The European Union supports a list of preferences for waste management with the most preferable option being waste reduction, followed by reuse, recycling, energy recovery and finally disposal. Recycling of waste materials is now well established for certain materials including paper, glass and metal, with recycling facilities being developed for other materials including electrical and electronic goods, and vehicles.
There is a rapidly developing trend, particularly in Europe, to establish statutory mechanisms requiring product manufacturers to recover and reuse ("take-back") their products when they become waste. This is also known as "producer responsibility". The Packaging and Packaging Waste Directive (94/62/EC) establishes responsibility for those involved with the production, use and sale of packaging to take-back a defined percentage of the packaging produced/handled. A draft European Union Directive has been issued which will place requirements on manufacturers of waste electrical and electronic equipment (WEEE) to make provisions for accepting return of WEEE products. In addition, a Directive requiring vehicle manufacturers to recover end-of-life vehicles is currently being drafted by the European Union.
Although the European Union is driving these developments, in a global marketplace they are likely to emerge as statutory requirements elsewhere.
How does this impact financial sector organisations?
1. Financial sector organisations are consumers, in particular of paper, cleaning products and inks. Taking environmental criteria into account in product selection and, where possible, purchasing eco-labelled and recycled products can significantly reduce one of the major direct environmental impacts of the sector. Such practice also demonstrates adherence to best practice and commitment to corporate environmental stewardship through recognising that, by managing product selection, an organisation can positively influence global environmental issues.
2. As consumers, financial sector organisations also produce significant quantities of waste, for which they are liable. Efforts should focus on good waste and resource management, concentrating on reducing the volume produced, and encouraging reuse or recycling where practicable. Organisations should make arrangements with manufacturers/suppliers and/or participate in schemes to enable product take-back where possible. Good resource and waste management practices can result in considerable financial savings.
3. Financial sector organisations should be aware of the major impact that producer responsibility legislation, and associated costs of compliance, may have on their customers. Regulations such as those concerning packaging are being adapted to apply to smaller sized companies, which may not be aware of either the legislative requirements on them or how they should respond. Financial sector organisations can play a very positive role in communicating these environmental developments to clients, particularly SMEs, and positively encouraging adoption of environmental best practice e.g. through business policies that take into account the environmental commitment and performance of the SMEs.
General Environmental Information
Global directory of environmental technology – contact details for Ministries, NGOs and Environmental experts worldwide
Gateway to environmental information, across the EU and country specific
Environmental legislation and policy development Access to legal texts
Non-profit, non-partisan, world federation of national associations for environmental management and sustainable development. INEM aims to help companies improve their environmental and economic performance. The site provides best practice, case studies, indicators and benchmarks, and environmental management tools Raises profile of the environment industry in UK and abroad. Encourages UK firms to invest overseas
Information source for central government, environmental policy and strategy in the UK
Environmental news, information, research results, pollution inventory, guidance for business and industry
Source of environmental data, legislation and guidance UN interaction with business partners
UNEP site with much environmental information Information on global resources
Green Pages
European Environment Agency
European Commission
European Environmental law homepage International Network for Environmental Management
UK Department of Trade and Industry Joint Environmental Markets Unit UK Department of Environment, Transport and the Regions UK Environment Agency
US Environmental Protection Agency UN Global Compact
United Nations Environment Programme World Resources Institute
http://eco-web.com/ www.eea.eu.int/ http://europa.eu.int/ www.asser.nl/EEL/index4.htm www.inem.org/ www.dti.gov.uk/jemu www.detr.gov.uk www.environment-agency.gov.uk www.epa.gov www.un.org/partners/business/globco mp.htm www.unep.org www.wri.org
Subject
Organisation
Web Address
Comments
Climate Change Energy efficiency
Environmental assessment of buildings
Energy efficiency information and products
ETSU is part of AEA Technology Environment which provides objective support and solutions to governments, agencies and industry, helping to meet environmental challenges
Description and background on the Institute
Emissions trading information
Publication on "Green Officiency: running a cost-effective, environmentally aware office"
Free advice for UK businesses
Free advice for UK businesses
Environmental Reporting:
Guidelines for Company Reporting on Greenhouse Gas Emissions Description of the Convention and background
Building Research Establishment (UK) BREEAM – Environmental Assessment Method
CADDET ETSU
Regional Institute of Environmental Technology – Asia
The Earth Council
UK Government Best Practice Programme Helpline
UK Government Best Practice Programme
Energy Efficiency
UK Government Best Practice Programme
Environmental Technology UK Department of Environment, Transport & Regions
United Nations Framework Convention on Climate Change www.bre.co.uk http://www.bre.co.uk/sustainable/ser vice1.html www.caddet-ee.org/ www.etsu.com www.riet.org/eis/eis.htm www.ecouncil.ac.cr.rio/focus/report.e nglish/Unctad.htm 0800 585794 www.energy-efficiency.co.uk www.etbpp.gov.uk www.detr.gov.uk/environment/envrp/ gas/index.htm www.unfccc.de/index.html
APPENDIX 2: Further information sources on the Internet
Environmental labelling and waste take back
Global environmental damage
Sustainable development and eco-efficiency
Source of detailed US information on climate change
"Indicating Right: Environmental Performance Indicators for the Waste Management Sector" – Covers issues of developing indicators for climate change, water use, energy use, transport Waste Minimisation Best Practice Guidelines for Office Based Services
Presentation on WEEE takeback
Publication on "Green Officiency: running a cost-effective, environmentally aware office"
Certified timber production Ozone depleting chemicals
Global index of companies rated according to their perceived sustainability
Certified timber production
Projects and publications which promote sustainable development A service of the Sustainable Development Communications Network This Internet tool allows users to navigate easily between websites that deal with the principles, policies, and best practices for sustainable development.
