CASE STUDY 1 BALLIEFURTH FARM Key: SME Tourism

Food & Drink Habitat Management Plan Grants and Awards Holistic Thinking

Company Details Company Name: Balliefurth Farm Type of Business: Bed and Breakfast, Farm Size of company: Family run (2 persons) Parent company: n/a Location: Grantown-on-Spey Contact: Alistair and Ann MacLennan, Owners Summary of Approach to Biodiversity Balliefurth Farm’s holistic approach to farming helps to encourage biodiversity while taking advantage of the natural assets and services in Speyside. Traditional land management has helped the farm deal with environmental threats, reduced business risks, and improved productivity while enhancing biodiversity. Additionally, Balliefurth Farm is actively engaging with the local community through working on a farm waste and recycling project, selling livestock produce locally, working with the Cairngorms National Park Authority, and the National Park and Local Biodiversity Partnership. According to the organisation Linking Environment and Farming (LEAF), Balliefurth Farm is ‘an excellent example of how Integrated Farm Management balances the economic production of food with positive environmental management.’ The business is now a LEAF demonstration farm, showing other farmers how wildlife and landscape management can be integrated into farm management. The driving principle behind Balliefurth Farm is holistic thinking, where the environment is as much an ‘output’ as livestock and tourism. Linking together four key features in order to progress towards a sustainable rural business, the business views the ‘environment’ to be an integral part of farming, forestry and tourism.

Agriculture

Environment Forestry

Bed & Breakfast

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Key Features Habitat Management Plan In order to achieve the aims of a sustainable rural economy, the business has developed its own environmental management map and plan which outline the different habitats on the farm, as well as management objectives for different parts of the farm. Through the habitat management plan, land is not only farmed in a sustainable way but is managed in a way that encourages a variety of birds onto the land. For example, low-lying areas prone to flooding are planted with a mix of grasses tolerant of wet conditions, and high quality barley is grown where silt builds up. Livestock grazing is restricted to the summer months in certain fields in order to avoid compaction and flooding. All of these management activities also help to provide a rich habitat for birds and the 419 acre farm boasts one of the best breeding sites for wading birds in the UK. Other parts of the farm are being managed specifically to encourage biodiversity. Activities include putting up Goldeneye bird nest boxes along the river bank, pond restoration, and removal of non-native species in the woodland. The farm includes 91 acres (37 hectares) of woodland which are being restructured to remove exotics, reduce the density of trees through thinning and vary the age structure of trees in order to move towards a continuous cover, naturally regenerating forest. Tourism Speyside attracts many visitors who come to enjoy outdoor pursuits and wildlife and Balliefurth Farm has tapped into this market by providing accommodation. The rich bird-life is particularly appealing to bird-watchers who come to stay at the farm or can simply enjoy viewing from the Speyside way which runs through the farm. The accommodation is run with environmental objectives in mind. Visitors to the farm can be sure of the environmental sustainability of their holiday accommodation where energy and water conservation are as important as serving local produce. Visitors are welcome to a wealth of information about the surrounding countryside as well as the details of integrated farm management practices through photographs, display boards and guided tours around the farm. Grants and Schemes In order to help formulate and implement appropriate management plans with positive impacts on biodiversity, Balliefurth Farm has linked up with a number of organisations and schemes. These provide valuable resources in the form of expertise, grants and networking contacts. The farm currently operates under the following schemes: • Environmental Sensitive Area Scheme • Upland Grain Project • RSPB Management Agreement • Rural Stewardship Scheme • Farming and Wildlife Advisory Group Benefits

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The main benefits of the new holistic management practices at Balliefurth Farm flow to the business. Economic risk has been spread across the variety of ventures, which include letting out accommodation, providing meals, selling farm produce, forestry and attracting grants. The farm has also reduced its environmental risks by reverting to managing low lying areas in a way which reduces flooding yet maximizes the land’s productive potential. Making biodiversity a central feature of the business helps to attract guests to the Bed and Breakfast by providing a ‘wholesome country experience,’ and brings funds through grants and schemes which seek to enhance biodiversity in the region. By linking to local and national schemes, the owners have gained reputation benefits which in turn provide new opportunities, such as discussing relevant issues with other farms under the LEAF scheme and working with the Cairngorm Partnership.

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CASE STUDY 2 HILTON COYLUMBRIDGE Key: Int’l Corp

Tourism

Reporting Awards

Company Details Company Name: Hilton Coylumbridge Type of Business: Tourism Size of company: Hilton group has an approximate turnover of £2.5 billion. Over 77,000

staff in more than 70 countries world wide, operating some 250 hotels, 13 in Scotland under the Hilton brand.

Parent company: Hilton Group Location: Coylumbridge, Aviemore Contact: Kathy Griffiths (Janice Duncan, Health and Safety Manager) Summary of Approach to Biodiversity The Hilton Group plc recognises that its activities impact on the environment in the countries where the company operates. The impact on the local environment, including biodiversity, is particularly evident in the Cairngorms where the surrounding landscape provides a draw for thousands of tourists every year. The need to maintain the beauty of the countryside along with an opportunity to contribute to local community environmental action motivated the Hilton Hotel at Coylumbridge to work towards attaining the Green Tourism Award1, in which they achieved a Gold Award in 2001/2002. The Hilton Group’s published Environmental Policy2 states the company is ‘committed to protecting the environment through continual improvement of (…) environmental performance and prevention of pollution.’ The group is working to incorporate environmental management into everyday business practice through its employees, suppliers, contractors and partners and takes part in environmental schemes, awards and reporting mechanisms to help it continuously improve its performance. At Coylumbridge, work on biodiversity forms a part of Hilton’s environmental activities linked to the wider health and safety programme. The company followed guidance and support from the Green Tourism scheme, gaining points towards the scheme’s award. One of the low cost and easy initiatives undertaken involved managing native woodland on Hotel grounds and putting up bird boxes. The Hotel’s energy, water and waste programmes also help local biodiversity by reducing the use and impact on these natural resources which are an important part of biodiversity in the Cairngorms.

1 http://www.green-business.co.uk 2 http://www.hiltongroup.com/hilton/con_social/enviro/social_enviro.shtml

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Benefits Hilton at Coylumbridge has gained recognition of its wider environmental work through the Green Tourism Award. At group level, the company participates in the UK Business in the Environment's Index of Corporate Environmental Engagement and has been included in FTSE4Good, helping it to track and benchmark its progress against its own track record, as well as other companies in its sector.

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CASE STUDY 3 MORTONHALL GOLF COURSE Key: Scottish

Company Tourism

Policy Company BAP and Site BAPs Education Stakeholder Consultation

Company Details Company Name: Mortonhall Golf Club Type of Business: Private Club run on business principles Size of company: SME Parent company: n/a Location: Edinburgh Contact: Stuart Melville, Mortonhall Golf Club

Jonathan Smith, Scottish Golf Environment Assistant, Scottish Golf Environment Association

Summary of Approach to Biodiversity Golf in Scotland boasts a unique image worldwide, closely linked to the diverse landscape and habitats where courses are found. At the same time, Scottish golfing is potentially strategically important to biodiversity, protecting green spaces, providing biodiversity opportunities and reducing other development pressures. Mortonhall Golf Course, located in Edinburgh’s green belt, has positioned itself as an environmentally sympathetic course in order to enhance the character and ambience of the course as well as allow biodiversity to flourish. The club actively pursues nature conservation on the course through managing the greens, woodlands, water, energy and waste in ways that enhance biodiversity. The club historically followed informal approaches towards environmental management, but drew up a formal policy in 1998, which describes its vision and aims. The policy has been instrumental in raising the club’s awareness of environmental responsibility, leading to support for actions, securing resources to carry out conservation measures and implementation of the environmental plan. Key Features Site Biodiversity Action Plan In order to achieve its aim to conserve and enhance biodiversity, Mortonhall Golf Club developed an informed Management Plan. The Club consulted the Scottish Golf Environment Group3 and followed the general framework laid out in the manual - Producing Management Plans for Golf Courses. The steps included conducting Phase One and Phase Two Habitat Surveys (carried out by the Scottish Wildlife Trust, Greenbelt Trust and Edinburgh University’s School of Biology).

