Creating a Sustainability Policy (UK)

Note: Want to skip the guide and go straight to the free templates? No problem - scroll to the bottom.
Also note: This is not legal advice.

Introduction

Creating a sustainability policy is essential for any business looking to stay competitive in today’s competitive markets. A sustainability policy outlines the principles and strategies a company will take to ensure their operations are conducted in an environmentally friendly and socially responsible manner, enabling firms to demonstrate their commitment to environmental stewardship whilst improving efficiency and public image.

The first step in creating a policy is to identify the company’s environmental objectives and the steps necessary to achieve them. It’s important that these objectives are set out clearly, with measurable targets; appropriate measures established; and both direct and indirect impact of operations on the environment taken into consideration - from manufacturing processes that have a direct effect on air quality, through to transport of products having an indirect influence. With these identified, the next step is drafting up a formal document outlining these points as well as other relevant legal requirements or performance targets, such as employee training initiatives or environmental reporting requirements.

Finally, companies should ensure this document is reviewed regularly with changes made in response to developments within industry or law – not only does it keep companies abreast of new opportunities but also helps maintain customer confidence.

For those lacking legal expertise when it comes assembling a sustainability policy for their organization, help is at hand from Genie AI with free templates available from our open source legal template library that can be tailored for each individual business situation. Our millions of data points teach our AI what makes up market-standard policies – meaning employers can access high-quality documents without having hire an expert – while our community template library provides users with useful advice when it comes constructing custom documents. Read on below for more information on step-by-step guidance on how you can access our template library today!

Definitions (feel free to skip)

Environmental Audit: An assessment of a company’s current operations, processes, products, and services, and how they contribute to environmental degradation.
Stakeholders: Individuals or groups that have an interest in the company’s sustainability efforts, such as employees, customers, suppliers, shareholders, and regulators.
Scope: The extent of the company’s sustainability efforts, including the company’s operations, products, and services, as well as any external activities such as supplier relationships or investments.
Metrics: Quantitative and qualitative measures used to track progress, such as carbon emissions, water consumption, and employee morale.
Regulatory Requirements: Laws related to the environment, labor, and the protection of human rights.

Contents

• Analyzing the company’s current environmental impact and setting goals
• Developing a policy framework that includes objectives, strategies, and action plans
• Identifying the key stakeholders and their interests
• Outlining the desired outcomes of the policy
• Defining the scope of the policy
• Establishing a timeline for implementation
• Establishing a timeline for implementing the policy
• Establishing a reporting system for tracking progress
• Identifying the metrics to be used
• Determining the frequency of reporting
• Setting up a process for collecting and analyzing data
• Establishing a system for monitoring, evaluating, and updating the policy
• Implementing a review process
• Identifying the criteria used for evaluating progress
• Establishing a system for revising the policy as needed
• Communicating the policy to employees and stakeholders
• Developing a communication plan
• Identifying the best channels for communication
• Identifying legal and regulatory requirements related to the policy
• Establishing a training and education program for employees
• Developing training materials
• Creating a system for tracking employee participation
• Establishing a system for providing ongoing training and updates
• Developing a system for responding to feedback and inquiries about the policy
• Establishing a system for recognizing progress and rewarding employees
• Identifying milestones and goals
• Establishing criteria for assessing progress
• Developing a rewards system

Get started

Analyzing the company’s current environmental impact and setting goals

• Identify key environmental issues that are relevant to your business, such as energy consumption, water usage, air emissions, waste management, and/or packaging
• Collect data on your current environmental performance from internal records, such as bills, reports and audits
• Analyze the collected data to identify areas for improvement and set targets for your company’s environmental performance
• Identify the resources and personnel needed to achieve the targets
• Once you have completed the analysis and set targets, you can move on to the next step - developing a policy framework
• How you’ll know when you can check this off your list and move on to the next step: Once you have set targets and identified the resources needed to achieve them.

