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Sustainable consumption and production: How to improve resource efficiency |
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For any organisation to perform well it must be resource efficient. Resource efficiency is about achieving more with less. This page includes information, case studies and links to further resources on reducing costs and improving performance through sustainable production practices. Use the right hand navigation for practical advice and support on sustainable production issues.
The problem with inefficient production processesIf we are to realise the vision of 'one planet living', without widening social inequalities, ever increasing demands on resources, and the waste associated with unsustainable levels of production and consumption, we need to learn to use resources much more efficiently. Organisations that have moved to more efficient production practices have seen many benefits including reduced costs, increased productivity and better stakeholder relations.
Under 'business as usual' projections, we will face trade-offs between economic and environmental objectives, which could impose significant costs on society either through limits to economic growth or through the effects of environmental damage. Climate change is already having an impact on the global economy, communities and the environment. Similarly, the balance between water supply and demand is becoming an ever more vital issue as water use continues to steadily rise. However, looked at a different way, these environmental and social problems can point to opportunities to improve production processes and competitiveness by highlighting inefficiencies. For example, the amount of waste we generate in the UK is growing by 3% annually, costing industry billions of pounds a year in waste disposal. Action to mainstream sustainable production can address both this productivity gap and the burden it places on the environment. What is driving sustainable production?Production practices and pollution have long been targeted by environmental legislation and (for fuel in particular) by fiscal measures, with recent priority put on ways to tackle unsustainable levels of carbon emissions and waste. Cost is another major factor. Organisations are rarely aware of how inefficient they are in their use of resources and how much this costs them and so by extension their customers. In the case of waste, once the outlay on materials, treatment, energy and wasted labour are added to the costs of disposal, most organisations find that minimising waste at source will boost profitability. Reducing or preventing pollution - over expensive end-of-pipe fixes - will almost always lower costs, and so could raise the value of products. Sustainable innovation and environmental technologies Forward-thinking organisations can benefit in many ways from identifying improvements to the efficiency of existing processes or designing new ways of production. Sustainable innovation can lead to reduced costs, better management of risks, improved stakeholder relations, and can create a more productive working environment by engaging employees. Recognising the importance of sustainable innovation and environmental technologies to the competitiveness of UK businesses, the Government has developed a wide range of initiatives to support and promote it including; funding for research and development for technologies addressing sustainable development; mobilisation of funding for sustainable innovation for small and medium-sized businesses; and Government initiatives working with and advising business on topics such as innovation in the environmental industries sector. More information on Government support can be found on the advice and support for business (sustainable innovation) page.
Regulations, environmental taxes and market instruments Modern, outcome-focused regulation is used in the UK to tackle pollution from production processes - by preventing or minimising environmental impacts - and to achieve high standards of environmental management. Integrated Pollution Prevention and Control (IPPC) is a system which introduces a more integrated approach to controlling pollution from industrial sources with the aim of preventing (or reducing) emissions into air, water and land. Producer responsibility regulation is another legislative tool which aims to ensure that businesses take responsibility for the products they place on the market once those products reach the end of their life.
Government is committed to introducing increases in a way that is revenue-neutral to business as a whole. For example, revenues from the Landfill Tax are being used to fund programmes to support business in improving resource efficiency. Working with the Department for Trade and Industry, HM Treasury and business stakeholders, Defra has identified a package of resource efficiency expenditure measures to use this funding under the Business Resource Efficiency and Waste (BREW) programme. Market instruments are also being employed to drive change. For example, trading can provide a least-cost solution to environmental pollution by giving participants the flexibility to make improvements when and where they decide. The European Union Emissions Trading Scheme (EU ETS) has been introduced to encourage businesses to reduce greenhouse gas emissions and works on a cap-and-trade basis. Participants in the scheme can meet their allocation by reducing emissions, reduce emissions and sell the excess allowances, or produce emissions above their allocation and buy allowances from other participants. How to use resources efficiently
Reducing energy costs is a key driver for businesses, the public sector and individuals to cut carbon emissions. Energy saving is often the easiest way for an organisation to reduce emissions although many are investing in low carbon technologies and renewable energy.
Waste minimisation is about reducing waste at source. Waste can be designed out of production processes and what cannot be designed out, can often be re-used or recycled. An effective waste minimisation programme scrutinises the whole organisation from suppliers to production practices and disposal, looking to minimise the use of resources such as water, energy, chemicals and equipment.
Environmental reporting and environmental management systems The systematic measurement and management of environmental performance can help organisations understand how to improve processes, make the most of opportunities, reduce costs, and comply with regulatory requirements and stakeholder expectations. Environmental reporting involves the regular publishing of environmental policy statements, which typically include details of environmental performance on greenhouse gas emissions, waste, water use and other impacts. Regular reporting enables organisations to raise their performance by understanding where improvements can be made. Environmental management systems (EMS) provide organisations with a more thorough way of managing the impacts of production processes and products, transport and distribution operations, and supply chains. A structured EMS can help reduce an organisation's environmental impacts, improve resource efficiency, reduce costs, and demonstrate responsible management of environmental risks and liabilities.
Further information on sustainable productionFurther information for businesses on sustainable innovation, resource efficiency, compliance with regulations, environmental reporting and environmental management systems can be found on the Advice and Support for Business page. Information for local government on environmental management and sustainable public procurement can be found on the Advice and Support for Local Authorities page.
See also |
Advice and support for:Links to Government progress on:
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Updated: 11 September 2006 |
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There is usually the potential for organisations
to minimise the use of resources at all stages of a product's life cycle
- production, distribution, use and disposal. It is important to think
about each of these stages and not just the type of input (for example,
energy) if the greatest impact is to be had. Significant improvements
can be made through reducing carbon emissions, minimising waste and taking
a strategic approach to resource productivity. |
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