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The Importance of Sustainable Manufacturing

September 15, 2021 | By Ronnie Salonga
The Importance of Sustainable Manufacturing
    September 15, 2021

What is the importance of sustainable manufacturing?

  1. Gives your company a competitive edge 
  2. Grants access to niche markets for increasing sales
  3. Conforms to environmental regulations
  4. Attracts new employees   

More and more companies are realizing the importance of sustainable manufacturing and are beginning to incorporate green practices into their operations. Sustainable manufacturing is defined as the creation of products through economically sound procedures that reduce negative environmental impact while preserving natural and energy resources. 

The manufacturing industry is known as one of the largest contributors to greenhouse gas emissions worldwide. Today, driving toward sustainability goals is expected from manufacturers as the concern for climate change increases. Climate change results in irreversible consequences to global societies throughout this century and beyond. Damages to ecosystems, water supply, human health, agriculture, and food security are expected to wreak havoc on communities and livelihoods. 

Going beyond mitigating climate change, embracing sustainable manufacturing offers plenty of benefits for your company. If you’re still skeptical about adopting sustainable manufacturing practices, we put together a guide on what exactly it can offer your business. Read on. 

Gives Your Company A Competitive Edge 

Protecting the planet is quickly becoming a priority for everyone. Customers are looking for sustainable brands and brands are looking for manufacturing companies that practice sustainability to boost their value propositions. With customers paying more attention to reducing their environmental impact, sustainable manufacturing is set to rise to popularity. Now more than ever is the best time for companies to adapt to this need.

By embracing sustainable manufacturing practices, you can hold a competitive edge. You remain relevant in the market because you offer a unique selling point (USP). It becomes easier for your target market to distinguish your company from competitors that are deemed as caring only for profits over people.  

Grants Access To Niche Markets For Increasing Sales
Grants Access To Niche Markets For Increasing Sales 

Adopting sustainable manufacturing not only makes your company relevant for your current target market, but also other niche markets. You can easily grab the attention of environmentally conscious demographics, which can increase sales. In addition, you will find it easier to make your company more marketable. It is a fact that customers purchase from companies that reflect their values and beliefs.

Alternatively, failing to adopt sustainable manufacturing could harm driving your sales capabilities. A report shows that 76% of millennials are focused on the environment — a sentiment they use for making purchasing decisions. More than two-thirds of the respondents also said they are willing to pay more for products that focus on sustainability. This is the primary reason why industrial parks in the Philippines that house large-scale manufacturing companies practice sustainability as well. 

It is known that manufacturing companies generate tons of waste during their day-to-day operations. Industrial park developers like Science Park of the Philippines, Inc. (SPPI) empower manufacturing companies to manage waste in their operations and reduce pollution in the environment significantly. SPPI’s Light Industry & Science Park IV (LISP IV) is an industrial park in Batangas equipped with a centralized wastewater treatment plant that treats wastewater effluents generated by manufacturing locator companies daily. Afterward, the effluents have been treated, the cleaned water is discharge to river without harming the environment.

Conforms To Environmental Regulations 

Another importance of sustainable manufacturing is that is you can ensure your company conforms to environmental regulations. In the Philippines, the Ecological Solid Waste Management Act of 2000, the Philippine Clean Air Act of 1999, and the Clean Water Act of 2004 are some of the environmental regulations mandated by the government to protect the country’s natural resources. Any inflicted damage to the environment done by a company — whether directly or indirectly — will levy a “green tax”, which can be costly for operations.  

Alternatively, companies that practice sustainable manufacturing can enjoy fiscal tax perks from the government. According to the Republic Act (RA) No. 10771 or the Philippine Green Jobs Act of 2016, “green” businesses can benefit from a special deduction from income tax of up to 50% of total expenses for research development and skills training expenses. In addition, tax and duty-free importation of capital equipment are offered if green jobs are promoted within the business. 

If you practice sustainable manufacturing by engaging in climate change mitigation,  green technologies, green building, production and provision of green goods and services, projects that promote the green economy and green jobs, you not only ensure your business is following regulations but you are also entitled to avail these fiscal perks.

Attracts New Employees
Attracts New Employees

As seasoned employees are continuously aging out of the labor force, the manufacturing skill gap is widening more and more each day. If you don’t have the right talent on board, you may end up with unproductive and inefficient manufacturing operations. 

A growing body of research clearly states that 65% of respondents are more likely to work for a business with strong environmental policies. Employees, especially highly-skilled millennials employees, want to work for environmentally and socially responsible companies. This being said, one of the best ways to appeal to job seekers is to show your commitment to sustainable manufacturing. 

Key Takeaway

With all the benefits listed above, it’s easy to realize the importance of sustainable manufacturing for the environment and your business. 

As a leading industrial park company in the Philippines, SPPI houses some of the biggest Fortune 500 companies and multinational companies working in the field of manufacturing. We believe it is our responsibility to protect the ecosystem in which we all live, which is why we empower our locators to embrace sustainable manufacturing while boosting their operational productivity. 

For more information about SPPI industrial parks, contact us.

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