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Sustainability for Manufacturers HCL Point of View
Table of Contents
1.
Abstract..............................................................................................3
2.
3.
4.
5.
6.
7.
8.
Conclusion.......................................................................................13
9.
References........................................................................................13
10.
Profiles..............................................................................................14
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Sustainability for Manufacturers HCL Point of View
1. Abstract
Sustainability is an increasingly common theme in the business and trade press, at
conferences, and in everyday conversation. This white paper encourages manufacturers to
integrate sustainability into their corporate strategy to drive economic value add. It reviews
the top environmental issues affecting the manufacturing sector and explains how taking
action on sustainability can help mitigate perennial business challenges.
HCL Technologies, (HCL) has designed and developed a comprehensive sustainability
framework that caters to the specific needs of manufacturing industries. Our vision is to
transform organizations through compliance into economic value add for sustainability.
This approach focuses on building carbon footprints of all GHG emissions across the
entire manufacturing value chain, energy, waste and water management which will help
build better internal control, make reporting easier, accurate and timely, thus, enabling the
organizations to achieve their business goals.
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Sustainability for Manufacturers HCL Point of View
The sustainability of a manufacturer is measured by the effect of its operations and its
products throughout their lifecycle.
"Sustainable manufacturing processes deploy the optimal use of material and human
resources for the long term to produce the desired product."
This would imply designing products that:
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consume a minimum of energy in their manufacture and end-use
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have minimal carbon footprints in their manufacture and end-use
?
have prolonged useful lives, and modular parts to extend the useful lives of
components
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are composed of parts that are recyclable and reusable to the greatest extent possible
?
consume a minimum of water in their manufacture
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are composed of materials that have minimum possible impact on biodiversity
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produce minimal, air, water and other pollutants in their manufacture and end-use
IT's role in addressing sustainability objectives is limited to Green IT, or reducing the use
of energy in data centers. While the savings can be substantial, the fact is that only 2% of all
carbon emissions can be traced to this source. The use of IT lies in addressing the
remaining 98% of carbon emissions!
One idea in particular the triple bottom line shown in Fig. 1 emerged as the business case
for sustainability. This philosophy suggests a more holistic approach that relies on the
principles of economic prosperity, environmental stewardship and corporate
responsibility. Without metrics to define the achievement of sustainability, success in this
arena cannot be measured.
2.3 The State of Sustainability for Industrial Manufacturing
The industrial sector (including mining, agriculture, fishing, and manufacturing) accounts
for 31 percent of total U.S. energy consumption, the largest share of any sector including
transportation (28 percent), residential (22 percent), and commercial (19 percent). 33
Manufacturing accounts for two-thirds of the industrial sectors energy consumption.
Natural gas and traditional electricity accounts for most of the manufacturing sectors
energy sources. While 47 percent of manufacturers reported average progress or better
towards world-class green and sustainability measurement benchmarks in a recent survey,
only 13 percent described their green measurement systems reviews as including regular
monitoring or transparency. Only one-third of the manufacturers surveyed report having
more than three-quarters of their sales volume from products that are recyclable and/or
reusable.
Likewise, they are responsible for 36% of global carbon dioxide (CO2) emissions (IEA,
2007). Manufacturing industries nevertheless have the potential to become a driving force
for the creation of a sustainable society. They can design and implement integrated
sustainable practices and develop products and services that contribute to better
environmental performance. This requires a shift in the perception and understanding of
industrial production and the adoption of a more holistic approach to conducting
business.
The environmental impact of industrial production has historically been dealt with by
dispersing pollution in less harmful or less apparent ways. Driven in part by stricter
environmental regulations, industry has used various control and treatment measures
toreduce the amount of emissions and effluents. More recently, its efforts to improve
environmental performance have moved towards thinking in terms of lifecycles and
integrated environmental strategies and management systems, and companies have also
begun to accept larger environmental responsibilities throughout their value chains.
The adoption of more integrated and systematic methods to improve sustainability
performance has laid the foundation for new business models or modes of provision
which can potentially lead to significant environmental benefits. Efforts to create closedloop, circular production systems have particularly focused on revitalizing disposed
products into new resources for production, for example by establishing eco-industrial
parks where economic and environmental synergies between traditionally unrelated
industrial producers can be harnessed.
