Manufacturing Industry: Towards a Low-Carbon Economy - Quebec Net Positive Releases the Synthesis Report of the First Year of the Collaborative Action Research Initiative "SMEs in Transition"

MONTREAL, Jan. 31, 2024 /CNW/ - Quebec Net Positive, an independent non-profit think tank, today releases the report on the first year of "SMEs in Transition", a collaborative action research initiative focused on small and medium-sized manufacturing enterprises (SMEs) in Quebec and the business ecosystem that supports them.

This project was carried out with the support of the Government of Canada and Laurentian Bank. The initiative aims to gain a better understanding of how to accelerate the implementation of climate action within Quebec's manufacturing SMEs operating at the heart of complex value chains, undergoing significant transformation with the ongoing decarbonization of the global economy. This initial report presents key elements to be implemented to help SMEs successfully engage in this significant transformation, which presents both risks and business opportunities.

"The collaborative action research format of SMEs in Transition allows us to be in the field, with collaborators committed to multiplying exchanges between de various stakeholders in the business ecosystem in order to generate new knowledge, with a common goal of triggering the move to action and the implementation of climate actions by manufacturing SMEs," emphasizes Katrin Hauschild, Deputy General Manager and SMEs in Transition Leader, Quebec Net Positive

HIGHLIGHTS OF THE RESEARCH REPORT

• Implementation of climate actions is not a priority for Quebec's manufacturing SMEs. The economic and operational uncertainty in which manufacturing businesses operate leaves little room for integrating climate action into business strategy and operations.
  
  
• If they had funds to reduce their greenhouse gas (GHG) emissions, the manufacturing SMEs interviewed would mainly consider the following actions:
  • Hiring staff
  • Replacing fossil fuel powered equipment
  • Workforce training/awareness raising
  • Hiring experts or an environmental manager to draw up and implement action plans
  • Acquiring electric vehicles
    
    
• Emerging directional trends for likely transition pathways for manufacturing businesses include:
  • Energy productivity (measure of economic benefit received from each unit of energy used)
  • Circular economy
  • Industrial symbiosis
  • Industry 5.0
    
    
• Communities of Practice (CoP) are a collaborative format with strong knowledge-building potential within manufacturing SMEs. The appeal of CoPs lies mainly in the fact that they are a highly concrete and flexible learning mode that fosters trust within a peer network, including the sharing of best practices.
  
  
• The concept of foresight is still relatively unknown in the business community, and current approaches are not well-suited to the reality of SMEs.
  
  
• The five main climate actions identified in the first seven months of monitoring activities are consistent with the quantitative data from the Business Transition Barometer ? Manufacturing Sector. The main implemented actions are:
  • Waste reduction and composting
  • Optimization of operations and reduction of resources
  • Improvement and adaptation of product and service offerings to reduce GHG emissions
  • Circular economy and recycling
  • Responsible procurement
    
    
• The three main opportunities for improvement identified in terms of regional mobilization are:
  • Consolidating the role of "coordinator" of businesses' climate action at the regional level to facilitate access to the support ecosystem and foster greater cooperation and fluidity within it.
  • Simplifying access to regional data to better guide SMEs, monitor progress and encourage collaboration to help focus efforts on reducing significant sources of emissions.
  • Reinforcing the boldness and leadership of local governments, including clearer and more predictable laws and regulations to guide and encourage businesses to take action.

To take things further, the manufacturing SMEs, who testified as part of the action research project are calling for clear directions from the government, financial incentives and support to help them identify the most profitable and relevant actions to implement in the short term.

"It is vital for the whole of the Quebec economy that its nearly 250,000 SMEs, which employ over 2 million workers, are aware of the risks and opportunities of the significant economic transition underway, and successfully engage in it. We look forward to the second year of our collaborative action research activities. Each new meeting is an opportunity to learn together, build bridges and take one more step towards transition," concludes Anne-Josée Laquerre, Executive Director & Co-Founder, Quebec Net Positive.

The initiative, which will run until January 2025, is one of 16 research projects funded under the Climate Action and Awareness Fund of the Environmental Damages Fund, administered by Environment and Climate Change Canada, to support the mandate and objectives of the Net-Zero Advisory Board (NZAB). A call for proposals was issued in spring 2022 with research themes identified by the NZAB based on targeted scopes of inquiry. These projects aim to fill gaps in knowledge and enable the NZAB to pursue its essential mission to help Canada achieve GHG neutrality by 2050.

"SMEs in Transition" is carried out with the support of regional collaborators, practitioners, experts, and academic researchers. Thanks to our collaborators ADDERE Service-conseil (Estrie), Conseil régional de l'environnement de la Montérégie, Excellence industrielle Saint-Laurent (Montreal), Futur Simple, Projet Collectif, Ciblexpert, Chemins de transition, and PHAR, as well as the Business Development Bank of Canada (BDC) for its support, and our dissemination partner, Maison du développement durable.

TO DOWNLOAD THE REPORT: click here 

FOR MORE INFORMATION

About "SMEs in Transition" and our collaborators: click here

About the Business Transition Barometer ? Manufacturing Sector: click here

ABOUT QUEBEC NET POSITIVE

Founded in 2016, Quebec Net Positive is an independent, non-profit think tank. Its purpose is to accelerate the transition towards a low-carbon and "net positive" economy. Its mission is to raise awareness, mobilize, and equip businesses ? specifically small and medium-sized enterprises (SMEs) and those who support them ? to help them seize new business opportunities, go beyond mitigating risks, and activate their full potential to create positive impacts on society and the environment. www.quebecnetpositif.ca

SOURCE Québec Net Positif