New age environmentalists are no longer the tree-hugging, hemp-wearing stereotypes they once were. They are now finance directors, chief executives and the boardroom as a whole.

Take, for example, British Airways and Ikea – two very different companies which have managed to not only cut their carbon emissions, but also reduce costs. Green means big business and big profits.

Ikea saves £100,000 annually at its Wembley branch simply by powering the store’s energy needs through recycled waste. Charlie Browne, environment manager at the Swedish retailer, stresses that there is no conflict between doing good business and being a good company.

Ingvar Kamprad is a die-hard environmentalist who founded the company by making sales calls on his bike. Since then the company has grown to have an annual turnover of about euro 13bn and environmental targets are part of its operational, consumer and staff targets.

Small steps
Browne is sure that a series of small steps can together make a big difference and the key to becoming an environmental company is to “enthuse cost-conscious managers. Find people in the business who know the value of a pound.”

Ikea environmental initiatives include:
• The Wembley store recycles 93% of its waste;
• All its branches receive their renewable energy from Npower;
• Auditing transport suppliers according to type of truck and fuel efficiency;
• Four stores have waste-to-energy technology and geothermal (energy generated from heat stored beneath the Earth’s surface);
• All its stores are to be supplied with 100% renewable energy for electricity and heating by 2012;
• Overall energy consumption to be reduced by 25% by 2012;
• Reduced the packaging on most of its products, saving money and waste;
• Achieved a nationwide recycling figure of 73% with a new target of 90% by 2008;
• Fleet changed to Honda Hybrids as well as an initiative with employees to receive discounts on buying their own Hybrids, and interest-free loans to convert their cars to liquid petroleum gas;
• Formerly used bio-degradable carrier bags, but now only sell re-usable bags, replacing them free of charge if they wear out;
• Encouraging consumers to order online rather than visit the branch so as to save on car journey emissions; and
• Gave its entire workforce a folding bicycle and low energy light bulbs, replacing them free of charge for the lifetime of their employment with the company.

Flying start
Meanwhile, British Airways set itself fuel efficiency targets in 1990 before even the Kyoto Protocol, with a target reduction of 30% between 1990 and 2010. Lead environmental spokesman at BA Paul Marston believes that investing in a green drive such as this will pay for itself several times over.

BA, which has just been given the keys to Terminal 5, has a team of in-house environmental advisers that has reduced the company’s energy requirement by better utilising its head office. The airline company installed better insulation and disposed of buildings if they were only half occupied. Marston says the company is “aware of our environmental responsibility, but we also have a financial interest too”.

BA environmental initiatives include:
• First airline to set public fuel efficiency targets in the 1990s and to date have met a reduction target of 28%;
• Has set a further target of 25% fuel efficiency between 2005-2025;
• Implemented an energy efficiency programme and overall has reduced energy usage by 20% in four years;
• Terminal 5 at Heathrow will provide heat and lighting, centrally powered by waste. This will satisfy 85% of its heating needs and save something in the region of 11,000 tons of C02 a year; and
• 70% of water needs will be met by rain and recycling water systems.

Useful links
Go to www.ike a-group.ikea.com/ corporate and click on ‘our responsibility’.

To find out more, go to www.ba.com, click on the information link and then on ‘respecting our world’.