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 programme ….. Jobs created / safeguarded156 / 494 Business assisted 3,600 Cost savings£70m Material savings224,000 tonnes Carbon dioxide savings216,000 tonnes Water savings3.1 m m3 Sales increased / safeguarded£30m / £65m

Achieved savings

North West – CO 2 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 / safeguarded240 / 500 Business assisted 1,250 Cost savings£60 million Material savings170,000 tonnes Carbon dioxide savings255,000 tonnes Water savings2,050,000 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

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 If Metrics = Saved £, CO 2, materials, water If Metrics = Created Jobs & Sales

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 population (100%) No action taken (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 33% couldn’t see any benefit from improving their resource efficiency 14% plan to take action Lack focus 85% saw a business benefit % 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

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