Resource efficiency means using the Earth’s limited resources in a sustainable manner while minimising impacts on the environment. Resource efficiency includes for example re-manufacturing, repair, maintenance, recycling and eco-design.
Resource efficiency
Resource efficiency is one of the main drivers of companies' competitiveness, particularly in the manufacturing sector, where raw materials alone account for around 40% of production costs — rising to nearly 50% when energy and water are included. Improving resource efficiency in SMEs therefore offers significant potential to reduce costs, enhance productivity, and limit environmental impacts.
The circular economy supports this by keeping materials, components, and products in use for as long as possible. This approach is reinforced by several EU strategies and legislative frameworks, including the European Green Deal, the EU Industrial Strategy, the Waste Framework Directive, the Ecodesign for Sustainable Products Regulation, and the Energy Efficiency Directive (2023/1791), all of which promote smarter resource use, waste reduction, and safer chemicals management.
The main principles of a resource-efficient circular economy are:
- More sustainable management of natural resources — creating greater value with fewer materials;
- Engaging both companies and consumers in adopting environmentally conscious practices;
- Implementing the "polluter pays" principle to reduce environmental and chemical risks;
- Gradually eliminating subsidies that promote pollution or resource overuse
- Promoting green and innovative public procurement;
- Fostering eco-design and eco-innovation, including safer material choices and longer product life cycles.
What can a company do to become more resource efficient?
Save: Reduce resource use wherever possible, including energy, water, and chemicals — apply life cycle thinking and monitor inputs and outputs to identify potential savings.
Recycling and Reuse: Reintroduce materials and components back into production, especially through internal recycling or repair services. Ensure that reused parts do not carry over harmful substances.
Integrate safe secondary raw materials: Use recycled or secondary materials instead of virgin raw materials, provided they are safe. Be cautious with materials that may originate from sources known to contain hazardous chemicals — for instance, avoid using recycled plastics from electronic waste in products like children’s toys due to the risk of brominated flame retardants.
Optimise production: Evaluate and optimize the use of chemicals and other inputs. Identify where reductions are possible — frontline employees often have valuable insight into inefficiencies or wasteful practices.
Invest in eco-design: Design products with safer chemicals in mind, ensuring that the chemicals used do not make the recycling process energy-intensive or completely hinder recycling.
Improve energy efficiency: Upgrade to energy-efficient machinery, lighting, and heating/cooling systems. Consider renewable energy sources where possible.
Substitution for resource efficiency: Examine the relationship between chemicals used and energy consumption. Consider substituting substances that are energy-intensive during production or use.
More about resource efficiency and circular economy:
European Commission
The Roadmap to a Resource Efficient Europe
EU action plan for the Circular Economy