Ex-Waitrose CSR boss to lead green overhaul of Europe's largest industrial estate

Nick Monger-Godfrey, new chief executive of Park Royal Partnership, reveals his plans for new transport links and onsite energy for London business estate

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.