Sustainable Business Guide

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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

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CONTENTS 1 A sustainable business: an introduction

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1.1 What is a business?

1.2 Profit vs. Sustainability 1.3 A profit-making sustainable business

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2 How to build a profit-making sustainable business

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3 Understand and minimise impacts

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

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4 Harness sustainability opportunities

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4.1 Sustainable innovation 4.2 Corporate Social Responsibility (CSR) Workplace Local community Marketplace Environment

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5 Communicate sustainability performance

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5.1 Why communicate?

5.2 What to communicate?

5.3 How to communicate?

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6 Support available for a sustainable business

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7 Benefits of a sustainable business

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7.1 Cost savings 7.2 Employee performance 7.3 Reputation 7.4 Business opportunities 7.5 A winning business

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8 How a sustainable business helps build a Sustainable London

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7.1 Socio-economic contribution 7.2 Environmental contribution

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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 to people who need or want them, i.e. its customers. A business has employees who work for it. It purchases resources (e.g. raw materials) and services (e.g. transport) from suppliers. It operates from a location, surrounded by a local community, within a set of boundaries imposed by regulators. For growth, it may need funds from financers and investors. Moreover, a business consumes natural resources (material and energy) and produces pollution and waste.

The question is: Can a sustainable business enjoy profits? Yes, it can!

So, in the process of making available products and services, a business impacts people and the environment.

1.2 Profit vs. Sustainability The fundamental aim of most businesses is to earn profit in return for the work done and the risk taken. The profit increases the wealth of its owners and contributes to the growth of the business itself. So profit and the impact on the wider human and natural world are integral parts of a business that are usually in conflict. In fact the negative image due to the impact of a business on the wider world is increasingly threatening the long term existence of the business itself – let alone its profitability.

Businesses are experiencing increasing pressure to become more sustainable, especially from three fronts: government and local authority, local community, and existing and potential customers.

Can a sustainable business enjoy profits? Yes, it can!

But how?

Firstly, understand the adverse impacts of your business on people and the environment.

Secondly, minimise these impacts and communicate your sustainability performance to gain the goodwill of the stakeholders and society, or the so-called ‘social licence to operate.’

In fact, by building sustainable businesses, forward thinking innovative businesspeople are fast converting this ‘unsustainability’ threat into an opportunity, not only strengthening the long term survival of their businesses but also increasing their profitability.

This booklet will reveal the secret of building a profit-making sustainable business. In the next three sections, it will describe: How to make a business sustainable and profit-making The support available for building a sustainable business The benefits a sustainable business will offer Finally, it will show how a profit-making sustainable business trading in London will 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 business indefinitely by minimising the impacts of the business on people and the environment while ensuring its financial stability.

Sustainability is not a cost. It is really about saving costs, improving the reputation, harnessing new business opportunities, and above all, building a winning business.

Sustainability is not a cost and is certainly much more than merely complying with the current environmental regulations. It is really about saving costs, improving the reputation, harnessing new business opportunities, and above all, building a winning business.

If you are genuinely interested in building a sustainable business, please remember this.

One-off projects have a limited impact on your business’ sustainability performance and image. What you need is an in-depth, strategic approach to sustainability (See BOX).

You can build a sustainable business by

One-off projects have a limited impact on your business’s sustainability performance and image. Take a strategic approach to sustainability.

understanding and then minimising the impact of your business on people and the environment. And you can build a profitmaking sustainable business by taking one more step forward by harnessing the threats to opportunities and then communicating your sustainability performance.

Therefore, building a profit-making sustainable business is a four-step ongoing process.

A strategic approach to sustainability Elements of a strategic approach to sustainability: Commitment of top management Understand the adverse impacts of the business on people and the environment and the importance of sustainability for long term viability of the business Talk with stakeholders, consider their viewpoints and involve them, especially employees and local community Embed sustainability principles into the way the business is run and developed Consider sustainability at all levels of decision-making Establish short term targets and longterm objectives, envisioning a sustainable business Develop an action plan to achieve them

Harness opportunities

Communicate performance

Minimise impacts Understand impacts Page 4 of 18

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3 Understand and minimise impacts To build a sustainable business, firstly understand the full adverse impact of your business on people and the environment, embracing the entire lifecycle of your products across the supply chain (i.e. from the extraction of raw materials through to the delivery to the end customer and then to the disposal of the product after use).

