How do environmental standards for businesses differ from those for individuals?

If you have never operated a business before, you may be unfamiliar with the ways in which the environmental obligations that apply differ from those that apply to your household. For anyone considering starting a business, these regulations are important to understand. This is especially vital if your business will deal with hazardous substances or harmful contaminants, and you may be surprised to learn that most businesses do. Everything from the by-products of certain manufacturing processes to the cleaning products typically used for industrial purposes can potentially constitute (or create) hazardous waste that must be controlled and disposed of carefully.

Some of the specific areas that businesses should be aware of include:

Environmental permits and licences

Homeowners do not require environmental permits for day-to-day living. However, they may need permission for specific activities, such as installing a septic tank or conducting large-scale renovations. By contrast, many commercial operations, especially those in the manufacturing, waste management and energy sectors, must obtain specific environmental permits or licences to carry out their operations. These permits enable and regulate specific activities - such as the discharge of treated wastewater into natural groundwater or surface waters - with restrictions on emissions, waste disposal, water usage and other environmental impacts. Non-compliance can result in significant fines or even the closure of operations.

Solid waste management

Households in the UK are generally required to separate recyclable materials from general waste and may need to follow local council guidelines for waste disposal. Additional regulations apply to properties that are not connected to public sewage works, as they will be responsible for maintaining a septic tank and minimising any environmental risks posed by leaks or overflows of hazardous waste. There are also strict prohibitions on fly tipping or other environmentally unfriendly waste disposal approaches. 

However, under the Environmental Protection Act 1990, businesses have a much stricter duty of care to manage waste responsibly. This includes correctly segregating, storing and disposing of waste, ensuring that it is handled by a licensed waste carrier and keeping a detailed record (a waste transfer note in each case) for at least two years. Companies involved in producing hazardous waste have even stricter obligations.

Carbon emissions and energy use

Companies, particularly larger ones, may be subject to mandatory carbon reporting under schemes like the Streamlined Energy and Carbon Reporting, the Energy Savings Opportunity Scheme and the UK Emissions Trading Scheme. They must measure and report their carbon emissions, and often reduce them based on these measurements. Energy efficiency regulations related to these schemes may also require regular energy audits and the implementation of efficiency measures.

Businesses above a certain size or those in specific industries may also need to produce sustainability reports, which cover their environmental impact and efforts to reduce their environmental footprints. Companies may need to report on resource use, waste, emissions and other activities. Working with environmentally compliant third parties to handle waste water and solid waste disposal is one way to reduce environmental impact and improve sustainability.

No such restrictions apply to households. While British people are encouraged to reduce household energy consumption and carbon emissions, (and can take advantage of grants for insulation or renewable energy installations to do so), there is no mandatory carbon reporting or auditing required for individual homeowners.

Pollution control

Companies are strictly regulated in their management of pollution, including air, water and noise pollution. They must adhere to various regulations, such as the Clean Air Act, Water Resources Act and Control of Pollution Act. Failure to comply can lead to penalties, including fines and legal action. Homeowners must ensure that they do not cause significant pollution, such as by improperly disposing of hazardous materials or causing noise disturbances, but the scope of regulation and enforcement is much narrower than businesses must face.

Water usage and management

There are no licences needed for homeowners to use water from their mains supply, and correct disposal of waste water is the responsibility of local water companies. Household drains are generally connected to sewers and carry foul water away to sewage treatment plants, while outdoor surface water drains may carry water directly back into the environment without further treatment. Homeowners should take care not to flush wet wipes, sanitary products or other materials into their drains, as this can lead to blockages, but it is uncommon that enforcement action is taken against any individual households or residents responsible.

However, businesses typically generate much more wastewater than homes, especially those in industries such as agriculture, manufacturing and food processing. These organisations must carefully manage their water usage and may require licences for abstraction or discharges. They are also responsible for ensuring that any discharges into watercourses meet specific quality standards. This means that, before discharging wastewater into surface waters or groundwater, businesses may need to treat it to remove harmful and hazardous substances. This involves a physical, chemical or biological treatment process to achieve the relevant standards for the treatment of effluent..

Companies that discharge wastewater directly into the public sewer system may need to obtain a trade effluent consent or agreement from their local water company. Trade effluent refers to any liquid waste other than domestic sewage, including waste from industrial processes, cooling water and contaminated run-off. The consent specifies the types of effluent that can be discharged, the acceptable limits of pollutants and the conditions under which discharges can occur. Non-compliance with any of these rules can result in fines, legal action or the requirement to cease discharges until the issue is rectified. 

Universal Tankers specialises in commercial waste disposal, biological treatment and disposal in compliance with the relevant environmental regulations. If your business activities involve hazardous substances or produce a significant amount of wastewater and you need support to manage this in an environmentally sound way, contact the team at Universal Tankers.

Product responsibility and packaging

Manufacturers and retailers are subject to regulations on the environmental impact of products and packaging. This includes compliance with the Waste Electrical and Electronic Equipment Regulations, the Producer Responsibility Obligations (Packaging Waste) Regulations and others aimed at minimising waste and promoting recycling. This requirement is not relevant to homeowners, but is something to consider if you are starting a business that will produce physical products.