Businesses can qualify for discounts of up to 0.7p off each item on downstream access by complying with a variety of Royal Mail requirements.

Entry-level discounts of 0.3p on each item are available if companies conform to a series of standards, including using paper made from responsibly sourced materials, inclusion of the Waste and Resources Action Programme (WRAP) Recycle Now logo on mail, and from 1 February 2009, use of fully-recyclable envelope windows.

An additional 0.4p is available if businesses adhere to further standards that include using suppliers that have accredited environmental management systems and the use of water-based finishes at least 50% of the time.

Companies would also have to ensure that 95% of mailings are fully and accurately addressed with full postcode.

Stephen Agar, managing director of Royal Mail Wholesale, said the move "will encourage our wholesale customers to make the necessary changes to reduce the environmental impact of their direct mail campaigns".

He added that the initiative "demonstrated Royal Mail's commitment to support the advertising industry in creating more sustainable direct mail" and said the scheme would "dovetail with our customers' wider social responsibility initiatives".