What is Green Manufacturing?

Manufacturing is the foundation of our modern economic system. Large-scale manufacturing has spurred unprecedented levels of financial success and quality of life. Unfortunately, it also comes with massive environmental pollution. Many companies are trying their hand at “green manufacturing,” i.e., adopting sustainable practices and leaving a positive environmental footprint. This article will explain what you need to know about this strategy.
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What is green manufacturing?

It is the process of establishing environmentally friendly manufacturing processes. It’s a commitment to produce less waste and carbon emissions, having as little impact as possible on the environment when producing goods.

Green manufacturing requires deep analysis and critical thinking to overhaul existing manufacturing processes to become more sustainable. It also involves strategizing to create new environmentally friendly manufacturing processes while maintaining optimal productivity.

How are manufacturing businesses going green?

1. Renewable energy

Energy consumption is the cornerstone of manufacturing. Any company considering green manufacturing starts with their energy consumption. They audit their energy usage to identify where to switch to renewable and efficient sources. For example, companies can invest in solar and wind energy to augment their power generation. In some cases, companies can switch to 100% renewable energy.

Renewable energy usually has steep upfront costs, discouraging companies from adopting it. Large-scale manufacturers also struggle to meet most of their energy needs via renewable sources like wind, solar, and geothermal. However, the good news is that renewable energy is becoming cheaper as time goes on, thanks to massive investments in research and development across the globe.

For example, the cost of utility-scale solar energy systems fell 82% between 2010 and 2019, according to the U.S. National Renewable Energy Laboratory (NREL). It has continued to reduce and is on pace to overtake fossil fuels as the most affordable energy source for high-volume manufacturers.

2. Waste reduction

Businesses can audit their manufacturing processes to ensure they aren’t wasting valuable products. Some manufacturing byproducts can be recycled or reduced for other projects, reducing environmental waste.

For example, oil exploration causes gas flaring, i.e., burning the natural gas that accompanies extracting oil. However, some companies channel that gas for other purposes, such as energy production, instead of letting it seep into the atmosphere. This gas becomes productive in other areas instead of wasting away.

3. Using non-toxic raw materials

Companies can review their manufacturing process to eliminate environmentally harmful raw materials where possible. For example, many mattress brands are switching to foam made from plant-based rather than petroleum-based oil. The latter causes significant environmental waste, while the former is environmentally friendly.

How does a business benefit from green manufacturing?

1. It boosts reputation

Many consumers, especially younger ones, are environmentally conscious. They seek businesses with sustainable manufacturing processes to signal their care about the planet. Adopting sustainable practices improves your reputation with this cohort and encourages them to patronize you more.

2. Cost reduction

Sustainable practices can reduce manufacturing costs in some cases. For example, if a company replaces its factory’s incandescent lightbulbs with LED bulbs, it will save energy costs and reduce broader environmental pollution. Companies can also replace outdated appliances with newer, more efficient ones to save energy costs.

3. Tax benefits

Many countries, cities, and counties recognize the urgent need to transition towards sustainable manufacturing and have enacted subsidy and tax benefit programs to encourage companies to do so. Businesses can claim substantial tax breaks by investing in sustainable energy projects, saving costs while helping the planet stay safe in the long run.

For example, American businesses can claim federal tax credits of up to 2.75 cents/kWh for electricity generated from renewable sources. This tax credit has contributed significantly to a renewable energy boom in the U.S., adding 32.4 gigawatts in solar capacity in 2023 alone, over 130% from the previous year.

Final Words

Green manufacturing enables companies to kill two birds with one stone – making the world safer and reaping monetary benefits. We’ve explained how companies are transitioning to green manufacturing and the benefits they reap from it.

If you haven’t considered it, we advise you to audit your manufacturing processes to find where to switch to sustainable practices. The same also applies to non-manufacturing companies.