In a report to the British government, it said UK businesses could save 6.4 billion pounds a year by the improved management of energy, water, food and waste resources.

"There is understandably a focus on carbon in policy making at the moment. However, there are equally pressing resource demands across many areas of the economy which need to be addressed," said John Harman, former chairman of the Environment Agency and lead author of the report.

"We cannot rely on the market to act in time to anticipate constraints in natural resource stocks, we have to act in advance."

Water resources are already under pressure in many parts of Britain but the effects of climate change and an increase in population will put greater pressure on water supplies.