Executive Chronicles | 4 Benefits of Making Manufacturing Sustainable | Moving toward sustainability will increase profits and reduce costs for a business. There are three main parts to sustainable manufacturing. Companies can begin by making small changes in one of these areas, such as reducing waste. For example, one business eliminated 14 hazardous waste streams, resulting in a $40,000 reduction in disposal costs.
Reducing waste
Making manufacturing sustainable involves reducing waste and using fewer materials to produce goods. This can save a significant amount of money because waste disposal costs money. Additionally, reducing waste and using sustainable manufacturing methods can help your business reduce its expenses on a monthly or yearly basis. Lastly, adopting sustainable practices can help your business become more eco-friendly.
Recycling can be an easy way to make your business more sustainable. Companies can start by collecting empty cans and boxes for recycling. Then they can expand to using recycled paper instead of new. This saves energy because it doesn’t have to be manufactured again. Also, reusing products, which can be recycled and resold, can reduce the amount of waste produced.
Making manufacturing sustainable also reduces costs and improves profit margins. By focusing on all three parts of sustainable manufacturing, a business can significantly impact without investing much money. Benefits of sustainable manufacturing include one corporation eliminating fourteen hazardous waste streams and cutting disposal costs by 40%. It is also helpful to start small by reducing waste in a single area.
Increasing operational efficiency
Making manufacturing sustainable is a great way to increase operational efficiency and reduce costs. Manufacturers can decrease energy consumption, improve worker safety, and reduce waste and materials by improving equipment and processes. Manufacturers can also compete with large businesses by making products with a low environmental impact.
As customers and stakeholders become more concerned about the environment, manufacturing will become more critical. Legislation is becoming more stringent, so manufacturers must make an effort to meet compliance standards. Implementing new technologies and improving processes to achieve sustainability goals takes work. It requires financial investments, buy-in from workers, and a sound strategy to ensure long-term success.
One of the biggest challenges facing manufacturers is energy consumption. Globally, manufacturing uses about one-third of the world’s energy. With global energy prices increasing, this is a high cost. Making manufacturing sustainable means incorporating renewable energy into manufacturing processes and minimizing energy consumption. This increases operational efficiency, which is valuable for growth and long-term business models. Additionally, it promotes public trust and creates new customers.
Embracing renewable energy
As more businesses become aware of the environmental risks of fossil fuels, many are embracing sustainable practices to minimize their ecological impact. Embracing renewable energy in manufacturing is one of these practices. Today, renewable energy is cost-competitive with fossil fuels. Major companies also recognize that there’s green money to be made in the renewable energy-powered economy.
Big tech companies and automotive companies have embraced this transition. China, one of the world’s largest carbon emitters, is already the world leader in solar and wind energy production. It plans to produce a third of its energy through renewable sources by 2025. Furthermore, it has made significant investments in renewable energy, making it one of the largest investors in the world.
Developing countries face many challenges in adopting renewable energy technologies. The GEF has provided technical support and financial aid to overcome these challenges. By collaborating with the private sector, the GEF has helped developing countries develop new technologies and transform their energy markets. These initiatives include partial risk guarantees, revolving and equity funds, and other innovative financial tools. The GEF trains local engineers and government officials to use renewable energy technologies.
Social responsibility
One of the benefits of manufacturing sustainable products is that companies can increase their profits while being socially responsible. Studies have shown that more than half of consumers are willing to pay a premium for a product with high social responsibility. Furthermore, a company will save money on utilities by reducing carbon emissions.
Social responsibility involves giving back to society and the environment. Companies can contribute a portion of their budget to social and environmental causes that support the most vulnerable sections of society. They can also donate to local nonprofits or contribute to sports, heritage, and cultural activities to improve societal well-being.
Sustainable organizations also strive to minimize their negative environmental and social impact and must act per societal expectations. For example, an employee at a Unilever tea factory may suggest a change in the size of paper tea bags to reduce waste. By promoting social responsibility, the company is helping to create a more socially-conscious society.
