The manufacturing industry of South Africa is the sector consuming the largest portion of the total energy consumption and second largest portion of total water consumption per annum nationally. With a significant increase in electrical energy cost in recent years, together with the reserve energy margin dropping below the minimum level required for sustainable operation of energy utilities, energy efficiency improvement is becoming imperative for organisational success as well as national economical sustainability. This paper explores selected Lean manufacturing principles and its positive effect on energy and water efficiency. Although the implementation of Lean manufacturing techniques naturally leads to the improvement of energy and water intensity, the author believes that there is even greater potential in the development of a Lean based tool which will specifically focus on the improvement of energy and water efficiency. For this purpose the value stream mapping tool was chosen as the foundation. This paper continues to explain the process undergone to develop standardised energy and water specific waste categories to be used in conjunction with the traditional Lean wastes. The study concludes by detailing the development of the tool, together with its framework for implementation and a brief discussion on the forecasting model incorporated.