Margins are notoriously tight in the contract catering sector, but with competition fierce for new contracts, being seen as sustainable and socially responsible can be the difference between winning and losing a new contract.

One company that has firmly nailed its colours to the mast is BaxterStorey. Last year the company, which has 4,500 staff and 310 sites, and had a turnover of £145m in 2006, gained BS8555 accreditation after completing the STEMS (steps to environmental management systems) scheme. It added the better-known ISO14001 in July.

To help implement its environmental programme BaxterStorey drafted an environment policy and disseminated it among staff. It also set up an environmental management team, which meets monthly and reports to the board twice a year.

BaxterStorey's head of environmental management, Mike Hanson, says getting accreditation was a major goal for the company. "It's very important to us," he says. "It's like getting final recognition for all we've done."

Hanson is trying to make sustainable practice central to everything the company does. "From the way we source our food to the way it's delivered, to the way it's cooked and served," he says. A key focus is "greening" the supply chain, working with its suppliers to reduce packaging and make deliveries more efficient using more small local suppliers and providing more seasonal, organic and Fairtrade produce.

It's not all altruism, of course. Hanson says the company's sustainable initiatives have a major impact on the bottom line. Customers are increasingly looking for it, he says, and having a good track record can be the deal maker.

"We're securing existing business, winning new clients and raising our profile in the marketplace - and doing our bit for the planet as well," he says. "It's a win-win situation."

What the company does

• One of its refrigerated vans runs on recycled cooking oil, and a second is being converted.
• It is a registered distributor of Fairtrade products.
• It has installed passive infrared lighting in its head office.
• It has a well-established recycling programme.
• It uses biodegradable packaging throughout its business.
• It composts its coffee grounds.
• It supports local community groups.