Environmental law update Spring 2015

2. Environmental law update Spring 2015 John Mitchell, Partner, Regulator Risk & Compliance

3. Lettings standards – consultation outcome • Non-compliant standard: EPC rated F or G • Non-domestic: • 1 April 2018: no new lease or lease renewal can be granted for a non-compliant property • 1 April 2020: no leased property may be non-compliant • Domestic: • 1 April 2016: domestic tenant can ask for consent to carry out Green Deal or ECO type improvements • 1 April 2018: no new tenancy or tenancy renewal can be granted for a non-compliant property • 1 April 2023: no tenanted property may be non-compliant • Consequences of non-compliance = penalty

4. EPC lodgements – DCLG research

5. Plastic bag tax • 2013: government consults on biodegradable bag exemption • Jan 2014: government announces exemption will be included in legislation • 4 Jun 2014: Queen’s speech: announces plastic bag tax • 14 Jun 2014: government withdraws biodegradable bag exemption • Jan 2015: government announces it is reviewing its decision to withdraw the exemption

6. Comingled collections • Separate collection of recyclable waste streams should have started last month • Exemptions: • Separate collection is not necessary for high-quality recycling; or • Separate collection is not technically, environmentally and economically practicable • EA and NRW have announced guidance for Local Authorities as to how to apply the exemptions • EA has merely adopted the WRAP Route Map • NRW has issued guidance as to how to interpret necessity and practicability

7. Backdoor charges at recycling centres • DEFRA has launched a consultation into backdoor charging at household recycling centres • Triggered by discovery of charges being levied to householders • The pretext is that the centre has been designated a “discretionary” waste collection service • As a discretionary service charges can be levied • The consultation document points out that this flies in the face of government policy

8. ESOS for SMEs • The Energy Savings Opportunities Scheme applies to businesses: • > 250 employees or • > €50m turnover + €43m balance sheet • Participation is compulsory • For SMEs there no corresponding scheme • The Energy Efficiency (Encouragement, Assessment and Information) Regulations 2014 require the government to develop schemes to encourage SMEs to undergo energy audits

9. Fines for environmental offences • Natural England prosecuted a man called Philip Day • The offence related to disturbance of an SSSI • The defendant was a man of substantial wealth (at least £300m of assets) • After the offence he used his position to intimidate and threaten locals who complained about his actions • He was fined £450,000 and ordered to pay costs of £457,000 • The fine was upheld on the basis that the defendant was a person of enormous wealth

10. Penalty for illegal transfer station • Defendant registered an exemption to allow the use of waste for small-scale construction, limited to 5k tonnes • It took in total 94k tonnes • The waste included soil from a contaminated land site • Some waste was treated and sold off site • The rest went into a golf course • Fines and costs totalled £50,000 • Confiscation order made for £250,000 to remove the proceeds of the crime

11. Environmental law update Spring 2015 John Mitchell, Partner, Regulator Risk & Compliance

12. Responsible Management The Importance of Corporate Social Responsibility

13. Osborne • One of the leading regional construction companies in the UK • Family run • Infrastructure, Construction, Property Services and Developments • Turnover £300M • Profit 2013/14: £4M

14. Osborne Property Services Ltd • Social Housing • Provide repairs and maintenance service across 4 contracts in the South East • Around 500 employees • Turnover 2014/15: £50M • Profit 2014/15: £1M

15. Neal Allison Community Investment Manager Will Hughes Business Excellence Director • Initially sceptical about CSR • Numbers Man • To be effective, CSR should not merely be a bolt on, but it should be embedded in a business • Great way to be true and to live your brand • A good CSR strategy can help to engage and motivate your staff

16. Business Excellence • Winners of the Winchester Business Excellence Award for Corporate Social Responsibility • Why did we win? • “What stood out, above all else, was your staff’s total dedication and commitment to making a difference.” • The Business Collective • This award, like others, can be used in future bids • From this, we are now members of the Business Collective • Working with other businesses will heighten our visibility in the market

17. What is CSR? ”Corporate Social Responsibility is the continuing commitment by business to behave ethically and contribute to economic development while improving the quality of life of the workforce and their families as well as of the local community and society at large.” (Making Good Business Sense, Lord Holme and Richard Watts)

18. Businesses and CSR (people planet profit) Royal Bank of Scotland

19. Businesses and CSR “Tesco is proud of the commitment and generosity of all its staff in helping and supporting the local charities and organisations in the communities in which we operate. We also recognise the importance and value of this local support to the individual organisations and communities concerned. To better help, we have now introduced Community Champions in 25 stores across Ireland, with more to follow. Community Champions are Tesco Customer Assistants who are paid to spend 15 hours of their normal work week working and creating links with their local communities and organisations. Together, the Champions spend over 19,500 hours a year working with and for their communities.”

