Manufacturers relying on environmental expertise position themselves to seize new business opportunities
Second edition : Quebec Business Transition Barometer – manufacturing sector
MONTREAL, May 13, 2024 – QNP, an independent non-profit think tank, today unveils the results of the second edition of the Quebec Business Transition Barometer for the manufacturing sector.
Conducted with the support of Investissement Québec, this barometer is the most comprehensive study on the level of engagement of manufacturing companies towards climate action and the transition to a low-carbon economy. For this important study, QNP commissioned the research firm Léger, which conducted the study with 202 leaders of manufacturing companies from September 14 to October 5, 2023. The data from the manufacturing sector were compared to those from QNP’s Quebec Business Transition Barometer, conducted with 596 leaders, the results of which, representative of the entire Quebec economy, were unveiled on November 8.
The main highlight of this second edition
The average Transition Index for Quebec manufacturing companies is 29.9, meaning that they are implementing less than a third of known and desirable climate actions related to their operations, value chains, organizational culture and adaptation to climate change.
“The Sectoral Transition Index has highlighted the importance for manufacturing companies to rely on environmental expertise internally or externally,” emphasizes Anne-Josée Laquerre, Executive Director and co-initiator of QNP. “Companies that rely on such expertise implement significantly more climate actions than the average in their sector. Thus, they are well positioned to seize business opportunities that arise from the acceleration of the transition to a global low-carbon economy.”
Other highlights of this second edition
- Analysis of the “personas” reveals that 42% of Quebec manufacturing companies can be described as “Enthusiastic” : faced with the urgency of reducing greenhouse gases (GHGs), the risks and the business opportunities to be seized, they are looking for information on how to take action.
- Rapidly changing standards, laws and regulations are both the main risk (46%) and the main source of pressure (36%) for GHG reduction.
- Half of manufacturing companies say they are not implementing climate actions in their operations , and two-thirds are not Committed to energy efficiency measures.
- Although financial incentives are one of the triggers for taking action, the majority of manufacturing companies (58%) reveal that they are unaware of any of the main financial programs on offer.
- Les 5 principaux bénéfices pour les entreprises manufacturières qui passent à l’action :
- Strengthen brand image and reputation
- Create and offer products, solutions and services that meet new needs and market expectations
- Position as a supplier of choice, preserve and consolidate business relationships with customers and major principals
- Stimulate employees’ sense of pride and belonging
- Building customer loyalty
- Resilience and adaptation
- 65% of manufacturing companies say they are completely confident that their business is resilient and ready to cope with the potential consequences of climate change/extreme weather events.
- 18% have drawn up or are in the process of drawing up a list of potential threats or disruptions to their supply chain caused by climate change.
- Advanced analytics tells us that the 3 main determining factors in the implementation of climate actions within manufacturing companies are :
- Relying on environmental expertise : companies that say they rely on internal or external environmental expertise have a significantly higher average Transition Index than those that say they “do not rely” on such expertise
(54.6 vs. 24.1). Among manufacturing companies relying on in-house expertise, the number of companies declaring they rely on 2 or more full-time staff is on the rise (20% in 2023 vs. 8% in 2022). - Operating in an international market: the average Transition Index for companies declaring they operate in an international market is significantly higher than for those declaring they operate in a local market (36.3 vs 22.0).
- Being administered by a board of directors: companies administered by a board of directors have a significantly higher average Transition Index than those declaring “not administered by a board of directors”. (35.6 vs. 25.9).
- Measuring GHG emissions and setting reduction targets remains marginal in Quebec’s manufacturing sector: 13% have carried out at least a partial GHG inventory; 9% have set reduction targets.
For more information :
- Webinar presenting results, rebroadcasted: Click here
- Read the report and recommendations: Barometer – manufacturing sector | Quebec Net Positif
- To produce a Sector or Regional Barometer, please contact us.
About Québec Net Positif
QNP is an independent non-profit think tank whose mission is to accelerate the transition to a low-carbon and “net positive” economy. Supported by the Foundation for Environment and Sustainable Development, its mission is to raise awareness, mobilize, and equip businesses – particularly SMEs and those who support them – to help them go beyond risk mitigation, seize business opportunities, and activate their full potential for creating positive impacts on society and the environment.