SCOTTISH COUNCIL FOR DEVELOPMENT AND INDUSTRY

TAKING IT ON – UK GOVERNMENT AND DEVOLVED ADMINISTRATIONS’ CONSULTATION ON DEVELOPING A UK-WIDE SUSTAINABLE DEVELOPMENT STRATEGY

Introduction

1.The Scottish Council for Development and Industry (SCDI) is an independent membership network, which strengthens Scotland’s competitiveness by influencing Government policies to encourage sustainable economic prosperity. Its membership includes businesses, trades union, local authorities, educational institutions, and the voluntary sector.

2.SCDI welcomes the opportunity to submit its views to the above consultation. SCDI has a strong interest in environmental issues generally, with renewable energy, energy efficiency, water environment, aquaculture and biodiversity having featured prominently in its recent policy work. In addition, many of the components of sustainable development in wider terms are part of sound business practice. A well-managed company uses resources – both people and material – efficiently. For example, an efficient manufacturing plant will have a significantly lower impact on the environment simply because pollution caused by wasting energy or raw materials also costs the business money. Looking beyond the actions of individual businesses, certain industries, such as tourism, increasingly depend on Scotland as a whole being seen as a “clean, green” country.

3.It is our view, therefore, that there is a great deal of congruence between sustainable development, properly understood, and sound business practice. This is evidenced by SCDI’sorganization of a series of events in conjunction with the Scottish Energy Efficiency Office and Envirowise detailing energy efficiency and waste minimization advice services to business.

4.In responding to the consultation paper SCDI has not attempted to provide comments on all questions put in the consultation paper. We offer instead answers to those specific questions which raise for us the key general considerations which we would wish taken into account.

Section 2. The Approach to a new strategy

Q1 What do you think of our approach to the content and structure of a new strategy?

5.SCDI recognises that recent legislation and changes to governmental structure mean a new strategy is required. We also consider that, as many of the issues that any strategy has to address have no intrinsic ‘borders’, it is appropriate that there is a UK wide integrated approach. We welcome the statement that “[i]n developing a revised strategy we need to respect and welcome the variety of different approaches that are already being taken across the UK”. We share the view, also reported in section 2.6 of the consultation document, that the key issue is proper implementation of any strategy. With this in mind, SCDI considers that any strategic framework, including any separate Scottish strategy, should be designed so as to allow implementation that is sensitive to the particular circumstances and needs of Scottish bodies contributing to economic development.

Section 3. What is sustainable development, and how do we do it?

Q2: Is an explanation of what sustainable development means based on the UK Government’s four objectives approach of the 1999 strategy useful?

Q3:What should be our vision of sustainable development for the UK?

6.While accepting that “sustainable development” is a notoriously difficult concept to define, SCDI believes that it should be seen as pro-development when that development delivers economic and social benefits while respecting the environment. SCDI therefore welcomes the explicit references to economic growth in the UK and Scottish definitions of sustainable development.

7.In articulating a vision of sustainable development for the UK, the value of business investment, enterprise and trading in creating the wealth with which to tackle the challenges of sustainable development needs to be respected. SCDI therefore thinks a definition of sustainable development based on the four UK objectives (i.e. social progress that meets the needs of everyone; effective protection of the environment; prudent use of natural resources; and maintenance of high and stable levels of economic growth and employment) and interpreted in the above light is useful.

Section 4. Setting priorities.

Q6.Are the four priority areas identified above the right ones for the UK as a whole to focus on over the next few years?

8.SCDI notes the four priority areas identified (climate change and energy; sustainable consumption, production and use of natural resources; environment and social justice; and helping communities to help themselves). Identifying climate change and energy as one of the four priority areas for action is particularly relevant to Scotland. Last year, the Scottish Executive announced an ambitious target to generate 40% of Scotland’s electricity from renewable energy sources by 2020. While exploiting Scotland’s abundant natural resources in this way will generate significant commercial opportunities for Scottish industry, and contribute towards achieving the UK’s stringent greenhouse gas emission targets, such a step-change in renewable generation will bring distinct challenges to Scotland. SCDI has offered advice to the Scottish Executive, UK Government and, most recently, the Scottish Parliament on energy policy issues.