US Environmental Protection Agency
Green Alliance
UK Department of the Environment, Transport & Regions
UK Department of Trade and Industry (DTI) – WEEE
UK Government Best Practice
Programmes: Environmental Technology Forest Stewardship Council (FSC) United Nations Environment Programme Dow Jones Sustainability Index
Forest Stewardship Council (FSC) Green Alliance
Sustainability Web Ring
www.epa.gov/oppeoee1/globalwarmin g/sitemap.html www.green-alliance.org www.detr.gov.uk/environment/wastest rategy/index.htm – www.smtuk.demon.co.uk/weee/ www.etbpp.gov.uk Helpline 0800 585794 www.fsc-uk.demon.co.uk www.unep.org/ozone/ www.sustainability-index.com www.fsc-uk.demon.co.uk www.green-alliance.org http://sdgateway.net/webring/defaul t.htm
APPENDIX 2: Further information sources on the Internet
Environmental legislation and other standards
Making a Corporate Commitment Government Campaign to encourage resource efficiency and environmental performance on issues of national and international concern
UK sustainable development strategy and sustainable development indicators
UNEP Environment Legal Instruments and Initiatives Forum for initiatives on sustainable development
Green offices case study
Forum for strategic dialogue between business and government on environment and sustainable development issues. Mobilises the business community to demonstrate good environmental practice Standards for environmental auditing and reporting
Energy efficiency
Energy efficiency information and products Environmental legislation and policy
Eco-Management and Audit Scheme Council Regulation and other information
Gateway to environmental information, across the EU and country specific
Waste minimisation guidelines UK Department of the Environment,
Transport & Regions – MACC
UK Department of the Environment, Transport & Regions – SD
United Nations Environment Programme World Business Council for Sustainable Development
World Resource Institute
Advisory Committee on Business and the Environment
British Standards Institute
Building Research Establishment (UK) CADDET
European Commission
European Environment Agency
www.macc2.org.uk www.detr.gov.uk/environment/sustain able/index.htm www.unep.org/SEC/ www.wbscd.ch/aboutus.htm#top www.wri.org/wri/office/material.htm www.environment.detr.gov.uk/acbe/in dex.htm www.bsi.org.uk www.bre.co.uk www.caddet-ee.org/ http://europa.eu.int/comm/environm ent/emas www.eea.eu.int
APPENDIX 2: Further information sources on the Internet
Environmental auditing, management systems and reporting guidelines and standards
Publish Sustainability Reporting Guidelines (March 1999 draft) ISO 14001 series on environmental management
UNEP Environment Legal Instruments
White Papers and policy on integrated transport
Department of Trade and Industry, for copies of the Company Law consultation paper
Statement and signatory list for financial services environmental initiative
Guidance for business and industry on environment
Publications and guidance on environmental and energy reporting
Standards for environmental auditing and reporting
Publications and information including performance measurement and benchmarking. Published the Fourth Index of Corporate Engagement (1999-00) which compares the extent to which companies are engaged in environmental management and how companies assess and manage environmental performance in key areas
Provides CONTOUR, an environment, health and safety benchmarking tool, which can be used to establish what best practice is and enables organisations to measure themselves against it
Global Reporting Initiative
International Standards Organization United Nations Environment Programme UK Department of the Environment, Transport & Regions
UK Department of Trade and Industry
United Nations Environment Programme Financial Institutions Initiative UK Environment Agency
Association of Chartered Certified Accountants
British Standards Institute Business in the Environment
Confederation of British Industry
www.globalreporting.org www.iso.ch www.unep.org/SEC/ www.detr.gov.uk/itwp/index.htm www.dti.gov.uk/cld/review.htm www.unep.ch/etu/finserv/fin_home.h tm www.environment-agency.gov.uk www.acca.org.uk www.bsi.org.uk www.business-in-environment.org.uk www.cbi.org.uk
APPENDIX 2: Further information sources on the Internet
Eco-Management and Audit Scheme Council Regulation and other information
Discussion Paper "Towards a Generally Accepted Framework for Environmental Reporting" January 1999