Understand the full adverse impact of your business on people and the environment and minimise them.

Understand the impact on people: employees, local community, customers, suppliers’ stakeholders (especially suppliers’ employees and local community) and finally society in general.

Understand the impact on the environment, too, namely depletion of natural resources, disturbances to ecological services due to pollution, and piling up of waste.

Secondly, minimise these impacts on people and the environment as much as possible.

Local community Be a good neighbour. Respect the local community’s right to a quality life. Heavy traffic to and from your business or emissions from your factory may make them worry, quite rightly.

Be an active partner to your local community.

Employ local people. Purchase from local suppliers, helping their businesses. Support local activities and organisations. Fund a local community programme, support a local charity, or allow free use of equipment for community programmes. Give paid time off to employees to work on community initiatives.

This way, the community around your business will acknowledge you as a good neighbour – one of them. This brings benefits, especially lowered risk to your business.

Suppliers Deal with suppliers responsibly. Treat them fairly, especially the small scale suppliers. Then they will be loyal to your business.

Customers

3.1 Minimise impacts on people Make sure that your business does not adversely affect the wellbeing – physical and mental – of your employees, local community and customers, the stakeholders of your suppliers (especially their employees and local communities), and the society in general.

Offer real value for money. Listen to them because they can offer ideas on how to improve your products and services as well as the business itself. Deal with your customers responsibly. In brochures tell the truth; don’t hide anything in ‘small print’. If something goes wrong, acknowledge the problem and deal with it.

Employees Be a good employer. Treat your employees fairly, offer them opportunities for development and help them achieve a worklife balance. Then, they will be happy, loyal and more productive.

Such an approach will build a community of loyal customers.

3.2 Minimise impacts on the environment Minimise your business’s environmental impact, focusing mainly on two fronts: Resource use and waste production Emissions

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Resource use and waste production Efficient use of materials and energy The amount of natural resources (material and 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 as well as we can use them for a long time, allowing time for nature to recycle our waste back into useful natural resources.

Water is a material that you pay for twice – to receive clean water and then to take away the waste. use reduction. And water use has other hidden costs, such as water treatment, pumping, maintenance, effluent treatment and discharge.

Top water saving tips

Waste is material of relatively low value.

Efficient use of raw materials and other materials (e.g. water, paper) reduces the amount of waste. This way, you will lower the consumption of materials, conserving the natural resources for future generations.

Resource efficiency is not just an environmental initiative but an important business process that saves money.

Waste costs money, and according to www.envirowise.gov.uk, up to 4% of business turnover. So resource efficiency is not just an environmental initiative but an important business process that saves money. It cuts waste handling and disposal costs as well as the impact on the environment due to waste handling and disposal.

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 can cut your business’s water use by up to 30% by adopting a systematic approach to water

Water bills are a good place to start, but measure and monitor the amount of water used. Then you can identify any unusual change in water use (e.g. due to a leak) before the next bill and put it right without delay.

Appoint a water monitor to take periodic site-walks for water use minimisation ideas.

Ensure pipes are well insulated to protect against frost damage.

Replace conventional taps with spray taps (reduces water use by 60 to 70%, says www.envirowise.gov.uk) Use alternative water sources, such as rainwater harvesting and grey-water reuse Consider water efficiency when purchasing new equipment.

Watch out for dripping taps. According to www.envirowise.gov.uk, a 5mm drip from a tap can cost over £900 a year in water and grey-water treatment costs.

Energy generation, especially from nonrenewable fossil fuels, has an adverse impact 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 Don’t disturb ecological services (e.g. by harmful emissions or overexploitation of natural resources) Don’t overwhelm nature’s waste absorption capacity (e.g. by producing excessive waste or waste that cannot be recycled, for example)

Install energy efficient equipment Switch off lights and equipment not in use Design improvements (windows close firmly, plumbing not leaking) Practical improvements (in hot weather, use blinds not air conditioning) Page 6 of 18

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Efficient energy use will lower the demand for energy and also the need for energy generation, ation, lowering the impact on the environment due to generation and use of, especially, fossil fuels.