Developing a policy framework that includes objectives, strategies, and action plans

• Outline the policy framework objectives:
• What the overall aims of the sustainability policy are
• What the company hopes to achieve
• Identify the strategies for implementing the sustainability policy:
• What measures need to be taken to ensure the policy is successfully implemented
• How the policy will be communicated to all relevant stakeholders
• Create an action plan for each strategy:
• What steps need to be taken to ensure the policy is effectively implemented
• Who is responsible for each step
• Review the policy framework:
• Does it accurately reflect the aims and objectives of the sustainability policy?
• Are all the stakeholders involved in the planning process?

When you have completed these steps, you can move on to the next step: Identifying the key stakeholders and their interests.

Identifying the key stakeholders and their interests

• Analyse the organisation and its operations to identify who are the key stakeholders, who will be impacted by the sustainability policy, and how
• Consider the interests of those stakeholders and how they may be affected
• Identify any relevant external stakeholders who may be affected by the implementation of the policy
• Consider the interests of external stakeholders and how they may be affected

You’ll know this step is complete when you have identified all of the key stakeholders, both internal and external, and have analysed their interests and how they may be affected by the sustainability policy.

Outlining the desired outcomes of the policy

• Collect feedback from key stakeholders to determine what they would like to see in the policy
• Consider the current state of the organisation and the environment, and decide what changes need to be made in order to become more sustainable
• Brainstorm potential goals and desired outcomes for the policy, such as reducing carbon emissions, increasing waste recycling, and reducing water usage
• Prioritise the goals and decide which ones should be implemented first
• When you have a clear list of desired outcomes, you can move on to the next step: defining the scope of the policy.

Defining the scope of the policy

• Determine the areas of your business that need to be covered by the policy
• Make a list of the objectives of the policy
• Consider the potential environmental impacts of activities performed by your business
• Define the key stakeholders who will be affected by the policy
• Consider any legal and regulatory requirements that need to be included
• Once you have a clear list of all the elements of the policy, you can start drafting it
• When you feel confident that the scope of the policy has been fully defined, you can move on to the next step: establishing a timeline for implementation.

Establishing a timeline for implementation

• Brainstorm potential dates or deadlines for when the policy should be implemented.
• Discuss and determine what is achievable and realistic with the team.
• Set a timeline for implementation and make sure everyone is on board and agrees to the timeline.
• Document the timeline so that everyone is aware of the deadlines.
• You can check this off your list when the timeline has been agreed upon and documented.

Establishing a timeline for implementing the policy

• Consider the timeline of your sustainability policy implementation and create a timeline for achieving each goal.
• Identify the key milestones for each goal and the timeline for achieving them.
• Consider any resources and budget needed to achieve each milestone and identify any potential risks or barriers that could impact the timeline.
• Assign responsibility for each goal and milestone to the relevant stakeholders.
• Document the timeline and communicate it to the relevant stakeholders.
• Review the timeline and adjust as needed, ensuring that all stakeholders are kept informed of any changes.
• When the timeline is in place, you can move on to the next step.

Establishing a reporting system for tracking progress

• Decide who will be responsible for tracking progress and reporting on the sustainability policy
• Establish a reporting system for collecting data and tracking progress
• Set clear goals and objectives that will be tracked
• Define key performance indicators (KPIs) to measure success
• Set up a system for reporting on progress at regular intervals
• When the reporting system is established, check it off your list and move on to the next step: Identifying the metrics to be used.

Identifying the metrics to be used

• Make a list of the metrics that you want to use to measure the effectiveness of your sustainability policy
• Consider environmental, social and economic metrics
• Identify metrics that are relevant to your company, sector and industry
• Choose metrics that are measurable and can be tracked over time
• Once you have identified the metrics that you want to use, you can check this off your list and move on to the next step of determining the frequency of reporting.

Determining the frequency of reporting

• Identify the expected frequency for reporting on the sustainability metrics.
• Decide whether this should be monthly, quarterly, or annually.
• Incorporate the reporting frequency into the sustainability policy.
• When finished, check off this step and move on to setting up a process for collecting and analyzing data.

