New environment tool for business should help grow firms appeal and profits

Small to medium sized businesses which use a new environmental management tool being launched by the Government this afternoon should grow market share.

The New Zealand Business Council for Sustainable Development says the new Envirostep online tool, which will help firms measure, manage and communicate their environmental performance, will be welcomed by busy SME managers – and their customers.

“This is a great initiative, along with the use of channels like Business New Zealand to get the tool in front of business owners,” Business Council Chief Executive Peter Neilson says.

Earlier national polling and focus group research conducted by the Business Council shows 32% of New Zealanders will switch to buying products from price-competitive firms doing the right thing for the environment and society.

“Small businesses owners also told us they were too busy getting their product out the door and dealing with the tax man. If they were going to do anything about being environmentally friendly the Government and customers would have to demand it – and it would need to be simple.

“This new tool takes that advice,” Mr Neilson says. “On top of customer preferences for environmentally friendly practices, which businesses using this tool can demonstrate, there’s also a trend to sustainable procurement in Government and by larger businesses.

“Increasingly, that means SMEs need to compete on the whole of life cost of their products and services, including environmental impacts. Billions in contracts will be increasingly affected by this,” Mr Neilson says.

Already nearly 75% of Business Council member companies – whose annual sales equate to about 43% of gross domestic product in dollars terms – are including, or planning to include, social and environmental criteria in supplier terms and conditions. Some 58% have already deselected suppliers for ethnical or environmental reasons. Sustainable procurement is also spreading through central and local government, and is delivering 8% to 50% efficiency improvements.

“The Ministry for Economic Development’s launch of this new tool is just what’s needed to help the vast SME sector quickly get to grips with - and profit from - better managing its environmental impact,” Mr Neilson says.

“It would help if Envirostep were now also heavily advertised and promoted so companies know about it – and consumers can tell which firms are doing their bit for the environment.”

Envirostep is at www.eco-verification.med.govt.nz/envirostep

The Business Council believes sustainable businesses are profitable, contribute to social progress and ecological balance – and protect New Zealand’s quality of life. The Business Council’s 64 members jointly employ more than 88,000 people in managing resources, manufacturing, retailing and the service sector. Members contribute annual sales of about $59 billion to the economy, equivalent to 43% of GDP. The Business Council runs a national online survey panel, ShapeNZ, to allow public input on major issues. The panel has more than 14,000 members, is built from purchased lists and is representative of the population as a whole, compared with the 2006 census. ShapeNZ members register and provide demographic and previous party vote information to ensure results can be accurately weighted to reflect the New Zealand population. A report is available here on ShapeNZ methodology. Registration is also available at www.shapenz.org.nz.