Reduce waste, reduce expenses and help the environment

As part of the Government's pledge to reduce the UK's carbon emission output it is encouraging businesses to reduce waste and recycle, however this not only benefits the environment but also company finances

Understandably Corporate Social Responsibility has dropped on the list of priorities for most business owners as they concentrate on steering their companies through the current economic crisis. This is especially true of environmental policies, which are often misconceived as being costly and difficult to implement. However, by creating a recycling system many businesses will in fact save money as well as fulfil their Corporate Social Responsibility.

A report printed by the House of Lords in July 2008 on Waste Reduction stated: 'In 2003, a report produced for the Environmental Agency concluded that around £2 billion - £2.9 billion of the annual operating costs of UK businesses could be saved if best practice waste minimisation procedures were implemented. Waste reduction practices are, in general, inherently good for business.'

In addition to its financial benefit for businesses, reducing waste by recycling is an important aspect in combating climate change because it reuses the natural resources used to create goods, which therefore saves energy and reduces Britain's carbon footprint. Furthermore, recycling products reduces the amount of waste going to landfill sites, where a quarter of the UK's emission of methane (a greenhouse gas that has a bigger affect on global warming than carbon dioxide) is emitted.

The Government has recognised the direct link between recycling and reducing the UK's carbon footprint and as a result is keen for households and businesses to establish a recycling habit. Many businesses that franchise already have a recycling scheme in place. One of the most well known franchisors, McDonald's has implemented a Waste Management strategy across its UK network.

The McDonald's Waste Management strategy aims to reduce waste through five key initiatives: Design, Reduce, Reuse, Recycle and Disposal. By examining how the company can improve its performance in these five areas McDonald's is reducing its waste. Under its Design initiative McDonald's has stated: 'At McDonald's, we constantly challenge both ourselves and our suppliers to find ways to improve efficiency, effectiveness and environmental performance. An example is the design of bulk containers for delivering ketchup to restaurants. Ketchup is now provided in a 'Bag in Box' - a soft, plastic bag in a cardboard box, replacing hard plastic jugs and resulting in a waste reduction of 25 per cent. A similar approach has been taken for the provision of soft drinks syrups - with the syrup provided in either a soft, plastic bag inside a reusable, plastic box, or in large, stainless steel tanks that are cleaned and reused.'

Under its Recycling initiative McDonald's has stated: 'All of our restaurants have a target to recycle 100 per cent of their corrugated cardboard. Cardboard constitutes approximately 30 per cent of the average restaurant's total waste and, as such, this recycling activity diverts a significant amount of waste and is also recycled via local collectors at regional refineries into biodiesel and technical lubricants.

'Our restaurants also promote recycling by purchasing recycled products themselves. Such as 100 per cent recycled kitchen towel rolls, toilet paper and outdoor furniture made from recycled plastic.'

Arguably, as an international fast food giant, it is easier for McDonald's to create and implement a Waste Management strategy across its UK network as it has the finances and resources to support its initiative. However there are many organisations and online resources available to aid small and medium sized businesses in creating waste management strategies. For example Envirowise, which is government supported and provides free consultation and advice for businesses, and WRAP (Waste & Resources Action Programme), which helps businesses to reduce waste and recycle by offering a range of information and advice on the sector along with a variety of business development services that focus on four key areas of expertise, management, innovation and investment.

In addition to implementing a waste management strategy many businesses in the franchise sector are developing systems to make it easier for their customers to recycle. For example, mobile phone retail franchise O2 has created the O2 Mobile Recycling Scheme, which encourages customers to dispose of their unwanted mobile phones in O2 stores so that the company can ensure they are recycled. O2 comments: 'Mobile phones and accessories contain tiny amounts of precious metals such as gold and silver, as well as other metals such as copper and iron, which are reclaimed during the recycling process. This prevents these mobile phones from clogging up landfill sites.

'Mobile phone batteries and LCD screens contain hazardous substances which could escape and cause harm to the environment unless they are correctly disposed of. The O2 Mobile Recycling Scheme ensures that these batteries are safely treated while also allowing metals and substances, such as nickel, to be recycled back into productive use.

'Rather than paper manuals, cardboard packing, plastics and plastic packaging ending up in landfill, the O2 Mobile Recycling Scheme diverts these plastics for recycling or for the creation of energy through incineration.'

Franchised buy &'sell retail stores such as Cash Generator and CeX have customers recycling at the core of their business models. These businesses buy and sell pre-owned goods by encouraging customers to bring their unwanted products to stores in exchange for money as well as offering the chance to buy second hand goods. The benefits of this concept includes keeping a high turnover of stock - and as a result frequent repeat browsers - and trading successfully through an economic downturn when consumers are looking to save money by purchasing pre-owned goods instead of brand new.

There are many incentives for businesses to reduce waste and recycle and although many companies within the franchising sector have already created policies to tackle this issue there is still a great deal more that can be done. The House of Lords quoted Michael Glass, Chief Executive Officer at the Process Industries Centre for Manufacturing Excellence (PICME): '... very often people are very busy and the simplest thing to do is to carry on doing what they have always done, and to make improvement one has to make time, to stand back and to re-examine how things are done; to go through a thorough structural approach of mapping and measuring and challenging why things are done a certain way.'

Reported by Derin Ibrahim