Capgemini: Sustainable Manufacturing Operations

From aggressive adoption of digital technologies and aligning business teams and sustainability efforts, to driving sustainability initiatives across the entire value chain, Capgemini has released a new report titled ‘Sustainable Manufacturing: Sustainable operations – a comprehensive guide for manufacturers’. The guide identifies the roadmap for manufacturers to achieve their sustainability targets.

Despite High Ambitions, Only 51% of Global Manufacturers are on Track to Reach Paris Agreement Goals

Globally, many manufacturing organisations have set ambitious sustainability targets for 2030, with 20% aiming for carbon neutrality and 40% setting ambitions for 100% renewable operations. 

Despise this, only 51% of manufacturing organisations globally are looking to align with the temperature contribution target of the Paris Agreement, with Germany (68%) and France (67%) leading the way. 

The report did, however, reveal that manufacturers are boosting their sustainability with technology. 56% of organisations are currently priorities deployments of digital technologies for their sustainability efforts. 

Strong Progress in Sustainable Manufacturing

According to Capgemini’s latest report, the strong progress being made in sustainable manufacturing is driving the realisation of the benefits sustainability initiatives provide. 

• 89% of organisations implementing sustainability initiatives experience enhanced brand reputation
• 81% noted an improvement in the environmental, social, and governance (ESG) rating of their company
• 79% have improved their efficiency and productivity
• More than half have reduced their packaging costs and boosted employee motivation levels
• 98% have seen a reduction in waste, and 94% have seen a reduction in greenhouse gas emissions by implementing sustainability practices

Despite High Ambitions and Strong Progress, Few Are on Track 

As identified by Capgemini, the manufacturing sector lacks a comprehensive focus on sustainability, with maturity levels remaining low. 

• Only 10% of organisations take a holistic approach to sustainable manufacturing
• Across industries, consumer products are the most sustainable sector (15%), followed by industrial and capital goods (11%) and automotive (10%)
• Only 11% of sustainability initiatives are actively being scaled across organisations 
• While 38% are prioritising Scope 1 emissions, even less are focused on Scope 2 and 3

”There is a paradox in the fact that only 11% of green sustainability initiatives are actively being scaled across organisations, while the benefits realised by companies adopting sustainability initiatives are huge. Technologies and data are critical to accelerating the sustainability agenda. We’re seeing growing investments in digital technologies by manufacturers who are forming partnerships with established technology firms and startups to further develop their sustainable solutions. This is leading organisations to a full range of opportunities to reconcile profitable growth and sustainability,” said Corinne Jouanny, Chief Innovation Scaling Officer at Capgemini Engineering.

Addressing Barriers for Success

Currently, less than one in three manufacturers have alignment between their sustainability executives and business executives when it comes to sustainability priorities.

According to Capgemini’s report, it will be important for manufacturers to go beyond existing lean and green practices - reduce, reuse, recycle. Instead, manufacturers should adopt a more comprehensive approach that incorporates recovery, redesign and remanufacture. 

Capgemini concludes the report with the top sustainability practices or applications for manufacturers: 

1. Align business teams and sustainability executives 
2. Work with customers and suppliers to reduce indirect emissions
3. Build transparency through reporting and accountability
4. Incorporate sustainable ways-of-working
5. Invest in technology and data-driven innovation

Click here, to download the full report.