Industry 4.0, as the confluence of disruptive technologies and innovations, provides solutions to some of the most contemporary manufacturing challenges. However, what needs to be considered is that manufacturing strategies must be both smart and sustainable, with few opportunities for a trade-off.

Addressing more than material demands

Unlocking the promises of Industry 4.0 hinges around three core tenets: a renewed focus on resilience, workforce empowerment, and solid ecosystem-wide collaboration to address broader stakeholder interests. Here, sustainable intent must guide policy actions while technology catalyses the pace of positive transformation. Such changes rooted in sustainable values and driven by tech call for ingenuity, empathy, and an incremental but deliberate thrust toward a more inclusive business posturing. 

Here are some priorities that manufacturers looking to be sustainable, smart, and resilient can readily target as part of their journey in 2023 and beyond:

Renewable energy adoption: Fossil fuel, supplying 80 per cent of the global energy demand, is expected to rule the roost for the manufacturing energy mix well into the foreseeable future. However, it is predicted that renewables can contribute up to 27 per cent of the final energy consumption for global manufacturing by 2030. Here, by incrementally offsetting the use of fossil fuel with renewable sources like solar, wind, and hydrogen fuel for operations, a manufacturer can shrink the business’ carbon footprint and accelerate progress towards a net zero emission state. More importantly, increasing the share of locally generated renewables in the energy mix can bolster operational resilience, eliminating strong dependence on remote conventional energy sources susceptible to disruptions.    

Circularity and waste reduction: Efficient material consumption is a key determinant of manufacturing outcomes. Yet, we are still seeing a rise in waste volume and raw material shortages. In response, manufacturers can shift from the conventional linear to a circular economic model.  It takes a bold step further, prescribing to eliminate waste where necessary and extract tangible value from it where possible, ensuring supply resilience and profitability.  The philosophy is embodied by the zero waste to landfill approach that necessitates diverting at least 99 per cent of the processed waste from landfills into the value chain. 

Balanced and responsible supply chain practices: It is a strategic imperative for manufacturers to ensure a healthy mix of domestic and international vendors in the supplier mix. Moreover, there should be conscious attempts to foster localised bases for skills, business acumen, and technology competencies. The conduct of supply chain partners has direct implications for a brand’s image. Consequently, it is critical to evaluate them as per the exact waste disposal, human rights, fair labour, and anti-corruption standards that a business would otherwise hold itself accountable for. Further, such partners must be rigorously screened as per stringent international codes for environmental safety and responsible sourcing. 

Fostering a culture of sustainability: To be genuinely viable, a business must have its shop-to-top floor attuned to the long-term vision for sustainability. Here it becomes critical to have sustainable goals with well-defined targets and timelines for guiding corporate policy action. It is important that sustainability be looked at as a systemic and objective-driven investment, rather than a piecemeal approach. Inclusive intent from leadership is essential to foster a culture where employees can engage in sustainability conversations, and contribute meaningfully towards the institutional sustainability goals. 

Providing sustainable solutions are becoming non negotiable

The global manufacturing sector will rebound and reach new heights in 2023 and beyond. However, for an adequate response to today’s sustainability challenges, manufacturers must invoke industry-wide partnerships and simultaneously reach out further to bring governments, NGOs, and public agencies within the folds of collaboration. The litmus test of a sustainable solution is pluralism, and its capability to address broader environmental and stakeholder concerns.