In 2024, sustainability is more than just a moral choice for UK manufacturers—it’s also a business strategy that can drive growth, reduce costs, and secure a competitive edge in your market, says European Springs & Pressings LTD.
With the Labour government’s recent commitment to environmental protection through the NetZero 2050 initiative, there’s never been a better time to align your business goals and invest in sustainable practices with government support and strategic actions. This blog explores actionable steps relevant to sustainability and how they will help grow your business.
ELIMINATE WASTED ENERGY AND MATERIALS
One of the most immediate benefits of sustainable manufacturing is the reduction in energy costs. By implementing energy-efficient practices and technologies, manufacturers can significantly lower their operational expenses.
Investing in energy-efficient machinery and equipment can lead to substantial savings. While the upfront cost may be higher, the long-term reduction in energy bills makes it a smart financial move. For example, replacing outdated machines with energy-efficient models can reduce energy consumption by as much as 30-40%.
Another area to explore is encouraging employees to adopt material-saving actions or recycling efforts listed in the Waste Hierarchy. The concept is that every company will attempt to apply the highest step of the hierarchy to their waste scheme. They must only attempt the lower step if it is impossible to do the one above. So, for example, if prevention is not possible due to technical, financial or logistical issues, you try to reuse or recycle. Enforcing the waste hierarchy on your waste program is a national requirement. However, it is also a fantastic way of reducing your company’s carbon footprint.
We recommend conducting an internal review of your energy audit and current waste hierarchy. This will provide you with the information you need to make numerous small changes, such as installing motion sensor lighting, determining how high-energy machinery is used, and implementing more efficient recycling methods. These benefits will accumulate into large gains regarding company expenses, which then can be repurposed into new areas of growth.
ENHANCING BRAND REPUTATION AND GROWTH THROUGH SUSTAINABLE PRACTICES
There are also external factors that will simultaneously support sustainability and brand growth. Incorporating Corporate Social Responsibility (CSR) into your sustainable manufacturing strategy can significantly enhance brand reputation and growth. By actively engaging in CSR initiatives, such as supporting local and ethical material sourcing, manufacturers can demonstrate a holistic commitment to sustainability.
As consumers and businesses increasingly prioritise environmental responsibility, manufacturers that commit to sustainability can stand out in a competitive market. Integrating CSR into your sustainability agenda not only strengthens your brand’s appeal but also positions your business as a leader in responsible manufacturing practices.
By implementing eco-friendly initiatives and sharing them in marketing materials, manufacturers can build a stronger, more positive brand image. These actions not only attract environmentally conscious consumers but also foster loyalty among existing customers who value sustainability.
Obtaining green certifications, such as ISO 14001 for environmental management, are excellent actions that will further elevate your company’s standing. These credentials serve as a powerful endorsement of your commitment to sustainability, making your business more attractive to potential customers and partners.
ALIGN WITH THE NET-ZERO 2050 INITIATIVE FOR LONG-TERM GROWTH
The UK’s Net-Zero 2050 initiative is a national goal that no business can afford to ignore. Aligning your manufacturing processes with this initiative not only ensures compliance with future regulations but also positions your company as a leader in sustainable practices, which in turn provides the previously mentioned benefits in expenses and brand reputation.
Carbon offset programs are currently well-known as a solution. The concept of helping to fund green technologies to balance out the carbon-heavy actions of your business is working, but we believe that we are reaching a stage where manufacturers can transition to low-carbon processes and reduce their carbon offset costs.
This is partially because of the increasing number of UK government support programs. Several initiatives and funding opportunities are available in 2024 to assist manufacturers in adopting more sustainable practices, particularly through investments in renewable energy sources. These programs aim to foster innovation, promote economic growth, and support the UK’s transition to net zero. Here are some of the current ones, with more planned in the near future.
GREEN INDUSTRIES GROWTH ACCELERATOR (GIGA)
There is a committed £960 million announced to the Green Industries Growth Accelerator (GIGA). This funding is targeted at expanding the UK’s clean energy supply chains, providing manufacturers with significant opportunities for growth and innovation. This initiative is designed to help manufacturers take advantage of the growing demand for clean energy solutions, aligning with the UK’s broader decarbonisation goals. Key areas of support include:
- Carbon capture, utilisation, and storage
- Electricity networks
- Hydrogen
- Nuclear energy
- Offshore wind
INDUSTRIAL ENERGY TRANSFORMATION FUND
In addition to GIGA, the government has announced a new £185 million fund as part of the broader Industrial Energy Transformation Fund. This funding is aimed at helping businesses, including manufacturers, implement eco-friendly upgrades. Eligible upgrades include:
- High-efficiency insulation
- Heat pumps
- Solar panels
The fund is intended to support the transition to renewable energy, enabling businesses to replace inefficient equipment and adopt electric and hydrogen-based solutions.
Not all the planned support is in force yet, but they are worth monitoring as the new government is planning to enhance many additional options for our sector. Here are some examples rumoured to be on the horizon.
- Made Smarter Adoption Program: Expanded to drive innovation in manufacturing processes with sustainable goals in mind.
- Hydrogen Industry Taskforce: To support the development of hydrogen technologies that will create carbon-neutral fuel sources.
- Advanced Manufacturing Plan: Strengthening the UK’s manufacturing capabilities without sacrificing sustainable goals.
- Battery Strategy: The UK’s first Battery Strategy is expected to outline plans for a globally competitive battery supply chain by 2030, a new concept to hold excess energy creation and prevent waste.
We highly recommend staying informed about these initiatives as further details on application processes and eligibility criteria will be released. These efforts are part of the government’s continued NetZero strategy to enhance energy security and facilitate the shift to a low-carbon economy, which will undoubtedly mean significant changes per company to remain competitive.
SUSTAINABLE MANUFACTURING AT EUROPEAN SPRINGS
Sustainability in manufacturing is not just a responsibility to protect the environment, but it can also be an excellent tool for growth within a business. The increased funds gained when wasteful practices are removed are combined with a commitment to being eco-friendly to strengthen your reputation. As a result, your business has many new opportunities open to it, and therefore, as we’ve experienced, there are plenty of areas to grow into.
We recognise the critical importance of sustainability solutions here at European Springs and are dedicated to achieving our own NetZero goals. Our approach is rooted in responsible business practices, energy-efficient production, and transparent stakeholder engagement. We prioritise reducing emissions, offsetting our carbon footprint, and fostering a sustainable workplace where every employee plays a role. Through these efforts, we aim to not only enhance our operations but also inspire positive change across the wider industry.
