Black Country manufacturers should embrace sustainability

Dave Atkinson is regional director for the West Midlands at Lloyds Bank Commercial Banking.

He says: "The manufacturing industry, while vital for production and innovation, is known for its high energy consumption and carbon emissions. The government is pushing for net zero by 2050, meaning manufacturers are facing mounting pressure to cut their environmental footprint. This isn’t just a tick box exercise anymore but a key business advantage, enabling manufacturers to lower operational costs, cut waste, and develop sustainable products that align with customer needs. This move will also bolster the decarbonisation agenda of other businesses in their supply chains, helping foster investment, innovation, and job creation.

"And in the Black Country alone, there are more than 3,000 manufacturing firms – this is a significant regional cluster of energy-intensive businesses, and a key group to support in tackling carbon reduction.

"The latest Business Barometer from Lloyds Bank Commercial Banking showed that nearly a third (31 per cent) of companies in the West Midlands, the highest proportion in the UK, think that investing in sustainability – such as decarbonising operations or offering more sustainable solutions to customers – represents the biggest opportunity for them to grow their business over the next six months.

"Clearly firms in the Black Country can see both the environmental and commercial benefits of decarbonising. However, there's still a lot of work to be done to make sure everyone in the region is on board with these sustainable efforts."

Mr Atkinson has outlined key areas firms should look at:

* Engage the team

For businesses to advance their sustainability plans, they must involve their workforce to ensure everyone is engaged, well-informed, and working towards shared goals.

Training for staff is one effective method to foster a culture of sustainability. Each department and colleague should have their own sustainability targets relevant to their roles, and regularly gathering feedback is valuable for assessing the effectiveness of initiatives and guiding future strategies.

Coordinated efforts across the business can also lead to significant reductions in landfill waste. This can involve investing in reusable materials and focusing on energy emission reductions.

* Assessing supply chains

Evaluating business supply chains is another easy way to reduce a firm’s overall carbon footprint. This means ensuring all suppliers, from postage and packaging to printer ink suppliers, share the same values in decarbonising.

The Black Country is home to a whole host of firms who put sustainability at their heart, and engaging with these like-minded companies can help to promote decarbonisation as a priority in the supply chain.

* Investing in the future

A great way to become more cost-effective in the long term and reduce a firm’s carbon footprint is to take advantage of business loans and funding for sustainable equipment and renewable energy sources. Many businesses in the region are investing in green technology with the support of Lloyds Bank, reducing energy bills through solar panel financing.

Bilston-based Parker Precision, for example, used Lloyds Bank's Clean Growth Financing Initiative to install 162 solar panels. This investment significantly increased the firm’s energy self-sufficiency and reduced its emissions. The 66.15 kWh system provides about a third of the site's energy needs and has reduced the firm’s monthly electricity bill, while the panels are also used to charge the firm’s electric company car via a charge point.

"Lloyds Bank will continue to be by the side of manufacturers, there to offer support and advice when needed to help them seize opportunities for decarbonisation. By collaborating and sharing knowledge, the Black Country can significantly reduce its carbon emissions," Mr Atkinson enthused.