What is green manufacturing?

5 July 2024

Authors

Julie Rogers

Writer

Alice Gomstyn

IBM Content Contributor

Alexandra Jonker

Editorial Content Lead

What is green manufacturing?

Green manufacturing, also called sustainable manufacturing or green production, is the creation of products in a way that reduces the overall carbon footprint of the manufacturing process. Green manufacturing minimizes negative environmental impacts while conserving energy and natural resources.

Green manufacturing practices include using technology to maximize operational efficiency, using renewable energy sources, sourcing sustainable materials, and protecting natural areas and ecosystems. Such environmentally friendly practices not only improve manufacturing sustainability but also provide business benefits such as cost savings, regulatory compliance, improved reputation and greater safety for both consumers and employees.

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Why is green manufacturing important?

The manufacturing sector touches almost all other industries, including construction, transportation and retail. However, the size of its carbon footprint matches its sizeable economic impact. Manufacturing and production are responsible for about one-fifth of the world’s carbon emissions, which is a leading cause of climate change. It also uses more than half of the world’s energy sources.1 Green manufacturing can help make the sector more sustainable by reducing energy and natural resource usage.

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Green manufacturing practices

Organizations can implement sustainable practices in various ways:

Use renewable energy

Choosing renewable energy sources to power production reduces emissions throughout production processes. Energy from renewable sources, such as wind, solar, geothermal or hydropower, power green manufacturing plants.

Reduce energy use

Manufacturers can use different strategies to reduce overall energy use and boost energy efficiency. For example, green manufacturers use efficient equipment alternatives, such as installing smart LED lighting or insulation, to reduce usage and save on energy costs. Energy management programs use tracking software to monitor energy consumption and predict future energy use.

Use lean manufacturing and green technology

Lean manufacturing is a method of production that emphasizes efficiency and waste reduction. Green technologies, which are technologies that reduce an industry’s impact on the environment, can support lean manufacturing. For instance, smart factories are equipped with data-collecting sensors and analytics software that can provide key insights on preventing equipment breakdowns, inventory management and general ways to streamline production.

Source sustainable materials

To further reduce carbon footprints, companies can produce sustainable products by using eco-friendly resources, such as non-toxic or plant-based raw materials. Packaging is also an opportunity to use responsibly sourced materials, such as recycled or repurposed paper instead of pulp made from virgin wood chips.

Design for the full product lifecycle

Manufacturers can also reduce waste by designing products for reuse, recycling or end-of-lifecycle composting. This approach lowers both cost and emissions during waste disposal and keeps usable resources out of landfills.

Run supply chain management

Supply chain management is another aspect of green manufacturing. Increasing transparency along the supply chain allows organizations to source more sustainable materials and components to optimize sustainability from design to delivery. A more visible supply chain also has business benefits, improving reliability and lowering delivery times while creating better real-time forecasting, which leads to better inventory management.

Protect natural areas

Because manufacturing is a heavy industry, it often comes at the expense of surrounding natural areas. Green manufacturing companies commit to protecting the natural environment through natural resource, wildlife and biodiversity conservation. Land management is also a consideration when preserving local ecosystems, especially soil and health.

Business benefits of green manufacturing

While “greening” the manufacturing industry is important to environmental efforts and reducing the effects of global warming, there is also a business case for sustainability. Green manufacturing processes can help organizations run more productive operations, improve the bottom line and increase overall competitiveness. Other benefits include:

Achieve cost savings

Businesses that enact environmentally friendly manufacturing practices see a competitive advantage through cost savings. Savings stem from lower utility bills through reduced energy use and improved operational efficiency. In addition, green manufacturing methods produce less waste, which saves companies money on both raw materials and waste disposal.

Facilitate compliance

Green manufacturing business practices can help organizations meet environmental, social and governance (ESG) goals or local environmental standards. Sustainable plants are in a better position to be compliant with industrial regulations.

Improve reputation

Today’s consumers and company stakeholders are increasingly sustainability-minded and aware of the impact of heavy industry on the environment. Efforts to protect the planet increase public trust, improve a company’s public relations and can help with employee recruitment.

Improve sales

The increase in sustainability-minded consumers means that environmental standards are often a factor in purchasing decisions. Green manufacturing can help a company reach a new, eco-conscious customer base that is looking for eco-friendly products or items made with sustainable materials.

Enhance safety

Manufacturing safer products for consumers, such as by using non-toxic materials or green cleaning products, creates a safer environment for the employees who manufacture them. For example, replacing a synthetic material with a natural one reduces employees’ exposure to hazardous materials and production byproducts.

Examples of green manufacturing

Many organizations are adopting green manufacturing processes:

US Department of the Interior Bureau of Land Management

The US Department of the Interior Bureau of Land Management (BLM) implemented new technology to make energy-efficiency improvements at rural BLM sites. Through an energy savings performance initiative, the USD 3.6 million investment covered small-size facilities in six western American states. In addition to energy savings, the project resulted in the reduction of carbon emissions by nearly 4 million pounds per year.2

DELMIA Apriso Solution

Designed by Dassault Systèmes, a French software company, the DELMIA Apriso Solution helps manufacturers transform their global production lines by virtually modeling the factory floor. By optimizing manufacturing processes, the solution enables carbon savings by reducing energy consumption and scrap waste.3

Thai Beverage Can Limited

Thai Beverage Can Limited (TBC) uses several green manufacturing practices throughout its production process, including sustainable sourcing and reducing energy use. TBC sources the aluminum for its cans from providers certified as meeting third-party sustainability standards. The company has also improved its machines to reduce the use of electricity and natural gas in the canning process by 15%.4

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    Footnotes

    "Reducing the carbon footprint of the manufacturing industry through data sharing", World Economic Forum, 23 March 2022.

    "Bureau of Land Management: A Successful ESPC Across Six States", Federal Energy Management Program, July 2011.

    "EGDC Case Study: Dassault 3DS DELMIA" , European Green Digital Coalition, April 2024.

    "Product Stewardship", Thai Beverage Can Limited, accessed 26 June 2024.