Companies looking to cut costs, improve efficiency, and reduce emissions in the near-term, don’t need to wait for a technological silver bullet to solve their problems.
The answers to many of a company’s most confounding questions around sustainability lie in the ways they empower and enable their product managers.
Product management should be at the heart of any company’s efforts to improve processes – which should improve sustainability (in both a corporate and planetary context).
As industries strive for circular economics, a model that minimizes waste and makes the most of resources, process improvements and existing sustainable technologies that are readily available (and often more accessible for manufacturers) can provide more immediate solutions than technologies that are decades away from commercialization.
By refining product management processes, businesses can significantly enhance operational efficiency, reduce emissions, and move closer to a circular economy without waiting for the next big tech innovation.
Thinking about operational efficiencies also means improving the energy and materials consumption central to reducing operations emissions. And product management is where the exercise of monitoring and measuring Scope 1, Scope 2, and Scope 3 greenhouse gas emissions transforms into industrial action.
Scope 1, Scope 2, and Scope 3 emissions are categories defined by the Greenhouse Gas Protocol to help organizations measure and manage their carbon footprint. Understanding these scopes is crucial for businesses aiming to reduce their environmental impact.
- Scope 1 emissions are direct emissions from owned or controlled sources. This includes emissions from combustion in owned or controlled boilers, furnaces, vehicles, etc. It’s the most immediate category, reflecting the direct impact of an organization’s actions.
- Scope 2 emissions cover indirect emissions from the generation of purchased electricity, steam, heating, and cooling consumed by the reporting company. These emissions occur at the place where the electricity or heat is generated and are then transmitted to the company consuming it. Managing Scope 2 emissions often involves seeking renewable energy sources or more efficient energy use.
- Scope 3 emissions are all indirect emissions (not included in Scope 2) that occur in the value chain of the reporting company, including both upstream and downstream emissions. This can include transportation of purchased goods, waste disposal, and the use of sold products and services. Scope 3 emissions are the most comprehensive and often the largest share of an organization’s carbon footprint, but they are also the most challenging to measure and manage due to their indirect nature.
By categorizing emissions into these scopes, organizations can develop targeted strategies for managing their environmental impacts, from direct operations to broader value chain activities.
Image Credit: Greenhouse Gas Protocol
Consider the adoption of lean manufacturing principles, which focus on minimizing waste without sacrificing productivity. Take the example of a manufacturer whose products had a different form factor for every potential use case, with bespoke parts for each different version of their product. Integrating their devices onto a single platform with modular and standardized pieces rather than unique parts reduced not just complexity in the manufacturing process, but lowered the costs throughout the supply chain, bringing millions of dollars in organizational savings.
Or eco-design, which integrates environmental considerations at the initial stages of product development, ensuring products are more sustainable throughout their lifecycle. These aren’t new ideas, yet their potential for reducing environmental impact is immense and often underutilized in the rush towards more complex solutions.
Moreover, the shift towards using existing sustainable technologies, such as energy-efficient machinery and renewable energy sources, doesn’t just lower emissions—it also sets the foundation for a more resilient and adaptable industry. The controversy arises when the narrative dismisses these “less glamorous” approaches in favor of waiting for a silver bullet technology that may never arrive in time to address urgent environmental challenges.
As early as 2015, the National Institute of Standards and Technology was extolling the virtues of sustainable product management to improve operations and save money.
The NIST pointed to five benefits of sustainable and green product management: reduce energy costs; attract new customers and boost sales; take advantage of tax incentives; improve workforce morale
- Reduce Energy-Related Costs:
- Focus on energy and water cost improvements for long-term savings.
- Utilize energy-efficient lighting and machinery, adjust lighting to production schedules, and inspect equipment regularly to prevent energy waste.
- Adopt solar and wind energy, recycle, and go paperless to reduce utility and supply costs, enhancing the bottom line.
- Attract New Customers and Increase Sales:
- Implement green and sustainable practices to make your company more attractive and marketable.
- Publicizing sustainability initiatives can attract environmentally conscious customers and increase sales, especially important for securing government contracts.
- Leverage technology and social media to highlight green efforts and engage with a broader customer base.
- Tax Incentives:
- Explore federal and state tax credits and rebates for sustainable improvements.
- Resources: U.S. Department of Energy’s website and Database of State Incentives for Renewables & Efficiency provide information on available incentives.
- Boost Workforce Morale and Innovations:
- Sustainability efforts foster teamwork, pride, and a culture of continuous improvement.
- Encouraging employees to take part in green initiatives can lead to innovative solutions for reducing waste and improving operations.
- Societal Impact:
- Sustainable practices contribute to a smaller carbon footprint and fewer toxins released into the environment.
- These actions help future generations through improved air and water quality, reduced landfill use, and increased renewable energy sources.
It’s time to broaden the conversation beyond the next big invention to include the powerful impact of refining what we already have. Product managers can be leaders in the process… if businesses will allow them to do it.