Strategies to align your business to be ESG Compliant

Clean and Green, From Start to Finish

It does not take a lot of controversy for your factory to be in the centre of a PR nightmare. A sure-fire way to avoid possible issues is to keep ESG concerns in mind as you set up your manufacturing operations, so that it can be as ethical as possible from the beginning to the end.

There have been many cases where companies were heavily criticised and gained a negative reputation as a result of not complying with ESG regulations. From the environmental aspect, certain companies were called out for their hefty build-up of carbon emissions and deforestation in their manufacturing practices. As for the social aspect, some companies were under fire for exploiting their workers, subjecting them to various human rights abuses such as inhumane working conditions and forced labour. So, to avoid these ethical issues, manufacturers need a trusted technology to help them comply with ESG regulations. The best way to start is by adopting a holistic approach that combines subject matter expertise with information engineering platforms that automate the data collection and analysis for sustainability disclosures.

Joining the Dots Between Sustainability and Connected Manufacturing

Imagine having all your machines connected for a more green and streamlined manufacturing process. That’s a key feature of connected manufacturing, which ultimately aims to reduce physical waste. This in turn lessens your company’s environmental impact. But how it does that is through integrating Enterprise Resource Planning (ERP), Manufacturing Execution Systems (MES), cloud and edge computing, and the Internet of Things (IoT) to drive intelligent communication, automation, and control of manufacturing processes. This way, collecting data from your connected machinery makes complying with ESG regulations much easier, and from the top brass to the factory floor, every level of your organisation will benefit from this digitising of your manufacturing process. Now all you need to kickstart connected manufacturing, is to get the right technology from the right vendors so you ultimately can effectively collect data generated from your machines.

“Tech”-perts to Your Rescue

The technology that vendors provide automises data collection to help your ESG reporting by providing traceability and visibility. NEC for instance, specialises in supplying the technology for manufacturing processes, improving their environmental sustainability from supply chain practices to waste generation to energy consumption. We can also Other vendors assist you in the social part of ESG compliance in achieving better workplace safety and security for your workers and factory. In terms of governance, we use robotics and automation to improve efficiency and ensure compliance with proper procedures across all operations and processes. Aside from manufacturing itself, even compliance reporting can be automated to minimise the risk of errors and ensure ESG obligations are met.?

Help the Planet, Help Your Business

Being able to respond to ESG concerns via state-of-the-art technology allows you to reduce ESG-related operational risks that could compromise your company, which then improves your brand equity and goodwill in the eyes of consumers. But sticking to ESG obligations benefits your company beyond public image because sustainable business operations result in higher quality earnings, leading to an increase in demand from institutional investors. Also, companies with ESG investments trade at higher valuation multiples, and get higher shareholder returns & profitability.?

One Step Away From Digitisation

If your goal is to make your factory clean and green, join the upcoming FMM talk, Technology For Sustainability: Necessity for Tomorrow on 18 January 2024 to learn more about sustainable manufacturing for your organisation.?

In this talk, you will gain insight on the importance of ESG in risk management, business benefits gained from ESG practices, strategies for cultivating tech-driven sustainability in manufacturing operations, exploring the contribution of AI in improving workers’ wellness, and leasing opportunities for sustainability and technology initiatives. You will also get to meet experts ESG consultants and leasing companies to help you take the big leap toward sustainable manufacturing.?

Aside from them, you will also get to know technology providers who can help make your digital transformation a reality, such as NEC. We have been in the forefront of innovation in the ICT industry for 124 years, and work with various professional teams and trusted partners to help clients have sustainable businesses.?

With all these representatives present, you can find out how to make connected manufacturing work for your organisation. Sign up to join us at https://technologyforsustainabilitytomorrowsnecessitysns.gr8.com/ today!

This article has been contributed to by Kenny Fong, Solution Specialist - Manufacturing, Digital Solutions Business Unit, NEC Corporation of Malaysia.