Top 10: Net Zero Factories

As manufacturers uphold principles of social responsibility, striving to meet the regulatory and ethical imperative of sustainability, the sector has seen the emergence of a new ideal: the net-zero factory. 

A net-zero factory implements decarbonisation at the site level, reducing Scope 1 and 2 emissions across a broad range of sectors. Ideally, it achieves a balance where the total greenhouse gases emitted are equal to those removed from the atmosphere, neutralising its impact on climate change. 

With global manufacturing responsible from anywhere between 12% and 25% of global greenhouse gas emissions depending on industry, the growth of net-zero factories is vital to create a sustainable future. 

Its critical to specify here that the net-zero factory is more of a continually evolving process than a static end point. As new sustainable innovations are created and global conditions shift and evolve, the net-zero factory is one capable of continuous refinement and evolution. 

Below, Manufacturing Digital ranks the top 10 net-zero factories, created by some of the most influential global manufacturers.

10. LG Innotek's Gumi Plant, South Korea

• Revenue: US$11.57bn

• Employees: 75,000

• CEO: William Cho

• Founded: 1958

LG Innotek, an electronics manufacturer and affiliate of the broader LG Group, is advancing the growth of net zero factories through its plant in Gumi, South Korea.

Through the integration of advanced energy-saving technologies and the use of renewable energy sources, the plant now operates entirely on solar power. Additionally, it features a waste-to-energy system that further reduces its environmental impact.

This shift to a net-zero operation is a key component of LG's broader sustainability strategy. The company aims to cut its greenhouse gas emissions by 50% by 2030 and enhance energy efficiency across its global operations. 

Achieving Zero Waste to Landfill (ZWTL) certification further demonstrates LG’s dedication to sustainability. The Gumi plant was awarded the ZWTL Platinum level in 2021, becoming the first among materials and components manufacturers to achieve this status. The ZWTL certification, awarded by Underwriters Laboratories (UL) Solutions, reflects LG’s commitment to resource circulation. 

The platinum level is granted when a facility recycles 100% of its scrap materials, underscoring the plant's contribution to reducing waste and promoting circular economy principles. 

This certification highlights the role the Gumi plant plays in LG's ongoing efforts to create a more sustainable future through responsible resource management and energy consumption.

By converting the Gumi plant into a net-zero facility, LG not only supports its own environmental goals but also sets an industry-leading example of how large-scale manufacturing can align with global sustainability targets.

9. Samsung Electronics Gyeonggi Plant, South Korea

• Revenue: US$52bn

• Employees: 320,000

• CEO: Young Hyun Jun

• Founded: 1938

Samsung's plant in Gyeonggi, South Korea, is a leading net-zero factory that drives sustainability through a combination of renewable energy sourcing, energy-efficient production processes, and a commitment to reducing waste.

The facility extensively utilises solar panels and energy recovery systems to offset carbon emissions and has effectively reduced its overall energy consumption through advanced automation and digital tools. 

It forms part of Samsung's Device eXperience (DX) division, which, in 2023, achieved a 93.4% conversion to renewable energy across its major global manufacturing sites. This accomplishment is part of Samsung's commitment to reaching net-zero Scope 1 and 2 emissions for the DX division by 2030.

In addition to energy initiatives, Samsung has been proactive in enhancing air quality around its campuses. The company has cultivated nearly 1.73 million shrubs and trees across its sites in Giheung, Hwaseong, Pyeongtaek, Cheonan and Onyang.

These green spaces are estimated to reduce approximately 61.8 tonnes of fine dust annually, equivalent to the emissions from around 36,000 diesel vehicles each year.

Samsung's Gyeonggi plant exemplifies Samsung's dedication to environmental stewardship, contributing significantly to its overarching goal of achieving carbon neutrality by 2050.

8. Future Biogas and Astrazeneca's Moor Bioenergy Plant

• Revenue: US$54.07bn

• Employees: 89,900

• CEO: Pascal Soriot

• Founded: 1999 (through the merger of Sweden's Astra AB and Britain's Zeneca Group)

AstraZeneca, in collaboration with Future Biogas, has launched the UK's first ever unsubsidised biomethane plant, designed to fuel the life sciences sector. 

Located in Gonerby Moor, Lincolnshire, the plant will provide clean heat for all of AstraZeneca’s UK R&D and manufacturing operations, supporting the sustainable production of medicines.

