From: August issue NZ Manufacturer www.nzmanufacturer.co.nz

By EMA Head of Manufacturing Jane Finlayson

Global demand for sustainable goods is increasing, and among New Zealand manufacturers there’s an urgent need to innovate to remain competitive.

From SMEs up to huge multinationals, ‘business as usual’ won’t be enough to meet the sustainability challenges the world faces.

Legislation both in New Zealand and overseas will force the hand of many manufacturers. In New Zealand, regulations such as the Emissions Reduction  Plan will place an increasingly high cost on manufacturing emissions.

Overseas, the likes of the EU’s Carbon Border Adjustment Mechanism (CBAM) will have an impact on our exported products.

The CBAM is a tool that puts a price on the carbon emitted during the production of carbon-intensive goods that are entering the EU, and to encourage cleaner industrial production in non-EU countries. 

But sustainability is also good business. Like any strategic initiative done right, it can reduce costs, increase revenue and mitigate risks. Sustainability is about futureproofing.

In late July, Minister for Small Business and Manufacturing Andrew Bayly launched a report with compelling new research on the circular economy.

It is intended to support the growth and resilience of New Zealand’s advanced manufacturing sector by identifying and mapping the sector’s emissions and waste patterns and finding ways for businesses to adopt net-zero circular manufacturing practices.

The aim is to move away from a linear economy to one that ‘designs out’ waste and pollution, keeps resources in use for as long as possible, then recovers and regenerates products.

The EMA and other industry experts fed into the report, ‘Mapping Emissions and Waste Data in the Manufacturing Sector’, which found that circular economy practices do exist in New Zealand, within and across all the manufacturing subsectors, but they differ greatly.

The key similarity was in challenges around waste. Of the 17 million tonnes of waste produced annually in this country, 92% ends up in landfill.

Most of the manufacturing subsectors depend on imports and as a result ‘offshore’ their emissions.

Circular supply chains enable businesses to become more resilient by decoupling operations from the extraction of natural resources, thereby increasing material security and reducing exposure to price volatility.

The report found that opportunities exist to use more local products, but clear emissions policies were needed to encourage the shift.

Barriers to adopting the circular economy model include access to capital, risk aversion and a lack of knowledge and understanding of waste reporting – there needs to be better understanding of where materials end up at the end-of-use, and how they can be recovered.

From fashion and textiles to cosmetics and food products, consumers are increasingly seeking sustainable goods. This is an opportunity for Kiwi manufacturers to promote a sustainable ‘brand New Zealand’ to the world.

The report on manufacturing emissions is the macro part of that sustainability journey, and it will help to inform policy in areas such as encouraging government policies to help businesses adopt the circular economy, foster collaboration across agencies and aid in setting national targets for circularity.

There is also practical help for individual manufacturers.  Along with the report, the Sustainable Business Network announced an updated Climate Action Toolbox, which is a free online resource to help small and medium businesses reduce emissions.

This includes tailored guidance for manufacturers on how to fund climate initiatives, making it easier to take action.

The toolbox can be found on the business.govt.nz and Sustainable Business Network websites.

One of the companies that provided a case study in the toolbox was Auckland sustainable cabinetry and furniture manufacturer Spacebar Design.

Director Anson Kong says that sustainability is about changing mindsets, and this includes convincing clients to repurpose furniture rather than replace it.

A set of Spacebar drawers at the Sustainable Business Council offices was made out of recycled plywood, with a vivid green tabletop made from recycled fishing nets and other plastics.

‘Ghost nets’ are fishing nets that have been lost or abandoned in the ocean. These nets continue to trap everything in their path, presenting a major problem for the health of our oceans and marine life. An initiative that encourages the recycling of materials such as damaged or ageing fishing nets is part of the circular economy.

Creating durable, practical materials out of a waste product that can often cause harm in our oceans is a win-win.

Technology can also play a huge role in sustainable business models, and over the past four years the EMA has been heavily involved in upskilling manufacturers and encouraging them to embrace technology to help with productivity.  There are also very clear benefits in other areas including safeguarding and caring for your people and the environment.

Many of the case studies featured from this programme highlight cost and energy savings, making the case for change even more compelling.

The EMA has a full-day course to think through this topic, called  Introducing Sustainability: The What, the Why and the How for Businesses

Make the most of these resources and tap into the experts to speed up a sustainability journey and develop circular practices that benefit not only the environment but the bottom line as well.