Publish Sustainability Reporting Guidelines (March 1999 draft) "Banking on the future" (1997) Report provides an overview of banks’ performance in relation to the aspirations of the UNEP statement on Environment and Sustainable Development Published "Environmental Issues in Financial Reporting" 1996
The UK Competent Body for EMAS, responsible for administering the scheme and maintaining a register of organisations that are participating
Publishes "ICC Guide to Effective Environmental Auditing", and UNEP/ICC/FIDIC Environmental Management System Resource Training Kit
Best practice, case studies, indicators and benchmarks, and environmental management tools, information on standards ISO 14001 series
Text of the OECD Guidelines for Multinational Enterprises, recommendations for companies to act in harmony with the policies of the countries in which they operate
European Commission
European Federation of Accountants (FEE)
Global Reporting Initiative Green Alliance
The Institute of Chartered Accountants in England and Wales
Institute of Environmental Management and Assessment
International Chamber of Commerce
International Network for Environmental Management
International Organization for Standardization
Organisation for Economic Cooperation and Development http://europa.eu.int/comm/environm ent/emas www.euro.fee.bc www.globalreporting.org www.green-alliance.org www.icaew.co.uk www.emas.org.uk www.iccwbo.org/ http://www.inem.org/ www.iso.ch www.oecd.org./daf/investment/guidel ines/mnetext.htm
APPENDIX 2: Further information sources on the Internet
Small and medium sized enterprises
Publishes reports, trends, analysis and survey data on issues of corporate governance and corporate responsibility including "Environmental Reporting 2000: The PIRC Survey of the FTSE All Share Index (2000)"
The SERM rating provides an overall, balanced assessment of the financial exposure of an organisation to its safety and
environmental risks, relative to its ability to manage them and to meet potential liabilities
Environmental Reporting: Getting Started
To order copies of "The Non-Reporting Report" 1998, UNEP and SustainAbility. Explores barriers to and opportunities for environmental reporting
Publishes environmental guidance for small businesses Produce on-line EMAS Tool Kit for SMEs
Pensions Investment Research Consultants
Safety and Environmental Risk Management Rating Agency Ltd.
UK Department of Environment, Transport & Regions
United Nations Environment Programme
British Bankers Association
International Network for Environmental Management www.pirc.co.uk www.serm.co.uk www.detr.gov.uk/environment/envrp/r eport.htm www.earthprint.com/cgi- bin/ncommerce3/ExecMacro/UNEP/se archrslt.d2w/report www.bba.org.uk http://www.inem.org/
APPENDIX 2: Further information sources on the Internet
Appendix 3: Glossary
ACCA Association of Chartered Certified Accountants
Biodiversity Embraces the variety of life and "genetic stock", generally in relation to a particular area or ecosystem. The protection of biodiversity is widely recognised as important so that organisms and ecosystems remain adaptive to changing environmental circumstances and also available as a resource to human beings.
BREEAM Buildings Research Establishment’s Environmental Assessment Method.
Carbon dioxide Combustion product, emitted primarily from power stations and
(CO2) vehicles, and primarily responsible for climate change.
Carbon taxes Financial mechanisms introduced with the aim of reducing emissions of carbon dioxide and thus the consequences of climate change. In the UK a Climate Change Levy has been introduced as a tax on energy suppliers. The tax varies depending on the method of energy generation, and renewable energy and some combined heat and power schemes are exempt. The energy producers administer the levy on their customers, with discounts for sectors that have voluntarily implemented energy efficiency measures.
Climate change The most accurate term for the global environmental change also known as the greenhouse effect and global warming. A worldwide scientific consensus has emerged that emissions of certain pollutants (particularly CO2) is causing the sun’s heat to be trapped rather than remitted to space, causing a global average increase in temperature, resulting in potentially significant regional changes in climate, such as increased storm frequency, drought and sea level rise.
