Brexit – what does it mean for the environment and your business?

The UK has voted to leave the EU in the recent referendum. This raises a number of questions for businesses, particularly with regards to environmental policy, much of which originates from the EU. Here at Investors in the Environment we don’t have all the answers, but in this article, we look at some of the key questions and challenges businesses will face in the coming months and years.

Firstly, there was widespread agreement in the environmental press and amongst members of organisations such as IEMA (the Institute of Environmental Management and Assessment) in the run-up to the referendum that environment and climate policy risked being “watered down” if we voted to leave. This means that environmental professionals now face a period of uncertainty and many have expressed concern.

A key challenge we face is that many people thought that a Brexit vote wouldn’t happen, so there is a lack of preparedness and many questions as to what will happen next for businesses and the environment. At the moment, there doesn’t seem to be a rush to take action, with a new Conservative leader being put in place before any further action is taken. Environment is likely to be low on the agenda, with economy and trade taking precedent and lengthy negotiations anticipated. Regulators have also stated that there will be no immediate change in approach, so at the moment it is business as usual and we don’t expect any changes to environmental policy for 2+ years.

In the coming years, there are likely to be a number of “gaps” as we adjust to life outside the EU. Much of our policy is called “referential drafting” where it is based on skeletal policy / legislation / guidance from Europe.  We will have to decide whether to keep, amend or replace this policy. We also have technical standards , international treaties, and new / incoming EU laws to think about and it is unclear what we will be required to adhere to during our transition period.

Amongst this “policy vacuum” there is an opportunity for businesses and environmental professionals to help shape and transform the UK’s environment and climate policy. We may have greater freedom to drive and lead environmental change and it is up to us to lobby for this and provide our experience and expertise to ensure that this happens. With so much to work on, the government may well utilise the role of industry associations, the private sector and NGOs to provide resources, capability and capacity.

So what should you do now? It’s time to dig out those legal registers! Have a look at where your existing controls apply and whether they will continue to apply. Are they UK laws, customer requirements or destination country obligations? Risk assess each entry to think about whether it is likely to remain the same, be repealed or even strengthened. And importantly, engage with your customers, supply chains and industry associations as early as possible to begin conversations and position yourselves in readiness for an uncertain few years.

We’d love to hear your thoughts on Brexit – join the debate @iiEUK or e-mail us at info@iie.uk.com.

Thank you to IEMA for information on this topic.