Almost three-quarters of manufacturing firms do not see transitioning to net zero as a priority amid the current energy crisis, according to a new report.
Half of the 159 SMEs across the country surveyed by the South West Manufacturing Advisory Service (SWMAS) said they saw efforts to cut carbon emissions as a positive expansion for UK manufacturing,
However, only 42% of respondents said they were confident it would actually be beneficial for their individual business.
Somerset-based SWMAS said almost three quarters of the firms it had spoken to had said they were already working towards net zero (73%), but only 2% knew the carbon footprint for the products they supply, while just 3% had a detailed carbon footprint ready for their organisation.
Only 37% of the businesses who took part had pledged to achieve net zero, but three quarters of these firms said they were aiming to reach this at least 10 years before the government’s 2050 target.
Nick Golding, managing director at SWMAS, said: “Profitability remains a challenge for most firms, particularly with the current energy crisis which is showing no signs of waning.
“It is understandable that for most, implementing the new net zero standard isn’t a priority with other challenges being faced, particularly when planning and implementing a scheme to neutralise their carbon footprint will cost additional time, resources and money.”
SWMAS added that almost two-thirds of the manufacturing firms it spoke to did not think the benefits outweighed the cost of implementing low carbon improvements, while almost half said there was nothing driving them to prioritise net zero over other issues.
Almost half (48%) of the companies did tell researchers they thought promoting any net zero ambitions would help them win future work. Furthermore, a quarter said they believed it would attract more skilled workers.
Mr Golding said the last of these findings indicated “some optimism” from manufacturers, despite ongoing challenges around price increases, supply chain disruption, and skills shortages.
He added: “It’s clear that many firms see the benefits of achieving net zero, but there are a number of challenges that could be preventing their progression.
“There are lessons for policymakers to consider, particularly in relation to simplifying planning requirements for onsite energy systems such as solar and wind as well as incentives for these technologies to support the manufacturing transition towards a net zero future.”
Read next:
- First Hinkley Point C nuclear reactor arrives on site in Somerset
- Gloucestershire firm appointed to £10bn public sector framework
- Devon defence jobs secured after British Army vehicle contract win
- Food producer Pilgrim’s UK adds 50 jobs at expanded Cornwall factory
Like this story? Why not sign up to get the latest South West business news straight to your inbox.
