Since 2021, 40 manufacturers across ten cohorts have participated in WMG’s Net Zero Innovation Network Programme (NZIN), which aims to increase sustainability in the UK’s manufacturing supply chain.

The 40 participant companies have realised a range of benefits through the programme. Energy cost reduction has been key, but others have launched new products, some are implementing clever strategies to redivert wastes, and others are re-examining processes and product design to cut both carbon emissions and costs.

First Projects

Luxury brass hardware manufacturer, Armac Martin was one of the first companies to join the programme and worked with WMG to implement sustainable packaging for key product lines in their business. WMG explored recyclable, compostable, and returnable options and the product chosen was a cost effective and biodegradable paper-based material. It has reduced packing time significantly, leading to productivity gains in the business.

Steven West, Head of Operations at Armac Martin said:

“The NZIN cohort was really insightful; it enabled us to gain support with a practical project, whilst collaborating with other organisations. It’s given us direction in our journey to Net Zero as part of our dedicated sustainability strategy.”

WMG also looked at how the company could reduce emissions across Scope 1,2 and 3[i], highlighting a range of opportunities for them to take onboard, such as installing Solar PV panels and creating a companywide pledge around sustainability targets.

WMG’s second cohort visiting Purity Brewing Company in Great Alne, Alcester

Energy Cost Reduction

The UK energy crisis hit manufacturers hard in 2021. Like many other manufacturers across the UK, the rising energy prices were impacting production costs at James Lister & Sons and reducing their bottom-line returns. Having already implemented energy minimisation measures such as a four-day week, CEO Peter Davies wanted to continue to push forward and joined WMG’s fourth Net Zero cohort.

Peter Davies, CEO, James Lister & Sons Ltd

WMG installed a series of low-cost current clamp sensors onto equipment to collect energy usage data at the Listertube division of the company. The data collected enabled the company to review which machines used the most energy, and at what time, to generate a cost per KW/hour. By identifying which assets consumed the most, and what products they made via what process, WMG could analyse if it was possible to switch production from one asset to another to save energy.

WMG identified that by turning off machines when not in use, the company could save 15% in energy costs across the production facility. They also proposed that by prioritising one machine over the other to create the product, it could result in an 82% energy saving on some individual machines. Overall, these measures saved the company 19% of energy expenditure per year.  

New Product Opportunities

The Alternative Pallet Company, based in Northamptonshire, provides a range of lightweight, strong paper-based Honeycomb pallets under the trade name PALLITE®. They joined WMG’s cohort programme to streamline production processes to make the most of all the materials they use. Although the PALLITE products are more sustainable than timber alternatives, there were still efficiencies to be made, with 10 tonnes of paper honeycomb offcuts sent to recycling each month.

WMG’s SME Group set out to find an alternative use for the Paper Honeycomb offcuts using the 6 Rs sustainability hierarchy[ii]. After looking at various “repurposing” options they suggested that two new packaging inners and fitment products could be made with the material which would have otherwise gone straight to recycling. This led to an additional £144,000 in annual revenue for the firm. To “reduce” the number of offcuts generated in the first place, WMG also recommended PALLITE invest in a slitting machine to slice the offcuts into packaging inners and packaging fitments. It reduced waste offcuts by 6 tonnes per month, which is a 60% reduction in the energy used to recycle material.

PALLITE Operations Manager Richard Darlow with WMG’s Laura Downey

the 6 Rs sustainability hierarchy

Value of Networking

Aside from the projects, the networking and connections are deemed invaluable by many participants. Guy McDonald, Director and Business Transformation Manager at Goodfish Group, manufacturers of plastic and composite components said:

“The NZIN programme was useful to meet other business leaders on similar journeys and to understand the Net Zero requirements from an OEM’s perspective, in our case Polestar.”

The Future

Despite reports that sustainability is falling down manufacturers’ priority lists, WMG is pressing forward with the programme and its mission. Small companies are continuing to register an interest and the momentum is clear from the large businesses who take part. Sara Halliday, ASD Ltd’s Sustainability and ESG Manager, who participated in WMG’s most recent cohort said:

“The Net Zero Cohort with WMG has been a positive addition to ASD's sustainability journey… Through this programme, we have not only contributed to advancing sustainability goals within manufacturing but also forged meaningful partnerships that will drive collective progress towards a greener future. The experience has reinforced our commitment to environmental stewardship, and we hope encouraged other businesses to continually progress their own sustainability plans.”

Dr Mark Swift, Director of SME Engagement at WMG adds:

“The important thing to recognise with adopting green practices in business is that it doesn’t have to cost you money, but in fact saves money and can lead to increased profitability and value add. We are seeing strong interest from a range of energy-intensive manufacturers, such as foundries and plastic processing plants to get involved in our programmes.

A typical foundry using 10 million kW hours of electricity and gas a year is the equivalent of approximately 500 coffee shops, which is why Government support for energy-intensive companies should be a priority. As we help businesses reduce the cost of energy by reducing their use of energy, we are reducing those all-important carbon emissions.”

How to get involved

The network is pre-funded through the Shared Prosperity Fund for businesses who meet the criteria. If you would like to get involved in the programme, you must, be a small medium enterprise and based in the West Midlands Combined Authority area and preferably a manufacturer.

For more information email: wmgsme@warwick.ac.uk.

First published in The Manufacturer – https://www.themanufacturer.com/magazine/the-manufacturer-q1-2024/ - read the published article for more case studies about how the NZIN programme has helped SMEs.

You can read more about how the programme works here: https://warwick.ac.uk/fac/sci/wmg/news-and-events/wmg-insights/insights-assetbank/?newsItem=8a17841a90978090019097ab27130158