All energy sources,, renewable as well as nonnon renewable, have an effect on the environment, so clean technologies are not an excuse excus to overlook energy efficiency.

Clean technologies are not an excuse to overlook energy efficiency.

Sustainable able waste management hierarchy For sustainable waste management, first you need to measure the waste your business produces, in terms of quantity and cost. Useful information sources include utility bills for water, electricity and gas consumption onsumption and subcontractors for effluent treatment, skips and landfill. Then only will you be able to benchmark and monitor improvements.

Reduce (most preferred) Reuse

Recycle

Recover Disposal (least preferred)

Then, rank the waste management options in order of preference, considering the environmental impact: Reduce, or if possible, avoid waste generation (e.g. use a mug instead of disposable cups) Reuse waste for some other purpose (e.g. use jars as pen holders)

Recycle waste into the same type or different type of material (e.g. recycle waste paper into more ore paper or packing material) Recover from waste the energy and minerals embedded in it (e.g. recover the energy embedded in waste plastics to fuel cement kilns) Disposal of waste in sanitary landfills

Look at the business site as a whole and identify areas eas where the business produces most waste and prioritise them first. Put the sustainable waste management hierarchy into action.

Look at the business site as a whole and identify areas where the business produces most waste and prioritise them first.

Sustainable waste management hierarchy Reduce: Reduce waste at the source itself. Design, purchase, manufacture or use of products produ and materials that reduce the amount of waste generated. This will reduce the amount of raw materials used as well as the amount of resources discarded as waste.

Reduce the amount of packaging and purchase material in bulk. Reduce off-cuts off and rejects. Send and store information electronically and think twice before printing. And use both sides of paper for printing and writing.

Reuse: Instead of throwing it away as waste, reuse a product for the same purpose or some other purpose. Reuse containers, drums dr and packaging boxes for other purposes, such as bins. Reuse paper from misprints as scrap paper. Donate reusable books, furniture, textiles and electrical equipment to charities or waste exchange groups. For printer cartridges, choose a supplier with a returns policy so that cartridges can be 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 Emissions monitoring and control Monitor and control the emissions during raw material extraction and transport, the production process, and the distribution of products. Emissions due to heavy traffic to and from your factory as well as production-related emissions will particularly attract wrath of the local community.

Going local Sourcing from local suppliers will shorten the transport distances, cutting your business’s carbon footprint. Employing local people will cut commuting distances, again lowering your business’s carbon emissions.

Sustainable travel and green alternatives 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 combustion engines. For example, hybrid cars and battery-powered vehicles use electric motors, which are more efficient. Encourage sustainable travel among employees by way of various means such as cycle-to-work, cycle storage facilities, and public transport ticket subsidies. And create and maintain an efficient distribution network.

Renewable energy Fossil fuels are non-renewable resources. That is, it will take millions of years to form fossil fuels again. The existing resources are running out fast. Moreover, fossil fuel production and use pollutes the environment. Burning fossil fuels, for example, emit carbon dioxide, which contributes to global warming.

Renewable energy sources, on the other hand, are not used up and energy generation from renewable sources has far lower impact on the environment. So sign up for energy generated from renewable sources.

However, use renewable energy efficiently, too, because renewable energy sources are part of ecosystems, so overexploitation will adversely affect the associated ecological services.

Non-renewable and renewable energy sources Non-renewable energy sources: Fossil fuels: o Coal o Oil and petroleum products (including petrol, diesel, propane) o Natural gas Nuclear fuels: Renewable energy sources: Biomass Water Geothermal Wind Solar

Use renewable energy efficiently, too, because renewable energy sources are part of ecosystems

Resource use, waste production and emissions Energy/resource-efficient, environmentfriendly equipment Switch to low-carbon, clean technologies, such as biomass energy and micro-combined heat and power. They use renewable materials and energy sources – efficiently. When replacing heating equipment, select low carbon alternatives, such as a biomass boiler or a ground source heat pump. Reduce the consumption of natural resources (e.g. use a high proportion of recycled materials).

