Newsletter No. 170
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FreePint
"Helping 70,000 people use the Web for their work"
http://www.freepint.com/
ISSN 1460-7239 28th October 2004 No.170
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IN THIS ISSUE
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EDITORIAL
MY FAVOURITE TIPPLES
By John Gabree
FREEPINT BAR
In Association with Factiva
a Dow Jones & Reuters Company
JOBS
Senior Researcher, Capital Markets
Senior Sector Information Specialist
Freelance IT Trainers
TIPS ARTICLE
"European Industrial Relations Sources"
By Kay Renfrew
BOOKSHELF
"Assessing competitive intelligence software:
a guide to evaluating CI software"
Written by France Bouthillier and Kathleen Shearer
Reviewed by Derek Stephens
FEATURE ARTICLE
"How European companies can turn the challenge of environmental
regulation into profit"
By Nick Paget-Brown
EVENTS, GOLD AND FORTHCOMING ARTICLES
CONTACT INFORMATION
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>>Online Information Exhibition FREE visitor pre-registration<<
30 Nov - 2 Dec 2004, Olympia, London, UK
The world's no. 1 event for information content and information
management solutions - over 250 exhibitors, case-studies, independent
masterclasses, networking events, careers talks and panel debates.
<http://www.online-information.co.uk>
Early Bird Discounts end on Tuesday 2 November!
<http://www.online-information.co.uk/ol04/conf_prog/conf_prog.html>
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*** New: VIP compares Dialog NewsRoom to Factiva and LexisNexis ***
Following last month's Factiva / LexisNexis comparative
review, the current VIP compares them both with Dialog:
<http://www.vivavip.com/>
"... has set the marker for excellence in
product reviews for the information industry"
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EDITORIAL
You can't miss how everything at the moment seems to require a vote.
Whether it's who should go through to the next round of the latest
pop-celebrity-singing-dancing-quiz, or whether it's about more serious
topics like who should be included as a commissioner by the incoming
President of the European Commission. It's a topical debate, since
both articles in today's FreePint cover European issues. And, yes, we
are aware that there's another big vote taking place across the pond,
but, unlike most other media, we're not commenting on that.
I suppose it's only right that everyone should have their say - be it
by phone, text, email, post - but I certainly don't like the way that
newsreaders now read out text messages as if they are informed comment
on a current debate. A London news channel has also just started
asking people with camera-phones to register as 'eye witnesses', to be
dispatched to events as they're happening. I look forward to seeing
low-quality photos and movie clips whilst being read low-value text
messages. I don't consider this journalism. What do you think? Text
your comments to me and I'll include them in the next issue.
The UK's Chartered Institute of Library and Information Professionals
(CILIP) <http://www.cilip.org.uk> has gone to a postal vote after last
week's AGM about proposals for new flat-rate membership fees. I'm
pleased about this and think it's the right thing to do. If you're a
CILIP member, then make sure you cast your vote. After the way their
name-change was handled, the SLA <http://www.sla.org> could learn a
few things about how to ask their members what they want.
We're looking forward to talking to FreePinters at this year's Online
Information show in London, UK, which is coming up at the end of
November. If you haven't booked your place at the conference, or
ordered your free exhibition ticket yet, then make sure you do so at
<http://www.online-information.co.uk>.
VIP <http://www.vivaVIP.com/> has just published its review of Dialog
NewsRoom, which it compares with Factiva and LexisNexis. Last month's
comparative review of these two products was hugely popular, and VIP's
Editor Pam Foster will be with us at Online Information for you to
give her your feedback about her sterling work.
Finally, congratulations to Annabel Colley on the birth of her baby
girl last week. We're all delighted for her, and if you want to send
wishes then address them to <annabel.colley@freepint.com> and we'll
make sure Annabel receives them.
So, we too are trying to provide plenty of opportunities for you to
give your feedback to FreePint, both virtually and face-to-face.
Remember, if you're an eye witness to anything that's happening in the
information world then make sure you capture it on your camera-phone
and send it in.
William Hann
Managing Editor, FreePint
<william.hann@freepint.com>
FreePint is a Registered Trademark of Free Pint Limited (R) 1997-2004
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Introducing MINT - a fresh approach to company information
from Bureau van Dijk Electronic Publishing
To register for a FREE trial visit <http://www.mintbusinessinfo.com>
Companies, news, industry research and directors in a single
easy to use information database for research,
sales, marketing and business development professionals.
