As manufacturers increasingly embrace net zero goals, sustainability has become a central component of business strategy, offering both environmental and economic benefits. In fact, 26% of manufacturing executives view net zero targets as a significant opportunity for their businesses in 2025. Let’s see how manufacturers can leverage these opportunities to both drive a more sustainable future and gain a competitive edge in the industry.
Commitment to Environmental, Social and Governance (ESG) Principles
The fact that nearly two-thirds of manufacturers have established ESG targets highlights a significant shift toward more responsible and sustainable business practices. By meeting or surpassing these targets, manufacturers can enhance their brand image, attract ethically conscious customers and investors, and potentially benefit from regulatory incentives. Focusing on ESG commitments can also create opportunities for new markets and partnerships, especially in sectors where sustainability is prioritised.
Net Zero Opportunities
With only about a quarter of manufacturers exploring net zero opportunities for growth, there’s a clear chance for manufacturers to differentiate themselves in an evolving market. By embracing innovation in green technologies, sustainable practices, and eco-friendly product lines, manufacturers can tap into a growing sustainability-focused segment. This approach not only meets consumer demand but also positions these manufacturers as leaders in an economy increasingly focused on greener practices.
Investing in Sustainability
With around 23% of manufacturers identifying opportunities for energy efficiency through technological investments, this area offers significant potential for both cost savings and reduced environmental impact through waste reduction. Manufacturers should also explore digital technologies such as AI, cloud computing, and IoT to optimise their processes and unlock these benefits.
Opportunities in Net Zero & Sustainability:
Easier Access to Finance: Financial institutions are increasingly favouring manufacturers with strong net zero and ESG credentials, making it easier for these businesses to secure funding.
Improved Efficiency and Productivity: Many manufacturers are uncovering cost-saving opportunities by optimising processes with advanced technologies, which not only reduces emissions but also lowers operational costs.
Innovation and Market Expansion: Creating sustainable products and services opens doors to new markets, aligning with evolving consumer preferences and giving manufacturers a competitive edge on the global stage.
Green Supply Chains and Increased Sales: A solid ESG profile is becoming essential for securing procurement contracts, helping manufacturers build sustainable supply chains and win new business. Manufacturers should emphasise their ESG credentials in tenders where environmental integrity is a key requirement.
To find out more about the future of sustainability in manufacturing get in touch with our team at info@technical-network.co.uk or give us a call on 0121 450 5000
