British businesses could save £23bn a year from 'resource efficiency'

British businesses can save around £23bn a year by reducing waste and improving the way they use energy and water, new research shows.

The research identifies these huge potential savings to UK businesses from what is known as ‘resource efficiency’ – using materials, energy and water more efficiently in ways that need very little or no investment.

Most of the potential low cost savings come from using raw materials more efficiently and generating less waste.

This is calculated to offer an annual saving of around £18bn, with energy efficiency at £4bn and water efficiency of less than £1bn making up the remainder.

The research shows that some good progress has been made by business in being more efficient in the way they use resources, but there are still considerable opportunities out there.

The main barriers to taking the necessary action have been identified as behavioural, financial and a lack of information.

The Waste & Resources Action Programme has been working with businesses on resource efficiency, which has led to the establishment of a number of voluntary agreements across different sectors all of which have secured financial and environmental benefits.

The research project, which was prepared by Oakdene Hollins, uses updated figures to a similar project published in 2007 to calculate the total savings potential.

Environment Secretary Caroline Spelman said: "Moving to a green economy offers businesses opportunities to grow into the future. Becoming more resource efficient contributes to a business’s bottom line, increases profitability and their capacity to grow."

"In addition to improving competitiveness, businesses could reduce carbon emissions by 29 million tonnes a year."

Further information:
Defra