02/02/2020 1 Environmental law update Spring 2015 John

02/02/2020 1 Environmental law update Spring 2015 John

02/02/2020 1 Environmental law update Spring 2015 John Mitchell, Partner, Regulator Risk & Compliance 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 noncompliant 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 EPC lodgements DCLG research Type Category 2008 2014

Direction Non-domestic A 0.6% 1.8% Non-domestic B

11.7% 8.5% Non-domestic C&D 59.4% 57.1%

Non-domestic E 15.4% 16.0% Non-domestic F&G 13.0%

16.4% Domestic A 0% 0.18% Domestic

B 2.2% 7.7% Domestic C&D 58.3% 60.9%

Domestic E 27.9% 17.2% Domestic F&G

11.6% 6.4% 02/02/2020 4 Plastic bag tax 2013: government consults on biodegradable bag exemption Jan 2014: government announces exemption will be included in legislation

4 Jun 2014: Queens 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 02/02/2020 5 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 02/02/2020 6 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 02/02/2020 7 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 02/02/2020 8 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 02/02/2020 9 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 02/02/2020 10 Environmental law update Spring 2015 John Mitchell, Partner, Regulator Risk & Compliance Responsible Management The Importance of Corporate Social Responsibility 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 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 Will Hughes

Neal Allison Business Excellence Director Community Investment Manager 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 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 staffs 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 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) Businesses and CSR (people planet

profit) Royal Bank of Scotland 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. For us, CSR lies mainly with Community Investment initiatives What is the Value of CSR? 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 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 clients service provider to help them achieve these obligations by giving more back to local communities and customers. Value in Staff Engagement Millennials or Gen Ys will now begin have CSR embedded in their view of business

Gen Zs 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! Alignment and Engagement David MacLeod OBE Value in Employment Simon Evans

Will McInally Joined through ready Met Will through working to work scheme 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 with LDX (Learning Disability Experience) at You can find perfect candidates and have the chance to work with them first by offering work experience placements. a community initiative

Completed a two week unpaid work experience placement Now has a full time contract with us as a Site Operative Reputational Value Brand Credibility For us, approachable and friendly

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 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 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 SoHow do we do it? 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 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 Set targets (soft), budget and resources X successes in the year Recognition in the press X staff hours used 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 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? 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 In the last 12 months 273, 274 added value provided

2000 staff hours devoted to community initiatives 22 work experience placements completed/ ongoing 21 Apprentices employed in trades and admin 70 community initiatives supported 4400 people engaged through community

events What have we been doing (successes)? Bottle Greenhouse with special needs school Mock Interviews with schools and homeless centre Supported community and tenant ran events such as Party in the Park Donated clothes and cooked breakfast for homeless and

vulnerably housed people Supported Business Education Partnership events such as science teambuilding days and Dragons Den events Refurbished play train and donated to school Refurbished and odd jobs to community centres and elderly homes

Provided work experience placements for 22 young people Gardening initiatives with sheltered housing Worked with local community schemes centre to tackle anti social Resident forums and behaviour conferences Charity Abseil And thats only some of it

Actions not words 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 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.

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