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MY FAVOURITE TIPPLES
By John Gabree
* All Music Guide (AMG) <http://www.allmusic.com/> is the source I
turn to for reviews and profiles for every genre of non-classical
music. AMG lets you search by group, song or album.
* Largehearted Boy <http://blog.largeheartedboy.com/> is a
surprisingly fertile place to find new free music and links to the
latest reviews and commentary.
* When I need an infusion of politics but I want to stay upbeat, I
download broadcasts from Air America
<http://www.airamericaradio.com/>, the politics, comedy and talk
network started by Al Franken.
* Backflip <http://www.backflip.com/> is an online bookmarking site.
Since I travel a lot, I find it invaluable to have all my bookmarks
available wherever I go!
* And while travelling, I find the World's Best Bars
<http://www.worldsbestbars.com/> more than a little useful,
especially in particularly alien environments.
Writer and SEO consultant John Gabree's thoughts about culture and
politics appear on Impractical Proposals
<http://www.ImpracticalProposals.com/>. He recently introduced
eGlossary <http://www.eGlossary.com/> and LOL: Library of Links
<http://libraryoflinks.blogspot.com>.
Submit your top five favourite Web sites. See the guidelines at
<http://www.freepint.com/author.htm>.
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Webinar featuring Mary Ellen Bates on 9th November 2004
Register at <http://www.factiva.com/webinar/learning/>
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*** Willco, VIP and ResourceShelf at Online Information ***
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FREEPINT BAR
In Association with Factiva
a Dow Jones & Reuters Company
Whilst preparing this review, it occurred to me that it's actually
quite difficult to keep abreast of new happenings at the Bar by simply
visiting periodically. That's why so many members (over 13,000 now)
receive the twice-weekly Bar Digest. You can choose a plain text or
HTML version and it's free to sign up at
<http://www.freepint.com/subs/>. There are also free 'feeds' of the
latest postings, which you can find out more about at
<http://www.freepint.com/feed/>.
Information professionals are always welcome at the Bar, of course,
and it's interesting to see discussion of topics like the inter-
library loan of electronic resources
<http://www.freepint.com/go/b30344>. There have been various
suggestions on how to limit a search to a specific range of Web sites
<http://www.freepint.com/go/b30286>. Can you add to the suggestions
about where a recently qualified postgrad can learn how to use content
management systems and cataloguing?
<http://www.freepint.com/go/b30380>.
The latest Jobs Update has comment on the state of the job market from
industry-luminary Sue Hill <http://www.freepint.com/go/b30368>, whilst
the FreePint Events database has a number of new listings
<http://www.freepint.com/go/b30341>.
VIP's review of Dialog NewsRoom, and how it has been compared to
Factiva and LexisNexis, has been announced at the VIP Lounge
<http://www.vivavip.com/go/l82>. You can request a free weekly Digest
of postings from the VIP Lounge and VIP Wire (the press release
database) at <http://www.vivavip.com/order/digest/>.
The VIP review includes company information coverage, the topic of a
number of Bar postings in the last couple of weeks. One enquirer wants
UK company rankings by industry/sector for the UK and Europe
<http://www.freepint.com/go/b30377>, whilst another is looking
specifically at the UK manufacturing labour market
<http://www.freepint.com/go/b30401>.
Trickier requests include someone wanting to know about UK family
firms and their use of non-family members
<http://www.freepint.com/go/b30373>. Is there research into John
Lewis's use of art/design in marketing
<http://www.freepint.com/go/b30420>, or a breakdown of employee
statistics by industry? <http://www.freepint.com/go/b30399>.
Thanks to those who suggested sites with information on where to
find contacts in specific UK localities
<http://www.freepint.com/go/b30361>.
Finally, a couple of computer-related questions: Is there an easy way
to remove temp files (.tmp) from a number of computers?
<http://www.freepint.com/go/b30406>; What about a single-handed
keyboard <http://www.freepint.com/go/b30389> for the FreePinter who
surely deserves the award for 'most interesting topics at the FreePint
Bar'. Everyone wants his job, for the variety alone.
