In a conversation with Asia Business Outlook magazine, Daniel Tien-Duc Nguyen – Plant Manager at Schaeffler Vietnam shared his views and thoughts pertaining to Sustainability Strategies in Production. Daniel assumed the role of Plant Manager where he is focused on leading the plant towards excellence through 5 key priorities: Safety, Quality, Delivery, Cost and Sustainability. Before joining Schaeffler, he also worked with Michelin in France for over six years as Engineering Project Manager.
The landscape of sustainability is ever-evolving. How do businesses stay ahead of the curve and ensure that the plant remains at the forefront of sustainable manufacturing practices?
In the rapidly evolving landscape of sustainability, Environmental, Social and Governance (ESG) practices are becoming more widely discussed and implemented in today’s business world when corporations now feel more responsible to contribute to addressing environmental and social issues and driving to a sustainable world.
Therefore, ESG is demonstrably emerging as a core principle for businesses across all sectors, with manufacturing being no different.
To achieve leadership in sustainable manufacturing, businesses require a robust ESG strategy that encompasses all three pillars: Environment, Social, and Governance.
Environmental: Prioritizing energy conservation, utilizing green energy sources, implementing effective waste and water management practices, and minimizing overall environmental impact are crucial considerations.
Social: Companies should prioritize employee well-being, fostering a culture of respect for partners, and actively contributing to the communities surrounding their manufacturing plants.
Governance: Embedding sustainability practices into the company's core values is essential. This includes a Board of Directors that champions sustainability, fosters an engaging work environment, and encourages employee participation.
At Schaeffler Group, sustainability is not just a value, it's a cornerstone of our "Roadmap 2025". We have defined 10 action fields for the implementation of our sustainability strategy, which are allocated to the three dimensions ESG. Currently, our efforts focus on 7 key ESG targets:
1. Climate-neutral Supply Chain:CO2 reduction in the supply chain.
2. Climate-neutral Production:CO2 reduction in our own production.
3. Energy Efficiency: Cumulative annual efficiency gains of 100 GWh through energy efficiency measures by 2024.
4. Renewable Energy: 100% purchased power from renewable sources by 2024.
5. Women in Top Management: Increase the percentage of women at the top management level to 20% by 2025.
6. Freshwater Supply: 20% reduction of freshwater use by 2030 compared to the base year 2019.
7. Accident Rate: 10% average annual reduction of the accident rate (LTIR) by 2024.
At our plant, Schaeffler has implemented a comprehensive energy management system, allowing for real-time tracking and optimization of energy consumption. By staying abreast of global trends, consumer expectations, and the latest environmental regulations and industry standards, we can continuously adapt, innovate, and solidify our position as a leader in sustainable manufacturing. Additionally, we invest heavily in continuous education and training for our workforce, ensuring they have the knowledge and skills necessary to implement these sustainable practices effectively.
Innovation plays a key role in enhancing sustainability, what innovative technologies or methods have to be explored to reduce the carbon footprint of production operations?
Innovation plays a critical role in enhancing sustainability within the manufacturing sector. To reduce a company's carbon footprint, exploring and implementing
cutting-edge technologies and methods is essential.
One significant approach involves integrating renewable energy sources, such as solar and wind power, directly into the manufacturing process. By utilizing these clean energy alternatives, manufacturers can decrease reliance on fossil fuels and significantly reduce greenhouse gas emissions.
The use of energy-efficient machinery and equipment represents another promising technology for sustainable manufacturing. Advancements in automation and robotics can lead to more precise and efficient production processes, minimizing both energy consumption and waste generation. Smart manufacturing systems, leveraging the power of the Internet of Things (IoT) and Artificial Intelligence (AI), can further optimize operations in real-time, ensuring the most effective use of resources.
Implementing real-time monitoring and analytics to improve energy management is another key strategy. By continuously assessing and optimizing energy consumption, manufacturers can make significant reductions in their overall carbon footprint.
Furthermore, adopting circular economy principles holds immense potential. This approach involves designing products for longevity, repairability, and recyclability, ultimately reducing the overall demand for resources and minimizing waste generation. Closed-loop systems, where waste materials are reused within the production process, further enhance sustainability.
At Schaeffler, we are proud to offer our "Lifetime Solutions" series, which embodies these principles. This series includes innovative solutions such as machine condition monitoring systems, automatic lubrication systems, and advanced installation techniques. By applying the latest advanced technologies and conducting ongoing research, "Lifetime Solutions" not only enhances production efficiency but also significantly contributes to environmental protection and promotes sustainable development.
In 2019, Altmann Industrietechnik, a leading German automotive manufacturer, implemented Schaeffler's ProLink CMS monitoring solution and the CONCEPT8 smart lubrication solution within their plant system. These solutions yielded impressive results, including a reduction of CO2 emissions by 62 tons and cost savings of up to 145,000 Euros (nearly 4 billion Vietnamese Dong).
