This E&S Briefing Note is designed to help fund managers quickly familiarise themselves with the topic of resource efficiency as it relates to investment. It is not intended to be a detailed technical guidance document.

It is important to consider the linkage between resource efficiency and greenhouse gas (GHG) emissions. Efforts to tackle the reduction of GHG emissions resulting from business activities are inextricably linked to resource efficiency. Any improvements which a business can make in reducing the resources it uses will inevitably lead to a reduction in the GHG footprint of the business. Taking a macro-level sustainability approach, resource efficiency is also linked to the concept of the circular economy: the idea of moving away from a linear-based industrial economy to a circular-based economy which is restorative and resource efficient by design. Relevant aspects of the circular economy will also be addressed within this note.