International agreement to take measures to slow down climate change have now been introduced, the most recent being the Kyoto Protocol to the UN Framework Convention on Climate Change (UNFCCC). The Kyoto Protocol commits its signatories (including most major economies) to reduce emissions of six key pollutants, CO2, methane, Nitrous Oxide (N2O), PFCs (perfluorocarbons) SF6 (sulphur hexafluoride) and HFCs (hydrofluorocarbons).
Collateral The property or asset that is given, deposited or pledged to ensure the fulfilment of an obligation.
Compliance Acting within the requirements of the laws or regulations.
Contaminate Cause to make impure, unclean or unfit for use by contact or addition of something, specifically in context of making land or water unfit for use by spilling, leaking, etc. of hazardous or toxic chemicals.
Convention on A Convention designed to protect genetic variety, signed by 156
Biological nations and the EU at the 1992 Earth Summit. Signatories commit to
Diversity protect biodiversity in accordance with the Global Biodiversity Strategy.
DETR UK Department of the Environment, Transport and Regions.
Direct risk Risk of loss to the lender as a result of one's own or others' action.
Eco-efficiency The delivery of competitively priced goods and services that satisfy human needs and bring quality of life, while progressively reducing ecological impacts and resource intensity throughout the lifecycle, to a level in line with the Earth’s carrying capacity.
Eco-labels Labels attached to products which meet national or EU criteria for environmental performance throughout the product’s lifecycle. Although national schemes exist such as the German "Green Dot", the EU has introduced Decisions in this area and issued eco-label criteria for a number of product groups e.g. copying paper.
Eco-management Non-mandatory EU Regulation governing environmental management
and Auditing and reporting, against which companies are verified and certified.
Standard
Effluent Fluid discharge, generally in the context of waste-water from a facility.
Emission A discharge; generally in the context of the release of wastes or other by-products into the air or water.
Environment The living and non-living surroundings, natural or man made, which make life on earth possible.
Environmental An investigation of processes and procedures of a company or site with
Audit respect to its compliance with applicable laws and regulations and impacts on environmental conditions.
Environmental The collection and assessment of data relative to environmental
Due Diligence conditions or impacts prior to a transaction, to identify and quantify environment related financial, legal and reputational risks.
Environmental An assessment of the resultant impacts on the natural or human
Impact Assessment environment of a proposed project or development, usually performed
Environmental Internal or external reporting of environmental performance. Can take
Reporting the form of an addition to a company’s annual report, or form a separate document.
Environmental A preliminary process completed by a financial institution to assist in
Screening determining which transactions should be subject to more in-depth environmental risk assessment.
Environmentally Description gauging relative potential of a company or activity to affect
Sensitive a negative impact on the environment; sometimes used to describe the susceptibility of a natural resource to environmental damage.
Global Warming See Climate Change.
Greenhouse The insulating effect of the earth’s atmosphere which keeps
Effect temperatures high enough for life. This is a natural and vital effect, but when increased by human activities (the enhanced greenhouse effect) results in climate change.
Greenhouse Gases that cause and accelerate the greenhouse effect (see above). Key
Gases greenhouse gases are carbon dioxide (produced by combustion) and methane (often produced by anaerobic digestion such as occurs in landfill sites, and from the guts of cattle and termites), but also Nitrous Oxide (N2O), PFCs (perfluorocarbons) SF6 (sulphur hexafluoride) and HFCs (hydrofluorocarbons).
Health & Safety The set of issues which are concerned with the welfare of employees, both with regard to occupational health and accidents at work. Management of Health and Safety and Environmental issues is often combined.
IFAC International Federation of Accountants.
Impairment Damage or injury.
Indemnify To agree to compensate or reimburse an individual or other legal entity in the event of a loss incurred as a result of the signatory's actions.
Indirect risk Risk incurred as a result of negative impact on another party, for example, when a lender is affected by a negative impact on a borrower.
ISO International Standardisation Organisation. Produces ISO 14000 standards for environmental management.
Joint and The legal concept that any one of many contributors to damage can be
Several Liability held responsible for all of the damage.
Kyoto Protocol International agreement to take measures to slow down climate change. The Kyoto Protocol to the UN Framework Convention on Climate Change (UNFCCC) commits its signatories (including most major economies) to reduce emissions of six key pollutants: CO2, methane, Nitrous Oxide (N2O), PFCs (perfluorocarbons) SF6 (sulphur hexafluoride) and HFCs (hydrofluorocarbons).
Landfill The site of the disposal of domestic or industrial waste or rubbish (or possible hazardous wastes) on land, frequently covered with soil.