Intertek provides inspection and verification services to companies around the world through a network of over 1,000 laboratories in over 100 countries. The company is divided into 5 business divisions: Industry & Assurance, Commodities, Consumer Goods, Commercial & Electrical, and Chemicals and Pharmaceuticals. Intertek specializes in conducting testing, outsourcing, certification, training, inspection, advisory, auditing, and quality assurance services.
The increase in environmental regulations as a response to resource scarcity presents an important challenge for businesses across all industries. Companies that offer products or services that facilitate adherence to environmental regulations or certifications could experience an expansion in business as demand for these services grows.
Intertek offers a variety of environmental, health, and safety services for its customers, including confirmation of compliance with environmental regulations that govern chemicals and hazardous substances, such as the European Union Restriction of Hazardous Substances Directive. Additional offerings include greenhouse gas measurement and monitoring, toxicology risk assessments, and testing for contaminated water and soil. Furthermore, the company offers testing, certification and consulting for renewable energy projects including biofuels, photovoltaics, wind turbines, lithium batteries, and charging systems for electric vehicles. In 2013, the company expanded its offerings related to renewable energy by introducing a photovoltaic performance certification program.
Direct Environmental Impact
All companies, regardless of their industry classification, face increasing costs for key resources and services necessary for their operations, such as electricity, waste disposal, transportation, and raw material procurement. Companies are increasingly being pressured to report on the environmental impact of their operations and establish initiatives to mitigate impact. According to the 2014 PricewaterhouseCoopers annual CEO Survey, 80% of CEOs interviewed believe it is important to measure and try to reduce their company’s environmental impact, an increase from 48% in 2013. ((PricewaterhouseCoopers International Limited. “PwC 17th Annual Global CEO Survey Sustainability” January 2014. Accessed July 7, 2014. http://www.pwc.com/gx/en/sustainability/ceo-views/assets/pwc-ceo-summary-sustainability.pdf))
In 2013, Intertek showed a commitment to assess its environmental impact by expanding the scope of its carbon dioxide equivalent measurements in order to improve the accuracy of the company’s greenhouse emission reports. Through increased reporting and the inclusion of its total energy and gas consumption levels, the company seeks to make more informed decisions regarding its environmental impact. The company also reported it has ISO 14001 certified environmental management systems at many of its sites, which ensure strict controls for management and disposal of hazardous substances.
Areas for Improvement
Enhanced Reporting for Direct Operations
In recent years Intertekhas expanded its efforts to measure its direct environmental impact, however, the company does not report metrics on its water consumption or waste production.
Enhanced Reporting for Indirect Activities
Intertek does not provide metrics for how its services are helping to reduce greenhouse gas emissions, energy, gas, or waste consumption at its clients’ operations. Portfolio 21 would like to see the company expand its environmental reporting in these areas.
Intertek has not set reduction targets for the company’s greenhouse gas emissions, water and energy consumption, or waste production. Portfolio 21 would like to see concrete reduction goals as part of the company’s sustainability strategy.
Country: United Kingdom
To the best of our knowledge the above information is accurate and was obtained from sources we believe to be reliable. Neither the information presented above nor any opinion expressed shall be construed as an offer to sell or a solicitation to buy the security. The views expressed are those of portfolio management as of 7/31/14 and may not reflect current opinions or subsequent events.