9.SCDI’s view is that business, individuals and the public sector should all commit to energy efficiency and minimising resource use and, accordingly, we approve of the selection of sustainable consumption, production and use of natural resources.

10.We also approve of the other objectives. SCDI’s policy is strongly supportive of the Corporate Social Responsibility Agenda and we have been active in encouraging the private sector to implement these voluntary practices.

Q7.What issues do you think are important, or better dealt with, only within the separate UK Government, Scottish Executive, Welsh Assembly Government or Northern Ireland strategies, or at a regional or local level?

11.Although many of the issues are transnational, sustainable development policy should be implemented using the subsidiarity principle. Any ‘action plans’ should therefore be framed in ways that take account of local contexts and needs. It is also important that plans are vertically integrated so as to avoid duplication or imposing burdens that limit competitiveness, both in trade with the UK and globally.

Section 6.Sustainable consumption, production, and use of natural resources.

Q11.What steps do you think government, business and others should be taking to promote a more innovative competitive, resource-efficient, low-waste economy whilst also improving our environmental performance?

Q12.What steps do you think need to be taken by government, business and others over the short and long-term to help businesses make more sustainable products (ones that have reduced environmental and social impacts)?

12.Although recognising the strategic nature of this consultation document, one component area which is not mentioned is agriculture. SCDI would point to the value of the sustainability of farming businesses as a key area for consideration. Sourcing food from our own resources, rather than imposing food-miles costs on the environment, needs farming to be sustained. Properly managed agriculture can make a crucial contribution in areas including food production, biofuel production, biodiversity and tourism.

Section 12.The business contribution to sustainable development.

Q36.What more needs to be done to improve the business contribution to delivering sustainable development?

Q37.What actions should we take to support, enable or require a higher level of business contribution?

13.The rapid rise of the corporate social responsibility (CSR) agenda in the Scottish business community suggests that companies will increasingly take action that is seen as socially and environmentally “responsible”, if it is in the interests of the business to do so. The latter rider is crucial. Businesses that demonstrate a sustainable approach to their products, processes and local communities are likely to benefit from improved performance; better motivated and therefore more productive staff; more efficient resources leading to cost savings; and higher sales as a result of a better image/reputation. Equally, however, consumers tend to demand low cost products.

14.The key to ensuring an effective business contribution, therefore, is toensure that sustainable actions pay. Government can contribute to this by encouraging initiatives publicising the value of sustainable approaches to business. Government can also contribute by ensuring that where regulations and legislation are necessary to guarantee basic standards, such initiatives do not place Scottish or UK companies at a competitive disadvantage.

15.One of the key challenges in the management, research and development of our resources is to ensure that the advantages associated with the ‘clean and green’ marketplace perception of Scotlandare maintained. Beyond the minimum legislative standards, much of the marketing of Scotland’s industries – including food, drink and tourism – depends on the quality of both our natural and built environments. The story earlier this year about dubious US research into farmed salmon demonstrates the value of protecting the reputation of Scottish products.

16.The correlation between improved sustainability and the ability to increase prices and thereby add value to products remains complicated and must be market-driven. However, there is clearly a value in ensuring that any “hallmarks” (such as the labelling of farm assured products) that brand goods as sustainably produced are credible. This entails ensuring that any such hallmark needs to be awarded on the basis of a system that is rigorous and does not allow free-riding (e.g. misuse by companies or sectors not affected by, or complying with, appropriate legislative or market-driven sustainability standards). The complexities of modern chains of production mean that the establishment and maintenance of such a standard would be a considerable task. This is one area which SCDI would like to see considered at both an UK level and, in the Scottish context, by the Scottish Executive and Scottish Enterprise.

17.Finally, it is important that regulation should be undertaken in such a way that the costs associated with the regulating body’s activities are seen to be proportionate. Environmental bodies must not be seen as revenue raising organisations which are making money via environmental levies.

Daniel Kleinberg

Policy Analyst

Policy Unit

Scottish Council Development and Industry

July2004

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