Five Automated Tech Features for Manufacturers in Managing Climate Compliance

Summary

Across every sector, industrial manufacturers are prioritizing sustainability and aiming for immediate decarbonization. In the U.S., new disclosure rules proposed by the Securities and Exchange Commission (SEC) are pushing public companies to report on climate-related impact in their annual reports—both how climate impacts their operations and how their operations impact the climate. Around the globe, other countries are following suit, forcing manufacturers to take a holistic look at their operations. 
 
However, many organizations, particularly those in heavy carbon-emitting industries like manufacturing, automotive and metals and mining, face significant challenges in measuring and mitigating those impacts due to outdated equipment and technology. To effectively navigate emerging climate regulations, manufacturers should consider upgrading to new, integrated equipment that streamlines reporting, compliance and analysis of environmental performance data, ultimately transforming these activities into value creation. 
 
It’s widely recognized that prioritizing climate and sustainability initiatives is good for business. In fact, McKinsey research has found that reporting on sustainability metrics can positively affect operating profits by as much as 60%. Mandates aside, transparent reporting also aligns with growing consumer demands and investor preferences. More than half of investors plan to increase their funding of sustainable initiatives in the next year, and they’re willing to pay a premium for companies that can show a clear link between their sustainability metrics, financial performance and overall business viability.  
 
Beyond meeting external expectations, reporting on sustainability progress serves as critical intel, enabling executives and investors to assess and mitigate corporate risk more accurately. Some may even gain access to specialized funds and financing options for improving sustainability. This data can also be used to inform contingency plans to mitigate operational disruptions, resource inefficiency and equipment obsolescence, further enhancing resilience. 
 
Despite its value to the organization, quantifying climate-impact has historically posed a challenge for manufacturers. While sustainability touches all aspects of the business, data collection and analysis are typically siloed within departments. This fragmented approach, coupled with a lack of universal key performance indicators (KPIS) and standardized benchmarking has led to variations in reporting across departments, teams and projects.  
 
Adding to the complexity are the metrics that lie beyond companies’ control. Only Scope 1 and 2 Green House Gas (GHG) emissions are owned by the organization, while Scope 3 covers their supply chain, making it much harder to quantify and monitor. It’s no wonder that less than half of professionals are confident in their organization’s ability to gather and report on climate-related financial metrics.  
 
Consequently, this lack of integration makes it difficult for companies to make fully informed decisions and complicates investors’ efforts to compare companies based on sustainability progress, raising valid concerns about greenwashing and the reliability of reported data.  
 
To overcome these challenges, manufacturers should consider the following five actions. These will help streamline data collection and enhance compliance without straining the bottom line or adding more work for operations teams. 

Invest in modern lighting

Installing high-efficiency, industrial-grade LED lighting offers multiple benefits. LED lighting is significantly more energy-efficient than conventional HID sources, consuming up to 75% less electricity per fixture. This can directly support decarbonization efforts starting on the plant floor and drive cost savings. LEDs also last much longer and require far less maintenance, resulting in reduced waste and operational costs.  
 
Modern LED lighting can also be connected to intelligent control systems that track run-time, energy use and lamp hours. This automated data collection and reporting provides real-time sustainability insights in easy-to-use dashboards. It also allows for more proactive, planned maintenance to reduce unexpected production shutdowns or delays simply to change the bulbs. 
 
Manufacturers that upgrade to LED lighting may even qualify for utility rebate programs that “pay back” anticipated energy savings and in some cases, even reimburse the cost of the equipment. Energy efficient lighting solutions also help to future proof a facility against any obsolescence or government regulations that ban older, less efficient and more environmentally damaging fixtures.

Embrace IIoT and advanced controls

It's widely recognized that many devices can be connected to the Industrial Internet of Things (IIoT) and advanced control systems. However, facilities can take further steps by integrating automated operating schedules, occupancy sensors, and daylight harvesting technologies. These measures not only reduce unnecessary energy use but also enable the collection of data on energy savings and carbon emissions. This data allows teams to quantify these savings for executives and investors, helping them demonstrate tangible results and the alignment of efforts with stated objectives. This includes tracking changes in operating expenses, raw material and resource costs, translating saved energy into monetary value, and assessing revenue impacts.  
 
Similarly, air compressors, HVAC systems, and even production equipment can be connected for monitoring and optimizing energy consumption and other climate factors. Just as with lighting, HVAC systems can provide real-time data on energy usage, air quality, temperature, refrigerant usage, and emissions throughout the facility to improve staff safety, comfort and working conditions. 

Leverage PLC integration

It’s easy to track energy savings over time by simply monitoring your energy statements. However, tying your equipment into a Programmable Logic Controller (PLC) lets you use those insights to optimize and automate your energy consumption profile based on the unique needs of the facility. Real-time monitoring equipment can help identify parts of the day, times of year and areas of your facility where teams can introduce automation and AI to adapt schedules of operation and provide alerts of necessary adjustments.  
 
The data then collected from these systems can be reported as progress towards meeting your sustainability KPIs. It can help optimize strategies and guide the path forward, enabling organizations to reach additional sustainability goals.  
 
With PLC integration streamlining the process, time is saved, and the workload required to gather data from across facility operations is reduced, leaving manufacturing teams to work on other value-add projects.  

Upgrade battery technology

Manufacturers can be as much a victim of climate impact as they are an influencer of it, and investing in technology to reduce the risk is essential. Advances in battery technology have made for much lighter weight, lower profile, and more cost-effective systems with built-in battery backup tools that ensure safety and productivity during unexpected power outages.  
 
Some automated, connected battery backup systems and power generators enable manufacturers to better distribute energy during demand and off-peak times, reduce reliance on non-renewable energy and improve grid stability to avoid brown- and black-out shutdowns. 

Use digital twins to forecast needs 

Digital twins provide a real-time digital representation of a material asset in use within the facility, like a machine or piece of process equipment. Digital twins collect the current output of the asset and analyze it alongside historical data to predict future performance.  
 
An air compressor is a great example: with the physical air compressor running and providing data into an algorithm, the system can predict when maintenance or replacement may be required. This enables teams to more proactively plan and perform organized shutdowns, maintenance and progress checks around their own schedule, and leverage this data to make sustainability reporting more automatic. 
 
Collecting and reporting on climate-related objectives and risk is no longer solely the domain of IT professionals and data analysts–it’s a responsibility that extends from the boardroom to the factory floor.  
 
With the growing availability of equipment and fixtures integrated with AI, automation, IIoT and predictive analytics, these tools can reduce the burden of sustainability reporting for manufacturing teams on the ground and provide accurate, reliable empirical evidence of climate-related operational improvements. Through real-time monitoring, continuous data capture and the use of green energy to streamline daily operations, tasks that were once time-consuming and labor-intensive can now be automated, freeing up valuable time for workers to focus on more strategic activities.  
 
By adopting and integrating these technologies, manufacturing teams can enhance efficiency, improve productivity and minimize errors or lapses in reporting. This approach ensures that compliance with regulations and meeting investor expectations does not translate into additional pressure for employees, and instead creates a positive impact on overall operations.