British Furniture Manufacturers Discuss ESG and Energy Challenges at Insight Roundtable

The rise of ESG as a business priority over the past five years was a key focus of the conversation. With more businesses now appointing ESG directors and dedicated teams, ESG has become a critical performance indicator, influencing both investor interest and corporate reputation.

When discussing Silentnights ESG journey, Angela Moran, ESG Director, commented:

“ESG is not about a business delivering profit for shareholders, but it’s thinking about people and the planet as well.”

The participants discussed how ESG is being managed across their operations and supply chains, with social compliance audits ensuring safe working conditions, and sustainable manufacturing practices gaining prominence.

Many of the manufacturers in attendance highlighted significant strides towards sustainability, with most already working towards net zero targets or having ESG teams in place. The use of recyclable materials, modular product design, and working towards a circular economy were key themes. The conversations reflected a strong commitment to adopting sustainable practices that drive the industry forward.

“ESG cannot be the responsibility of a single team; it needs to be embedded across the entire organisation,” remarked one participant, echoing the sentiment of the group.

Despite the progress, the roundtable uncovered notable knowledge gaps. When discussing energy consumption and charges, the room was unaware of changes to how energy costs are now calculated, with a considerable shift towards fixed charges instead of traditional unit rate or time of use charges, catching many off guard. In 2024, fixed charges have risen by over 1,500% compared to 2018 figures. This adds an interesting challenge for manufacturers when looking to reduce their energy consumption, as a growing portion of their energy bill is now fixed.

Paul Scarborough, Businesswise Solutions, remarked:

“We have noticed that even people who are responsible for energy within their business aren’t aware of how they are now being charged and what’s causing these changes. So it was no surprise that when this topic came up, the whole room had no idea that this was happening.”

When asked if the room felt that the furniture industry gets enough support from the government when it comes to energy, Phil Spademen, Managing Director, BFM commented:

“The challenge the industry has faced is that the UK government has not acknowledged the SIC codes that many furniture manufacturers operate under as intensive enough to receive support. This is something the BFM is actively lobbying the government to rectify but this has currently been held up with the recent election and new government.”

Attendees went on to express concerns about the limited support available from the government. The room noted that while consumer demand for sustainable products is accelerating, government incentives and policies are lagging behind, leaving businesses to shoulder much of the burden themselves.

The BFM insight roundtable underscored both the progress and challenges the furniture manufacturing industry faces on its path to sustainability. While many manufacturers are embracing ESG practices, knowledge gaps and a lack of sufficient government support remain significant hurdles. The event served as a platform for open dialogue and collaboration, emphasising the need for continued efforts in both education and advocacy to ensure the industry can meet its sustainability goals. 

The BFM will continue to champion these initiatives, calling for stronger government action to help businesses navigate the complexities of ESG and energy management.

About the BFM:

BWS has been an energy partner to the BFM since 2019.

The BFM has represented the interests of the UK furniture industry since 1947.  The BFM supports their members with all things manufacturing, from suppliers to trade shows, and guidance with legislation and compliance. They actively lobby and advance the interests of the furniture industry directly with government and through the British Furniture Confederation (BFC) and the All Party Parliamentary Furniture Industry Group of the House of Commons.