Environment Law Bulletin - Institute of Environmental Management ...

SECTION 12MiscellaneousUnited KingdomCSR“CSR is becoming a mainstream consideration, withthe market rewarding responsible behaviour, and thecompanies that measure and manage their environmentalimpacts often make substantial savings ontheir operating costs.”The Secretary of State for the Environment,Margaret Becket, has delivered a key notespeech strongly supporting Corporate SocialResponsibility (CSR). In the speech, she saidthat issues such as the efficient use ofresources should be taken seriously by businesssome of which have for some timerecognised the links between sustainabledevelopment and success. She went on tostate that CSR is becoming a mainstreamconsideration, with the market rewardingresponsible behaviour, and the companiesthat measure and manage their environmentalimpacts often make substantialsavings on their operating costs. It also reassuresshareholders that companies aremanaging their risks and identifying businessopportunities and customers are reassured bythe fact that the products and servicesprovided are not causing environmentaldamage. Such policies are also likely to motivateemployees. In the speech she alsoidentified the boundaries to CSR, i.e. wherethe market does not reward companies thatcomply with voluntary standards, andsuggested that fiscal measures introduced bythe Government will continue to move theseboundaries in favour of sustainable development.Such measures, including the climatechange levy and landfill tax, have alreadybeen implemented. The disclosure of environmentinformation was also addressed in thespeech. Examples cited included the PensionsAct, which requires occupational pensionfunds to disclose the extent to which ethicalenvironmental and social considerations aretaken into account in investment decisions,and proposals to include environmental,social and community issues in the annualreports of major companies in the CompanyLaw Review. However there was no indicationof mandating environmental reportingfor all companies.(DEFRA, February 2003)Business in the Community (BITC) an independentcharity consisting of 700 membercompanies with the aim of improving thepositive impact of business on society, haspublished a benchmark CSR index. Theindex was based on an overall scoreachieved for strategy, integration andmanagement practice on community, environment,market place and work place, andperformance in seven impact areas, whichinclude three social and four environment.The new index incorporates the previousannual index of corporate environmentalengagement published by BITC. It covers122 companies, 53 of which are in theFTSE100 and places the companies into oneof five quintiles.(BITC, March 2003)Air transportA report entitled ‘Aviation and theEnvironment – Using EconomicInstruments’, has been published by theDepartment for Transport as the basis fordiscussion with stakeholders. It follows theannouncement in the 2002 Pre-BudgetReport that the Government would beEnvironment Law BulletinApril 200340