3 http://www.scottishgolf.com/environment/index.htm

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Subsequently, a Conservation Management Plan was drawn up with support of the Greenbelt Trust, outlining actions which were prioritised into 5-year working plans. Examples of specific actions completed to date include: • Allowing uncut grass buffer zones around ponds which are planted with reeds, rushes

and semi-aquatic plants; • Creating woodpiles and brushes to enhance biodiversity; • Placing 35 Bat Boxes, 30 Bird Boxes, 1 Owl Box and 1 Hawk Box in wooded areas; • Participating in a Bat Survey carried out by the Lothian Bat Association; • Putting in place agreements with the Scottish Wildlife Trust and the University of

Edinburgh to continue monitoring the course’s wildlife. Detailed, costed five-year Working Plans were developed for Landscaping, Wildlife and Nature Conservation and Woodland Management. Monitoring, recording and review systems have been put into place to track progress against plans. Communication and Awareness Raising Various means of communicating the Club’s environmental plans and achievements were devised to raise the awareness of club members and the local community about biodiversity. The Club’s Edinburgh Green Belt Trust Millennium Award placard is prominently displayed in the clubhouse. There is an environmental diary in the Clubhouse in which members are encouraged to record wildlife sightings on the course. A Club newsletter tells members about environmental issues. A leaflet was produced with a hole-by-hole account of flora and fauna, which can be seen around the golf course and includes a wildlife recording sheet. The Club has also taken an active part in involving the community and has shown local school children around the course, explaining the conservation work which is being done. Working in Partnerships Through The Wildlife and Nature Conservation Plan the club developed its partnerships with the Scottish Wildlife Trust, Edinburgh Green Belt Trust (EGBT), The City of Edinburgh Council, Forestry Commission and other interested parties. These relationships opened up opportunities for grants and awards that have furthered the ability of the Club to preserve and enhance wildlife features. The Club’s achievements in Environmental Planning earned it the Edinburgh Green Belt Trust Millennium Award in 2000. Benefits The course has benefited from these actions through visible evidence of enhanced biodiversity. Additionally, cost savings associated with water, energy and waste management plans have been realised. For example, areas susceptible to flooding are managed by creating ponds rather than installing expensive drainage systems. One of the main benefits of the actions has been heightened awareness amongst club members, staff, the Council and the local community of environmental issues and responsibilities. For private clubs, demonstrating their commitment to stewardship of the countryside can provide an important marketing draw for new members.

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CASE STUDY 4 SCOTTISH SEABIRD CENTRE Key: SME

Tourism

Community Holistic thinking Environment

Company Details Company Name: Scottish Seabird Centre Type of Business: Trust (run as business) Size of company: 16 Full Time, 10 Part Time, up to 25 seasonal staff Parent company: n/a Location: North Berwick Contact: Lillian Kelly, Fundraising and Development Manager Summary of Approach to Biodiversity From its stunning location overlooking the wildlife-rich waters and islands of the Firth of Forth, the Centre (open 364 days a year) aims to inspire people of all ages, abilities and backgrounds to appreciate, learn about, and care for the natural environment. Visitors enjoy real-time close encounters with wildlife using solar powered interactive cameras to observe and study seabirds and marine mammals, without disturbing the animals and their fragile habitats. Visitors can pan, zoom and rotate cameras located on the islands to capture live broadcast- quality pictures, with sound, on giant screens within the Discovery Centre. Amazing wildlife spectacles include vast breeding seabird colonies including over 100,000 gannets on the Bass Rock and over 110,000 puffins on the Isle of May, as well as grey seals which have their pups on the island in winter.4 Central to the centre’s management is its Environmental Policy outlining the ‘joined up thinking’ that drives the organisation’s operations. Every activity’s impact is assessed, measures are taken to reduce negative environmental impacts, and efforts made to communicate the positive environmental contribution to the 600,000 people who have visited the centre to date, helping to raise their awareness about practical every-day actions which everyone can take to help wildlife. Key Features Community Development The Scottish Seabird Centre has proved that wildlife can provide a means for sustainable development of communities. Plans were initially drawn up together with the local community. The centre is situated on the site of a derelict swimming pool on the harbour of North Berwick where it is accessible to both visitors and residents. Visitors can come and view wildlife or relax in the café all year round, no matter what the weather. 4 Live images from the cameras are broadcast worldwide on http://www.seabird.org

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The centre contributes around £1 million to the local economy per year. There are educational facilities for schools and employment opportunities for up to 50 staff. Local businesses have been supported too – for example, visitors wishing to go closer to the islands are referred to local boat operators and many of the products sold in the shops are produced in the region. The Scottish Seabird Centre has linked up with the Business Environment Partnership to give students an opportunity to gain practical business experience through work placements. Holistic Thinking The Centre’s Environmental Policy aims to link all aspects of the environment to wildlife conservation. For example, cameras installed on the islands use solar power, reducing CO2 emissions and global warming which in turn can affect birds. Similarly, a package linking ScotRail with reduced admission prices is aimed at encouraging the use of public transport. All suppliers are screened and requested to provide evidence of an Environmental Policy. Communication The Scottish Seabird Centre provides valuable information about birds, wildlife and the wider environment to adults and children from across the world. There are newsletters, a web site and other displays by local environmental organisations. One of the aspirations of the Seabird Centre is to set up a partnership of charities and businesses involved with wildlife in East Lothian to promote the area as an important wildlife destination. Benefits Wildlife has provided a unique development opportunity to boost the town’s economy which fell into decline after the advent of inexpensive package holidays abroad in the 1970s. The Scottish Seabird Centre ensures that this development is sustainable to the business and thus, the economy, to the birds and the environment and consequently for the community. The benefits flow beyond the boundaries of the Centre to all the tourism facilities in the area, which provide sustenance, accommodation or transport to visitors. Finally, the educational value of the Scottish Seabird Centre extends far away to the places where visitors come from and into the future when children who learn about the importance of waste reduction for wildlife preservation grow up.

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CASE STUDY 5 LAND SECURITIES PLC Key: UK Corp Retail Policy

Benchmarking Company Details Company Name: Land Securities Type of Business: Property Management Company Size of company: 1,900 employees, and an income of £1,239.5 million Parent company: n/a Location: Headquarters in London, 4 major sites in Scotland Contact: Dave Farebrother, Assistant Director, Environment Services Property managers Land Securities PLC operates 14 shopping centres, two designer outlets and 26 retail warehouse units across the UK accounting for nearly 800,000 metres². In Scotland, Land Securities manages four major centres: Almondvale in Livingstone, Bon Accord in Aberdeen, Olympia & Princess Mall in East Kilbride and Kingsway Retail Park in Dundee. Summary of Approach to Biodiversity Corporate Social Responsibility is an important issue for Land Securities and includes environmental and biodiversity management. In April 2003 the company published a biodiversity policy which it is implementing across the group. The responsibilities of the Environmental Director at Land Securities include biodiversity management. Biodiversity issues are communicated across the group through the environment newsletter Greenland. Key Features Land Securities is working with various stakeholders and Non Governmental Organisations (NGOs) such as Earthwatch Institute and the Wildlife Trusts to develop its biodiversity strategy. To help assess and improve its biodiversity performance management, Land Securities signed up as a pilot to the Wildlife Trust’s Business Biodiversity Benchmark and was one of the first companies to be awarded this standard. A rapid assessment tool has been developed to allow prioritisation of sites where significant, cost effective improvements may be achieved. In 2002 and 2003, the company held an ‘Environment Day’ in centres across the UK, inviting NGOs, community groups and local authorities to present on environmental issues. At Almondvale, in 2003, the day was attended by West Lothian Cleansing Department, Neighbourhood Environment Team, Scottish Waste awareness group, Keep Scotland Beautiful and WWF.

