What Environmental Rules Apply to Business’?

In Short

• Environmental law affects how businesses use land, water, air and natural resources across daily operations, projects and supply chains.

• Duties vary by activity, scale and location, but breaches can lead to fines, clean-up orders and reputational damage.

• Regulators can take criminal and civil action, and directors may be personally liable in serious cases.

Tips for Businesses

Map where your activities affect the environment, including waste, emissions and land use. Check whether you need permits or approvals and who regulates your activities. Build environmental checks into projects and transactions early. Keep records, train staff, and review obligations regularly. Taking advice early can prevent costly enforcement and delays.

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Table of Contents

• Environmental Law and Business
• How Environmental Law Affects Businesses in Practice 
• Who Enforces Environmental Law Rules?
• Understanding Environmental Law Requirements
• When environmental issues can arise
• Understanding Environmental Risk and Liability
• Seeking Legal Advice on Your Obligations 
• Key Takeaways
• Frequently Asked Questions

Businesses today are facing increasing pressure to consider and reduce the environmental risks of their activities. Environmental law is an important area for businesses to navigate; they must manage this carefully for both legal and reputational purposes. Legal, commercial and wider societal expectations around environmental protection have risen, and organisations are held accountable for how their operations impact the environment. 

Environmental law is central in managing business effects on: 

• air;
• land; 
• water; 
• natural resources; and
• broader issues such as climate change and biodiversity decline.

For businesses, environmental law can heavily impact: 

• daily operations; 
• development and construction projects; 
• land ownership and use; 
• supply chains; and 
• long-term planning. 

Applicable obligations for a business will depend on the type, extent, and location of activities, and more and more businesses are facing challenging environmental requirements.

This article offers an introductory overview of UK environmental law and explores its significance for businesses.

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Environmental Law and Business

Put simply, environmental law is a set of legal rules designed to protect the environment and people’s health. It helps prevent and manage harm such as pollution or contamination, and sets clear rules for how individuals, businesses, and public bodies can use land, water, air and other natural resources.

It also plays an important role in managing risk. Environmental law sets standards for activities that could affect the environment and explains what must happen if things go wrong, including enforcement, clean-up and responsibility for any damage caused.

How Environmental Law Affects Businesses in Practice 

Environmental law seeks to protect the environment and human health by controlling activities that may cause harm. It regulates how businesses operate and includes legal controls on: 

• pollution; 
• wildlife protection; 
• conservation; and 
• climate change. 

It also plays a role in responding to climate change through measures aimed at reducing emissions and improving energy efficiency.

Environmental regulation can extend into other related areas, such as the use of:

• chemicals; 
• hazardous substances; 
• energy use; and 
• the sustainable management of natural resources. 

The Environment Act 2021 is one of the UK’s most important environmental laws. It was introduced to create a new UK-based system for managing and overseeing environmental protection in England after leaving the EU. The Act requires environmental principles to be taken into account when public authorities make decisions.

Who Enforces Environmental Law Rules?

Environmental rules are enforced by a range of public bodies. In England, the main regulator is the Environment Agency, while Natural Resources Wales carries out a similar role in Wales. Local authorities also play a key role, especially when it comes to: 

• smaller industrial activities; 
• local pollution issues; 
• waste management and disposal; and 
• contaminated land.

Additionally, other organisations have specialist roles. For instance, Natural England is responsible for biodiversity, wildlife, and protected habitats, and the Marine Management Organisation regulates certain marine and coastal activities. 

Understanding Environmental Law Requirements

There is a range of environmental laws with strong requirements, and they can apply to a range of industries.

At a high level, UK environmental law covers areas such as:

• environmental permits and regulatory approvals;
• air and water pollution controls;
• waste management and contaminated land;
• protection of wildlife, habitats and biodiversity;
• chemicals, hazardous substances and asbestos;
• climate change, carbon and greenhouse gas emissions; and 
• Energy efficiency, resource use and sustainability.

When environmental issues can arise

Environmental issues can come up in many different situations, including: 

• compliance with environmental regulations; 
• managing environmental obligations on projects;
• environmental investigations; 
• enforcement action; and
• identifying or managing environmental risks in transactions and commercial deals. 

Understanding Environmental Risk and Liability

Many environmental breaches are criminal offences, meaning regulators can prosecute businesses in the criminal courts. Penalties can include fines and, in some cases, imprisonment. Where senior individuals are involved, or fail to take appropriate action, directors or managers may be held personally responsible.

Regulators can also require businesses to investigate and clean up pollution or contamination, and may issue enforcement notices requiring specific steps to be taken.

Environmental liability can arise in several ways, and companies may face: 

• criminal liability; 
• civil penalties; 
• clean-up obligations; 
• regulatory enforcement action; and 
• private legal claims.

Environmental harm can also lead to private civil claims, most commonly based on nuisance or negligence.

Seeking Legal Advice on Your Obligations 

Environmental law places a wide range of legal obligations on businesses, and compliance is not a one-size-fits-all exercise. The specific rules that you need to follow will depend on the: 

• nature; 
• scale; and 
• location of activities.

It is important to understand your specific duties, as non-compliance can lead to legal, financial, and reputational consequences. 

Businesses can benefit from taking a proactive approach to environmental compliance and could seek legal advice from a regulatory solicitor on their specific duties. A regulatory solicitor can help your business to proactively understand which environmental laws and rules apply to you and how they impact your operations and projects (including information on which actions you need to take, the types of licences you need and which policies you need in place). 

Key Takeaways

Environmental law is important for business and legal purposes. The obligations will vary depending on the nature and scale of activities, but failure to comply with applicable rules can result in: 

• damaging enforcement action; 
• financial costs; and 
• reputational harm. 

Taking a proactive, informed approach to environmental compliance helps businesses manage risk and adapt to changing legal and regulatory requirements. Legal advice from a regulatory solicitor can provide valuable support in understanding environmental obligations. They can also assist your business in challenging scenarios such as handling environmental incidents and disputes. 

If you need help understanding your environmental obligations, LegalVision provides ongoing legal support for all businesses through our fixed-fee legal membership. Our experienced lawyers help businesses across industries manage contracts, employment law, disputes, intellectual property, and more, with unlimited access to specialist lawyers for a fixed monthly fee. To learn more about LegalVision’s legal membership, call 0808 258 4780 or visit our membership page.

Frequently Asked Questions