Sustainability

Supporting manufacturers to succeed

By Hon Chris Penk, Minister for Small Business and Manufacturing While the Government has been setting out a pro-growth agenda, a question I often hear when I visit manufacturers or speak to business audiences is: what support is available for firms that want to expand and contribute to a stronger economy? For those who haven’t come across it yet, I want to highlight the Regional Business Partner (RBP) Network. This nationwide programme, delivered in partnership with business chambers, economic development agencies and the national provider Poutama Trust, offers practical, tailored support to help small businesses grow. The past financial year has been one of the strongest yet for the RBP Network. Nearly 4,500 businesses engaged with the programme, which is the highest number outside the COVID-19 response. That’s a seven per cent increase on the previous year, and 13 per cent higher than in 2022/23. This growing uptake tells us that business owners value the advice and connections on offer, and that word-of-mouth recommendations are carrying real weight. One example of what this support can achieve is Coastwood Furniture, a long-established manufacturer in Greymouth. Known for solid timber furniture designed for both retail and commercial clients, Coastwood has been in business for more than 25 years. Like many regional firms, it faces challenges: rising operating costs, softening retail demand, and limited access to experienced leadership talent. Within the company, some staff had stepped into management roles without formal training. Across its retail network, staff were not always equipped to present Coastwood products consistently. With support from Development West Coast through the RBP programme, Coastwood put targeted training in place. This included leadership development workshops, advanced health and safety training, and a “train the trainer” sales initiative to help retail partners around the country. The impact has been clear. Leaders […]

Eight reasons why how you communicate sustainability matters

By Jule Scherer, thinkstep ANZ How you talk about your business’s sustainability efforts can make or break your reputation. Communicating poorly, or not at all, risks damaging your reputation, losing customer trust, or even being accused of greenwashing. On the other hand, clear and credible communication can win you new business, strengthen stakeholder loyalty and attract and retain skilled employees. Done well, it turns sustainability from a compliance exercise into a competitive advantage and helps the whole industry to move ahead. What is sustainability communication? Sustainability communication goes far beyond formal reporting or meeting compliance. It shapes your brand and influences how people see your business. It can take many forms: from conversations with customers, to updates on social media, to the claims you make in packaging and tender documents. Whatever the channel, the foundation must always be solid data and evidence. At thinkstep-anz, we keep emphasising this because credible communication builds trust and gives your business a real edge. Here are eight reasons why getting communication right matters and how it can strengthen your business. 1. It drives better business performance Good communication can give you a competitive edge. When you clearly explain your sustainability goals and progress, you demonstrate leadership and differentiate your business from others in the market. Whether you’re exporting high-value food products or supplying components for infrastructure, clear and credible communication signals to your buyers that your business is future-focused and resilient. For manufacturers, this may mean explaining how you’re reducing emissions across your operations or sourcing more sustainable raw materials. The clearer you are, the more confidence you build in your brand. 2. It builds stakeholder support Manufacturers rarely act alone. You rely on suppliers, logistics partners, distributors, customers and employees to achieve your goals. Communicating your sustainability strategy in plain English – and […]

Artisan skill and technology a successful brew at Zealong Tea Estates

With 48 hectares of certified organic Camellia sinensis growing in the heart of the Waikato, Zealong Tea Estate is New Zealand’s only commercial tea estate. You can tour the estate and sculpture walk, sample a high tea at their Tea Room, have a luxurious French-inspired meal at their Camellia Restaurant prepared by a chef plucked from the Michelin-starred kitchens of Paris, or take part in a traditional tasting of their internationally awarded teas. As a visitor destination, it’s a major asset to the region and the teas have been served to the likes of China’s President Xi Jinping and Her Majesty Queen Camilla during official events, and the estate has been filmed for the BBC Earth documentary One Cup, a Thousand Stories, which highlighted the estate’s quality-based approach to producing certified organic tea. Behind the scenes, the process of manufacturing its teas blends artisan skill and technology. The EMA’s Nicholas Russell sat down with Zealong General Manager Sen Kong to find out where they have used technology to improve efficiency but also how the human touch remains irreplaceable. Zealong has invested heavily in both people and technology. Why is the human touch still so crucial in your industry? Sen Kong: Technology plays a huge role in streamlining parts of our operation, such as processing, drying and quality control, but when it comes to the actual picking of the tea, the human hand is still superior. Machines aren’t yet sophisticated enough to distinguish the top three leaves from the rest of the plant, and that matters. Those top three leaves are the most tender and flavour rich. A machine might take too much, or damage the plant, which affects secondary growth. A trained picker knows exactly how to pluck, preserving both the leaf quality and the health of the bush. In addition, tea […]

