The manufacturing industry is at a crossroads where the stakes have never been higher, as it faces mounting pressure to integrate sustainability throughout business practices or face the dire consequences of inaction. As the relentless march of climate change and dwindling natural resources have cast a shadow over traditional manufacturing practices, CEOs must work hard to adopt a sustainable approach throughout their business, pushing through significant challenges like high initial costs, complexities in overhauling supply chains, and adhering to evolving regulatory requirements.
Yet manufacturing leaders that act to adopt innovative strategies will not only enhance efficiency and champion sustainability but ultimately benefit from business growth as they work toward achieving their net-zero targets. According to a recent Gartner survey, 69 per cent of CEOs now view sustainability specifically as a key growth driver, ranked above productivity and efficiency. Kristin Moyer, Distinguished VP Analyst at Gartner, said that sustainability acts as a competitive lever for business leaders and is an increasingly important area for improvement, leading to it remaining one of the top ten business priorities. And we tend to agree.
In manufacturing, we define sustainability as creating products through processes that are economically viable and minimise negative environmental impacts while conserving energy and natural resources.
With the challenges, benefits, and application of sustainability to manufacturing in mind, what is the sustainability state of play in manufacturing, and why is it time for manufacturers to act? There are several reasons why CEOs should act, including the call to action from various parties like governments, climate activists, and consumers to champion sustainable practices.
The heat is on – why CEOs must adopt sustainable practices now
Outside pressure is closing in on manufacturing CEOs to green their practices due to the demands of consumers, stakeholders, employees, and governments, as the sector is known for its high levels of emissions and pollution. According to researchers from the Massachusetts Institute of Technology, the textile industry alone is responsible for approximately five per cent to 10 per cent of global greenhouse gas emissions, surpassing the combined emissions from shipping and aviation. Other top industry offenders include energy, which accounted for over 5 million extra deaths a year due to air pollution from fossil fuel, as reported by BMJ research.
Beyond emissions, CEOs must ensure their business’s reputation remains positive as companies that foster eco-friendly practices are not only attractive to consumers but also to stakeholders reassured by these future-proof initiatives and employees and future job applicants who want their employer to prioritise eco-friendly practices. Additionally, from a profit perspective, PwC reports that consumers are willing to spend an average of 9.7 per cent more on sustainably produced or sourced goods.
As the urgency to address climate change and resource depletion intensifies, CEOs must adopt new technologies, environmental, social, and governance (ESG) frameworks, and strategies to chart a path toward green success while they future-proof operations and their business.
The top 3 sustainable practices CEOs must embrace in 2025:
In the last 10 years, CEOs have revolutionised and improved their manufacturing operations, motivated by stricter regulations, growing environmental and consumer demands, and technological innovations like AI. According to Accenture, the manufacturing sector will experience a productivity growth of 40 per cent or more by 2035. And that’s not all. The World Economic Forum has reported that AI implementation in manufacturing processes can lead to cost reductions of up to 30 per cent.
AI is but one of the top sustainable practices manufacturing leaders must embrace this year. Below, we explore our top three for 2025:
1. AI augments sustainability progress
AI-powered tech can augment success within sustainable manufacturing with digital technologies set to improve productivity to reduce greenhouse gas (GHG) emissions by minimising production downtime. With wirelessly connected factories, real-time monitoring, and advanced analytics using data that can identify inefficiencies in machine settings, energy use and carbon emissions will be reduced.
2. The power of circular economy principles
Integrating circular economy principles like recycling and reusing into manufacturing practices is crucial for reducing raw material consumption and waste sent to landfills. Additionally, designing products for longevity, with durable materials and modular components, encourages a longer product lifecycle.
3. The rise of sustainable tools, sourcing and production methods
Manufacturers can achieve sustainability by not only adopting renewable materials, but also energy-efficient machinery, energy optimisation software, circular manufacturing tools, and smart manufacturing systems.
What success looks like – Adidas enters their sustainable fashion era
While manufacturers face significant challenges in implementing sustainability in their operations, some businesses are leading the way and demonstrating that it is achievable. Adidas demonstrated its commitment to sustainability with its partnership with Finnish company Spinnova, which produces sustainable textile fibres from wood pulp.
Other manufacturers can learn from this partnership that created the adidas TERREX HS1 made with 25 per cent wood-based fibres and 75 per cent organic cotton. This collaboration proves eco-friendly can be fashionable, as Spinnova’s process uses no harmful chemicals and generates minimal waste compared to traditional textile manufacturing methods.
The future of sustainability in manufacturing requires leveraging technology
Despite the challenges mentioned above, manufacturers can apply what they have learned from Adidas’ success to their own businesses. The key takeaway is that success in this area takes time and persistence. In the case of Adidas, this year, nine out of 10 of their products will carry sustainable technology, material, design, or method—a significant feat taking nearly five years, proving that sustainable success is attainable with dedication.
CEOs must chart the path forward with a comprehensive eco-friendly approach to sustainability by integrating cutting-edge technologies, promoting sustainable sourcing and production methods, and, lastly, leveraging frameworks that can assess sustainable maturity to know where to start and improve.
By accurately assessing where your factory and operations must transform, CEOs can create a tailored roadmap to drive their digital transformation and eco-friendly journey. INCIT’s Ақылды индустрияға дайындық индексі can be used to power transformation, taking business operations from ESG offender to defender from the shop floor and beyond. As the first independent digital maturity tool, Smart Industry Readiness Index acts as a global benchmark to empower manufacturers across all industries and sizes to initiate, scale, and sustain their transformation journeys. Көбірек білу үшін about what INCIT is doing to facilitate industrial transformation as we work towards a more sustainable and future-proof manufacturing sector.
