{"id":68502,"date":"2023-04-04T08:00:00","date_gmt":"2023-04-04T15:00:00","guid":{"rendered":"https:\/\/cm-edgetun.pages.dev\/en-us\/industry\/microsoft-in-business\/?p=68502"},"modified":"2025-04-23T08:35:38","modified_gmt":"2025-04-23T15:35:38","slug":"aligning-profitability-through-sustainable-manufacturing","status":"publish","type":"post","link":"https:\/\/cm-edgetun.pages.dev\/en-us\/industry\/microsoft-in-business\/sustainability\/2023\/04\/04\/aligning-profitability-through-sustainable-manufacturing\/","title":{"rendered":"Aligning profitability through sustainable manufacturing"},"content":{"rendered":"\n<p>Manufacturing executives face an increasingly complex market. Even as companies work hard to meet financial expectations and regulatory requirements, consumers are encouraging organizations to pursue&nbsp;sustainability.<\/p>\n\n\n\n<p>Many leaders might see a conflict between profits and environmental stewardship. Yet that is a false dichotomy. Sustainability initiatives in manufacturing can drive both top-line and bottom-line growth in the short term while positioning businesses for success in the long term. That\u2019s something everyone can get&nbsp;behind.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"sustainability-in-manufacturing-matters\">Sustainability in manufacturing&nbsp;matters&nbsp;<\/h2>\n\n\n\n<p>Manufacturers can uniquely benefit from sustainable transformation. Approximately 54 percent of the world\u2019s energy consumption happens in manufacturing<sup>[1]<\/sup>. Finding ways to use energy more sustainably will lower costs and boost margins. Sustainability and profits go hand in hand.\u00a0<\/p>\n\n\n\n<p>That being said, I understand that many executives worry that sustainability will come at too high a price. Manufacturers face plenty of challenges already. In a time of rising energy costs, it can be tempting to set sustainability aside.&nbsp;<\/p>\n\n\n\n<p>Yet that would be a wasted opportunity. The pursuit of sustainability goals can cut costs, drive innovation, and increase shareholder value. Today, <a href=\"https:\/\/www.accenture.com\/us-en\/insights\/sustainability\/sustainable-organization?c=acn_glb_buildingsustaingoogle_12379622&amp;n=psgs_0921&amp;gclsrc=aw.ds\" target=\"_blank\" rel=\"noreferrer noopener\">66 percent of consumers<\/a> are prioritizing sustainable and ethical purchases. What\u2019s more, <a href=\"https:\/\/www.mckinsey.com\/capabilities\/sustainability\/our-insights\/the-esg-premium-new-perspectives-on-value-and-performance\" target=\"_blank\" rel=\"noreferrer noopener\">99 percent of C-level executives<\/a> say environmental programs drive shareholder value. Manufacturers that show progress in sustainability have a competitive&nbsp;advantage.&nbsp;&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"the-industry-is-using-data-to-drive-lean-manufacturing\">The industry is using data to drive lean&nbsp;manufacturing<\/h2>\n\n\n\n<p>The first step in any enterprise\u2019s sustainability journey is to gather data. Thomas Concrete Group, for example, <a href=\"https:\/\/customers.microsoft.com\/en-us\/story\/1601901070675086388-thomas-concrete-group-discrete-manufacturing-azure-en-united-states\" target=\"_blank\" rel=\"noreferrer noopener\">created a new green concrete offering<\/a> that delivers data on concrete maturation. The solution makes it easier for its customers to reduce their carbon footprints while delivering projects faster and reducing waste. Now, the group is leading vendors on their own sustainability journeys. Together, they\u2019re tackling the triple bottom line of competitiveness, sustainability, and social good.&nbsp;<\/p>\n\n\n\n<p>Another promising story comes from Mercedes-Benz. The German luxury car manufacturer introduced the MO360 Data Platform to enhance transparency and predictability. The result? An expected <a href=\"https:\/\/news.microsoft.com\/2022\/10\/12\/mercedes-benz-and-microsoft-collaborate-to-boost-efficiency-resilience-and-sustainability-in-car-production\/\" target=\"_blank\" rel=\"noreferrer noopener\">vehicle production efficiency improvement<\/a> of 20 percent by 2025. Manufacturing organizations use tools like these to reduce emissions and centralize reporting. This empowers the C-suite to embed sustainability into operations and culture&nbsp;alike.