Make your emissions reporting easier with spend-based emission factors

Getting started with your carbon footprint doesn’t have to be complicated. Manufacturers across New Zealand are already sitting on one of the most powerful tools for understanding their emissions: their financial data. Spend-based emission factors turn dollars spent into practical emissions estimates, providing you with a fast, accessible way to start measuring and managing your impact. They’re especially helpful for scope 3 emissions from your supply chain, which are typically the hardest to track but often make up the biggest part of your footprint. In this article, we explain what spend-based emission factors are, how you can use them in your business, and where to find the most accurate and up-to-date data for New Zealand. What are spend-based emission factors? Spend-based emission factors are a type of emissions data that connect greenhouse gas emissions with how much money you spend on goods and services. They express emissions as kilograms of carbon dioxide equivalent (CO₂-e) per dollar spent (kg CO₂-e/$). They’re calculated using environmentally-extended input-output (EEIO) models. These models look at the total emissions of a sector (like “fabricated metal products” or “office furniture”) and divide this by the total revenue of that sector. The result is an average emissions intensity per dollar. In simple terms, they give you a ballpark figure: if you know how much you spent in a certain category, you can estimate the emissions that came with it. Why use them? Spend-based emission factors are especially helpful when: →You don’t have access to physical data (like litres of fuel or kilograms of steel) →You need an emissions estimate based on financial records →You’re starting your emissions reporting and want to cover as much ground as possible →You want to identify emissions hotspots in your supply chain before doing a deeper dive. They’re widely used for: →Scope 3 […]

New Zealand is poor because it chooses to be

-Sean Doherty Sir Paul Callaghan famously declared: “New Zealand is poor because it chooses to be.” Nearly 15 years on, with the decision to dissolve Callaghan Innovation the agency bearing his name, these words ring truer than ever in 2025. At this turning point, New Zealand must decide: Will we finally address the innovation deficit by embracing high-value manufacturing, or continue on a path of slow, incremental change? The productivity trap New Zealanders are admired for their work ethic and creativity. Yet, the nation continues to lag behind its global peers in productivity and prosperity. The key reason? An overreliance on low-value, commodity-driven industries rather than advancing technology-rich, high-value sectors. Despite technological progress worldwide, New Zealand’s per-capita prosperity growth has not matched high-value, knowledge-led economies over the past two decades. International comparisons Israel, Singapore, and Ireland are cited as examples of nations that have transformed through purposeful investment in advanced research, tech-enabled manufacturing, and robust support for innovation and entrepreneurship. These countries consistently invest in science, technology, and high-value manufacturing, creating dynamic economies with sustained prosperity. The power of innovation Sir Paul Callaghan stressed that true prosperity can only be achieved by focusing national efforts on innovation-intensive sectors. Efforts to “pick winners” in areas like biotech, agritech, and clean tech have delivered mixed results, highlighting that the most transformative advances come from empowering New Zealanders to innovatively solve challenges and seize opportunities—often in surprising, unscripted ways. “Prosperity doesn’t grow from following the script of what other Governments are doing; it emerges from innovators taking risks and building new niches.” Time for a new roadmap The closure of Callaghan Innovation and changes to science agencies will achieve little unless policy, business, and scientific leadership rally behind a new, bolder strategy. This pivotal moment calls for action: Backing High-Tech manufacturing Shift from […]

Carbon claims: Get the language right and the facts straight

-thinkstep-anz If you’re sharing your organisation’s carbon footprint, net zero goals or carbon neutral status, it’s vital to communicate clearly and accurately. Getting it wrong could damage your reputation, open you up to legal risk or erode trust with your customers and stakeholders. Strong carbon claims can show leadership, but only if they’re backed by real action and solid evidence. The good news is: once you understand the terms, it’s much easier to get them right. Why clarity matters more than ever In today’s fast-moving policy and regulatory environment, environmental claims are under increasing scrutiny. We’ve seen businesses taken to court for inaccurate or unsubstantiated claims. To stay on the right side of the law – and the right side of your customers – you need to be cautious and well-informed. This article explains the key carbon terms and offers practical advice to help manufacturers communicate responsibly. What the key carbon terms mean Carbon neutral Your business, product or service has measured its emissions, taken action to reduce them and used offsets to balance what’s left. You need: a defined scope (e.g. your head office or a specific product line), a timeframe, a verified carbon footprint and a credible reduction plan. Use offsets only for emissions you genuinely can’t avoid, after reduction efforts. Standard to follow: ISO 14068. Example: A manufacturer measures and verifies its emissions for 2023, reduces what it can and offsets the rest using certified carbon credits. It communicates: “Carbon neutral for our Christchurch site in 2023, certified to ISO 14068.” Net carbon zero This means deep emissions cuts first, and offsets only for what’s unavoidable. It’s typically applied to entire organisations. You need: to follow the Science Based Targets initiative (SBTi) approach – prioritising genuine emissions reductions. Offsetting alone is not enough. You must reduce most […]

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Living in an apartment, near the railway line