William Hann <william.hann@freepint.com>
Founder and Managing Editor, FreePint
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The FreePint Jobs Update is being circulated widely every two
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Fully-formatted PDF version available at:
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Senior Researcher, Capital Markets
This role is one of several corporate finance research roles now
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TIPS ARTICLE
<http://www.freepint.com/issues/281004.htm#tips>
"European Industrial Relations Sources"
By Kay Renfrew
The sources in this article look at developments in industrial
relations in a European context, rather than providing sources on the
industrial relations situation in each Member State. By consulting
these sources, readers should be able to obtain an overview of the
main themes under discussion and areas of future research, and then to
focus in on those areas that are of particular interest to them.
European Union and International sources
----------------------------------------
The European Foundation for the Improvement of Living and Working
Conditions (EFILWC) <http://www.eurofound.eu.int> must be the first
port of call for anyone wanting to find out about industrial relations
in Europe. The Foundation, based in Dublin, is an agency of the
European Commission and is part of Directorate-General Employment and
Social Affairs. The Foundation provides data and analysis to inform
and shape EU policy on working and living conditions, through research
and development projects. It reports to an administrative board made
up of governmental, trade union and employer representatives from
throughout the European Union and to members of the European
Commission <http://www.eurofound.eu.int/about/board.htm>.
Industrial relations is one of the Foundation's core areas of
expertise <http://www.eurofound.eu.int/industrial/industrial.htm>.
It monitors changes in industrial relations and analyses developments
through the main monitoring instruments and related databases,
outlined below.
EIRO - European Industrial Relations Observatory. - The Observatory's
website <http://www.eiro.eurofound.eu.int/> provides news and
analysis. Its database, EIROnline, is organised to allow users to look
at comparative information such as annual reviews of industrial
relations developments in Europe, comparison of the EU with Japan and
the USA, and national reports. The database also offers comparative
and thematic studies across countries; information on individual
Member States (plus the USA, Japan and Norway), information organised
by industrial sector. There is a simple and advanced search option,
which includes the use of a thesaurus of terms.
The EIRObserver bulletin
<http://www.eiro.eurofound.eu.int/eirobserver.html> provides a
bi-monthly selection of news and features, downloadable from the site.
Alternatively, by registering on the site users automatically receive
a copy by email.
The list of industrial relations links
<http://www.eiro.eurofound.eu.int/relatedsites.html> is a useful
resource, grouped by country, and organised into Employers, Trade
Unions, Government, and Others; plus links to EU institutions
and related organisation.
EMIRE - European Employment and Industrial Relations Glossary -
<http://www.eurofound.eu.int/emire/emire.html> is a very useful source
to negotiate through industrial relations jargon or any terms that are
unfamiliar. Users can browse an alphabetical list of terms (at present
for the fifteen Member States prior to the enlargement of May 2004) or
can search across all or a selection of countries for a particular
term. Plans are in place to expand the definitions o the newly joined
States, plus terms relevant at an EU level.
PECS - Pacts for employment and competitiveness - the database
<http://www.eurofound.eu.int/industrial/pecscstudies/sectors.htm>
comprises 30 case studies from 11 member states on collective
agreements between employer and employee organisations on employment
and competitiveness. The information is searchable or browsable by
country or industrial sector.
Directorate-General Employment and Social Affairs
<http://europa.eu.int/comm/employment_social/index.html> has
responsibility for industrial relations, and is the institution to
which the EFILWC reports. Although many of its priorities and
objectives broadly concern industrial relations,
<http://europa.eu.int/comm/employment_social/soc-dial/index_en.htm>
provides specific information on industrial relations and industrial
change. Reference to EMIRE (mentioned above) may be useful when
consulting this material. The site provides news, reports, policies
and official communications on developments in industrial relations at
an EU level, and includes calls for proposals for research.
CORDIS - Community Research and Development Information Service
provides a further source of information on research into industrial
relations with a study on entrepreneurial innovation in Europe
<http://www.cordis.lu/innovation-policy/studies/2002/relations.html> in
particular the section on the impact of industrial relations on
innovation
.
Another research study on Industrial Relations as a key to
strengthening innovation in Europe can be downloaded from
.
The International Labour Organisation International Industrial
Relations Association The IIRA
<http://www.ilo.org/public/english/iira/> was set up to develop and
exchange knowledge in industrial relations at an international level.
It produces a Directory of Industrial Relations Institutes and Centres
worldwide, involved in research and training <http://iira.free.fr/>.
