Make your business green

If you haven’t already done so, now is the time to start improving your business’ green credentials. If you don’t, you run the risk of losing trade, higher taxes or perhaps even litigation. Here are a few points to think about:

By Donald Forsyth, commercial partner at Scottish accountancy firm Scott-Moncrieff

“Preferred substances policy” – no, it’s not a new government initiative. It’s the name of Wal-Mart’s new stance on ridding their supply chain of potentially harmful chemicals. I suggest that you ignore this type of commitment at your financial peril.

Even the most casual observer must have noticed the change that’s happened in the food industry in recent years as we move to a salt-free, fat-free, sugar-free, organic existence.

Any food manufacturer/processor that hasn’t moved with the times probably hasn’t moved much stock recently.

A recent study reported that investors in the US are becoming increasingly wary about the risk of reputational damage that can be caused by toxic materials in products. Do you know what’s in your supply chain?

Taxation

Tax breaks for going green are already here. Enhanced Capital Allowances (ECAs) enable a business to claim 100% first-year capital allowances on their spending on qualifying plant and machinery. This includes:

• Energy-saving plant and machinery
• Low carbon dioxide emission cars, and natural gas and hydrogen refuelling infrastructure
• Water conservation plant and machinery

Businesses can write off the whole of the capital cost of their investment in these technologies against their taxable profits of the period during which they make the investment. This can deliver a helpful cash flow boost and a shortened payback period.

We’re all now familiar with CO2 emissions forming the basis for company car benefits. Just think back to how strange that would have seemed 10 years ago. It is inevitable that more green taxes will follow. Start changing your business now and pay less tax in the future!

Travel

Project ICARUS was established by the ITM (Institute of Travel Management) to promote carbon reduction in travel management programmes throughout the UK business travel industry.

The ITM’s website (www.itm.org.uk) has useful resources to help companies make their business travel greener. The resources vary from a guide to video-conferencing to a toolkit for buyers to use to implement a carbon reduction system.

Whether you go for the full toolkit approach, introduce car-sharing or pay a mileage allowance for the use of bicycles, there will be something you could do to make your business travel greener.

Power

Power costs have increased. If you can use less power you will pay less. There are lots of innovative ways of achieving this. If your existing system is not efficient you could look at helping to finance an upgrade with a loan from Loan Action Scotland.

They provide interest free loans from £5,000 to £100,000 to SMEs and registered charities to help finance energy saving measures. You can contact Loan Action Scotland through your local enterprise company.

Recycling waste

Whether you have an ambitious programme for recycling or simply encourage people to print less, re-use printer paper (it has two sides – I know that sounds more mean than green) or you populate your premises with recycling bins, nearly all business will have opportunities to reduce, re-use and recycle.

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By Donald Forsyth  on   Jul 10,2008

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Keywords

green business    corporate social responsibility    tax breaks    recycling    save money   

Comments

Jack
I think people are very wasteful especially when it comes to paper. They think that because they have put it into recycling that that's OK but using both sides should really be encouraged a lot more. Jack Report Abuse