Retail giant Walmart has recently been fined $82 million (£54 million) after being prosecuted for offences of dumping hazardous waste.
It is shocking that a company which is the third largest public corporation in the world should find itself in breach of environmental laws. The company was unaware of what constituted hazardous waste and the steps required to ensure this was legally disposed of. Company employees disposed of hazardous waste in store waste bins, poured it in to sinks which led to the local sewer system and transported waste without correct documentation.
Whilst this is a US case, the strict rules and complexities are mirrored in UK environmental laws. Walmart, which trades as Asda in the UK, has little excuse for finding itself in breach of environmental laws as it has the resources to fund appropriately qualified staff to keep it informed of regulatory requirements. SMEs in contrast can rarely afford this luxury, and the risk of non-compliance increases.
The case highlights the need for businesses to be aware of the regulatory requirements that apply to their activities. All businesses have a statutory duty to dispose of waste lawfully and in a manner which is safe to both the environment and human health. Staff must be appropriately trained, procedures set up, and those procedures must be followed by staff.
To do otherwise puts the public and the environment at risk. Also, businesses who breach the legislation can gain an economic advantage over other law abiding businesses. The Environment Agency therefore takes a tough line with offenders, even those who were not aware they were breaching the law.
On the face of it, $82 million seems a high fine, but in fact this is less than a day’s profits for the company. The UK has a similar problem that fines often fail to adequately reflect the environmental impact of an incident, or the resources of the company. The current Sentencing Council proposals for new Sentencing Guidelines are likely to make significant changes to the amounts companies are fined in the future.
By environment, transport & regulatory solicitor, Julie Goulbourne
If you have an environmental or other regulatory issue it is vital you speak specialist advice. Stephensons is able to offer comprehensive advice on how to ensure you meet the regulatory requirements, and represent you in the event of investigation or prosecution by the Environment Agency.
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