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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
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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
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 If Metrics = Created Jobs & Sales • 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 • 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.
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