Two new reports from global bodies have called for greater investment in industrial resource efficiency to tackle resource scarcity risks, cut costs and drive sustainable development.
The separate reports were published this month by the World Economic Forum (WEF) and the United Nations (UN).
Tackling resource scarcity
The WEF report, titled More with Less: Scaling Sustainable Consumption and Resource Efficiency, argues that a green transition is going to be essential for tackling resource scarcity risks and avoiding the multi-trillion dollar costs that would otherwise arise from energy insecurity and material shortages.
The research was carried out by economic forecasting agency, Oxford Economics, in association with Accenture.
It highlights potential crises, such as a peak metal demand occurring by 2030 unless metal recycling is greatly increased, and points to barriers preventing the shift towards more resource-efficient economies, including supply chain complexities, limited policy incentives, short-term outlooks, and a proliferation of green standards that confuses consumers.
Savings by sector
The report analyses the carbon, steel, and iron sectors in major world economies and concludes that resource efficiency measures in those three industries alone could save up to $2 trillion (~£1.3 trillion).
For consumer goods industries, the savings could come to $37 billion (~£23.7 billion) by 2030, if basic energy efficiency measures are taken, and if energy prices rise in line with some analysts’ expectations, this could rise to over $55 billion (~£35.2 billion).
'Economic stability'
The WEF’s report goes on to warn that "the exhaustion of natural resources is a structural risk to long-term economic stability", citing the examples of price shocks that have increased the price of cocoa by 246 per cent over the past decade, and seen the price of palm oil rise by 230 per cent over the same period.
Sarita Nayyar, head of consumer industries at the WEF said: "The sustainability agenda is not an abstract development concept. There is real economic value at stake.
"Companies that effectively weave resource efficiency into their core strategy and operations can drive revenue growth, reduce cost and improve brand reputation."
'Nice to have'
The report also calls on business leaders to play a more proactive role in promoting sustainable business models, by helping to promote more effective environmental policies and regulations, embedding sustainability through their organisations, and encouraging customers to switch to more sustainable goods and services.
Peter Lacy, managing director for sustainability services at Accenture, said: "Scaling resource efficiency is not just 'nice to have'. It is a business imperative; a new model for sustainable growth in a world where we need to do more with less."
Industrial energy efficiency
Meanwhile, the United Nations has also published a separate report urging businesses to invest more in energy-efficient technologies, to foster sustainable growth and tackle global challenges such as climate change, biodiversity and poverty reduction.
The latest Industrial Development Report, the flagship publication of the UN Industrial Development Organization (UNIDO), argues that industrial energy efficiency is key to sustainable development. It particularly focuses on developing countries.
UNIDO’s director general, Kandeh K Yumkella said: "A world that has just reached a population of seven billion must take into account industrial energy efficiency, if it wants to address such challenges as green growth, employment generation, security, climate change, food production and poverty reduction."
Posted under General Interest on 25 January 2012
