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Meeting the challenge of environmental legislation and green compliance

Sectors including life sciences, consumer goods, financial services and government are now experiencing the same pressure to become green once felt only by high-polluting industries such as manufacturing, transport and energy. No sector remains immune to the requirements of environmental legislation.

Yet, as they seek to respond to the requirements of environmentally aware consumers and investors, and the demands of environmental regulation, some organisations consider green issues to be a burden.

To profit from the new reality, organisations need to recognise that the drive for green compliance has the potential to open new markets, create new areas of growth, make processes more efficient, deliver cost savings and increase profitability.

Organisations that put strong environmental governance at the heart of their approach will benefit from long-lasting growth during the world’s transition to a low-carbon economy.

Businesses can rise to the challenge of green compliance by focusing on one or more of the following strategies:

Re-imagining mobility to reflect climate change regulations

Climate change regulations are encouraging new approaches to work, travel and transport, with the transition to fuel- or resource-efficient technologies, renewable energy sources and energy storage within the grid playing an important role. Developing these new approaches requires insight into vehicle technology, energy supply, connectivity, finance and business models, and the new generation of environmental planning.

PA’s experience includes working with Magna Steyr to reduce production costs for a lithium-ion battery, which helps vehicles achieve carbon emissions reduction targets, and meet the target price agreed with the customer.

Building carbon emissions reduction targets into energy generation

With energy consumption responsible for 75 per cent of greenhouse gas emissions, governments worldwide are implementing environmental regulations to improve energy efficiency and green the power supply. Energy leaders and heavy users of energy must navigate policy, foster technology innovation, evaluate infrastructure and financial options, ensure environmental compliance and improve performance while increasing the bottom-line through the right strategic decisions.

PA’s experience includes working with Hawaiian Electric to develop a strategy that would allow the business’s generating arm to meet renewable energy targets and carbon emissions reduction targets, and increase shareholder value. We have also worked with UK Power Networks to position the company as a leading distributor in the transition to a low-carbon economy.

Embedding green compliance in operations

Under pressure from environmental legislation to reduce the impact of their operations, manufacturers in the life sciences, industrial engineering, automotive and consumer products sectors are developing and exploiting new technologies and processes to green supply chains and operations, improve resource efficiency, and create innovative products and packaging.

PA’s experience includes working with a global manufacturer to overhaul its resource-intensive operations and make progress on carbon emissions reduction targets to the sum of 200,000 tons a year – equivalent of approximately £2 million cost for carbon offset.

Putting environmental compliance at the heart of business

The financial imperative is now the prime driver for green compliance: environmental taxes imposed by governments have a direct impact on corporate performance, while major investors increasingly recognise the strong link between environmental compliance and financial results.

Organisations can steer a practical line between needs and constraints by: pricing green initiatives in terms that mean something to markets; dividing the risk associated with green projects into component parts to attract a broader spread of investors; and pricing non-compliance with environmental regulations directly into the cost of goods and services.

PA has worked with Energy Investors Funds to understand the risk and consequences of investment into gas assets along the east coast of the US.

To find out how PA's experts can help you meet the challenge of environmental legislation and green compliance, please contact us.

Contact
David Troman
Regulation
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