Business News Round Up (23/02/2023)
Food and drink firms struggle to balance sustainability and cost demands
More than two thirds (70%) of food and drink companies have had their sustainability plans negatively impacted by rising inflation. Accountancy firm Johnston Carmichael surveyed more than 100 businesses across Scotland and the UK, finding that inflation, rising energy and raw material costs, as well as the Deposit Return Scheme, were among the top challenges. Dave Grant, founder of brewery company Fierce Beer, who took part in the survey, explained rising costs have had a serious impact on their own net zero plans in recent months. The managing director of the Aberdeen-based firm said: “Being as sustainable as possible has been a priority of our business since it was founded in 2015. But the reality is that our plans to achieve net zero have effectively been put on hold in recent months because of the current economic climate. We’re facing rising costs in raw and packaging materials, utilities, and wages because of rising inflation, and our main focus has to be on the ongoing success of our business. It is really unfortunate, but until the wider situation shows signs of improvement, we simply can’t afford to spend significant time and money on progressing sustainability projects, however important they may be.”
https://www.insider.co.uk/news/food-drink-firms-struggle-balance-29281435
Government action to supercharge competitiveness in key British industries and grow economy
300 businesses across the UK will benefit from the British Industry Supercharger: targeted measures to ensure the energy costs for key UK industries are in line with other major economies around the world – levelling the playing field for British companies across Europe. The support will be made available to sectors particularly exposed to the cost of electricity, such as steel, metals, chemicals, and paper. These industries employ around 400,000 skilled workers right across the UK and support many more in their supply chains. In 2019 their exports made up around 28% of total UK exports. Proposed changes under the Supercharger – set to be consulted on in the Spring – will exempt firms from the certain costs arising from renewable energy obligations such as the Feed in Tariff, Contracts for Difference and the Renewables Obligation, as well as GB Capacity Market costs, whilst exploring reductions on network charges, which are the costs industrial users pay for their supply of electricity. The measures announced by the Business and Trade Secretary Kemi Badenoch today (Thursday 23 February) will bring the energy costs of the UK’s energy intensive industries in line with those charged across the world’s major economies. This is crucial to helping these businesses remain internationally competitive and will enhance the UK’s attractiveness as a destination for international investment as well as remove barriers to move us further towards greener technology as part of a sustainable net zero future.
Businesses urged to adapt as 1 in 3 Scottish employees suffered from mental health issues last year
New data has revealed that one in three Scottish employees suffer from declining mental health highlighting work pressures as a key factor. Adding to the problem, Scotland has the highest level of presenteeism in the UK, according to a nationwide report on workforce health. The report surveyed 1,000 employees in Scotland and how they are affected by their working environment, the impacts on their overall health, and what health support employees want from their employers. Data obtained by the UK employee health, wellbeing, and habits survey has revealed that more than a quarter of Scotland’s employees have worked through poor mental health in the last year. The report revealed that Scotland has the highest level of presenteeism in the UK –twice the number of any other region – due to mounting work pressures. At some point over the last 12 months, 31% of employees in the region have struggled with their mental health – double the number experiencing physical health issues. However, for both physical and mental health, a decline in health was three times more common than an improvement. The report was conducted to discover how workers in Scotland are affected by their working environment, the impacts on their overall health and what health support employees want from their employers. Over 1,000 employees were surveyed.
Demand for ‘wellness space’ splits office market
Pressure from companies striving to meet sustainability objectives is leading to a growing divergence in the office market, according to a property firm. It is seeing greater demand for desirable “super prime” accommodation, while offices that do not meet green and wellbeing credentials deteriorate. In a new paper, Mike Ivrine and David Cobban of Savills, say the demand for “wellness space” in offices has never been greater and is creating this widening gap in the market. A continued migration of employees back to offices is putting increasing pressure on businesses to deliver the very best employee-focused workspace. As a result the need for wellness space has never been greater and, when considered alongside the requirements for occupiers of all sizes striving to meet sustainability objectives, this all points to an ever growing demand for “super prime” office space. They say the traditional top level or “Grade A” accommodation has seen improvements in design, technology, ESG and sustainability, but the classification has remained broadly the same. “As a consequence, we expect a widening of the gap between prime and “standard” grade A, with upward pressure on prime rents and a slowing leasing velocity and increasing void (unoccupied) rate in vanilla offices masquerading as grade A. Even more dramatic will be the increasing number of office assets across the UK that will become stranded as some landlords, faced with limited capital and challenging refinancing discussions, are unable to refurbish and increase standards to meet ever evolving occupier demands. 2023 will see the best get better, but without investment the average will get worse.”
https://dailybusinessgroup.co.uk/2023/02/demand-for-wellness-space-splits-office-market/