Whilst the phrase “sustainable manufacturing” is one many are familiar with, pinning down what it means is less easy.
To some, it is as simple as being “green”, but the growing consensus is that the concept extends much further than that. For example, the US Department of Commerce sums it up as: “The creation of manufactured products that use processes that minimize negative environmental impacts, conserve energy and natural resources, are safe for employees, communities, and consumers and are economically sound.”
This could therefore encompass areas as diverse as minimising emissions, paying tax responsibly and operating good working conditions as detailed below:
- Investing in infastructure
- Combating bribery and corruption
- Creating jobs
- Paying tax responsibly
- Driving innovation
- Generating sales and profits
- Contributing to local economy
- Good working conditions
- Treating suppliers fairly
- Complying with the law
- Good community relations
- Respecting human rights
- Ensuring product safety
- Minimising waste and emissions
- Minimising use of hazardous substances
- Using energy and resources efficiently
- Using environmentally sound materials and energy
What are the Benefits of Sustainable Manufacturing Practices and Why Should Small and Medium Sized Enterprises (SME’s) be Embracing Them?
The key is to recognise that not only are there tangible, monetary benefits, such as reducing energy costs by investing in energy efficient plant and machinery, or increasing use of renewable energy sources, but there are also significant intangible gains to be had from improved relations with employees, suppliers and customers.
For example, a 2016 Cone Communications study reveals:
- 75% of millennials would take a pay cut to work for a socially responsible company.
- 76% of millennials would consider a company’s social and environmental commitments before deciding where to work.
- 64% of millennials would not take a job if a potential employer did not have strong corporate responsibility practices.
As a result, in the dynamic, challenging, global economy which UK manufacturers are currently operating in, the gains from developing a culture of sustainability will be a key tool to their survival. With their appetite for innovation and ability to react more swiftly than their larger competitors, UK SME’s are ideally placed to do so.
However, in order to build a sustainable manufacturing business that generates real gains, there are several hurdles to overcome:
- Firstly, is the need to identify which sustainable initiatives will generate the greatest gains and more importantly how these will be measured.
- Secondly, an action plan should be drawn up to prioritise initiatives and deliver them.
- Thirdly, the results of the activities should be measured and fed back into the start of the process to generate a culture of continuous improvement.
Measurement is important and there are many indices, ratings and standards that aim to do this. Tools such as the OECD’s Sustainable Manufacturing Toolkit are a useful place to start.
In summary, not only is introducing a culture of sustainability into all areas of the business model a means of safeguarding the long term future of UK manufacturing businesses, but it can also generate both financial and non-financial benefits if carefully implemented and monitored.
If you would like to discuss this with us in more detail or if you would like to speak with a member of our team, please contact Hannah Farmborough or call on 0207 429 4147 to be put in contact with your local representative.
This article featured in issue 4 of our manufacturing and engineering newsletter series. Read the full newsletter here: The Engine – Issue 4