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CASE STUDY 6 MARKS & SPENCER PLC Key: UK Corp

Food & Drink Retail

SD CSR Reporting Staff Involvement Partnerships

Company Details Company Name: Marks & Spencer plc Type of Business: Retail company Size of company: 67,000 employees; £8 billion turnover Parent company: n/a Location: Headquarters in London Contact: Mike Barry, Sustainable Development Manager;

Katie Stafford, Environmental Management Assistant Marks and Spencer is the UK’s 8th largest food retailer, with 12 million customers per week shopping in 350 stores across the nation, including 25 stores in Scotland. The company’s vision is to be the UK’s most trusted retailer in terms of sustainability. Summary of Approach to Biodiversity Sustainability is imbedded into the M&S brand and they have a board level commitment to leading standards in sourcing sustainable raw materials. Biodiversity constitutes an inherent part of sustainable sourcing of raw materials and overall operational thinking. Wherever significant sustainability impacts of raw material sourcing are identified, the company aims to support best practice, avoid bad practice and encourage the bulk of its supply chain operations to improve their performance. When considering policy towards specific raw materials Marks & Spencer always takes environmental, social and economic factors into consideration. The company communicates this approach to its employees, suppliers and other interested stakeholders through policies, publications and personal meetings. Key Features Marks & Spencer has carried out a comprehensive analysis of its biodiversity impacts which revealed three focus areas for improving the sustainability of its product line. Through these focus areas - fish, wood and cotton - the company can concentrate resources not only on securing sources which meet minimum standards and criteria, but work to improve biodiversity performance within the industries supplying these products. Fish Marks & Spencer is a major retailer of Scottish haddock, accounting for 14% of the national annual take. Traditional nets used to catch haddock can result in the accidental capture (by-catch) of North Sea Cod and juvenile haddock.

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Marks & Spencer is leading a project which aims to maximise haddock catches and reduce cod by-catch. Work with the Sea Fish Industry Authority (Seafish) and Seafood Scotland and jointly funded by Marks & Spencer, Scottish Enterprise and Cavaghan and Gray aims to help preserve Scottish fish thus protecting the livelihoods of fishing communities in the North East of Scotland. Increasingly skippers who share the Marks & Spencer approach to sustainable fishing are being contracted for Marks & Spencer products – joining their land-based colleagues in Marks & Spencer beef and pig farms throughout Scotland. Cotton While food makes up a major portion of Marks & Spencer sales and also is an area where biodiversity impacts are particularly evident, the company’s clothing business (12 % of the UK’s market share or 4th largest in the world) is a major consumer of cotton. Cotton is the most important textiles fibre in the world and although it is a natural fibre it is associated with some of the most significant global environmental challenges. The cotton growing industry is responsible for 12% of global pesticide use and at least 25% of global insecticide use. Many of the pesticides being used have been banned in Europe because of the risk they pose to human health and the environment. Additionally, cotton requires huge quantities of irrigation water and has led to significant environmental problems in areas of severe water stress. Impact on biodiversity includes loss of water to other habitats, the effects of mono-culture cropping, and effects on soil of intensive farming. There is also a potential social concern with cotton production, regarding ethical trade. Cotton accounts for approximately 55% of all the fibre in Marks & Spencer clothing, equivalent to approximately 45,000 tonnes of raw cotton! The company is introducing organic cotton into its supply chains, committing to having all cotton products made with a 5% blend of organic cotton by 2013. To supplement this and to raise customers’ awareness of organic cotton, Marks & Spencer is introducing 100% organic cotton ranges such as their Viewfrom organic cotton yoga wear. Organic cotton is produced without the use of synthetic pesticides, fertilisers and genetic engineering. It is usually, although not exclusively, grown by small holders and/or co-operatives. It therefore addresses many of the environmental and social concerns outlined above. Wood Another area of widespread biodiversity impact is through the use of wood in many areas of Marks and Spencer’s business including home furnishings, cardboard packaging, magazines, financial services statements, and office stationery. A wood policy has been drafted and is to be applied to all departments using wood or wood products. This will set a minimum requirement to know the source of wood-based products, and evidence to prove the legality of that source. It will then encourage improvement of all sources of supply towards independently verified sustainable sourcing. The company has also formed a partnership with the Tropical Forest Trust to help its suppliers implement the policy in areas of the world in which sustainable wood sourcing presents the greatest challenge. Benefits Focusing on three areas does not mean that Marks & Spencer is ignoring other impact areas. The company is constantly setting and reviewing targets, training employees, informing customers and engaging with its suppliers to improve its performance on biodiversity related issues. For instance the company is a major retailer of flowers and plants and has set itself a target to be 25% peat-free by April 2004 and 50% by December 2005. Its Field to Fork Guide is intended to inform all Marks & Spencer farms and pack-house

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suppliers about the company’s environmental, and pesticides policies and biodiversity & conservation recommendations. According to Mike Barry, Sustainable Development Manager of Marks and Spencer, while consumers are demanding sustainable shopping, they prefer not to have to sacrifice cost, quality, fashion and functionality. The challenge for the retail industry is therefore to imbed sustainability into production phases of operations and in effect remove any sacrifices for the consumer. At Marks & Spencer, the consumers can also shop without having to undertake extensive research in order to insure that the products they buy have been put on the shelves taking sustainability issues into consideration. In effect, Marks & Spencer is taking all the hard work out of shopping sustainably!

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CASE STUDY 7 MACKIE’S ICE-CREAM Key: SME

Food & Drink

Marketing Partnerships Grants / Plan Biodiversity Action Innovation

Company Details Company Name: Mackie’s Ice-Cream Type of Business: Dairy farm and ice-cream manufacturer & distributor Size of company: 80 staff, over 2,000 acres of farm, over 500 cows Parent company: n/a Location: Aberdeenshire Contact: Gavin Dick, Farm Manager Summary of Approach to Biodiversity Mackie’s of Scotland is best known for its creamy ice-cream sold in Scotland as well as throughout the UK. The business is a true ‘plough to plate’ operation with the ice-cream dairy which supplies the majority of the milk and cream used in the production process, located right on the farm. Mackie’s are committed to pursuing an environmental policy alongside innovation in technology. The farm’s work on conservation started with the desire to enhance the countryside. Today the farm aims to combine environmental farming with profit making, using grants where available. The company’s three-year business plan is put together in consultation with staff and communicates Mackie’s vision for the countryside to all 80 employees. Alongside the business plan, the company is currently writing an Environmental Management System which will build on biodiversity activities to date to achieve its environmental policy’s objectives. Key Features Mackie’s controls all stages of its food production chain – from growing fodder through to harvest, production of cow feed, milking and the dairy process. The 2,000 acre farm grows 600 acres of grass and 900 acres of cereals, most of which are processed to feed the herd of 350 Jersey and 250 Holstein milking cows. A key feature of Mackie’s farm management has been managing the landscape to provide habitats for wildlife, encourage native species, create a more pleasant landscape and furnish the community with accessible paths through the countryside. Specific achievements on the farm include: • Planting 120 acres of deciduous trees, creating a network of habitats for wildlife • Sowing grass strips around fields to create wildlife corridors linking areas of woodland

together • Creating wetland areas and a pond to encourage diverse wildlife populations

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In addition to these activities which are designed specifically to encourage biodiversity, the business is careful about managing the farm with minimal environmental impacts through: • Practicing minimum tillage • Composting and using compost over a period of 12 months, helping reduce nitrate

leaching and increase invertebrate populations • Nutrient budgeting and careful analysis of muck and slurry application to the fields • Avoiding any spraying of field edges • Employing a ‘Pest Damage Tolerance’ policy which recognises that some pest damage

to crops is inevitable and acceptable, so long as it is under control There have been visible benefits from these practices, not only to biodiversity but to the farming side of the business too. Grass margins between woodland have shown to be beneficial to invertebrates, hares, deer and rabbits. The grass margins also help to control pests, which appear to prefer the grass verges to crops! Grass margins also reduce nitrate leaching, and, along with woodland, increase CO2 recycling. The company’s countryside management record is important in running the marketing side of the business too. 85% of Mackie’s ice-cream is distributed through supermarkets whose representatives are shown the entire farm production process as part of the ‘whole picture’ which is the real selling point for the company. Good environmental management and a ‘Fresh Countryside’ image are what differentiates Mackie’s ice-cream from other brands. In addition to its business clients, Mackie’s is equally eager to convey the message about good environmental management of the rural countryside to the local community, particularly the younger generation. Through the Royal Northern Countryside Initiative (RNCI) companies like Mackie’s across Aberdeen, Kincairde and Morayshire can participate in a scheme funded and run by businesses to raise awareness about farming, and demonstrate how farming can still be viable and profitable. The initiative has raised £12,500 to set up a mobile classroom – the ‘Countryside on Wheels’ – which brings the farmyard right into the schoolyard! The van demonstrates the food supply chain and includes environmental displays as part of its mission to raise awareness of the countryside and stewardship. Benefits Increases to the company’s bottom line are proof of the benefits of Mackie’s biodiversity oriented work. There have been other benefits too, such as noticeable changes in employee attitudes towards wildlife and habitats and the positive publicity in the local community through improving the landscape. Through the RNCI Mackie’s is also helping to gain recognition for its own contribution – and to ensure that biodiversity features in the future of food production.

