Accreditations: Green blindness

Has the recession and proliferation of accredited firms led to the costs of eco-badges outweighing the benefits, asks <i>Helen Morris</i>


When times were good, the cost of attaining an environmental accreditation was never really an issue. Printers queued up to proudly stick the logos of accreditation bodies such as the FSC or PEFC on their websites and products. The thinking went that, by having a particular certification, they could stand out from the crowd, satisfy demand for green products and apply for tenders that had previously been out of reach.

However, when the recession hit, going green started to look like an unnecessary expense when the key issue for many was simply staying afloat. This contributed to a growing cynicism about what the accreditations actually brought to a business. Some of the printers that suffered in the hard times had gone out of their way to invest in putting green at the top of their business strategy. And it didn’t seem to have helped.

So now may be the tipping point for green accreditations. The associated costs and the benefits they bring are under more scrutiny than ever and the economic situation is often forcing buyers to choose between green and cheap. Increasingly, it seems cheap may be winning.

The figures for accreditation take-up suggest printers are taking notice. Take FSC: in 2008, approximately 250 UK printers were certified or re-certified to the standard. This dropped to 200 in 2009 and to just 110 certifications or re-certifications in 2010.

Things look slightly rosier over at PEFC – depending on how you look at the figures. PEFC UK communications director Hilary Khawam says a number of small printers that have gone out of business this year have dropped out of the programme, but she says new companies are still coming in to replace them. "Chain of custody numbers remain fairly steady around the 500 mark, which in the current challenging economic climate suggests demand for chain of custody certification is still on the rise," she says.

While the term "rise" may be down to how you regard the current market, Phillip Lawrence of Eco Logical Strategies agrees that demand for certifications has grown over the past 10 years. "It is not too difficult to find printing companies with half a dozen environmental certifications to their name," he says. "The question is, are they any more sustainable than a competitor with none?"

Lawrence is not convinced that any single green certification has made anything like the improvements to print companies’ sustainability that recent advances in manufacturing have. The question also has to be raised as to how far customers are actually asking for the accreditations.

For tender work, clearly not having any environmental qualifications puts you at a disadvantage, but a decent case study proving you are active in green processes can be as effective as a shiny branded green badge. For other work, some argue that any green arguments get lost in the price war.

Bryn Oakley, partner at Astra Printing, is one such person. He has seen several printers invest heavily in an attempt to be totally green and achieve as many accreditations as possible. At least two of those companies, he says, went into liquidation because the cost outweighed the benefits. "The companies were simply overqualified for the majority of their customers," he says. "The internet has caused a great deal of new competition, and as a result it is a price-driven market."

Astra Printing has decided on what it calls a "part-way fix". It uses only green inks and offers all grades on recycled and environmentally-friendly papers. It has also reduced the amount of alcohol it uses on its presses and disposes of waste efficiently. However, it is pragmatic in believing that the customers choose the most cost-effective alternative for their jobs, not necessarily the greenest.

Money well spent?
Others disagree, believing that, though accreditations can be expensive, they are still worth having. First Class Post, a £3m-turnover envelope printer, has FSC and PEFC accreditation and is currently in the process of achieving ISO 14001. Sales manager Andy Harrison admits costs can mount up. The initial accreditation for FSC and PEFC together carried a fee of £4,000, with an annual cost of £1,000 on top; ISO 14001 will be a further £3,000 – all taken from the bottom line.
Despite the expense, Harrison stresses the positive effect of demonstrating a company is taking responsibility and ensuring it purchases from sustainable sources outweighs any negatives. The trouble for smaller printers is that the negatives related to cost can be too much to bear. Environmental certifications are not just costly in terms of the initial sum of money that has to be stumped up. Green procedures have to be rigorously followed day to day, which can be time consuming and might require an increase either in staff numbers or overtime – taking yet more money from the bottom line.

It’s not surprising, then, that FSC and PEFC do seem to be more prominent in medium and large printers than smaller firms. But David Dawson, sales representative at paper merchant Rosefox Paper, believes those without accreditations may get left behind. "It wasn’t so much about affording to be certified, but whether we could afford not to be," he says.
However, Dawson believes the system of chain of custody in particular with mills is not the be all and end all. "I am not 100% in agreement with the chain of custody itself," he says. "If a stock has been produced by a recognised or certified manufacturer and it displays a label showing this accordingly, it should be valid as an environmentally sound stock. The fact a chain of custody needs to be evident does seem a little financially orientated."

Best practice
Those issuing accreditations and those using them would argue that the financial outlay pays for itself with increased business oppor-tunities and efficiencies from better working practice. Richard Bond, founder and managing director of commercial printer Making Impressions, says the incentives for ISO 14001 are clear. "Companies seem to be recognising that reducing outgoing costs is common sense and that an environmental management system will act as a framework for improvement," he says.

While he understands why some firms enquire about ISO 14001 and are deterred by the initial workload, he says the benefits justify the work and that eco-standards provide the structure for measuring and analysing performance and reducing costs. It is also key for winning business, he adds. "It’s a prerequisite on some tenders and increasingly an expectation for print buyers and designers."

Richard Watkins of EnviroSense agrees that, despite the costs, accreditations still have an important role to play in print. He identifies three reasons why businesses need to address green issues and certification: the attitudes of print buyers have changed, environmental issues have become part of normal business activity, and certification is now regarded as a means to reduce risk to a business.

On balance, then, it would seem that if you can afford to make the investment, it could prove a canny business decision. However, economic conditions are going to change again with the government’s latest round of cuts and some say that could change the attitudes of buyers.

Astra Printing’s Oakley says the cuts will have a "dramatic effect" on buying patterns. "The choice to print or not to print will be purely budget driven, and if that means taking a more conventional route, rather than green for green’s sake, that will be the route they will have to take," he says.

That is advice that could apply to printers themselves. It’s clear that, despite the costs, environmental accreditations can bring improvements to your business processes and attract new businesses. However, this has to be an affordable benefit. A realistic assessment of benefits over risk for those smaller printers who would be stretching themselves to attain the accreditations is essential. If you can afford it, do it, but if you can’t, then, as Oakley says, don’t go green for green’s sake, do what you can on your own and publicise that without having to pay for the badge.
EMAS: MAKING IMPRESSIONS
Hampshire-based B2 and B3 printer Making Impressions has taken a strong stance on the environment, not least with its latest venture - becoming successfully audited for the Eco-Management and Audit Scheme (EMAS) scheme. It is currently in the midst of getting the certification – once finalised, it will be one of just six printers in the UK to have done so. The company brought onboard David Shorto, who is also the print and paper buyer for Greenpeace, to help it through the accreditation process. He and managing director Richard Bond offer their advice on gaining the certification.
 
• Cost for consultancy fees and audit fees were less than £2,500 once funding assistance was allowed for. There is also an annual registration fee and there are annual fees to maintain EMAS
• The company expects to recoup this initial outlay through reduced outgoings and new business opportunities
• Client retention should not be underestimated even if it can’t be quantified. For example, Making Impressions won’t be losing any clients to companies of a higher green status
• The EMAS process for any firm with a well-run ISO 14001 and detailed performance information is relatively straightforward.
• EMAS is now the mechanism by which companies differentiate
• It’s important to emphasise that although it requires a certain foundation, EMAS is about honesty, credibility and transparency as well as environmental awareness and improvement
• In our EMAS Environmental Statement – which is externally verified and publicly available – we’ve chosen some specific targets for progress during 2011: increased recycling and reduced general waste and reduced gas, water and electricity use. Our progress will be externally verified and published in next year’s statement