Concern for the environment, and in particular the consequences of climate change, has become mainstream. New research from Ipsos MORI shows that the public believes companies need to put the environment at the top of their agenda over the next few years, significantly ahead of "caring for employees". Conserving energy ranks third on the public's list. Unprompted, respondents ranked global warming as the most serious threat to the world, well above terrorism.
Clearly, those organisations that were hoping to sidestep the issue, or at least hide behind a compliance approach, are going to have to think again. The public's awareness of environmental concerns will grow further-fuelled, predicts MORI, by government campaigns, greater focus in the National Curriculum, graded congestion charges and even a programme of "door-stepping" visits by local councils and NGOs.
We will soon be at the point where a company's environmental credentials are a key recruitment and retention tool and a competitive differentiator in consumers' eyes. Every business will have to clean up its act to stay successful, not just the traditional polluters such as oil companies and power generators.
In July, environment secretary David Miliband set supermarkets tough new targets for reducing carbon emissions. He also asked them to increase their supply of locally produced seasonal food, and to provide better guidance on the "greenness" of their products. While some might have developed new premium ranges-"Tesco Greenest" or "Sainsbury's Feel the Greenest"-the National Consumer Council recently warned against creating "a niche market for dedicated green shoppers".
The "food miles" debate is interesting. Retailers argue that demand from shoppers for year-round supply led them to source strawberries from New Zealand and blueberries from Chile. To me strawberries tasted far better 30 years ago when we ate them every day for one month of the year. Most consumers, now they've got used to it, might be reluctant to relinquish continuous access to all manner of exotic foods. But it will be no hardship, surely, to give up the polish on the English apples Tesco reputedly flies backwards and forwards to South Africa to obtain.
Retailers are ideally placed to build and satisfy consumer desire for greener food. But legislation, combined with expected new taxes on such items as aviation fuel and inbound container movements, will put wings under their heels.
Modern organisations set great store by their sophisticated global supply chains, where products are sourced from low-cost manufacturing environments. But while the cost of making things has never been so low, the cost of moving them could become prohibitive, forcing a return to more local manufacturing.
Enlightened companies are treating environmental legislation as an opportunity to review operations. For many, necessity is proving the mother of invention.
Next year, for example, the "producer responsibility" aspects of the Waste Electrical and Electronic Equipment (WEEE) Directive will bite in Britain, requiring producers of new equipment to pay for the treatment and recycling of used products. Companies such as Hewlett-Packard are ahead of the game. By better managing the return of printer cartridges and reducing waste by configuring standard products for local needs at regional centres, HP has reduced manufacturing costs and created a slicker and more responsive supply chain.
Being seen to be green will in the short term earn businesses brownie points. Supermarkets, currently jockeying for environmental position, know this well. But in the longer term organisations might find that scrutinising their operations through a green lens makes them more efficient, productive and sustainable.
Contrary to popular corporate belief, there is growing evidence that environmental performance does not compromise economic performance. Indeed, it can actually enhance it. Companies worried about the cost of greening their operations should perhaps be worrying about the cost of not doing so instead.
Jane Simms is the former editor of Financial Director and Marketing Business.
