SMMT News

Motor industry publishes sixth sustainability report

20 October 2005 #SMMT News

SMMT today publishes the motor industry’s sixth annual sustainability report. Towards Sustainability 2005 highlights sector-wide progress towards economic goals, as well as improvements made in environmental performance and measures taken to embrace wider social responsibilities, like better support for employees. Key indicators are listed below:

Indicator

2001

2002

2003

2004

Environmental
Energy used per vehicle produced(MWh)
Water use per vehicle produced (m3) Waste to landfill (kg/unit)


4.3
6.2
66.4


4
5.6
40.5


2.8
3.4
17.9


2.5
3.4
19.8

Economic
Sector turnover (£bn)
Number of new vehicles produced Total new vehicle registration


42.6
1.69m
2.77m


44.6
1.82m
2.89m


46.0
1.85m
2.94m


47.3
1.86m
2.95m

Social
Average staff turnover (per cent)
Lost time incidents

7.6
Not reported


7.0
Not reported

6.1
710

8.6
491

SMMT chief executive Christopher Macgowan said, ‘We were proud to be the first industry to publish a sustainability report and are committed to reporting annually. As well as making real progress towards sustainable mobility, it is important that we are absolutely transparent about where we are succeeding and where improvements have to be made.’

Environmental
Towards Sustainability 2005 continues to show progress in environmental performance. For example, less energy is being used to produce each vehicle. Since 2001, the figure has almost halved at production sites, from 4.3 to 2.5 MWh. In the same period, water use has dropped from 6.2 to 3.4 m3 per vehicle.

The motor industry is improving productivity and leaner processes create less waste for landfill. In 2004, 70 per cent less waste was produced per vehicle than in 2001. However, the year-on-year figure saw a slight upturn from 17.9 to 19.8 kg per vehicle.

For new cars, carbon dioxide emissions continue to fall. In 2004, the average new car emitted 171.4 g/km, a decline from 189.9g/km in 1997. The proportion of models sold with a CO2 figure lower than 140 g/km is also rising, up to 15.5 per cent of the total 2004 market compared to 14.9 per cent in 2003. Fuel consumption figures are also improving, up from an average of 34.5 in 1998 to 37.9mpg in 2004.

Economic
The number of signatories to the report dropped from 22 to 20 this year, due to the loss of production at MG Rover and Powertrain. However, the economic figures reflect the position last year when MG Rover and Powertrain were still operating. And despite the blow to the West Midlands, overall the industry remains in good shape.

Highlights include overall turnover for the sector which rose from £46bn to £47bn in 2004. Manufacturers produced 1.86m vehicles and buyers registered 2.95m new models. The value of UK automotive exports was boosted to £22.5 billion, with £955 million spent on business research and development.

The first annual Sustainability Strategy was launched by the SMMT in March 2000 with 11 major signatories. The sixth report includes 20 signatories, reporting 32 manufacturing sites, all of which are covered by certified environmental management systems.

Social
Information on a range of social indicators was included for the first time in last year’s report.  A number of initiatives including flexible working arrangements, better childcare and counselling facilities, plans to support carers and those adopting children with additional leave, continue to demonstrate the sector’s appetite to improve support for its workers.

On health and safety measures, the number of lost-time incidents fell significantly last year, from 710 to 491.  This represented a 30 per cent improvement. Employee turnover is still much lower than the national average of around 16 per cent.  Nevertheless, the data does show a year-on-year rise.  This may have reflected uncertainty last year amid speculation about the future of several plants.

Report discussion
SMMT is hosting a stakeholder event to discuss the report’s contents on 27 October 2005.  To register for the event please e-mail sustainability@smmt.co.uk

Note to Editors:
The first annual Sustainability Strategy was launched by the SMMT in March 2000 with 11 major signatories.  The sixth report includes 20 signatories, reporting 32 manufacturing sites, all of which are covered by certified environmental management systems.

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