Royal Mail launches new environmental incentive

LONDON - Royal Mail is to give wholesale customers discounts for making their campaigns greener by actions such as using recyclable packaging and meeting accurate addressing standards.

Businesses will have to meet a range of standards and reduce unnecessary direct mail production through better use of data and suppression files. They will then qualify for discounts of up to 0.7 pence per item on downstream access prices.

Stephen Agar, managing director of Royal Mail Wholesale, said: "The price discount will encourage our wholesale customers to make the necessary changes to reduce their environmental impact. We believe it will dovetail with our customers’ wider social responsibility initiatives."

The new service is based on two levels of participation. Entry level receives a price discount of 0.3 pence per item, while companies who meet the intermediate criteria receive an additional 0.4 pence per item reduction.

Some of the minimum requirements to qualify specify that responsibly sourced materials must be used and that the pack must be recyclable.

Recycling messages must also be included and 90 per cent of mailings must be fully and accurately addressed in accordance with Royal Mail’s Postcode Address File (PAF).

A full list of requirements is available on Royal Mail Wholesale’s website at
 
Agar said: "The intermediate stage will act as an incentive for entry level customers to make their direct mailings even more sustainable, while also rewarding those companies that have already taken strides to reduce the environmental impact of their direct mail campaigns."

Royal Mail is considering a potential third level of discounts based on still stricter criteria.

The announcement by the wholesale arm of Royal Mail follows initiatives by the business to encourage its retail customers to consider their environmental impact.

These include a carbon neutral door to door scheme and and mailing houses scheme incentivising good environmental practice and high standards.

Royal Mail is aiming to be carbon neutral by 2015. Its normalised emissions - based on the carbon generated by delivering a single item - have reduced by 31 per cent since the 2002-3 financial year.

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