Date : 15-Jun-2021
Location: Singapore

Organization:

Capgemini,a global leader in partnering with companies to transform and manage their business by harnessing the power of technology. 

Key Takeaways:

• A comprehensive guide for manufacturers, only 51% of manufacturing organizations globally are aiming to align with the temperature contribution target of the Paris Agreement.
• The report also reveals that manufacturers are boosting their sustainability agenda with technology, as more than half (56%) of organizations are currently prioritizing the deployment of digital technologies for sustainability.
• However,the manufacturing sector lacks a comprehensive focus on sustainability, and the maturity of sustainability practices remains low: only 10% of organizations employ a holistic approach to sustainable manufacturing.

• Corinne Jouanny, Chief Innovation Scaling Officer at Capgemini Engineering,said,technologies and data are critical to accelerating the sustainability agenda.

Insights:

1.) Capgemini Research Institute entitled, Sustainable operations: A comprehensive guide for manufacturers:

• 20% aiming for carbon-neutral operations and two in five (40%) setting their sights on 100% renewable operations by 2030.
• only 51% of manufacturing organizations globally are aiming to align with the temperature contribution target of the Paris Agreement. Within this cohort, Germany (68%) and France (67%) are leading the pack with respect to their manufacturers being on track to achieve the targets.
• 89% of organizations implementing sustainability initiatives see an enhanced brand reputation and 81% noted an improved environmental, social and governance (ESG) rating of their company.
• 79% achieved improved efficiency and productivity and more than half reduced packaging costs and boosted employee motivation levels.
• 9 in 10 organizations have seen a reduction in waste (98%) and greenhouse gas emissions (94%) as a result of implementing sustainability practices — both of which are top priorities for manufacturers.
• The Capgemini Research Institute surveyed 1,000 executives among large manufacturers across business functions and regions. Out of these, 480 organizations surveyed were represented by an executive from the business-facing side and one from sustainability functions. In addition, the researchers conducted one-on-one interviews with 15 senior sustainability executives from the industry’s major players.

2.) Maturity stages of sustainability practices:

• Scope 1 - direct emissions that the organization owns or controls - only 38% are practicing this
• Scope 2 - indirect emissions such as generating the electricity used by the organization
• Scope 3 - all other indirect emissions that occur in a company’s value chain), neglecting other carbon drivers beyond internal processes.

3.) On 2-Jun-2021, Blue Prism has named Capgemini its Regional Best Practices Partner of the Year (APAC) for the second year in a row, in recognition of the Group’s sustained efforts in helping enterprises drive intelligent automation adoption and innovation.

• Capgemini has collaborated with Blue Prism since 2019 to jointly establish a Robotic Process Automation (RPA) Center of Excellence in Malaysia aimed at accelerating customer adoption of its RPA software.  

Best Practices:

The report concludes with the top sustainability practices or applications within each of the ‘six R’ areas and outlines the critical success factors for organizations to reach their sustainability goals:

• Align business teams and sustainability executives to explain synergies between performance and sustainability, and anchor the joint agenda
• Work with customers and suppliers to reduce indirect emissions
• Build transparency through effective reporting and ensure accountability
• Incorporate sustainable ways-of-working and operating culture
• Invest in technology and data-driven innovation to ensure sustainability goes hand in hand with profitable growth. 

Case Studies:

Capgemini recently announced in April 2021 that they are working with Heng Hiap Industries, a fully integrated plastic recycling company in Malaysia with 19 years of experience, to design an innovative business roadmap for a new mobile application, which rewards and simplifies the process of plastic waste recycling for consumers in their communities. 

Editor's comments:

• Capgemini is a global company helping clients to achieve digital transformation to scale up automation and sustainability.

Conclusion.

According to the report, manufacturers need to go beyond existing lean and green practices – reduce, reuse, recycle - to a more comprehensive approach, one that incorporates recover, redesign and remanufacture. While most organizations focus on direct emissions to achieve their carbon-neutrality goal, much of the carbon footprint for manufacturers lies within the indirect emissions of their organization, and that of their value chain.