Pharma industry could reap more rewards from water efficiency, reports find
UK pharmaceuticals companies are beginning to harness the financial benefits of water efficiency but could do more to access the greatest cost savings - and prepare for key changes due to affect industry in 2010, research by Water Technology List (WTL) and Envirowise has revealed.
UK pharmaceuticals companies are beginning to harness the financial benefits of water efficiency but could do more to access the greatest cost savings - and prepare for key changes due to affect industry in 2010, research by Water Technology List (WTL) and Envirowise has revealed.
A survey of more than 500 managing directors and financial directors has revealed that 35% of companies have already reduced spending on utilities, including water and energy, as part of wider efficiency drives.
Yet there remains further potential for pharmaceuticals businesses to realise the benefits of water efficiency. A separate Envirowise survey of more than 400 decisionmakers has shown that 61% of senior managers do not know how much money their company spends on water, while 57% are unaware of the potential cost savings available through reducing water usage - typically between 20-50% of water supply and disposal charges.
Tackling water usage could also lessen the impact of price changes as a result of the EU's Water Framework Directive, which obliges EU countries to implement "true cost" pricing by the end of 2010 and penalises organisations that are less water-efficient. It can also contribute to carbon reduction targets and help businesses prepare for the introduction of the Government's 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 steps that businesses can take to improve their water efficiency, which will give them access to 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, reducing the overall volume of water required.
"The cost of implementing water saving devices and water recovery and reuse technology is often cited as the main barrier to water efficiency, but the savings available from lower mains water and disposal charges can be significant," she said.
In addition, UK businesses which pay income or corporation tax can also claim tax relief on recovery and reuse systems and water saving devices through the WTL, which lists more than 1,800 eligible products and forms part of the Enhanced Capital Allowance (ECA) scheme for water-efficient technology.
