December 10, 2024
Why Manufacturers Must Act Now on Environmental Challenges
The manufacturing sector stands at a critical juncture as environmental concerns reshape global priorities. With rising consumer expectations, regulatory demands, and the push for supply chain decarbonization, manufacturers must act swiftly to remain competitive. Here’s why addressing environmental issues is no longer optional:
A. CO2: The Invisible Thread in Global Supply Chains
I. Manufacturing: The Leading GHG Emitter
- As a top contributor to greenhouse gas (GHG) emissions, the manufacturing sector bears a significant responsibility in global sustainability efforts. Companies that fail to reduce their environmental footprint risk lagging behind as industries adopt cleaner practices.
ii. EU Carbon Border Adjustment Mechanism
- The European Union’s Carbon Border Adjustment Mechanism (CBAM) marks a transformative shift. Importers of steel, cement, and other high-carbon products must now purchase carbon allowances, leveling the playing field with EU producers under the Emissions Trading System. This regulation sends a clear signal—manufacturers must urgently embrace decarbonization to retain access to global markets.
iii. Rising Consumer Demand for Sustainable Products
- Sustainability is no longer a niche concern. Over half of industry leaders report growing consumer expectations for environmental action since the COVID-19 pandemic. Businesses unable to meet these demands risk losing market share as customers gravitate toward environmentally responsible brands.
B. Regulatory Pressures Are Mounting
- Governments worldwide are stepping up, with over 30 countries introducing carbon taxes or equivalent measures. From the EU’s rigorous climate policies to China’s ambitious targets, nations are aligning with net-zero GHG objectives for 2050 or 2060. Manufacturers need to align with these policies to avoid penalties and capitalize on emerging incentives.
C. Leading the Way: Manufacturers Setting Bold Targets
Global brands like Coca-Cola, Toyota, Nestlé, and others are leading with bold emissions reduction targets, proving that sustainability and profitability go hand in hand.
The Time to Act Is Now
The Consumer Sustainability Industry Readiness Index (COSIRI) helps manufacturers assess their environmental impact, prioritize improvements, and create a roadmap for sustainable growth.
With HRDCORP-claimable benefits, COSIRI ensures you stay competitive while meeting regulatory demands and consumer expectations.
Start your sustainability journey today with COSIRI.