30.07.2025

If you’ve ever received a long supplier questionnaire asking about things like your recycling, working conditions, or carbon footprint and wondered, “Do we really need to be doing this?” — this post is for you.

You’ve probably heard the term ESG — it stands for Environmental, Social and Governance. But for many businesses, especially SMEs in manufacturing and engineering, it still feels like something that only applies to big corporates. In reality, ESG is becoming increasingly important for all businesses, even if you’re not directly regulated (yet).

What is ESG and why is everyone talking about it?

ESG is simply a way of looking at how your business operates through its environmental impact, how it treats people, and how it’s run.

  • Environmental – how you manage waste, emissions, energy, climate risks
  • Social – how you treat staff, support wellbeing, engage with your community
  • Governance – how you lead your business ethically and transparently

These areas are now under the spotlight globally. Investors, customers, regulators – and even your supply chain – want more transparency on these issues. What began as a reporting requirement for big corporates has quickly become a business expectation for companies of all sizes.

What are the rules and do they apply me?

In the UK, there are several ESG-related regulations in place, including:

  • TCFD reporting – climate risk disclosures (mandatory for listed and large private companies)
  • SECR – Streamlined Energy and Carbon Reporting for large companies (any two of the following: £36m annual turnover, £18m balance sheet total, 250 employees)
  • Gender Pay Gap reporting – for employers with 250+ employees
  • Modern Slavery Act – requires certain businesses (those with an annual turnover of £36 million or more) to report on supply chain practices

And from the EU, the Corporate Sustainability Reporting Directive (CSRD) – effective since 2023 – applies to all companies listed on EU-regulated markets. But, it doesn’t just affect EU-based companies. If you supply or are owned by a company that falls under CSRD, you’re part of their value chain, and they’ll be asking you for ESG data.

That’s why many UK SMEs are now receiving detailed ESG questionnaires. These aren’t just box-ticking exercises – they’re part of legal compliance and risk management for your larger clients.

Why should I care about ESG?

Even if you're not legally required to report yet, there are real business reasons to start taking ESG seriously:

  • Customer expectations: Many large clients will only work with suppliers who meet basic ESG criteria
  • Tender requirements: Public and private tenders increasingly include ESG as a scoring factor
  • Employee attraction and retention: Staff – especially younger generations – care about values and sustainability
  • Resilience: ESG frameworks help you prepare for climate risks, regulation changes, and reputational issues

You may already be doing a lot of ESG-related work without calling it that – for example, health and safety improvements, recycling initiatives, or community support. ESG just brings those efforts under one clearer, more strategic umbrella.

What should you do first?

At Make UK, we recommend two key first steps to help your business get started with ESG in a practical, manageable way:

1. ESG Gap Analysis

Our consultants work with you on-site to understand your current operations and identify where you already align with ESG principles – and where the gaps are.

This includes:

  • Mapping your value chain to upcoming regulations like CSRD
  • Reviewing your existing policies, data and systems
  • Clear, actionable recommendations to improve and future-proof your approach

2. Senior Leadership Training

We also offer an ESG awareness course designed for senior leaders and decision-makers.

This course covers:

  • What UK and EU regulations mean for your business
  • Your role in driving ESG within your organisation
  • How ESG links to risk, reputation and opportunity

This training helps your board or leadership team build confidence in what ESG is and how to tackle it strategically.

A real-world example

One Midlands-based manufacturer recently approached Make UK for help navigating ESG. They needed guidance to respond to customer requirements and prepare for future EU regulation.

Make UK delivered senior leadership training, conducted a gap analysis, and created an ESG roadmap tailored to their business. As a result, the company began developing a Scope 3 emissions strategy, aligned with ISO 14001, and started working with suppliers to meet ESG objectives.

That’s the kind of practical, scalable approach that makes ESG achievable – not overwhelming.

Want to know more? We’re here to help

If you’re wondering whether ESG applies to you – the answer is probably yes. But that doesn’t mean you need to panic. With the right support, you can take simple, sensible steps now that will make a big difference later.

As a Make UK Environment, Health and Safety subscriber, you can use your consultancy day to support with ESG. 

If you’re not a subscriber, get in touch to discuss ESG gap analysis, senior leadership training, or a tailored roadmap for your business – call 0808 168 5874 or email [email protected].

About the author

Waleed Montasser
Senior Learning & Development Consultant
PhD, MSc, BSc, CEnv, CIWM, MIEMA

Waleed brings over 20 years of experience in environmental consultancy and training. His expertise includes ESG, Net Zero planning, waste management, and environmental management systems. He works across the UK and internationally, supporting businesses to meet regulatory expectations and build sustainable strategies.