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Green Manufacturing

Manufacturing is one of the major sectors in any economy and if we look at any major economy in the world, we can see that they have a thriving manufacturing sector. But manufacturing is also one of the most polluting sectors and consumes the most amount of natural resources. The world is slowly moving to the realization that to survive in this planet for a few more generations, we have to stop polluting the environment and give importance to conserving the natural resources. That is why the manufacturing sector is witnessing a new trend called green manufacturing.

Green manufacturing refers to renewal of the production process and establishment of environment-friendly policies within the manufacturing field. The goal is to reduce the use of natural resources, reducing carbon footprints and minimizing the impact on the environment. Green manufacturers develop or use the technologies and practices that help in this goal. According to the bureau of labor statistics, USA, workers in green companies must have training in green technology and practises and they should focus on the following objectives : 


  • Using energy from renewable sources
  • Efficient usage of energy
  • Reduction in pollution and greenhouse gases
  • Conservation of natural resources

“These objectives go a long way in sustainable manufacturing and making sure that the impacts on the environment are minimum. Today, many companies have started adopting green manufacturing with the government starting to providing incentives and tax benefits to companies for green initiatives.”


Indian Companies going green

More and more Indian companies have started working on green initiatives by the day. In 2004, the Confederation of Indian Industries (CII) unveiled the CII-Godrej Green Business Centre(GGBC) in Hyderabad which is a private-public partnership project between the A.P. Government, the Pirojsha Godrej Foundation and CII. At the time it was the greenest building in India which showed a 53% saving in the energy use, 35% saving in the use of portable water and 85% usage of recycled and recyclable material. Likewise, there are many more Indian companies which are moving to green manufacturing. ACC and Vasavadatta have developed sustainable technologies in manufacturing, HUL is aiming to cut down its carbon emission by 22% and Kirloskar group is manufacturing highly energy-efficient pumps. The ministry of power and the bureau of energy efficiency have come up with a Perform, Achieve and Trade(PAT) program for big energy consumers.The government has identified 478 companies that together consume 75% of industrial energy and given them targets to achieve reduction in their consumption over a period of three years. CII also has initiated the ‘GreenCo’ rating based on environmental performance.

Benefits of Green Manufacturing

Going Green actually makes good business sense. There are several tangible and intangible benefits of moving towards green manufacturing. Manufacturers who are making an effort in this direction can see a positive impact on their bottom line. Some of the benefits of green manufacturing are :

  • Reduction in Costs: Increasing recycling and reducing wastage can definitely help in reducing the overall costs. Moreover, having proper equipment to make use of energy efficiently will bring down the energy costs as well.
  • Tax Credits and incentives: Taxes like the clean environment cess can be avoided or reduced if companies move towards the renewable sources of energy. And not just that, you get tax incentives or rebates by being more energy efficient.
  • Goodwill: The perception of a company can impact the business of the company and the goodwill generated through green initiatives can directly lead to increased sales.
  • Government Contracts: Some government contracts are offered to only green companies. So, a company can increase its chances of earning a Government Contract by adopting green manufacturing.
  • Employee Morale: This may give a major boost to the motivation of employees when they know that their company is trying to save the environment at some level.
  • Impact on the Environment: The greatest benefit that the company gets is not for itself but for the planet!

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