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The direct mail industry has welcomed Royal Mail's latest initiative to offer discounts to environmentally friendly wholesale customers.

Last week, the postal service announced new measures under which businesses can qualify for discounts of up to 0.7p for each item mailed via its downstream access.

Alex Walsh, head of postal affairs at the Direct Marketing Association, said he would support the initiative.

He said: "We’re hoping companies take part for a variety of reasons, as it can do a lot of good.

"Under the terms of the scheme, companies receive a discount by complying with Royal Mail requirements."

Entry-level discounts of 0.3p on each item are available if companies: conform to a series of standards, including using paper made from responsibly sourced materials; use documented procedures to suppress customer and prospect data against the Mailing Preference Service; and, from 1 February 2009, use fully recyclable envelope windows.

An additional 0.4p is available if businesses adhere to further standards, including using suppliers that have accredited environmental management systems and the use of water-based finishes at least 50% of the time.

Companies would also have to ensure that 95% of mailings are fully and accurately addressed, with full postcode.

Robin Skinner, group sales and marketing director at 4DM, said: "Anything that promotes better environmental usage should be welcomed."

However, he added that, in the current climate it may be difficult for companies to invest to meet the environmental criteria.