Setting up a process for collecting and analyzing data

• Research the data points that should be included in the sustainability policy, such as energy consumption, waste production, water consumption, and resource use.
• Create a data collection and analysis system that includes a spreadsheet or database to track the data points included in the policy.
• Establish a protocol for collecting data from internal and external sources and ensure that the data is accurate and up-to-date.
• Analyze the data and create a report to review progress against the sustainability policy.

You can check this off your list when you have created the data collection and analysis system and established a protocol for collecting data.

Establishing a system for monitoring, evaluating, and updating the policy

• Identify a system to track progress against the policy
• Set up regular review meetings to discuss progress
• Document outcomes of the review meetings
• Ensure clear communication between stakeholders and policy owners
• Develop a timeline for policy updates
• Make sure the system is accessible to all stakeholders
• Document the process for updating the policy

When you have identified a system to track progress, set up regular review meetings, documented the outcomes, ensured clear communication between stakeholders, developed a timeline, made the system accessible, and documented the process for updating the policy, you can move on to the next step - implementing a review process.

Implementing a review process

• Schedule regular reviews of the policy, and determine how often they will be conducted (e.g. annually, bi-annually)
• Set up a process for collecting feedback from stakeholders and incorporating it into the review process
• Appoint a team or individual to be responsible for the review process and ensure that they have the necessary resources and time to execute it
• Establish a timeline for the review process and ensure that all deadlines are met
• Analyse the results of the review and make any necessary changes to the policy
• When the review process is complete, inform senior management and stakeholders of the results and any changes that have been made to the policy
• Once all of the above is done, you can check this off your list and move on to the next step of identifying the criteria used for evaluating progress.

Identifying the criteria used for evaluating progress

• Assess the current state of affairs in regards to sustainability
• Identify and prioritize the key areas of sustainability that need to be addressed
• Set measurable goals and objectives that will indicate progress in these areas
• Consider the criteria and metrics that will be used to evaluate how well the policy is being implemented
• Use available best practice guidelines to help set criteria and metrics
• Document the criteria and metrics that will be used to evaluate progress
• Check off this step when criteria and metrics have been identified and documented.

Establishing a system for revising the policy as needed

• Establish a timeline for reviewing and revising the policy, taking into account external factors (such as changes in legislation)
• Agree on the process for revising the policy, including who is responsible for making changes, and who else needs to be consulted
• Set up a system for monitoring the effectiveness of the policy and its performance over time
• Document details of the review and revision process
• When all of the above steps have been completed, you can move on to the next step of communicating the policy to employees and stakeholders.

Communicating the policy to employees and stakeholders

• Create a document summarizing the policy and its purpose
• Create a plan for communicating the policy to employees and stakeholders, including when and how it will be shared
• Draft a message to be shared along with the policy
• Determine which communication channels will be used to distribute the policy, such as email, intranet, or paper
• Send the policy and accompanying message to the appropriate employees and stakeholders
• Follow up with employees and stakeholders to ensure they understand the policy
• Monitor the response to the policy to identify any questions or concerns
• When all employees and stakeholders have been notified and understand the policy, you can move on to the next step.

Developing a communication plan

• Identify the key messages you wish to communicate across the organisation
• Decide who needs to be informed and how
• Develop a timeline for dissemination of the policy and supporting documents
• Determine which channels will be used for communication (e.g. intranet, email, meetings, etc.)
• Develop a plan for how the policy and supporting documents will be communicated
• Identify means of feedback and how it will be collected and analysed
• Create a communication plan document that outlines the steps and timeline for policy dissemination
• Review the plan with senior management and key stakeholders

When you can check this off your list and move on to the next step:

• When the communication plan has been reviewed and approved by senior management and key stakeholders.

Identifying the best channels for communication

• Identify which stakeholders should be informed about the sustainability policy.
• Figure out which communication channels are best suited for each stakeholder.
• For example, email and newsletters may be suitable for customers and suppliers, while social media may be suitable for staff.
• Consider the most effective way of reaching each stakeholder.
• When you have identified the most appropriate channels for communication, you can check this off your list and move on to the next step.

