Manufacturing’s Green Journey: AI Is the Answer

Summary

Regulators, investors and consumers are starting to expect (or even require) sustainable practices in every industry, and manufacturing is feeling the pressure. While the EU’s CSRD is officially in effect and setting standards for how EU businesses report their environmental and social impacts, the fate of similar SEC environmental disclosure rules is less clear.
 
However, while the SEC, business groups, and lawmakers work to sort out these laws, manufacturers can still take action on ESG now. The first meaningful step is recognizing that prioritizing sustainability doesn’t mean other business goals become less feasible or important. According to our recent State of Production Health Report, over a quarter (26%) of respondents said their sustainability targets hurt their ability to meet production goals - but this shouldn't be the case. If it is the case, they’re missing out on one key ingredient that harmonizes sustainability and profit targets - AI.  AI can help manufacturers meet endless top goals by decreasing waste and emissions, boosting profit, ensuring worker safety, upskilling and so much more.

 
The three P’s of manufacturing sustainability benefits

While AI can’t magically solve all of manufacturing’s problems, it does serve as a great start for those looking to prioritize sustainability and meet their ESG goals. By leveraging AI-powered solutions, manufacturers will see positive business benefits all around - but only as long as they make the commitment to meeting these goals.

Here are three major areas that will see positive benefits when deploying AI-powered solutions to meet ESG goals:

1. People: The younger generations are becoming more selective with their employers, and they want to work for organizations that share similar values and goals. Putting a more significant focus on ESG goals will likely help attract a new generation of talent and with the onslaught of these sustainable-minded workers, manufacturers are less likely to suffer from labor shortages. Additionally, leveraging AI-powered solutions in sustainability efforts will enforce a new way of working - emphasizing a more intentional use of resources, ensuring increased employee safety and making machines and processes more efficient for the environment.

2. Production: According to the 2022 Eclipse Carbon Optimization report, manufacturing represents around 24% of global carbon emissions. However, AI-powered solutions, when applied to production processes, can result in higher uptime, more efficient energy use and higher yield. This can lead to an emission reduction of about 12% by 2040. AI can provide an overview of production lines, helping manufacturers make informed decisions and in turn, improve their processes.

3. Profit: Contrary to popular opinion, sustainability and profitability go hand in hand. AI-powered machine and process health solutions allow manufacturers to align their KPIs with sustainability goals, with the potential to boost ROI by up to 10 times. However, this can’t be done without a massive mindset change. Manufacturers must view profitability and sustainability as players on the same team, as opposed to competitors.

 
Cleaner manufacturing with AI

One notion reigns true: advanced AI that's purpose-built for industrial environments can help meet ESG targets. However, manufacturers must now understand their business goals, how AI fits into them and identify and implement the right tech. We can create a world where manufacturing contributes less negative impacts to the environment - but also where manufacturing production flourishes - allowing the industry to provide safe and engaging careers with immense growth potential.

Read more about how to improve production health to meet sustainability goals here.