Go Green is a keyword these days, and rightly so. We live in an age in which we understand the gravitas of humanity’s effects on the planet. Our lifestyles, needs, wants, and luxuries are based on what mother nature offers. We as individuals and industries – big and small, have a responsibility to look after our planet. Industries, more so, because they, directly and indirectly, affect individual lives. Almost all of the goods and commodities in the common household come from some form of industry. Thus, the corporations that run these industries need to pay close attention to how these commodities are manufactured.
Right from the basics like the 3 Rs – Reduce, Reuse, Recycle, to more complex methods like making the entire supply chain sustainable – the scope is massive, but the path is not easy. Yet, every process directly impacts the revenues, which every company keeps a close tab on. On the other hand, although quite evident, the impact on the environment is not so easily quantifiable at the macro level, so it is easy to make incorrect decisions based on skewed data.
As India looks forward to becoming a manufacturing hub for the world, Indian manufacturers must zoom out to a global level to understand what the global standards are. It is quite understandable that it may not be easy for all the players to immediately adopt these standards, most of which come with the added investment. Also, these standards cannot be met in the short or medium term. Long-term plans with consistent upgrades vis-Ã -vis the growth of the organization are necessary.
The international standards must be looked at objectively. Europe, for example, has very strict regulations about industrial emissions and disposal. However, what flies under the radar is that many industries in Europe have outsourced their component manufacturing to other parts of the world. These components are imported into Europe for assembly hence it becomes easy for such companies to adhere to strict manufacturing regulations and standards. The burden of heavy emission manufacturing is focused in South and East Asian countries which do not yet have standards as high as the developed nations. These countries are steadily moving towards those standards, and that route could suit India very well. The purview of Sustainable Manufacturing Processes should include the manufacturer’s sustainable growth and environmental sustainability.
Newcomers to the field can begin by utilizing the basic methods mentioned above to ease their investment burden, as more complex processes can be costly. These simple techniques are easier to adopt and have less impact on scalability and investment. A good starting point is selecting raw materials that minimise waste or can be easily reused, which helps reduce waste and input costs. Those who are in the process of acquiring new machinery can look at low-energy equipment or ones with lower emission ratings. Again, their viability to a company depends on the cost versus the end result. There are other sustainable manufacturing processes too. Conducting a sustainability assessment, adopting lean manufacturing principles, implementing closed-loop recycling systems, incorporating renewable energy sources, improving energy efficiency, conserving water, promoting materials efficiency and engaging with suppliers are some ways companies can implement sustainable manufacturing practices.
To find the balance between cost and value, companies should consider the following strategies:
- Conduct a cost-benefit analysis: A cost-benefit analysis of sustainable manufacturing processes can help determine the potential costs and benefits of implementing sustainable practices, including any long-term cost savings.
- Prioritize actions: Prioritizing actions based on the cost-benefit analysis results can help ensure that resources are focused on the most impactful sustainable manufacturing practices.
- Implement gradually: Implementing sustainable manufacturing processes can help reduce upfront costs and minimize the financial impact on the business.
- Engage with suppliers: Engaging with suppliers to promote sustainability throughout the supply chain can help ensure the entire supply chain is aligned with sustainable manufacturing practices, potentially reducing costs.
- Leverage financial incentives: Leveraging financial incentives from the government can help offset the costs of implementing sustainable manufacturing practices.
Incorporating these measures can help companies reduce their dependence on non-renewable resources, minimize waste and greenhouse gas emissions, conserve water resources, and promote environmentally friendly materials. Adopting these practices can also help companies align their supply chain with sustainable manufacturing principles and contribute to the overall goal of a more sustainable future. Companies can benefit from these practices by reducing their environmental footprint, improving their reputation, and appealing to environmentally conscious customers.
Sustainable manufacturing practices should aim to reduce the environmental impact of production processes while ensuring cost viability for the company. Modern customers are becoming increasingly aware of the importance of sustainable products and are willing to pay a premium for them. However, budget-conscious customers are not necessarily averse to environmentally friendly products; they may not be able to afford them yet.
Manufacturers should aim to offer a range of products that cater to different categories of customers. The energy star ratings for electronic appliances are a common example of how manufacturers can offer products that are accessible to every consumer while maintaining profitability. This approach helps create a product line that caters to environmentally conscious customers willing to pay a premium and budget-conscious customers looking for more affordable options. By doing so, manufacturers can attract both types of customers, create a larger customer base, and contribute to a more sustainable future.