We’re excited to update you on our Supply Chain Sustainability Pilot, running from March to September this year. This initiative aims to elevate the environmental and social performance of suppliers within our construction and advanced manufacturing clusters, benefitting both supplier and client alike. 

Funded by a Business Innovation Grant from Invest NI, we’ve thoroughly researched the challenges faced by manufacturing and construction companies when engaging their suppliers on sustainability. This led us to identify and select two companies, Dowds Group (construction client) and Heron Joinery (manufacturing client), along with 16 key suppliers, to participate in our pilot programme. 

Why It Matters 

The Manufacturing and Construction sectors are major contributors to global carbon emissions, energy use, raw material consumption, and waste generation. Companies in these sectors are being increasingly challenged on their sustainability credentials and adoption of ESG, and many are struggling to comply. This creates barriers for their clients. Working in a cluster approach helps with upskilling for the suppliers and enables them to support their clients ESG efforts. In our pilot, we take the focus beyond emissions and net zero to look at people impacts and social value, ensuring a holistic approach. 

Key Findings & Progress 

Our initial surveys, involving 16 key suppliers, highlighted areas for improvement: 

• Environmental Policies & Emission Tracking: 47% of respondents do not have an environmental policy, 53% don’t track Scope 1 & 2 emissions. Furthermore, 60% do not track water or waste, and 53% had no Net Zero target. 

• Social Practices: 60% of companies have no people-focused certification, and 40% have no living wage policy. Additionally, 53% reported no health and wellbeing policy. 

• Sustainability Roles & Tools: 56% of suppliers reported having no dedicated sustainability role. 

• Challenges: The main obstacles identified include data capture and carbon measurement, cost and time constraints, and market competitiveness. 

Despite these challenges, our cluster has demonstrated that they are very keen to participate in the pilot, to demonstrate commitment to their clients, gain access to training, and increase competitiveness. 

Our Approach 

The pilot is structured in three phases:

• Phase 1 (March – June): Research, Training & Onboarding 

• Initial research to determine interest and the extent of the problem. Identify two client companies and their suppliers and research the suppliers’ needs. 

• Sustainability Training: Virtual workshops were conducted to provide foundational knowledge on ESG concepts and emissions. 

• Climate Essentials Onboarding: This involved guided online meetings and hands-on support for using the Climate Essentials platform to measure Scope 1 & 2 emissions. 

• Phase 2 (June-August): Calculation, Policies & Efficiency 

• Emissions Calculation Support: Continued support for data input and carbon reduction suggestions. 

• Policy & Questionnaire Templates: Providing templates and guidance for developing environmental and procurement policies. 

• Site Visits: For selected suppliers, on-site visits are identifying quick wins for energy, waste, and water reduction. 

• Social Value Training: Virtual workshops to equip pilot suppliers with knowledge and tools to identify, develop, and demonstrate their social value. This aligns with client expectations and sustainability goals. 

• Phase 3 (August-September): Scope 3 & Future Planning 

• Scope 3 Identification for Client Companies: A workshop on Scope 3 categories and methodologies, with guidance on using aggregated Scope 1 & 2 data. 

• Review & Action Planning: A final session to consolidate learning, address challenges, and plan future actions for continuous improvement. 

Our pilot aims to initiate a vital process, based on the cluster approach, to provide foundational tools and actionable outcomes for suppliers of all sizes. The learning from the pilot will enable us to refine the model and develop it further for delivery to other companies. We look forward to sharing further progress in the autumn when the pilot concludes.