Manufacturing A Sustainable Future: Capitalising on Green Technologies
Our latest survey reveals the scale of green investment in UK manufacturing - and the policy changes needed to unleash its full potential.
06.10.2025
Britain’s manufacturers are powering ahead with green investments — with 8 in 10 planning to embed green growth in their business plans over the next five years, and almost half prioritising renewable energy as their top area for investment.
Our new report, Manufacturing a Sustainable Future: Capitalising on Green Technologies, shows that while industry is committed to net zero, government policy and outdated tax rules are holding back progress. More than 4 in 10 manufacturers say business rates actively penalise them for installing green technologies such as solar panels or low-carbon heating systems.
- 8 in 10 manufacturers want to build green improvements into their operations.
- 75% are already planning investments in green technologies.
- Renewable energy tops the list of priorities (49.7%), followed by greener materials and digitalisation.
- Policy uncertainty and business rates are bigger barriers to green investment than even high energy costs.
Why it matters
Manufacturers know that green growth is key to cutting costs, improving efficiency, and staying globally competitive. But unless the Government reforms business rates and expands incentives such as R&D tax relief, the UK risks falling behind international competitors like Germany, France and Japan - all of which are already investing heavily in industrial decarbonisation.
This report sets out the scale of manufacturers’ ambitions, the barriers they face, and the practical steps needed to unlock a new wave of investment in sustainable, future-proofed UK industry.
Read it below
At a time when there are calls for the UK to row back on its net zero ambitions, manufacturers are clearly committed to investing in green technologies to make their operations more efficient by reducing costs and cutting emissions. However, it’s perverse that by making such investments their business rates increase. This is not just actively dissuading them but penalising them for ‘doing the right thing’.
"As a first step to boosting further investment in green technologies, Government should remove this disincentive, followed by broadening R&D tax relief alongside lowering long term energy costs. This has the potential to unleash a wave of green investments that will make companies’ operations far more efficient by reducing costs and cutting emissions.
