Across industries, organisations are racing to be more sustainable and achieve Net Zero. “UK manufacturers have an opportunity to transform what they make and how they do it, to achieve growth and future proof their businesses,” said VenDigital.
As public concern around the impact of climate change increases, alongside investors placing a keen focus on ESG performance, VenDigital adds that “leaders need to accelerate plans to decarbonise their products and operations.”
To achieve Net Zero in manufacturing, VenDigital emphasises that it will require strong commitment and informed leadership. “However, the drive to create a roadmap to decarbonisation and fund its delivery also relies on an accurate view of the business’s carbon footprint. Our research shows that senior-level commitment to reducing carbon emissions is strong across the UK’s manufacturing sector - 74% of C-Suite executives confirmed that decarbonisation is on the boardroom agenda.”
Top 5 Statistics
74% want to know more about their carbon footprint
While it is positive that many are keen to know more about their carbon footprint, VenDigital highlights that it is a surprising statistic that 26% feel they have a good enough understanding already.
“The reality is that many manufacturers will know the carbon emissions linked to transportation and logistics but relatively few will have a handle on their manufacturing process and overall operating emissions,” said VenDigital.
32% of manufacturers don’t consider carbon emissions when sourcing new parts or developing new products
Coupled with the above, this indicates a gap in understanding when it comes to manufacturing emissions. If a manufacturer doesn’t know the carbon footprint of its raw materials, it can’t calculate the total carbon footprint of its operations.
69% would only adopt a Net Zero-led sourcing strategy if it delivered cost-benefit
Despite the Net Zero by 2050 targets, VenDigital states that this figure suggests some manufacturers are not taking decarbonisation seriously.
Many decarbonisation initiatives can take years to implement, long term viewpoints are needed to identify the cost benefits. “Effective cost management can help to balance the need to decarbonise with the need to protect margins and achieve sustainable growth,” says VenDigital.
20% of new customers ask about carbon footprint before purchasing
As such, this figure gives evidence to the increased awareness from customers when it comes to sustainability, with the need to decarbonise impacting behaviours across the supply chain.
“At the moment, much of this interest is likely to focus on the carbon emissions generated by the transportation of components and raw materials, but some customers are beginning to ask for information about manufacturing emissions too,” said VenDigital.
80% believe ESG performance has a direct impact on customer buying decisions
Despite 69% stating they would only adopt a Net Zero-led sourcing strategy if it delivered cost-benefit, 80% understand the link between ESG performance and enterprise value, believing that ESG performance has a direct impact on customer buying decisions.
“However, one in five respondents may not yet understand this (e.g. only considering elements like manufacturing location and recyclability), which means their business model could be at risk in the race to net zero,” said VenDigital.
To read the full VenDigital report, click here.