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CASE STUDY 8 LOCH FYNE OYSTERS Key: SME

Food & Drink

SD Staff Involvement Holistic Vision

Company Details Company Name: Loch Fyne Oysters Type of Business: Oyster & mussel farm, restaurants, food distribution and retail Size of company: 120 employees Parent company: n/a Location: Loch Fyne Contact: Andy Lane, Director Summary of Approach to Biodiversity Twenty-five years ago a road-side stall opened at Loch Fyne in Argyll, selling farmed oysters. The idea and the company grew and today the company is known for its line of quality fish and meat products across the UK through its food distribution business and over 20 restaurants. Engaging 120 employees, who also jointly own the company, Loch Fyne Oysters has strived to build not only a sustainable business but also a thriving local community and economy. Along the way, this enterprise has also contributed positively to the ecology and biodiversity of Argyll. Key Features The company is guided by a philosophy incorporating Total Sustainability into its business. This translates into discrete marketing, delivering quality products, investing in employee development and also to minimising environmental impact. To implement its policy, Loch Fyne Oysters has set itself a target to be at least ‘neutral’ in terms of its net environmental effects by 2005, and to strive to make a positive contribution towards biodiversity and the environment. The effects of the farming practices of Loch Fyne Oysters have been studied by Stirling University and findings are confirming an increase in biodiversity in both the mussel and oyster fisheries (which are attracting butterfish, shrimp, and eels). Unlike fish, oysters and mussels are filter feeders, leaving no residues on the sea floor and actually attracting a wide range of fish. Ropes on which mussels are attached act as a sort of floating reef – and make the top of the Loch inaccessible to fishermen! Other fish sold by Loch Fyne is purchased from sustainable sources. Local langoustines are creel caught, with no sea-bed damage or by-catch. Salmon is bought in from sources accredited by the RSPCA’s ‘Freedom Foods’ organisation.5 Loch Fyne has been expanding its business to include meat and game and other food products from Argyll. Building on its strategy of engaging with suppliers, a network of over 5 http://www.freedomfood.co.uk

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50 suppliers has been set up, within the Argyll zone, developing a market for these local businesses as well as working together to improve sustainable farming practices. The company does much more – thinking ‘sustainability’ in all of its activities, it operates only one car and one delivery lorry. To offset its carbon emissions, the company is contributing funds to a woodland regeneration scheme behind its restaurant and shop on Loch Fyne. It has applied to receive its electricity supply from an Argyll wind-farm development and is embarking on the ISO 14001 Environmental Management System certification. Benefits Loch Fyne Oysters sustainable approach to business has helped to increase biodiversity, grow the economy and support the community in Argyll. Challenging traditional fishing practices, the company is helping to address the problem of depleted fish stocks, damaged ecosystems and deteriorating fishing economies. For Loch Fyne Oysters their approach makes business sense. In all its activities, there is a gain not only for the environment, economy or society, but also for the company itself. Demonstrating that the company’s views are not maverick but mainstream, addressing customer needs and providing good quality products, the business has cut out a market niche for itself. Through developing careful relationships with suppliers, the company is helping to meet its procurement needs – and market demand – while providing an incentive to local farmers to run sustainable businesses themselves. Analysis is also showing that in fact, the measures the company takes cost it little more in financial terms too!

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CASE STUDY 9 LOCH DUART Key: SME

Food & Drink

SD, Marketing Innovation

Company Details Company Name: Loch Duart Type of Business: Fish farming and export Size of company: 30 employees, export to 7 countries Parent company: n/a Location: Scourie Contact: Nick Joy, Managing Director Summary of Approach to Biodiversity Loch Duart Ltd has a strong philosophy supporting sustainability. In addition to meeting minimum regulatory requirements, it has an Environmental Policy which states its commitment to the environment.

“LDL recognises that in our day to day operations we impact on the environment. We have identified a series of significant aspects and are committed to reducing our effects on the environment through continual improvement and prevention of pollution.” Nicholas H. Joy, Managing Director. 6

The policy provides a lead for its Environmental Management System as well as certification standards. Ultimately, all decisions are business driven and the company is actively marketing its product and operations through its environmental achievements. Overriding Philosophy Regulation, Licensing, ISO 14001 & Fallowing Model Monitoring by SEPA

STRONG BRAND of SUSTAINABILITY Key Features Loch Duart ‘best practice’ principles help the company to implement this policy and carry out production methods which are beneficial to biodiversity. These practices include:

6 http://www.lochduart.com

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• A year-long fallowing policy which maximises the health and welfare of the fish and minimises environmental impact.

• Significantly lower stocking densities than current industry standards and specifications. • A feeding regime mimicking the irregular ‘natural’ feeding of fish, allowing for periods of

rest and thus reducing feed waste. • No growth promoters, antibiotics or net anti-foulant agents are used. • All feed comes from sustainable non-GM sources • All stock is traceable to eggs and forebears.

The production method at Loch Duart is based on two hatcheries in three sea lochs, leaving one fallow each year. As in traditional rotation in land farming, one full year allows natural cleansing and regeneration. Year 2003 In Production: Calbha, Laxford Fallow: Badcall Year 2004 In Production: Badcall, Calbha Fallow: Laxford Year 2005 In Production: Laxford, Badcall Fallow: Calbha

In order to gain brand recognition, Loch Duart decided to pursue certification. It chose the RSPCA’s Freedom Food welfare scheme7 which it helped to develop and which covers all aspects of salmon rearing. It is also a member of Scottish Quality Salmon (SQS) and has won has an award in the Marine Innovation Category of the Highland Biodiversity Project awards. In addition to its environmental policy, Loch Duart has recently become ISO 14001 certified. While the certification process made little difference in terms of existing operations, the company found that they did learn more lessons about how to manage minor impacts. Compliance with regulations, standards and certification schemes takes time and effort, requiring patience and dedication to write and rewrite policies and practices. At Loch Duart, this investment is tied in closely with the company’s marketing strategy, which aims to build a strong brand image and develop ways of securing that brand. Benefits Investing in sustainability and raising brand and marketing awareness for their salmon helps Loch Duart to sell to specific markets in the UK and overseas. Loch Duart’s Managing Director acknowledges that investing in a sustainable salmon farm is a long-term strategy - but not without risk. He shrugs it off as not too much of a cause for concern even though it takes four years to produce a fully-grown salmon. The ultimate measure of sustainability for the company is whether it will be around in one hundred years, and that depends on safeguarding not only short-term profits, but also the survival of natural resources.

7 http://www.freedomfood.co.uk

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CASE STUDY 10 DIAGEO Key: Int’l Corp

Food & Drink

CSR Reporting CBAP Staff Involvement Partnerships

Company Details Company Name: Diageo Type of Business: Premium drinks manufacturer and marketing Size of company: 24, 561 employees worldwide with £9.4 billion annual turnover Parent company: n/a Location: Manufacturing facilities in 17 countries; marketing and distribution in

180 countries. In Scotland, 27 malt distilleries, two grain distilleries, four maltings and 15 warehousing, packaging and office locations.

