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Business Models for Sustainable Manufacturing

Bhagyashri Kambale | December 23, 2021 | 811 views
BUSINESS MODELS FOR SUSTAINABLE MANUFACTURING
Sustainable business strategies are bringing significant financial and environmental benefits to manufacturers. Sustainable manufacturing creates goods while minimizing environmental consequences and preserving energy and natural resources. In addition, sustainable production improves the safety of workers, the community, and the products they produce.

Allied Market Research projects that the worldwide renewable energy market will reach $1,977.6 billion by 2030, increasing at an 8.4% CAGR. As a result, we can conclude that many businesses are transitioning from traditional manufacturing to sustainable manufacturing.

It’s a good time to be a part of the renewable energy industry. New technologies are coming to market every day, and we work in an industry that is trying to solve an enormous challenge.

– Susan Stone, Chief Executive Officer at Ubiquitous Energy, Inc., in conversation with Media 7

Though many organizations are pioneering the sustainable manufacturing approach, we have selected five of the most well-known companies making serious attempts to be sustainable manufacturing companies by all means.
In addition to the list of sustainable manufacturing businesses, this article will discuss the advantages of sustainability and how organizations may become carbon neutral. So let's get started.


Top 5 Companies with a Sustainable Business Model

The following are five manufacturing businesses that are investing in sustainable manufacturing methods across their production processes to become more responsive to our mother earth.


Philips Electronics

The company is reducing its environmental effect by engaging with suppliers, taking climate action, and driving the shift to a circular economy. Climate change is a key concern for Philips. So they are rethinking their business strategies and decoupling economic development from environmental and social impacts.

They met their aim of becoming 100% carbon-neutral in their operations and procuring 100% of their power from renewable sources by 2020. They intend to obtain over 75% of their total energy usage from renewable sources by 2025 and to reduce CO2 emissions across their whole value chain to meet the 1.5°C global warming state.


Schott

Sustainability is profoundly embedded in SCHOTT's DNA. It derives from their distinctive business concept, which dates back to 1896. Their sustainability plan includes responsible governance, workers, society, environment, and climate.

“Regarding climate change, it is high time to act. Everyone must take responsibility – politicians, companies and society. We are ready to play our part. We want to become climate neutral by 2030.”

- Dr. Jens Schulte, Member of the Board of Management with responsibility for the “Zero Carbon” strategy program

Long-term thought and responsible behavior are guiding principles of SCHOTT, which is why they care about the environment and climate. They are entering a new era of sustainable management with their “Zero Carbon” strategic program.
Long term, they seek to eliminate fossil fuels as soon as technology allows it. They are focused on the most energy-intensive stage of glass melting to create new solutions.


IKEA

IKEA's low-cost furniture utilizes a lot of wood. But because the company employs sustainable forestry practices, your new minimalist nightstand didn't cost the globe a rainforest. The business is also investing heavily in solar and wind energy. This year, the corporation intends to increase its already significant expenditures in renewable energy, to reach 100% clean energy by 2020. It also leads in offering cleaner, greener products.


Nike

In addition to encouraging people to walk, this footwear manufacturer uses recycled aluminum frames in its headquarters in the Netherlands, and underground energy storage to reduce its carbon footprint. Moreover, it has implemented stringent emission regulations at all of its manufacturing facilities and has cut its overall carbon footprint by around 80 % since the late 1990s. The company also sells the most environmentally-friendly soccer sneakers on the market.


Johnson & Johnson

According to the company, Johnson & Johnson has just begun transitioning a significant portion of its energy reliance to solar power in an effort to become the world's most socially responsible organization. Currently, it is the second-largest user of solar energy in the United States, with more than half of its power coming from environmentally friendly sources.


Rewards of Adopting Sustainable Manufacturing Practices

Many businesses are seeking sustainability for many reasons, including:
  • Reduces operating expenses and waste
  • Responds to new consumers and get a competitive edge
  • Builds public trust and protect brand and reputation
  • Creates long-term business viability
  • Recognizes and address regulatory constraints


What Can We Do to Make Sustainable Manufacturing a Reality?

Every business must support green energy projects. Here are some fundamental actions that every business should take to transform itself into a sustainable manufacturing organization.  


Maximize the Efficacy of Fossil Fuels 

In today's society, energy conservation is a win-win situation. Approximately half of the world's known oil reserves have been exhausted, which means we are near to the point of diminishing returns in terms of supply. As far as we know, there hasn't been a shortage of supplies. Shutting down unwanted equipment might help you save money immediately. Replace a single-speed motor with a variable speed or servo drive. Use a hydraulic pump with variable speed. Wind, solar, and hydropower can also be used to conserve energy.


Reduce or Eliminate Waste

Don't overindulge; merely take in what you need to get the task done. At this point, we may all agree that it's easy, but in the past, our primary focus was on reducing production costs or time to market. Whether we were wasting resources was unknown or irrelevant to anyone. Metal, paper, and packaging are all examples of industries where this is true. The potential for waste reduction may justify the purchase of highly accurate production equipment.


Recycle

As a byproduct of manufacturing, metals may be easily recycled and used for new products. In addition, recycling metal saves money and energy since it uses less energy in the manufacturing process, allowing for a 60 % or more reduction in the energy needed to make new products.


Final Words

Sustainable manufacturing practices are making manufacturing industries more socially responsible and carbon neutral. This new manufacturing method is necessary for today's period because we must consider future generations while improving today's. Natural resources must be conserved before depleting, and we have nothing left to offer future generations. Responsible organizations have already used this sustainable approach in their manufacturing processes, and we anticipate that every company should consider this method to be more sustainable and environmentally responsible.


FAQ


What is the difference between green and sustainable manufacturing? 

The main difference between green and sustainable is that green addresses a single aspect i.e., environmental health, but sustainability addresses the entire system, including economic, social, and environmental aspects.


Which business is more environmentally friendly? 

According to Corporate Knights, Alphabet, Tesla, and AstraZeneca were among the world's most sustainable companies in the Global 100 Index for 2021.


What are the four sustainability factors?

The word sustainability refers to programs, activities, and actions to preserve a resource. But it relates to four unique key areas. Human, social, economic, and environmental are the four pillars or factors of sustainability.

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