Conscience counts on water strategy

16% see reducing their 'environmental footprint' as the major influence on water strategy.

Cost is no doubt the major driver behind water strategy.

However, growing environmental awareness, a fear of external scrutiny, plus pressure from the regulator mean that 'conscience' is also shaping the way corporate Britain manages its water.

According to the IWEX Report, commissioned by the organiser of IWEX 2005 and the publisher of WET News, over a third of companies surveyed have a corporate social responsibility (CSR) stance, and as a result 16% see reducing their 'environmental footprint' as the major influence on water strategy.

Not surprisingly, the biggest companies are most aware of their social responsibilities, with 70% of the largest manufacturers having a formal CSR policy.

As big local employers, with valuable corporate profiles and brands to protect, they are vulnerable to the views of their communities, the power of local and national media and the scrutiny of environmental groups.

Indeed environmental groups come just a small way behind the Board and the regulator in determining the water strategy of the UK's biggest companies.

However some CSR stances are not knee-jerk responses to external pressures but real signs of 'corporate conscience'.

For example 25% say that businesses could pay more attention to environmental issues, while 31% report that legislation is important and that companies are not doing enough to reduce their impact on the environment.

Many companies are putting their money where their mouth is - with environmental monitoring and assessment a key investment area.

The IWEX Report studied 108 companies, representing a mix of company sizes, and drawn from a range of industry sectors.

Although some welcome the way legislation has encouraged a conscience-driven rather than a cost-driven approach to water management - others do not.

Almost two thirds find the legislative load both expensive and time consuming and 44% feel there is simply too much legislation for them to cope with.

Indeed, only 62% of companies say they know all of the water-related legislation affecting them.

Even among the largest corporates, almost one in five are not sure if they are properly up to date with the latest rules and directives.

This situation isn't helped by the ad hoc methods companies appear to use to stay abreast of legislative developments.

For example while a third rely on trade magazines, only one in four are kept up to date by their water companies and very few look to consultants and equipment suppliers for the latest legislative news.

Another key reason why some companies feel overwhelmed and disconnected from latest legislation is because they feel unable to influence the legislative process.

Only one in ten of the companies studied for the IWEX Report are in direct contact with the legislators and even the largest of these feel they have limited input.

Overall, 43% of companies report that they have no influence over the legislators - this being the case for even a quarter of the biggest players.

That's why over half of those studied would like to be consulted more widely when new legislation is developed.

UK companies do not appear to want greater involvement so that they can stifle the introduction of new legislation.

Indeed many welcome its positive impact on environmental standards within their industry, and see it as a central plank in greater corporate social responsibility.

Instead, companies want more consultation, so that the practical implications of new regulations are fully thought through.

For instance 57% feel that the true cost to industry - in terms of time and money - of introducing new regulations is not fully taken into account.

Richard Hease, chairman of Turret Group said "This research provides invaluable insights for all of us.

The need for greater clarity and debate around legislation will obviously shape the conference programme for IWEX 2005, but it should also be a wake up signal for the many companies in the water sector trying to target UK manufacturers.

"Manufacturers need help navigating the legislative landscape and fulfilling their CSR obligations.

They want to reduce the impact of new regulations on their cost base but they also need ensure that they are adopting the best environmental practices.

This represents a real opportunity for the water companies, consultants and equipment suppliers who are trying to extend their businesses into these lucrative manufacturing sectors".

For a copy of The IWEX Report visit the show website at www.iwex.co.uk .

To find out about exhibiting at IWEX 2005 call Dan Ware on 01895 454448.

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