We now live in a severely resource constrained world.
Increases in operating costs are invariably passed onto clients in order to maintain profitability levels. However, to off-set these increases, many organisations are now looking towards increasing their resource efficiency – making better use of their raw materials and delivering greater value through less input. Reduced reliance on price sensitive markets also limits exposure to risk and can provide a competitive advantage.
In terms of waste management, excessive waste production creates considerable long-term economic pressures, particularly in light of such commodity price instability. However, the good news is that in some cases environmental, CSR and cost benefits do go hand-in-hand.
Here are a few examples of where this can be achieved:
Prevention of waste
This is the most economical option in the long term as it reduces the amount of raw materials ultimately procured. Typically, the direct savings attributed to a reduction in waste disposal, leads to an indirect saving of 10x this amount in reduced raw material, processing and labour costs. Reduced waste leads to reduced carbon emissions right the way through an organisations’ structure and often positively affects the supply chain too.
Recycling, Recycling, Recycling
Introducing a recycling system or increasing the amount of waste that is recycled is one of the easiest ways of reducing cost while improving environmental credentials. It is also the case that typically, organisations are unaware of the recyclability of various materials that are generally disposed of to landfill – many require specialist guidance. Disposal to landfill is normally the most expensive option as this attracts a ‘landfill tax’ – recycling would mitigate this cost.
Reviewing waste handling processes
Improving the efficiency of waste handling processes, such as the introduction of waste segregation, compaction or baling usually provides expense reduction opportunities that wouldn’t otherwise be achieved. Making these changes also reduces vehicle movements and transport costs – benefitting the environment – as well as maximising any rebates available.
We are here to help our clients not only reduce costs, but also to maintain or improve service, provide added value benefits and protect their profitability for the long term. Sensible, progressive changes to existing waste processes will enable leaner business that will meet the objectives of both a Financial Director and a Sustainability Manager.
For more information, please contact us.
Article by: The Waste & Recycling Team
Article from Market Intelligence 17.3, click here to view the whole newsletter.