It takes more than lofty environmental, social, and governance (ESG) goals to create a plan for how factories can—and should—operate sustainably. Consider, for example, Interface. The Atlanta, Georgia-based manufacturer of commercial flooring developed a pilot program in 2018 that mimics the operations and processes of a high-performing natural ecosystem. Dubbed “Factory as a Forest,” the project explores new practices that allow its factories “to run like ecosystems.” The company’s vision, as described in a case study, has the factory not only developing products that sequester carbon (thus reducing emissions) but also assessing how much the carbon and rainwater the company’s property should absorb to sustain the surrounding landscape.

That’s a stark departure from the types of factories known for belching carbon monoxide into the atmosphere and polluting drinking water with toxic runoff. The industry sector (which includes manufacturers) accounts for 23% of greenhouse gas emissions, according to a 2021 report from the U.S. Environmental Protection Agency. These emissions primarily come from the burning of fossil fuels for energy and the chemical reactions that occur when producing goods from raw materials.

Yet as Interface’s pilot project suggests, factories can operate in a sustainable way by using nature as a model. It’s clear that net zero emissions – or better yet, a regenerative state in which business operations contribute to repairing the climate and environment – is an aspirational goal today. Indeed, you won’t be net zero or regenerative tomorrow. But the evolution of manufacturing processes and technology provides the opportunity to think differently about sustainable factory operations. Thinking big helps you move in the right direction with each decision today.

Future factories may be much smaller than today’s, with more active means of capturing rainwater and wastewater for reuse. They are likely to deploy Powerwall-style rechargeable energy storage system to operate and include carbon sequestration (whether built into the structure, or even their products). Tackling these moves and preparing for a future where even more will be possible, has the potential to turn factories into a force for environmental repair.

1. Cut emissions faster with Internet of Things (IoT) data.

Despite all the pledges, press releases, and new logos featuring the color green, in 2022 industrial emissions rose. Again. In fact, global carbon dioxide emissions from energy combustion and industrial processes grew 0.9% (by 321 megatons) in 2022, reaching a new all-time high of 36.8 gigatons, according to the International Energy Agency.

It makes sense then, that manufacturers would look first to their energy usage and other production processes to identify opportunities for energy reduction. For instance, by regularly cleaning and monitoring factory equipment, organizations can prevent unnecessary temperature rises inside factories, which can lead to increases in energy consumption. Keeping equipment such as motors well-maintained can reduce energy consumption by up to 7%, according to Yu Energy, a UK-based energy and water supplier.

Internet-of-Things sensors can help manufacturers collect energy consumption data and link this information to specific production processes and issues—from a malfunctioning motor to a leak in industrial equipment, potential sources of direct carbon emissions.

Tracking data and acting on it can make an important difference, says Trond Undheim, a research scholar in global systemic risk, innovation, and policy at Stanford University. “The real benefit they have is the ability to act on real-time information. That is the game changer. Some of that you can accomplish with shop floor apps. They’re simple digital apps that you can plug in or add new sensors on top of machines,” Undheim says.

2. Store carbon – and use it as a resource.

Carbon capture and sequestration methods promise to support sustainable factory operations by preventing emissions from entering the atmosphere. The process compresses CO₂ at its production site and then transports it to be reused or buried deep underground.

It’s early days for such implementations. As of July 2023, there were only about 40 commercial facilities applying carbon capture, utilization, and storage (CCUS) technologies to industrial processes, fuel transformation, and power generation, according to the International Energy Agency.

There are also corporate decision-makers rethinking what it means to capture carbon. For example, Interface, mentioned above, is exploring ways to use carbon as a resource. This would allow the manufacturer to move beyond net zero to becoming carbon negative, effectively storing more carbon than the manufacturer emits across all its operations and supply chain. For example, Interface created net-carbon negative carpet tiles that use recycled materials and bio-based additives to store carbon, preventing its release into the atmosphere.

3. Advanced ways to reduce waste.

With over 2 billion tons of solid waste produced globally every year (from all sources, according to the World Bank), manufacturers have an important role to play in transforming the way they produce goods and run operations. Modifying manufacturing processes and equipment can reduce such waste. For example, precision-guided spray-painting machines that use radio frequency identification (RFID) tracking helps an auto parts maker use less paint in its production processes (a use case cited by the U.S. EPA).

That’s a practical step that’s available right now. To reach carbon-neutral, zero-emission goals, waste reduction activities must extend beyond modifying manufacturing processes. It means building new factories that include waste-limiting practices in their design and construction.

Consider, for example, Siemens’ Digital Native Factory. Opened in 2022, the 73,000-square-meter factory in Nanjing, China, was planned completely digitally using digital twins. The same goes for designing production processes, so that both the building and the manufacturing processes could be optimized in the digital world before actual construction began. In addition to using fewer building materials, energy saving moves include automatic LED lighting; high-efficiency pumps, fans, and cooling systems; and a photovoltaic system, all estimated to reduce carbon emissions by an estimated 3,300 tons per year.

Improvements in performance and efficiency were also made possible by combining factory data, production line data, performance data, and building information to create a digital twin of the new factory. The company notes that by improving the flow and layout of the factory using digital twins and simulations, it could improve the movement of materials and employees. It also led the company to use 40% less space to produce the same output as their old factory.

That’s a promising set of metrics for today. Looking forward, Undheim, the global risk research scholar, predicts a day when factories won’t be constructed from bricks and mortar but rather will take shape using biological building blocks. “The factory of the future is not a building anymore,” says Undheim. “That’s an industrial paradigm. You have to throw that whole idea of it being a physical building out the window. I don’t think a physical building in that sense can ever be sustainable. We’re talking about biological processes—synthetic biology as building blocks.”

