Sustainability offers businesses potential £100bn saving
- Management/saving ,
- Minimisation ,
- Recycling ,
- Corporate governance ,
- Supply chain
Embracing resource efficiency and circular-economy business models could save UK companies more than £100 billion each year, says Business in the Community (BITC)
The UK’s carbon footprint could be cut by 13% and businesses could cut productivity costs by £61 billion annually if there was wide-scale adoption of initiatives to cut consumption of energy, water and materials, according to the BITC’s latest report, Fortune favours the brave.
Adopting new business models that support new consumption patterns – such as renting goods as a service rather than selling them – or sharing value with local communities could help firms to save £29 billion each year, says the report. And designing products for a circular economy, by improving resource recovery or extending product lifecycles, offers industry an opportunity to cut costs by a further £15 billion–£18 billion.
BITC concludes that companies have to go beyond reporting-focused approaches to sustainability and incorporate the principles of resource efficiency and social responsibility into their corporate strategy.
“Those companies that innovate, demonstrate bold leadership and move beyond business-as-usual approaches to sustainability are most likely to be the winners,” it states.
Olly Benzecry, managing director at consultancy Accenture, which contributed to the report, said: “There is an opportunity to make sustainable business practices a driver of growth and competitiveness. That requires companies to innovate and to embrace the disruption that new sustainable business models can create.”
According to Accenture’s analysis, the resource efficiency savings available to firms, which are estimated to be £25 billion, could be achieved through no- or low-cost measures, such as minimising waste. A further £36 billion could be saved if payback periods are extended to more than 12 months.
BITC has also published an online “sustainable business toolkit”. It provides guidance on how to identify new sustainable, commercial opportunities.
Demand for fossil fuels will peak by 2025 if all national net-zero pledges are implemented in full and on time, the International Energy Agency (IEA) has forecast.
The Green Homes Grant is set to deliver only a fraction of the jobs and improvements intended, leading to calls for more involvement from local authorities in future schemes.
COVID-19 recovery packages have largely focused on protecting, rather than transforming, existing industries, and have been a “lost opportunity” for speeding up the global energy transition.
Half of the world's 40 largest listed oil and gas companies will have to slash their production by at least 50% by the 2030s to align with the goals of the Paris Agreement, new analysis has found.
None of England’s water and sewerage companies achieved all environmental expectations for the period 2015 to 2020, the Environment Agency has revealed. These targets included the reduction of total pollution incidents by at least one-third compared with 2012, and for incident self-reporting to be at least 75%.
The UK’s pipeline for renewable energy projects could mitigate 90% of job losses caused by COVID-19 and help deliver the government’s ‘levelling up’ agenda. That is according to a recent report from consultancy EY-Parthenon, which outlines how the UK’s £108bn “visible pipeline” of investible renewable energy projects could create 625,000 jobs.
Billions of people worldwide have been unable to access safe drinking water and sanitation in their homes during the COVID-19 pandemic, according to a progress report from the World Health Organisation focusing on the UN’s sixth Sustainable Development Goal (SDG 6) – to “ensure availability and sustainable management of water and sanitation for all by 2030”.