Customers on use and disposal of products Consider the impact of product use and disposal, too. Ensure that your customers know how to use the product efficiently and dispose of it in a safe and environment-friendly manner.

Consider the impact of product use and disposal, too.

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Environment Management System (EMS) An Environment Management System (EMS) will provide you with a framework for monitoring, improving and controlling the environmental performance of your business.

Environment Management System (EMS) What an EMS may include: Assessment of your business’s activities, products, processes and services that might affect the environment Development of an environmental policy An environmental improvement programme An awareness and training programme Procedures for controlling activities of significant environmental impact Periodic auditing of the system A formal review by senior management 3.3 Minimise impacts on people and the environment Sustainable resources Use sustainable resources, which impact minimally on people and the environment.

Consider early stages of the supply chain. For example, irresponsible extraction methods in developing countries adversely affect the wellbeing of local communities as well as the local ecosystems.

Sustainable suppliers Be vigilant about the sustainability performance of your suppliers, especially those from developing countries with sustainability issues such as low wages, poor working conditions, child labour and environmental irresponsibility.

Source from Fairtrade-certified suppliers so that you will ensure a fair deal to farmers, workers and their communities in developing countries. And try to work with your suppliers, helping them improve their sustainability performance. If that fails, simply deal with more sustainable suppliers.

Fairtrade Committed to tackling poverty and injustice through trade, The Fairtrade Foundation works with businesses, civil society organisations and individuals to ensure a better deal for the producers in developing countries.

The FAIRTRADE mark on a UK product is a guarantee that the product has been certified against internationally agreed Fairtrade standards. Although the mark indicates a better deal to the producers involved, it is not an endorsement of an entire company’s business practices.

More from www.fairtrade.org.uk

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4 Harness sustainability opportunities A sustainable business presents a multitude of business opportunities. That’s why forward thinking businesses consider sustainability as a bonus not a burden! Why not harness these opportunities while lowering your business’s

Forward thinking businesses consider sustainability as a bonus not a burden! impact on people and the environment?

4.1 Sustainable innovation Sustainable innovation means exploiting environmentally friendly and socially responsible business ideas to generate benefits of three types.

Adaptation opportunities Legislation increasingly encourages a sustainable approach to business, so keep an eye on environmental and social issues currently media spotlight. Proactive change towards sustainability anticipating future regulation gives your business more time to adapt, avoiding unnecessary costs of sudden adaptation.

Legislation increasingly encourages a sustainable approach to business.

Proactive change towards sustainability anticipating future regulation gives your business more time for adaptation.

Commercial opportunities Sales of sustainable products continue to grow, often selling at a premium price. By way of sustainable approaches to, for example, product design, production processes, packaging, distribution, product use, create products, services and systems that lower impact on people and the environment and

market them. This is a real opportunity to outperform competitors.

Sales of sustainable products continue to grow, often selling at a premium price.

Reputation opportunities Many people will like an environmentally friendly and socially responsible business.

Customers will be proud to patronise such a company; employees, to be part of such a company; suppliers, to do business with such a company; and the local community, to consider such a company as a member of their community. Altogether, such a company will gradually build a strong brand, ensuring financial stability in the long run.

In order to harness these opportunities, integrate all your sustainability efforts under a CSR (Corporate Social Responsibility) programme.

Harness these opportunities by integrating all your sustainability efforts under a CSR programme.

4.2 Corporate Social Responsibility (CSR) CSR, or Corporate Social Responsibility, is understanding the impact of your business on the wider world and then using it in a positive way by taking a responsible attitude. It is part of a continuous process of building long-term value, ultimately contributing to the business’s bottom-line and long term performance.

CSR cuts across almost everything you do and everyone you deal with. It mainly comprises four elements: Workplace Local community Marketplace Environment Page 11 of 18

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Workplace

Environment

CSR

Local community

Marketplace

Workplace Involve employees actively in your sustainability endeavour.

