The Benefits of embedding an ESG strategy into your manufacturing business

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If you are in the manufacturing sector, there is no escaping ESG (Environmental, Social and Governance). Producing products sustainably is no longer an optional benefit, but a necessity to remain competitive in the market and mitigate future risk. Manufacturing is responsible for 10-15% of the UK’s GHG emissions (Greenhouse gases), which necessitates significant environmental responsibility for the sector.

As well as facing unprecedented economic factors, manufacturers are dealing with increasing expectations from stakeholders, who are becoming more environmentally and socially aware. This is impacting both supplier and customer relationships as well as employees who are prioritising working for companies that can demonstrate ESG credentials. Greenwashing has been an issue for some organisations who are grappling with embedding a meaningful strategy; box ticking simply doesn’t work as the ESG economy matures and organisations need to be careful about damaging their reputation.

Currently SME Manufacturers still have a choice around ESG Compliance

Although SME manufacturers are not currently being forced to comply with ESG policies, being part of a supply chain means that companies who do have ESG reporting mandates are ‘choosing’ suppliers who can demonstrate their ESG credentials and therefore it is becoming essential in order to remain competitive.

Companies are really starting to feel the heat and if they haven’t already put an action plan in place, the pressure is now on to start thinking about it. However, companies that are taking a positive approach and creating an agenda that balances People, Planet and Profit are starting to realise that a well-co-ordinated ESG strategy can have benefits for their organisations, rather than just being a headache.

What are the benefits?


Looking at energy efficiencies can not only improve ESG performance, but also create savings that can be reinvested into innovation projects or improve cashflow. For example, some companies have created significant savings by investing in Solar panels on their warehouses.


A strong ESG strategy can drive innovation and help companies identify new business opportunities. For example, by developing more sustainable products and processes, companies can create new markets and differentiate themselves from competitors.

Improved cash flow and competitiveness

Investment in R&D can also have financial rewards. By taking advantage of government tax incentives for qualifying projects, companies can improve cashflow and increase competitiveness at the same time.

Future proof your organisation

Embedding an ESG strategy now, will give your organisation the best opportunity to capitalise on the competitive advantages available, whilst satisfying stakeholders and creating efficiencies that deliver long term savings that can be re-invested. A meaningful ESG strategy will also future proof your organisation, ahead of any future government mandates.

How can Menzies help?

We have a full range of services and support available, including help with the following:


  • Carbon footprinting
  • Energy Saving Opportunity Scheme (ESOS) and Streamlined Energy Carbon Reporting (SECR) compliance Carbon reduction plans
  • Advice re offsetting and green energy contracts
  • Specific environmental tax advice
  • Assurance & benchmarking engagements
  • Cashflow & ROI reviews Energy consultancy


  • Employee engagement
  • Culture, purpose, values & strategy planning
  • Employee benefits services
  • Employment tax solutions – tax efficient staff rewards
  • Organisational development & leadership review
  • HR compliance


  • Structure & risk review
  • Governance training
  • Tax

Financial information & reporting

  1. Internal controls
  2. Systems advice
  3. Financial forecasting
  4. Key person protection

Next steps

If you would like to explore how our ESG offering could benefit your business, please get in contact with Richard Singleton:

    Posted in Blog, Manufacturing