The Importance of Sustainable Manufacturing

Overview

Sustainability has become a critical focus for manufacturers, with recent surveys showing a nearly two-fold increase in companies adopting sustainability strategies across the board. While the need to reduce emissions and carbon footprints is largely driven by climate change and regulatory requirements, the motivations for manufacturers go beyond these factors. A large majority of companies see sustainability as a way to align with their corporate values (78%), create a cleaner environment (68%), and improve their reputation with customers and investors (66%).?

The manufacturing and construction sector is under particular pressure, as it was the third-largest emitter of global carbon emissions in 2020, behind only the electricity and transport sectors. This highlights the urgent need for decarbonization in manufacturing to mitigate the global impact of emissions and meet the growing expectations for sustainability commitments. Restoring faith in the industry's commitment to a net-zero future is crucial, especially after years of aggressive industrialization.?

In addition to emissions from core operations, manufacturing supply chains contribute significantly to overall carbon output. On average, supply chain emissions, known as Scope 3 emissions, are 11.4 times higher than those from day-to-day operations. Combined, these emissions make up a substantial portion of global carbon emissions. However, addressing these emissions presents challenges for manufacturers. Scope 3 emissions represent around 70% of the industry’s total carbon footprint, requiring manufacturers to have better visibility into their supply chains and collaborate with suppliers to mitigate emissions effectively.?

Scope 3 Challenges

One of the biggest obstacles manufacturers face in reducing emissions is the lack of data and tools to measure their environmental impact. Many suppliers haven't yet implemented reliable systems that track and disclose the environmental impact of their products creating a data gap and making it difficult for companies to fully assess their overall emissions. ?To make effective sustainability decisions, companies need accurate information about their carbon emissions, waste, water usage, and other climate-related factors. Without this data, it becomes difficult to implement meaningful sustainability strategies or gauge the success of green projects.?

While there is an array of emissions standards and guidelines there is not yet a uniform method for reporting emissions tied to products and services.? Additionally, when direct suppliers source materials from second and third level providers, the value chain becomes increasingly complex. Multi-layered provider environments make it especially difficult to track and measure Scope 3 emissions accurately across all subdivisions of the value chain.? The lack standardized guidelines and multiple level tracking hinder transparency, making it difficult for companies to accurately measure and report their Scope 3 emissions and meet their sustainability objectives.?

The financial risks of unmanaged and under-managed value chain emissions are significant. Companies that fail to address these risks in the near future face up to $120 billion in costs related to hidden environmental risks in their supply chains. However, many manufacturers still struggle to reliably monitor emissions across supply chains hindering their ability to meet sustainability goals.? As a result, manufacturers need to focus on emission traceability, energy efficiency, waste management, green sourcing, and natural resource conservation.?

Addressing these challenges is crucial for manufacturers striving to improve their sustainability efforts and Scope 3 emission targets.?

TCS Intelligent Urban Exchange?

TCS developed TCS Intelligent Urban Exchange? for sustainability designed specifically for that purpose.? This powerful sustainability product leverages AI, machine learning, and big-data analytics to provide a comprehensive view of emissions across the entire manufacturing ecosystem. The platform helps manufacturers automate data collection, generate emissions reports, and identify opportunities for emission reductions. TCS Intelligent Urban Exchange?also offers advanced simulation and what-if analysis capabilities, allowing companies to model the impact of potential changes and optimize their sustainability efforts.?

This innovative solution enables crucial capabilities such as digital spine emission computation, sustainability twin modelling, climate action transition, and physical risk mitigation. They also enhance decision-making, planning, and reporting across the entire value chain, empowering manufacturers to navigate the complexities of sustainability with greater precision.?

In addition to supporting manufacturers, TCS Intelligent Urban Exchange extends its sustainability capabilities to smart cities, offering solutions for intelligent transport, energy, and water management. By integrating sustainability across industries and government initiatives, the solution empowers organizations to reduce their carbon footprint and accelerate their net-zero journey.?

As global bodies like the UN and Paris Climate Accords push for stricter carbon targets, innovative technologies like TCS Intelligent Urban Exchange?will be indispensable in helping manufacturers and governments meet their sustainability goals.?

Conclusion

As manufacturing organizations work to rebuild trust with stakeholders, customers, and employees by advancing their net-zero goals, leveraging cutting-edge technology will be essential to drive progress. Innovative solutions like TCS Intelligent Urban Exchange? for sustainability are leading the way, offering comprehensive capabilities such as digital spine emission tracking, sustainability twin technology, climate action transition, and physical risk mitigation. These tools enable enhanced decision-making, planning, and reporting across entire value chains.?

Learn More:

Visit the TCS Intelligent Urban Exchange? page on https://www.tcs.com

Email Us: [email protected]

About TCS Intelligent Urban Exchange?

TCS Intelligent Urban Exchange? is an enterprise software solution from TCS. It is an advanced AI and ML powered solution that delivers comprehensive insights, recommendations, and metrics for sustainable, environmentally clean organizational and value chain operations. The aggregate system-wide impact of TCS Intelligent Urban Exchange for sustainability results in substantial emissions reduction, cost savings, and resource conservation. while also advancing corporate environment stewardship, compliance, and social responsibility.?

About Tata Consultancy Services (TCS)

Tata Consultancy Services is an IT services, consulting and business solutions organization that has been partnering with many of the world’s largest businesses in their transformation journeys for over 56 years. Its consulting-led, cognitive powered, portfolio of business, technology and engineering services and solutions is delivered through its unique Location Independent Agile? delivery model, recognized as a benchmark of excellence in software development. A part of the Tata group, India's largest multinational business group, TCS has over 601,000 of the world’s best-trained consultants in 55 countries. The company generated consolidated revenues of US $29 billion in the fiscal year ended March 31, 2024, and is listed on the BSE and the NSE in India. TCS' proactive stance on climate change and award-winning work with communities across the world have earned it a place in leading sustainability indices such as the MSCI Global Sustainability Index and the FTSE4Good Emerging Index. For more information, visit www.tcs.com

About the Author:

Doug Tinning is the Director of Product Marketing for the TCS Intelligent Urban Exchange solution suite at Tata Consultancy Services.? Doug has held technical training, sales, and product marketing roles in technology companies from startups to Fortune 50 organizations.