Understanding Resource Efficiency, from Aspects to Practices

Key Takeaways

Resource efficiency is a practice of using resources minimally to gain optimal results.
In resource efficiency, several aspects must be optimized, such as waste reduction, resource conservation, and process optimization.
To make resources more efficient, you can use an eco-friendly design, recycle, and integrate safe secondary raw materials.

Often, productivity is measured by production capacity, rapid processes, and the quality of the results. Though, some other invisible aspects also have similar importance, such as resource use and management.

Given the significant benefits of resources and their availability, which also shape the future, companies need to implement resource efficiency across all business lines. However, it is important to note that efficiency is not just about cost savings.

Then, what aspects does it cover, and how can it be put into practice? Learn about the concept and practical guidelines below!

What Is Resource Efficiency?

Resource efficiency is an effort to achieve optimal results by using minimal resources. At the industry level, this effort is crucial to maintain business sustainability in the long term, especially in:

Increasing company profit: When a company is capable of producing a similar number of products with minimal resources, the product price per unit can be lower. That way, it can potentially increase the profit margin.
Supporting environmental sustainability: By minimizing resource usage, a company can reduce the pressure on the environment and lower the amount of waste.
Maintaining the company’s reputation: Resource efficiency demonstrates a company’s commitment to responsible business practices. This is evident in the company’s ability to manage costs optimally, maintain consumer trust through a reputation as an environmentally responsible company, and enhance employee loyalty through effective and sustainable management. These aspects can boost investor, consumer, and employee trust.

More to read: Predictive Maintenance: Explore Its Benefits & Applications

Aspects for Resource Efficiency

Every company can determine the efficiency aspects according to the sector, company size, material types, and other factors. Yet, some main aspects must be considered:

1. Waste Reduction

Waste reduction can start from setting measurable targets. After that, companies need to ensure that they do not purchase excessive amounts of materials, optimize the use of raw materials, and recycle materials that are still usable.

PT Chandra Daya Investasi Tbk (CDI Group) also supports plastic waste recycling through a third-party program run by the Yayasan Al Bustaniyah, a waste bank supported by PT Krakatau Chandra Energi (KCE).

Every three months, CDI Group sends recyclable waste to the Al Bustaniyah Waste Bank. This effort is aimed at achieving the “zero waste to landfill” target by ensuring that all waste is reused or processed responsibly.

2. Resource Conservation

To accomplish resource conservation, companies must implement energy-saving procedures, such as decreasing energy consumption, installing solar panels, and transitioning to more eco-friendly devices.

3. Process Optimization

Companies can optimize processes by leveraging modern technologies and methods, including artificial intelligence (AI) and automation. One process optimization is lean manufacturing. This method focuses on eliminating activities that do not bring more value to the customers, such as excessive feedstock use or lengthy waiting times.

4. Sustainable Procurement

Sustainable procurement means companies can gain raw materials and resources from responsible and sustainable suppliers. To implement it, companies must establish clear regulations, evaluate suppliers based on environmental performance, and leverage technology to improve traceability and transparency.

How to Use Resources Efficiently

Here are some efforts that companies can make to implement resource efficiency:

Saving resources: Companies can identify wasteful processes. They should also consider resource use from raw material procurement through production and distribution to disposal or recycling to identify opportunities for efficiency at every stage.
Recycling and reusing materials: If there are materials and components in the production process that are still usable, companies can reuse them. For example, the garment industry transforms fabric scraps into a variety of accessories to help reduce waste while optimizing the use of raw materials.
Investing in eco-friendly designs: When designing products, companies can use safer chemicals. Equally important, they must ensure that these chemicals do not require a significant amount of energy to recycle.
Improving energy efficiency: This can be achieved by improving the efficiency of machinery, lighting systems, and heating and cooling systems through the use of more energy-efficient technologies. Where possible, companies may also consider using renewable energy sources.
Integrating safe secondary raw materials: Recycled materials or secondary raw materials may be selected to replace primary raw materials, provided they are safe in terms of origin, hazardous substance content, and quality.

How CDI Group Ensures Sustainability and Operational Efficiency

PT Chandra Daya Investasi Tbk (CDI Group), as a leading infrastructure company in Southeast Asia, ensures sustainability through regulations and commitments as follows:

1. Regulations on Sustainability

CDI Group integrates sustainability principles into their strategy and operational activities through environmental, social, and governance (ESG) policies. Regarding the environmental aspect specifically, CDI Group has established the following key commitments:

Reducing greenhouse gas emissions to support the mitigation of climate change and net-zero emissions targets established by the Indonesian government.
Optimizing natural resources through water and energy consumption efficiency in the company's operations.
Strengthening the effort to reduce air emissions, waste, and wastewater from the company’s operations.
Protecting, preserving, managing, and sustainably recovering biodiversity.
Complying with all applicable environmental regulations at both the regional and national levels.

2. CDI Group’s Commitments Towards Sustainability

CDI Group’s commitment to sustainability and operational efficiency is reflected in the following:

The use of renewable energy sources has reached 2,199.82 kWp, with plans to expand the solar power plant (PLTS) to 3 MWp.
The planting of 214 trees by employees of PT Krakatau Chandra Energi (KCE), a subsidiary of the CDI Group, is part of a carbon emissions reduction program.
Implementation of a Continuous Emissions Monitoring System (CEMS) to track air emissions in real time.
Use of Dry Low NOx Burner (DLN) technology to help reduce NOx emissions for a healthier and cleaner atmosphere.

In the end, with the right management, resource efficiency not only benefits the company but also conserves the environment as the “home” for business to grow. To implement this practice in an integrated way, you do not have to go it alone. Consult with CDI Group, #YourGrowthPartner, on your business goals and needs!

Interesting reading: Why Should Industry Support the Energy Transition in Indonesia?

Frequently Asked Questions (FAQ)

Here is some important information regarding resource efficiency you must know:

1. What Are Examples of Resource Efficiency in the Industry?

Some examples of resource efficiency initiatives in the industrial sector include conserving energy and water, reducing production waste, implementing digitalization, optimizing fuel use, and adopting more environmentally friendly operational processes.

2. Why Is Digital Technology Important for Industrial Efficiency?

Digital technology is essential for speeding up work processes, improving the accuracy of decision-making, reducing operating costs, enhancing coordination and access to information, and supporting equipment maintenance.