According to a recent ENGIE Impact survey, only 20% of company executves say they are “meetng or exceeding” their ambitous decarbonizaton goals. The gap between ambiton and acton is partcularly pronounced in manufacturing, where complex operatons and energyintensive processes make it difcult to implement
meaningful changes.
First conclusion: An efcient decarbonizaton roadmap requires an ambitous program for implementaton — otherwise there is a risk of a gap between expectatons and results. As one Csuite executve lamented: “Middle managers are not executng our plan, they are doing business as usual”. The survey also shows senior decisionmakers are much more optmistc about both the potental and the implementaton capacity of their companies, compared to the functonal and local managers who are expected to implement the changes. How can the later be beter engaged and brought along?
ENGIE Impact has conducted more than 100 studies of client sites worldwide over the past fve years and developed the Net Zero Factory soluton. This approach, which focuses on reducing Scope 1 and Scope 2 emissions at the site level, ofers a structured framework for achieving signifcant greenhouse gas reductons.
Although the Net Zero Factory approach may be new to some organizatons, its strategic implementaton can yield substantal benefts. By proactvely addressing decarbonizaton at the site level, companies can build resilience, reduce operatonal costs, and enhance their momentum toward decarbonizaton goals.
1. A Paradigm Shift is Needed
For most global organizations, the average carbon emissions reduction target is at least 30% by 2030. However, the sheer magnitude of the challenge makes it difficult to know where to begin, resulting in indecision and inaction.
The concept of Net Zero Factories offers a promising path toward a more sustainable future for industrial operations, with an average potential of 60% emissions reduction at site level. However, realizing the full potential of this approach requires a fundamental shift in how organizations think about manufacturing and resource management. The first step is for leaders to revisit their stakeholder expectations and emphasize that maintaining the status quo is not a viable option.
Traditional business models often focus on shortterm profits and efficiency, which reduces the organization’s ability to create a proactive resilient strategy with the long-term in mind. Instead of ROI-based prioritization, the evaluation of different scenarios according to total cost of ownership (TCO) will help optimize the company’s investment strategy.
Building a site-level emission reduction pathway requires organizations to take action on the following:
- Short-term vs. Long-term: While immediate cost savings might seem attractive, investing in energy-efficient technologies and practices can lead to significant long-term cost reductions.
- Innovation Adoption: Embracing new technologies like renewable energy, energy storage, and carbon capture is crucial.
- Collaborative Approaches: Partnering with suppliers, customers, and industry peers can accelerate decarbonization efforts.
2. Building Resilience Through Technological
Diversity
Unlike traditonal approaches that evaluate technologies in isolaton, Net Zero Factories take a comprehensive view of decarbonizaton. Investng in a diverse portolio of decarbonizaton technologies can enhance an organizaton’s resilience through increased adaptability to technological advancements and regulatory changes.
A range of proven technologies can be utlized together to support manufacturing facilites in their journey to Net Zero emissions. In fact, fve proven technologies account for more than 75% of manufacturing decarbonizaton levers:
- Photovoltaics: Solar panels can generate clean electricity on-site, reducing reliance on fossil fuels.
- Electrifcaton: Replacing fossil-fuel powered equipment with electric alternatves can signifcantly reduce emissions.
- Heat Pumps: These devices can extract heat from the environment and use it to heat buildings and processes, reducing the need for natural gas or other fossil fuels.
- Biomass: Wood and other plant-based materials can be burned to generate heat and electricity, provided they are sourced sustainably.
Conclusion: Manufacturing decarbonization is economically viable across many industries and ENGIE Impact teams work with decision-makers and site
representatives to develop tailored decarbonization strategies and optimize related investments. Together, we can build a world where industrial operations are not only profitable but also environmentally responsible.
Tobias Kueter
Senior Manager,
Strategy & Implementation
ENGIE Impact GmbH
