Time to get ready for green regulations
Mar 30 2009 by Alun Thorne, Birmingham Post
Turning to sustainable resources management will also assist in preparing businesses for an increasingly regulated post-recession economy, according to a major new report by manufacturers’ organisation EEF.
The report, compiled in conjunction with Barclays Commercial Bank, states that manufacturers are missing out on the opportunity to make far more efficient use of environmental resources both to achieve greater cost savings and prepare for an increasingly regulated environmental landscape.
Darby Allan, EEF’s health, safety, climate and environment leader for the Midlands, said: “Many companies underestimate the true cost of inefficient business processes because of a lack of understanding of environmental costs. Behaviour change is often a first step towards realising considerable savings. However, in some instances doing things differently will require more significant investment and market forces alone may not be enough to provide for the necessary change.
“The Government must set out clear objectives and time-scales for sustainable resource management as part of its low carbon strategy, which businesses can use to plan their operations strategically.”
Ray O’Donoghue, head of manufacturing at Barclays Commercial Bank, 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.”
The report suggests that more than reducing costs, successful resource efficiency increases the utility of materials, energy and water throughout the life of products and services. It can also ensure more cost effective compliance with existing and, more importantly, incoming legislation, while promoting competitiveness through product differentiation and an enhanced corporate reputation.
Mr O’Donoghue continued: “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 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 through being differentiated from business rivals and gaining access to new markets, improved access to capital and contracts by appealing more to investors, and reduced risk through compliance with legislation. A closer relationship with suppliers may also be forged off of the back of a resource efficiency programme, also leading to a reduced risk of supply chain failures.
