Isra-Mart srl: Environment falls down the agenda for manufacturers

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Mid-sized manufacturers see the green economy as offering more risks than opportunities, a survey conducted for insurers Zurich has found

The company interviewed 100 companies with turnovers between £5m and £300m and found around a third felt highly exposed to environmental risks, such as land or water contamination, but only 13 per cent thought their biggest opportunity in the next year would relate to green issues.

Although large European companies have come down in favour of tougher environmental targets to create jobs and growth, just eight per cent of smaller organisations surveyed ranked green issues in the top three factors affecting the expansion of their business. Overall, only four per cent surveyed said they were under pressure to reduce their carbon footprint.

Zurich said this suggested that despite the introduction of the Carbon Reduction Commitment (CRC) and Environmental Damage Regulations, businesses thought complying with environmental legislation was "necessary but not essential".

It warned that environmental considerations should be higher up the agenda for manufacturers of all sizes, which should be looking to incorporate sustainability into their growth strategies. Businesses failing to give due attention to resource depletion, accidents or risky operational practices risk becoming uncompetitive in the future, Zurich cautioned.

"Understandably, the economic climate and the ability to break in to new markets are high priorities for UK manufacturers," said Steve Green, European middle market network leader at Zurich. "However, because the reputational and business interruption risks posed by environmental factors are so great, the manufacturing industry needs to recognise this and respond proactively."