On a business trip, I travelled on the Tokaido Shinkansen Bullet Train between Tokyo and Nagoya and, was taken by the number of apartments along the side of the track, at Bullet Train speed. And they all had one thing in common on their balcony: a dog kennel, a satellite dish, plants and clothes lines. Nowhere to walk, no ground level space to kick a ball around. I wonder what the thinking is around 15 storey apartment buildings around the new Auckland railway stations? Is it to ensure the trains have patronage and the huge spend on their development justified? The Government wants Auckland Council to make apartments possible. “Ensuring that Auckland takes economic advantage of this transformational investment in the city”. I wonder how many Government ministers will move there? Apartment buildings can bring problems – lots of people in a built-up area without social cohesion, finding ways to get into each other’s way and an over familiarity with one’s neighbours which doesn’t necessarily lead to a quality of life. The economic advantages for engineers, architects, developers, interior decorating consultants and so on will be great. And may also continue to see trades people in Auckland continue to have work instead of crossing the ditch to Australia. If people live in a large city, they need a quality of life for day-by-day accessibility to work, education and social events. But why live in a large city, in an apartment, by a railway line? Why not move to the regions where you have greater choices of more competitively priced housing and greenfields where the family can play? -Doug Green, Publisher, NZ Manufacturer www.nzmanufacturer.co.nz publisher@xtra.co.nz

LCA: A powerful tool for change

In the early days of sustainability, we were often driven by a desire to “save the polar bears” or protect rainforests. Today, business leaders are asking a different question. It’s no longer “Is this the right thing to do?” but “Is this worth the investment?” The answer is yes, and Life Cycle Assessment (LCA) can help prove it. So, what exactly is an LCA? LCA is a tool that measures the environmental footprint of a product or service across its life cycle. It helps you understand your product’s environmental footprint, find opportunities to improve and communicate your sustainability credentials with confidence. This means LCA gives you a snapshot of your product or services’ footprint, both what goes into it and what comes out. That includes: what goes in, like energy and raw materials what comes out, like waste, water pollution and carbon emissions. The lower the impact, the smaller your product’s environmental footprint. Click here to learn more in thinkstep-anz’s Need to Know guide. From burden to business case LCA can seem complex and overwhelming. It’s sometimes seen as a data-heavy, costly exercise. But when you look at it through a business lens, LCA becomes a strategic tool. It can help you build resilience, drive innovation and gain market advantage. Around the world, LCA is gaining traction. In the EU, it’s a requirement for Horizon funding. In Australia, the 2024 Building Ministers’ Meeting endorsed LCA as part of the National Construction Code for commercial buildings. EPD Australasia just celebrated 2,000 Environmental Product Declarations. In China, national funding for LCA research is growing rapidly. Business success starts with transparency LCA takes a full-life approach. It looks at a product’s environmental impact from raw materials to disposal. This broad scope gives you visibility – and with visibility comes opportunity. One client asked, […]

Investing for growth

The Budget’s Investment Boost is a tax incentive for businesses to invest in productive assets such as machinery, tools and equipment. This means business can deduct 20 per cent of a new asset’s value from that year’s taxable income, on top of normal depreciation. Because the cashflow from investment improves, more investment opportunities become financially viable and therefore more take place. Business investment can raise the productivity of workers, lifts incomes and drive long-term economic growth. However, businesses, following this path, need some predictability. That a reasonable investment will bring about a return. That their equipment purchases will help their businesses grow. I take it that by increasing the stock of capital in New Zealand, Investment Boost is expected to lift GDP by 1 per cent per year and wages by 1.5 per cent per year over the next twenty years, with half these gains in the next five years. Investment Boost makes New Zealand a more attractive place to invest. It gives businesses facing global uncertainty a reason to keep investing in themselves and in the future of New Zealand. It seems that large-scale businesses with established markets can continue to build their markets. There is also Invest New Zealand to encourage investment in infrastructure. This would be a welcome change from investment in property …let’s keep making and growing things!

Is your value network world class?

Over the last 40 years I have seen significant change in how manufacturing businesses compete. We have moved through the quality revolution which brought new expectations around quality and cost, to the lean revolution and associated methodologies delivering better service, value and reduced costs. Businesses then shifted their focusses onto supply chain optimisation, bringing end-to-end thinking. Their approaches moved from comparing their business models with their competitors’, to comparing their supply chains. Top performing supply chains became enabled by ERPs, and are now enabled by value networks, no longer in point-to-point structures but integrated webs of suppliers and partners delivering products and services seamlessly through a multitude of channels. Of course, the rapidly increasing deployment of AI further fuels optimisation and connectedness in these supply chains. At the root of this change in manufacturing are constantly moving market-led goalposts for how businesses better deliver what the end customer wants, when they want it, at the lowest cost possible. Understanding this value equation and then aligning their service delivery model to meet and exceed this expectation better than competition is what separates the wheat from the chaff, and industry leaders are doing this at the most competitive cost to maximise their margins. Very few, if any, businesses can do all of this by themselves. Generally, larger businesses with more scale, buying power, and connections have more capability than SMEs. However, interconnected SMEs can create highly efficient clusters which can compete with anyone and be highly agile and scalable. As we know NZ has a high proportion of SMEs and this presents both an opportunity and a risk. The opportunity is that we can create high-value clusters and that can be highly agile, integrated and capable of delivering high-value products and services through multiple channels to customers around the world. We certainly […]

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