Identifying legal and regulatory requirements related to the policy

• Research relevant laws, regulations, and other legal requirements that will affect the policy
• Make sure the policy meets all of these requirements
• Take into account any new regulations or laws that will be implemented in the future
• Ask a legal professional to review the policy
• Once you are confident that the policy meets all legal and regulatory requirements, you can move on to the next step.

Establishing a training and education program for employees

• Determine who needs to be included in the training program
• Create the program’s objectives and goals
• Develop the training materials
• Schedule a timeline for implementation
• Choose an appropriate delivery method for the training materials
• Test the materials and make any necessary amendments
• Deliver the training program
• Monitor the effectiveness of the program

Once you have established the training and education program for employees, you can move on to the next step, which is developing training materials.

Developing training materials

• Determine the format of the training materials (e.g. online, paper-based, etc.)
• Research existing materials and develop content for the training
• Develop a timeline for the training materials
• Review and edit the training materials
• Have the materials approved by the appropriate stakeholders

Once the training materials have been approved, this step can be marked as complete and the next step of creating a system for tracking employee participation can begin.

Creating a system for tracking employee participation

• Create a spreadsheet or database for tracking employee participation in sustainability initiatives
• Develop a clear system for tracking employee participation, including what information to track, how to track it, and how often
• Include data on employee participation in sustainability initiatives, such as number of hours spent on initiatives and number of initiatives attended
• Determine how to measure success and set up a system for tracking and reporting progress
• When the system is complete and ready to use, you can check this step off your list and move on to the next step.

Establishing a system for providing ongoing training and updates

• Develop a plan for providing regular training and updates to all employees on the sustainability policy
• Incorporate training and updates into new hire onboarding and regular staff meetings
• Identify resources and materials (e.g., videos, articles, etc.) to use for training and updates
• Establish a system for tracking employee participation and understanding of the policy
• Track metrics to measure the effectiveness of the training and updates
• When you have established a system for providing ongoing training and updates, you can move on to the next step of developing a system for responding to feedback and inquiries about the policy.

Developing a system for responding to feedback and inquiries about the policy

• Establish a contact to respond to inquiries about the policy - this could be a single individual or a team.
• Set-up a designated email address for inquiries and feedback about the policy.
• Create a plan for how inquiries will be tracked and responded to in a timely manner.
• Develop a process for responding to inquiries in a consistent and professional manner.
• Establish a process for responding to and addressing any complaints about the sustainability policy.

Once these steps have been completed, you can move on to the next step of establishing a system for recognizing progress and rewarding employees.

Establishing a system for recognizing progress and rewarding employees

• Identify areas in your sustainability policy that are measurable and can be used to track progress.
• Establish a system for recognizing and rewarding employees for meeting or exceeding those goals.
• Create a system for recognizing individual and team achievements in sustainability.
• Set up methods for providing feedback to employees about their progress.
• Develop a system for rewarding employees with bonuses, promotions, and other incentives for meeting or exceeding sustainability goals.
• Monitor employee performance regularly and provide feedback on their progress.
• When all systems are in place and functioning, you can check off this step and move on to the next step.

Identifying milestones and goals

• Brainstorm ideas of what sustainable goals and milestones you would like to set
• Set a timeline for when the sustainability policy goals should be achieved
• Narrow down the goals to ensure they are achievable and realistic
• Identify the milestones to help measure progress towards the policy goals
• Document the milestones and goals in the sustainability policy
• Review the milestones and goals to ensure they are specific, measurable, and have a timeline
• When all milestones and goals have been identified and documented, the next step is to establish criteria for assessing progress.

Establishing criteria for assessing progress

• Review the milestones and goals you identified in the previous step and decide what criteria you will use to measure progress towards them
• Consider which metrics you will use to measure progress, such as energy consumption, water use, waste management or emissions
• Consider how often you should review the criteria and how often you should report on progress
• Create a plan for how to monitor progress and regularly report on it
• When you have established criteria that can be used to assess progress, you can move on to the next step of developing a rewards system.

