Impact of global warming clearly understood by Manufacturing and Engineering firms

Over 80% of the UK’s Manufacturing and Engineering SMEs believe global warming poses a serious threat to humanity’s collective future and that their business can help tackle climate change, yet many have not factored it into their business plans, according to the latest independent research from Close Brothers Asset Finance.

Perhaps surprisingly, just over half of Manufacturing and Engineering firms (UK average: 41%) pay to off-set the carbon emissions of their business. A further 89% feel they can offset at least 25% of their firm’s emissions; Here’s the full list:
We can become fully carbon neutral 54%
We can reach 75% carbon offset 12%
We can reach 50% carbon offset 17%
We can reach 25% carbon offset 6%
We don’t believe we can reduce our emissions by 2050 3%
Reducing carbon emissions is not a priority for us 8%

Close Brothers view
“A recent report from the British Business Bank states that while smaller businesses often have relatively low emission footprints at an individual level, they estimate that collectively they account for around half of UK business greenhouse gas emissions,” said Steve Gee, CEO of Close Brothers Asset Finance’s Industrial Equipment Division. “What’s particularly encouraging is that not only are SMEs aware of their impact, but they are actively doing something about it, including using energy more efficiently, investing in electric cars, insulating offices and switching to renewable fuel sources.”

Q: What is the main way your business is helping to tackle climate change?
UK Average Manufacturing and Engineering
We use energy efficiently 40% 42%
We use renewable energy 23% 30%
We have gone paperless 10% 10%
We recycle 19% 15%
We offset our carbon footprint 2% 1%
None of the above 5% 2%

Selected question analysis
Over three in every five respondents from the Manufacturing and Engineering sector are likely to have considered climate change and other environmental factors in their business plan.

What firms are doing to lower their emissions:
• Investing in electric cars – 59%
• Insulating offices – 66%
• Switching to renewable fuel sources – 60%
• Installing solar panels – 50%
• Installing a wind turbine – 43%