Why Environmental Compliance Matters to Your Business

On September 28, 2023, the EPA took a bold step, directing all EPA enforcement and compliance offices to tackle climate change head-on in every relevant matter. This strategy prioritizes actions to mitigate climate impacts, integrates climate adaptation into case conclusions and provides crucial technical assistance for climate solutions.

Climate change is a pressing global challenge with significant environmental, economic and public health impacts. The EPA's emphasis on climate change in its enforcement strategies highlights the urgent need to reduce emissions and enhance resilience. This proactive approach ensures businesses are accountable for their environmental footprint and support a sustainable future.

Companies are now required by law to take steps to mitigate their environmental impact. A complex network of legally binding environmental rules and regulations dictates what businesses can and cannot do. In 2022, court sentencing resulted in a total of 21 years incarceration for individual defendants in environmental violation cases, and $149,312,313 in fines and restitution costs.

Whether large construction firms, manufacturers, dry-cleaners or house painters, it is essential that all businesses are fully cognizant of what is required of them. Those that do not comply risk a lot more than just damage to their brand.

What Are the Risks of Non-Compliance?

The ramifications of non-compliance can extend far into the business, negatively impacting virtually every aspect of operations. You risk:

• Penalties/fines – if you are deemed criminally negligent, you risk serious financial or even criminal punishment depending on the severity of the breach. In 2021, a U.S. pipeline company was fined $15m and required to serve a three-year period of probation for breaching the Clean Water Act.

• Endangering people’s lives/safety – by infringing the rules, you risk putting your workforce or other communities in serious danger. This could easily result in additional penalties and legal action later down the line, even if it’s not apparent at the time.

• Reputational damage – news that a company is failing in its legal or moral duties to the environment can damage your brand irrevocably.

• Loss of sales – people generally do not want to buy from or trade with a company that is seen as negligent or irresponsible. Companies that do not comply often see a huge drop-off in sales. Further, many entities are banned from doing business with organizations with environmental or ethics issues.

• Environmental damage – the rules are in place for a reason. If you don’t abide by their guidance, you risk causing damage to the natural world.

While failure to adhere to environmental regulations can have serious repercussions, companies should see compliance as an opportunity rather than a burden . Compliance with environmental regulation offers a chance to shift the business onto a future footing, to better prepare it for the world of tomorrow.

How Compliance Helps Your Business

There are a host of advantages to maintaining and embedding environmental compliance at the heart of the business, such as:

• Improved public image – demonstrating responsible, sustainable and compliant behavior can greatly enhance your brand.

• Tax breaks – the adoption of various environmental practices or use of renewable energy sources often comes with tax breaks to participating companies.

• Streamlined operations – Adhering to regulations not only avoids legal penalties but also enhances operational efficiency and supports sustainable practices.

• Enhanced risk management – compliance is designed to be preventative. It is intended to address problems before they arise, preventing negative environmental impacts right off the bat. This can save huge costs (human, financial, environmental) associated with an incident.

• More partnership opportunities – some companies will not work with others that do not fulfill their environmental obligations. Failure to comply with required standards could mean your company loses out on valuable business connections and any merger or acquisition opportunities.

Nonetheless, maintaining environmental compliance can prove challenging. Regulations often vary by industry or from one jurisdiction to another. The task of navigating and managing the various documents, permits and records needed to ensure absolute compliance can seem like a minefield.

How Environmental Compliance Software Can Help

The range and scope of differing regulations can make it feel daunting for staff tasked with ensuring company compliance. Environmental compliance software helps by making the whole process easier and more coherent.

By collating and streamlining the various documents and requirements, the right software can take away the heavy lifting by:

• Navigating regional variation and network of regulations – environmental regulations can vary in scope and severity from one region to the next or between industries. Software with built-in compliance that can flag gaps when they occur will help staff understand and manage the different requirements.

• Streamlining documentation – the ability to store all data and documentation in one place makes it far easier to manage and monitor compliance.

• Providing visibility and real-time monitoring – the ability to keep a close eye on all aspects of environmental compliance and feed in real-time data ensures you spot any gaps as soon as they arise.

• Saving time – automated systems take the heavy lifting out of compliance by organizing all of your data and alerting you as and when action is needed.

• Benchmarking – having a community of users that share your industry, challenges and compliance needs will not only give you a toolbox of solutions, but also allow you to see case studies of how other companies have addressed the same problems and succeeded.

Regulations to protect the environment are becoming increasingly stringent and strictly enforced. Businesses that fail to live up to these standards risk facing severe penalties. It is up to businesses to find a way to tackle these requirements in a way that does not negatively impact their operations or their bottom line.

By choosing software that effectively trains your workforce in environmental compliance, you can enhance your team’s performance, streamline operations and protect the environment, all in full confidence that you’re playing by the rules all of the time.

Find out how Evotix’s solutions can drive environmental compliance in your business below!