Introducing ENWORKS By Todd Holden, Programme Director Objectives of the Partnership Since 2001……. • • • • • • To raise quality standards and achieve consistency To plug the gaps where support has been unavailable To improve communications and marketing To work towards a common vision To avoid duplication To learn from good practice and evaluate success ENWORKS Partnership The Partnership Board includes representatives from: Northwest Regional Development Agency Environment Agency Robinson Keane North West Chambers of Commerce North West Universities Association United Utilities Brother UK Groundwork North West Government Office North West Envirolink Northwest Cumbria Rural Enterprise Agency Federation of Small Businesses Institute of Directors Helping Companies to Achieve In the 2007-2010 programme ….. Jobs created / safeguarded 156 / 494 Business assisted 3,600 Cost savings £70m Material savings 224,000 tonnes Carbon dioxide savings 216,000 tonnes Water savings 3.1 m m3 Sales increased / safeguarded £30m / £65m Achieved savings Savings from opportunities with zero capital cost 6,000,000 Annual savings (£) 5,000,000 4,000,000 3,000,000 2,000,000 1,000,000 Behavioural Clean design change Premises Process Specification improvement / procurement Resource Reduction Methods New ETS Unknown North West – CO2 Savings New opportunity • Name: Embedding Resource Efficiency in Key Sectors • Duration: October 2009 – December 2012 • Value: £9,993,000 • Key Metrics: Jobs, Sales, People Trained • Key Impacts: Costs Savings (Energy, Water, Materials, Waste diverted from landfill) • Scope: Resource Efficiency Environmental Risk Sustainable Procurement …Cluster specific activity Improving Your Resource Efficiency We deliver support in Corporate Responsibility and Resource Efficiency to businesses of all sizes from all sectors. • Information services • Telephone helpline • Seminars and training • Legal compliance • Networking • Risk management • Climate change mitigation / adaptation • Audits and reviews • Opportunity identification • On-Site support • Opportunity implementation • Links to other support • Online Resource Efficiency Toolkit What we will achieve Jobs created / safeguarded 240 / 500 Business assisted 1,250 Cost savings £60 million Material savings 170,000 tonnes Carbon dioxide savings 255,000 tonnes Water savings 2,050,000 tonnes Sales increased / safeguarded £25m / £60m The effects of other metrics on activity and impact Target = number of businesses advised Activity = light touch, one off interventions training events, basic site visit no triage Impact = difficult to measure likely to be minimal The effects of other metrics on activity and impact Target = jobs and sales Activity = ‘Corporate Responsibility’ support environmental policy, legal compliance Impact = little or no efficiency savings If Metrics = Saved £, CO2, materials, water • Eco design of products and packaging • On site facilitation / change management • On site technical advice • Monitoring & measurement • Research, options analysis • Audit / review of practices • Opportunity identification & quantification If Metrics = Created Jobs & Sales • Sustainable procurement • Business continuity / risk • Legal compliance • Environmental policies • Customer demands Market Failure – NW Business Survey • Only 26% have heard the term resource efficiency • 80% think resource efficiency is important to their business • Just 33% have taken action to increase their resource efficiency • ~30% turned off lights, changed bulbs, increased recycling • ~75% anticipate no return on investment • Only 20% plan future improvements in resource efficiency • 71% have not looked for support • Common perception is that new equipment & capital investment is always necessary… Efficiency is under-rated Data Analysis Challenging perceptions: • ~75% of NW businesses think that resource efficiency improvements will deliver no return on investment • Analysing the capital cost associated with improvement actions Annual cost savings Achieved = £27m • 58% (£13.4m) achieved with no capital cost • 72% of opportunities (1844/2576) Types of market failure • Common property • Public goods • Externalities (positive and negative) • Imperfect and asymmetric information • Increasing returns • Market power …Complex issues often require complex solutions. Have you ever..? General No action taken population (100%) (67%) Action taken (33%) Plan to take action (20%) • 26% heard of term Resource Efficiency • 82% think it’s a good idea • 54% haven’t changed how they use resources in the recession • 71% haven’t sought advice • 6% couldn’t find what they wanted • 51% believe no barriers to RE • Cost perception • 85% saw a business benefit • 64 - 75% investment hasn’t resulted in cost reductions • 37% have increased recycling • 33% plan to continue with resource efficiency • Lack focus • 23% / 46% say resource efficiency is part of their business plan • Lack focus • Low investment • Perception of low return • 33% couldn’t see any benefit from improving their resource efficiency • 14% plan to take action • Lack focus Perceptions • Not relevant • Threat not opportunity • Resource efficiency = utility management • Need to invest in equipment to save energy • Investment will not reduce costs • Time consuming Challenging perceptions on Efficiency • £100 million annual savings identified • £27 million of these are achieved • 92% are achieved through a reduction in resource use • 72% of opportunities achieved with no capital cost • 58% of cost savings achieved with no capital cost • Of those achieved with capital cost… • 57% have payback period less than 1 year • 75% have payback period less than 2 years