By Maita Soukup, Account manager, ReputationInc
Despite being regarded as the lifeblood of many industries
and the backbone of transportation in the UK, the road freight sector is never
far from a green politicians’ cheap shot about oil dependence and industry’s resistance
to a low carbon economy.
I was reminded of this last week in Brussels as I listened
on while a senior member of the European Commission’s Transportation Cabinet lambasted a room full of fleet owners for their failure to act
definitively to reduce CO2 emissions.
The audience, full of success stories and innovative
programmes to “go green”, was unsurprisingly disheartened by the Commission’s
robust dismissal of its programmes as “piecemeal” and “not strategic”.
So why is it that when it comes to sustainable business,
certain sectors’ reputations have been buoyed by their response to the low
carbon agenda, while others continue to be painted as fossil-fueling consuming
dinosaurs, unwilling or unable to adapt to a new world of declining oil
reserves and ambitious carbon reduction targets?
In a word, reputationmanagement. Industries must confront
their not-so-pretty reputation legacies in order to grow, maintain favour with
stakeholders, and ultimately maintain their licence to operate.
Let’s look at how other sectors have tackled similar
regulatory challenges, and then conclude with some advice for how road hauliers
can think differently about their reputation in order to secure greater
understanding and support from government and environmental activists.
Supermarkets &
the environment
Savvy retailers
across Europe were amongst the first to recognise post-Copenhagen
that they would be on the chopping block once public concern about the
environment began to influence consumer purchasing decisions. While such a shift has yet to be documented,
Marks & Spencer’s Plan A is a
shining example of a genuine, well-thought through initiative that positions
the business as part of the solution, not contributing to the problem. From simple operational changes to wider
supply chain commitments, all initiatives in Plan A makes good business sense
as well as demonstrating low carbon
leadership.
The alcohol industry
& binge drinking
The alcohol sector is perpetually under attack from public
health officials and NGOs bemoaning a culture of binge drinking. In the UK TheWine and Spirits Trade Association, working with the support of the
country’s alcohol makers, recently side-stepped further regulatory intervention
by contributing proactively to the government’s Responsibility Deal.
The Responsibility Deal
aims to tackle public health concerns without heavily regulating industry, and
was only possible because alcohol producers were willing to acknowledge their
role in the problem, and to become part of the solution. A commitment to further self-regulation, including
tightening marketing restrictions, continuing to fund successful Drinkaware campaigns, and improve server
training initiatives all resulted in an alcohol sector which is no longer a
scapegoat for politicians trying to explain away binge drinking concerns.
So, what can road hauliers learn from their retail and
alcohol counterparts?
First, act early. The EU is expected to tax trucks based on
their carbon output in the next five years.
To avoid this punitive tax policy, fleet industry associations should be
looking to find their own version of M&S’s Plan A. Agreeing a self-imposed CO2
reduction target that is feasible for the industry to meet, would demonstrate goodwill
to regulators, and put fleets on the front foot when it comes time to lobby
against any crippling taxes the EU might suggest down the road. Like Plan A, a shared commitment to reducing
CO2
emissions in fleets will result in cost savings for the sector.
Second, formalise
informal practices and commitments. The
alcohol sector was already following the majority of commitments it made in the
Responsibility Deal long before Andrew Lansley took up his role as Health
Minister. When the time came to
collaborate with Government, the trade association had a number of ongoing
initiatives to package up and present them back to government as an industry-driven
“vision” for responsible drinking. Road
hauliers must now do the same thing, and at an EU level. For instance, the UK the Freight Transport
Association’s LogisticsCarbon Reduction Scheme is already yielding successful outcomes, as are
programmes across the continent aimed at reducing empty drive time, improving
fuel economy, and training drivers to use minimum energy when on the road. Collecting these shining examples, and
presenting them back to the European Commission, will prove the sector’s
willingness, and possibly open up new channels for collaboration or funding.
Finally, stop being defensive. Given the amount of finger pointing and scapegoating the trucking sector endures, it is little surprise that road hauliers may have developed a feeling of healthy animosity when dealing with regulators. However, as the alcohol and retail experiences demonstrate, changing your reputation with policy makers calls for re-aligning the industry’s aims and objectives to match those of the public good. In the case of fleets, this means translating business objectives, like reducing fuel bills, into shared objectives, like reducing overall carbon emissions.
Whether battling fat taxes, fuel taxes, or marketing
restrictions, demonstrating shared commitments and setting out timelines to
deliver on those commitments is a necessity for any industry looking to improve
its reputation and survive periods of heavy regulation and market change.
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