The alphabetical listing has links to summary information providing
contact details for each organisation (including websites) and the
type of research and publications produced.
Trade Union and Employer Federation sources
-------------------------------------------
Directly involved in shaping industrial relations, and affected by
developments in them, both trade union and employer organisations are
useful sources of information.
The European Trade Union Conference (ETUC), recognised by the European
Union as the only representative cross-sector trade union
organisation at European level, has a membership of over 70 national
trade union confederations from 35 European Countries. Its site
<http://www.etuc.org/en/> has a Dossier section with a number of
categories under the heading of Industrial Relations and Social
Dialogue. Each category comprises ETUC press releases and resolutions,
relevant EU Council Directives, other relevant documents, and links to
other organisations involved.
The European Trade Union Institute (ETUI) ETUI is the research arm of
the European Trade Union Confederation (ETUC). Its Documentation
Centre <http://www.etuc.org/etui/publications/default.cfm> provides
details of ETUI publications and reports, some of which have
downloadable sample chapters or table of contents.
Around two times a year the ETUI also produces a bulletin, Infoletter,
which reports on its research work. A PDF version is available on the
site at <http://digbig.com/4catd>. Also available for download is a
yearly activity report for the ETUI, which summarises the main
research themes dominating that year. Copies (PDF format) are at
<http://www.etuc.org/ETUI/Publications/Activity/default.cfm>.
Another information source provided by ETUI is Labourline
<http://www.labourline.org/etui.htm> the online catalogue of the ETUI
Documentation Centre. This database, jointly managed by the European
Trade Union Bureau for Health and Safety (TUTB), contains
bibliographical references to a broad range of publications related to
industrial relations and health and safety (beyond those published by
ETUI).
The Federation of European Employers (FedEE) describes itself as the
leading organisation for international employers operating across
Europe. <http://www.fedee.com/about.html> and is a membership
organisation based in London. The information it provides is therefore
aimed at employers, and includes summaries of industrial relations in
Europe (not just EU Member States) organised by country
<http://www.fedee.com/condits.html>. Information in the summaries
covers the industrial relations climate (for example, the proportion
of the workforce in a trade union), legal employment framework (such
as the minimum working age), and other details (such as the prevalence
of collective bargaining). The site also provides a league table of
strikes and lockouts organised by country
<http://www.fedee.com/strikes.html>, and descriptions on how
individual and collective disputes are handled by specialist labour
courts in six European countries (Belgium, Denmark, Germany, Italy,
the Netherlands and Spain) <http://www.fedee.com/labcourts.html>.
The Union of Industrial and Employers' Confederations of Europe
(UNICE) <http://www.unice.org> acts as the employers federations'
spokesperson to European Institutions, and comprises 36 members and 29
observer organisations. It sits on the EFILWC administrative board.
The Confederation does not present itself as an information resource,
but can still be a useful reference point, for example through its
regular news bulletin UNICE@NEWS, and through its Links section.
Journals
--------
A number of journals provide in-depth information on industrial
relations in Europe. These include three journals from Blackwell
Publishing:
* Industrial Relations Journal covers industrial relations
worldwide, but has a particular focus on Europe. Subscribers also
receive the European Annual Review with chapters on different
aspects of industrial relations analysed in the context of the
prevailing political and economic situation. Details at
<http://digbig.com/4cath>.
* Labour: Review of Labour Economics and Industrial Relations,
published on behalf of CEIS and the Fondazione Giacomo Brodolini in
Rome <http://digbig.com/4catf>.
* Industrial Relations: A Journal of Economy and Society, aims to
offer an international (not solely European) perspective on
economic, sociological, psychological, political, historical and
legal developments in labour and employment
<http://digbig.com/4catg>.
ETUC publish their own journal - Transfer: European Review of Labour
and Research - that aims to stimulate dialogue between the European
trade union movement and the academic and research community, and to
provide research findings of practical value to trade unions
<http://www.etuc.org/ETUI/Publications/Transfer/default.cfm>.
Miscellaneous sources
---------------------
The REINET list <http://listes.cru.fr/wws/info/reinet> focuses on
industrial relations in France, but with a comparative perspective on
other European countries and the developed world.
