Improve your environmental performance

Reduce costs by improving your environmental performance


Good environmental practices can improve business performance and reduce your business costs by cutting your use of raw materials, energy, water and packaging.

Improve environmental performance by using energy more efficiently

Saving energy is the easiest way for you to save money. In doing so, you can reduce the carbon footprint of your business.

Changing employee behaviour, using more efficient equipment and designing more efficient processes are all ways you can lower your bills. You may be able to take advantage of certain tax breaks too.

See our guide on how to save money by using energy more efficiently.

Improve environmental performance by using reducing your waste

Waste is the result of using materials inefficiently. Waste costs are twofold:

  • you pay first for materials that you don't use
  • you pay a second time to get rid of them

By using raw materials more efficiently, recycling, reducing packaging and making production processes more efficient, you can save money and help protect the environment.

See our guide on how to reduce your business waste to save money.

Improve environmental performance by using investing to save

Paying for regular inspection and maintenance of equipment may save you money in the longer term - for example by improving energy efficiency, reducing your use of raw materials or avoiding breakdowns.

There are also significant benefits to investing in technology that reduces your energy and water use. A lot of equipment costs far more to run than to buy. You could save money by spending more in the first place to buy more energy-efficient machinery and equipment.

Cut your tax bill through environmental improvements

If you invest in energy and water-saving technologies, and environmentally friendly vehicles, your business could qualify for Enhanced Capital Allowances (ECAs). These can help you to reduce your tax bill.

There are three ECA schemes:

  • energy-saving plant and machinery
  • low carbon dioxide emission cars, and natural gas and hydrogen refuelling infrastructure
  • water conservation plant and machinery

See our guide on Enhanced Capital Allowances for efficient technologies.

Improve employee performance through environmental improvements

Becoming a more sustainable business can have a real impact on your staff. You may see an increase in productivity, as people often enjoy working for ethically driven companies. It could also reduce staff turnover and save on recruitment costs.

See how to improve employee relations with good environmental practices.