One of the key stepping stones to hitting 2050 net zero targets is monitoring and reporting; as the saying goes, you can’t manage what you can’t measure. During Manufacturing Leaders’ Summit held recently in Liverpool, I got the opportunity to sit in on a roundtable discussing exactly that - implementing robust data tracking systems, conducting regular environmental audits, engaging in stakeholder consultations and adopting transparent reporting frameworks.
It was a great opportunity to hear first-hand about current challenges including data collection and verification complexities, aligning sustainability goals with operational practices, financial investments required for sustainable initiatives, and ensuring consistent progress amidst changing regulations and market dynamics.
Here, The Manufacturer caught up with Simon Culshaw, VP Manufacturing, Telco, Media and Technology Northern Europe at Eviden to discuss the key themes that emerged over the two days.
Also joining Simon on the discussion table was Alex Beynon, Regional Director for Retail, Pharma and Consumer goods at Dynatrace and Tasha Lyth, Sustainability Manager at Gripple.
Tasha was keen that everyone got something out of the discussions and said: “Manufacturing Leaders’ Summit provides an opportunity to gain insights from various perspectives. Our discussion table focused on monitoring and reporting for sustainability. We delved into the governance required by companies, the relevant legislation and how this information can shape sustainable business decisions.
“As a sustainability manager at Gripple, I aim to highlight that sustainability doesn’t have to be expensive. There are cost-effective and quick-win strategies using existing resources that can initiate significant positive changes for businesses.”
Key themes discussed
SC: At our table, the primary focus was on carbon footprint monitoring and reporting, organised into three key areas. Initially, we delved into the awareness of upcoming regulatory reporting requirements, such as Corporate Sustainability Reporting Directive (CSRD) and Streamlined Energy and Carbon Reporting) (SECR), emphasising the need for companies to auditably report their carbon footprint, for all Scope emissions.
The second theme centred on companies’ planning strategies to fulfil these requirements and comprehensively report on all three scopes of their carbon footprint. The third area explored the challenges encountered in implementing these plans.
Although our discussion expanded to include broader topics like the journey towards net zero and the difficulties in reducing company and product carbon footprints, the core themes remained centred on regulatory awareness, planning and challenges in carbon footprint monitoring and reporting.
Key takeaways
The key takeaway from our discussions highlighted that while there is some awareness of regulatory requirements like CSRD and SECR within companies, this is often limited to small groups. Sustainability, though recognised and increasingly important, hasn’t yet become fully ingrained in everyday practices across many organisations. Therefore, efforts to increase awareness of decarbonisation objectives are being concentrated on improving communication channels.
It was clear that sustainability considerations are starting to be integrated into procurement processes, with a growing emphasis on evaluating the carbon footprint of suppliers. This trend is also extending to product development plans, where there is a concerted effort to make products as sustainable and carbon neutral as possible.
The challenges surrounding Scope 3 emissions were widely acknowledged, with many grappling with where to start and end reporting in this category. The discussions also delved into the role of people and culture, revealing a positive willingness among employees to support sustainability initiatives. However, the challenge lies in translating this support into tangible changes in everyday work, especially in the face of persistent cost pressures.
A notable point of concern was the perception of sustainability initiatives as cost overheads, particularly when facing financial constraints. The consensus emerged that for sustainability efforts to succeed, they need to be seamlessly integrated into product planning and overall ways of working, minimising the perception of the issue being an additional financial burden.
Overall, securing investment for decarbonisation initiatives and monitoring/reporting was seen as a tough challenge, emphasising the need for a more embedded and cost-effective approach to sustainability.
Aside from cost, manufacturers highlighted several significant challenges related to the monitoring and reporting aspects:
Labour intensity and manual processes: The process of monitoring and reporting is perceived as labour intensive, often relying on manual efforts conducted through spreadsheets. This not only consumes time but also contributes to higher costs.
Need for IT solutions: There is a recognised need for IT solutions in the monitoring and reporting space. Automation is sought after, both for data collection and ensuring data quality. The use of spreadsheets is seen as a limitation, and there’s a call for more sophisticated IT tools to streamline and automate these processes.
Data quality and compliance: Concerns were raised about the quality of data, particularly in the context of new regulations. Manufacturers are navigating the challenges of ensuring data accuracy, reliability and auditability, especially as regulatory requirements become more stringent. Traceability is a key aspect, with a focus on maintaining clear audit trails for the data reported.
Process optimisation: The need for process optimisation was highlighted as another significant challenge. Manufacturers are exploring ways to enhance efficiency in monitoring and reporting processes, seeking improvements in workflow, data collection and analysis to meet both current and upcoming regulatory demands.
The challenges extend beyond cost considerations and encompass issues related to labour intensive manual processes, the demand for IT solutions, ensuring data quality and compliance, and optimising overall monitoring and reporting processes. Addressing these challenges is crucial for manufacturers to navigate the evolving landscape of sustainability regulations effectively.
Monitoring and reporting
SC: The presence of plans for monitoring and reporting was in line with expectations, with a majority of participants having some form of planning in place. The level of advancement in these varied among companies, but the consensus was that everyone recognised the necessity of such planning due to regulatory requirements.
It’s worth noting that most companies were currently relying on industry standard data rather than actuals, indicating a potential significant shift and a fair amount of work to ensure compliance as new regulations around reporting come into play. The impending changes in reporting regulations are expected to drive a substantial transformation in how companies approach and execute their monitoring and reporting plans.
How can Eviden help manufacturers with their sustainability challenges?
We have a specialised consulting function focused on planning, covering both reporting and the journey to net zero. While we acquired EcoAct a few years ago, we recently sold its carbon offsetting division, retaining the consulting elements. This has given us extensive expertise in net zero strategy and planning.
Additionally, we’ve made significant investments in reporting tools, including a co-development with BASF to create a carbon footprint calculator initially for the chemicals industry, now being adapted for broader manufacturing sectors. This partnership is innovative, involving BASF in the development, contributing their intellectual property, and leading to a new business line for both companies.
We’ve also recently launched Eco Design Cloud, a product lifecycle assessment tool for calculating the carbon footprint of any product. Another noteworthy product is Oscar for Suppliers, utilising Gen AI to collect supplier data for carbon footprint calculations, focusing on supply chain monitoring and reporting of supplied components and raw materials.
Lastly, along with utilising our own capability, we work extensively with partners like Dynatrace to help companies measure, understand, report, and reduce their IT carbon footprints. Dynatrace’s new Carbon Impact app tracks carbon emissions across hybrid and multi-cloud environments, delivering analytics and recommendations that support carbon-reduction initiatives.
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