Sustainability high on Manufacturing & Engineering SMEs’ agenda despite economic headwinds

The message about needing to move towards a more sustainable future is being heard by the UK’s Manufacturing & Engineering SMEs as they actively plan for a ‘greener’ way of doing business, according to the latest independent research from Close Brothers Asset Finance and Leasing. 

• 82% (UK: 79%) of the UK’s Manufacturing & Engineering SMEs are actively moving to become more sustainable
• 75% (UK: 77%) believe their firm behaves sustainably
• 72% (UK: 75%) say being a sustainable business is important 

The data reveals that 72% of those polled state being a sustainable business is important to them while a further 75% believe their firm already behaves sustainably.  Four in five firms are actively enacting plans to become more sustainable, while 62% have set goals to make their firm greener and more efficient, providing hope that the ‘green revolution’ is beginning to gain traction among the UK’s smaller firms who aren’t waiting for larger businesses to take the lead. 

According to the CBI, the UK risks falling behind Europe, the US and Asia in the race towards investing in green technology if more action isn’t taken soon. However, according to the research, 60% of firms have already invested in technology to help them become more sustainable. This finding clearly demonstrates the willingness of business owners to spend capital on green technology in spite of the many challenges they face, including inflation, interest rate hikes and subdued demand. 

Our view

“The results make for encouraging reading,” said Steve Gee, CEO of Close Brothers’ Industrial Equipment Division. “The message that we need to move to a greener way of living is being heard loud and clear.” 

“Every business has a clear duty to act responsibly towards the environment and we are working with firms across the UK on renewable energy projects, including onshore wind farms, solar energy installations, battery storage projects and landfill CHP projects, to name a few.

“Clearly, action needs to be taken across the board but, speaking with our customers, there is a huge amount of innovation taking place.” 

Myles McCarthy, Group Head of Sustainability at Close Brothers added: “With the rising cost of energy and a clear trajectory for a more sustainable UK economy, it has never been more important for UK businesses to unlock the benefits energy efficiency and renewable energy can deliver. Savings in energy use help financially but they also demonstrate to a company’s stakeholders (including its customers and staff) that it is meeting its climate goals and responsibilities.”

For more information please visit closeasset.co.uk/manufacturing