Table of Contents
Introduction
A business’s environmental policy sets out a business’ commitment to protecting the environment and complying with all relevant legal and regulatory requirements. The policy also sets out the details of specific obligations the company intends to fulfill. These obligations may include travel, energy usage and waste management. With greenwashing on the rise, and social media being a vessel to hold businesses accountable for their lack of environmental sustainability, it is vital businesses construct a strong environmental policy.
An environmental policy is a central document for businesses to ensure they have completed as they serve as a guideline for how businesses engage with the environment. This article will explore environmental laws and regulations in Australia, the key components of an environmental policy and mistakes to avoid when constructing one.
Environmental Laws and Regulations in Australia
In Australia, environmental laws and regulations operate within a federal and state level.
The main federal laws which regulate business’s activities in Australia are:
Environment Protection and Biodiversity Conservation Act 1999 (EPBC Act)
The EPBC Act governs the conservation of biodiversity and protection of ecosystems. This legislation prevents businesses from practices that may threaten wildlife and plant species in Australia.
National Greenhouse and Energy Reporting (NGER) Act 2007
The NGER Act establishes the legislative framework for businesses to ensure they report their greenhouse gas emissions, energy production and energy consumption.
The Water Act sets out the rules businesses must adhere to in regards to water resource management and the allocation, quality and sustainability of water consumption.
We recommend seeking legal advice to determine what federal and any potential state laws your business is subject to when operating.
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Key Components of an Environmental Policy
Environmental policies must be detailed and compliant with the environmental laws that govern Australia. Below are some of the key components an environmental policy must include:
About The Policy
A business’s environmental policy should include a section dedicated to what the policy aims to provide. It is likely this section will state how the policy aims to formalise the business’s commitment and how they aim to fulfill environmental obligations.
Environmental Sustainability Statement
An environmental sustainability statement will define how the company respects the natural environment and how the business aims to prevent the business from damaging the environment even further. This section will also list the business’s commitments and principles; the actions they intend to take and promise they shall follow.
Technology and Sustainability
Due to the rise of technology usage within businesses and the necessity for digital platforms, it is likely environmental policies will also address ethical procurement of technology and the recycling of devices when being disposed of.
Staff Involvement
Environmental sustainability must also be fulfilled by employees of the company. Environmental policies will likely address how the business intends to involve their staff when being eco-friendly. This could be through collaboration and promoting sustainable practices.
Lawpath recommends using a template or seeking legal advice when constructing an environmental policy to ensure legal compliance and consistency within the document.
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Common Mistakes to Avoid
Specificity
Businesses should avoid being vague and indirect about their pledge to being sustainable. Businesses should consider every aspect of their operations and bridge these with eco-friendly practices. This includes ensuring procurement is environmentally friendly and considering energy consumption.
Not Being Legally Compliant
Being environmentally friendly as a business is a legal matter. Adhering to laws and regulations set out by federal, state and local governments is required. Failure to not translate the laws into principles within the business’s environmental policy can lead to being criminally charged.
Continuous Improvement
The environment is constantly changing, and it is important to monitor the changing societal values and law reforms associated with the environment. Reviewing your business’s environmental policy is an effective strategy to ensure constant legal compliance.
Greenwashing
Greenwashing is the act of overpromising environmental sustainability or being deceptive when it comes to ensuring environmental sustainability within your business. Never make a sustainable promise that you cannot fulfill to prevent being accused of greenwashing and legal action being sought against the business.
Corporate Social Responsibility: Going Being ‘Eco-Friendly’
Whilst it is important to be environmentally friendly and develop an environmental policy, it is vital businesses go beyond mere ‘sustainability’ and adhere to corporate social responsibility. Corporate social responsibility promotes the idea that businesses should be giving back to the society and transcending adherence to environmental regulations. This includes acknowledging Indigenous territories when undergoing business operations or developing an Environmental, Social and Governance (ESG) policy.
Conclusion
To conclude, developing an environmental policy is an important document for businesses to complete. There are various legal regulations businesses are subjected to and should ensure their environmental policy is compliant with these laws. Key components of an environmental policy include addressing technology and staff involvement. It is important businesses constantly review their environmental policy and engage in corporate social responsibility when operating.
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