Growing concerns about climate change, its impact on the planet and its resources raises a crucial question: how do we balance industrial growth and economic prosperity with the environmental impact of manufacturing? This extensive research program examines where the manufacturing sector stands today in terms of sustainable operations and how it can accelerate progress.

Our key findings include: Many manufacturers see significant benefits from sustainability.

• Sustainable manufacturing is about a comprehensive 6R approach that covers a range of areas: Reduce, Recycle, Reuse, Recover, Redesign, and Remanufacture.

• More than eight in ten organizations say that they have enhanced their brand reputation and improved their ESG rating; nearly eight in ten saw improved efficiency and productivity and more than half reduced packaging costs and increased sales.

• Reducing waste is the biggest environmental priority for manufacturers (71% of respondents), alongside reducing their emission footprint (62%).

Manufacturers have set high ambitions but only a few are on track to become sustainable manufacturers.

• Organizations aim to achieve significant milestones by 2040: – 91% aim to achieve 100% renewable electricity and 87% aim to be carbon-neutral.

– On average, organizations aim to reduce their plastic usage by 55%, while 94% of organizations expect to achieve zero waste for over two-thirds (68%) of their operations by 2040.

• However, – Just 51% of organizations aim to align target with the goals of the Paris Agreement.

– Only 11% of the sustainability initiatives that are launched are actively being scaled across the organization.

– Only 10% of manufacturers focus on the holistic 6R approach demanded by truly sustainable manufacturing.

Technologies and data are critical to accelerating sustainability agenda.

• More than half of the manufacturers have prioritized the deployment of technologies to meet their sustainability agenda and drive economic growth.

• Automation, followed by AI/machine learning and data analytics are the most widely adopted technologies.

• Innovation, driven by technology and data, will help manufacturers improve sustainability while ensuring profitable growth.

Based on the analysis, we believe there are five best practices for manufacturers: • Align business teams and sustainability executives to explain synergies between performance and sustainability, and anchor the joint agenda.

• Work with customers and suppliers to reduce indirect emissions.

• Build transparency through effective reporting and ensure accountability.

• Incorporate sustainable ways-of-working and operating culture.

• Invest in technology and data-driven innovation to ensure sustainability goes hand in hand with profitability.