The past decade has seen the environment rise steadily on the list of issues that demand the attention of management across all industries. Stringent environmental regulations have been implemented at the federal, state and local levels--climaxed by the sweeping Clean Air Act Amendments of 1990--and the Clinton/Gore administration's promises to raise the environmental bar still higher.
These developments point to a new business reality for the beverage industry: operating in an environmentally responsible manner is not just the right thing to do, it is an essential element to succeeding in the '90s. All too often, however, companies interpret "operating in an environmentally responsible manner" to mean doing only what it takes to comply with applicable regulations. In fact, nothing could be further from the truth.
Any serious effort at becoming an environmentally proressive company must have at its core a commitment to going beyond compliance. Without such a commitment, all you may end up ultimately doing is adding to your costs and increasing your liability.
For example, a few years ago a beverage company disposing of its wastes--including wastes from vehicle maintenance activities--at a state-approved site could have congratulated itself on having complied with all then-current environmental regulations. Today, that same company might be forced to take a $40 million charge to its earnings to pay for the clean-up of that site under federal superfund regulations that hold businesses responsible for the clean-up of waste disposed of years ago, even if that waste was disposed of legally at the time.
Make no mistake about it, "going green" can cost businesses plenty of green. In order for this money to be well spent, however, companies must insist that their dollars do more than just bring their operations within the accepted environmental standards of the day. Like investments in new technology or quality-improvement programs, investments in the environment must be made with the goal of jumping ahead of the competition--which, in this case, includes federal, state and local regulatory bodies, as well as traditional competitors--and staying there. In doing so, your company's overall cost of compliance will be reduced, as will--more importantly--its environmental liability.
Transportation is an area in which businesses must be particularly mindful of the environment. In the beverage industry, operating an effective transportation system is difficult enough. Meeting tighter delivery windows, training and retaining drivers and responding to seasonal shifts in utilization are just some of the transportation-related issues that can divert management's attention away from its core business. Adding environmental concerns such as fuel storage tanks, waste management and vehicle washing to this mix only complicates matters even further.
In the face of such challenges, many companies in the beverage industry have outsourced their transportation systems to experienced, responsible third-party providers. Ryder is one such provider and the environmental lessons we have learned over the years can be broken down into several key areas.
RISK REDUCTION
Not surprisingly, one of the most effective ways to reduce environmental exposure is to reduce the amount of waste produced. Transportation-related wastes can include truck emissions, wash water, storm water run-off and a host of used products such as batteries, oil, oil filters and tires.
Operating new, well-maintained vehicles often produces emissions well below applicable standards. Vehicle wash water now often can be recycled, thus reducing overall water use and eliminating discharges of dirty water. Storm water run-off from trucks, which can contain dirt and cleaning solvents, must be monitored closely-both on the lot and on the road.
Due to the enormous liabilities associated with waste disposal and the "greening" of corporate America, used products now also are largely recyclable and many suppliers have assumed responsibility for recycling them.
Businesses must be aware that they can be held responsible for cleaning up hazardous conditions created by a previous owner or operator. At Ryder, we assess every property for potential environmental liabilities before purchasing it. Before selling a piece of properly, it is necessary to clean up any existing hazards and thoroughly document that effort to guard against future liability. Such diligence is a good business practice that must extend to all properties, not just those involved in transportation.
TRAINING
Employees need to be trained to perform their jobs in an environmentally sound manner. This can mean relearning tasks that have been done the same way for years--including changing oil, cleaning parts, repairing air conditioning systems and washing trucks. Additional training is required to teach employees how to react to emergencies such as fuel spills or leaks of hazardous materials.
Certain tasks--such as handling chloroflurocarbons (CFCs)--require employees to be trained under federally approved programs. Ryder is the only transportation company to receive federal approval for its CFC-certification program.
As companies have begun to run leaner operations, many employees have come under pressure to produce more in less time and at a lower cost, a situation which can lead to cutting corners. No area is more ripe for corner-cutting than the environment. It is management's responsibility to let employees know that doing their jobs in an environmentally correct manner--even if it takes longer and costs more than it would otherwise--is a fundamental condition of their employment. Management will be held responsible if employees don't receive this message loud and clear.
Ryder's commitment to the environment starts at the top. We have established an Environment, Health and Safety Department, which is headed by an officer of the company. Members of the department not only hold regular meetings with management, but also meet one-on-one with drivers, fuel island attendants, maintenance technicians and customers at every opportunity.
Ryder urges its employees to report unsafe, unhealthy or environmentally suspect conditions or behavior to their supervisors. We offer a variety of individual and group incentives for accident-free performance. In short, you can't work at Ryder and not understand the importance that management places on the environment, health and safety. This is a philosophy that will pay off for any business.
As mentioned previously, there has been a growing trend across all industries to outsource the transportation function. Tougher environmental legislation has contributed to this trend. But companies must be mindful of the fact that, although third-party providers assume a great deal of the environmental responsibility and liability involved in running a transportation system, they do not assume all of it.
Their customers remain liable to a degree as well. This makes the selection of a third-party provider all the more important. Today, commitment to the environment has joined price, quality and service as a means of differentiating one provider from the next. In assessing a provider's environmental capabilities, consider the following factors.
EXPERIENCE
When it comes to the environment, learning on the job is an unacceptable approach. Transportation providers must be ready from day-one to meet the specific environmental needs of a new customer.
Ask questions of a prospective provider: What is the provider's record on the environment? Is that information close at hand? If not, it may indicate that the provider doesn't take the issue as seriously as it should. Does the provider have experience in dealing with the specific environmental problems your business is likely to encounter?
Can the provider quickly and efficiently help you deal with problems you may already have? Is the provider adequately insured against environmental accidents? If not, any shortfall may come out of your own pocket. Is the provider financially strong enough to be there for your business not just today, but many years down the road, when environmental problems often surface?
KNOWLEDGE
Environmental regulations are constantly changing and vary widely from state to state--and even from county to county. Keeping abreast of these developments is a full-time job in and of itself. Many large transportation providers have in-house government affairs departments to monitor pending environmental legislation on the federal, state and local levels, and to offer opinions on such legislation when appropriate.
By being involved in the process, providers can make adjustments to their operations before they are legally obligated to do so, ensuring seamless service for their customers.
Ryder has a staff of more than 15 environmental professionals dedicated to managing these efforts for itself and its customers.
Jack Rogers is an Atlanta, GA-based beverage industry specialist for Ryder Truck Rental (Miami, FL).