Top 5 Sustainability Trends Reshaping the Manufacturing Sector

The manufacturing sector—responsible for nearly 20% of global carbon emissions—is at a defining crossroads. As the world races toward the net-zero emissions goal outlined in the Paris Agreement and reinforced by COP28, pressure is mounting on industrial players to transform their processes, supply chains, and business models for sustainability.

In India, the government has pledged to achieve net-zero by 2070 and cut emissions intensity of GDP by 45% by 2030. These commitments, coupled with growing consumer awareness and ESG investment flows (which surpassed $8.4 trillion globally in 2023), are reshaping how factories operate.

Sustainability is no longer an option; it’s a competitive advantage. Manufacturers who fail to adapt risk obsolescence—not just environmentally, but economically.

Let’s explore the five biggest trends leading this industrial revolution.

1. The Rise of Green Automation & Industry 4.0

Modern factories are embracing automation not only for efficiency—but to significantly reduce their environmental impact. According to a recent McKinsey report, automated factories can reduce energy consumption by up to 30% through smart monitoring and optimized control systems.

Technologies driving this include:

• SCADA & IIoT Platforms – Real-time visibility into energy, emissions, and waste.

• AI & Predictive Analytics – Identifying process inefficiencies before they escalate.

• Digital Twins – Simulating sustainable operations before implementation.

A 2023 study by Capgemini found that 62% of manufacturers implementing Industry 4.0 solutions saw direct improvements in energy and resource usage within 12 months.

2. Circular Manufacturing & Waste Reduction

Circularity has become a cornerstone of sustainable production. Instead of a linear model (make-use-dispose), forward-thinking manufacturers are moving to repair-reuse-recycle systems.

Key stats:

• Only 8.6% of the global economy is circular, but industrial leaders are closing the loop through material recovery and by-product repurposing.

• Companies like Siemens and Unilever are investing in zero-waste-to-landfill factories, reducing waste by over 90% in select units.

Examples of circular strategies:

• 3D printing with recycled plastics and metals.

• Closed-loop water and chemical systems.

• Product design for disassembly and reuse.

3. Electrification and Renewable Energy Adoption

With fossil fuels on the decline, manufacturers are shifting to cleaner energy sources. Electrification of industrial processes, combined with solar, wind, and bio-energy integration, is reducing Scope 1 and 2 emissions drastically.

According to the International Renewable Energy Agency (IRENA):

• Industrial renewable electricity consumption grew by 35% from 2019 to 2023.

• Solar-powered plants in India have grown by 27% CAGR over the last 5 years.

For instance:

• Mahindra & Mahindra has installed over 16 MW of solar capacity across its plants.

• Tata Steel is piloting hydrogen-based steelmaking to eliminate coal dependence.

4. Data-Driven ESG Reporting and Compliance

Regulations are tightening. Manufacturers must now demonstrate compliance with global standards like:

• ISO 14001 (Environmental Management)

• GRI (Global Reporting Initiative)

• BRSR in India (Business Responsibility and Sustainability Reporting)

Digital tools enable accurate tracking and real-time reporting of:

• GHG emissions

• Energy and water usage

• Waste generation

• Carbon offsets

By 2026, over 75% of global manufacturers will be required to publish verified sustainability disclosures, according to Gartner. Data transparency is fast becoming a non-negotiable for both B2B and B2C companies.

5. Sustainable Supply Chains and Local Sourcing

A product’s carbon footprint is no longer confined to the factory gate. Over 70% of emissions often lie in the upstream and downstream supply chains.

Top strategies being adopted:

• Supplier carbon audits and decarbonization roadmaps

• Local sourcing to reduce transportation emissions

• Blockchain for traceability and ethical sourcing

For example, Adidas sources over 60% of its materials within a 1000 km radius, significantly reducing emissions. Indian MSMEs are increasingly required by OEMs to provide carbon accounting data, creating ripple effects across the supply chain.

Automation Expo 2025: Championing Sustainability Through Automation

As these trends gain momentum, platforms like Automation Expo 2025 are playing a pivotal role in driving industry-wide transformation. Set to take place from 11th to 14th August 2025 at BEC, Goregaon, Mumbai, the event will spotlight innovations that bridge productivity with planet-conscious solutions.

With the theme “Crafting a Resilient & Sustainable Future through Automation”, the expo will bring together:

• 1000+ global exhibitors

• Advanced green automation solutions

• Smart manufacturing technologies

• ESG-driven automation case studies

  
  

Whether you're an OEM, system integrator, or a sustainability officer, Automation Expo 2025 is the place to discover how automation is not just a tool—but a catalyst for sustainable progress.

The path to industrial sustainability is clear—and it’s being paved with intelligent automation, green energy, and data-driven transparency. Manufacturers who lead this shift will not only future-proof their operations but also shape a cleaner, smarter, and more equitable world.

Sustainability is not a cost—it’s an investment in resilience.