New industrial model worth €100bn launched

It estimated European businesses could boost profits by €100bn, create 168,000 new skilled jobs in energy efficiency and renewable energy, and cut greenhouse gas emissions by 14.6% by using the 'new industrial model'. This argues that by improving non-labour resource efficiency, investing in sustainable inputs and commercialising these competitive advantages, manufacturers in Europe could achieve 9% profit growth, while creating jobs and reducing environmental impacts. Lavery/Pennell claimed UK manufacturers also stood to benefit significantly from the model, which is estimated to be worth €8.4bn in annual profits, 10,000 new UK-based jobs and a 16.9% reduction in greenhouse gas emissions. The new business model is illustrated with examples, including a case study of carpet tile manufacturer Interface, which has achieved annual savings of €7.6m by adopting it. Other companies analysed in the report include Nestlé, IKEA, Google and Unilever. Rob Boogaard, acting chief executive of Interface Europe, says: "To create a truly profitable business that will continue to enjoy success long into the future, businesses need to move beyond token sustainability projects, which have limited impact. The 'new industrial model' demonstrates that there is a better way and we have the evidence to prove it... "I would challenge all European manufacturers to adopt the model outlined in this report by Lavery/ Pennell and reap the rewards. The benefits are simply too great to miss." Greg Lavery, chief executive of Lavery/Pennell, said: "The new industrial model presents an opportunity for companies willing to take a fresh approach. By reducing the use of raw materials with the highest price, greatest supply risks and biggest environmental footprint, European manufacturers can meet increasing demands to reduce their environmental impact while creating jobs and delivering profits."