Resource scarcity squeezes 93% of food and beverage businesses, reveals ABB
A new report from ABB Motion, entitled “Circularity: No Time to Waste,” reveals that 93 per cent of food and beverage businesses are feeling the effects of resource scarcity.
Raw materials (37 per cent) are seen as the scarcest resource, followed by energy (34 per cent), labour (32 per cent), and electronic components (26 per cent). This resource scarcity has led to increased costs for 37 per cent of businesses, as well as supply chain disruption for 27 per cent and slowdowns in production capacity for 25 per cent.
Despite energy being rated as one of the scarcest resources, two-fifths reported it as their biggest source of waste. This highlights an urgent need for greater energy efficiency across industry, something the International Energy Agency (IEA) says will be a critical lever in meeting Net Zero targets.
The global survey, conducted by Sapio Research in October 2023, gathered responses from 3,304 industrial decision-makers across 12 countries including the US, China, India, UK, Sweden, Germany, and France. Respondents represented a range of industries, such as energy, metals, chemicals, oil and gas, marine, mining, and utilities.
While there is optimism about investing in circularity, the survey also identified obstacles to immediate progress. For example, no single definition of “circularity” was accepted by the majority of respondents. Also, only eight per cent see circularity as a company-wide responsibility, but this group experienced the highest level of improvements across key circularity metrics, such as energy consumption, use of recycled materials, and carbon emissions.
The survey also reveals that many important circular practices have still only been adopted by a minority of businesses, including partnering with waste management companies (41 per cent), incorporating energy-efficient technologies (37 per cent), and promoting circular principles in the supply chain (32 per cent). Encouragingly, 67 per cent are using recycled materials in their products to some extent.
Investing in circularity has already led to measurable benefits, with the most common being waste reduction (46 percent) and energy efficiency improvements (45 percent). Although some businesses express concern about the upfront investment required, many anticipate long-term improvements in process efficiency and cost control.
Most respondents (78 per cent) agree that the circular economy encourages innovation and drives competitiveness. They also support increased regulation and reporting requirements (74 per cent) and want more government support for adopting circular business practices (77 per cent).
Tarak Mehta, president of ABB Motion, noted the pressing need to transition to a circular economy has never been clearer.
“Our current way of life is depleting resources at an unsustainable rate, contributing to emissions and climate change,” Mehta said. “Embracing circularity is not only essential for safeguarding our environment but also for enhancing business resilience.
“This survey highlights the importance of taking a holistic approach, instilling responsibility at all levels of the organization, and embracing new technologies and collaborations. While there are challenges to overcome, businesses that fully embrace circularity see significant benefits, from cost control to improved reputation. We must act now, to make circularity the norm in global industries. There is no time to waste.”
To read the full report: https://social.abb/circularity-report