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Sustainability for Manufacturers HCL Point of View
Pollution Control
Treat
Cleaner Production
Prevent
Eco-efficiency
Manage
Life-cycle thinking
Expand
Closed-loop production
Revitalze
Industrial ecology
Synergise
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Sustainability for Manufacturers HCL Point of View
2011, HCL Technologies. Reproduction Prohibited. This document is protected under Copyright by the Author, all rights reserved.
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Sustainability for Manufacturers HCL Point of View
Access to Funds & Markets Investors are paying attention to triple bottom line.
?
Buyers/customers are looking for sustainability credentials of suppliers in the supply
chain. Sustainability and Climate change both are emerging to be the boardroom
topics. The key trend being an increasing scrunitization of corporate sustainability
credentials by investors. Globally large investors have come together with platforms
like Carbon Disclosure Project and ask for sustainability and climate change
information from corporates. It is becoming clear that access to funds for business
growth and expansion will become difficult if corporates do not act transparently on
the issues of sustainability and climate change
Another trend is customers and consumers evaluating vendors and suppliers on how
sustainable are they and their products and services. For example, Wal-mart has begun
evaluating suppliers on their sustainability scorecard and this will adversely impact
suppliers who are not demonstrating tangible action on sustainability. This will limit
access to the markets for such suppliers.
?
Regulatory Compliance - The second trend is that regulatory landscape is evolving
fast there are various mandatory sustainability and carbon reporting regulations
being enacted world over e.g., EU ETS Carbon Reporting or EPA Mandatory
Reporting. This trend is catching up with both developed and developing economies.
In India, Ministry of Corporate Affairs has come up with guidelines for sustainability
reporting and companies will be able to e-file their reports.
?
Competitive Positioning - The third trend is on impact of sustainability on
during design, of issues associated with environmental safety and health over the
product lifecycle. 80% of a products carbon footprint is decided in the design phase
itself. DFE can be thought of as the migration of traditional pollution prevention
concepts to into the development phase of the products before production and use.
The goal of DFE is to enable design teams to create eco-efficient products without
compromising their cost, quality and schedule constraints.
?
Responsible Supply Utilize environment friendly materials, Cost reduction benefits
improve efficiency have been trying to find ways to reduce the demand on critical
resources energy and water. As global demand for energy increases and the impacts of
carbon-based energy sources continue to increase, managing energy consumption
becomes more than a public relations goal. Managing energy consumption is now
critical to the bottom line.
These trends directly impact and create a burden on any companys bottom line. Energy
Management and sustainability programs are required activities for any company that
wishes to stay competitive moving forward. Until now, companies did not have viable
Solutions to manage IT energy consumption in a manner that allowed for automated and
centralized control.
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Sustainability for Manufacturers HCL Point of View
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Sustainability for Manufacturers HCL Point of View
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Sustainability for Manufacturers HCL Point of View
Reman Solution
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Automate core collection process for remanufacturing
Green DC Service
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DGQ framework for DC assessment, DC Consolidation
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Asset Consolidation
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DC structural changes
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Facility non-Structural changes
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Sustainability for Manufacturers HCL Point of View
Seva
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Reduce carbon footprint of service process
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Collect equipment performance and emission data real time through HCL AGORA
platform
EAD
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Visibility into profit & Loss, business flow and OEE (performance , availability &
quality)
We believe that any company will be falling in one of the following stages in its
sustainability journey. We help customers in
Do value discovery to understand
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Understanding which stage they are in currently
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Identify and prioritize the sustainability initiatives
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Create feasibility and roadmap of each initiative
and reporting
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Carbon Accounting HCLs manageCarbon tool to measure, monitor and manage
carbon
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Sustainability Metrics and GRI Reporting Tool for capturing and reporting of
AN ALYT ICS
R E PO R T IN G
Q u e s tio nn a ir e b a s e d re p o rtin g
fra m e w or k fo r re p or tin g u nd e r
GR I.
Co v e rs a ll 79 g en era l p er fo rm a n ce
in dic a to rs a s w e ll a s s e c tor
sp e c ific in dic a to rs ( a s pe r t he G R I
se cto r s u p ple m e n ts)
As s is ts in a ch ie vin g A ra n k in G R I
re p o rtin g ca te g o ry.
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Sustainability for Manufacturers HCL Point of View
Companies that lower their cost of goods and operations have more money to invest in
R&D, upgrading plant or equipment or capital improvements, all of which can
contribute to greater competitiveness and long-term success.
?