Developing a rewards system

• Establish a rewards system that incentivizes sustainable practices.
• Set out criteria that must be achieved in order to receive rewards.
• Decide on the form of rewards – anything from monetary to symbolic.
• Make rewards accessible to all team members.
• Monitor the rewards system on a regular basis and adjust as necessary.
• Celebrate successes and make sure everyone is aware of them.

Once you have established a rewards system and identified criteria that must be achieved in order to receive rewards, you can check this off your list and move on to the next step.

FAQ:

Q: What are the differences between a sustainability policy in the UK, USA, and the EU?

Asked by Sarah on 10th January 2022.
A: When it comes to sustainability policies, there are some similarities and differences between the UK, USA, and the EU. For example, the UK has adopted a voluntary approach to sustainability policies, with businesses encouraged to develop their own policies for sustainability. While in the US, there is a more regulatory approach, with some states introducing legislation that requires businesses to have a sustainability policy. In the EU, there is a focus on environmental regulations and incentivizing businesses to engage in sustainable practices.

Q: Are there any specific industry or sector-specific considerations that should be taken into account while creating a sustainability policy in the UK?

Asked by Jack on 28th February 2022.
A: Yes, depending on your industry or sector there may be additional considerations that should be taken into account when creating a sustainability policy in the UK. For example, if you work in the technology sector you may need to consider issues such as data security, energy efficiency and responsible sourcing of materials. If you operate within the B2B sector you may need to consider how your suppliers’ sustainability practices will impact your own policy. It is important to assess your industry and sector and consider any specific requirements when creating your sustainability policy.

Q: Is it necessary for my business to have a sustainability policy?

Asked by Emily on 9th March 2022.
A: While it is not strictly necessary for all businesses to have a sustainability policy, having one can help to demonstrate commitment to environmental responsibility and social responsibility. Additionally, having a clear policy can help strengthen customer relationships and business partnerships as it demonstrates transparency around your approach to sustainability. Therefore, if you are looking for ways to differentiate your business from competitors then having a sustainability policy can be beneficial.

Q: How do I ensure that my sustainability policy is legally compliant?

Asked by Noah on 17th April 2022.
A: To ensure that your sustainability policy is legally compliant it is important to ensure that it adheres to any relevant legislation or regulations that apply to your business or industry. Additionally, it is important to ensure that any commitments made in the policy are achievable and realistic. If you are unsure of any specific legal requirements then it may be beneficial to consult with a lawyer or other professional who can advise you on best practice when creating your sustainability policy.

Q: Are there any other areas of consideration when creating a sustainability policy for my business?

Asked by Emma on 18th May 2022.
A: When creating a sustainability policy for your business it is important to consider all the areas of your operations that could have an impact on the environment or society. This could include areas such as energy use and emissions, waste management, responsible sourcing of materials, data security and human rights issues. Additionally, depending on the size of your business it may also be important for you to consider employee health and safety practices as well as any community engagement initiatives that you have in place.

Example dispute

Potential Lawsuits Referencing Sustainability Policies

• A plaintiff could raise a lawsuit against a company for failing to comply with a sustainability policy that has been previously agreed upon.
• This could be due to the company not properly following guidelines for reducing emissions, preserving natural resources, or for other environmental damages.
• The plaintiff can refer to the sustainability policy as part of the cause of action and can use it as evidence of how the company has failed to fulfill its obligations.
• Depending on the scope of the policy, the court could use the policy as the basis for their decision and award damages.
• In order to maximize the chance of winning, the plaintiff should be prepared to provide evidence of the company’s non-compliance with the sustainability policy and the impact to the environment.
• If there are financial losses, the plaintiff should provide documentation to show the amount of loss and how it has been calculated.
• The plaintiff should also be prepared to provide evidence of how the sustainability policy has been breached and how it could have been avoided if the company had followed the policy.
• If the defendant has a history of ignoring sustainability policies, the plaintiff can use this information as additional evidence to support their claims.
• If the court finds in favor of the plaintiff, damages may be awarded in the form of a settlement or a court-imposed penalty.
• In some cases, the court may also require the company to take steps to rectify the damage caused and follow the sustainability policy going forward.

Templates available (free to use)

Sustainability Policy

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