The three most effective ways to transform the industrial sector towards sustainability
The three most effective methods in transforming the industrial sector to sustainability
Maybe it will not be surprising if we know that the industrial sector is responsible for about 21% of all carbon emissions around the world, and according to reports, industrial activities – and the burning of fossil fuels that they include – have led to the generation of about 36.8 billion metric tons ofcarbon emissions into the atmosphere during the year 2019, and this is out of a total of 43.1 billion Metric tons of carbon generated by human activities.
Based on the above, it is obvious – when faced with the issue of reducing emissions and its serious consequences of climate change – that the industrial sector should be a top priority. Given the significant impact that its activities produce, and because of the urgent need to gradually convert it to adopting sustainable policies until it eventually reaches “carbon neutrality” or what is known as Net Zero.
But what are the most prominent methods that can be applied to various industries so that they transform into sustainability, as well as bridging the gap between current carbon emissions and returning to the path they should follow, according to what was agreed upon in the Paris Climate Agreement? We answer this question in the following three points.
High-efficiency machines
Consumers across the world are increasingly becoming more interested in purchasing sustainable products than ever before, so companies will need to meet these demands by rethinking the impact of the entire supply chain. The industrial sector is often second or third in the supply chain and therefore vulnerable to societal pressures for sustainability; Therefore, in order to maintain their importance and choice in the commercial supply chain, industrial enterprises must make the machines used for production smarter and better customized. To reduce unnecessary use of resources and reduce waste.
For example –According to the United Nations– companies in the industrial sector – which work on building agricultural machinery in a way that helps facilitate precision agriculture, reduce water use, lighten the load on the soil, and rationalize energy consumption – will create added value and will reserve a place for themselves at the forefront of sustainability and its field.
The efficiency of machines is not limited only to agricultural work, but also includes the manufacture of various products that consumers use daily, especially in the transportation sector. This means producing more sustainable vehicles, from planes and ships to buses and trains; Because of the carbon emissions resulting from these products that are constantly used at the local and global levels, they are a clear cause of climate change.
Companies that invest in climate-friendly and sustainable technologies will be in a position to become global leaders, and thus the rest of the companies operating in the same field will follow in their footsteps. A prominent example of this is: the electric car manufacturer Tesla, which in January 2020 became the most valuable American car company in history, despite being a new company, which highlights the ability and desire of consumers to switch to more environmentally friendly products. Thus encouraging the companies behind these products.
The circular economy and the fourth industrial revolution
According to the global consulting firm Accenture, a broad segment of consumers strongly believe that it is important – or very important – for companies to design products intended for reuse or recycling. In the same vein, the United Nations Industrial Development Organization (UNIDO) describes the circular economy as products “designed for durability and reuse, and raw materials for new products come from recycling old ones.”
In essence, we can consider the circular economy to be the opposite of the linear economy, and this is through the creation of reusable products, which will enable the industrial sector to reduce its environmental footprint and generate increased income, in addition to reducing dependence on virgin resources and reducing the amount of waste.
However, for the circular economy to become a reality, companies must adapt and create innovative businesses and partnerships that take this new approach into account, while integrating Fourth Industrial Revolution technologies with existing industry technology.
The Fourth Industrial Revolution refers to the computerization of manufacturing and the use of a range of new technologies that combine physical, digital and biological aspects. According to researchers, this revolution will affect all economies and industries, and has the potential to significantly improve the efficiency of businesses and institutions, as well as help regenerate the natural environment through better asset management, and perhaps even undo all the damage caused by previous industrial revolutions.
This means that there will be a shift from centralized to decentralized manufacturing and production, and the adoption of autonomous and smart manufacturing solutions, as these solutions – including the Internet of Things (IoT), cloud computing, and 3D printing – will help to do this. These technologies create flexible and highly interoperable industrial processes, and contribute to improving mutual collaboration between departments, partners and vendors. Fundamentally, these technologies have the potential to create a more efficient and sustainable supply chain.
In this context, it is worth noting that an increasingly large segment of consumers have become aware enough to choose sustainable products designed for use or recycled. That is: designed with the circular economy in mind. Industrial companies that build their core business model around this mindset will win over sellers and consumers who are willing to pay for sustainable products.
Reducing the amount of fossil fuels
Fossil fuels contribute – significantly – to carbon emissions, and negatively affect the health of our planet and its inhabitants in the short and long terms. Despite this, it is still the dominant source of energy around the world. The problem – and the opportunity – is that just a few dozen companies are responsible for more than a third of greenhouse gas emissions from fossil fuels, and also responsible for more than a third of greenhouse gas emissions.
Hence, if dozens of these companies – and the entire industrial sector – make sustainability part of their core business, they will have the ability to significantly reduce climate degradation. Moreover, by relying on innovative technologies, these companies can become leaders in renewable energy, or in other long-term, positive-impact business models.
The great tragedy of the climate crisis is that seven and a half billion people must pay the price – in the form of a degraded planet – so that a few dozen companies with harmful environmental interests can continue to make record profits, and it is a major failure of our moral system if we cannot change that.
By increasing the amount of energy used from renewable sources – such as wind, solar, and biomass – the amount of fossil fuels burned will decrease, resulting in fewer Greenhouse Gases (GHGs), effectively reducing climate change.
As vendors adapted to increased consumer awareness, companies began to differentiate between industrial institutions, based on strategies related to sustainability and the extent of their transparency among these institutions. This is with the aim of making companies’ supply chains cleaner, and thus there is a financial incentive and growth opportunity for industrial institutions that work in the field of renewable energy, as well as industrial institutions that truly work to reduce carbon emissions in their production processes.
In conclusion, relying on machines that are highly efficient in using resources, and adopting a circular economy mentality by using Fourth Industrial Revolution technology, in addition to reducing dependence on fossil fuels; Three highly influential ways in which the industrial sector can respond to the growing expectations of the consumer, in addition to contributing – in a tangible way – to the world of sustainability.
