Net-zero strategy for
engineering and manufacturing.
High energy consumption, complex raw material supply chains, CBAM compliance and growing customer ESG requirements are reshaping the competitive landscape for UK manufacturers. SBS delivers GHG Protocol and ISO 14064 aligned carbon reporting, reduction strategy and compliance support built around the specific emission sources and regulatory pressures your sector faces.
Manufacturing faces mounting pressure from every direction at once
Energy costs, carbon regulation, customer ESG requirements and export market obligations are converging simultaneously for UK manufacturers. ESOS Phase 3 enforcement is increasing. CBAM is creating product-level carbon disclosure requirements for EU exports. Large customers are embedding supplier carbon data requirements into procurement frameworks. And SECR requires annual public reporting for businesses above the size threshold.
SBS works from a GHG Protocol Corporate Standard and ISO 14064-1 aligned methodology adapted to manufacturing's specific characteristics: high Scope 1 process emissions, complex energy procurement, raw material supply chains and product lifecycle boundaries. We produce reporting that satisfies regulatory requirements, responds to customer demands and identifies the genuine reduction opportunities in your operations.
Mandatory, voluntary and emerging requirements
Understanding which frameworks apply to your manufacturing business, and when, is the first step to a credible compliance and competitive strategy.
SECR — Streamlined Energy and Carbon Reporting
Applies to manufacturers meeting two of three size thresholds. Annual reporting of Scope 1 and 2 emissions and energy consumption in company accounts. Penalties apply for non-compliance and material misstatement.
SECR compliance →ESOS Phase 3 — Energy Savings Opportunity Scheme
Compliance was due December 2023. Manufacturers in scope must have completed an energy audit covering operations, transport and buildings, and notified the Environment Agency. Enforcement and financial penalties are increasing.
ESOS compliance support →CBAM — Carbon Border Adjustment Mechanism
EU importers of goods from the UK in covered sectors — steel, aluminium, cement, fertilisers, hydrogen, electricity — must report embedded carbon during the transitional phase. UK exporters in these sectors need product-level carbon data now.
CBAM readiness →GHG Protocol Corporate Standard
The global gold standard for carbon accounting. SBS aligns all manufacturing footprints to GHG Protocol, covering Scope 1 process emissions, Scope 2 purchased energy, and full Scope 3 across the value chain.
Our methodology →SBTi — Science Based Targets
Science-based target setting is increasingly required by large customers, investors and export market partners. The SBTi Corporate Net-Zero Standard requires absolute Scope 1, 2 and 3 reduction targets aligned to 1.5°C.
Target-setting support →ISO 14064-1 Aligned Reporting
Carbon footprints aligned to ISO 14064-1 meet the highest standards for independent verifiability. SBS reports are prepared for third-party verification to ISO 14064-3, essential for supply chain and investor credibility.
Our accreditations →UK SRS / IFRS S1 & S2
Large manufacturers will face mandatory UK Sustainability Reporting Standards from 2026. Climate risk disclosure, Scope 3 supply chain data and scenario analysis will all be required. Early movers gain competitive advantage.
Prepare early →EPD — Environmental Product Declarations
Increasingly required by construction sector customers, major retailers and export markets. An EPD documents the environmental impact of a product across its lifecycle and is becoming a differentiator in B2B procurement.
Product carbon support →Supply chain Scope 3 disclosure
Large manufacturing customers and OEMs are beginning to require tier 1 and tier 2 suppliers to provide validated Scope 1, 2 and 3 carbon data as part of their own Scope 3 Category 1 measurement programmes.
Scope 3 support →The SBS Net-Zero Program, adapted for manufacturing
Every SBS engagement starts from the same GHG Protocol and ISO 14064-1 aligned foundation, then adapts to your sector's specific emission sources, reporting requirements and operational realities.
The SBS Net-Zero Program: your dedicated Sustainability Team
We embed into your business as a retained Sustainability Team, not a one-off report provider. For manufacturing clients, this means ongoing support through regulatory changes, customer data requests and annual reporting cycles.
Three supply chain challenges arriving at the same time
The manufacturing Scope 3 challenge is unlike any other sector. Raw material supply chains span continents, involve multiple processing stages and carry highly variable carbon intensities depending on origin, energy mix and manufacturing process. At the same time, CBAM is creating new legal obligations to understand and disclose the embedded carbon in specific product categories exported to the EU.
SBS applies industry-specific emission factors and manages supplier data collection campaigns to produce the Scope 3 and product carbon data your customers, regulators and export partners increasingly require.
Built for the full range of engineering and manufacturing businesses
From precision engineering and food production to industrial chemicals and automotive supply chains. Each sub-sector has distinct emission profiles, regulatory obligations and customer expectations.
High-value, lower-volume manufacturers with complex CNC machining, tooling and specialist material supply chains. Customer ESG questionnaires and public sector supply chain requirements are key drivers.
Agricultural supply chain emissions, refrigeration, packaging and logistics dominate the footprint. Customer sustainability commitments and retail code of practice requirements are increasing.
Tier 1 and tier 2 suppliers facing OEM-driven Scope 3 data requirements, CBAM exposure and science-based target mandates from major vehicle manufacturers.
Processors and fabricators facing CBAM obligations, embodied carbon requirements from construction clients and SECR reporting for businesses meeting the size threshold.
High Scope 1 process emission intensity, CBAM exposure for fertiliser and hydrogen production, and complex supply chain carbon boundaries requiring specialist methodology.
Extended Producer Responsibility obligations, retailer sustainability questionnaires and growing demand for product-level carbon data from FMCG customers and major retailers.
Questions from engineering and manufacturing businesses
Not sure where your ESOS, SECR or CBAM obligations stand? Book a free call for a direct, no-jargon answer specific to your business.
Book a free call →Credible carbon reporting that works as hard as you do
Book a free 30-minute call. We will review your ESOS, SECR and CBAM position, assess your supply chain carbon data needs and outline a realistic net-zero pathway for your business.
