing to the wellbeing of people in and extended period of decline due to the loss of its
outside London will pay back for this gain while manufacturing base and obsolescence of its
contributing to build a sustainable London. A docklands. However, then it was heavily
business that engages in projects that strive to associated with and implicated in the neo-
alleviate poverty in London is an example. liberal market reforms in the 1980s and 1990s,
Another is a business that source Fairtrade raising the city’s status to a ‘global player’ in the
products, which will guarantee a better deal international financial sector. It thus became a
for producers in the developing countries. key driver of regional (South East), national
(England and UK), European and global
economy.
8.2 Environmental contribution
These reforms are however largely responsible
London is facing several environmental for generating or worsening the disparities both
challenges. Like any other metropolis, London within and beyond London. For example, 26% of
suffers from the ‘urban heat island effect,’ London’s neighbourhoods rank within the top
which results in an air temperature higher than 20% of the most deprived neighbourhoods in
the surrounding rural regions. In summer this England and over 30% of its working age
will increase the energy consumption for population is unemployed.
cooling. Moreover, London produces a massive
amount of waste and much of it is buried in Environmental characteristics
landfills outside London. And London’s air
Punctuated with some rolling hills, London is
quality is also poor. located within the River Thames’ low-lying land
and much of it is floodplain. It thus dwells on
A sustainable business that lowers its energy fertile agricultural land but a built environment
consumption, emissions and waste production largely dominates its landscape. Still, it sports
will therefore help build a sustainable London. significant areas of open green spaces.

Its climate is temperate but the urban heat
island effect dominates in summer.

Page 18 of 18

Sustainable Business booklet of London RCE on ESD

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