Sustainable manufacturing keys to success
Taking sustainability further with technology
Why is sustainable manufacturing important?
For Sandvik Manufacturing Solutions, sustainability is about examining the entire production process, doing more with less to simplify the process, and have traceability. To meet global and local policy demands, shifting to a more sustainable journey moves our innovation north star forward.
How to calculate carbon?
The common sustainability challenges all manufacturers face are carbon management and getting the carbon calculation right.
We are all familiar with the saying – what gets measured gets managed – and luckily, digital solutions have emerged as the beacon of hope.
According to a report by the World Economic Forum, manufacturing and production sectors contribute to nearly one-fifth of global carbon emissions. However, with the integration of digital solutions and connecting data – the carbon footprint can be significantly reduced.
- Energy Efficiency: Digital manufacturing processes have proven to be up to 50% more energy-efficient than conventional methods, as highlighted in a study by the International Energy Agency.
- Waste Reduction: The Ellen MacArthur Foundation reports that transitioning to more digital manufacturing can slash waste generation by 90%, marking a pivotal stride towards a circular economy.
- Resource Optimization: Data-driven manufacturing allows for precise resource allocation, minimizing excess raw material usage. This, in turn, aids in conversing natural resources, as outlined in a study by the Sustainable Manufacturing Institute.
Reducing manufacturing carbon emissions is vital for the environment and climate goals, while important for manufacturers, there are even more benefits of carbon footprint management that extend beyond sustainability.
When effectively accounting and controlling your carbon emissions, you stay compliant with existing legislation and quickly adapt for future policies, reduce waste, and scale efficiencies. You won’t be stopped mid production to comply with regulations because you’ve already done the work.
Another way Sandvik’s digital technologies add value to our customers is the history of already making many of these changes, being recognized allows us to help our customers also make the sustainable shift simpler.
What is the EU carbon tax?
Another initiative that should be mentioned is the EU carbon tax system that imposes a tax on activities that release carbon dioxide into the atmosphere. This includes things like burning fossil fuels (like coal, oil, and gas) and other activities that generate a lot of CO2s. Switzerland and Lichtenstein have the highest tax rates per ton CO2, followed by Sweden.
Sustainable manufacturing example using digital solutions
In the heart of a small town in Sweden, innovation meets industry at Sandvik Coromant’s Gimo plant. A plant that is officially recognized as a lighthouse manufacturer by the World Economic Forum, Sandvik has proven that sustainability can be taken further with technology.
A digital solution example is with CGTech’s, VERICUT Force™ which has brought about great progress toward sustainability efforts for Gimo.
Recently, the Gimo facility achieved sustainability in energy reduction with the benefits of VERICUT Force for analyzing and optimizing cutting conditions during component machining which led to significant savings in both cycle time and energy consumption.
With this software integration per CGTech, “comparing data from before and after VERICUT Force optimization revealed a 0.59 kWh saving per workpiece: a 15.3% reduction.”
VERICUT Force optimization revealed a 15.3% energy reduction per machine.
Even small to medium-sized enterprises can achieve sustainability. For example, let me introduce you to Fårbo Mekaniska, a contract manufacturing company in Fagersta, Sweden, and partner in our Lighthouse Program.
Fårbo has been able to achieve a 5-10% machine energy consumption.
Quantifiable business case for sustainability efforts
Digital solutions are essential for achieving sustainability goals. Customers can use real data from the production line and find emission hotspots.
What are emission hotspots?
Emission hotspots are areas of manufacturing that create the most waste.
For example, an older machine vs a new machine could show a ton of energy waste when you start analyzing energy consumption data. This can help our clients identify and prioritize their sustainability goals.
Why traceability is becoming more important for true sustainability efforts?
Traceability through the entire value chain is becoming another critical aspect to analyze for manufacturers.
From suppliers to the material used, traceability can be achieved by digital technology through for example, sk digital passports.
A digital manufacturing passport ensures ethical transparency and sustainability through the entire supply chain. Our customers are not alone in this quest for sustainability.
Worldwide, businesses recognize digital technologies' potential to meet ambitious environmental goals. The United Nations Industrial Development Organization reported a growing trend, with an increasing number of manufacturers integrating digital solutions to align with global sustainability targets.
Sustainability regulatory initiatives
One important regulation to keep in mind for 2024 is the European Union Corporate Sustainability Reporting (CSRD). This goes into effect this year for large companies and for all listed Small Manufacturing Enterprises (SMEs) the year is 2026.
This will also affect companies in the supply chains who supply components or services to companies in the EU, large and small. They will be requested to report as well since supply chains are covered in CSRD.
Many countries and regions outside of the EU either already have or are developing similar legislation for sustainability and for reducing carbon emission.
At the end of the day with all the sustainability initiatives, regulations, and policies that have already started or will start soon, comes down to, what gets measured gets managed.
Related sustainability articles:
Digital solutions impact circularity and driving sustainability innovations
Success in sustainable manufacturing for small and medium enterprises