The global manufacturing sector plays a crucial role in driving economic growth and development. However, it is also responsible for a significant share of carbon emissions, contributing to climate change. As the world faces the urgent need to reduce greenhouse gas emissions, the concept of “net zero” has gained momentum.
Net zero refers to achieving a balance between the amount of greenhouse gases emitted into the atmosphere and the amount removed from it. It involves reducing emissions as much as possible and offsetting any remaining emissions. Essentially, net zero means achieving carbon neutrality, a state in which a company’s activities within its value chain create no net impact on the climate from carbon emissions.
Why should Manufacturing Industry invest in Net Zero?
The manufacturing sector is a significant contributor to global carbon emissions, accounting for approximately one-fifth of the total emissions worldwide. In India, the manufacturing sector contributes to around 25% of the country’s total greenhouse gas emissions. These emissions primarily come from energy-intensive processes, including the use of fossil fuels for power generation, transportation, and raw material extraction.
As per the Paris Agreement, global emissions need to be reduced by 45% by 2030 and reach net zero by 2050. To reduce carbon emissions, manufacturers can switch to sustainable manufacturing practices. And offsetting remaining emissions often involves investing in projects that remove or reduce carbon dioxide from the atmosphere, such as reforestation or carbon capture technologies.
How to achieve net zero?
To achieve net zero, companies need to measure the emissions and develop a strategy for reducing and eliminating them.
1. Measuring the Emissions –
A starting point to the net zero targets is to find out your company’s current carbon footprint and emissions in the value chain. It is called carbon accounting. This can be grouped into 3
Scope 1– Direct emissions from the company’s own activities.
Scope 2 – Indirect emissions say from the generation of purchased electricity. The energy sector is the source of around 3/4th of greenhouse gas emissions.
Scope 3 – Indirect emissions along the value chain
2. Build a Net-Zero plan –
Once the emissions have been estimated, the next stage is to develop a strategy for reducing and finally eliminating these emissions. Manufacturers can reduce their scope 1 carbon footprint by implementing energy-efficient technologies and practices, such as optimizing production processes, using energy-efficient equipment etc. Scope 2 Carbon emissions like energy can be reduced by slowly shifting from fossil fuels to energy from renewable sources like solar or wind.
3. Sustainable Value Chains –
Collaboration with suppliers and partners is essential to promote sustainable practices throughout the value chain. This includes sourcing raw materials responsibly, reducing waste generation, and promoting circular economy principles. In general, suppliers account for the bulk of a company’s overall carbon footprint. Look for the ones who do carbon accounting transparently, and take steps towards reducing carbon emissions.
It is not enough that you work on this, but be vocal about it as well. Such transparency will gain investor confidence and build trust among the general public. At the same time, it raises awareness for other business owners to run carbon-neutral operations.
Transitioning to net zero is a significant challenge, but it is mandatory to reduce the impact of carbon emissions on the environment. Becoming a greener company not only benefits the environment but also leads to higher valuations and increased financing options, making it clear to investors that your company is growth-focused and future-ready.
At Geekay, we take sustainability seriously and have already made significant strides towards net zero. As a copper and aluminium winding wire manufacturer, we source 40% of our power requirement from solar power, making us a low-carbon winding wire manufacturer. We are also ISO45001 and ISO 14001 certified, and we source our raw materials from suppliers who are working towards net zero targets.
Trust us to be your partner in sustainability and join us in the effort to make a difference. Check out the sustainability practices we have adopted towards net zero on our website.