A sustainable supply chain is essential for achieving overall sustainability goals in production, what strategies are important to ensure sustainability throughout the supply chain?
A sustainable supply chain is essential for achieving overall sustainability goals in production, and several key strategies are vital to ensure sustainability throughout the supply chain. One crucial approach is to source raw materials responsibly. This involves selecting suppliers who adhere to strict environmental and ethical standards, ensuring that the materials used in production are sustainably harvested and processed. Currently, Vietnamese businesses are also increasingly focusing on applying international Sustainable Supply Chain standards such as ISO 14001, SA 8000, LEED, etc.
Another important strategy is to foster transparency and traceability across the supply chain. This transparency allows companies to identify areas for improvement and ensure that all partners in the supply chain are committed to sustainable practices.
Regular auditing and monitoring of the supply chain are also critical. By conducting thorough assessments of suppliers and their practices, companies can ensure ongoing compliance with sustainability standards and identify any areas that need improvement. This proactive approach helps maintain high standards and continuous progress towards sustainability goals.
Implementing these strategies ensures that the supply chain not only supports but actively contributes to overall sustainability goals, creating a more responsible and environmentally-friendly production process.
Effective waste reduction and resource efficiency are key sustainability goals. What are some common challenges that arise while implementing waste reduction programs, and how can we overcome them?
Effective waste reduction and resource efficiency are fundamental sustainability goals, but implementing these initiatives can present several challenges.
A primary challenge is the initial cost associated with adopting new technologies and processes. Upgrading equipment, redesigning processes, and implementing waste management systems often require significant upfront capital. To overcome this hurdle, highlighting the long-term economic benefits is crucial. These benefits include cost savings from reduced waste disposal and improved resource efficiency. For instance, Schaeffler's Climate Action Plan, established within our Roadmap 2025, outlines specific measures for CO2 emission reduction, demonstrating a clear path towards achieving cost-effective sustainability.
Accurately measuring and tracking waste can also be challenging. Without reliable data, it is difficult to identify areas for improvement and assess the success of waste reduction programs. Implementing robust monitoring and reporting systems is essential. Technologies like IoT sensors and data analytics can provide real-time insights into waste generation and resource usage, enabling precise adjustments and continuous improvement.
Finding sustainable alternatives for materials and processes can be another challenge. Environmentally friendly options may not always be readily available or may come at a higher cost. This requires ongoing research and collaboration with suppliers to develop and source sustainable materials. Additionally, partnerships with sustainability-focused organizations and participation in industry forums can keep businesses informed about new innovations and best practices.
While waste management may seem initially challenging, its long-term benefits are undeniable. It serves as the cornerstone of environmental protection, resource conservation, and fostering a sustainable economic future. Embracing new technologies is an indispensable step in making waste reduction truly effective.
What future trends or technologies do you believe will have the biggest impact on sustainability in production over the next decade?
The next decade holds immense promise for advancements in sustainable production, driven by several key trends and technologies.
One major trend is the surging adoption of renewable energy sources within the manufacturing sector. Solar, wind, and other renewable alternatives are becoming increasingly cost-effective and accessible. This allows businesses to significantly reduce their reliance on fossil fuels, leading to a smaller carbon footprint. Large-scale solar power installations integrated directly into manufacturing plants exemplify this approach, drastically cutting energy costs and emissions.
Alongside the rise of renewables, investment in energy storage and grid technology will also see a significant boost. This focus aims to optimize the use of renewable energy. During periods of excess production, energy can be stored for times when renewable output is lower, ensuring maximum efficiency and uninterrupted operations for factories.
Advanced automation and artificial intelligence (AI) will play a crucial role in enhancing sustainability. By predicting maintenance needs, optimizing resource allocation, and minimizing downtime, AI and machine learning can significantly reduce waste and improve energy efficiency. These technologies pave the way for smart manufacturing systems that adapt to changing conditions in real-time, ensuring optimal performance with minimal environmental impact.
IoT will further revolutionize production by providing detailed insights into every aspect of the
manufacturing process. IoT devices can monitor energy usage, track resource consumption, and detect inefficiencies, allowing for continuous improvement and precise management of resources. This connectivity and data-driven approach will enable more sustainable and efficient operations.
The development and use of advanced materials offer another promising trend. Biodegradable, recyclable, or those made from renewable sources, these materials have the potential to significantly lower the environmental impact throughout a product's lifecycle. Bio-based plastics and composites serve as a prime example, replacing traditional materials and reducing the ecological footprint of both products and processes.
The circular economy model is gaining ground, encouraging practices such as reusing, remanufacturing and recycling materials. This approach minimizes the waste generation and maximizes the life cycle of products. Companies will increasingly design products with disassembly and recycling in mind, to ensure effective recovery and reuse of materials.
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