It is expected that sustainable manufacturing, which involves producing items using environmentally friendly methods while maintaining economic viability, would demand a complete overhaul of the manufacturing and industrial sector. The way that producers source, make, deliver, and service all of their goods will need to be examined. It's a challenging task. But as the need for sustainability continues to grow, manufacturers must address it.
Whether it's in response to stakeholder demands, governmental requirements, environmental concerns, or just plain financial benefit, manufacturers can no longer confine sustainability to aspirational goals published in their annual reports. Instead, in order to make the requisite progress, they will need to pledge to take particular action. And that action needs to start on the factory floor.
Implementing digital technology & renewable energy
Currently, around one-third of the energy used in the globe comes from manufacturing activities. Energy is frequently a considerable expense, even in lower-intensity industries—those unrelated to top consumers like chemicals, refining, and paper. And when the price of energy increases globally, that only stands to increase. Manufacturers can overcome their biggest sustainability challenge while simultaneously trying to reduce their negative environmental effects and conserve resources by integrating sustainable practices into their business processes.
Owing to the use of digital technology, manufacturers can already be ahead of the sustainability curve. Adopting lean processes while utilizing digital capabilities has recently resulted in more productivity, enhanced worker safety, and lower costs. Thanks to automation through digital technology, manufacturers may also gain a better understanding of their production procedures, equipment wear and tear, and, most importantly, energy utilization. Armed with this knowledge, firms may improve predictive maintenance and optimize production in order to reduce energy requirements while also reducing material and water waste—all crucial components of sustainable building.
However, it might not be enough. Increased usage of renewable energy, which is becoming more and more affordable, should go hand in hand with creating a more sustainable factory floor. There are various methods for doing this. Power purchasing agreements, which can lock in fixed costs for a supply of renewable energy, often for as long as 15 or 20 years, are being used by many enterprises. In some cases, firms with sizable campuses are even making investments in on-site generating, utilizing geothermal, wind, and solar energy to power their buildings.
Future factories could produce demonstrable sustainability outcomes and lower costs by lowering waste and water usage, changing energy loads, and using renewable resources. This is particularly crucial because licensing authorities are now more frequently requiring energy efficiency upgrades before the start of a manufacturing operation or during an audit after it has been put into operation.
Making the sustainability shift more accessible
It is true that the transition to low-carbon manufacturing and industrial systems will almost certainly require modifications across all industries and value chains. Although the idea of switching to sustainability may be scary on the whole, manufacturers can take actions within their organizations and on their production floors to make the transition more approachable, working within the conventional framework of change management. These consist of:
Planning & Execution of sustainability initiatives
To establish a baseline for your environmental footprint, it's critical to analyze the present carbon profile of your facilities. This might help you build a strategy and establish specific goals and priorities. Any strategy should be supported by solid scenario planning because decarbonization is an inherently uncertain endeavor with no assurances that reduction targets will remain stable or be met. Companies should also be ready for data audits to demonstrate their sustainability levels to clients.
New positions, such as a chief sustainability officer, may need to be created in order to carry out sustainability programs. These leaders can then assist in identifying the sustainability indicators that the organization is required to meet, help prioritize investments, and develop any new competencies that are required. Manufacturers will likely need to coordinate an effort with ecosystem partners, including industry groups, third-party suppliers, and regulators, in order to execute on priorities. In this concerted effort, everyone involved must raise their sustainability game.
Considering all the Change management implications
Manufacturers have additional options than just tracking the results of their sustainability efforts. They can also leverage that development to improve transparency while articulating a compelling market narrative about the gains they are generating for both investors and customers. Manufacturers who take sustainability seriously need to spread the word, while those who lag behind run the risk of having the public turn against them. Sustainable manufacturing can only be accomplished by establishing the proper tone at the top, getting support, and taking into account all the ramifications of change management.
Significant change is underway in the field of sustainable manufacturing, and it calls for bigger thinking, particularly on the factory floor. Manufacturers who are willing to adapt will find chances for innovation as sustainability goals inspire creative green design and cutting-edge technological advancements. Unprepared people can end themselves falling behind.
However, producers can achieve enormous gains in sustainability by concentrating on long-term results, cooperating with industry stakeholders, and taking a thoughtful and coordinated approach. These include things like increased efficiency and competitiveness as well as decreased expenses and risks. The real indicators of success, however, will go far beyond the shop floor. Manufacturers can build enduring societal value by achieving quantifiable sustainability goals.