Appoint sustainability champions, who will enlist more colleagues to the sustainable business cause. Give employees the opportunity to present ideas to improve business sustainability, put good ideas into practice and reward the innovators appropriately. Such active participation in business improvement will increase their productivity and they will feel good by doing something good (e.g. recycling or energy saving).

Support charities chosen by employees, who will be grateful to the business for supporting their cause – whether it is environmental conservation or equal opportunities for education.

Strengthen your employees’ relationship with the local community. Give paid time off to employees to work on community activities of their choice. While improving the relations between employees (and therefore the business) and the local community, such activities will develop their communication, teamwork and problem solving skills. Such employees could be considered as the Sustainability Ambassadors of the business.

Local community

Employees’ active participation in business improvement will increase their productivity and they will feel good by doing something good.

Develop close relations with the local community and the local authority.

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 community project. Such local community involvement generates positive media coverage.

A healthy relationship with your local authority makes it easier to do business. Some local authorities, for example, prefer to award contracts to businesses with a local community involvement.

Recruit from the local community and purchase from local suppliers.

Marketplace Collaborate in sustainability initiatives and develop sustainable products.

Using the industrial by-products of a business as raw materials for another business, ‘Industrial symbiosis,’ is an effective way for business-business collaboration in sustainability. Moreover, involve your stakeholders, such as suppliers and customers,

‘Industrial symbiosis,’ or using the industrial by-products of a business as a raw material for another business, is an effective way for business-business collaboration in sustainability. in joint waste reduction initiatives (e.g. recycling).

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

Environment Initiatives at the workplace, in the local community and at the market place focuses on lowering the impact on the environment as 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 sustainability efforts, communicate your

To make the most out of your business’s sustainability efforts, communicate! sustainability performance.

5.1 Why communicate?

Communication is essential to keep the stakeholders (especially employees) engaged in your sustainability drive and to enlist new members around the endeavour. It will also help you improve your sustainable business strategy and action plan.

Moreover, public reporting will maximise the benefits arising from the sustainable performance of your business. More customers will buy from you and investors and regulators will notice that your business has a sound approach to reduce business risks.

Investors and regulators will notice that your business has a sound approach to reduce business risks.

5.2 What to communicate?

Communicate how you have embedded sustainability principles in the heart of your business, what you intend to achieve and how you are planning to achieve them. Let others know the key players behind the initiative, such as sustainability champions, and encourage others to approach them with new sustainability ideas.

Once your sustainability drive is on for some time, you can communicate the progress achieved, the drawbacks, the lessons learnt from them and the revised plan together with revised goals if relevant. Don’t forget to give credit to whom it is due.

5.3 How to communicate?

Communicate on a regular basis. Engage in two-way communication, especially with employees.

Communicate on a regular basis.

Ensure accuracy and credibility, and no ‘greenwashing’, please! Messages should be clear 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 as you think and you will not be alone. There’s plenty of support out there in terms of

There’s plenty of support out there in terms of financial support as well as advice. financial support as well as advice.

Useful and comprehensive advice can be found from two UK government websites: www.businesslink.gov.uk www.envirowise.gov.uk You can apply for grants for financial support from Sustainable Technology Fund if your innovation:

Will lower the use of natural resources or energy or the generation of waste Includes energy efficient materials or processes with early implementation opportunities

The Carbon Trust (www.carbontrust.co.uk) offers support in a number of ways, ranging from carbon surveys to 0% business loans (up to ÂŁ100,000!) to help organisations finance and invest in energy saving projects.

Moreover, you can benefit from the government-sponsored Knowledge Transfer Networks, which help businesses, universities and government to work together to develop innovative sustainable solutions and new technology.

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7 Benefits of a sustainable business b 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 Employee performance Business opportunties Reputation

A sustainable business is more likely to retain r the current employees, lowering unnecessary recruitment costs.

7.2 Employee performance A sustainable business will attract competent people.

A winning business

7.1 Cost savings A sustainable business will generate cost savings, mainly in three ways: Efficiency Compliance Recruitment Efficient use of materials (e.g. raw materials and water) and energy lowers the raw materials costs, the utility bills and the waste disposal costs, bringing immediate mmediate cash benefits.

Efficient use of materials and energy brings immediate cash benefits.

