Utilities
Introduction
The utilities sector services businesses and households daily through
providing water, sewage and waste services, electricity, and gas.
Over the past ten years, the utilities sector has undergone massive
change. Not only has there been a rise in the number of privatised
companies, but at the same time regulation and changing perceptions
of the role that utilities companies should play in society have
created new areas of risk and uncertainty for the industry. In a
recent report by the UK Social Investment Forum, three major risks
were highlighted – political, investment in infrastructure
and customer relations. The main driving factors behind the political
risks were environmental regulations and the consequent need for
increased investment to reduce environmental impacts.
Uses and Impacts on Biodiversity
Energy
Concern over the effects of fossil fuels on climate change is associated
with gas as a commodity used by households, and with electricity
in terms of power generation through burning oil, gas and coal.
A paper published on the Convention on Biological Diversity states:
“The livelihood of many indigenous and local communities,
in particular, will be adversely affected if climate and land-use
change lead to losses in biodiversity”
There are clear links between climate change and biodiversity.
As temperature changes, the environment which species exist in is
altered affecting individual animals and plants as well as the overall
habitats in which they exist. Some species move, others adapt while
others die out altogether.
Utility companies are likely to be directly affected by infrastructure
impacts caused by climate change and associated flooding; a stable
operating environment promoted through responsible corporate policies
therefore contributes both to financial and environmental sustainability.
Exploration and production of fossil fuels by oil & gas companies
has a direct impact on biodiversity at the point of extraction by
altering land areas, as well as the habitats and species that they
hold. The transport infrastructure required to move fuel around
as well as potential for damage through spillage or other accidents,
is also considerable. The location of renewable energy projects,
like wind farms and hydroelectric dams, can also impact biodiversity.
All companies providing products and services that the utilities
sector depends on should be encouraged in their environmental orientation
as part of a responsible supply chain management.
 Water,
from being sourced to being discarded, is affected by industry.
Many plants and animals are sensitive to changes in water temperature
and availability. Water is used as a coolant in the energy production
process. The process of combustion also generates waste such as
ash which has to be disposed of properly and can damage habitats
if not done properly. Water is also central to processes such as
hydro-electric plants and tidal or wave stations. Its responsible
management is very much an opportunity for utility companies to
contribute to.
In addition to the effects of generating or converting energy,
there are issues associated with transmitting electricity through
over-head or under-ground cables and in putting in place and maintaining
the infrastructure. Responsible companies demonstrate that they
manage operations in a way which aims to protect and enhance biodiversity.
Water
The management of water includes caring for ground water, managing
reservoirs, carrying out water treatment and delivering water to
end-users. Poor management of water resources can lead to water
shortages, abstraction of water from wilderness areas as well as
pollution. Throughout this process the water industry oversees substantial
areas of land around water sources which are valuable to biodiversity.
The EU
Water Framework Directive (2000) and Nitrate Directive (1991)
are both directly relevant to the water industry. The Water Framework
directive has given rise to other EU legislative moves, including
the Groundwater Directive (2003) which seeks to monitor and manage
groundwater pollution. Click here
to view the European Legislation page.
In England and Wales, a series of regulations have been put in
place in order to implement the EU Directives, more information
of which is available from DEFRA.
In Scotland, pollution control regimes and water regulations will
be updated through the Water Environment and Water Services Act
(2003), which is the enabling legislation for the Water Framework
Directive. The English equivalent establishes a source-to-sea planning
framework for river basin management designed to help reduce levels
of pollution, and protect habitats supporting Scotland's wildlife.
 What
you can do
The utilities sector is faced with many different pressures of
which environmental management is only one. In order to ensure that
biodiversity issues receive the attention and resources needed to
really make an impact, top level commitment should be expressed
through transparent policy implementation.
Utilities companies’ wide ranging and varied impacts on biodiversity
means that there are also many different ways in which they can
make positive contributions towards biodiversity. With such a wide
range of options, companies may find it useful to begin by evaluating
their impacts and prioritising those areas where their impacts on
and potential benefits for biodiversity are the greatest. A selection
of ways in which utilities companies are contributing to biodiversity
is outlined below.
Mainstreaming Biodiversity
In businesses as complex and diverse as utilities companies, mainstreaming
biodiversity into every day operations is perhaps the only way to
ensure that negative impacts are avoided and positive activities
encouraged. Mainstreaming means making biodiversity part of every
employee’s, contractor’s and supplier’s role.
A major step towards achieving this is integrating biodiversity
into a company’s management systems – such as environment,
health or safety. Targets are set, systems and processes defined
to meet the overall aims, indicators are defined to measure progress
towards the targets and progress is monitored and measured.
Part of integrating biodiversity into a company’s environmental
management system and overall operations will inevitably require
that all employees understand biodiversity, proper ways of dealing
with different situations where they may encounter wildlife on their
jobs as well as potential implications if policy is breached. While
training plays a vital role in raising employee awareness of specific
biodiversity related issues relevant to people’s jobs, clearly
defined procedures and systems can make carrying work out in a responsible
manner easier and more efficient.