Andrew Bibby is a journalist who has written for the ILO, European
Commission, UK DTI and others on industrial relations. His website
<http://www.andrewbibby.com/socialpartners.html> has a selection of
his articles and reports.
Conclusion
----------
Obviously, in an article of this length, the list of sources is not
definitive. I hope that they will provide a good starting point for
further research, and point to authoritative sources at the
EU-level and in each of the European countries. If anyone is aware
of any other resources, I would be interested to hear of them, or
perhaps you could post them to the FreePint Bar
<http://www.freepint.com/bar/>.
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Kay Renfrew is a Consultant at Oakleigh Consulting Ltd
<http://www.oakleigh.co.uk>. She has a Masters degree in Information
Management, and has carried out projects for a number of European
Commission Directorates and Agencies. These include work on the
development of EIROnline and EMIRE, and various other projects for
EFILWC. At Oakleigh (one of the Sunday Times Tech Track Top 100
fastest growing unquoted companies) she specialises in information
management consultancy and research, and the management of business
and technical information for its clients in the private, government,
health, education, housing, financial services and utilities sectors.
Kay can be contacted at <kayrenfrew@oakleigh.co.uk>.
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Related FreePint links:
* 'Finance and Business' articles in the FreePint Portal
<http://www.freepint.com/go/p50>
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* Read this article online, with activated hyperlinks
<http://www.freepint.com/issues/281004.htm#tips>
* Access the entire archive of FreePint content
<http://www.freepint.com/portal/content/>
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FREEPINT BOOKSHELF
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"Assessing competitive intelligence software:
a guide to evaluating CI software"
Written by France Bouthillier and Kathleen Shearer
Reviewed by Derek Stephens
The scope of Competitive Intelligence (CI) is far wider than just
gathering information about the activities of competitors. An
effective CI operation will instead encompass the skilful management
of information about a range of factors that have an impact on
business performance. It will also include informed analysis and
exploitation of that information in productive decision-making and
action. However, as the volume of information accessible to business
has continued to increase, it has become more difficult for
organisations to discern the valuable nuggets, let alone detect
connections between them. Software packages for competitive
intelligence seek to provide the solution, but how effective are they?
France Bouthillier and Kathleen Shearer explain these issues and
address the above question in this practical combination of textbook
and 'how-to' guide which is a very readable addition to the growing
body of CI-related literature. Its appeal lies in its ability to
inform and educate not only on the evaluation of competitive
intelligence (CI) software, but also on the underlying principles and
processes that transform information into intelligence. It will be of
value to anyone with an interest in the improvement of business
competitiveness, whether SME owner/manager, information professional,
lecturer or student; CI software designers too will find insight
within.
Whilst many conceptual models of CI exist, the authors of this book
demonstrate -- via a strong literature review -- how the competitive
intelligence function is the result of sound information management
combined with smart analysis. This commonsense application of
information management processes to the CI cycle distinguishes
Bouthillier and Shearer's conceptual model from others. Crucially, it
identifies the role of CI software as being more than a tool to save
time and money, but more importantly to add value to basic information
to make it actionable, i.e. prepared for use in effective decision-
making.
From this credible foundation, the authors go on to develop a readily
accessible and logical method for evaluating CI software, with 32
related criteria. The result is a practical checklist for anyone
involved in the process of evaluating software for CI. A discussion of
the evolution of the CI software market follows, before the
application of the criteria to today's leading software applications.
This enables in-depth discussions of the strengths and weaknesses of
each package, although the authors stress that they do not attempt to
make recommendations, rather they seek practical application of their
assessment criteria.
The products to which the evaluation criteria are applied in this book
will develop and change. The real strength of this book lies in its
definition of practical criteria for evaluating CI software, which
will remain valuable for years to come.
> - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
Dr Derek Stephens' teaching and research interests at the Department
of Information Science, Loughborough University, include competitive
intelligence and marketing for information professionals. He is
Project Director for the FDTL5 project to enhance the provision of
'skills-based' teaching materials, which focus on the vocational
skills needed for the workplace and complement the academic elements
of the degree.
Dr Stephens has been a manager in a Fortune 500 oil and gas
exploration company in Canada and was previously the Executive
Director of the Atlantic Publishing Association.