Contact: Charles McGill, Environment Manager Summary of Approach to Biodiversity Diageo, formed from a merger of Grand Met and Guinness, is committed to being a good corporate citizen and has a history of supporting environmental projects. The Diageo environmental policy commits the company, among other things, to manage its global operations in a way that supports biodiversity, and to educate and motivate employees to conduct activities in an environmentally responsible manner. The policy is backed up by a set of environmental ‘standards’ which each business area is required to meet through their environmental management system. These standards are an integral part of the company’s risk management framework and are subject to an assurance process. The company is in the process of developing a standard on biodiversity, which will enable different parts of the company to develop and manage biodiversity activities which are relevant to their business operations and their local area. Key Features An important part of Diageo’s culture is the value ‘be the best’; and employees are encouraged to take responsibility and pride in what they do. Biodiversity is an appealing theme which can help get people involved in the broader environmental agenda. Diageo’s ‘Water of Life’ programme, which grew out of the link between water and the company’s products, has been used to support a number of biodiversity conservation projects around the world. It has also been used to encourage staff across the company to become more environmentally considerate in their workplace. Diageo has a history of environmental action and awareness through employee involvement. In 2002 the company launched an employee programme with Earthwatch Institute (Europe).8 This programme, now in its second year, enables 15 Diageo employees each year - from all levels and all operations - to participate in an international Earthwatch biodiversity conservation project. Upon their return to their home countries, the employees act as 8 http://www.earthwatch.org/europe and http://www.earthwatch.org/europe/corporate

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environmental champions and develop conservation projects at their workplace, involving their colleagues in important local issues, and sharing their Earthwatch experience as widely as possible. At Linkwood Distillery in Elgin, staff set up a small nature reserve around the water reservoir, encouraging native grasses and woods. Species found on the site have been catalogued and an educational board was erected along the footpath next to the distillery. A nature reserve was also set up at Royal Lochnagar Distillery, covering 22 acres around the site’s water reserves. The woodland is home to a variety of species including a range of birds, bats, frogs, toads and red squirrels. The project aims to show that wildlife can exist in harmony with work at the distillery, and aims to encourage the interest of visitors, providing educational opportunities for local groups. The Diageo-owned Gleneagles Hotel estate has an ecological management plan for its 850-acre estate, which includes 23 acres designated as sites of scientific interest and one site of special scientific interest. Since the plan was introduced, wildlife has flourished on the estate and around the golf courses with important habitats including heather, grassland and deep bogs and mires, containing plant life including southern marsh orchids, cranberry, bog cotton and a wide diversity of insect life.9 At the Diageo Brand Technical Centre in Clackmannanshire, over 1,500 trees were planted around the facility, providing habitat for birds and other wildlife. The project was completed in partnership with the Scottish Wildlife Trust and the Forth Valley Conservation Team who helped design, manage and implement the initiative. The trees now provide an attractive screen around part of the site and illustrate what can be done for biodiversity on office premises. Benefits For Diageo the benefits of its biodiversity work extend beyond employee motivation and meeting environmental objectives. Biodiversity is a good way of engaging people in wider environmental issues, as well as giving them pride in their company and in what they are doing. ‘It isn’t hard to get people to do things for the benefit of the environment,’ says Charles McGill, Environment Manager at Diageo. ‘The role of business is to support and enable employees to take responsibility for their actions.’ According to Diageo’s philosophy, if you want to be the best, encouraging biodiversity is part of it!

9See Gleneagles web site: http://www.gleneagles.com/introduction/introduction_html/mediainfo_nature.html

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CASE STUDY 11 AGGREGATES INDUSTRIES PLC Key: Int’l Corp

Quarrying Company and Site BAPs

Partnership / work with Community Company Details Company Name: Aggregates Industries plc Type of Business: UK based aggregates and construction materials provider Size of company: Turnover of £1.2 billion, approximately 12,000 employees Parent company: n/a Location: HQ in Leicestershire

Over 50 operating locations in Scotland spread throughout the central belt, along the east coast and as remote as the Western Isles.

Contact: Miles Watkins, Head of Quality and Environment Summary of Approach to Biodiversity Aggregate Industries, Scotland’s largest producer of aggregates, has identified biodiversity as one of three major environmental aspects within its ISO 14001 certified Environment Management System. In 2002 the company published a Company Biodiversity Action Plan (CBAP) outlining its targets, which it is implementing across the company and on its sites. The CBAP is available to the general public through the company’s web site10 and progress towards achieving the targets is reported annually in Aggregate Industries plc Sustainability Report. The company operates 71 quarries, over 50% of which have developed Site Biodiversity Action Plans. Many of these sites are responsible for designated conservation areas including Sites of Special Scientific Interest (SSSI) (biological and geological), RAMSAR and Special Protected Areas which are managed as part of the Site BAPs. Key Features Stakeholder Engagement Part of the strategy for achieving the overall aim of the Aggregates Industries CBAP, to enable the company to help meet the objectives of the UKBAP, is to work closely with various stakeholder groups at local, national and UK levels. The company’s Group Environmental Manager joined the Scottish Biodiversity Forum’s Business Working Group and Aggregate Industries is a member of the Minerals and Nature Conservation Forum. The company sponsored the National Biodiversity Network Annual Conference held in London in 2003. The CBAP was compiled with input from SNH, RSPB, the Wildlife Trusts and English Nature. Site BAPs are also developed with input from the local community, which is involved in the implementation of the plans. For instance at Fledmyre Quarry, Forfar, school children have participated in the restoration of the worked quarry to a nature reserve. These children did 10 http://www.aggregate-uk.com/env_biodiversity.html

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not just include those from the local school but also from around the world, with the assistance of a well established charity group. An educational foundation, the Round Square, has been involved in the site restoration for several years and the young people have built floating islands, drystone walls and a bird hide. Fledmyre also has the Restenneth Moss SSSI adjacent to the quarry and Aggregate Industries has helped SNH monitor the condition of it over time. The outcome of these partnerships includes deeper mutual understanding of the community’s and company’s objectives and expectations as well as close collaboration on achieving biodiversity impacts beneficial to the local community. Site Biodiversity Action Plans The sites in Scotland which have compiled Site BAPs followed a set procedure recommended by the company’s overall CBAP. This included carrying out ecological surveys – mainly Phase 1 Habitat Surveys11 and then preparing detailed management plans. These surveys and plans were done with the assistance of organisations and individuals, such as Wildlife Trusts, with local biodiversity expertise. Data collected is being shared throughout the company as well as with the local conservation groups by feeding into the Local Biodiversity Action Plans (LBAPs). At Fledmyre Quarry in Angus, the Site Manager worked closely with the neighbours, who were also the land owners, to draw up plans for restoring the quarry. A restoration plan had already been agreed and submitted to the planners but a more environmentally beneficial use was desired than land for grazing. Work began in the 1990’s when the quarry was still operational in servicing local markets with its sand and gravel products. As previously mentioned, a large number of school children have been actively involved with the project, as well as with SNH and the Scottish Wildlife Trust. This is helping the Local Biodiversity Partnership achieve targets laid out in their LBAP. Local community groups became involved in the restoration work at Forfar Quarry through the determination of the site manager to demonstrate his proactive citizenship. By being actively involved in the future of the quarry, the manager and staff at Fledmyre are respected by the local community and they continue to support each other through various events and activities. In the long term, it is hoped that the restored site will become a recognised and active nature reserve and educational centre, and the involvement of the local community at the onset will help ensure that this sustainable future is achieved. Other key features Biodiversity is often seen as an issue that is tackled at the restoration stage of quarrying, but it should be integral to the development of the site over time. The on-going biodiversity programme at Aggregate Industries seeks to rise to this challenge and maximize the contribution that the company can make to the natural environment. Also, as can be seen from the Fledmyre example, biodiversity management provides a solid link with the community which businesses often find difficult to create. Benefits For Aggregate Industries, the potential benefits of biodiversity work have been clear from the very onset. Working with groups like the RSPB, Wildlife Trusts and SNH helps to build relationships and understanding between the industry and its stakeholders. The company

11 More information about Phase 1 Habitat Surveys is available from http://www.businessandbiodiversity.org/action_plans.html

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believes that society’s needs for aggregates materials and for biodiversity can be achieved by balancing these needs together.

