Smarter Machines, Greener Factories: How AiOT and Smart Meters Empower ESG in Manufacturing

As ESG (Environmental, Social, and Governance) takes the spotlight in today’s business world, Malaysian manufacturers are seeing that sustainability is more than a buzzword, it is a competitive edge. DSC Consulting supports this shift by integrating smart meters into our AiOT (Artificial Intelligence of Things) system, embedded directly in shopfloor machinery.

Smart factories aren’t just about boosting efficiency or profits, they also play a vital role in protecting the environment.

The Energy Blind Spot in Traditional Manufacturing

In many Malaysian factories, particularly among SMEs, energy use is often seen as a fixed expense, with little insight into when, where, or why electricity consumption increases. Equipment is typically switched on at the start of a shift and left running, regardless of actual demand. This absence of detailed data results in waste, inefficiencies, and excess carbon emissions that hinder efforts to meet ESG goals and cut operating costs.

Without proper visibility, accountability is nearly impossible. This is where smart metering and AiOT technologies make a difference.

Smart Meters: From Passive Billing to Active Control

Modern smart meters do much more than just track electricity bills. When placed at key points—such as main power lines, critical machines, or high-energy processes—they offer real-time visibility into energy consumption. Unlike traditional meters, these smart devices collect detailed, high-frequency data and reveal usage patterns that would otherwise go unnoticed.

With this insight, factory managers can:

• Pinpoint which machines use too much electricity

• Spot when equipment is running idle

• Track energy usage during peak hours

• Set automatic alerts or shut-off triggers when thresholds are exceeded

By studying these trends over time, manufacturers can fine-tune their operations, reduce waste, and avoid high charges during peak electricity periods.

AiOT on the Shopfloor: Intelligence in Every Machine

When smart meters are paired with AiOT capabilities, the system becomes much more powerful.

AiOT embeds sensors, connectivity, enabling continuous monitoring of machine performance, environmental conditions, and energy usage. This real-time visibility creates a responsive feedback loop, allowing factory teams to detect anomalies, spot inefficiencies, and take timely action. For example:

• A CNC machine’s power consumption can be monitored and flagged when usage exceeds typical levels for certain materials or operations.

• An HVAC system in a cleanroom can alert teams when environmental conditions fall outside optimal ranges, prompting manual adjustments.

• Machine idle response mechanisms can notify operators when machines are left idle for too long, prompting warm-up scheduling or shutdown to minimize energy waste.

Real-World Impact: A Glimpse from a Penang SME

As we recently launched, our initial focus has been on energy monitoring. This has already enabled us to establish a baseline and take effective steps to reduce electricity costs, particularly by lowering our Maximum Demand (MD) and minimizing usage during high-tariff periods.

A Smart Start Toward a Sustainable Future

For Malaysian manufacturers looking to remain competitive and future-ready, digitizing energy monitoring is no longer optional. Smart meters and AiOT represent a practical, scalable starting point for ESG transformation—one that aligns environmental responsibility with business profitability.

In the journey toward Industry 4.0, smart factories will not only be more productive but also more sustainable. Because in the age of ESG, smart is green—and green is smart.