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FEATURE ARTICLE
<http://www.freepint.com/issues/281004.htm#feature>
"How European companies can turn the challenge of environmental
regulation into profit"
By Nick Paget-Brown
Just as Philip Larkin told us that sexual intercourse began in 1963,
so the keener environmentalists will tell you that in Europe, it was
the EU's First Environmental Action Programme of 1973-1976 that marked
the deliberate start of a comprehensive attempt to limit our impacts
on the environment. In the thirty years that have passed since that
modest beginning, this environmental revolution has had a considerable
impact on the business world, although far less influence on our
conscious lifestyle choices as consumers.
6th Environmental Action Programme
----------------------------------
2004 marks the third year of what has now become the 6th Environmental
Action Programme <http://europa.eu.int/comm/environment/newprg/>.
Although this sets the framework for achieving a range of desirable
environmental outcomes in the period until 2010, the Programme and its
contents are required to take their place in the eternal battle of
priorities between enhancing environmental protection, maintaining the
EU's international competitiveness and meeting the challenge of
creating a single internal market.
The EU now has 25 Member States at very different stages of
development and with very different attitudes towards the environment.
Achieving complete harmony will involve great costs for many new
members and will be one of the key issues facing the new Environment
Commissioner, Stavros Dimas, when he takes up office next month
<http://europa.eu.int/comm/dgs/environment/index_en.htm>.
Within the wider political world, the environment, with its greener-
than-green NGO outriders, remains a potentially dangerous beast, able
to do considerable damage to political and corporate fortunes if
neglected. A range of key issues need watching. Companies determined
to outpace their rivals and provide additional shareholder value are
already attuned to this. Those that fail to see the threats and
opportunities which derive from greater environmental regulation are
leaving themselves open to greater risks than ever before.
The International Perspective
-----------------------------
The driver of this green revolution has been the European Union. 80%
of all UK environmental legislation now has its origins in European
Directives.
Everything from fridge disposal to vehicle emissions, through river
water quality, the construction of incinerators, the use of packaging,
energy, waste and water infrastructure, pollution abatement, ownership
and development of contaminated land, production of chemicals and
policy on climate change, is subject to framework legislation drawn up
in Brussels <http://www.ieep.org.uk/>.
International Treaties such as Kyoto, the Montreal Protocol on ozone
depleting substances
<http://www.ciesin.org/TG/PI/POLICY/montpro.html>, WTO trade rounds
and UN Conventions and Declarations such as the Johannesburg summit on
sustainable development in 2002 all require Governments to take
action at national level by agreed deadlines. Even companies that
don't consider themselves directly affected by much of this may find
that their clients or suppliers are faced with new regulatory
requirements.
A clear agenda of incorporating the cost of environmental impacts into
the pricing of products has been implicit in the EU ever since the
early days of the 1970s.
Environmental reform has had to steer between the Scylla of driving up
standards and challenging the culture of waste and the Charybdis of
Europe's need to liberalise markets and meet international
competition. This equation is given additional complexity because we
all like cheap products and all have a vote. Elected politicians have
come to realise that, although we profess to be concerned about
environmental impacts, we don't always react favourably to the higher
prices and life-style changes which tackling them often demands.
So, the Environment Directorate (DG Env) within the Commission may
initiate a Directive protecting the environment - but will need to do
battle with other parts of the Commission to ensure that it is not
hampering internal market reforms or making the EU uncompetitive in
global markets. It is at the stage of policy formulation within the
Commission that many companies are failing to make their voice heard.
<http://europa.eu.int/comm/trade/index_en.htm>.
Once proposals emerge from the Commission, they face scrutiny and
amendment by the Environment Committee of the European Parliament
<http://www.europarl.eu.int/comparl/envi/default_en.htm> and must
then be approved by the Council of Ministers.
Depending on the proposal, this will either be by qualified majority
or will require unanimity. The Parliament and the Council have rights
of co-decision and where they cannot reach agreement a conciliation
mechanism springs into action. Once a Directive is adopted, Member
States are required to transpose it into national law by an agreed
date.
The Impact of Producer Responsibility
-------------------------------------
In general, politicians do not like to confront consumers directly
with the consequences of our own profligacy. Therefore, a number of
ingenious mechanisms have been developed to avoid such a stark
confrontation.
"Producer responsibility" requires manufacturers to take
responsibility for sustainable production. Any changes in production
or materials-use that this may require can be passed on to the
consumer in higher prices, but the linkage between government, policy
and cost is indirect. The external impacts on the environment are
quietly internalised in the price and the "polluter pays" objective is
met.
