Businesses need to do more to minimise their environmental impact, new research suggests.

Some 41% of businesses are unaware that water consumption adds to their carbon footprint, despite claiming to have green aspirations, according to a survey commissioned by the Environment Agency.

A lack of knowledge is the main barrier to greening their company for 48% of respondents.

Ian Barker, head of water at the Environment Agency, said: “Water is vital to our economy and its use underpins many of our most important industries. However, climate change and population growth mean that businesses must adapt their behaviours to ensure a sustainable balance can be set between the demands of people and the environment.”

The supply and treatment of water accounts for 1% of all the electricity purchased in the UK and is responsible for around 4m tonnes of CO2 emissions, according to Water UK.

Agricultural firms are most aware of the role water wastage plays in carbon emission, with 67% demonstrating a full knowledge, while 59% of businesses and 56% of hotels and restaurants showed a good understanding of the situation.

The Environment Agency’s 2009 Water Efficiency Awards, which aims to demonstrate that sustainability and water efficiency go hand in hand for business, are open to entries.

The deadline for entries is May 15, and the awards ceremony will take place on 15 July 2009. Businesses can find more details on past winners or enter their own firms at http://www.water-efficiency-awards.org.uk/ .

© Crimson Business Ltd, 2009