News & Views From the Front Line
Monday, 22 February 2010
The True Cost of non-Compliance
I've long written, lectured and broadcast about the true cost of waste. Most businesses simply measure the cost of disposal, but to have something to throw away, you first need to have bought it, processed it and segregated it from non-waste - all of which costs. If it is waste product then you also need to factor in the cost of disruption to the production system to fulfill orders and the opportunity cost of not being able to sell it (or the cost of producing a replacement).
There are similar hidden costs to non-compliance with environmental legislation. The full cost can consist of many or all of:
1. Fines - for some companies these can go into 8 figures;
2. Remediation costs - then BP polluted groundwater in Leagrave, the remediation cost 40 times more than the fine;
3. PR/Brand damage - Union Carbide never recovered from the Bhopal disaster and DOW who bought the flailing company out still attracts flack from activists.
4. Disruption to business - Sony had a shipment of Playstations impounded by the Dutch authorities for having too high a level of cadmium. The resulting disruption has been estimated to be between $90-160m.
So, while I'm always urging clients to go way beyond compliance (which reduces the risk of non-compliance by removing hazards at source), I still emphasise - you'd better make sure you stay compliant too.
Labels: beyond compliance, legislation, risk
# posted by Gareth Kane : 09:26
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Friday, 23 October 2009
The risk of oil price rises
Very interesting
speech this week by John B Hess of oil exploration company Hess Corporation at the somewhat unsubtly titled "Oil and Money" conference in London. He caught the attention of the audience by declaring "The price of $140 per barrel oil was not an aberration; it was a warning." He went on to say that demand was outstripping supply and while production had either peaked or plateau'd ouside OPEC, it was still unlikely that we would hit a target of keeping global warming below 2°C while oil prices soar. Bleak indeed.
The oil price risk is one I communicate to my clients - if if you can handle current energy prices - what happens if they soar? Oil going above $100 a barrel was unthinkable a few years ago, but it went way over in the spring of 2008 and appears to be on its way back. This is a serious risk for many businesses and organisations - are you ready for it? Resilience is a term I'm pinching from the
Transition movement - is your organisation resilient to the risks ahead?
Labels: oil prices, peak oil, risk
# posted by Gareth Kane : 09:14
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Monday, 12 May 2008
Weekly Tip #14: Down the drain...
This is the fourteenth in a series of tips extracted from the forthcoming Green Business Bible e-book:To avoid the risk of pollution incidences, map and understand your on-site drainage. Make sure all drains are colour coded: blue for surface water and red for the sewer is a standard approach;
Another tip next Monday!
Labels: drains, risk, tips, water pollution
# posted by Gareth Kane : 08:30
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