Corporate environmental responsibility

About CSR

Guidelines and initiatives

Tools

 

The Government views the participation of the private sector as crucial in addressing the challenges relating to climate change, the loss of biodiversity, and releases of hazardous substances.

Companies that manage to stay at the forefront of innovation and environmentally sound resource use can gain comparative advantages, both in financial terms and in relation to markets. The focus of corporate environmental responsibility has shifted from avoiding damage to the environment to integrating environmental concerns and resource use into systems for managing companies’ products, finances and reputation.

Under international agreements that have been implemented in national legislation, the private sector must comply with a number of requirements designed to limit the adverse environmental impacts of its operations. Multilateral environmental agreements are incorporated into national legislation on an ongoing basis, and thus form part of the existing legislation that companies must comply with in countries that are parties to these agreements.

In addition to the ongoing development of national and international environmental standards for the private sector, companies should take a proactive approach in order to reduce the adverse environmental impacts of their operations beyond what is stipulated in such standards. By being at the forefront of developments in this area, companies can achieve lower costs, an improved strategic starting point for their long-term operations, and new market opportunities. The private sector should therefore have considerable self-interest in integrating an environmental perspective more fully into its activities. The private sector can help to mitigate environmental problems by making its own operations more environmentally friendly and by making efficient use of resources.  

Companies can play a part by developing innovative processes or technology designed to minimise the use of scarce resources and reduce harmful emissions. Companies can also develop new, greener products and services to replace existing ones. They can make an important contribution by collaborating with their supply chains and requiring their partners to meet high environmental standards. The most advanced companies now carry out life cycle analyses for their products, and are introducing routines that include requirements for their subcontractors.

Climate change is creating new challenges, for example relating to energy use and production processes. The private sector has a role to play in finding solutions by developing new technology and by using the best available techniques. It is important to raise companies’ awareness of their direct and indirect impacts on the climate, and what steps they can take to minimise these impacts.