The recession could create a lasting legacy of better resource efficiency as businesses adopt an increasingly thrifty approach, according to new research published today by Envirowise.
According to the sustainability experts, who are funded by the Scottish Government, more than two in three (69%) Scottish businesses surveyed for the Business Thrift Shift Report have developed a more detailed knowledge of their spending and resource use during the recession in an effort to find savings through the way they are run.
And two in three (62%) businesses have already identified positive efficiencies as a result of economic pressures caused by Scotland being in recession, with 28% cutting back specifically on their use of raw materials and consumables.
Official figures show that Scotland's economy is in steeper decline than the rest of the UK. In the second quarter of 2009 the Scottish economy shrank by 0.8% after a fall of 2.5% during the first quarter.
The Envirowise findings highlight how this 'thrift shift' is set to continue, with resource efficiency remaining a priority as the economy begins to recover. Two in three (64%) Scottish businesses will continue to implement tighter financial controls while almost three quarters (72%) insist they will place a far greater emphasis on energy efficiency even once the country is out of recession.
Robbie Weir, Programme Manager for Envirowise in Scotland, said: "Improved sustainability may be the sugar coating on the pill of recession. Scotland has been hit hard by the economic downturn but that hardship has bred a new business mindset, where companies understand the financial benefits of environmental change.
"Many companies have already taken positive steps to improve their resource efficiency and the benefits can be significant. In fact, Envirowise experience has shown that companies taking such action can save up to £1,000 per employee.
"Such an approach does not only lead to financial savings; it can also equip businesses to face increasing levels of environmental legislation and provides an important competitive advantage as customers become more environmentally conscious. Companies which use resources in a more sustainable way are therefore not only more likely to survive the recession in the short-term, but also better placed to thrive as the economy begins to recover."
Janette Harkess, Scottish Council for Development and Industry's, Director of Policy and Research said: "The recently-passed Scottish Climate Change Bill has made organisations and individuals more aware than ever that they will have a role to play in delivering the tough carbon emission reduction targets the Bill sets out.
"Existing and emerging technologies present an opportunity for business to redefine their operations and put into practice energy and resource efficiency measures. In tough markets it is easy for organisations to focus on short-term operations and to protect the bottom line. However, there has never been a better time for business leaders to demonstrate boldness, drive through changes, expand their networks and seize the opportunity."
Andrew Millson of Scottish Business in the Community, a not-for-profit company committed to improving the impact business has on society, said: "There is still some way to go to ensure that sustainable business practices become the rule rather than the exception.
"There has been a huge drive to get businesses to identify energy savings and we believe many Scottish companies already do something to help the environment. The opportunity now is to build upon this success by supporting businesses to take the next steps, including reducing waste and minimising carbon emissions. Now is the time to make those changes."
The Envirowise Business Thrift Shift report is available free at the Envirowise Thrift Shift pages. Businesses can access free guidance and practical advice on resource efficiency by visiting the Envirowise website or calling the Envirowise advice line on 0800 585794.
Issued on behalf of Envirowise by Trimedia. For further media information please contact Laura McKenzie or Billy Partridge on 0131 226 2363 or email laura.mckenzie@trimediauk.com or billy.partridge@trimediauk.com.
Notes to editors:
Envirowise is a Scottish Government-funded programme dedicated to putting the sustainable use of resources at the heart of Scottish business practice.
Since 1994 Envirowise has helped UK businesses save over £1Bn by enabling them to significantly reduce their environmental footprints.
Envirowise offers businesses of all sizes and sectors a wide range of free, independent and practical advice designed to genuinely improve their processes, profitability and competitiveness. Services include:
- The Envirowise Advice Line on 0800 585 794.
- An encyclopaedic website of valuable and relevant information.
- On-site visits conducted by a nationwide team of expert advisors.
- Over 200 events each year, from Product Design Workshops to major exhibitions.
About the Business Thrift Shift Report:
This report presents the findings of Envirowise research aimed at understanding the extent to which business attitudes to resource efficiency have altered as a result of the economic climate, as well as identifying areas where lasting – and more welcome – changes have been made.
Led by Continental Research, the business omnibus survey was conducted during September 2009. Participants included Managing Directors and Finance Directors from companies across England, Scotland and Wales, with more than 300 small businesses (with a turnover of £50k to £1 million) and 200 medium to large businesses (with a turnover of more than £1 million) being surveyed. The research also encompassed a wide variety of sectors and industries, including wholesale, hotel and catering, business services, retail, manufacturing, construction, transport, agriculture and mining.
In addition, Envirowise has spoken to a wide range of businesses and industry commentators to seek individual opinions on the Business Thrift Shift – many of which have been included in the report, which is available to download at the Envirowise Thrift Shift pages.