20. For us, CSR lies mainly with Community Investment initiatives

21. What is the Value of CSR?

22. Added Value • Added Value – volunteering, awards etc • The ‘doing’ has greater value than just ‘money’ • CSR could be an Added Value that could win you the job

23. Value in Business Development • We have won all our current contracts on Quality not Price • We could of lost Dacorum, £235m contract, if we had no CSR evidence and commitments ‘Social housing clients are looking for ‘value add’ when procuring services. A key part of this is delivering community investment, as all public sector organisations are obligated to drive employment, economic and environmental initiatives under the Public Sector (Social Value) Act 2012. It is therefore our obligations as our client’s service provider to help them achieve these obligations by giving more back to local communities and customers.’

24. Value in Staff Engagement • Millennials or Gen ‘Y’s will now begin have CSR embedded in their view of business • Gen Z’s – entering business • Personal development and experience • ‘Cheap Team Building’ • Staff feel happier and feel part of a ‘nice’ business • Altruistic benefits AND practical benefits • Engaged learning We are not robots!

25. Alignment and Engagement David MacLeod OBE

26. Value in Employment Simon Evans • Joined through ready to work scheme Will McInally • Met Will through working with LDX (Learning Disability Experience) at a community initiative • Began with an 8 week unpaid placement • From business point of view – long interview • Impressed during placement • Now has a full time contract at our head office as a Business Analyst You can find perfect candidates and have the chance to work with them first by offering work experience placements. • Completed a two week unpaid work experience placement • Now has a full time contract with us as a Site Operative

27. Reputational Value Credibility • Stand out from your competitors with added value • Strengthens public profile • Seen to be a company who genuinely cares about giving something back • For us, residents know and trust us, and pass this message on • Our work is visible to Clients and possible Clients Brand • For us, approachable and friendly • CI perfect way to showcase this and create positive image of your brand • Merchandise filtered into communities • Banners and presence at large community events with influential organisations • Trust = Repeat Business

28. Measuring CSR Value Impact • Some things easy – Apprentices/Work Experience • Most are not – How do you measure the value of giving a homeless person interview experience? • Becoming growingly important to measure through metrical methods like HACT • Still scepticism around most methods… • All about finding a measure which works and is effective for your business • We are currently undergoing research into how best to measure CSR

29. So…How do we do ‘it’?

30. ID and then Focus on key themes for your ‘sector… • Anti-Social Behaviour • Environment • Elderly/Sheltered Schemes • Cross Generation Bonding • Healthy eating • Joblessness • Fuel poverty • Creating and developing Community Cohesion

31. Develop an approach • Not a straightjacket • Not a spreadsheet • Community Investment ‘Plan’ for each contract • Opportunistic approach • Right people, right time, right focus • Get on the ground – see whats happening

32. Set targets (soft), budget and resources • X ‘successes’ in the year • Recognition in the press • X staff hoursused • X £ • X awards • All £ from Overheads? • Supply Chain • Sector / operating unit P/L • Staff ‘gift days’ – show it matters • Get out on the ground and talk to people

33. Actions not money… • It is easy to throw money at events • Effective CI comes from TIME spent NOT MONEY spent • Bottle Greenhouse – would have been easier to buy a new Greenhouse.. But not as valuable in terms of CSR • What do you think our central budget for CI is?

34. Involve your Supply Chain • They can support through: - Time - Materials - Cash - Advertisement • Using your Supply Chain effectively means you save money on CSR initiatives, whilst often enhancing them • OPSL e.g. – BBQ for Young Carers

35. In the last 12 months… 21 Apprentices employed in trades and admin £273, 274 added value provided 2000 staff hours devoted to community initiatives 70 community initiatives supported 22 work experience placements completed/ ongoing 4400 people engaged through community events

36. What have we been doing (successes)? Supported Business Education Partnership events such as science teambuilding days and Dragons Den events Donated clothes and cooked breakfast for homeless and vulnerably housed people Bottle Greenhouse with special needs school Mock Interviews with schools and homeless centre Refurbished play train and donated to school Refurbished and odd jobs to community centres and elderly homes Supported community and tenant ran events such as Party in the Park Provided work experience placements for 22 young people Gardening initiatives with sheltered housing schemes Worked with local community centre to tackle anti social behaviour Resident forums and conferences And that’s only some of it… Charity Abseil

37. Actions not words…

38. Next steps for us… • Fostering/Cultivating Social Enterprises • Work on measuring CSR • Continue building sustainable relationships in the community • Continue showcasing all of our initiatives • IT/Digital inclusion workshops

39. CSR may start as a cynical, tick boxing part of your business.. But eventually it will genuinely make a better, more successful, more engaged company.