EHJ December 2004, pages 378-380

A successful local economy is vital to the regeneration of local communities and the drive towards sustainability. Alan Bennett and Michael Checkley explain how Coventry MDC has assisted the city's automobile industry to improve its environmental performance

Far too often in the past, businesses have willingly pursued economic growth with scant regard for the environment. Times are a-changin', however, and increasingly businesses are beginning to appreciate that sound environmental management makes good business sense, and that waste production, pollution and inefficient use of resources are a burden that raises costs.

Businesses approach environmental management in various ways. For some, this may be through greater energy efficiency, while for others it translates into brand image and reputation. However, while figures published by the Environment Agency show industry spends an estimated £4bn a year on environmental protection, many companies, particularly small and medium-sized enterprises (SMEs), are still falling short of the legal requirements for environmental protection.

The EA reports in its survey how green are small businesses? that four-out-of-five businesses do not know about the requirements for the duty of care legislation relating to waste. Perhaps more worryingly, only one-in-five businesses could name any environmental legislation that applied to them without being prompted.

Local government has an interest in the environmental performance of businesses in its area. Every local authority has environmental protection and economic development responsibilities and a wider role of promoting the environmental and economic wellbeing of the community. But research by the CIEH reveals that many local authorities are struggling to integrate the social, economic and environmental aspects of sustainable development, and need more guidance in this area.

Coventry MDC has long recognised the importance of assisting local businesses to improve their environmental performance. It has worked closely with a number of business sectors, most notably the motor industry, which has been one of the major players in the city's economic success since the early twentieth century. The industry continues to make a significant contribution to the local economy, employing over 20,000 people in the automotive manufacture and component supply sector. An important driver behind the council's efforts to improve the motor industry's environmental performance and enhance its competitiveness has been the need to protect jobs, which could be lost to overseas suppliers.

COVENTRY'S TRACK RECORD

Back in 1992, the council commissioned a report to look at the environmental issues that faced industries in the region. The findings listed 24 actions to help industries respond to the opportunities and threats posed by growing environmental pressures. A major theme throughout the report was the potential role of the local authority as a "steward" for the environment, not only in terms of encouraging better communication between industry, communities and the council but also in attracting external funding to kick start environmental improvements within firms.

Once the report findings had been digested, the council looked to see what funding was available from the government and the European Union to develop new schemes. Seminars and training sessions involving large local employers were also organised to ensure their suppliers were onboard for any initiatives that improved environmental performance. Customer pressure proved to be a critical factor in ensuring firms got involved with the environmental performance improvement schemes planned.

Next, the council joined forces with the then Rover Group to trial the introduction of the British Standard 7750: 1992 - the world's first environmental management standard (now replaced by ISO 14001: 1996) in six of the group's key suppliers. The pilot project proved that customer pressure plays an important role in encouraging firms to adopt environmental management and that, on a practical level, the involvement of the local authority is vital in delivering environmental management awareness and training.

Since then, the council has run five EU-funded programmes with Jaguar and Land Rover as key partners. This work has helped SMEs remain on the supplier list, at a time when major vehicle manufacturers decided that possession of ISO 14001 was an order qualifier. Supplier seminars were held at the start to help foster the SMEs' active involvement and to communicate clearly the vehicle manufacturers' environmental requirements. The council next provided in-company support on a "free at point of delivery" basis to help SMEs achieve the ISO 14001 standard.

Using a tried and tested 10-step method, over 200 regional SMEs in the automotive supply chain have achieved the standard and over 10,000 employees have received training. As well as providing a logical process-driven approach, the method also enables the council to monitor accurately the SMEs' progress. In many cases, the programme funding covered the cost of externally assessing the environmental management system (EMS) to ISO 14001. The high cost of certification is known to penalise small firms and consequently the funding removed a major financial burden for them.

As the projects have matured, seminars on specific topics such as the climate change levy, the End of Life Vehicle Directive, energy efficiency, water and waste management and new quality standards such as TS16949, have ensured that firms remain onboard and retain a competitive advantage. Over the course of these projects, over £1.5m in grant support has been tapped to help firms improve their environmental management and to safeguard jobs.

Council assistance has evolved with changes in legislation and business climate and covers three main themes - management systems, legal and specific services.

