Guide 9 min read
1. Business impacts on the environment
To a greater or lesser extent, all businesses impact the environment by:
● using resources such as energy, water and materials
● generating waste and emissions.
For a home-based consultancy, this impact might be relatively low - perhaps limited to heating and lighting the property, use of energy storing files on the cloud, and small amounts of waste paper.
In other businesses, there will inevitably be higher impact, such as the emissions generated by customers driving to shops, the waste from a fast food restaurant, or the noise and dust from a construction site.
● reducing waste which cuts costs
● accessing grants which increases income
● building a reputation for environmentally responsible trading which could attract new customers, staff and investors.
In some cases, businesses developing new technologies and efficient ways of working make a valuable contribution to helping the whole population reduce environmental impact.
Environmental legislation is added and amended frequently. As a business owner, your first step is to:
● think about the day-to-day running of your business
● identify what legislation applies to your operation
● work out any actions you need to take to comply - which may include obtaining permits or licences from the Scottish Environment Protection Agency (SEPA) or your water company and NetRegs provides more information on this too.
2. Do you generate any waste?
You have a legal Duty of Care relating to any waste you produce. This covers:
● separating and recycling commercial waste
● storage of your waste
● waste collection
● paperwork related to your waste.
NetRegs provides detailed information about the Waste (Scotland) Regulations 2012.
The Scottish Environment Protection Agency, SEPA, can enforce this legislation and issue fines.
Separating waste and recycling
The Waste (Scotland) Regulations 2012 require all businesses to separate commercial waste for recycling:
● paper
● card
● plastic
● metals
● glass
Most food businesses also need to separate food waste for recycling unless they produce less than 5kg of food waste weekly or you qualify as a rural location.
Zero Waste Scotland has advice on managing waste and how to check if you are in a rural location.
There are specific requirements for some businesses covering recycling and disposal of particular types of waste such as:
● Electrical and electronic equipment
● Fridges and air-conditioning equipment containing ozone depleting substances and f-gases
For more information see NetRegs’ information on recycling and see section 4 below for more information on other hazardous substances.
Storing waste and recycling
Any waste or recycling you produce must be stored safely and securely so it does not become a nuisance or danger by creating litter or attracting vermin. NetRegs provides advice on waste storage.
Also, you must follow your local authority’s rules. For example, they may not permit you to store trade waste bins on public land including the pavement or road.
Collection of waste and recycling
It is your responsibility to ensure your waste and recycling is collected for disposal or recycling by an organisation authorised to do so. Some local authorities offer a paid-for service for this, but in other areas you will need to find a licensed private waste contractor.
You must complete a waste transfer note or consignment note when waste or recycling is handed over and keep this for at least two years.
Check your local authority’s rules for managing collections, e.g. clearly labelling bins and bags with your business name and collection time.
Also, on collection day check if there are any restrictions, for example you may only be permitted to:
● put out waste during limited time periods
● leave bins for a limited time before collection, e.g. an hour, and remove it if the collector does not arrive on time.
You may be required to remain on your premises until waste is collected. You may be fined if your waste blocks the pavement or road or if it is left out too long or overnight.
Transporting your own waste
Local authorities will not usually permit businesses to use council household recycling depots.
If you cannot arrange collection and need to regularly transport your own waste (or waste for anyone else) for disposal or recycling, you may need to register with SEPA. For hazardous waste, see section 4 below.
Legislation changes
If you are a business, shop or cafe that sells takeaway drinks in cans and plastic bottles, keep up to date with the plans for Scotland’s Deposit Return Scheme (DRS) for drinks containers which aims to reduce litter and increase recycling. This was expected to be in force in 2022, but is now scheduled for October 2027. Affected businesses will need to act as a collection point for recycling these items.
3. Do you use any packaging?
Single-use carrier bags
All retailers - whether food or non-food must charge a minimum of 10p for each new single-use carrier bag provided to customers, even if it is made of paper or plant based materials.
If you employ more than 10 full time equivalent employees then you must make records of the bags supplied and money received from charging, and keep these records for three years.
