Introduction

Orbital Applied Economics is a micro business. It has a limited impact on environmental and social issues of concern and limited scope to affect those issues. Despite this, the intention of this policy is to make clear Orbital’s commitment to do more than simply make money and to focus its efforts on improving those areas that are considered material (i.e. most relevant) to the company. Rather than hard and fast rules, it sets out the general principles that will guide decisions in this complex area and reports the results so you can judge for yourself whether you think Orbital is performing well in social and environmental terms.

Clients

One of the biggest impacts Orbital can have is through the type of work it undertakes and who it does that work for. Orbital’s raison d’etre is to improve decision-making in relation to the environment and so the general principle here is that Orbital will only take on work that contributes to improving the environment and the wellbeing of society. There is complexity within that principle however. For example, is it justifiable to take on a project that will improve the environment but is paid for by a company whose wider operations cause environmental or social harm?

The projects and clients that Orbital takes on will be judged on a case-by-case basis, depending on how genuine the intention behind the project appears to be. If it appears to be greenwash or reputation laundering for example, then the work will be turned down or not bid for because these approaches help to perpetuate behaviour that damages society and the environment. If it seems to be a genuine attempt to tackle a problem and to create positive change then Orbital will take on the work. Different people will come to different conclusions as to how correct these judgements might be, but Orbital’s aim is to be consistent and transparent in applying its principles.

The environment

Greenhouse gases

Most of Orbital’s business is undertaken from a shared office space and commuting to and from that office is done by bicycle. With limited influence over the policies of the shared workspace, the main area of focus has therefore been on reducing greenhouse gas emissions from business travel. This means that by far the most effective way to reduce Orbital’s impact on the environment is to only use public transport for business travel. In the first four years of the company’s existence this has been possible, but there may be occasional exceptions required in the future. A blanket ban on air travel may look superficially attractive but would involve trade-offs, such as potentially turning down a project with a large positive effect on society and the environment, or impacting staff welfare through long travel times. The general principle therefore is to only use public transport for business travel unless there are exceptional reasons not to. An example of such a reason is the use of private hire cars to reach out-of-the-way locations for site visits.

Before contemplating carbon offsets, Orbital’s policy is to reduce emissions as far as possible. Convictions aren’t anything until they cost you something, and as such, the bar is set very high for the use of air travel as part of Orbital business. It is acceptable to pay more to take public transport and not to charge the difference in cost to the client. Orbital will also not claim credit for air travel avoided where a train journey is actually the more time- or cost-effective option, for example travel between London and Brussels.

Carbon offsets

Orbital purchases high quality carbon offsets via HACT and deliberately purchases more offsets than required. This is partly because Orbital’s annual carbon emissions are below 1tCO2e, which is the minimum unit size issued by HACT. It is also because Orbital has taken the decision to share its 3.5% post-tax profit distribution equally between three charities and HACT on the basis that investment through this route provides quantified social benefits as well as certified carbon reductions.

According to HACT: “Retrofit Credits are based on actual carbon emissions that have already happened. The service operates under the Verified Carbon Standard (VCS), the internationally recognised standard for verifying carbon credits. It is the only carbon credit in the world that measures carbon emission reductions from the decarbonisation of homes. The methodology has been peer-reviewed and includes checks and balances to maintain the high quality of the credits, including a three-step process to assess additionally.”

“Retrofit Credits incorporate the positive impact that the retrofitting of a social housing home has on the person who lives there – the social value that has been created through the retrofit of the home. This is measured through the UK Social Value Bank, whose wellbeing methodology is HM Treasury Green Book compliant. The money generated from the sale of Retrofit Credits is passed back to the relevant housing association, local authority or housing co-op to invest in further decarbonisation, so more social housing residents can enjoy warmer homes and cheaper energy bills.”

Waste, materials and resource efficiency

Orbital only purchases post-consumer recycled paper and all IT equipment is sourced from second-hand retailers such as Back Market. The shared workspace occupied by Orbital makes significant efforts to recycle materials, utilising a specialist waste company and providing extra recycling services for materials such as batteries, stationery equipment and flexible plastics.

Water

The shared workspace occupied by Orbital does not have any data on water usage. Orbital commits to work with the owners of the workspace to gather data in this area and act to reduce water usage where feasible.

Society

Orbital allows staff time off to support social and environmental causes and commits to donate 3.5% of post-tax profits to a range of organisations that are closely aligned to the mission of the company. In practical terms this means that a value equal to 3.5% of the previous financial year’s post-tax profits are donated in the current financial year. Note that Orbital’s financial year runs from 1st October to 31st September.

Orbital can be relied on to provide neutral, independent advice. As such the causes the company supports do not seek to change government policy, but focus on improving society and the environment in four key areas: education, high quality journalism, poverty and the environment.