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SUPPLEMENT SUSTAINABILITY IN MANUFACTURING
PRIORITISING SUSTAINABILITY: EVOLVING THE INDUSTRIAL BUSINESS MODEL
How can industry move quickly enough to meet environmental sustainability targets? Ali Haj Fraj, senior vice president, Digital Factory at Schneider Electric, comments
W
hile sustainability and carbon neutrality are now primary concerns
for industrial leaders, the pace of change is not fast enough to reach global ambitions. As our recent research with Omdia found, over half (57%) of industrial organisations have put carbon-neutral targets in place to completely offset their greenhouse gas (GHG) emissions. However, almost half (48%) have yet to act on these targets and fully implement vital sustainability initiatives. With the race to Net Zero a
matter of global urgency, how can industry move quickly enough to meet ambitious environmental sustainability targets?
1. COMMIT TO SUSTAINABILITY Sustainability success requires a commitment to set specific targets. Key motivators for sustainable change are corporate responsibility (41%), improved performance (26%), and cost savings (23%). Although sustainability strategies will result in
cost savings, return-on investment must not be the only driving factor. Return-on-value for the myriad of benefits that evolve over time means payoff extends far beyond direct financial returns. To get the greatest return on value, targets should be integrated and owned across business functions to drive commitment across the entire organisation. To go fast, industrial companies should consider short and long-term targets by identifying quick wins alongside more challenging projects ripe for investment.
2. SUPPORT WITH TECHNOLOGY 29% of manufacturers state legacy assets and infrastructure hold them back from implementing the technology needed to meet sustainability targets. Data-led technology is vital to achieving sustainability, ranging from the basics of replacing inefficient motors, to the application of the Industrial Internet of things (IIoT), sensing, artificial intelligence
(AI), analytics, and digital twins. To measure performance, companies can
combine additional sensing with connectivity and data visualisation tools, leveraging AI and analytics to optimise energy use and increase quality output. For products and processes, digital twins help improve designs, reducing material use and eliminating prototyping. Simulation of processes helps optimise performance and minimise energy consumption, waste and emissions. 54% of manufacturers are already using digital twins to design plants, factories and facilities, while efficient automation and energy management systems are also seen as providing the most significant impact on sustainability initiatives. The benefits of this approach can be seen at Kunming CGE Water Supply (KMCGE), where digitalisation was harnessed to reduce operating costs and drive sustainability. Through the partnership with Schneider Electric and AVEVA, KMCGE’s digital core has been reshaped, reducing leakage and energy waste, and improving operational and maintenance efficiencies.
3. HAVE A DATA-LED APPROACH One fifth (21%) of industrial companies identified a lack of data as a key roadblock to sustainability. Tracking metrics such as energy use, material consumption and waste, support the improvement and evolution of
36 DESIGN SOLUTIONS - SUPPLEMENT FEBRUARY 2023
sustainability targets. Dashboards simplify analysis of the carbon footprint of individual assets, processes and facilities. It can be difficult to manage solutions across departments because there is often no digital thread, limiting businesses’ ability to analyse organisation-wide sustainability data. Data integration and elimination of silos increases interaction between departments, giving a vital view of datasets, helping to inform decision- making, and understanding how to prioritise investments in sustainability projects.
Which best reflects why investment is being made in sustainability initiatives?
4. PARTNERSHIPS ARE IMPORTANT Manufacturing companies must also hold their ecosystem partners to account. Real change requires the entire value chain to act, and it is vital to engage all stakeholders. Extending visibility across the supply chain will be more and more important as organisations become responsible for scope 3 emissions, and by extension the companies they choose to partner with. Many organisations do not currently track scope 3 emissions, as this requires transparency across all supply chain stakeholders. The footprint of a business’
supply chain, including the upstream
purchase of goods and downstream use by customers, must be considered as part of total scope 3 visibility, making effective partnerships and data integration essential.
5. SELL THE VISION 19% of manufacturers note that successfully achieving culture change is a major challenge to attaining their sustainability goals. The large-scale coordination and strategic
integration across business functions goes beyond connecting siloed data and systems. If businesses communicate their vision, internally and externally, providing a clear roadmap will achieve the buy-in needed. Fortunately, there is weight behind such initiatives: 78% of industrial companies state a C-level role is directly responsible for driving sustainability efforts. Sustainability must be the core driver of
industrial evolution, both in the short and longer term. Effective action on sustainability will require a review of existing processes, equipment, organisational culture, and technology, to identify and tackle inefficiencies and waste. By appreciating the wide-range of returns, establishing and communicating vision and setting data-based goals, industry will succeed in this mission.
Schneider Electric
www.se.com/uk/en/
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