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"green-manufacturing-can-be-profitable\">Green manufacturing can be&nbsp;profitable&nbsp;<\/h2>\n\n\n\n<p>Innovation is driving the industry toward sustainability, and that progress has been accompanied by growing profits for many companies. For example, Ecolab started using recycled water and Nalco Water technology. The solution saves 58.3 million gallons of potable water each year, and it\u2019s just one part of the company\u2019s smart manufacturing&nbsp;strategy.&nbsp;&nbsp;<\/p>\n\n\n\n<p>Smart manufacturing uses automated processes to lower costs and minimize environmental impacts. If applied across the industry, smart manufacturing could <a href=\"https:\/\/news.microsoft.com\/transform\/sustainable-water-supply-smart-manufacturing-fuel-ongoing-partnership-ecolab-microsoft\/\" target=\"_blank\" rel=\"noreferrer noopener\">save companies $349 billion<\/a> while helping to conserve natural resources for all.&nbsp;&nbsp;<\/p>\n\n\n\n<p>Ingredion is another company using smart manufacturing strategies. The ingredients company recently rolled out <a href=\"https:\/\/customers.microsoft.com\/en-us\/story\/1508866376721814958-ingredion-consumer-goods-cloud-for-sustainability\" target=\"_blank\" rel=\"noreferrer noopener\">a single data solution<\/a> across its operations. \u201cAt a very basic level, sustainability means doing business today in a way that doesn\u2019t inhibit our ability to do business in the future,\u201d says Brian Nash, Vice President of Corporate Sustainability at Ingredion. \u201cFor example, 95 percent of our global sourcing is corn as a raw material for our products. If we didn\u2019t look at soil health and sustainable agriculture, we could easily be destroying the farmland that our growers depend on. That directly impacts the viability of our&nbsp;business.\u201d&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"lessons-we-ve-learned-on-our-sustainability-journey\">Lessons we\u2019ve learned on our sustainability&nbsp;journey&nbsp;<\/h2>\n\n\n\n<p>Manufacturers are uniquely positioned to drive sustainability. By gathering the data they need to guide business decisions, they can reduce costs and conserve resources at the same time. That is why sustainability will be a differentiator for years to&nbsp;come.&nbsp;&nbsp;<\/p>\n\n\n\n<p>We\u2019ve put together the key lessons learned into a white paper for manufacturing leaders. To learn more about how pursuing sustainability goals can be profitable for manufacturing organizations of any size and specialty, download the white paper here: <a href=\"https:\/\/cm-edgetun.pages.dev\/en-us\/industry\/microsoft-in-business\/wp-content\/uploads\/sites\/28\/2025\/03\/Profitable-Sustainability-in-Manufacturing_whitepaper.pdf\">Profitable Sustainability in&nbsp;Manufacturing<\/a>.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\" \/>\n\n\n\n<p><br><sup>[1] &#8211; U.S. Energy Information Administration. (2016). <em>International energy outlook 2016<\/em> (Chapter 7: Industrial sector energy consumption, pp. 113\u2013122). U.S. Department of Energy. https:\/\/www.eia.gov\/outlooks\/ieo\/pdf\/industrial.pdf<\/sup><\/p>\n\n\n\n<p><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Manufacturing executives face an increasingly complex market. Even as companies work hard to meet financial expectations and regulatory requirements, consumers are encouraging organizations to pursue sustainability.<\/p>\n","protected":false},"author":771,"featured_media":68505,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"ep_exclude_from_search":false,"_classifai_error":"","_classifai_text_to_speech_error":"","footnotes":""},"categories":[1533],"post_tag":[1727,1726],"content-type":[534],"coauthors":[1723],"class_list":["post-68502","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-sustainability","tag-profitable-sustainability","tag-sustainable-manufacturing","content-type-industry-trends","review-flag-perce-1706200054-697"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Aligning profitability through sustainable manufacturing - Microsoft in Business Blogs<\/title>\n<meta name=\"description\" content=\"Learn how sustainability initiatives can help manufacturers meet profitability targets today in this Microsoft in Business article.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/cm-edgetun.pages.dev\/en-us\/industry\/microsoft-in-business\/sustainability\/2023\/04\/04\/aligning-profitability-through-sustainable-manufacturing\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Aligning profitability through sustainable manufacturing\" \/>\n<meta property=\"og:description\" content=\"Can businesses pursue sustainability while making profits? 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