Small manufacturers forced to answer 300 questions on net zero

Firms must prove their eco-credentials as part of green drive by big business.

Small manufacturers are being forced to fill out 300-question spreadsheets on their eco-credentials as part of a net zero drive by big business.

Some companies have had to take on new staff to complete paperwork being sent to them because of this new burden, while others are being asked to sign up to strict audits that ensure they follow green guidelines.

The demands are being driven by regulatory changes expected to come in next year which require large businesses to measure and disclose their “scope 3” carbon emissions, a definition that includes indirect as well as direct pollution caused by an organisation. The Telegraph has the story.

In many cases, sustainability advisors are being hired by multinationals to collect information from suppliers and are sending each one a long questionnaire to fill out.

It comes on top of already-onerous paperwork related to western sanctions on Russia and post-Brexit checks.

Cambridge-based Goodfellow, which employs around 100 people, said it now had six full-time staff to handle compliance issues such as green regulations, sanctions and Brexit issues.

Simon Kenney, chief executive of the advanced materials producer, said the lack of a widely-adopted standard on net zero rules for supply chains had created a void that a rash of environmental, social and governance (ESG) consultants were seeking to fill.

He added: “We heard the other day from an accreditation company that effectively registers companies as being ESG-compliant, which was working with one of our customers.

“As a result, we got a spreadsheet to fill in with 342 lines of things that they wanted to know. Considering we have 6,000 customers, if every customer sends us that it will be unworkable.

“It is just crazy. And of course, particularly for small businesses, it is going to impact productivity.”

Read the full story here.


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