Due to the rising levels of CO2 emissions in recent years, Global warming has become a call for concern to every industry. As of 2020, reports by Stanford University estimates the level of CO2 to have exceeded 36.8 billion metric tons in 2019. Although the rate of emissions is declining, researchers warn emissions could keep increasing for more than a decade unless energy, transportation and industry policies change dramatically worldwide. Due to all these, more companies are dedicating to sustainability. As reported in the 2019 survey by Business for Social Responsibility (BSR), 52% of companies surveyed cited climate change as a “very significant” sustainability focus. One vital way in which companies can reduce their carbon footprint is to decrease the carbon footprint of their supply chains. In order to do so, companies will need to consider all stages of their supply chain and employ creative approaches to sustainability.

Though the manufacturing industry plays a significant role in global carbon emissions, it also possesses immense potential to drive sustainable change. As organizations increasingly prioritize environmental responsibility, reducing carbon footprint has become a pressing imperative. We’ve outlined in this article the key aspects of a sustainable supply chain and highly effective strategies that manufacturers can adopt to minimize their carbon footprint, contributing to a more sustainable future.

What makes a supply chain sustainable?

The sustainability of a supply chain varies widely between companies, products and processes. So, it is important for companies to examine each stage of their supply chain and consider efficient strategies that could be implemented. Unfortunately, that can be a little challenging for businesses that outsource, and the companies they work with are not fully transparent with their measurement and reporting. To be on the safe side, these are important questions to ask partner companies:

• Are you maximizing the space you use in containers, shipping vehicles and packaging?

• Are you considering the global impact when choosing partners for fulfilment, manufacturing and supply?

• What are your sustainability goals? Do they have sustainability goals that align with that of your organization?

Strategies that manufacturers can adopt to minimize their carbon footprint.

1. Embrace Energy Efficiency: Energy consumption is a major contributor to carbon emissions in the manufacturing process. By implementing energy-efficient practices, such as upgrading machinery, optimizing production processes, and investing in energy management systems, manufacturers can significantly reduce their carbon footprint. Utilizing smart technologies, such as sensors, automation, and machine learning, enables precise monitoring and control of energy usage, leading to substantial energy savings and emissions reductions. A good example of energy-efficient practices in the manufacturing industry is How to Streamline Your Supply Chain with Efficient Wire Harness Manufacturing.

2. Optimize Supply Chain: The Supply Chain is another vital part in which manufacturers can minimize their carbon footprint if well optimized. This involves assessing suppliers based on their environmental performance, proximity to manufacturing facilities, and transportation methods. Collaborating with local suppliers and implementing just-in-time inventory management can reduce transportation distances, resulting in lower emissions. Moreover, embracing circular economy principles, such as recycling and remanufacturing, reduces the need for resource extraction and minimizes waste generation. Find out more on What is a circular economy?

3. Invest in Renewable Energy: Transitioning to renewable energy sources for the manufacturing and operations energy needs is a game-changer for reducing carbon emissions. Installing solar panels, wind turbines, or utilizing biomass energy can power manufacturing operations with clean and renewable energy. Manufacturers can also explore partnerships with renewable energy providers or invest in off-site renewable energy projects. This shift not only reduces reliance on fossil fuels but also demonstrates a commitment to sustainable practices, attracting environmentally conscious customers and investors.

4. Opt for Sustainable Materials: Choosing sustainable materials is crucial to reducing carbon emissions in any manufacturing processes. Manufacturers can prioritize materials with a lower carbon footprint, such as recycled or bio-based materials. Additionally, optimizing material usage through waste reduction initiatives and implementing closed-loop systems can reduce resource consumption and waste generation. Collaborating with suppliers to source sustainably produced materials further enhances the environmental sustainability of the manufacturing process.

5. Implement Life Cycle Assessment (LCA): Life Cycle Assessment (LCA) is a comprehensive approach to evaluating the environmental impact of a product throughout its entire life cycle, from raw material extraction to end-of-life disposal. By conducting LCAs, manufacturers can identify hotspots of carbon emissions and make informed decisions to reduce them. LCA helps in optimizing product design, material selection, manufacturing processes, and end-of-life management, leading to significant reductions in carbon footprint in manufacturing and overall environmental impact. To learn more about LCA, visit Life Cycle Assessment (LCA) – Complete Beginner’s Guide.

6. Foster Employee Engagement: Engaging employees in sustainability initiative is very important for successful carbon footprint reduction. Manufacturers should promote awareness and provide training on sustainable practices. Encouraging employees to contribute ideas, suggestions, and innovations fosters a culture of sustainability within the organization. By empowering employees to be sustainability champions, manufacturers can drive continuous improvement and achieve meaningful reductions in carbon emissions. Strategies for Setting an Effective Sustainable Procurement System provides you with a more comprehensive approach on how to foster employee engagement in sustainability practices.

Conclusion:

Reducing carbon footprint in the manufacturing industry is not only an environmental imperative but also a strategic business opportunity, and by embracing energy efficiency, optimizing the supply chain, investing in renewable energy, choosing sustainable materials, implementing life cycle assessments, and fostering employee engagement, manufacturers can make great progress in reducing their carbon emissions. Embracing sustainable practices not only benefits the environment but also enhances brand reputation, attracts environmentally conscious customers, and ensures long-term business resilience. By taking proactive steps to minimize carbon footprint, manufacturers play a vital role in creating a more sustainable and low-carbon future.