Waste Cuts Profits: Managing Waste Effectively is a Win-Win Option
01 Mar 2003
Waste is an operational fact that businesses cannot ignore. Savings, whether in water consumption, raw materials, energy or labour costs go straight to the bottom line. Figures from Envirowise - the Government programme that provides free practical environmental advice to UK businesses, and an active partner in the Fit For the Future national best practice campaign - show that waste costs UK industry about £15 billion each year, or about 4.5% of total turnover.
The actual cost of waste is generally acknowledged to be about ten times the basic cost of waste disposal. In one well-documented example, a waste minimisation group in Leicestershire, comprising just 10 companies, who initially estimated their joint waste costs to be about £500,000/year were shocked to find that their actual cost was £13 million/year - 26 times more than their estimate!
Fortunately, the need to conserve precious resources and reduce our impact on the environment is now widely accepted. Although recycling and reuse plays an important part in reducing the amount of waste disposed, avoiding waste in the first place should be the primary goal.
Small businesses often believe they can do little to help in terms of the global picture. SMEs can be assured that waste minimisation need not be expensive, or time-consuming.
Simple measures, diligently applied, can have a real impact on economic and environmental performance.
For example, sharing environmental initiatives with others engaged in the same trade or locality can be a viable proposition.
Water reduction measures typically save 20-50% in water-related costs, and many companies are unaware that they are, in effect, paying twice for their water.
This is because in addition to charges for the amount of water used, they are also billed according to the volume and concentration of wastewater they discharge. Cutting water consumption can therefore reduce both the effluent charge and the overall water bill.
Legislative measures also play a part in encouraging waste minimisation. Linked with enforcement actions and possible financial penalties for noncompliance, one or more of the following key pieces of waste-related legislation cover most companies, regardless of their size:
the EEC Waste Directive EEC/75/442 & 91/156;
the Packaging and Packaging Waste Directive EEC94/62;
the Landfill Directive 1993/31/EC;
the Hazardous Waste Directive 91/689/EEC;
the Environmental Protection Act 1990 (Parts I & II); and the Integrated Pollution Prevention and Control (IPPC) and Local Air Pollution Control (LAPC) regimes.
Many SMEs already recognise the environment as a key management issue. Cost-effective waste minimisation is an investment with real potential to increase profits and improve our environment.
www.envirowise.gov.uk.
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