How Sustainable Manufacturing Went Mainstream
Written By: BOSS Editorial
Reading Time: 3 minutes
Ever since the industrial revolution, manufacturing has been associated with pollution and damage to the environment; however, it’s something that’s now becoming increasingly clean and sustainable thanks to modern innovations.
Manufacturing isn’t quite green to its core yet, but things are changing quickly. Here are some of the reasons that sustainable manufacturing went mainstream:
Consumer and public demand
One of the biggest reasons manufacturing has become more sustainable has to do with consumer and public demand. Younger generations want to use brands that prioritize eco-friendly products and packaging. They’re concerned with issues like plastic waste and long supply chains that damage the environment and cause more diesel fuel to be burned by ships.
This public demand is filtering into the decision-making. Many firms are making changes today. A lot of them are rethinking their supply chains and packaging, looking for more sustainable and eco-friendly alternatives.
Economic and competitive benefits
On top of this, there are the economic and competitive benefits of making manufacturing more sustainable. Manufacturers themselves are starting to bear the costs associated with operating dirty business models. Now they’re looking for solutions that enable them to become more resilient and innovative in circular economies.
McKinsey suggests that companies will be able to cut their carbon emissions by 9.5 gigatons annually by the year 2030 by optimizing processes and reducing energy inputs. This in itself is going to make manufacturing enterprises more profitable, increasing their margins by producing more output with less input.
Extended producer responsibility requirements
In addition to this, extended producer responsibility requirements are also playing a role. Regulations are catching up with manufacturers and helping them on their journey to become more green and sustainable by leveling the playing field.
In today’s global economy, it’s not fair that some companies can operate with impunity while others have to follow green standards. Improvements will only come when entire industries have to adhere to these rules and regulations. This means controlling packaging waste and the damage that the production of products creates.
Changes in investor preferences
Following on from this, there are also changes in investor preferences taking place, underway since the COVID-19 pandemic, and especially post-2020. More private money is looking for sustainable manufacturing options to add to personal portfolios. Investors are focusing more on ESG performance and looking for supply chain vulnerabilities that might be destructive in any future economy. This change is accelerating as investor transparency becomes more common and more reporting requirements are coming online.
Technological enablers
Finally, technology is enabling more sustainable manufacturing and helping it to go mainstream. New innovations are constantly coming online to flood the gaps in the circular economy and give manufacturers a helping hand towards their goals.
For example, AI is enhancing innovation and making it easier for individual companies to make great things. The Internet of Things is providing sensors on objects across the operational landscape, allowing better decisions to be made in real time. This includes waste minimization and the ability to make production initiatives more scalable.
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