Businesses & Sustainability in Wales a practical approach
Companies in Wales are supporting the development of a new tool which will assist individual businesses to manage sustainability issues across their operations. The work is being led by ARENA Network and we have invited their Chief Executive, Alan Tillotson, to explain the approach in more detail.
EB: Alan, this sounds like an exciting & practical approach and perhaps you could first explain how it all came about?
AT: Well, it all began in November 2002 when the First Minister, Rhodri Morgan, returned form the Earth Summit in Johannesburg and emphasised the importance of embedding sustainable development into regional policy and, indeed, into everything we do. At this time we had been particularly successful in assisting some 250 companies to achieve our ‘Green Dragon Environmental Standard, which provided a stepped approach to the implementation of an environmental management system, and we were formulating our preliminary thoughts on how to support business on the broader challenges of sustainable development.
EB: There have been an ever increasing number of strategies and initiatives on sustainable development in the UK over the last 10 years; how have you been able to make progress in a relatively short period of time?
Alan Tillotson
Chief Executive
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AT: Without doubt, the fact that Wales is almost unique being one of an handful of Legislatures in the world which actively addresses sustainability issues has helped. In fact, when the National Assembly for Wales was established some 7 years ago, it set itself a duty in statute to promote sustainable development and we believed that this has presented an excellent opportunity for companies located in Wales.
EB: So what has been the role of ARENA Network in developing this opportunity?
AT: ARENA Network was one of the first ‘not-for-profit’ organisations established in the UK which was ‘led’ by business for the ‘support’ of business. Over the last 13 years or so, we have provided support services to companies on an independent, professional & practical basis in order to assist them to improve their environmental performance and to adopt environmental best practice. Our role, in many respects, is that of being a friendly ‘catalyst’ to companies and other organisations as well as being an effective partner and ‘conduit’ between Government, Regulatory Authorities and industry & commerce.
EB: I understand that you brought together a group of your member companies into a project entitled “Sustainability in Practice in Business” (SPB) from which subsequently you have developed the SMAS tool – “Sustainability Management & Audit Scheme”. Tell me more about the role that companies played?
AT: Quite simply, they have played a pivotal role – they provided the initial development funds; as a project steering group they formulated & directed the project work plan; and, more importantly, they brought & shared their knowledge and current approaches to business & sustainability issues.
The SPB programme of work focused on 3 main deliverables which included a “one-page” summary briefing note for company directors on sustainable development; an open-access website & resource on business & sustainability best practice; and the development of an effective framework that would enable companies to manage their sustainability issues. The briefing note was issued in July 2005 and has received favourable comments from business. The website is still in development and restricted to the SPB participating companies; it is anticipated that it will be available to business at large in the Autumn. The framework took shape as SMAS and this was launched as an exposure draft in October 2005 by Sue Essex, Minister for Finance, Local Government & Public Services (and formerly the Minister for the Environment).
EB: You referred to the SPB participating companies who presumably funded the work; can you provide more details on these businesses?
AT: Yes- they included Borg Warner, Corus Strip Products, Dow Corning, L’Oreal Manufacturing, Panasonic Communications UK, Rockwool, Solutia, Wales & West Utilities, Anglesey Aluminium, Laura Ashley, Tetra Pak UK and Warwick International.
EB: So tell me more about SMAS – I understand that it takes a stepped approach to the management of sustainability issues as Green Dragon takes to environmental issues?
AT: We adopted a similar & stepped approach for 2 main reasons – firstly, the take-up of Green Dragon is impressive (with over 700 certifications to date) and has demonstrated that companies & other organisations seemingly prefer a staged and ‘bite-size’ approach when implementing improvements within the business. Secondly, as agreement has yet to be reached on the definitive indicators of sustainability in business (especially within the social metrics), the stepped approach offers that flexibility which is sensible in the development of effective management systems.
SMAS focuses on stakeholder involvement and relationships and is configured as a 6-level standard (Graphic from Project file). Further development work is currently in-hand in order to refine the range of metrics which will underpin sustainability improvement plans & programmes. Any agreement on practical sustainability indicators at a National level will, of course, be adopted in SMAS in due course.
EB: It is clearly evident in the technical press and general media that companies are having to address their sustainability issues beyond their financial & environmental performance and it does appear that SMAS can provide an useful management tool; so, where next for SMAS?
AT: The requirements for company reporting in the Operation & Financial Review have now been dropped. However, although there is less of a statutory driver for reporting, many companies are engaging their wide range of stakeholders and SMAS is an excellent way of managing and reporting on the diverse range of interests. Many companies are already operating at very high standards and SMAS recognises that achievement and encourages further improvement.
Further notes:
Quotes
Jonathan Mead, European Environment Health & Safety Manager, Dow Corning:
The 160 acre site in Barry has been associated with Silicone production since 1952 and is located between sea docks and the town. The site came under full Dow Corning ownership in 1971 and over the past 30 years has developed into the largest of our plants in Europe and the most modern and technically advanced silicones facility in the world.
Our silicones find their way into everyday products around the world and our employees on site are constantly striving to improve quality and performance. Similarly, we always endeavour to maintain our high level of stakeholder involvement in the company’s operations. For example, we have an “open door policy” which enables our neighbours to visit the plant and ask questions of our staff & management and this is supported by our regular meetings with local community groups.
We are delighted to see the development of SMAS and its practical approach to sustainability reporting. It is proving itself to be an useful tool not only in understanding how companies can drive higher business & CSR performance standards but also how that can be demonstrated objectively to stakeholders.
Janet Boast, Quality & Environmental Assurance Manager, Rockwool:
Rockwool is the leading manufacturer of mineral wool insulation replicating a natural volcanic process to produce products for thermal and noise insulation which are naturally fire resistant. We understand that our local actions have a global impact and are committed to a socially, environmentally and economically responsible approach to our business.
Aside from manufacturing a product that is environmentally friendly, Rockwool has done more than just comply with minimum regulatory requirements. We have undertaken comprehensive life cycle inventories for our products and actively seek to reduce our negative environmental impacts whilst enhancing the positive impacts that the use of our products provide. In addition, we have demonstrated the value of commitment to effective communication and of working with a wide range of stakeholders from the local community, business, government and expert bodies.
When we first joined the SMAS project Rockwool was taking the opportunity to learn from others and to benchmark our performance with the aim of continual improvement. However, we recognised quite quickly that much of our business approach implicitly included many of the aspects of sustainable development but were not reported in explicit terms. SMAS is assisting Rockwool to implement an effective management approach to sustainability.
Martyn Price, Directeur, ETNSE , L’Oreal Manufacturing (UK):
The factory in Llantrisant was opened in 1973 and has evolved into a “Centre of Excellence” for shampoos, conditioners and hair styling products exporting two thirds of output around the world. The site was the first in the group to be awarded ISO 14001 certification. L’Oreal aims to extend their values beyond the factory gate and, in fact, the Company is the first ever recipient of “Diversity Best Practices' Global Leadership Award”.
We employ over 400 at our Llantrisant site and we all continually strive to improve and maintain best manufacturing and environmental practices in the business. As part of this process, the work that is undertaken with wider stakeholders and our neighbours provides new experiences & new learning opportunities for both staff and the Company. We see SMAS as an ideal and practical tool to assist in managing our local stakeholder interactions and in complementing L’Oreal’s Group CSR initiatives.