More overt taxation can change consumption habits abruptly and
consumers can react with hostility as they did during the fuel price
protests in the UK in 2000. The fuel price escalator was also dropped
and VAT on fuel cut when consumer cries of pain became too anguished.
This preference for taxing production rather than consumption has led
to the development of instruments such as the Climate Change Levy, the
landfill tax and the Aggregates Levy.
Ingenious new market tools have also been developed. In the UK these
include the Packaging Recovery Note (PRN), to show that packaging has
been recycled, and the Renewables Obligation Certificate (ROC). Under
the Renewables Obligation, electricity suppliers are required to
provide 10.4% of supply from renewable sources by March 2011. ROCS are
proof that they are meeting this requirement.
Next year will see the introduction of the European Emissions Trading
scheme <http://europa.eu.int/comm/environment/climat/emission.htm>, to
allow companies in polluting sectors of industry to trade carbon
emissions allowances.
In the UK, the Landfill Allowance Trading Scheme (LATS) from next
April will introduce an instrument which local authorities can use to
trade spare landfill capacity with those who need it. The draconian
Landfill Directive is now the main determinant of UK waste policy.
Even the current review of water pricing for the five year period 2005
- 2010 builds in an element for capital investment in improving the
water infrastructure. Keep an eye out too for possible taxes on
pesticides and nitrates.
There is an argument that, because all these costs are hidden,
although ultimately passed on to the consumer, we are not really being
directly confronted with the cost of our own environmental profligacy.
The suggestion that householders, for example, might face a direct
charge related to the volume and content of waste in their dustbin is
still thought too controversial for UK voters, despite our poor
recycling rates compared with European neighbours.
Incentives for segregating waste, minimising the content of bins and
recycling are likely to be the way forward. Public sector cash is
currently pouring into waste management and recycling initiatives
<http://www.defra.gov.uk/environment/waste/wip/>.
New standards can stimulate new markets. Rising disposal or raw
material costs can lead to the development of more environmentally
friendly alternatives. Hypothecated tax revenues can provide a new
source of capital investment. All of these instruments are currently
introducing a substantial new dynamic into product pricing. However,
whatever the benefits, transparent it is not. It may be good for the
planet but it has rarely been explicitly endorsed by the voters.
The Need for Timely Information
-------------------------------
The well run corporation has to know about these things more than ever
before. Once upon a time, a passing knowledge of the Health and Safety
Act was probably the only substantive piece of legislation that
company managers needed to worry about.
Now, quite apart from keeping tabs on a whole raft of new legislation,
Directives, statutory instruments and regulatory impact assessments,
the alert company director needs to be aware of "reputation
management", of "corporate social responsibility", of more transparent
environmental reporting requirements, of "naming and shaming", and of
the pressures from NGOs. Our own website at <http://www.ukendata.com>
can help solve this information need.
Boards can face accusations of corporate manslaughter, of incurring
new environmental liabilities, of failing to report environmental
impacts, of being unaware of planning guidance. Even when they try to
do the right thing environmentally, as Shell did with its plans to
dismantle North Sea platforms offshore, the insistence that they
should have brought the platforms back to port for dismantling was
furious and damaging. Subsequently, most experts agreed that disposal
at sea would have been less environmentally harmful.
The Profit Opportunity
----------------------
So environmental regulation is here to stay, with companies bearing
the brunt of cleaning up Europe. This will create new opportunities
for "bottom-line" savings as raw material consumption is cut, tax
bills are minimised and productive processes are streamlined and
harmonised.
There is a complex range of grants, capital allowances and permit
trading opportunities to master. Third parties are analysing and
ranking companies. Reputations can be destroyed by one mistake. The
sensible company and the far-sighted corporate strategy will not want
to ignore these new environmental imperatives.
> - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
Nick Paget-Brown is owner and editor of UK Environment News, a
subscription newsletter which is published every 6 weeks. It is read
by a wide range of companies and public-sector organisations in the UK
and is an essential research and current awareness tool for senior
managers wanting early warning of environmental policy developments in
the UK and EU. The newsletter is published online at
<http://www.ukendata.com>, where there is also a fully searchable six
year archive and a discussion forum for expert advice and help.
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- Publication Date: 27th October 2004
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