Harnessing the power of data can help organisations achieve their carbon reduction targets in many different ways. Improved operational efficiency or optimised energy management are just a few of the many possible steps. Like gaining insight into the actual carbon footprint as a basis for decisions.
As the world followed the UN climate conference in Glasgow, the pressure on the manufacturing industry to reduce carbon emissions has increased. Companies are rising to the challenge, but much more needs to be done to control climate change. Digitisation is part of the solution. The power of data has much to offer. Such as eco-friendly manufacturing, efficient logistics, better building and energy management and optimised production of renewable energy.
The manufacturing industry bears a particular responsibility
Huge efforts will be needed to meet Europe's 2050 climate targets. Industrial production bears particular responsibility in this regard. Annual emissions total 775 million tonnes of CO2 (2019). With a 22% share of Europe's total CO2 emissions, the manufacturing industry is the third-largest emitter. Preceded by energy and transport sectors. Therefore, this industry has a particular responsibility to reduce emissions. Moreover, the industry is stimulated by stricter environmental regulations and increasing government pressure.
How are top players doing
The power of data can, for example, help the manufacturing industry to correlate multiple data sources in complex production environments in order to save energy and protect the environment. To give a few examples: Honda, for instance, uses data to develop a Machine Learning Toolkit. This enables them to proactively optimise the business-critical curing oven in the paint shop to better protect the environment. But consider also how data can help to increase logistical efficiency and introduce groundbreaking new technologies. Porsche uses data to develop the charging infrastructure for the new, fully electric Porsche Taycan. The power of data can help companies avoid, minimise, limit and/or offset their environmental impact. Gatwick Airport reduced noise levels and its carbon footprint around the airport by utilising data.
Make a plan with the right people and tools
While data sources offer huge potential, it also brings a number of practical challenges. For a start, just getting a basic understanding of what is available requires considerable effort. This is because the data environment is fragmented and rapidly expanding. Also, analysing the quality and economic value of data products can be difficult. Moreover, efficient use and operationalisation of external data may require adapting the organisation's existing data environment. Including changes in systems and infrastructure. Companies must also take into account privacy considerations and consumer control when using certain types of data.
Data scout or strategist
For starters, there needs to be a dedicated data scout or strategist working with the data analytics team and business functions. To identify operational, cost and growth improvements that can be fuelled by data. It is also crucial to use a platform that allows data to be explored, monitored, analysed and acted upon with insight.
Moreover, it is important to capture the imagination of the management team and build enthusiasm for scaling up after the initial pilots. An effective route is to start with a small team focused on using external data to solve a well-defined problem. Then use that success to create momentum for expanding external-data efforts throughout the organisation.
That said, a well-structured plan with the right tools to use data can provide a competitive advantage. While most companies are working on new ways to make their core operations carbon-free, they now have the opportunity to advance their net-zero ambitions in a meaningful way. By transforming data activities, including data processing, storage and analytics, that also support business operations. Only together can we meet Europe's climate goals, and it would be great if we succeeded well before 2050.
Ewald Munz, Head of IoT and Manufacturing at Splunk