One way to think about this is the example of Ginkgo Bioworks, a Boston-based company that develops bioengineered products by programming cells. Applications of its technology for waste reduction include “engineer[ing] strains that convert waste streams into fuels, feeds, chemicals, and materials,” and “design[ing] microbes with metabolic pathways that degrade and recycle plastics,” the company notes. One of its customers, a maker of blue jeans, plans to use the technology to produce sustainable clothing dyes.

Additive manufacturing (industrial-scale 3D printing) can also reduce waste by requiring the exact amount of material needed to create a part or product. And because parts are made layer by layer, additive manufacturing generates less wasted material than traditional manufacturing processes, such as milling or laser cutting.

But while additive manufacturing “only uses whatever it takes to mold the product,” Undheim adds that these products often consist of non-biodegradable materials, such as plastics.

“3D models are great, but the challenge is what material is being used,” he says. “The early generative additive uses the same plastics that we all use. As a result, 3D-printing and any additive material process needs to go through the same conscious thinking in terms of sustainability as any other production item.”

4. Go beyond solar.

Solar power may be a growing factor in a cleaner energy diet—the International Energy Agency projects sun-powered energy to surpass coal-generated by 2027—but manufacturers in the future will require more audacious moves to reach their sustainability goals.

Tesla is a notable example: as of the end of 2022, the electric vehicle manufacturer had installed 32,400 kW of solar panels on its factory roofs. The company’s goal is for its factories to eventually become entirely energy self-reliant. But there’s more to reaching that goal. Low-emissivity windows, which have coated glass designed to minimize the amount of infrared and ultraviolet light that comes through, also help to reduce building heating and cooling demand.

Looking to the future, green hydrogen—generated by renewable energy sources—promises to replace fossil fuels as a powerful energy source. Today, almost all the world’s hydrogen is produced from coal or natural gas. Green hydrogen, on the other hand, can be generated out of water with electrolysis, using renewable energy derived from solar and wind power. Use cases for green hydrogen include iron and steel production, which currently account for 6.1% of global emissions, according to a Visual Capitalist report.

Innovations in battery power also hold promise. Lithium-sulfur batteries, for example, have the potential to store more energy than the lithium-ion batteries used in laptops and electric vehicles, as GreenBiz notes. Some companies are even discovering ways to eliminate batteries as a power source altogether. The startup Everactive has developed battery-less IoT sensors, powered by “low levels of harvested energy from the surrounding environment.” Self-powering these proliferating devices (there were an estimated 14.3 billion active IoT endpoints in 2022, according to IoT Analytics) could improve power conservation for factories equipped with them.

5. Water: reduce what’s used, recycle waste.

With water reserves becoming more insecure due to droughts and other shifting water patterns, many organizations are exploring ways to improve water sustainability. For example, Boston-based startup Gradiant has been working with semiconductor plants to recycle their wastewater for reuse. Semiconductor manufacturing relies on vast volumes of water for a variety of tasks, including the process of turning raw silicon wafers into integrated circuits, as well as cooling, scrubbing, and fire suppression. Using technology based on a technique known as counterflow reverse osmosis (CFRO), Gradient aims to recycle 98% of the water used by semiconductor manufacturers.

It’s not just electronics factories that use water, of course. Baker & Baker, a UK-based manufacturer of bakery products, is making leak detection a key part of its strategy for reducing water waste. Other initiatives under consideration include reducing the amount of water used to clean equipment, identifying water risk hotspots in its global supply chain, and increasing water reuse where possible, Green Business Journal reports.

Interface is another manufacturer that has taken steps to reduce water waste. Initial measures include planting native trees to absorb water and installing a rainwater catchment system with four large tanks that hold up to 200,000 gallons of water for reuse on site. However, Interface is already exploring more regenerative outcomes such as capturing rainwater for non-potable uses (such as in toilets or cooling towers) to reduce the consumption of municipal water; installing high-efficiency icemakers and water fountains in factories; and upgrading plumbing fixtures.

Digital twin technology also can help companies reduce water usage and waste by using a digital model to assess resource use and analyze ways to make it more efficient. “If you can model and figure out what is the impact going to be on water, which is one of the biggest impacts that a factory site has on the environment, that would be a big change,” says Undheim.

6. Realize: adaptation is a never-ending mission.

From battery-less sensors to lithium-sulfur batteries, technology is a leading force for sustainable manufacturing. But focusing on the future also means accounting for inevitable yet unforeseen adjustments.

That means building assumptions into factory designs that leave room for change.

“There are always changes, there are always advances, there is always new technology or some modification you need to make over the years,” says Nabil Nasr, a director at the Golisano Institute for Sustainability in Rochester, New York. “Having a facility survive and adapt to all of those changes, without having to pay a big cost penalty for making those changes, is really one of the biggest challenges.”

Undheim advocates for smaller facility footprints as a way of ensuring a factory’s managers can adapt to changing requirements. “Many of the factories of the future should be much smaller,” says Undheim. “The smaller the footprint, the easier it is to return it to a natural state. The regenerative principle is to return things better than before. The larger the scale, the more steel and carbon you are using and the more difficult it becomes to disassemble. Regeneration is all about disassembly, leaving no trace, actually leaving it better.”

But factories have a long way to go before regeneration can occur. Says Undheim: “Regeneration is this aspirational goal where you’re trying to, by some metrics, restore the natural habitat that you actually put your factory footprint on top of.” Although challenging, inspiring examples of progress abound.

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