ESG Gains Momentum Among British Manufacturers
British manufacturers are increasing their focus on environmental, social, and governance (ESG) practices as they respond to pressures from various sources like the labour market, government, investors, and customers.
A recent report from Make UK and Lloyds Bank shows a significant rise in the number of companies setting ESG targets. About two-thirds (62%) of manufacturers have adopted these targets since 2021, marking a 48% increase.
The report highlights that many firms are receiving ESG requests from customers, but fewer than half feel equipped to meet them. Additionally, more companies are integrating ESG criteria into their procurement strategies, although a sizable portion remain unaware of their suppliers' progress in meeting ESG goals.
These developments come as mandatory ESG disclosures are set to become the norm for many UK companies later this year.
Faye Skelton, Head of Policy at Make UK, says that ESG is no longer just about the environment; it is becoming a fundamental part of business strategy. Those who embrace this shift will gain a competitive edge.
Huw Howells, Head of Infrastructure, Energy, and Industrials at Lloyds Bank, stresses the importance of standardised ESG disclosures in directing capital toward companies making positive impacts. Lloyds is committed to supporting small and medium-sized enterprises (SMEs) in their transition to achieving net-zero emissions.
Source: Make UK