According to its 2009 Environment Survey ‘Seizing the Initiative’ manufacturers are increasingly aware of and, taking action on climate change issues, with over half having taken action to reduce their carbon footprint. Even during the course of the recession companies had maintained this focus with only one in ten companies saying it had taken a lower priority.
Over a third of companies measure their carbon footprint despite there being no requirement to do so and three quarters of companies are already involved in or plant to engage in a supplier management programme. Furthermore, customer requirement (34%) and adhering to an environmental management system (51%), which is often itself a customer requirement, are important factors in improving environmental performance.
However, the survey also showed that to help tackle climate change, greater emphasis should be placed on incentive schemes which are visible to participants and reward good behaviour. The successes of Climate Change Agreements provide evidence to suggest that this approach works well.
EEF used the figures to urge the government to set out a balanced, coherent outcome based policy landscape to tackle this global issue. Commenting, EEF Head of Climate & Environment Policy, Gareth Stace, said:
"Manufacturers are demonstrating a positive approach to tackling climate change and reducing their emissions, even in the teeth of a severe recession. However, using a stick to beat companies into improving their environmental performance is not the answer, as this approach will only serve to increase their costs with no benefits. Policy must focus on encouraging companies to take a proactive approach to produce results and reward early action .
“Despite companies clear commitment to addressing climate change there is a disconnect between the government policy and the practical experience of companies on the ground. This is especially acute amongst small and medium size companies who often lack the resources and expertise to improve their environmental performance.”
“The move to a low carbon economy presents a tremendous opportunity for business. However, we must ensure that the many smaller companies without the tools and support to take advantage don’t get lost in the maelstrom of activity or through lack of understanding of government policy. To engage this important demographic government must ensure that information and guidance is better targeted and focused
ENDS
Notes:
In response, EEF is making recommendations to both government and industry to shape policy and improve support
Messages to government
1. Manufacturers are prepared to take action to reduce their climate change impacts. However, the direct relationship between improved business efficiencies and climate change impacts must be better understood and communicated to organisations.
2. Greater emphasis should be placed on incentive schemes which are visible to participants and reward good behaviour. The successes of Climate Change Agreements provide evidence to suggest that this approach works well.
3. Alternatives to tax and regulation should be explored, encouraged and promoted. The government’s guidance on voluntary reporting of greenhouse gas emissions is an example of what more could be done to stimulate activity.
4. Small- and medium-sized enterprises (SME) contribute to 20% of total UK GHG emissions. However, methods to engage and encourage small and medium-sized companies to take action on carbon reduction requires tailored support which is easily accessible. The Carbon Trust’s ‘Industrial Energy Efficiency Accelerator’ is an example of how more might be achieved.
5. Clearer, more effective policy signals, along with greater levels of targeted support and guidance, are required so manufacturers can invest with greater certainty
Messages to manufacturers:
1. Current political developments provide an excellent opportunity to take advantage of business benefits of climate change and to differentiate from your competitors. Government-funded programmes can help to accelerate this advancement.
2. The impacts of carbon need to be better understood throughout the business as a cost, directly linked to the bottom line. Developing a strategic vision of carbon flows confidence in the development of low-carbon solutions. Within organisations will provide a clear path to reducing these impacts. For example greenhouse gas reporting and green procurement strategies are mechanisms for delivering these rewards.
3. UK manufacturers have the opportunity to benefit from a global market for low carbon manufactured goods and services worth an estimated £4.5 trillion by 2015. But to penetrate this emerging market, companies must position themselves to take advantage of low-carbon opportunities, integrating this as a core component in their business models.