Manufacturers target environmental, social and governance

The number of UK manufacturers with environmental, social and governance (ESG) targets is up by nearly half since 2021, says trade body Make UK.

The manufacturing representative finds that around two-thirds of manufacturers now have ESG targets for their business.

Launched alongside Lloyds Bank, the report, ESG in manufacturing: Growth, supply chain cooperation and the future of sustainability in the industry,  has reviewed the progress and opportunities faced by UK manufacturers.

However, the report has also found that 77% of firms are receiving ESG requests from their customers, but less than half say they have the resources to meet them.

Nearly three-quarters of the companies looked at have built ESG conditions into their procurement strategies, up from 66% only two years ago. Although four in ten say they are not aware of their suppliers' performance against their targets.

ESG transition plan disclosures, which include how firms identify, assess and manage environmental and social related risks and opportunities, are set to become mandatory for many UK companies later this year.