SMEs in Transition
Manufacturing Realities

First summary report

This report presents the findings of the 1ᵉʳ year of the SMEs in Transition initiative, a collaborative action-research initiative led by QNP. The objective was to gain a better understanding of the conditions required to accelerate the implementation of climate action within Quebec manufacturing SMEs.

Based on field observations, interviews, and discussions with the support ecosystem, the report paints a picture of the obstacles, drivers, and business opportunities associated with the transition to carbon neutrality. It identifies concrete ways to support SMEs in this strategic transformation, while strengthening cooperation among stakeholders in the community.

Collaborators of SMEs in Transition

Financial support

Collaborators

Distribution partner

First summary report

Manufacturing realities, on the road to a low-carbon economy

Highlights

Implementing climate action is not a priority for Quebec's manufacturing SMEs.The context of economic and operational uncertainty in which manufacturing companies operate leaves little room for integrating climate action into business strategy and operations.

If they had the funds to reduce their greenhouse gas (GHG) emissions,

The manufacturing SMEs interviewed would mainly consider:

Hiring staff
Replacing fossil fuel equipment
Workforce training
Hiring experts to develop action plans
The adoption of electric vehicles

The directional trends emerging for plausible transition pathways for manufacturing companies include:

Energy productivity
Circular economy
Industrial symbiosis
Industry 5.0

The community of practice (CoP) is a collaborative format with strong potential for strengthening knowledge within manufacturing SMEs.The appeal of CoPs lies mainly in the fact that they are a very concrete and flexible learning method that allows trust to be established within a network of peers, including the sharing of best practices.

The concept of foresight is still relatively unknown in the business community, and current approaches are ill-suited to the reality of SMEs.

The five main climate actions identified during the first seven months of monitoring activities are consistent with the quantitative data from the Business Transition Barometer - Manufacturing Sector. The main actions implemented are:

Waste reduction and composting
Optimization of operations and reduction of resources
Improvement and adaptation of product and service offerings with the aim of reducing GHG emissions
Circular economy and recycling
Responsible procurement

The three main opportunities for improvement identified in terms of regional mobilization are:

Simplified access to the support ecosystem and greater coordination and fluidity within it
Access to regional data to better guide SMEs, track progress, and foster collaboration to reduce significant sources of emissions
More boldness and leadership from local governments, including clearer and more predictable laws and regulations to guide and encourage businesses to take action.

The three main sources of motivation for taking action to reduce carbon footprints, as stated by executives and managers in field interviews: