THE credit crunch is putting off businesses from investing in green measures such as energy efficiency – despite the fact it could lead to substantial cost savings, according to the latest Environment Agency (EA) research.

A poll of 1,000 UK decision-makers shows that less than half of businesses in the south-east have any form of environmental or sustainability policy in place, while 51 per cent expect to cut back on future investment as a result of economic necessity.

In the water-stressed south-east, a little more than half saw saving water as important as saving energy and only 35 per cent have a water efficiency policy.

EA regional strategic manager Peter Midgley said: “The southeast is a water stressed region.

Only two years ago we suffered the worst drought here for 100 years, which impacted on both people and the environment.

“It is vital that businesses remain committed to the environment through this difficult economic period. While we appreciate the financial strain they are under, by reducing water and energy companies can actually reduce their costs.”