“The potentially conflicting requirements of economic, environmental and social compliance present a direct challenge to us as consumers of large quantities of natural materials. Balancing these three elements of sustainability needs to be integral to our business planning. Peter Tom, Group Chief Executive, Aggregate Industries.” 12

Through improving environmental performance, including impacts on biodiversity, the company is helping the industry as a whole, as well as its own business, drive towards sustainable construction and quarrying.

12 Quoted from Chief Executive’s Statement, Aggregate Industries plc Sustainability Report 2003.

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CASE STUDY 12 SCOTTISH POWER Key: Int’l Corp

Utilities Policy

Company and Site BAPs Work with LBAPs Training / Education

Company Details Company Name: Scottish Power Type of Business: Scottish based international electricity generation and supply

company Size of company: 14,000 employees, 5 million customers and £5.5 billion sales in US

and USA Parent company: n/a Location: Glasgow Contact: David Anderson, Business Transformation Director, Energy

Management. Summary of Approach to Biodiversity Scottish Power strives to identify and minimise the impact of its activities on biodiversity through its power stations, transmission business and mining operations. In order to achieve this objective, the company has devised a framework for reducing the risk to habitats during routine operations as well as development. This framework consists of a Biodiversity Policy, Biodiversity Action Plans, building biodiversity protection into every day activities, developing biodiversity initiatives on sites and creating mechanisms for effectively protecting and managing biodiversity. The biodiversity policy has been written in conjunction with Scottish Power’s international operations. “The biodiversity policy challenges people to think about what they are doing and how to improve their actions. It provides an explicit driver for action on biodiversity which forms a part of our higher aims of achieving high performance in terms of sustainability and the environment.” David Anderson, Business Transformation Director of Energy Management, Scottish Power. A central environmental committee sets the policy, but individual businesses are tasked with its implementation by devising and implementing strategies to achieve the broad goals set out in the policy. The activities relating to biodiversity can vary widely depending on the business unit or site, in line with the priorities and main impacts of that unit’s operations. Sites with significant land holdings and impacts on biodiversity have Site BAPs developed for them. Biodiversity-related actions applicable across the entire company are consolidated into a higher level Company BAP which includes activities such as awareness-raising, training and monitoring. One of the key indicators in the Company BAP is the percentage of the Group’s sites which have site BAPs.

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Key Features Mainstreaming biodiversity Power Systems, the company responsible for transmission and distribution of electricity within the Scottish Power UK Group, does not own much land but operates through placing and maintaining cables and managing sub-stations on land leased from others. In order to minimise effects on biodiversity it has adopted a precautionary approach through which it anticipates the presence of sensitive sites and species, and mitigates the effect that such operations could have on them. Rather than being singled out as a separate issue, biodiversity is incorporated into the general Health, Safety and Environment Policy and is dealt with as a broad issue across the company’s policies, training programmes, activities and monitoring systems. The company works with its stakeholders right from initial planning stages, incorporates biodiversity into employee’s planning and daily work routine, and sets biodiversity-related key performance indicators, such as the amount of aviary hit (birds flying into overhead cables) to be monitored. Planning for biodiversity Planning new transmission routes requires careful assessment of impacts to wildlife in establishing the route, as well as long-term effects of overhead cables. Power Systems carries out a full Environmental Impact Assessment on each of its proposed new routes in order to ensure that when it comes to actually gaining approval for a particular routing plan, every eventuality has already been considered and the company is really proposing the best of the possible alternatives. The company’s Geographic Information System collects and monitors data on biodiversity, which adds to the efficiency of maintaining overhead lines and pylons, and is helping to reduce avian deaths by enabling planning of new transmission routes through minimal impact areas. Through this meticulous process, which involves assessing wildlife and habitat impacts of routing, the company has developed a good reputation among stakeholders in the planning process. A similar process is followed in Scottish Power’s Wind Energy business - Strategic Transactions. Each new development involves compiling habitat management plans, which then form part of the planning application. The aim of each habitat management plan is to contribute to the local Biodiversity Action Plans, and enhance biodiversity on sites to meet UKBAP targets and priorities. Working with others Scottish Power is working at all levels of the biodiversity action planning process in Scotland. The company has been represented on the Scottish Biodiversity Forum, where it helped to provide a business perspective, write a leaflet and produce a presentation to assist other businesses to understand and become involved with biodiversity conservation. On a local level, the company is represented on the Steering Group of the East Lothian Biodiversity Partnership, where its input has provided new skills and a business perspective to the planning process. In Fife, staff from Power Systems helped to re-launch the second Biodiversity Action Plan. The company also solicits advice and input from local experts and stakeholders, ecological consultants and conservation organisations such as the RSPB, and the British Trust for

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Ornithology (BTO). In this way local expertise is captured and reflected in the company’s plans, ensuring more than minimum legal compliance and coming up with practical solutions which are locally relevant. For example, during the biodiversity assessment which was carried out for Glenlee Power Station in Dumfries and Galloway, the local council, Scottish Natural Heritage (SNH), the Royal Society for the Protection of Birds (RSPB), and the Scottish Environment Protection Agency (SEPA), the Vincent Wildlife Trust, the Deer Commission for Scotland, the New Galloway Angling Association and the Galloway Fisheries Trust were all consulted. At Kintyre, the company has employed consultants, and a Grouse Officer, and has liaised with the BTO and RSPB to evaluate issues relating to birds. Supporting Conservation Projects Another way in which Scottish Power has been making a positive contribution to biodiversity is through supporting community projects. In Fife and Greenock, the company is supporting a project involving primary school pupils and staff in designing gardens and playgrounds. By bringing in ecological consultants, the schools have been able to set up gardens containing indigenous species, adding to both the aesthetic and educational value of the grounds. A number of countryside rangers around Scotland have been sponsored by the company, for instance in East Lothian and at the Forth of Clyde. The rangers’ work for the local council or the Scottish Wildlife Trust is further facilitated through contributions of a vehicle and other resources. Site Biodiversity Action Plans Scottish Power has a well developed process for preparing Site Biodiversity Action Plans which has been applied to a number of different sites, including Galloway, Cockenzie and Longannet. These sites were selected after a general stock-take and prioritisation of existing activities, size and areas with conservation criteria. Subsequently, ecological surveys were carried out on each of the sites to determine the presence of important habitats and species. Action plans were developed in consultation with Local BAPs and rangers for each of the priority species and habitats. These species and habitat action plans were then combined into one Site BAP which is monitored and reviewed regularly. At the Townhill transmission substation in Fife, the company developed a site Biodiversity Action Plan which takes into account an adjacent nature reserve, the Fife Biodiversity Action Plan and pre-existing community forest plantings. Taking the advice of an ecological consultancy, Power Systems drew up a plan and planted new trees as well as grasses and wild-flowers. While the existing plan only covers the duration of the company’s management of the site, negotiations are underway to incorporate the area into the adjacent reserve. Benefits Scottish Power’s history of managing biodiversity well has paid for itself in terms of the company’s reputation. The company’s planning process, which incorporates environmental impact assessments of all development options, has helped its operating companies obtain planning permission for new transmission routes and wind farms. Scottish Power is now reputed to have the highest rate of success in obtaining planning permission from land owners and authorities. Scottish Power’s environmental management system and policy has also helped to drive biodiversity forward as an issue within the company. Working on biodiversity related issues has, in turn, help to develop the company’s good reputation and standing in the local community.

