Archived press release

Business Still Failing the Environment

27 July 2004

Friends of the Earth welcomed Environment Agency calls for tougher fines on businesses that breach environmental regulations, issued in the annual Spotlight on Business and Environmental Performance report published today (Tuesday 27^th), but said Government must go further by putting tougher social and environmental duties on company directors.

The report, which summarises fines and prosecutions brought against companies that have committed environmental offences in England and Wales, showed that the average fine imposed on companies for breaching environmental regulations was down from an average 8, 622 to 8,412. EA Chief Executive Barbara Young called for stronger penalties to reflect the damage done to the environment, including payment to repair any damage caused and compensation for communities affected.

The report also shows that greenhouse gas emissions from regulated industry have increased by five per cent, further reinforcing fears that the Government will not meets its targets of a 20 per cent cut in emissions on 1990 levels by 2010.

The report highlights farming, waste and water as having the highest potential impact on the environment, with the highest fines this year imposed on the waste sector and on water companies. Some 266 companies were prosecuted overall and 11 company directors were convicted for environmental crimes.

Friends of the Earth's Corporate Campaigner Brian Shaad said:

"This report shows that business is still not taking its environmental responsibilities seriously enough. Too many companies are repeatedly breaching environmental regulations - and with such low fines, it is no wonder. Paying the fine often costs business less than preventing the problem. We want to see tougher penalties for companies,but we also need new laws that impose environmental and social duties on directors. This would create a business environment in which companies would consider the real impacts of what they do."

Friends of the Earth believes the report clearly shows the case for mandatory social and environmental reporting - which both business and the Government currently insist should remain voluntary. The Government is currently consulting on Operating and Financial Review (OFR) which makes disclosure of environmental performance optional and at the discretion of company directors. But the Spotlight report highlights the need to include the environment as a mandatory consideration for company directors. It also calls on the Government to consider using for other types of company. Under the cOFRsurrent proposals an OFR will only be required for publicly listed UK companies. Of the over 80 companies cited in this year's report only six are publicly listed.

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Published by Friends of the Earth Trust