Report urges more efficient use of environmental resources

The report from the manufacturers’ organisation EEF in conjunction with Barclays and rather long-windedly called: ‘Resource Efficiency; Business benefits from sustainable resource management’ identifies and analyses the positive effects of resource efficiency in UK manufacturing. It is the first in a series of publications being launched by EEF as part of its ‘Manufacturing Your Future’ campaign offering advice, guidance and support to help manufacturers through the economic downturn. The report highlights the urgency of implementing resource efficiency, with recent fluctuations in energy and raw material prices, heightened consumer awareness of climate change and new government sanctions all adding to this urgency. The report outlines the potential for sustainable development if government continues to work with the private sector to encourage greater investment in recycling, renewable energy and production, and offers practical steps for manufacturers to boost the resource efficient credentials. It concludes that manufacturing companies taking the lead on implementing a resource efficient business model can also benefit from increased competitive advantage. This differentiates them from business rivals, wins access to new markets, improves access to capital and contracts by appealing more to investors, and reduces risk through compliance with legislation, the report says. A closer relationship with suppliers may also be forged off of the back of a resource efficiency programme, leading to a reduced risk of supply chain failures. The report urges that government, in partnership with industry, should seek to provide: o a long-term strategy for resource management with clear objectives and timescales o a regulatory framework that is risk-based, proportionate and coherent and incentivises resource efficiency o the necessary infrastructure for a closed loop economy, providing easy access to recycling services as well as access to secondary raw materials o targeted advice and support for businesses to helping manufacturers identify and implement resource efficiency activities o a more creative approach to government procurement to encourage resource efficiency down the supply chain. Vanessa Fandrich, EEF’s senior climate and environment policy adviser said many companies underestimated the true cost of inefficient business processes because of a lack of understanding of environmental costs. Ray O’Donoghue (pictured), Head of Midlands Region, Barclays Commercial Bank, added: “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. “With both US and Australian leadership now signed up to the fight against climate change and a new international climate change agreement likely to be signed in Copenhagen in December, sustainable resource use will eventually replace battling recession as the top issue for manufacturing leaders. For any industrial company that has the capacity to look beyond day to day business issues despite economic challenges, the time to start acting on resource efficiency is now.” The report can be downloaded from www.eef.org.uk.