BusinessGreen.com: You've just started as chief executive of
Park Royal, given your previous role as
head of CSR for Waitrose and John Lewis what steps do you plan to take to
improve the environmental sustainability of the industrial estate?
As home to 1,900 businesses and 40,000 employees in west London there
is major transport congestion so we are introducing orbital transport
infrastructure and a greener more efficient "fast bus". It will be available in
the next two years and run every ten minutes between Wembley and Acton.
Will the development harness renewable energy?
Yes. Currently the site produces 100,000 to 200,000 tons of mixed commercial
waste annually. We will use an anaerobic digester to process organic waste and
remove the air, producing approximately 30,000 cubic metres of methane a day,
based on 100,000 tons of waste produced a year. The methane will be used in a
CHP plant to produce electricity, which will be used on the estate for heating
and cooling. 118,000 litres of biodiesel will also be produced as a residual
product and will power vehicles on the estate. We're estimating a 30-month
construction phase, to be operational in three years. It will be a
cost-effective alternative to landfill and should save about a quarter of the
price of landfill when taxes are increased.
There is a sense that only larger firms can undertake such
initiatives. How do you plan to get many of the smaller businesses on the estate
involved with the changes?
SMEs shouldn't be overlooked. It's true businesses often need scale to make
these initiatives work, because large users of electricity get quicker returns
on invested capital if they invest in renewables and energy efficiency measures
while smaller firms can find such investments onerous and uneconomic. But we
have a business grant scheme in place and will also fund environmental audits
for energy efficiency, waste and water consumption at smaller firms. For these
firms small technical changes can deliver big environmental and economic
savings. Smaller firms also need to realise that the imminent Climate Bill will
give the government far reaching power to regulate small businesses carbon
emissions.
Do you have a park-wide target?
No, but it’s necessary for all businesses to be environmentally responsible,
especially with the Climate Bill which should provide the ability for SMEs to
work together to find ways to reduce emissions.
As ex-head of CSR for Waitrose and John Lewis, have you adapted any
previous green strategy for use in your new role?
There are over 250 food and drink companies in the park, the largest
concentration in London. They have to tackle the agenda as customers demand it.
There is a real drive from the consumer. Fair Trade purchases have risen from
£200m per year to £490m in the past year. The customer is willing to pay more
and suppliers need to demonstrate they are green; it's essential for their
business.
Do you envisage an economic downturn impacting green business
investments?
Yes, unfortunately it will mean less investment in greentech moving forward and
slow the progressive trend we've seen in the past few years.
What should the government do to encourage greener business
practices?
Businesses need long-term visibility on public policy so they are able
to make long-term decisions requiring capital investment. The Climate Bill will
be the first time the environment strategy will be mapped out over 40 years. We
also need cross-party consensus so if a company invests in new technology it
knows key components of environmental policy will not change a few years down
the line. Politicians should ensure companies have confidence to pursue green
agendas if they want businesses to help lead the way. Finally, with fiscal
incentives I believe the government should give back revenue generated through
the climate change levy and landfill tax and invest it in environmental
initiatives. The money should be recycled so businesses can invest in green
solutions where the differentials are reduced between the low cost option and
the environmentally sustainable option.
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