Rapidly Changing Green Manufacturing Expectations

For the world to stay within the limits set by the Paris Agreement, consultant BCG estimates that emissions from production and logistics will need to decrease by approximately 45% by the end of the decade. All eyes are therefore on manufacturers to show that they are cleaning up their operations, facilitating an effective net zero transition, and becoming truly green manufacturers.

The pressure is coming from multiple directions. Governments, for one, are increasingly proactive in pushing for substantive change. For example, the EU’s “digital product passport” will mandate companies doing business in the EU to disclose information about product makeup so that they can be more effectively recycled – putting commercial and disclosure pressure on companies.

Managing a challenge as complex and multi-faceted as climate change means it’s more important than ever to establish an accurate and comprehensive understanding of the lay of the land. 

“Product and manufacturing engineering is becoming more complex than ever, especially now that a given product’s environmental footprint needs to be included in the early design phases,” says Dutton. "Much more sophisticated digital tools are needed.”

Managing this complexity may mean that would-be sustainable industries increasingly come to rely on digital tools, whether that means expanding insight into operations, or innovating with sustainable products and processes. According to the Financial Times Focus report, 26% of businesses are adopting advanced digital tools to help them design and build lower-carbon products. 

There are two key benefits to this approach: The ability to measure and monitor the footprint of existing operations and products; the opportunity to model and test new ideas and ways of working. An example of this in action is the rapid growth in offshore wind farms. Digital tools have enabled designers to create larger, more efficient, and more resilient turbines by carrying out tens of thousands of simulations during the design stage and then constantly monitoring performance during its operation. 

“Technology is a powerful way to validate any sustainability claims and is critical in winning the trust of investors, regulators and customers,” says Tom Acland, CEO at 3DEXCITE, Dassault Systèmes.

Manufacturers have a colossal task ahead of them – creating sustainable, accountable, circular value chains. To do so, will require rethinking how they operate, both individually and together. Having the necessary tools at their disposal to find the right solutions will be crucial. 

“This is the challenge that we have in front of us today. If we embrace new models, methods, tools, and skills we’ll come out more resilient, protecting both our businesses and the planet on the way,” says Dutton.