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The industrial sector, which includes manufacturing industries and its supply chains, contributes nearly 30% of global greenhouse gas (GHG) emissions. This makes it vital to achieve net-zero carbon emissions by 2050. As a result, Environmental, Social, and Governance (ESG) factors and sustainability have become crucial for the global manufacturing sector.

 

As a key player in the world economy with an extensive array of partners, reducing carbon emissions in industrial manufacturing is a complex task. Shifting to net-zero emissions is not only an environmental necessity but also essential for the industry’s lasting viability and growth. 

This requires a complete reevaluation and reorganization of strategies to leverage the renewable energy market and address various emission scopes, all while navigating economic, technical, and structural challenges.

Understanding emissions

To address the challenge of achieving net-zero emissions, it is essential to understand the different scopes involved.

• Scope 1 emissions

These GHG emissions are the simplest to control and manage because they are directly produced by an organization’s in-house sources. Examples include emissions from fuel combustion in company-owned vehicles, on-site industrial equipment, and chemical production processes— covering all emissions directly tied to an organization's operations.

To reduce these emissions, companies can improve operational efficiency by maximizing energy use, avoiding excess water consumption, and lowering transportation emissions. Collaborating with service providers specializing in maintenance, repair, and operations (MRO) that highlight sustainability in their products and services is also vital for manufacturers working toward global acceptance and net-zero goals.

• Scope 2 emissions

These indirect greenhouse gas emissions are linked to the electricity, heat, or steam purchased and consumed by an organization, making them critical environmental indicators of a company's carbon footprint. These emissions arise during the generation of purchased energy, such as emissions from coal-fired power plants supplying grid electricity.

To mitigate Scope 2 emissions, organizations can focus on improving energy efficiency by implementing energy-saving technologies and optimizing systems. Transitioning to renewable energy sources also serves as an effective strategy.

• Scope 3 emissions

These emissions arise from a company's value chain activities, both upstream and downstream. They often represent the largest portion (about 60 to 90%) of a company’s carbon footprint. Examples include emissions from purchased goods, employee commuting, waste disposal, and the use of sold products, particularly in manufacturing markets.

To address these, organizations can focus on collaborating with suppliers to improve sustainability practices and conducting environmental tests to assess their impact. Additionally, adopting sustainable product design and development and circular economy practices, such as recycling, can significantly lower these emissions across the value chain.

Types of net-zero goals

When establishing your business’s path to achieving net-zero emissions, two key types of goals are essential: science-based targets and emissions reduction goals.

• Science-based targets (SBTs)

SBTs are measurable pledges established through the SBTi Corporate Net-zero standard to decrease GHG emissions in line with climate science needed to achieve the Paris Agreement goal, which is capping global warming at 1.5°C above pre-industrial temperatures. SBTs are customized outcomes that differ per company based on operations and goal ambition. SBTs signify a sustained dedication to reducing emissions.

A key requirement for most sectors under the Science Based Targets Initiative (SBTi) is a minimum 90% decrease in emissions. This structure guarantees targets are sufficiently ambitious to mitigate the severe impacts of climate change based on the latest scientific findings.

• Emission reduction goals

Emission reduction goals represent a commitment to actions that lead to measurable cuts in GHG emissions. Typically, these goals are tied to the industries’ specific activities, such as manufacturing technologies, products, and services. Such targets are often realized through reduced resource consumption, improved efficiency, or lowering the emissions intensity of a process.

Emission reduction goals frequently serve as incremental milestones, vital for generating early progress and momentum. They allow organizations to prioritize and implement targeted initiatives that directly support the broader aim of meeting SBTs. By setting and achieving shorter-term goals, entities can build a solid foundation for long-term climate commitments aligned with scientific pathways for sustainability.

To summarize, emission reduction goals support SBTs, working together like tactics to support a larger plan. In this analogy, SBTs represent the main approach, while emission reduction goals serve as practical steps to fulfill that approach, ensuring alignment with long-term climate objectives.

Creating impactful net-zero goals and targets for your organization

Establishing clear net-zero goals is essential for businesses in the industrial market. One effective way to do this is to use the SMART (specific, measurable, achievable, relevant, timely) goal-setting process.

• Specific

Convert your reduction goals into actionable steps across your organization. Develop a detailed action plan outlining targeted initiatives, designated responsibilities, deadlines, and assigned resources. Dividing goals into smaller, manageable tasks facilitates ongoing progress monitoring, allowing for necessary adjustments as challenges arise.

• Measurable

Assessing and tracking progress on your goals is crucial. Establish an internal tracking and reporting system to evaluate your reduction targets. Continuously examine data, assess key performance metrics, and determine initiative effectiveness. Consistent updates to salient parties ensure transparency, promote accountability and facilitate necessary adjustments when needed.

• Achievable

Involving employees, clients, and partners cultivates a collective sense of accountability, enhancing the chances of reaching your reduction targets. Actively seek input, organize workshops, and engage in collaboration with stakeholders to create a holistic and inclusive strategy that fosters commitment and alignment across all levels of your organization.

• Relevant

Ensure your reduction targets are in harmony with your organization's carbon footprint. These goals should concentrate on the most substantial ecological effects and support your overarching sustainability objectives. Identifying your emission sources enables you to formulate targeted actions for effectively lowering emissions in these crucial areas.

• Timely

Establish a deadline for achieving your sustainability targets, ideally within the next reporting cycle. You can choose your schedule, completing objectives earlier or spreading them out over the year. Time-sensitive goals instill a feeling of urgency and provide a framework for effectively evaluating progress.

Achieving net zero is a comprehensive journey that requires commitment, strategic planning, and collaboration across all business levels. By setting clear, measurable goals, engaging stakeholders, and continuously monitoring progress, businesses can drive meaningful change for the environment and manufacturing industry.

As one of the Top 20 EMS companies in the world, IMI has over 40 years of experience in providing electronics manufacturing and technology solutions. 

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