Legal Benefits Of Maintaining An Eco-friendly Business
According to the data compiled by the World Resource Institute, Canada is the 9th highest greenhouse gas producing country in the world. This makes this country a huge contributor towards global warming. However, post the Paris Climate Summit, there have been efforts made by all countries to cut down their carbon footprint.
Industrial plants and business firms play a major role in decreasing the overall carbon emission rate of a country. This is also a major reason why governments across the world continuously stress on the importance of Corporate Social Responsibility (CSR) for all businesses. In Canada, the federal government has introduced many legislations to promote eco-friendly practices in corporations. Here’s a closer look at these allied benefits of sustainability in business firms:
1) No Litigation Charges
A company whose operations are in compliance with the environmental laws of the province can comfortably avoid legal issues such as payment of offenses and hefty fines and settlement of litigation filed against your business activities. Litigation charges for non-compliance can be extremely costly and can tarnish the reputation of your company. Here’s a closer look at the laws which regulate the environmental compliance of your business:
- Canadian Environmental Protection Act (CEPA) 1999: This law is applicable to all businesses operating in Canada. It mandates the application of healthy environmental practices for all organisations in the country. Some of these practices include prevention of pollution, elimination of wastes in a sustainable manner and most importantly, reinforcing negative consequences for businesses that do not comply with these environmental regulations.
- Evaluating New Substances: This is an extension of the aforementioned CEPA act. It stresses the importance of assessing all the ‘new substances’ or raw materials, for their toxicity, authenticity and quality before being introduced to the Canadian marketplace.
As a business operating in Canada it is crucial to adhere to these regulations to avoid legal troubles in the future. Being environmentally compliant also improves the reputation of your business. This is because, organisations that adopt sustainable practices for their operations are perceived as more trustworthy among consumers and clientele.
2) Access to Tax Benefits
Business owners can access many tax rebates for being environmentally compliant. This is one of the key benefits of sustainability in business firms. Opting for green energy sources and adopting eco-friendly practices to your operations makes you eligible for several tax incentives. As per a study titled, Going Green in Canada, there can be significant tax advantages for a business to deduct the costs related to clean energy generation under the accelerated Capital Cost Allowance (CCA) as per the Income Tax Act.
Understanding the multitude of complex laws in the area of environmental compliance can be tricky for most business owners. Consulting an environmental lawyer can help you understand the nuances of these legislations and develop an effective compliance strategy for your business.