Why conserving the environment is good business practice

Businesses have a duty to protect the environment as espoused under the Constitution of Kenya and the Environment Management and Coordination Act.

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The right to a clean and healthy environment is provided for in Article 42 of the Constitution. However, despite this provision, a lot of environmental degradation and pollution is frequently done by businesses.

Such businesses face a high risk in this age of environmental consciousness. Not only is there a risk arising from regulatory fines, but also from legal action.

Class action suits are common in cases of environmental degradation, especially where it causes physical harm. Class action suits can cost businesses a lot in terms of legal awards.

One of the largest awards made in history was $20 billion that was paid by a corporation in an oil spillage and environmental degradation lawsuit.

Climatic change and environmental preservation are some of the leading global issues today. Many investors are environmentally conscious, and many companies are going green in adopting environmentally friendly practices.

In this dispensation, the corporate world's role in environmental protection comes into play, first as a duty and secondly, as a marketing and branding tool.

Businesses have a duty to protect the environment as espoused under the Constitution of Kenya and the Environment Management and Coordination Act.

Below are ways businesses can uphold Article 42.

Avoid environmental pollution

An environmental audit can assist a business assess its practices so as to weed out practices that pollute the environment. Businesses that pollute the environment face bad publicity and expose themselves to unnecessary risks.

Adopt environmentally friendly practices

An environmental expert can assist your business with recommendations on how to adopt suitable practices. These practices can be as simple as “going paperless” to more complex practices like going green.

A lot of businesses are adopting eco-friendly practices in what is known as “going green.” Some examples are the use of solar energy and recycling of waste. An expert should guide you on how to adopt better practices.

Adopt environmental conservation as part of CSR

It could be as simple as participating in a clean-up exercise or planting trees to more complex CSR like funding environmentally-friendly projects.

Have in place an environmental policy

It is important for every business to have in place an environmental policy. Not only does the policy set out the businesses ‘role and objectives in upholding Article 42, but it also provides guidance.

A policy document ought to set out the objectives and goals from the business perspective. It also ought to have the scope of the policy.

The policy ought to set out the roles and responsibilities of different personnel in environmental conservation. Organisational policies vary depending on the sector and type of business.

There is no one-size-fits-all, meaning that businesses have authors ‘freedom to be creative and include what is important to them.

Taking the example of a legal services business, it could as part of its CSR policy provide pro bono legal services in environmental law cases and advisories.

Upholding Article 42 pays off in the long run. Not only does it minimise risk, but it may also attract suitable partners like investors to your business. Green investors are investors who will only invest in environmentally friendly businesses.

Ms Mputhia is the founder of C Mputhia Advocates. Email: [email protected]

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