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CASE STUDY 13 SCOTTISH AND SOUTHERN ENERGY Key: Int’l Corp

Utilities Policy

EMS Training / Education

Company Details Company Name: Scottish & Southern Energy Type of Business: UK based electricity generating and supply company Size of company: Turnover - £4,113.6 m. Employee Numbers – 9,474 Parent company: Scottish & Southern Energy Location: Inveralmond House

200 Dunkeld Road Perth PH1 3AQ

Contact: David Simpson, Corporate Environmental Manager Summary of Approach to Biodiversity With a responsibility for 5,000 MW of generating capacity and 123,000 km of electrical network across the UK, Scottish and Southern Energy impacts on species and habitats through the way in which the company operates its plants, manages water courses, new developments and refurbishes plant, equipment and lines. Through its environmental policy, which specifically covers biodiversity, the company acknowledges its responsibility to manage these impacts in order to minimise environmental risks. This environmental policy is implemented through its Environmental Management System (EMS) which includes procedures to be followed by all employees and in engaging contractors. The EMS is based on the ISO 14001 standard with their Generation business being formally certified. Key Features Work Plans The way in which Scottish and Southern Energy’s environmental policy is to be implemented is detailed in the company’s Environmental Work Programme which includes sections specifically addressing biodiversity issues. For instance, the work plan stipulates that any work carried out in and around areas at risk such as Special Protected Areas (SPAs), Special Areas of Conservation (SACs) and Special Sites of Scientific Interest (SSSIs) requires that an environmental risk assessment be carried out. Major project developments call for full Environmental Impact Reports. Wildlife and nature conservation issues are covered throughout the Environmental Work Plan, touching on all of the company’s operations. The company has summarised work activities in terms of their impacts on various habitats and suggests actions required in order to proceed with these activities. These are presented in an easy to follow matrix helping the company to plan and schedule work and avoid damage or disturbances to wildlife.

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Example of the activities matrix from Scottish and Southern Energy:

Activity Woo

dlan

d

Gra

ssla

nd

Hea

thla

nd

Wet

land

Coa

st

Avoid removing deadwood and where suitable provide woodpiles √ Plan to carry out most work in dryer months (July – September) √ Carry out work outside bird breeding season √ Employee awareness and training The Health, Safety and Environment processes are designed to raise awareness and monitor and test this awareness by auditing on the ground. In order to make sure that all staff were properly prepared to deal with environmental related issues, Scottish and Southern Energy developed a training programme through which 1,300 managers, team leaders and directors have passed, and who in turn are responsible for passing what they learned on to the rest of the company’s staff. Every employee at Scottish and Southern Energy has a copy of the company’s ‘Safety and Environmental Manual’ which includes information about safety and the environment, including biodiversity, as well as an ‘Audit Form’ which is completed by supervisors on site. Hydro-electric power generation SSE’s hydro-electric power stations produced 22% of the UK’s renewable energy in 2002/2003. Many of the power stations operate within areas which have environmental designations, some of which have been created by the operation of the station or scheme. For example, in the Tummel hydro-electric scheme at Dulastair Reservoir, a SSSI has been created. Similarly at Achanalt their operation maintains an SPA. In both cases the company is managing water levels to help provide environments conducive to breeding for many species of birds. Achanalt is an important part of the most extensive river valley floodplain in Easter Ross. The marshes support a range of wet grassland and fen communities and provide ideal nesting habitat for a range of wildfowl and wader species. The company has a statutory duty to provide minimum flows in many rivers which are impacted by Hydro. They also have an obligation to provide fish pass facilities for migrating salmonids at many of our dams. These flows and fish passes maintain a minimum wetted width in the rivers and allow access to spawning areas for salmon and sea trout. The company has developed and operates fish counters which provide valuable information on salmon stocks to fishery managers, government bodies and scientists. The data held for some sites dates back to the 1950’s. We currently operate 16 counters throughout the north of Scotland and have a five year programme to replace all of these counters with a new and upgraded model. Green Energy SSE is working with the RSPB on a green energy programme where money raised from ‘RSPB Energy’, generated from SSE’s renewable sources, goes towards funds used for

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protecting wildlife habitats and supporting the development of local renewable energy projects across Britain. Benefits One of the major outcomes of SSE’s work on biodiversity is raised awareness about wildlife related issues. Through increasing understanding of biodiversity throughout the company and integrating considerations into day-to-day tasks of staff, responsible management and treatment of biodiversity is made possible. This is the same approach which the company takes with its contractors. The company’s environmental policy, signed off in October 2002 has provided the leverage needed to institute the importance of awareness raising. SSE also believes in widening the impact of biodiversity action through participating in forums such as the Scottish Biodiversity Forum, as well as the Scottish Utilities Forum’s environmental mentoring project, thus helping others to make a positive contribution.

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CASE STUDY 14 THE ROYAL BANK OF SCOTLAND Key: Int’l Corp

Finance Site BAP

Stakeholder Involvement Sustainability

Company Details Company Name: The Royal Bank of Scotland Type of Business: Finance and Banking Size of company: 110,000 employees worldwide, 6 companies globally, over 1,000 sites

across UK and manages 3,500 properties Parent company: n/a Location: Headquartered at Gogarburn, Edinburgh Contact: David Graham, Environmental Manager Summary of Approach to Biodiversity The Royal Bank of Scotland Group is one of Europe's leading financial services groups employing over 110,000 staff worldwide. The Group has been developing its environmental management practices since the late 1980's and is committed to the continuing challenge of evolving best environmental practice through increasing awareness, education and the development of innovative solutions. The Royal Bank of Scotland Group impacts on the environment through its operations and through the core business of lending money to customers. The company has developed an environmental policy which presents a framework allowing RBS businesses to conduct operations responsibly and perform to the highest standards of good corporate citizenship. Managers, staff and directors have a joint responsibility to ensuring that the company achieves its environmental objectives. Through the company’s environmental management system the company oversees internal operations, and environmental considerations form an important part of the decision-making process when lending to customers. Based on ISO14001 principles, the planning for, operation, measurement and review of environmental performance is integrated into the bank’s mainstream management systems.13

Key Features Setting Environmentally Sound Credit and Lending Criteria RBS aims to ensure the robustness of its environmental credit and lending criteria and consistency with its environmental policy. Recognising the complexity of this area, RBS are working with other institutions such as the British Bankers' Association's Environmental Issues Advisory Panel and the United Nations Environment Programme, Financial Sector

13 http://www.rbs.co.uk/Group_Information/Corporate_Responsibility/Environment/Environmental_Report/default.htm

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Initiative. The company is also monitoring the development of guidance from many other sources including the CBI and the Association of British Insurers. RBS’ formal process for evaluating risk includes assessing environmental impacts as part of the credit assessment and approval process. The company is guided by a set of environmental criteria which include addressing the following issues: • Resource depletion • Climate change • Pollution • Waste • Effects on human health • Loss of species and habitat Relationship Managers have access to support guidance, which includes a sectoral environmental risk model, based on these criteria. Site development and management Demonstrating the company’s commitment to sustainable development has been fundamental to the planning and development of RBS’ new headquarters at Gogarburn. RBS contracted RPS, a professional consultant, to advise on sustainability of the project, including an assessment of all suppliers and contractors. An ecological survey was carried out of the site using Phase 1 Habitat surveying methodology throughout different periods in 2001 and 2002. Survey data of birds, habitats, bats and other mammals was ‘ranked’ against international, national and local biodiversity action plan (BAP) priorities. The results were used to draw up a habitat management plan which makes up part of the overall site management plan. The habitat management plan underwent consultation with major stakeholders including the Scottish Environment Protection Agency, Scottish Natural Heritage, the Council for Natural Heritage and British Airports Authority (BAA) as well as the Garden History Society, Wildlife Trusts, Badger group, Otter group, RSPB, and the Scottish Ornithological Society. A site biodiversity action plan was agreed upon and is divided into three stages – an initial management plan, the construction plan, and an operations plan once the building is completed. As a result of its efforts to make the new headquarters development sustainable and the process transparent, RBS group found that when it came to obtaining planning permission, many of the challenges had already been discussed and worked out. Planning permission was granted in Oct 2002, whereupon work started. A key feature of the environmental management of the entire project has been the formation of a committee of managers from the numerous contractors employed on the project. Together they discuss issues as they arise, and ways to address them. In this way, decisions surrounding issues such as waste recycling, application of concrete and retention of trees are made quickly and efficiently, ensuring that environmental impacts are minimised during the construction process. The aim of the habitat management plan is to increase the biodiversity value of the site. This involves protecting and reintroducing some species, while controlling invasive species such as hog wort and square rooted leek. While there has been the inevitable impact on some species – particularly birds – during construction, other positive effects of management are already evident. For example, some demolition efforts had been deferred to allow nesting birds to hatch and rear their young. Otters, water voles and kingfishers have been spotted and it is planned to enhance their habitats with holds and holes. The baseline data collected

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during the initial ecological survey is now also being used to monitor and implement conservation measures throughout construction. Staying informed RBS recognises that in order to address important issues such as biodiversity, the company has to understand about them and raise awareness internally amongst employees and externally amongst its stakeholders. The company has been a longstanding member and participant in a number of forums which discuss biodiversity, including Earthwatch (Europe’s) Corporate Environmental Responsibility Group.14

Benefits For The Royal Bank of Scotland, addressing biodiversity issues as part of managing its direct and indirect environmental impact reduces the company’s exposure to financial risk, while raising its potential to fulfil the criteria of sustainability. The company realises that nature and biodiversity is an issue of growing importance to the shareholders, customers, staff and suppliers of RBS and that by addressing these issues it is potentially raising its profile among these stakeholders. While the road to sustainability may contain many challenges, there are also many lessons to be learned and opportunities to be taken. Developing a site for its new Headquarters taught the employees involved in the project of the advantages of transparency, working openly with stakeholders and engaging in dialogue. The clear benefits in this case were from the planning application process which proved to be relatively smooth for the company.

