More carrot less stick
February 24th 2010

Britain 's manufacturers are improving their environmental performance and reducing emissions through clearer incentives and rewards, according to a survey by EEF, the manufacturers' organisation.

According to its 2009 Environment Survey ‘Seizing the Initiative’ manufacturers are increasingly aware of and, taking action on climate change issues, with over half having taken action to reduce their carbon footprint. Even during the course of the recession companies had maintained this focus with only one in ten companies saying it had taken a lower priority.

Over a third of companies measure their carbon footprint despite there being no requirement to do so and three quarters of companies are already involved in or plant to engage in a supplier management programme. Furthermore, customer requirement (34%) and adhering to an environmental management system (51%), which is often itself a customer requirement, are important factors in improving environmental performance.

However, the survey also showed that to help tackle climate change, greater emphasis should be placed on incentive schemes which are visible to participants and reward good behaviour. The successes of Climate Change Agreements provide evidence to suggest that this approach works well.

EEF used the figures to urge the government to set out a balanced, coherent outcome based policy landscape to tackle this global issue. Commenting, EEF Head of Climate & Environment Policy, Gareth Stace, said: "Manufacturers are demonstrating a positive approach to tackling climate change and reducing their emissions, even in the teeth of a severe recession. However, using a stick to beat companies into improving their environmental performance is not the answer, as this approach will only serve to increase their costs with no benefits. Policy must focus on encouraging companies to take a proactive approach to produce results and reward early action.

“Despite companies clear commitment to addressing climate change there is a disconnect between the government policy and the practical experience of companies on the ground. This is especially acute amongst small and medium size companies who often lack the resources and expertise to improve their environmental performance.”

“The move to a low carbon economy presents a tremendous opportunity for business. However, we must ensure that the many smaller companies without the tools and support to take advantage don’t get lost in the maelstrom of activity or through lack of understanding of government policy. To engage this important demographic government must ensure that information and guidance is better targeted and focused."

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