Using fewer materials also cuts costs. Switching to more sustainable materials may or
may not reduce costs at the front end, but will likely reduce waste, emissions and
pollution, and perhaps avoid shortages or price increases for the less-sustainable
material.
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Companies that use natural resources wisely and take positive steps to lower their
environmental impact are more successful in attracting and retaining loyal customers
and staff.
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Manufacturers that take responsibility for their products after point of sale can
sometimes create an annuity-based service business.13
Competition
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Sustainability is still a differentiator, but not for longit is quickly becoming an
product. Recent concerns about the presence of dangerous chemicals and materials in
imported goods give domestic manufacturers a chance to regain market share for some
types of consumer goods.
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Products that use minimal energy and water during their useful life will cost less to own
and operate than less resource-efficient alternatives.
Compliance and Managing Risk
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Regulatory pressures will continue to increase and expand to cover materials and
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Sustainability for Manufacturers HCL Point of View
reporting and mitigation plans from their supply chain partners.14 Suppliers who can
show an understanding of the issues and progress toward goals will win business away
from those that do not.
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Earning a valued third party certification designation puts products on the short list for
businesses and government agencies that have implemented an environmentally
preferable purchasing policy.
?
Sustainability challenges are spurring the need for new solutions. Manufacturers that
can add or extend an existing product line to meet the challenges have huge market
opportunity.
8. Conclusion
Sustainability is here to stay. The business world is undergoing a permanent change, and
smart business leaders will build sustainability into their business model. In addition to the
environmental benefits, sustainability offers great financial, competitive and other
business rewards that give manufacturers a competitive edge in a global design market.
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Reduce material and energy costs
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Limit waste
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Limit potential liability
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Meet regulatory and certification requirements
9. References
1. Stephen Stokes, Karen Carter(June 2010), Sustainable Manufacturing During and
After Economic Recovery: Increased, Diversified and More Strategic Corporate
Actions, Gartner
2. Tomoo Machiba, (2009), Sustainable Manufacturing and Eco-Innovation Synthesis
Report, OECD
Authors : sudipta.mukherjee@hcl.com,
sanjay.mukherjee@hcl.com
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Sustainability for Manufacturers HCL Point of View
10. Profiles
Sudipta Mukherjee
Sudipta Mukherjee has over 7.5 years experience across Manufacturing & IT Industry
spanning across procurement, material requirement planning, supply chain planning,
equipment installation & commissioning functions in manufacturing industry. He has 4
years experience in manufacturing vertical of IT industry on supply chain solutions
development, presales and marketing. He has been involved in multiple projects for the
Discrete Manufacturing customer base of HCL.
Sudiptas e-mail id is sudipta.mukherjee@hcl.in
Sudiptas educational background includes a Bachelors Degree in Metallurgical
Engineering followed by MBA from SPJain Institute of Management & Research,
Mumbai.
Sanjay Mukherjee
13+ years of successful Consulting and Sales experience across Business Transformation,
IT consulting and Outsourcing industry.
Leadership positions with IT consulting and Outsourcing majors across varied business
functions such as Key Account Planning and Management, Ownership of Services
Strategy, forecasting and planning of demand, demand fulfillment, client relationship &
portfolio management, P&L for global IT Services
At HCL Sanjay has worked in the areas of Strategic Advisory, Carbon Accounting and
enabling Technology initiatives and Business case in areas related to Green and
Sustainability. He also partnered with other organizations in the service and Software
providers to provide comprehensive solutions to clients.
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Sustainability for Manufacturers HCL Point of View
ABOUT HCL
HCL Technologies
HCL Technologies is a leading global IT services company, working with
clients in the areas that impact and redefine the core of their businesses.
Since its inception into the global landscape after its IPO in 1999, HCL
focuses on transformational outsourcing, underlined by innovation and
value creation, and offers an integrated portfolio of services including
software led IT solutions, remote infrastructure management,
engineering and R&D services and BPO. HCL leverages its extensive
global offshore infrastructure and network of offices in 31 countries to
provide holistic, multi-service delivery in key industry verticals including
Financial Services, Manufacturing, Consumer Services, Public Services
and Healthcare. HCL takes pride in its philosophy of Employees First
which empowers our 72,267 transformers to create real value for
customers. HCL Technologies, along with its subsidiaries, had
consolidated revenues of US$ 3.1 billion (Rs. 14,101 crores), as on 31st
December 2010 (on LTM basis). For more information,
please visit www.hcltech.com
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