MANAGEMENT SYSTEM SERVICES

The aim of the management system services is to help firms implement and maintain formal management systems that cover the environment, either to the ISO 14001 or BS 8555 standards and health and safety, to the OHSAS 18001 specification. The services include implementation of an EMS using the 10-step method, advice and guidance on implementing a health and safety system and the provision of CIEH-accredited environmental awareness training. For firms wishing to maintain their EMS, regular training sessions for internal auditors are held and a second party auditing service is offered.

LEGAL ASSISTANCE

Coventry MDC supplies a register of legal requirements to many local companies, which helps maintain their EMS and reduce the risk of legal breaches. The council also warns companies in advance of new European directives so that they have ample time to plan ahead and remain competitive. Annual legal compliance checks are offered so that firms can get objective confirmation that they are operating within the law and can demonstrate this to external auditors. An Ends assessment from February 2004, argues that these checks are likely to be become more important as the assessment bodies tighten up their legal compliance requirements as a result of the recent review of EMS effectiveness.

SPECIFIC SERVICES

These aim to address environment or business-related issues that improve companies' competitiveness, for example the provision of single-issue reviews on energy or waste, initial environmental reviews and DTI benchmarks.

INDUSTRY'S RESPONSE

One of the council's main aims is to ensure it continues to offer local firms the assistance they really need. To achieve this, customer feedback surveys are conducted as well as more wide-ranging research, especially within the crucial automotive sector in the region.

Two surveys carried out in 2002 and 2003, covering over 600 suppliers to Jaguar and Land Rover, investigated the benefits and drawbacks of EMSs and ways in which sustainability might be addressed.

The surveys revealed some important findings. Responses showed that 95 per cent of respondents had found the EMS had improved their legal compliance. Sixty eight per cent said the company now polluted less as a result, while 62 per cent reported that the EMS had helped reduce waste costs. In other areas, 89 per cent of respondents agreed that EMS had encouraged more extensive recycling.

On the issue of sustainability, 81 per cent of companies saw an EMS as an essential stepping-stone towards this goal and over 60 per cent would like to help their suppliers adopt the principles of sustainable development. Only 20 per cent of firms have so far developed any sustainability indicators and, of those that have, only one-in-five report the results to stakeholders.

The council has conducted further research, which reveals that 77 per cent of firms do not agree that just because sustainability is described as a moving target, it demands less emphasis. Forty-four per cent of respondents said that proven cost savings would be the single biggest driver for taking an active approach to sustainability. When the council asked firms for their opinions on the relevant sections of the government's definition of sustainability, 93 per cent ranked protection of the environment as most important, above economic growth.

Coventry MDC intends to use the research to promote sustainability within firms in the region. While the research confirms that the cost element remains a crucial driver for firms deciding to implement an EMS, once it has been installed, firms see the route towards sustainability more clearly and are keen to promote the message to their suppliers.

NEXT STEPS

Thanks to the knowledge and experience gained from working within the automotive sector over the last 13 years and the partnership with Jaguar and Land Rover, the council has developed a new project. The aim of this five-year initiative is to support the two companies in developing sustainability management tools so that they can understand and improve the competitiveness of their supply chains.

Hand-in-hand with this work, the council will provide support to supplier companies to help them consolidate environmental management into their activities and to move towards sustainability. The council will also provide help and assistance on present and future industry requirements such as Design for the Environment (DfE) and legislative developments. It will help businesses to improve performance through resource efficiency projects, which will be identified, evaluated and implemented through a life-cycle analysis approach and benchmarking process.

The role of local government in economic development and environmental improvement is well established and understood by local communities. While integrating social, economic and environmental activity to deliver sustainable development is more difficult, local authorities can help in tangible ways.

Coventry MDC's long-term programme of assistance to the automotive industry demonstrates how a local authority can provide such practical help and, at the same time, work in partnership with businesses in the pursuit of sustainability. The programme also represents a possible model of how a successful public/private partnership could lead to the effective integration of sustainable practices.

For more information, contact Alan Bennett, head of environmental health at alan.Bennett@coventry.gov.uk or Michael Checkley, principal management systems consultant, environmental health at michael.checkley@coventry.gov.uk