The best way to improve resource efficiency in your retail business is to adopt a systematic, step-by-step approach. This should look at the way you buy and use resources such as energy, water, goods and materials.

Environmental management for retailers

This process may be part of an environmental management system (EMS), which will put in place a formal policy and procedures to help you save money, increase efficiency and comply with legislation. For more information, see set up an environmental management system.

ISO 50001 is based on a management model of continual improvement. It provides a framework for organisations to develop more efficient ways to use energy.

Retail environmental management tips

If you don't have the time and money to set up an EMS, you can still use some of the key elements to help you reduce your resource use.

You should make sure you:

• carry out an initial, baseline review of your environmental performance
• analyse the data and information that you collect
• produce an action plan of what you're going to do, when it will be done and who will do it
• set objectives and targets so that you can keep track of performance and the benefits
• review performance and make any necessary improvements

For more information, see carry out an environmental review of your business and set environmental performance targets.

As well as the resource efficiency of your own business, you should also look at ways of involving your supply chain and working with suppliers to improve your environmental performance. For more information, see supply chain efficiency. 

Packaging waste is often seen by customers as a major issue for the retail industry. You should use packaging as efficiently as possible by balancing its use against the need to prevent product wastage. You should also start to think differently about how your products can be delivered and used by customers, eg reusable delivery packaging, product refills, self-dispensing and concentrates.

The most cost-effective and environmentally-friendly way to deal with packaging waste is to avoid producing the waste in the first place. If you can't completely eliminate the waste, you should reduce the amount you produce as much as possible, use packaging with recycled content and design packaging so that it can be recycled and reused - see packaging and packaging waste management.

Rising landfill costs mean that it's increasingly important for your business to find other ways to deal with the waste you do produce. You should consider options such as reusing, recycling, composting and energy-from-waste - see how to reduce your business waste to save money.

Practical tips to reduce retail packaging waste

Your business can reduce packaging waste by:

• analysing sales patterns to avoid over-ordering
• using just-in-time delivery systems to ensure you only store the minimum amount of stock
• drawing up a returns policy for unsold and damaged goods
• sending unused display materials to your head office - if you have one - for recycling
• separating your packaging waste to help with recycling
• returning used clothes hangers to the supplier for recycling and potential reimbursement
• using plastic crates or totes instead of single-use cardboard boxes
• investigating how your business could use waste exchange schemes
• using self-stacking boxes or crates instead of shrink-wrap
• involving your staff and making them more aware of your business' waste policy and procedures
• training staff to open packaging carefully and avoid contamination in order to allow reuse
• ensuring cardboard and plastic sheeting are flattened and baled before being recycled
• considering shredding paper and card to produce packing or fillers
• comparing the cost and services provided by waste contractors

You should work with your suppliers to use packaging as efficiently as possible - see supply chain efficiency.

The waste that your retail business produces must be handled correctly. You have a legal duty of care to handle and dispose of waste responsibly - see duty of care for business waste.

You should reuse and recycle the waste that you can't avoid producing - for more information see recycling your retail waste.

In order to reuse and recycle as much of your waste as possible, you should store different waste materials separately.

Retail waste management

To ensure your business reuses and recycles the maximum levels of waste materials possible, you should make a number of changes to your business' day-to-day operations including:

• providing clear instructions to staff on what they should do with waste materials
• investigating any centralised recycling services that might be on offer in your area
• clearly labelling bins and other containers with the waste they should contain
• flattening boxes and other materials so they take up less room in the bin
• always separating clean and dirty recyclables
• separating food waste and investigating how you can recycle or properly dispose of it

Waste storage areas in your retail business

The storage of waste before it is disposed of should also be a key component of your waste management practices.

Waste storage areas should:

• be safe and accessible and, if possible, specifically designed for waste storage
• include bins and other containers that can cope with the type and volume of waste you need to store
• have labels on all containers showing the type of waste allowed
• prevent water from becoming contaminated by stored waste
• include a means of waste volume-reduction such as baling, compacting or shredding

Recycling your waste is often cheaper than general waste disposal. The retail sector is one of the largest producers of commercial waste, so there is an opportunity to make significant savings through recycling.

Recycling also makes good business sense because you can:

• reduce the amount of waste that you need to send to landfill
• save space and reduce clutter
• improve your business' environmental credentials

What can you recycle?

