Is digital innovation the key to achieving net-zero targets for manufacturers?

Industrial entities are increasingly utilising digital innovations to expedite their shift towards carbon-neutral operations.

The vast majority of leading industrial organisations have committed to achieving complete sustainability within the next two to three decades, with many already making significant strides towards becoming net-zero carbon entities.

However, as we delve deeper into this journey, the challenges become more pronounced. A recent study by EY - Sustainable Value Study revealed that while initial steps towards net zero have been relatively straightforward for many companies, the path forward requires more strenuous efforts to identify and implement initiatives that will drive further progress.

Yet, there's a silver lining. The pursuit of net zero is intrinsically linked to enhanced operational efficiency and cost reductions.

In essence, practices conducive to net-zero also contribute positively to the financial health of a company. To achieve these dual objectives, a myriad of digital technologies are being employed to facilitate net-zero advancements:

A leading Danish shipping conglomerate has harnessed cloud computing, artificial intelligence (AI), predictive analytics, and sophisticated inventory management techniques to refine its supply chain emissions analysis and achieve a remarkable 10% reduction in fuel usage.
A French global leader in digital automation and energy management is leveraging an array of digital innovations, including automated supply chain solutions, 5G-enabled flexible manufacturing, augmented reality, and digital twins, to enhance operational flexibility and slash energy usage by an impressive 32%.

Choosing the right digital pathway is contingent on your specific business needs. However, it's critical to recognize that the successful adoption of new technologies extends beyond merely implementing new systems.

It also necessitates a comprehensive commitment to multifaceted change management:

Formulate a digitalisation strategy as part of your energy transition agenda. Clearly defining the benefits of digitalisation in relation to energy transition and emissions reduction, alongside establishing specific objectives, timelines, and metrics, will fortify the business case for investment. Elevating investment levels will further support efforts to cultivate a sophisticated digital ecosystem, underpinned by advanced cybersecurity measures.
Eliminate organisational silos. The prevalence of data silos within the industrial manufacturing sector has stifled the effectiveness of data analytics, leading to inefficiencies, escalated costs, and a limited application of digital technologies in facilitating a genuine energy transition. Encourage cross-functional collaboration within your team, guided by well-defined objectives and targets.
Prioritise workforce re-skilling and upskilling. Digitalisation within the context of energy transition necessitates a new suite of skills and competencies across the workforce. Given that not all employees possess the requisite training or experience, seizing the net-zero challenge as an opportunity for re-skilling and upskilling can enhance the overall value proposition and support the transition.

Implemented with careful consideration, digitalisation holds the potential to significantly propel sustainability efforts. By embracing the synergy between digital technologies and sustainability, you can expedite your journey towards achieving your sustainability objectives, thereby unlocking value not only for your company but for the broader ecosystem of stakeholders involved.