The plant is set to supply 100 GWh of renewable energy annually, equivalent to 20% of AstraZeneca's total global gas consumption. This will enable the manufacturer to displace approximately 18,000 tonnes of CO2e emissions per year, contributing significantly to its sustainability targets, which are on the horizon. 

As part of its Ambition Zero Carbon programme, AstraZeneca intends to reduce its Scope 1 and 2 emissions by 98% by 2026 from a 2015 baseline. In 2021, the company achieved a 59% reduction in these emissions and sources 100% of its imported electricity from renewable sources.

To meet its goal, AstraZeneca will continue to focus on reducing energy consumption, transitioning to an electric vehicle fleet, and eliminating F-Gas emissions across its sites.

The manufacturer will also strive to develop more sustainable inhalers that use low-global warming potential propellants.

 7. LONGi Jiaxing Factory, China

• Revenue: US$8.2bn

• Employees: 75,066

• CEO: Li Zhenguo

• Founded: 2000

In 2023, LONGi's Jiaxing facility in China was recognised by the World Economic Forum as a 'Global Lighthouse Factory' for its commitment to digitally enabled sustainable manufacturing.

Among only 153 factories recognised, this is the first solar module factory ever to receive this status.

The plant uses AI and automation to enhance efficiency, successfully cutting energy consumption per unit by 20% through optimising delivery cycles and targeting production costs. This aligns with LONGi’s commitment to innovation and sustainability in the photovoltaic industry, as it manufactures mono silicon wafers for semiconductors and hydrogen equipment.

LONGi was founded in 2000 to drive the advancement of solar technology and clean energy solutions across China and the globe. By 2022, the company announced it had reduced operational emissions per revenue unit by nearly 40% and sourced 47% of its electricity from renewables, cutting 2.5 million tonnes of CO₂ emissions.

LONGI is informed by its "Energy Equity" strategy, aka the belief that clean energy should be available to everyone. 

This strategy has informed the manufacturer's work to produce solar modules at a global scale, helping the company advance projects across countries with less developed renewable energy infrastructure.

6. Jaguar Land Rover Halewood Plant, UK

• Revenue: US$35.9bn

• Employees: 38,379 

• CEO: Adrian Mardell 

• Founded: 2008

Another leading net-zero factory is ​Jaguar Land Rover's (JLR) Halewood plant in Merseyside, UK which produces state-of-the-art electric, hybrid and internal combustion engine vehicles.

The plant is undergoing the installation of  18,000 solar panels, expected to generate approximately 8,600 MWh of electricity annually, accounting for about 10% of the site's energy consumption. 

This initiative aligns with JLR's commitment to achieving carbon net-zero across its supply chain, products and operations by 2039. 

As part of this strategy, JLR aims to reduce greenhouse gas emissions across its operations by 46% by 2030. Additionally, the company plans to offer all-electric models across its luxury brands by 2030. 

JLR has further reduced the plant's emissions through the installation of 750 robots, laser alignment technology and cloud-based systems to enhance manufacturing efficiency. 

This evolving net-zero factory underscores JLR's dedication to sustainable manufacturing and its vision for an electrified future.

5. Ford's EV Assembly plant, Cologne, Germany

• Revenue: US$187.44bn
• Employees: 150,000
• CEO: Mary Barra
• Founded: 1908

Ford has opened its first carbon-neutral vehicle assembly plant, the Cologne Electric Vehicle Centre in Germany, as part of its "Road to Better" sustainability plan, aiming for carbon neutrality across vehicles, operations and supply chain by 2050. 

The plant, built following a US$2bn investment, is Ford's first carbon-neutral assembly plant globally and is designed to produce a new generation of electric passenger vehicles for European markets. 

• Electrification focus: Ford is investing heavily in electric vehicles and batteries, with a goal of offering only all-electric vehicles from 2035. 
  
  

• Other sustainability initiatives:

  • Zero Waste to Landfill: Ford aims to achieve zero waste to landfill across its European plants, with a pledge to do the same across its global plants. 
  • Renewable Energy: Ford is committed to sourcing 100% carbon-free electricity for global operations by 2035, with all purchased electricity for manufacturing in Europe currently renewable. 
  • Water Reduction: Ford aims to reduce absolute freshwater use by 15% by 2025. 
  • Recycled Materials: Ford aims to use 20% recycled and renewable plastics in new vehicle designs for Europe by 2025 and plans to utilize only recycled or renewable content in vehicle plastics globally by 2035. 
  • Supply Chain: Ford is working with suppliers to reduce emissions and ensure sustainable practices throughout its supply chain. 

