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INSIGHTS

Smart manufacturing is sustainable manufacturing

Sustainable production drives business growth.

For the manufacturing industry, there is a need to reduce the carbon footprint of industrial operations. Within digital enterprise, companies can do so rapidly, effectively, and at scale. This article reveals six actionable steps for how to step up your competitive edge by integrating sustainable practices.

Companies around the world are rushing to integrate sustainability goals into their businesses, for a variety of reasons – for ESG investment opportunities, meeting customer demands, and adhering to emissions regulations. For each and every reason, the solution is rooted in the design of products and services. Much of a product’s overall carbon emissions are determined during the design phase and integrating the requirements for sustainability successfully relies on a digital transformation that starts in early concept design.

55% of CEOs reported that they expect to see “significant returns” from their sustainability investments in 3-5 years, with 19% anticipating significant returns as soon as 1-3 years
2024 KPMG U.S. CEO Outlook Pulse Survey

Manufacturers play a huge role in creating a sustainable global economy. While there is a need to reduce the carbon footprint of industrial operations, there is also opportunity for companies that can do so rapidly, effectively, and at scale.

For a business to benefit from sustainable changes like production decarbonization and resource efficiency, goals need to be understood across the organization. From the top floor to the shop floor, establishing goals early helps businesses balance time, cost, and, of course, the quality of production.

Digitalization and automation are essential pillars for maintaining this balance as they enable the seamless combination of the real and digital. Businesses can collect, use, and interpret the terabytes of data their factories produce each month with greater ease and can use it to pinpoint areas of improvement across their operations. This allows organizations to reduce energy costs and even reveal areas where they are wasting resources and costs.

Additionally, data can answer important questions like: How do I optimize material flow in my production? How do I understand and reduce the environmental impact of my supply chain? And how do I optimize my overall industrial footprint to minimize the environmental impact and drive productivity?

Finding solutions to these questions is crucial for businesses to move past the barriers our modern manufacturing landscape brings. Making an impact requires that sustainability is embedded into every step of a business strategy as it influences every decision across engineering, operations, and maintenance. This article will discuss six actionable steps for businesses to embed sustainability into their DNA and become more profitable Digital Enterprises.

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Six steps for profitable sustainable digital production

Sustainable manufacturing isn’t just about meeting regulations or reducing emissions – it’s a direct pathway to greater efficiency, resilience, and long-term profitability. This process is also a journey, but by beginning small and eventually embedding sustainability into every stage of production, from strategy and design to execution and optimization, businesses can maximize cost savings, reduce waste, and strengthen their competitive edge.

Digitalization plays a vital role in this transition, turning data into actionable insights that drive smarter decisions and more efficient operations. As markets shift toward sustainability-driven value, the companies that integrate these principles today will be the ones leading tomorrow. Now is the time to turn sustainability into a strategic advantage.

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Siemens as a manufacturer itself has been able to gain valuable lessons from optimizing their production sites. At Siemens’ electronics Factory in Erlangen, advanced production planning has been key to achieving sustainability and efficiency. By leveraging Siemens Xcelerator, Digital Twins, and AI-driven analytics, the factory optimizes workflows before execution, reducing resource waste and energy consumption. This data-driven approach enabled a 50% cut in carbon emissions, 25% lower total energy use, and a 70% reduction in ventilation power consumption – all while increasing production capacity. With a goal to be carbon neutral by 2030, Erlangen integrates IT and OT early in the planning phase, ensuring smarter, more sustainable manufacturing

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