Compliance with regulations will avoid noncompliance penalties.. Therefore, proactive p change towardss sustainability anticipating future regulation will give you more time to adapt, avoiding unnecessary costs of sudden adaptation.. Moreover, a sustainable business can save on environmental taxes, such as climate change levy and landfill tax.

At such a business, all employees will be more productive due to: Better work environment Being active players in company’s sustainability endeavour Being proud about their affiliation to a responsible company Being secure due to lower risk of the business 7.3 Business opportunities A sustainable business facilitates compliance with current regulations and offers better adaptation to future changes in the regulatory environment. So when the change actually comes into force, the sustainable business has more time for adaptation and can therefore comfortably stay ahead of the competitors.

A sustainable business facilitates f compliance with current regulations and offers better adaptation to future changes in the regulatory environment.

A strategic approach to sustainability sustainab will offer to businesses a host of opportunities for developing ing sustainable products, which they can market before the others in order to maintain ntain a competitive edge.

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7.4 Reputation

7.5 A winning business

A sustainable business will enjoy reputation in the eye of all stakeholders, gaining a multitude of benefits: Employees: attracts the best in recruitment Local community: improves relations with the local community, making doing business easier and less risky; easier to work with local authorities Customers: attracts and retains customers Industry: earns respect in the industry as a solid business Financers and investors: attracts and retains investors due to lower, wellmanaged risk Society in general: earns respect as a good business

A business powered by productive employees.

A business that does not waste money but instead innovatively exploits business opportunities that sustainability offers. A business that is seen as socially and environmentally responsible by all its stakeholders.

What else will that be, other than a WINNING business?

What else will a sustainable business be, other than a WINNING business?

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8 How a sustainable business helps build a Sustainable London Building a sustainable London requires countering the challenges that exist in socioeconomic and environmental domains. A sustainable business can help London to face these challenges successfully.

A sustainable business can help London to face socio-economic and environmental challenges successfully.

8.1 Socio-economic contribution London is a financial centre driving the global economy but it also harbours worst levels of poverty in the UK. Businesses in London – sustainable or otherwise – benefit from the city’s premier financial status. A sustainable business, by contributing to the wellbeing of people in and outside London will pay back for this gain while contributing to build a sustainable London. A business that engages in projects that strive to alleviate poverty in London is an example.

Another is a business that source Fairtrade products, which will guarantee a better deal for producers in the developing countries.

8.2 Environmental contribution London is facing several environmental challenges. Like any other metropolis, London suffers from the ‘urban heat island effect,’ which results in an air temperature higher than the surrounding rural regions. In summer this will increase the energy consumption for cooling. Moreover, London produces a massive amount of waste and much of it is buried in landfills outside London. And London’s air quality is also poor.

A sustainable business that lowers its energy consumption, emissions and waste production will therefore help build a sustainable London.

London’s characteristics at a glance Socio-economic characteristics London is one of the most diverse and culturally rich cities in the world. At least 50 nonindigenous communities with a population of over 10,000 live in London and its inhabitants speak over 300 languages.

Since 1965 Greater London has been administratively divided into 32 boroughs and the City of London and each borough is further divided into several districts. There are particular districts that associate with particular ethnicities or cultures.

Turning to economic characteristics, London is one of the world’s leading centres for international financial and business services. It is the headquarter base for many global companies.

Up to the 1970s London experienced an extended period of decline due to the loss of its manufacturing base and obsolescence of its docklands. However, then it was heavily associated with and implicated in the neoliberal market reforms in the 1980s and 1990s, raising the city’s status to a ‘global player’ in the international financial sector. It thus became a key driver of regional (South East), national (England and UK), European and global economy.

These reforms are however largely responsible for generating or worsening the disparities both within and beyond London. For example, 26% of London’s neighbourhoods rank within the top 20% of the most deprived neighbourhoods in England and over 30% of its working age population is unemployed.

Environmental characteristics Punctuated with some rolling hills, London is located within the River Thames’ low-lying land and much of it is floodplain. It thus dwells on fertile agricultural land but a built environment largely dominates its landscape. Still, it sports significant areas of open green spaces.

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

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