The challenges of achieving net zero in manufacturing
Written by Adam Dormer from Arcadis Consulting (UK) Limited
Achieving net zero emissions is a critical goal for manufacturers, but there are several challenges that can hinder progress. Through our delivery with our clients Arcadis has identified a number of hurdles for manufacturers overcome.
Why reduce emissions and why net-zero? (business case for emissions reduction)
While it may seem challenging to pursue sustainability goals in the current environment, there are still reasons to pursue:
EU regulations (European Climate Law, Net-Zero Industry Act - NZIA)
Cost of energy - are renewables cheaper or more reliable than gas?
Below, we outline some of the major challenges facing manufacturers:
1 Does your strategy have an assigned budget?
Lots of organisations have ambitious net-zero strategies.
For the most part, these strategies do not have costs or budgets assigned to them.
Strategies are also often developed at the corporate level without a working knowledge of the facilities or machinery and if they do have costs, they are high level, and costs may not be exactly what is needed at the facility level.
2 Does your strategy have an actionable roadmap?
Corporate decarbonisation strategies do not account for on-the-ground engineering level feasibility studies.
For example, while a strategy may set out increasing percent of onsite renewable energy, it does not often come with an engineering led approach that can determine the actual feasibility and commercial model of such installation, nor the incremental steps to get to the final stage of installation.
An engineering led approach would allow for developing an actionable roadmap at the facility level.
3 High upfront capex
Transitioning to sustainable practices often requires significant upfront investments in renewable energy, energy efficiency technologies, and process redesigns.
Such capex is difficult to finance upfront. Clients may want to think about green financing solutions or cost share solutions that support such finance.
4 Data and measurement challenges
Collecting data across various industrial sites can be extremely challenging. How do you know how much to reduce emissions if you don’t fully understand how much each facility produces?
How do you measure and track data across a global footprint?
5 Delivering
Delivering engineering works across multiple sites in multiple countries requires global coordination and experience running global engineering projects.
Arcadis can support through all these challenges via its end-end solutions.
Why Arcadis?
Global expertise: Arcadis has decades of experience helping organizations in various industries reduce their environmental impact.
Innovative solutions: We leverage cutting-edge technology and data-driven insights to deliver measurable outcomes.
Collaborative approach: Our teams work closely with clients to develop tailored solutions that align with their specific goals and challenges.
Commitment to sustainability: As a global leader in sustainability consulting, Arcadis is deeply committed to helping clients achieve net zero and beyond.
By addressing these challenges manufacturers can not only move closer to net zero but also gain competitive advantages, enhance brand reputation, and future-proof their operations.
We have found a great first step is a simple audit, focussed on existing plant and equipment that helps to identify the low hanging fruit, offering up quick wins to manufacturers that enable banking of operational savings.
We are offering a day site visit to a single manufacturing facility with accompanying quick win ideas FOC at the moment. If this sounds like something you might want to do, please get in touch!