4. Unilever Oleochemical Indonesia

• Revenue: US$64.8bn

• Employees: 120,040

• CEO: Fernando Fernandez

• Founded: 1980

As a subsidiary of Unilever, Unilever Oleochemical Indonesia (UOI) is the prominence of Unilever’s global palm oil’s strategy. Committing to conduct sustainable business consistently, Unilever Oleochemical Indonesia is taking the bold move to be the first oleochemical factory to invest in the middle of North Sumatra’s unique palm oil paradise. Ensuring the CPO (Crude Palm Oil) and CPKO (Crude Palm Kernel Oil) is traceable, certified, comply with NDPE policy and comes from sustainable and trustable source. With pioneering facility, Unilever Oleochemical Indonesia has succeeded to halve its carbon footprint and produce ultra-pure products under the brand of Unioleo.

Unilever Oleochemical Indonesia is under Unilever Global supply chain organization. Our focus is to fulfill the raw material needed (Oleochemical based products: Fatty acid, Glycerine, Soap Noodle, Natural surfactant) and exporting these Products to 42 Countries where Unilever Factories is existed at.

Over the next three years, we plan to invest €150m in our manufacturing decarbonisation programme focused on three key areas: • Decarbonise our thermal and electrical energy - Improving thermal efficiency (e.g. by reusing waste heat) - Improving electrical efficiency (e.g. by installing more efficient equipment and controls) - Introducing more solar thermal technology - Electrifying thermal processes - Transitioning to sustainably sourced biofuels, such as biomethane A key project in this area is moving from natural gas to biomethane at our Oleochemicals plant in Indonesia. The biomethane will be produced using palm oil mill effluent from lowrisk deforestation-free mills in our supply chain. • Increase our use of renewable power - Exploring increased on-site renewable electricity generation - Enabling off-site renewable electricity generation through large-scale, physical, and virtual power purchase agreements (PPAs) • Reduce emissions from refrigeration - Continuing our phase-out of high-impact HFC refrigeration systems - Training our teams on how to identify, report, and prevent leaks from existing systems

Unilever is aiming to achieve net zero emissions by 2039. That is 11 years ahead of the 2050 deadline outlined in the international Paris Agreement on climate change.

he Green Building Council (GBC) is a member of the World Green Building Council, aims to promote sustainable development through various certification programs, including GREENSHIP. These certifications recognize Unilever Indonesia's commitment to achieving net zero emissions, demonstrated by the use of renewable energy for up to 8% of its electricity needs and a 32% of reduction in electricity consumption from the baseline at Grha Unilever.

The certification plaques were presented by Iwan Prijanto, Chairman of GBC Indonesia, to Willy Saelan, Director of Human Resources at Unilever Indonesia, during a ceremony held at Grha Unilever, BSD City, Tangerang, on Thursday (24/10).

Willy Saelan, Director of Human Resources Unilever Indonesia, emphasized, "This achievement exemplifies our commitment to sustainability. We will continue to support Unilever's global target of achieving Net Zero Emission by 2039 through various initiatives. In our pursuit of leading sustainability practices, we consistently undertake necessary actions, including obtaining the Net Zero Ready certification from the Green Building Council."

Unilever Indonesia first received certification from GBC Indonesia in 2020 for the GREENSHIP New Building category at the platinum level

3. Schneider Electric Le Vaudreuil Factory, France

• Revenue: US$41.04bn

• Employees: 168,000

• CEO: Olivier Blum

• Founded: 1836

Schneider Electric's Le Vaudreuil facility in France exemplifies the company's commitment to achieving net-zero carbon emissions by 2025, serving as a benchmark for sustainable manufacturing.

The factory has implemented Industrial Internet of Things (IIoT) sensors connected to digital platforms, optimising energy management by 25%, reducing material waste by 17% and cutting CO₂ emissions by 25%.

In recognition of its environmental innovations, the World Economic Forum designated Le Vaudreuil as a Sustainability Lighthouse, highlighting its role in advancing green manufacturing practices.

These achievements contribute to Schneider Electric's broader sustainability goals, including sourcing 90% of its electricity from renewable sources by 2025 and achieving net-zero CO₂ emissions across its entire value chain by 2050.