14 http://www.earthwatch.org/europe/corporate/aboutcerg.html

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CASE STUDY 15 BP PLC Key: Int’l Corp

Extraction Resource sharing

Supporting conservation initiatives Company Details Company Name: BP plc Type of Business: Oil, gas and energy Size of company: £96 billion annual turnover and 115,000 employees Parent company: BP plc Location: London Contact: Gordon Harvey, BP Regional SHE Team

Sean Young, BP Deepwater Environmental Advisor Summary of Approach to Biodiversity BP’s biodiversity strategy aims to incorporate biodiversity as an integral part of its operations and environmental management systems. As part of this global biodiversity strategy, BP is developing Country Biodiversity Profiles in conjunction with UNEP-WCMC, which will outline conservation priorities, map sensitive habitats and identify biodiversity resources and issues for its operations in different countries. The company is also interested in how country operations can contribute towards national biodiversity action plans and strategies, through development of Biodiversity Action Plans at some of its major sites. Supporting conservation work on the ground In Scotland, BP is contributing to biodiversity through its support of a number of initiatives across the country. Their support of the North-East Biodiversity Action Plan is helping the partnership develop a marine action plan. Working with the John Muir Trust, BP has been helping with conservation work on Mount Schiehallion. BP employees have taken part in weekend projects, building foot-paths, bridges and dry-stone walling, contributing their time while BP provided additional funds. In return, staff and their families have had an opportunity to learn more about conservation and have a fun weekend. In an innovative move to address climate change issues as well as biodiversity, BP has entered into an alliance with the Woodland Trust, RSPB and Forest Enterprise to support projects which sequester carbon through tree planting, as part of the Scottish Forest Alliance programme. This programme consists of nine projects covering a total of 59 km2, with around 5 million trees to be planted or naturally regenerated. About 30% of the plantings are to be native Scots pine, with a further 10% reserved as other woodland. To date, a total of 1.2 million trees have already been planted, with additional funding supporting surveying, data analysis, and planning and management tasks. Each of the Alliance members is responsible for monitoring the biodiversity effects of the forestry work, and the Alliance is examining ways of measuring the change in carbon dioxide sequestration through tree growth. The project has been designed to ensure it is sustainable, with ongoing management support from BP and the other partners. A standing security on the land for the next 200 years ensures the trees will be maintained for that period. An important component of all projects includes developing good relations with the surrounding community, as well as helping

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economic development through the use of local contractors. For BP, the benefits from this programme are many, but include helping the company contribute to reducing climate change as well as contributing to the UK BAP. Deep Water Bio-Atlas (www.biodeep.com) BP’s UK Continental Shelf Operations comprise installations, sub-sea developments and pipelines in the North Sea and West of Shetland in the Atlantic frontier. Operations come into contact with a wide range of marine habitats and species, and the company’s contribution to biodiversity research is providing more than just valuable data. Following the lead of its operations in Mexico, BP’s ‘Developing Business Unit’ came up with an idea which would not only prove to help biodiversity conservation through contributing to scientific research, but provided an exciting new way for employees to become involved. The primary purpose for the company’s Remote Operated Vehicles (ROVs) is to install and maintain equipment on the seabed; but the Deep Water Bio-Atlas project makes further use of them as tools to photograph marine life. Linking with the University of Aberdeen and Southampton Oceanography Centre, the project provides scientists with a regular supply of photographic data as well as access to the vessels from which the pictures are taken. Since the project began, three scientific papers citing new findings in deep water marine biology have already been published. With further research underway, the project is looking for additional funding to take the research forward. The benefits to BP have been marked. Employees involved in the project show improved morale and interest in their job, and the provision of free new learning opportunities from scientists who conduct presentations and send information on their findings to both onshore and offshore personnel. The ROV operators have received additional training and their new responsibility gives them an added sense of achievement. Meanwhile the costs to BP have been negligible. All the resources provided would have been used to carry out routine work anyway, and the additional data collection has not actually added any new requirements. The benefits to the company include the good relationship BP has now developed with leading scientific institutes with ocean laboratory facilities, being able to provide research into the little understood field of deep-water biodiversity, as well as positive publicity through the publication of scientific papers.

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CASE STUDY 16 ORKNEY AGGREGATES LTD Key: Int’l Corp

Quarrying

Stakeholder Involvement Site BAP

Company Details Company Name: Orkney Aggregates Ltd Type of Business: Quarry Size of company: 27 Full Time staff; Annual Turnover £2.5 million Parent company: n/a Location: Orkney Contact: Roy Brown Summary of Approach to Biodiversity Orkney Aggregates Ltd is currently working in partnership with Orkney’s Local Biodiversity Group to put together a site biodiversity action plan (BAP). To date, much biodiversity work has been undertaken on an ad-hoc basis, including tree-planting to contribute to habitat enhancement around the quarry site. Orkney Aggregates Ltd has been participating in the ‘Business Wins’15 project, with a local consultant of North Environmental Consultancy, to understand Environmental Management Systems and their benefits and put together an informal management system. Key Features Site Enhancement Over the last five years Orkney Aggregates has been working with the Orkney Woodland Group Officer as part of the Millennium Forest for Scotland Project and has planted over 1100 trees. The company has also worked with a landscape architect to assess the habitats and landscape around the quarry as well as to look at the visual impact of the quarry site. For instance, a new stretch of pathway has been created for the public and a botanical assessment of the lands immediately surrounding the quarry has been completed. Working with Stakeholders Orkney Community Biodiversity Partnership, along with the Orkney Woodland Group Officer, is currently working to produce a BAP with Orkney Aggregates. With much potential identified in terms of biodiversity, the aim of the BAP will be to match the projects they have done to the targets set out by the Orkney Community Biodiversity Project in the HAPs. This will include a number of recommendations including: • Survey by RSPB into the bird life in the quarry and the surrounding land; • Work to reinstate the heathland on the east side of the quarry; • Tree-planting of willow cuttings near the burn and working with the Orkney Woodland

Group Officer;

15 http://www.sepa.org.uk/wastemin/initiatives/north/wins.htm

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• Habitat mapping of the land holdings; • Consideration of RSS or other agri-environment schemes if the site qualifies; • Burn habitat creation on the outflow from the quarry if this is considered acceptable

by SEPA. Working with Wildlife A number of wildlife initiatives have been started by the quarry owner with further activities planned for the future stimulated by the need to improve the quarry image. Work to assist birds, such as breeding fulmars that have chosen the quarry walls as their nesting site, is being carried out by workmen who collect fledglings and moving them outside of the quarry where it is easier for them to become airborne. Biodiversity has also benefited from the planting of many trees, helping achieve the targets of the Orkney Woodland Strategy and the LBAP Habitat Action Plans. Benefits Through its biodiversity programme, Orkney Aggregates hopes to gain more direction in their efforts in terms of working with the natural environment. Especially at this time when the quarry has applied for planning permission to extend, much of the biodiversity work undertaken to date by Orkney Aggregates is helping to improve public relations and image enhancement among the local community.

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