01 Apr 2009 05:04:22
Resource efficiency could save business £6.4bn
Resource efficiency should be promoted by the government as a tool that could help businesses control costs and limit the environmental impact of production, according to a new report from the Engineering Employers Federation (EEF).
According to the study, 90 percent of production materials do not make it into the final product and companies might spend 5 percent of their annual turnover on waste.
The study found positive effects of resource efficiency, claiming it could lead to £6.4 billion in savings a year, and it is intended to encourage companies to take account of inefficient business processes.
EEF's report notes that fluctuations in the price of energy and raw materials, government regulation and consumer awareness of climate change add urgency to improving resource efficiency, as does the financial situation.
Ray O'Donoghue, of Barclays Commercial Bank, which also took part in the study, said: "While environmentalism has traditionally been considered a back seat issue during a recession, the strong correlation between resource efficiency and cost control should be pushing energy use and waste management much further up the corporate agenda."http://tinyurl.com/ct9zq3