Savvy FTSE 350 companies find going green cuts costs

04 November 2009

A YouGov survey commissioned by WRAP (Waste & Resources Action Programme) has found that the UK’s largest companies are cutting costs by being resource efficient.

The survey, of FTSE 350 and other large UK companies, was commissioned to explore business attitudes to making best use of natural resources and reducing waste. It found that companies believe their green initiatives are saving money.

The findings will be shared with business leaders attending WRAP’s Annual Conference in London today (4 November). Speakers at the conference, entitled ‘Resource Efficiency: the future for UK business?’ include WRAP CEO Dr Liz Goodwin, Secretary of State for the Environment Hilary Benn, and Morrison’s CEO Marc Bolland.

61% of those questioned said their business had implemented environmental changes over the last year to cut costs. The same number (61%) said their company made changes to meet CSR or environmental objectives. 47% of respondents estimated that resource efficiency measures had saved them or would save them at least £100k a year with 17% believing it could save them more than £1m.

Companies gave a wide range of resource efficiency measures they were taking including: reducing energy consumption, cutting travel by using video/teleconference facilities, reducing water use, recycling more and investing in new processes or technology to decrease the use of natural resources.

Companies taking action to cut costs were asked what their company did to minimise use of natural resources and prevent waste. The highest number (73%) had increased e-communications (rather than printed or written), 68% had set machines to print double-sided, with 59% increasing the use of recycled materials and 51% increasing re-use of materials.

25% of those questioned said that their Board spent more time this year discussing how to use resources more efficiently.

The conference will also see the launch of academic research commissioned by WRAP and conducted by the Stockholm Environment Institute. It is the first piece of research which outlines how resource efficiency can help the UK meet its climate change targets. The research covers UK domestic emissions and those related to our consumption of goods and services imported from abroad.

It shows that making better use of our natural resources could contribute 10% of the necessary reduction in UK domestic greenhouse gas (GHG) emissions by 2020. In terms of consumer emissions (including imports), resource efficiency could reduce these by 8% by 2050.

Importantly, resource efficiency can achieve all this with no negative impact on UK GDP. The research looked at potential ways of increasing resource efficiency in the production and consumption of goods and services.

For production the ideas include: lightweighting, using different and less environmentally damaging materials, using less materials to achieve the same result, building sustainably (such as with recovered materials) and making best use of our existing infrastructure, instead of building something new. Of these, lightweighting or ‘lean production’ is by far the most effective strategy. This shows the importance of good design to reduce the environmental impact of products.

For consumption, the strategies suggested were: using goods to the end of their life, changing our diets and reducing food waste, renting instead of buying some products (eg/ high end clothing), and taking goods to be refurbished.

The research found that resource efficiency could have an immediate impact in reducing our greenhouse gas emissions – saving up to 254m tonnes over the next ten years.

Liz Goodwin, WRAP CEO said: “Resource efficiency is good for the environment, and good for business.

“Making the best use of our natural resources will not damage our economy – on the contrary it will make the UK more competitive.

“This response from the UK’s largest companies has convinced us that an increasing number are committed to improving their resource efficiency and that they can see the business benefits of doing this.

“The UK has some tough environmental targets to meet but WRAP believes we can meet them in a way that sustains and even develops our economy.”

Environment Secretary Hilary Benn said: “Businesses are facing challenging times, today more so than ever, so finding ways to save money makes a lot of sense. There are opportunities here in the UK too in the low carbon and environmental goods and services, where we currently have just over three percent of the global market. This will grow as consumers become increasingly environmentally aware and companies realise that waste is just a resource in another form and that sustainability is the key not only to the environment but to business success. Now is the time to shape our businesses of the future.”

¹ The United Nations (UNEP) definition refers to resource efficiency as: …reducing the environmental impact of the consumption and production of goods and services over their full life cycle (Cropper, 2009)

² 274 out of 301 respondents were from FTSE 350 companies. All were from the UK’s top 500 companies.

Editor's notes:

For the YouGov survey, all figures, unless otherwise stated, are from YouGov Plc.  Total sample size was 301 adults. Fieldwork was undertaken between 9th - 10th October 2009.  The survey was carried out online. The figures represent respondents from upper and middle management of FTSE 250 firms and other large UK companies (aged 18+).

A panel of environmental and business experts, including the speakers outlined above, will lead the debate at the conference. These include: Nick Pollard from Bovis Lend Lease, David Palmer-Jones - Chief Executive, SITA UK, Will Day, Chair, Sustainable Development Commission, and Joanna Yarrow - Writer and Broadcaster.

About WRAP:

1. WRAP helps individuals, businesses and local authorities to reduce waste and recycle more, making better use of resources and helping to tackle climate change.
2. Established as a not-for-profit company in 2000, WRAP is backed by government funding from England, Scotland, Wales and Northern Ireland.
3. Working in seven key areas (Construction, Retail, Manufacturing, Organics, Business Growth, Behavioural Change, and Local Authority Support), WRAP’s work focuses on market development and support to drive forward recycling and materials resource efficiency within these sectors, as well as wider communications and awareness activities including the multi-media national Recycle Now campaign for England.
4. More information on all of WRAP's programmes can be found on www.wrap.org.uk

Sarah Brown
WRAP Press Office
01295 819618
sarah.brown@wrap.org.ukTel: