Shepherd and Wedderburn LLP
  July 1, 2005 - Scotland

Time To Turn Grey Matter To Green Issues
  by Catherine Tracey

Do environmental considerations feature in your business plans? If not, then perhaps it is time they did. Minimising waste, reducing energy consumption and decreasing the environmental impact is not just good for the planet but can lead to increased profits. That is the message from the Scottish Executive in its paper 'Going for green growth: a green jobs strategy for Scotland'. This paper, which is the latest in a series of environmental papers published by the Scottish Executive, identifies resource efficiency, and new environmental business opportunities as key to Scotland's future economic success. With an estimated £1 billion squandered each year through wasted energy, it is an issue which cannot be ignored. Resource efficiency is the first issue to merit coverage in the paper. The Scottish Executive advocates smarter use of resources such as water, energy, solid waste or raw materials. It advises that smarter resource use leads to increased competitiveness, job security and job creation. While the Scottish Executive concedes that the benefits of resource efficiency are not always immediately evident, and that businesses can therefore be reluctant to make an initial time and financial investment, it does stress that the long-term financial gains are, more often that not, worthwhile. It encourages businesses to make that initial investment, and to take the first step on the road to better resource efficiency and financial prosperity. The next issue covered in the paper is that of environmental business opportunities. The Executive states that these opportunities may result from the expansion or diversification of existing businesses into new 'green' areas. For instance, energy companies are now branching out into the renewables markets and manufacturing companies often have a recycling arm. However the Scottish Executive also advises that entirely new business opportunities may also emerge from this new 'green' market. Organic farming, eco-tourism, carbon sequestration and energy audits, once the preserve of a small minority of individuals, are all now firmly ensconced in the marketplace. Scottish businesses are encouraged to see these new opportunities, and to seize them where possible. On the back of these environmental pillars of resource efficiency, and new business opportunities, the Executive then sets out ways in which businesses can realise their full economic potential. For instance, businesses are encouraged to seek specialist advice and support from bodies such as Scottish Enterprise and Highlands and Islands Enterprise. These bodies are identified as being able to help businesses harness their environmental potential. More specifically, the paper is also accompanied by an implementation plan - a 'live' document that details a list of environmental commitments, such as a commitment to carry out a Strategic Environmental Assessment of the Scottish coastline to assist developers in identifying the best wave sites for tidal devices. The message from the Scottish Executive is loud and clear. Sustainable development and economic growth are not mutually exclusive concepts. Instead, they go hand in hand in creating new and varied opportunities for Scottish businesses.


Footnotes:
Catherine Tracey is a solicitor specialising in public law with commercial law firm Shepherd+ Wedderburn
+44 (0)131 473 5474