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ESG in UK Manufacturing: Growth, Supply Chain Cooperation and the Future of Sustainability
Read time: 1 min Added date: 12/02/2024
In partnership with Make UK
Britain’s manufacturers are stepping up their ESG commitments as the topic rises rapidly on the boardroom agenda in response to the growing labour market, government, investor and customer pressure.
The number of firms setting ESG targets for their business has increased by 48%, with around two thirds (62%) of manufacturers now doing so since 2021, according to a new report (PDF, 3.2 MB) launched by Make UK and Lloyds Bank – ESG in UK Manufacturing: Growth, Supply Chain Cooperation and the Future of Sustainability in the Industry.
Progress, opportunities and challenges for the sector
The report (PDF, 3.2 MB), which looked at the progress, opportunities and challenges faced by UK manufacturers looking to improve their ESG strategies, also finds that more than three quarters (77%) of firms are receiving ESG requests from their customers, but less than half say they have the resources required to meet them, highlighting a need for greater support.
Companies are also accelerating their ESG requirements of their suppliers, with nearly three quarters (74%) of them building ESG conditions into their procurement strategies, up from just two thirds (66%) two years ago. Yet, despite this, four in ten (45%) are not aware of their suppliers’ performance against their targets.
Raising ambitions and commitments
Manufacturers are raising their ambitions and commitments to ESG as the issue moves beyond solely environmental issues. Customers, suppliers, investors, and employees are now increasingly expecting that companies make the issue as core to their strategy as any other business objective.
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