What is an environmental policy?

An environmental policy, also referred to as an environmental policy statement, is a document that outlines an organisation’s approach to environmental topics. It provides a framework for setting objectives, describing planned actions and explaining how the business intends to manage its environmental impact. Many organisations use these policies to organise their sustainability efforts and reference publicly available expectations or industry standards.

Why an environmental policy can be useful

An environmental policy highlights an organisation’s interest in sustainability and its intention to manage environmental impacts over time. While having such a policy is not a legal requirement, many organisations use one to communicate their sustainability priorities and share their goals with employees, customers and other stakeholders. These documents are often sponsored by senior leadership and reflect the organisation’s broader strategic ambitions.

Benefits of having an environmental policy statement

Environmental policy statements can offer several benefits. Many organisations use them to structure their sustainability activity and explain how they intend to incorporate environmentally conscious practices. Commonly referenced benefits include:

• organisational clarity: the policy creates a central reference point for sustainability efforts

• environmental risk awareness: identifying potential environmental risks can help organisations consider how to reduce the impact of issues such as extreme weather or supply-chain disruption

• reputation and trust: public sources note that customers and investors increasingly pay attention to sustainability; a clear policy may contribute to stronger stakeholder confidence

• operational efficiency: environmental policies sometimes lead organisations to explore resource efficiency, which may support cost savings and reduce waste

Tips for creating an environmental policy statement in the UK

An effective environmental policy is clear, succinct and aligned with the organisation’s goals. The following tips can help when creating the document.

Tip 1: Confirm the organisation’s objectives

Clarify what the organisation aims to achieve. A policy typically reflects overall business goals and translates them into sustainability-focused intentions.

Tip 2: Keep it comprehensive and concise

Focus on clarity. Simplify complex topics so they are easy to understand and act upon. Many organisations find that a brief, well-structured policy document helps support consistent understanding across the business.

Tip 3: Align with the organisation’s tone of voice

Ensure the policy reflects the organisation’s culture and communication style. Using a straightforward, accessible tone can help readers engage with the content.

Tip 4: Set realistic goals

Set goals that are clear and practical. Timelines may help provide structure, and achievable objectives often support greater engagement from teams involved.

Tip 5: Communicate the policy clearly

Many organisations choose to communicate their environmental policy internally and, where helpful, externally. Presenting the policy in an accessible format may help reinforce key messages and ensure that employees understand their role in meeting the stated objectives.

Tip 6: Review and update the policy regularly

Environmental policies can evolve as internal priorities or external expectations change. Reviewing the policy periodically helps ensure it continues to reflect the organisation’s goals. In some organisations, the environmental policy contributes to broader documents such as a corporate social responsibility (CSR) policy.

Essential components of an environmental policy

While each policy should reflect the organisation’s specific needs, several components are commonly included.

Clear governance

A strong environmental policy outlines the organisation’s goals and the actions it intends to take. It also identifies who is responsible for overseeing the policy. Clear governance helps clarify roles, responsibilities and accountability.

Focus on environmental topics

Many environmental policies cover topics that directly relate to organisational impact, such as:

• Utilities and energy: organisations may choose to focus on resource efficiency or explore publicly available information on sustainability practices from energy and water providers

• Transport and travel management: some organisations assess business travel patterns and consider lower-impact alternatives, such as virtual meetings or rail travel, where appropriate

• Waste management: common approaches include reducing waste, managing recycling processes or limiting single-use materials, though each organisation determines what is suitable for its operations

• Selection of suppliers: some organisations consider environmental factors as part of supplier evaluation; reviewing supply-chain practices can support broader sustainability objectives

Building support and engagement for environmental change

An environmental policy can help organisations communicate their sustainability intentions and integrate environmental considerations into everyday operations. By outlining clear objectives and providing guidance, businesses can encourage long-term engagement, contribute to positive environmental outcomes and align with stakeholder expectations.