Economic climate affects business investment in energy and water efficiency

Thursday, January 15, 2009

Firms are not investing in ‘green’ measures such as water and energy efficiency as a result of the credit crunch, despite the fact that green initiatives can lead to substantial cost savings for businesses, new research from the Environment Agency has revealed.

The poll of 1,000 UK decision makers shows that over half of companies do not have any form of environmental or sustainability policy in place, whilst 55% expect that UK businesses will cut back on future investment in sustainability measures as a result of economic necessity.

The research also identified clear misconceptions amongst business decision makers as to the importance of water efficiency, with only ten per cent of those questioned seeing saving water as important as saving energy. Just 15% of businesses surveyed said they currently have a water efficiency policy in place.

The Environment Agency’s survey, carried out to launch its 2009 Water Efficiency Awards, aims to highlight that sustainability and profit should go hand in hand for businesses.

Few companies identify water as a product that is paid for twice - when receiving it and when taking waste water away - and Envirowise, the Government-funded programme to help businesses with the sustainable use of resources, estimates that UK companies could save £9 million a day through simple water efficiency measures. In fact, a business could save more than £900 per year in water and wastewater treatment costs by fixing a constant 5mm leak from a single tap and over £3,800 per year by installing infrared flush sensors in urinals ().

Worryingly, those areas of the country classified as most water stressed were the least proactive in developing sustainability policies. Three quarters (74%) of businesses in the east of England lacked a sustainability initiative, in marked contrast to Wales where almost two thirds (61%) possess a policy. This commitment to the environment looks set to continue with over 80% of senior figures within Welsh organisations planning further sustainability activity in 2009.

Businesses in London look to be the most proactive when it comes to water efficiency in the coming year with more organisations in the capital planning investment in water saving measures than companies from any other area.

The research also revealed that attitudes to sustainability vary by industry. The public sector was found to be the best at implementing environmental initiatives with half of organisations in this area possessing an environmental policy. The hotel and restaurant trade shows scope for improvement, with 40% having no sustainability measures in place at all. This is of particular concern as prior research finds businesses in the retail, hospitality and service sectors are often wasting up to half of all the water they use.

Ian Barker, Head of Water Resources at the Environment Agency said: 'It is vital that businesses remain committed to best practice through this difficult economic period. Whilst we appreciate the strains that company finances are under, the majority of efficiency measures actually reduce costs by reducing water and energy use.

'Not only is green business good business, but also we all have our part to play to help save water.'

To showcase best practice in water efficiency, The Environment Agency is today launching its Water Efficiency Awards, sponsored by Defra, Ofwat and the Food and Drink Federation. Backed by partners Business Link, Envirowise, IEMA and the Welsh Assembly Government, the Awards are in their ninth year and are the leading scheme in England and Wales to recognise the achievements of business in promoting water efficiency. The Environment Agency Water Efficiency Awards were launched in 2000 and are held bi-annually. The next Awards ceremony will next take place on 15 July 2009. Businesses can find more details on past winners or enter their own firms at http://www.water-efficiency-awards.org.uk

This story was featured on The Environmental-Expert Website

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