Unlocking industry net zero: How technology and AI advancements are enabling a more inclusive future for manufacturing

The urgency to get to net zero in manufacturing, the source of one-third of global emissions, has never been greater. At the same time, new technologies have created an opportunity to make industry net zero both more inclusive—including manufacturers of all sizes, across all countries—and more achievable. Resourceful teams on factory floors globally are already turning that opportunity into reality.

These advancements come at a critical time. Decarbonization is increasingly vital for global competitiveness as companies require suppliers to implement decarbonization plans, some as early as 2024. The number of companies setting Science Based Targets, which include decarbonization requirements for suppliers, grew by 87% in 2022.

This heightened focus on decarbonization of supply is important to get to net zero—but without being thoughtful about how to make the transition inclusive, inequality could widen. This would make it harder for factories to compete if they are not large and well resourced.

In fact, a global shift to net zero is impossible without manufacturers of all sizes. Small and midsize manufacturers contribute 60% of global industrial carbon emissions, and are a large portion of manufacturing firms overall. In the US, for example, 98% of manufacturing firms are small or mid sized. These manufacturers are key to a resilient supply chain and livelihoods for billions worldwide.

Supporting small and mid sized manufacturers in decarbonizing can also speed up progress. These smaller teams are often well-positioned for disruptive innovations to accelerate industry net zero and unlock decarbonization for manufacturing facilities within larger companies as well—a win for everyone.

New technologies have come together to overcome old barriers to decarbonization and energy efficiency:

1) Connectivity on the factory floor is enabling manufacturers to unlock the power of their data, even in previously disconnected geographies. Expanded access to cell networks or wifi has lowered barriers to connectivity—for machines, managers, and operators on the factory floor—to unlock new levels of efficiency.

2) Accessible technology is now in the hands of every employee to promote sustainable practices. Industrial technology used to be the realm of experts behind control panels. New, intuitive solutions engage all teammates, even those with less training, to take the right actions to improve sustainability.

3) AI is accelerating the impact of connected devices coupled with empowered users. Algorithms can be trained on anonymized data in the cloud across machines from many factories, democratizing benchmarking, predictive intelligence, and other insights to support decarbonization.

These advancements create a foundation for small and mid sized manufacturers to lead the way in decarbonization. Among the decarbonization levers, energy efficiency is especially important because it creates a big impact today (“right now” is more valuable than “future” emissions reduction!). Accordingly, energy efficiency makes up over half of the Industrial Decarbonisation Roadmap.

Jacob Malowa and his team at Cosmos Limited in Nairobi, Kenya, are one example of a smaller manufacturer adopting innovative decarbonization technologies. Cosmos, the first local manufacturer of anti-retroviral medication in East Africa, started by measuring the electrical draw of their equipment to reduce emissions from energy waste, but Malowa saw that electrical heartbeat could provide his team with exponentially more value. It allows them to manage maintenance and shift productivity in real-time, and serves as the foundation for AI to help predict and prevent failures—all reducing waste and lowering emissions. By integrating energy efficiency into their day-to-day operational management, they have achieved 50% productivity improvement along with 45% reduction in energy intensity of production.

Another example comes from Eddie Senkumba at Nice House, the only manufacturer of toothbrushes and ballpoint pens in Uganda. Eddie realized that while many of his machines were older and lacked digital connectivity, every machine operator on his factory floor had access to a phone. Eddie engaged operators in finding ways to both save energy and improve productivity, using sensors that work on their older machines. His team set up notifications on their phones for opportunities to save energy, and display real-time visual scoreboards on the plant floor to track progress towards improving efficiency and reducing machine idle time. Their idle energy has dropped by 67% since early 2022, with significant productivity improvements as well.

Lastly, across the US, Mexico and Europe, Pretium Packaging is an inspiring example of a mid sized manufacturer that engages hundreds of teammates in sustainability daily as part of their core operations. They have made energy efficiency a key team metric, and closely track the energy used by nearly a thousand machines across five countries to reach peak efficiency. The electrical heartbeat of the machines, including both workcenters and auxiliary equipment, powers real time alerting and AI that helps production and maintenance teams improve productivity. It also gives the Pretium team a real time energy consumption map that they use to identify and implement high ROI projects involving machines, tools, and auxiliary equipment, develop detailed plant shutdown/start-up procedures, and shave peak demand through automatic alerts aligned to their work schedule—all of which yield significant energy and cost savings.

Leaders can help move faster towards an inclusive industry net zero by amplifying small and midsize manufacturers' unique technological creativity and opportunities. For example, they can:

With a thoughtful and inclusive approach to leveraging advancements in connectivity, mobile, and AI to support factories of all sizes, decarbonization of manufacturing can help move the world towards resilient, low-carbon supply chains and greater equality of opportunity for companies of all sizes, everywhere in the world.