Materials you can recycle include:

• paper and card
• metals
• glass
• polythene and other plastic wrappings
• plastic bottles
• carpets and other textiles
• magazines and other printed matter

Finding a recycling waste contractor

You should consider the following questions to find a recycling waste contractor suitable for your business' recycling needs:

• What materials will you recycle?
• Will you need the materials to be collected by the waste contractor, or can you drop them off at a facility?
• Is the service suitable for the size of your business? If you produce very little waste, you may not need a weekly scheduled collection.
• How will you collect and store the materials for recycling? See handling and storing your retail waste.
• How will you pay for the service? For example, is there an annual charge or a fee each time the container/bin is emptied?
• Does the recycling contractor collect mixed waste?

Make sure you use a licensed waste contractor to recycle your waste.

Setting up a recycling scheme

Once you have found a suitable recycling contractor, you should consider how a recycling scheme will work in your business. This includes:

• deciding on the location and labelling of recycling containers - this needs to be convenient for both staff and collectors
• arranging the collection schedule with the contractor
• employee involvement and training - staff members should understand what materials are being recycled and where they should put them
• launch and promotion - so that staff are clear about when to start using the service

Legal responsibilities

Businesses that produce waste must take reasonable care to store waste safely and securely, and prevent it from causing pollution or harming anyone. This is known as your duty of care. For more information see duty of care for business waste.

Water is a precious commodity that is often taken for granted by many retail businesses. However, making even small changes to your business can save water and reduce your costs. Fitting simple water-saving devices in washrooms or toilets can reduce water use by up to 40 per cent.

The actions your business can take to reduce its water use could include:

• taking regular and accurate meter readings to track your overall water use
• detecting leaks and overflows within your business
• ensuring key members of staff know how to isolate your water supply
• assessing water pressure as high pressure can result in excessive water use and cause leaks
• fitting a quarter-turn isolation valve to regulate water flow
• reducing heat loss or gain by not running hot and cold pipes close together
• reducing the amount of water used for cleaning and rinsing
• making a commitment to use less water as part of your business' environmental policy
• setting targets to reduce water use

There are a number of simple and cost-effective technologies that you can use to reduce water use in your business. These devices include:

• cistern volume adjusters and low-volume flush cisterns
• proximity sensors fitted in urinals
• hand detectors on taps
• rainwater collection
• sub-metering on individual washrooms to analyse use

For more information, see water reviews, policies and action plans and save water at commercial premises.

Energy consumption is a major area of cost for all retail businesses. Whether you are using electricity, gas or liquefied petroleum gas, using these energy sources more efficiently can bring cost savings.

How to reduce your energy bills

There are a number of practical steps your business can take to reduce energy costs. These steps include:

• analysing your utility bills to see how much energy your business is actually using
• identifying areas in your store where you could make savings
• installing sub-meters that are read regularly to track energy use
• finding where energy is being wasted within your business
• setting targets for energy use reductions
• considering installing a building energy management system

Energy efficiency measures

Small changes to your retail premises can have a dramatic impact on your energy bills. Some changes you can make include:

• reducing the temperature in your premises - each °C that you reduce it will save up to 8 per cent on your energy bills each year
• setting air conditioning systems to come on only when the temperature reaches 24°C
• checking the timers on your heating so it only comes on when your store is open
• using timer switches and movement detectors to prevent lights and equipment operating out of hours or in areas which are used infrequently, eg stock rooms
• implementing a policy and putting up signs and stickers to encourage all staff to switch off equipment and lights when they are not in use
• replacing old 38-millimetre fluorescent tubes with 26-millimetre tubes of a lower wattage
• turning off refrigerators containing non-perishable goods overnight
• planning preventative maintenance programmes for boilers, lifts, escalators, ovens, refrigerators, freezers and air-conditioning equipment
• insulating hot-water tanks and pipes

For more information, see save money by using energy more efficiently.

Your retail business uses many types of resources in its day-to-day operation. There are many steps you can take to reduce retail waste and improve energy and water efficiency.

Try out the following no-cost and low-cost tips to see how much money your business could save:

1. Write an environmental policy for your business that details all the steps you will be taking - see write an environmental policy.
2. Separate wastes, particularly cardboard and plastic, and send them for reuse or recycling.
3. Arrange for returns and unsold products to be sent back to suppliers.
4. Reuse packaging materials such as bubble wrap, boxes and pallets, and crates.
5. Place paper recycling bins next to printers and photocopiers and always use double-sided printing.
6. Consider buying some of your stock items in bulk to reduce packaging costs.
7. Ensure heating, air conditioning, lighting and other equipment is only on when it's needed.
8. Install energy-efficient equipment when old equipment needs replacing.
9. Monitor water use and install water-saving devices such as tap sensors and low-flush toilets.
10. Ensure all staff are trained to use resources efficiently and include relevant issues in induction and refresher training.