A new report released by Barclays Corporate Banking has revealed the latest trends regarding decarbonisation and Scope 3 (indirect) emission reporting in the Manufacturing sector by speaking to senior managers in manufacturing businesses. Currently, Scope 3 emission reporting remains voluntary.
UK manufacturers are taking action to measure and reduce emissions
- Nearly nine in 10 senior business managers have a clear strategy in place to measure and reduce their Scope 3 emissions (89%)
- Brand differentiation (30%) and future-proofing their businesses (29%) are the key drivers of business’ Scope 3 emissions commitment
Research showed that businesses in Greater London (95%) and the East Midlands (95%) are the most likely to have Scope 3 emission strategies already in place, with Scotland (77%) and Yorkshire and the Humber (63%) the least likely. However, recently there have been calls to adopt the International Sustainability Standards Board protocol for mandatory Scope 3 disclosures, leading manufacturers to take this action.
Emission reporting is leading to innovation and investment
Despite pressures on multiple fronts, nearly half of businesses (49%) are extremely confident of growth in 2023 and found durable solutions to the recent global supply chain disruption, such as widening the number of suppliers for key raw materials (38%), and bringing elements of their supply chain in-house (35%).
However, tracking, reporting and reducing the Scope 3 emissions produced by operations is becoming the latest supply chain issue on leaders’ agenda. This need for action is driving innovation across UK manufacturing in a bid to meet customers’ changing expectations, such as:
- Creating more recyclable packaging (31%)
- Reducing air freight use (30%)
- Use of sustainable materials in development of new products (29%)
Employee demand is driving the push towards decarbonisation
- More than eight in 10 manufacturers have a formal carbon emissions reduction strategy to achieve net zero output by 2050 (83%)
- Nearly all say their carbon emissions reduction strategy is currently on track (96%)
- A third say employee demand is a key driver of their carbon emissions reduction strategy (34%)
The full report can be accessed here.
