Source: Unsplash
‘Britain’s manufacturers are leading the charge towards net zero’[i]- that’s the headline finding from a recent study conducted by Make UK and Siemens. The research, which gathered the opinions of senior decision-makers at 134 UK-based manufacturing businesses, found that such companies are eager to decarbonise their operations, as the sector seeks to cut greenhouse gas emissions, reduce energy usage and ultimately switch to renewable energy sources.
Decarbonising is a clear priority for those in the UK manufacturing sector, 96% of those studied said that their business is already decarbonising or plans to do so. Further, the over-whelming majority of respondents, 8 in 10, stated that decarbonising is a high or medium priority.
Figure 1: Proportion of manufacturers reporting if decarbonisation is a high priority for their business now
Source: Make UK
Similarly to what we recently heard with SMEs- whereby Small and Medium Enterprises remain committed to investing in sustainability, despite the cost of living crisis (discussed in our blog here), manufacturers are also not being swayed from making commitments towards reaching Net Zero.
“Despite manufacturers facing unprecedented economic challenges and supply chain pressures, companies have moved the decarbonisation of their businesses up the priority ladder with around eight in ten saying it is a priority within their business. This clearly demonstrates the importance manufacturers are putting on their active journey towards net zero.”[ii]
Specifically on the economic crisis, more than half of respondents (54%) agreed that the rising cost of energy has increased their motivation to reduce emissions. In terms of where survey respondents are looking to reduce emissions, energy saving is a key area of focus.
Figure 2: percentage of companies reporting what is driving plans to decarbonise
Source: Make UK
Other popular reasons for decarbonising included ‘doing the right thing’ with 47% of respondents giving this reason, and the rising cost of raw materials which saw a quarter of respondents list this (25%).
The research noted that after the start of the war in Ukraine, the need for energy efficiency has been increasingly important given rising costs and pressures on energy supply. Three quarters (74%) of manufacturers stated that optimising energy efficiency is the focus of their decarbonisation plan, this was followed by the installation of new or upgraded equipment (in 42% of cases).
Showing the value that cutting emissions can make, Make UKs study noted that of those survey respondents who had decarbonised a third said they have saved money through improved productivity. There also positive impacts on the unlocking of finance as well as improved standing with customers and suppliers:
“With a company’s ‘green’ credentials increasingly under the microscope from customers, suppliers and investors, we also see 16% of companies with increased sales through access to new markets as a direct result of decarbonising their business. Some 14% of companies said that reducing emissions within their business has helped them to access finance for new projects.”[iii]
[i] Decarbonising Manufacturing: Challenges and Opportunities | Make UK
[ii] https://www.makeuk.org/-/media/eef/files/reports/make-uk-siemens-decarbonising-manufacturing.pdf
[iii] Ibid
Lauren has extensive experience as an analyst and market researcher in the digital technology and travel sectors. She has a background in researching and forecasting emerging technologies, with a particular passion for the Videogames and eSports industries. She joined the Critical Information Group as Head of Reports and Market Research at GRC World Forums, and leads the content and data research team at the Zero Carbon Academy. “What drew me to the academy is the opportunity to add content and commentary around sustainability across a wealth of industries and sectors.”