Single use plastic items
Scotland is the first country in the UK to ban the manufacture and supply of some types of single-use plastic items (even biodegradable or compostable plastic) including:
● cutlery
● plates
● drink stirrers
● food containers, cups and lids made from expanded polystyrene.
Single-use plastic cotton buds are also banned from manufacture or sale.
There are also restrictions on plastic straws and balloon sticks with some exceptions.
General packaging
If you have a turnover greater than £1million, and handle more than 25 tonnes of packaging a year, then under your Extended Producer Responsibility you will need to record data relating to the empty packaging and packaged goods you handle and supply through the UK. This might apply in various circumstances, for example if you supply packaged goods under your own brand, sell packaging, package others’ goods, hire out reusable packaging to others, or use packaging to protect goods during transit.
4. Do you work with any hazardous substances?
Your business may handle hazardous substances in various ways, for example:
● using them in manufacturing, research, construction or providing a service
● being involved in their storage or distribution
● importing or selling them
● generating them as waste or recovering them as a result of your activities.
This could apply to small businesses in construction, cleaning, retail, pest control, farming, vehicle repair, and health care, among many others.
Hazardous substances are tightly regulated. They include:
● fumes, dusts, mists, and vapours
● chemicals, solvents, gasses
● oil
● ozone-depleting substances (ODS)
● pesticides and biocides
● animal by-products
● germs
● nanotechnologies
● radioactive materials
● lead
● asbestos
● elements in electrical and electronic equipment.
In some cases there is specific legislation for particular substances, often covering risk management, registration and record keeping, for example:
● chemicals - UK Registration, Evaluation and Authorisation of Chemicals (REACH) Regulations
● electrical and electronic equipment - Restriction of the Use of Certain Hazardous Substances in Electrical and Electronic Equipment Regulations (RoHS)
● Ozone-depleting substances (ODS) or ODS or fluorinated gases (F gas) - including air conditioning, refrigeration and fire protection equipment - The Ozone-Depleting Substances and Fluorinated Greenhouse Gases (Amendment etc.) (EU Exit) Regulations 2020.
● Radioactive substances - Environmental Authorisations (Scotland) Regulations 2018.
Any hazardous waste your business produces must be correctly classified, described and stored, and either disposed of or recovered at an appropriately authorised facility. You must also pre-notify SEPA and complete a Special Waste Consignment Note before moving it.
You must also consider the risks to your staff from any substances hazardous to health, and comply with the Control of Substances Hazardous to Health Regulations (COSHH) which include many elements such as risk assessments, staff training and provision of protective clothing and equipment.
5. Could your activities contribute to pollution?
Statutory nuisance
For any business, it’s important your activities do not cause a statutory nuisance which could affect someone's health or annoy your neighbours. This includes:
● noise
● light
● smoke, fumes, gases, dust, odour
● accumulating rubbish.
Polluting activities
Some types of businesses are more likely to cause pollution and must comply with all relevant legislation and regulations.
● From November 2025, water, waste management and industrial activities are regulated under Environmental Authorisation (Scotland) Regulations 2018 - often referred to as EASR.
● SEPA regulates activities that could lead to pollution or damage to the environment and provides important information on authorisations and permits for waste activities, water activities, industrial activities and radioactive substances.
Polluting activities include the following.
● Burning fuel, processing metals, producing chemicals. Be aware of the UK Emissions Trading Scheme although ultra-small emitters may be able to opt out.
● Liquid waste going into public sewer including via a sink, toilet or gully, other than normal kitchen or bathroom waste. This is referred to as ‘trade effluent’, and includes wastewater containing oils, detergents, wash water, etc. You must obtain a trade effluent consent or trade effluent agreement with your water and sewerage company. This affects businesses such as car washes and laundries. Hazardous waste is different and covered in section 4 of this article.
● Discharging anything (other than clean water) to land or rivers, lochs, streams etc, or ground water below the water table. You will need authorisation and permits from SEPA.
There are also specific environmental rules covering a wide range of businesses - from construction, farming, and electronics to textiles and chemicals manufacture. You can check what environmental legislation applies to your business sector on the NetRegs website.
