Environmental (waste) compliance control systems for UK SMEs

While the ‘environment’ is often perceived as a heavily regulated area of business, in reality, directly regulated businesses represent a small proportion of the business community. This study aimed to evaluate and outline potential improvements to compliance controls for small and medium-sized enterprises (SMEs), particularly those involved in the waste sector. In total, 44 SMEs in England were interviewed/audited between April and September 2008. Using a UK-based system as a case-in-point, the Environment Agency's (EA) operational risk appraisal (Opra)/compliance assessment report (CAR) system was analysed. Environmental compliance performance indicators and an initial assessment methodology for SMEs were developed. The study showed: compliance with permitting legislation was poor in many areas; regulatory authorities are either unable/failing to implement their enforcement policies or are unable/failing to identify non-compliances due to the infrequency or limited nature of their inspections; improvements are needed to the EA Opra/CAR system since control measures are not fully taken into account when calculating risk. Recommendations to improve SME compliance controls include using internationally applicable general and specific compliance and non-compliance performance indicators, redesigning the Opra system, and using an initial assessment methodology based on understanding the hazardousness of SME categories, compliance levels and operator competency.