By integrating advanced digital technologies and circular economy principles, Le Vaudreuil not only advances Schneider Electric's sustainability objectives but also serves as a model for the industry in pursuing net-zero manufacturing.

2. Siemens Electronics Works Amberg, Germany

• Revenue: US$83.49bn
• Employees: 312,000
• CEO: Roland Busch
• Founded: 1847

The World Economic Forum (WEF) has named the Siemens Electronic Works in Amberg, Germany, as Sustainability Lighthouse.

The Amberg location is one of Siemens’ most advanced sites. Two separate factories – the Electronics Works and the Equipment Manufacturing Plant – develop and manufacture products for the global market that range from the SIMATIC controller to industrial controls like SIRIUS. Customers and partners are offered an inside view at the “The Impulse” Visitor Center opened in 2021, where digital technologies, concepts, and automation solutions for the autonomous factory are developed and presented.

The goal of the Amberg location is to become carbon-neutral within a period of 9 years, starting from 2021. This means converting from fossil fuels to sustainable energy. Because the plant already exists, it’s what experts call a brownfield plant. This makes it especially challenging because the energy transition can’t be allowed to interfere with ongoing operation and productivity.

Amberg is no novice when it comes to saving energy. Energy-efficiency measures were implemented here as early as 2004 with the introduction of Energy Analytics for acquiring energy data, the introduction of energy management according to DIN ISO 50001, the commissioning of two combined heat and power plants, the procurement of green electricity from hydropower, and the introduction of eChillers. The successes are clearly measurable and Amberg is thus making a significant contribution to Siemens' decarbonisation success.  By 2020, the CO2 emissions of the global factory locations could already be reduced by around 50%. By 2020, carbon emissions had already been reduced by about 50 percent.

Amberg isn’t an isolated case. Some 50 Siemens factories are currently working on becoming carbon-neutral within the next few years, including production facilities in the US, Canada, Europe, India, and China. These future “green factories” will do more than just implement efficiency measures. Besides the possibility of a standardised procedure, the Siemens carbon neutral programme also offers new financing models, the electrification of production, the purchase of green energy, and the introduction of new business models. 

In addition, a heat pump will replace the gas heating in the next few years and will be made as efficient as possible through its clever combination with the cooling system. However, Amberg can’t do without gas altogether because it needs annealing furnaces for the treatment of metal parts. These ovens which will continue to operate for some years to come. “We’re planning on switching from natural gas to biomethane while also investigating the extent to which we can replace natural gas with hydrogen

Process optimisation is the first step. Afterwards, the simulation calculates the feasible and affordable technological changes that will make the plant carbon-neutral. 

Siemens' Amberg factory has achieved net-zero status by integrating digital twin technology and IoT solutions to optimise energy use. The facility operates with a high degree of automation, ensuring minimal waste and energy consumption. This aligns with Siemens' goal to become carbon neutral by 2030 and demonstrates their commitment to sustainable manufacturing.

1. Schneider Electric Lexington Plant, US

• Revenue: US$41.04bn

• Employees: 168,000

• CEO: Olivier Blum

• Founded: 1836

Our top net-zero factory involves the incredible story of how a 62 year old manufacturing plant became one of the most advanced smart factories in the world.

Schneider Electric's Lexington Smart Factory in Kentucky exemplifies the company's commitment to achieving carbon neutrality by 2025.

This facility has undergone a comprehensive digital transformation, integrating advanced technologies to enhance sustainability and operational efficiency.

The plant employs Schneider Electric's EcoStruxure solutions, incorporating Industrial IoT connectivity, power meters and predictive analytics. These innovations have led to a 26% reduction in energy consumption, a 30% decrease in net CO₂ emissions and a 20% reduction in water usage. 

The achievements have earned the facility recognition as a Sustainability Lighthouse by the World Economic Forum.

In addition to energy management, the Lexington facility utilises EcoStruxure Augmented Operator Advisor to enhance operational insight, resulting in a 20% reduction in mean time to repair on critical equipment. 

The integration of these digital tools has also contributed to a 6% decrease in unplanned machine downtime and the elimination of 90% of paperwork.

The Lexington Smart Factory serves as a model for retrofitting existing manufacturing sites with digital technologies to achieve net-zero emissions. 

Its success underscores Schneider Electric's dedication to sustainability and demonstrates the tangible benefits of digital transformation in manufacturing.

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