Activities that do not require authorisation
There are some low risk waste management, water and industrial activities and SEPA has information on those that do not require any authorisation.
Prevent and remedy pollution incidents
You must ensure you’ve addressed any risk of accidental contaminated run-off from your premises polluting surface waters or groundwater. For example, your vehicles may leak oil, or rainwater may be contaminated by chimney emissions.
Should there be a threat of any environmental damage or should it occur, you have a duty to report it and undertake remedial action. You should contact SEPA to report incidents such as:
● damage or danger to the natural environment
● pollution to water or land
● poaching or illegal fishing
● fish in distress or dead fish
● watercourse blocked by a vehicle or fallen tree causing risk of flooding
● illegal dumping of special (hazardous) waste or large amounts of industrial waste
● incidents at waste sites regulated by SEPA
● illegal abstraction from watercourses
● unusual drops in river flow
● collapsed or badly damaged river or canal banks.
You should report incidents such as gas leaks, burst water mains, or domestic odours, noise, waste or pest nuisances to your local authority or utility company.
6. Do you operate in an area protected for conservation or biodiversity?
Biodiversity refers to all species of plants and animals, including any genetic variations within those species, and the complex ecosystems they live in. The world is losing biodiversity as a result of human activity.
If your business is near a protected area or priority habitat, you will be subject to tighter restrictions on the activities and development that you can undertake. This doesn't just apply to land-based industries such as forestry or farming, but to all offices, factories and other business activities based on or near these areas.
Protected areas include:
● Local nature reserves - places with wildlife or geological features that are of special interest locally.
● National scenic areas - areas of particular natural beauty in need of conservation.
● National parks - tracts of the countryside that have been given protection for the conservation and enhancement of their special qualities.
● National nature reserves - important areas of wildlife habitat.
● Sites of special scientific interest - good examples of natural heritage of wildlife habitats, geological features and landforms.
● Special areas of conservation - strictly protected sites for habitat types and species that are considered to be most in need of conservation at a European level.
● Special protection areas - strictly protected sites classified for rare and vulnerable birds.
● Wetlands - including swamps, fens, marshes, springs, reed beds, flushes, and lowland raised bogs.
● UNESCO biospheres - areas of terrestrial and coastal/marine ecosystems which are internationally recognised under UNESCO's Man and the Biosphere programme.
You can find out if your business operates in or near a protected area on the NatureScot website and view more information on the topic and view existing conservation and biodiversity legislation on NetRegs.
7. Find out more about environmental responsibilities
SEPA
The Scottish Environment Protection Agency (SEPA) is the main Scottish Government body that:
● provides advice and information
● implements and enforces environmental legislation
● issues permits, licences and authorisations that control businesses' impact on the environment
● improves flood awareness to support preparation
● contributes to Pollution Prevention Guidelines (PPGs).
You can receive alerts when there is a flood update for your area.
NetRegs
NetRegs is a website provided by the SEPA and the Northern Ireland Environment Agency to help businesses understand and comply with current and forthcoming environmental legislation.
Their services include:
● Search for guidance by business sector such as agriculture, construction, hospitality or offices
● Self assessment tool where businesses can anonymously assess whether they are complying with relevant legislation
● Elearning library for the key environmental topics such as water and waste
● Guidance on allowances to support you to achieve carbon reduction and efficiency.
You can sign up to receive monthly email updates on changes to environmental legislation.
Zero Waste Scotland
Zero Waste Scotland provides guidance for all businesses on how to waste less and use resources better.
Work with key sectors, includes:
● improving resource efficiency in the construction sector
● minimising food and packaging waste and encouraging the use of recycled materials in the manufacturing and retail sectors
● encouraging the development of compost products in the agriculture and horticulture sectors
● providing access to research, funding and market information for businesses in the recycling sector.
Business Gateway
Your Business Gateway adviser will be able to signpost you to more information. If you’d like to explore more ways for your business to support the environment, see our article covering sustainable and ethical trading.