Resource scarcity an urgent issue for Government and businesses
A government report commissioned and launched today by Defra, and completed by AEA, has identified resources at risk of future scarcity, the consequences these could have to our economy and how UK businesses should work with Government to ensure continuity in their operations. Analysis, forecasting, innovation and cooperation are essential to achieving our future growth and meeting our low carbon policy targets.
Defra's Sustainable Consumption and Production (SCP) Evidence Programme commissioned AEA to carry out the study. AEA presented a series of recommendations to DEFRA, including:
- Business must develop analytical tools and methods to enable cross supply-chain risk assessment;
- Resource risks need to be factored into ongoing decisions by businesses in the UK;
- Businesses need to better understand their supply chains and the impacts they have on their everyday operations;
- A new partnership between business and government should be considered to ensure that businesses can understand future challenges and opportunities around resource scarcity.
A key trend identified in the report was one of increasing overall demand, mainly due to growing population levels and increased global economic development.
Work recently developed for Defra also identified that UK business could save over £6 billion per annum through adopting resource efficiency measures that cost nothing or would pay back within a year.
Phil Dolley, Resource Efficiency Director at AEA, commented: "There are some major challenges ahead for Government and businesses that require a coordinated approach. Even businesses that don‟t consider themselves affected by the issue of resource scarcity may be vulnerable through their supply chain. It is imperative that organisations start looking at how they will manage resource risk to ensure their future prosperity".
Dolley continued: "However - the picture isn't all negative. Opportunities for innovation do exist commercially in terms of substitute inputs, alternative or diversified existing markets for recycling and recovery, development of new raw material sources and through product innovation."
The results of this project will enable Defra to engage efficiently with individual sectors and will inform Defra of the need for policy relating to resource risks and of any requirements for future engagement with relevant business sectors.
Download the report from Defra's website
Full press release (PDF)