Poor environmental practice carries the risk of fines if businesses fail to comply with the growing list of regulations, but perhaps more importantly, they run the risk of becoming uncompetitive if they fail to control performance in key areas - for example waste, which, according to the government sponsored agency Envirowise, is costing industry £3 billion annually. Regulations are getting tougher as governments and consumers become increasingly concerned about issues such as:

• Global warming and ozone depletion
• Air and water pollution
• Resource depletion

A Wider Net

Pollution Prevention and Control (PPC) 2002 regulations, which force firms to use best anti-pollution technology, affect three times as many businesses as previous IPC legislation. In addition far more sites - at least 100,000 - will be brought into the waste regulation net by the 2005 Hazardous Waste regulations.

Multiple Responsibilities

A typical organisation may conduct activities requiring them to meet a multiplicity of regulations. For example on:

• Disposal of Waste
• Use of refrigerants
• Responsibility for Packaging
• Use and disposal of water
• Contamination of land.

New Targets

Further compliance targets will develop, with electrical and electronic products, the latest target for legislation. Any firms making, selling or distributing them must now comply with the EU's tough Waste Electrical & Electronic Equipment (WEEE) Directive, making them responsible for financing the collection, treatment, recovery and disposal of these products.

Cost savings

Good environmental management means much more than just compliance with regulations. Businesses who manage their environmental performance may gain competitive advantages over those who fail to address this area.

Envirowise estimates that British industry uses three times more water than necessary and the average office worker wastes 1,584 A4 sheets of paper per month. The agency believes that improved practices could save firms £1,000 per employee per year.

Customer Attitudes

One of the biggest risks firms face is "supply chain black-listing." To meet Corporate Social Responsibilities and customer concerns, more large firms, including blue chip organisations are insisting that their suppliers adopt good environmental practice. Failure to do so risks the loss of lucrative contracts.

Given these deterrents and incentives it's hardly surprising businesses are seeking reliable environmental risk management solutions.