In many ways, resource efficiency at small and medium enterprises (SMEs) has been an ad hoc affair, reliant on individuals in organisations who are keen ‘to do their bit’ – separating paper, turning off computers at the end of the day, that sort of thing. The fact is, though, SMEs make up 99 per cent of all UK businesses and over half of all jobs in the UK, so we’d all benefit if they were invested in the resource efficiency agenda. Yet getting SMEs on board can be a challenge in more ways than one.

For a start, SMEs can be (and the clue is in the name here) small – in terms of employees, the volume of waste they produce and space. Setting aside enough physical space to store recyclables can be an unaffordable luxury when you’re paying per square metre. And the effort of keeping cardboard boxes until you have enough to make a bale can be a hassle. Likewise, sometimes cash flow just won’t allow efficiency improvements, even if they have a short payback time. A tie-in to a service provider for a whole building can also act as a barrier, as can simply not realising what options are out there. Those still keen to recycle, but who do not generate enough ‘trade waste’, often end up taking stuff home, thereby misusing the household recycling service.

However, with creeping targets and Defra’s Waste Review recognising the need for local authorities to provide recycling services to businesses, the spotlight is now focusing in.

In a bid to encourage local authorities to offer better services to SMEs, a voluntary recycling charter, the Business Recycling and Waste Services Commitment, was launched by Defra, the National Consumers’ Federation, the Local Government Association and WRAP in October 2011. The commitment sets out 12 principles of a business recycling and waste service to make recycling easy, provide value for money, prevent the misuse of household waste services and reduce waste to landfill.

Take up, though, has been low. Six months from the launch, only seven councils had signed up. Nearly three years on, just 23 councils are signatories.

Asked about this, WRAP commented: “The majority which signed up were those that were proactively working with their local businesses, but it seems to have less relevance for local authorities that don’t offer commercial waste collection or are only able to offer limited support.” The spokesperson added that WRAP is now focusing on developing evidence and guidance on business food waste collections, in part to support the Hospitality & Food Services Agreement.

However, WRAP’s Business Resource Efficiency Hub, an online advice centre developed around the same time, has proved more popular. Simon Drury, from Ricardo-AEA, which provides resource efficiency business support on behalf of WRAP, explains: “The hub features a wealth of free online resources to help businesses prevent waste and save money. The cost of raw materials is going up, but businesses are not able to increase the costs of their products in line with these rises. So any business – and SMEs are particularly vulnerable to raw material price rises – that can minimise their raw material costs and optimise their utilisation and the value of those materials to their business will have a competitive advantage over those businesses that do not.”

According to Drury, the best place for newbies to start is with the website’s interactive Green Town (pictured). It provides information for a variety of businesses, including restaurants, factories and offices, in the form of ‘hotspots’ showing where savings can be made through water efficiency, resource efficiency and recycling more.

There’s also On Course for Zero Waste, which provides free training modules, templates, case studies and other support material to improve organisations’ financial and environmental performances. Users can also enhance CVs with continuing professional development (CPD) and two course certificates accredited by the Chartered Institution of Wastes Management (CIWM).

Drury explains that WRAP does not provide ‘one to one’ support to SMEs, engaging instead through the hub and through larger companies: “WRAP will support those larger companies and engage SMEs within their supply chain to drive greater resource efficiency and support sustained business growth for SMEs.”

When WRAP worked with Manchester United, for example, it met up with SME Bettaveg, a small-scale supplier to the club that wanted to improve its use of resources. “We went into Bettaveg and identified about £1,000 worth of savings in one visit, looking at lighting, refrigerating, et cetera. We also found space was an issue for them, and helped them to understand what happens to their waste and how they can improve their resource efficiency.” Drury points out that as a result of Bettaveg’s increased environmental awareness, it was able to grow its business, and “Manchester United realised how SMEs can help drive sustainability within their organisation” – a win-win situation for everyone.

Drury admits support for SMEs in England could be better. “In terms of legislation for SMEs, it depends where you are based in the UK. England has taken a more voluntary [approach] to encourage businesses to engage with the resource agenda, and the Landfill Tax and the cost of materials are the major drivers and the incentive. I’d like to see much more engagement with SMEs and support for them. We’re hitting the tip of the iceberg on what is an important part of the UK economy.”

He concludes: “Legislative changes will see businesses obligated to recover more and do more to reduce their wastes, and the onus will be on the waste contractors and waste service providers to facilitate and provide the necessary services to enable SMEs to manage waste more effectively.”

The Scottish Approach

It’s a different picture across the border in Scotland. The Waste (Scotland) Regulations, which came into effect in January, obligate all businesses, large and small, to separate plastic, glass, metal, paper and card for recycling. Most food businesses are also required to separate food waste.

The new regulations are set to bolster the Scottish Government’s target of 70 per cent recycling with just five per cent of waste going to landfill by 2025, and SEPA and local authorities will enforce the regulations, with those who flout the laws risking a £10,000 fine.

A Zero Waste Scotland survey of 500 Scottish businesses at the end of last year revealed that 66 per cent of firms were aware of the new regulations, of which 92 per cent were confident they would be legally compliant (Director Iain Gulland is pictured above visiting staff of the Hanging Bat brewery as they prepared for the regulations).

Helping raise awareness is Resource Efficient Scotland, a free service as part of Zero Waste Scotland’s business engagement programme. It provides advice and support to help all businesses in Scotland use key resources – water, energy, raw materials – more efficiently, as well as helping them reduce their waste.

Marissa Lippiatt, Head of Resource Efficient Scotland, explains it has “engaged with over 33,000 organisations across Scotland” in the first year.

The recently-launched online ‘Savings Finder’ tool, meanwhile, enables organisations to identify ways to make more efficient use of resources and make savings. Decision makers complete a questionnaire on current resource use and receive a report highlighting the cost-saving opportunities.

“This tool is easy for companies to use and has been designed to provide simple, straightforward advice to help small and medium sized enterprises and other organisations save money”, says Lippiatt. “We’ve calculated that organisations just in Scotland could save as much as £2.9 billion every year by making more efficient use of their resources, and individual organisations could save thousands of pounds a year.”