What is an environmental policy? 

An environmental policy, also referred to as an environmental policy statement, is a document that outlines a business’ approach to environmental topics. The policy provides the framework that sets the organisation’s objectives and actions in relation to its environmental impact. It is the go-to document that guides internal practices and asserts the business’ intent to meet any industry standards and regulatory requirements.

Related: Working towards net zero : making a business sustainable

Why is it important to have an environmental policy

An environmental policy showcases your organisation’s commitment to sustainability and to reducing environmental footprint. It provides a roadmap for measurable improvements. Although there is no legal requirement for an environmental policy, it is an effective way for the organisation to show intent to comply with the various environmental regulations. The policy is often sponsored by senior leadership and reflects their dedication to driving change while offering clear guidance on environmental goals. A well-written environmental policy statement in the UK should be straightforward and easy to understand.

Related: Why sustainable business’s matters for business leaders

Benefits of having an environmental policy statement

There are multiple benefits of having an environmental policy statement. Well-constructed, the document helps drive compliance with legislation and leads the business to adopt environmentally friendly practices. Here are some of the core benefits of the document:  

Compliance with regulations

The document serves as the foundation for environmental initiatives. Public sources explain that the UK government has set a 2050 net-zero target and highlight the role business’s may play in supporting national sustainability goals. The policy can help a business stay aligned with relevant environmental regulations by providing a general framework for organising its sustainability efforts. Communicating the policy internally and externally also demonstrates accountability in managing environmental responsibilities.

Environmental risk management

Proactively managing environmental risks allows business’s to minimise the potential impact of future environmental challenges. For example, climate-related damage to assets or disruptions in the supply chain are anticipated.

Positive impact on business’ reputation

All parties involved including customers and investors increasingly expect business’s to prioritise environmental sustainability. A well-crafted environmental policy statement contributes to a positive company’s reputation as it builds trust, enhances your brand image and attracts eco-conscious customers.

Optimised efficiency

Environmental policies often lead to operational efficiency. The document can help business’s use resources more effectively, leading to cost savings and less waste. This not only benefits the environment but also boosts the company’s bottom line.

6 tips for creating your environmental policy statement in the UK

A best-in-class environmental policy statement is complete yet succinct. Following some essential steps when creating the document ensures it is well structured, comprehensive and that nothing has been missed. This section presents some tips to create your own environmental policy as well as what to include in it.

List of tips

When creating your environmental policy, follow these tips. They will help ensure that both the structure and the content of your policy are good.

Tip 1: confirm the organisation’s objectives

Making sure the organisation’s objective are clear is the most important step when creating an environmental policy. The policy should align with the broader goals of the business. It is essential to balance factors like cost efficiency, risk mitigation, public relations and potential business advantages.

Tip 2: keep it comprehensive and concise

Focus on delivering a message that is both impactful and straightforward. Complex ideas should be simplified into easy-to-understand content without losing their meaning. When your goals are well-defined, they should be easy to explain, making it simpler for others to act on them. A typical environmental policy statement should be a couple of pages. It should be clear and concise to ensure alignment across the business and to avoid confusion.

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

Ensure your policy aligns with your company culture. The tone of voice used within the document should align with your company brand. Use straightforward language that resonates with everyone.

Related: Tips for growing a company’s employer branding

Tip 4: set realistic goals

Setting clear goals is essential so that the parties involved know what to aim for. However, overly ambitious targets can be discouraging if the business struggles to meet them. Ensure your goals are associated with timelines for change and that they are achievable.

Related: ESG strategy tips

Tip 5: communicate the policy thoroughly

Like other internal policies, the environmental framework should be communicated internally as well as with customers and suppliers. Creating a visually pleasing document might help get the point across. Making sure that everyone understands the objectives of the policy and how to reach desired goals is key to its success.

Tip 6: continuously review and update your policy

Your environmental policy statement should be a document that evolves with time. External factors and internal changes might lead to policy development. Furthermore, a well-crafted environmental policy can form the basis for the CSR policy.

Related: What is corporate social responsibility?

A clear environmental policy goes beyond setting targets to reduce the impact on our planet. It reflects the organisation’s business mindset and culture, positioning the company to meet future expectations and to stand out with an achievable strategy.

Related: Five impactful sustainability initiatives for a better business

Essential components of your environmental policy

The policy should be specific to your business, reflecting your needs and culture. However, there are some common best practices to adopt when crafting your document. Here are some essential components to an environmental policy.

Clear governance

A strong policy should clearly define the organisation’s environmental goals and commitments, outlining the steps required to achieve them. It is also essential to assign responsibility for the policy to a designated owner who is accountable for the targets. The governance should provide details on the parties involved with their roles and responsibilities.

Focus on environmental topics

The policy should cover key environmental topics that impact the organisation’s footprint. Here are some of the most common topics that environmental policies cover:

• Utilities and energy

Consider evaluating energy and water usage. The selection of your provider should also be made with care as energy and water suppliers take different actions to minimise their impact on the environment. Make a commitment to reducing consumption and shifting to sustainable practices.

• Transport and travel management 

Many organisations review their transportation methods and, according to public sources, may encourage lower-impact options such as virtual meetings or rail travel when feasible.

Related: Guide to corporate travel policies

• Waste management

Provide insight on how to reduce consumption, manage waste and recycling. Public sources highlight common approaches such as reducing single-use plastics or expanding recycling efforts, though each organisation may determine what is appropriate for its operations. 

• Selection of suppliers

Consider aspects like the selection of supplier and the entire supply chain. Some organisations consider environmental practices when evaluating suppliers, as public sources suggest this may support broader sustainability goals. 

• Build support and engagement for environmental change

An environmental policy is an essential tool for business’s to demonstrate their commitment to sustainability, meet regulatory requirements, and enhance operational efficiency. By integrating clear objectives and guidance within their document, companies can foster long-term environmental impact while boosting their reputation and aligning with customers values.

Related: HR policies: how they can influence employee attitude and performance