– By Ramnath Vaidyanathan
It is incumbent upon us to lead by example and drive positive change within our organizations and across the industry by adopting sustainable manufacturing practices. Focusing on three simple parameters can help to not just improve sustainability performance but save cost and optimise production.
As we inch closer to 2030, the target year for limiting temperature rise to 1.5 degrees Celsius above pre-industrial levels, there is a lot of talk on disclosures, supply chain engagement and increasing consumer demand for ethical and sustainable products. However, we must not forget that the driver for change at the heart of sustainability is the adoption of sustainable manufacturing processes. Industries across various sectors are cognizant of their crucial role in upholding sustainable manufacturing processes, conserving and judiciously using resources, while not compromising on quality.
India has set the target to bring down its carbon emissions by 22% by 2030 and in 2021, India’s CO2 emissions were 2.88 gigatonne (GT). As per data from 2022, the manufacturing sector in India contributed about 15% of the country’s gross domestic product (GDP) and is also a major contributor of the country’s emissions.
Thus, it is critical that we not lose focus on improving sustainability in manufacturing, particularly in sectors that have a high impact. Several companies are already fairly mature in their sustainable manufacturing practices but this needs to be extended to SMEs and the value chain. As an example, the “Sustainability Survey Report 2023” by The Yarn Bazaar and Wazir Advisors, states that around 80% of stakeholders in the Indian textile industry have already adopted some form of sustainable manufacturing practices.
As a responsible member of India Inc, at the Godrej group, the sustainable manufacturing journey formally began in 2011 with targets on energy & water efficiency, emissions reduction, renewable energy adoption, circularity and reducing waste to landfill. Today, we are in the second phase of our sustainability journey, where sustainability in manufacturing is considered business-as-usual, and our focus has now expanded from our process to our products and our value chain. Here are ways Indian industries have been able to make similar strides in sustainable manufacturing by focusing on four major pillars.
Efficient and Green Energy
The Indian industrial sector is the biggest consumer of energy. More and more companies are moving towards renewable sources of energy. A stark insight we found was that energy efficiency had the potential to save more emissions per rupee of investment than even green energy. Switching to renewable sources of energy coupled with energy efficiency can help reduce emissions and costs.
Several manufacturers in India are integrating solar power into their operations. For instance, the use of photovoltaic panels on factory roofs helps in reducing dependence on conventional energy sources. Auto manufacturers and chemical companies have made substantial investments in solar power installations at their manufacturing plants, leading to significant reductions in carbon emissions and energy costs. Agri companies are replacing fossil fuel usage with agri-residue biomass to meet their entire energy requirement. The cement and steel sectors, known for their high energy consumption, are adopting advanced technologies to enhance energy efficiency. They are using waste heat recovery systems to generate electricity and implementing advanced process controls to significantly cut energy usage.
Water efficiency
Textile and apparel manufacturing units, particularly in water-scarce regions, are implementing rainwater harvesting systems to reduce their reliance on groundwater and municipal water supplies. This practice not only ensures a sustainable source of water for industrial processes but also contributes to replenishing local aquifers. Industries dealing with hazardous liquid wastes, such as pharmaceuticals and chemicals, are adopting Zero Liquid Discharge systems to eliminate wastewater discharge and recover valuable water for reuse. This technology, though initially costly, leads to significant savings in water costs and mitigates environmental pollution. Companies are evolving from traditional technologies like ETPs, MEEs and RO systems, and are adopting natural filtration systems and electromagnetic separation technologies which provide improved water treatment efficiencies with lower cost and energy usage. Treated wastewater is also redirected towards domestic purposes like cleaning machinery or watering in-house plants.
Waste Management
A critical aspect of sustainable manufacturing is resource efficiency and reducing and reusing waste or by products. Companies are implementing practices such as segregating waste at the source, recycling waste into usable products, and partnering with waste management companies for efficient disposal. For instance, many textile companies are recycling fabric waste into new garments, while food and beverage companies are converting organic waste into compost. Many agri businesses utilise all the waste generated from produce to make biomass briquettes that takes care of their business energy needs. Even the ash generated from biomass boilers is repurposed to use either as fertiliser in the form of biochar or sold to local brick manufacturers who use it as an input material. FMCG and retail sectors are innovating in packaging to reduce waste. The use of biodegradable materials, reducing packaging size, and designing for recyclability are some of the steps being taken.
The Indian economy is estimated to reach a GDP of more than $15 trillion and become the third-largest economy by 2047. It is also estimated that with the right measures, India’s manufacturing sector can reach $4.5 trillion in GDP, taking its share to 22%, which is an indicator of its importance to the NDCs. This shift to sustainable manufacturing is not just about compliance, it is about reimagining business models and operational paradigms in ways that align profitability with sustainability. The adoption of solar and wind energy, the circular economy approach to waste, and innovations in water conservation are paving the way for a resilient and sustainable industrial sector in India. These practices are demonstrating that sustainable manufacturing is feasible and financially viable. They illustrate the power of leveraging technology, innovation, engineering and strategic partnerships to address environmental challenges while fostering economic growth.
(Ramnath Vaidyanathan is the AVP & Head- Environmental Sustainability at Godrej Industries.)
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