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Over the past 18 months the tough economic climate has focussed the minds of many business leaders on cost efficiency. According to a report by sustainability experts Envirowise, one of the ways they have cut back is to pay more attention to increasing resource efficiency. In fact, there is a growing consensus among UK business that resource efficiency is not just a symptom of the current downturn, but essential to remaining competitive in the transition to a low carbon economy.
The Envirowise Business Thrift Shift Report
The Envirowise Business Thrift Shift Report encompasses responses from more than 500 UK companies and reveals that almost three-quarters (73%) of businesses developed a more detailed knowledge of their spending and resource use as a result of the recession. This includes everything from investment in raw materials, transport and energy, to staffing, equipment and professional services.
For businesses, reduction of spend on raw materials and consumables was the biggest area of cut back 38%, with a large number also minimising their water, energy and transport use. And this ‘thrift shift’ is set to continue, as 89% of respondents expected to be more careful about how they use their resources as the economy recovers.
The serious challenges posed by the recession is perhaps reflected in the number of survey respondents reducing staff costs during this period 41%. However, it is also clear that for many companies this period of economic difficulty has stimulated a more resource-conscious mindset, galvanising environmental commitments that had perhaps been lower down the business agenda.
A thrifty approach does not only lead to financial savings; it can also equip businesses to face increasing levels of environmental legislation and provides an important competitive advantage as customers become more environmentally conscious. Companies making a shift to thrift are well placed to thrive as the economy recovers.
The Envirowise Business Thrift Shift Report is available at www.envirowise.gov.uk/thrift Businesses can access free guidance and practical advice from sustainability experts Envirowise by visiting www.envirowise.gov.uk or calling the Envirowise advice line free on 0800 585794.
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