Encouraging employees to take part in practical biodiversity work
is another way in which to raise awareness and enthusiasm about
biodiversity among employees. This can be through holding fun family
types of events on a site to carry out biodiversity work, through
supporting employees involvement in local community work or by sponsoring
staff to participate in projects. Some companies even second their
employees to go and work with a biodiversity conservation organisation,
potentially gaining new skills and knowledge for the company. Click
here to see the Employee Engagement
page.
Companies may benefit financially from a responsible and timely
approach to the Kyoto Protocol’s Clean Development Mechanism,
by contributing to positive projects, such as conserving biodiversity.
Further information and capacity building opportunities are available
through the UK government’s Climate
Change Projects Office
 Develop
a Site BAP
Site Biodiversity Action Plans
(BAPs), developed and implemented with local conservation organisations
and partnerships, help to identify key species and habitats, prioritise
action and manage biodiversity effectively. As Site BAPs normally
include specific targets, they are also valuable tools for tracking
and reporting progress on processes as well as on the ground biodiversity
outputs.
Support of local biodiversity partnerships and initiatives
Site specific initiatives normally need to be considered within
the wider context of the surrounding environment. One way in which
companies can do this is by becoming involved in the local biodiversity
partnership. This is a good way to learn about local and national
conservation priorities, network with other organisations, find
out about topical environmental issues and feed data back into the
overall UK BAP process.
Participating in biodiversity partnerships bridges an important
space between profit-making and environmental responsibility. A
business perspective can often add considerably expertise, insight
and enterprise into water management and biodiversity impact assessment
processes. Business involvement may contribute to increasing public
recognition of how to act responsibly.
Sponsorship is another way for companies to provide support to
conservation initiatives. For instance, npower, part of RWE Innogy,
has sponsored School Conservation Awards through the Yorkshire Wildlife
Trust. This support not only provides the receiving organization
with funds, but can also carry added benefits of being associated
with positive work conducted by the funded organisation, such as
networking or even positive publicity. Earthwatch
have a Corporate
Environmental Responsibility Group (CERG) which engages with
Business on biodiversity issues.
Renewable Energy
Renewable energy sources provide an effective alternative to the
use of fossil fuels as they do not generate greenhouse gases and
other pollutants during generation and the traffic requirements
are not as high. Additionally, solar and wind power reduce pressure
on land which traditionally arises from the need to source fossil
fuels.
The British government has set the target of 15% of all electricity
should be generated by renewable sources by 2015, subject to parliamentary
approval this will come into effect on 1 April 2005 as part of the
Renewables Obligation Order 2005. In 2000, the Utilities Act laid
out the regulatory framework for the development of the renewable
energy sector. Within this framework, in April 2002, the Renewable
Obligation was introduced, requiring suppliers to supply an annually
increasing minimum percentage of their supply from renewable sources,
10.4% by 2010/2011. Those suppliers that do not fulfill are required
to pay into a fund.
In the UK wind energy has been identified as a key technology to
reduce greenhouse gases. This does raise new concerns, particularly
with respect to the location of wind-farms and the flight paths
of wild birds. Wild birds habitats are protected under the Bird
Directive and it is important to consider the flight path as well
as ground use of these birds when planning wind farms. Other animals
may also be established in areas where wind farms are proposed and
their habitats should equally be protected both during the erection
of turbines as well as throughout the life of a wind farm.
Careful planning and site assessment should identify and enable
avoiding both direct and indirect impacts of wildlife during the
development and operational life of wind farms. As part of the operating
plan for a wind farm, a habitat management plan or Site BAP covering
the land under the wind-farm’s jurisdiction will help to manage
the site in away which can help enhance the biodiversity of an area.
 Benefits
By supporting biodiversity, utility companies can minimise their
environmental risk and the risk of adverse publicity. At the same
time, they can gain recognition from national government, regulators,
customers, employees and communities for their role as responsible
operators working towards sustainable development.
Through mainstreaming biodiversity into its activities, companies
can build their capacity to think ahead and reduce the risks of
failed planning applications, poor performance or of litigation.
Case Studies
Click here to see case
studies from the Utilities sector.
Resources
Department
of Trade and Industry (DTI) Energy Group: deals with a wide
range of energy related matters, from its production or generation
to its eventual supply to the customer.
Water UK:
represents UK water and wastewater service suppliers at national
and European level to work towards a sustainable future.
Scottish
Renewables Forum: forum for the Renewable Energy Industry, supporting
the development and provision of a sustainable energy future for
Scotland.
Royal Society
for Protection of Birds (RSPB): strive to protect wild birds
and their habitats; in doing so RSBP
Energy scheme in partnership with the Scottish and Southern
Energy Group provides a range of energy efficiency offers to help
reduce the amount of energy used.
Scottish
and Southern Energy (SSE) Group: the UK largest renewable generator;
manages a wide range of environmental issues.
Insight
Investment - Protecting shareholder and natural value: a report
of the results of benchmarking extractive and utility companies
on their management of biodiversity
Energy and Biodiversity
Initiative: A partnership of leading oil companies and conservation
organisations which produces practical guidelines, tools and models
to improve the environmental performance of energy operations, minimize
harm to biodiversity, and maximize opportunities for conservation
wherever oil and gas resources are developed.
Photo Credits: Peter Wakely/English Nature
Dr Brem, Montana sunset
Bruce Blecher, Sea otter
Philip Swann, Wildmill in Estonia
Santiago Ron, Treefrog
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