The industrial sector in the U.S. consumes more energy than all other sectors, with manufacturing accounting for the largest share (76%), followed by mining, construction, and agriculture. In fact, by 2050, the industrial sector is expected to increase energy consumption by as much as 15%. Additionally, over the past three decades, emissions from the manufacturing and construction industries have grown by 60%. To address these challenges, many organizations worldwide—whether driven by government regulations or voluntary initiatives—have prioritized measuring, reporting, and reducing their emissions.
But energy consumption is just one piece of sustainability. According to Business Waste, each year, 9.2 billion tons of industrial waste are generated worldwide and disposed of at a broad spectrum of industrial facilities.
Manufacturers are addressing these and other sustainability challenges. In a late 2024 Manufacturers Alliance member survey, 96% of respondents reported focusing organizational efforts on energy consumption, and 76% emphasized waste management.
What does this mean for the future of manufacturing? The 2024 World Manufacturing Report identified four key scenarios shaping the industry’s journey toward greener practices:
- Green transformation as a growth engine
- Technological divergence in manufacturing
- Refocused core capabilities
- Regulatory fragmentation and efficiency focus
As manufacturers work to reduce emissions and align with ESG regulations, they often uncover significant benefits. Fifty-one percent of survey respondents are using on-site renewable energy generation as enhanced energy efficiency leads to lower energy costs, while 56% are utilizing recycling initiatives for improved waste management reduce operational burdens. Moreover, the chase for greener solutions stimulates innovation and drives advancements in research and development.
Members of the Manufacturers Alliance report that their top success metrics include reductions in resource consumption, waste generation, and improvements in air and water quality—clear indicators that sustainability is pivotal in the manufacturing sector.
Forging a Path to Success
Leaning on peer experience is a core belief at the Alliance, and cases studies from manufacturers give insights on how organizations can move towards their environmental goals.
Trane Technologies: Circular Manufacturing
Circular manufacturing, also called remanufacturing, could “contribute $4.5 trillion to the global economy by 2030 and save 45% of global emissions” according to research by the Ellen MacArthur Foundation.
At Trane Technologies, 45% of key commodities (e.g. steel, aluminum, copper) used to make their products in 2023 were recycled and 85% of their manufacturing facilities are operating as zero waste to landfill. It doesn’t end there. Trane has committed to reducing embodied carbon by 40% by 2040 and continues to source more sustainable solutions like low-carbon steel.
“By focusing on priorities like using recycled and renewable materials, sustainable design, and reclaiming refrigerants to reduce overall greenhouse gas emission, we are envisioning a future where products are not only recycled but can also be repurposed,” according to Scott Tew, Vice President of Sustainability, Trane Technologies.
How? Manufacturers need to work with their in-house product innovation teams or take the help of external resources to envision changes in their approaches to the complete product lifecycle. Keith Sultana, Senior Vice President Global Integrated Supply Chain at Trane, shared they are “propelled by our purpose to challenge what’s possible for a more sustainable world, we are proud to lead our industry in reducing the embodied carbon of our products – enabling further emissions reductions for our customers and helping to lower their environmental footprints.”
What are other manufacturers doing? While a quarter of respondents said they were not using any systems for waste reduction, among those that were, a majority are targeting waste-to-energy conversion as a reduction plan, and circular economy practices trail right behind with 33% of respondents implementing that system.
Systems Being Used to Reduce Waste in Manufacturing Processes
Source: Manufacturers Alliance member survey, 2024.
Honda’s Green Path Forward
Honda is focusing on waste reduction with effective resource utilization and environmental load reduction, which happens to align with member-data as 89% of surveyed companies use resource consumption reduction as their determinate of success. While mitigating risks to local communities, they’re on a journey to achieve a “14.5% reduction in the total amount of water withdrawn across all Honda activities by the Fiscal Year Ending March 31, 2031.”
Besides their water treatment, in 2022 the North American manufacturing plants were 98.6% landfill free, just shy of the 99% goal. Seeking to reduce CO2 emissions, Honda has virtual power purchase agreements for renewable wind and solar power that “will cover more than 60% of the electricity that Honda uses in North America. A plant in Ohio generates 10,000 megawatt hours of electricity each year alone with wind turbines.
The organization additionally provides environmental assessments to their dealers and distributors through their Environmental Leadership Program. This program assesses new and existing facilities in energy performance, water efficiency, and site practices through exact utility data and a scorecard evaluation. Partners who participate can earn recognition with a Green Dealer Award from Honda. This practice isn’t as strong outside of Honda, only 37% of our member respondents' organizations measuring certifications as a level of sustainability success, and only 30% consider positive stakeholder feedback an additional measure.
Most recently at the end of 2024, Bob Nelson, Executive Vice President of American Honda Motor Co., Inc., was named the 2024 Automotive News All-Star in the sustainability category. Nelson was recognized for his leadership as Honda works toward the company's global goal of zero environmental impact by 2050.
Sustainability Woven into the Operations of Patagonia
Famous for sustainability being at the core of its business process, Patagonia works strongly to minimize emissions and waste at their facilities across the globe. In the U.S., the company has on-site solar installations at their Reno, Nevada, and Ventura, California, campuses and has installed more than 1.5 megawatts of renewable power. Patagonia directly procures renewable utility energy through green tariff programs (where these programs are available). If needed energy is not available through those options, the organization purchases Renewable Energy Certificates (RECs) which track the energy to ensure it’s been sourced from renewable methods.
By 2025, Patagonia has set a goal to only use preferred materials—organic and Regenerative Organic cotton, recycled polyester, and recycled nylon. With natural and synthetic fibers made from “pre-consumer and postconsumer waste, [Patagonia] limits dependence on raw materials and reducing carbon emissions.”
In the Fall 2024 collection, 99% of their line was made with recycled materials, and 99% of their fabrics (by weight) that include water-repellent chemistries are made without intentionally added PFAS/PFCs.
Battling Challenges
According to Manufacturers Alliance members, the top challenges to meeting sustainability goals are the high implementation cost and the lack of needed budget. Seventy percent want additional budget to better address sustainability progress at their organization, followed by technology resources, and leadership or employee buy in. According to an outside survey by GoodLab, funding was the third barrier, with the top two barriers being “Limited control over sustainability standards of suppliers and partners,” and “We do a good job with small sustainability projects but have difficulty scaling a sustainability initiative.”
Top Resources or Support Organizations Need to Achieve Environmental Goals
- Additional budget
- Technology resources
- Leadership or employee buy in
Source: Manufacturers Alliance member survey, 2024.
For those organizations that endure the challenges, there are direct business benefits. Including but not limited to:
- Cost reduction from efficient use of resources (Honda)
- Brand loyalty as consumers tend to be more loyal to brands that share their values (Patagonia)
- Innovative products and services prompted by the search for new opportunities (Trane Technologies)
- Legal compliance and risk mitigation preventing association with unethical or unsustainable behavior
Even with the challenges, private companies’ (who might not fall under legal requirement to report on their sustainability) submission rate for sustainability metrics are on the rise. And most large companies have budgets for sustainability reporting. Take advantage of learning and being inspired from those who see the light at the end of the tunnel.
Members can gain access to the full results of related surveys for more information about peer sustainability programs in:
ESG Regulation Reporting Strategy and Team
Manufacturers Contend with Increasing ESG Regulations
Sustainability & Resource Management in Manufacturing
Technology for ESG Regulation Reporting and Tracking
