A study has revealed that a staggering 61% of senior managers do not know how much money their firms spend on water. At the same time the research, from sustainability expert Envirowise, showed that around 57% were unaware of the potential cost savings via reducing water usage typically between 20 and 50% of water supply and disposal charges.
Envirowise wants to encourage more food and drink companies to tackle water challenges this year. In particular, it wants more firms to adopt cost-effective ways of making their businesses more sustainable. UK firms that pay income or corporation tax can claim tax relief on recovery and reuse systems and water saving devices through the Water Technology List (WTL). The WTL covers more than 1,800 eligible products and forms part of the Enhanced Capital Allowance (ECA) scheme for water-efficient technology.
A further survey of more than 500 mds and financial directors carried out by the WTL and Envirowise to ascertain businesses' responses to the recession has revealed that while 35% of companies have already reduced spending on utilities, including water and energy, as part of wider efficiency drives, others could be doing a lot more. Envirowise is convinced that further potential remains for food and drink businesses to realise the benefits of water efficiency.
Tackling water usage could also lessen the impact of price changes as a result of the EU's Water Framework Directive, according to Envirowise. This Directive obliges Member States to implement 'true cost' pricing by the end of 2010, and penalises those organisations which are less water-efficient.
Furthermore, it can contribute to carbon reduction targets and help businesses prepare for the introduction of the government's Carbon Reduction Commitment (CRC) Energy Efficiency Scheme, which from April will set out larger companies' carbon usage in public league tables.
Envirowise water specialist Claire Sweeney said: "There are many highly effective steps that businesses can take to improve their water efficiency, enabling them to access financial benefits and mitigate against the risk of future changes. These include water saving devices and water recovery and reuse technology such as membrane filtration systems.
"These give a high level of purification and enable a large proportion of wastewater to be reused for processes such as heating, cooling and cleaning, reducing the overall volume of water needed."