How Industry 4.0 Can Help Manufacturers Reduce Carbon Emissions

When the CEOs of some of the most famous manufacturing companies in the world signed up to an open letter calling on world leaders to do more to address climate change, it perhaps came as no surprise. Manufacturers are under greater scrutiny for their environmental and social policies than ever before.

The letter, which included more than 90 signatories from companies like Ikea, Nestle, Unilever, PepsiCo, Tata Steel, Tetra Pak committed to reduce emissions by more than 1Gt* annually by 2030. It called on world leaders to eliminate fossil fuel subsidies and a range of other measures to help businesses “accelerate emission reductions, scale up innovations and achieve a net-zero world by 2050.”

Consumers are increasingly demanding sustainable products and many businesses are now looking at a company’s ESG standards when negotiating supplier and partnership deals. As governments consider changes to regulations, taxes and incentives to help meet their carbon targets, it makes good business sense for manufacturers to get ahead of the curve and reduce their emissions.

The market is paying attention. The value of ESG exchange-traded funds rose to over $120B in 2020, more than doubling in the last few years.

“ESG is not some tree-hugging, ephemeral, loss-making charitable thing. It’s a real thing that most generations, particularly younger generations, believe in with their heads, hearts and wallets,” writes Chris Skinner, financial technology expert on his blog.

Globally, industry contributes approximately 21% of global greenhouse gas emissions, according to the EPA. Most of those emissions come from fossils fuels burned on site for energy. That total excludes emissions from industrial electricity use.

That means that there is a lot of benefit to be gained if manufacturers are able to reduce their carbon emissions. Even small improvements multiplied globally can have huge impacts.

The need for greater sustainability efforts comes as the manufacturing industry undergoes an extensive transformation. Key machines and processes are being digitally connected via cloud computing and other technologies. The result is a radical shift in manufacturing operations – and one that can help manufacturers reduce carbon emissions and meet their sustainability goals.

#1: IIOT and Data Analytics improve asset maintenance and longevity

Machines wear out eventually. That has a huge cost in terms of capital expenditure, production down time, and the environment as the inputs that go into creating those machines also produce carbon emissions and waste products.

Manufacturers have invested heavily in IIOT sensors over the last decade. Now, with cloud computing and new tools to provide sophisticated data analysis, the information coming in off machines equipment allows manufacturers to improve asset maintenance and extend their life span.

#2: Digital twins identify ways to remove waste and energy consumption from key processes

All this machine data allows companies to create virtual representations – “digital twins” - of key assets, processes, and facilities. Digital twins help companies identify and manage potential inefficiencies throughout the value chain.

For instance, 5G network supplier Ericsson has implemented technologies that monitor energy usage in its smart factory in Texas. That has helped it “cut energy use by 24%, indoor water use by 75% and 97% in carbon emissions compared to similar operations that don’t use the technology,” the company says.

#3 Robotic Automation optimizes energy and materials consumption

Robots allow tedious, time consuming work to be automated. As robots have a precision that humans cannot replicate, optimal operating parameters may be identified and perfected allowing manufacturers to improve quality and reduce material loss in their processes. Another advantage of robots is that they do not require light or heat to carry out tasks, which allows facilities to reduce their electricity and energy consumption.

These technologies have been widely explored for their ability to improve process efficiency, throughput, quality and innovation. But now manufacturers can look at how they help support sustainability goals.

“We’re not just trying to incrementally change manufacturing, we’re probably going to shift the face of what manufacturing looks like over the next decade,” says Rosa Coblen, Stratasys VP of Sustainability in an interview with TCT Mag. “So do it with a deep thought process about the people around you in the room, in the innovation process, the communities you serve, your customers and their needs.”