Laying the foundations for the CLEANfield factory of the future

By Christian Böhler, Hannah Zühlke and Lasse Adler

Manufacturing is entering its most exciting phase: Next Generation Manufacturing. Global megatrends have reached a tipping point, offering a unique opportunity to turn manufacturing from a perceived liability into a real asset. As one of these trends, sustainability is becoming increasingly important. Companies need to think more holistically, which means expanding the classic ‘quality, cost, delivery’ model to include environmental and social sustainability.

This shift offers major opportunities for factories, from creating more sustainable products to generating new business value. But instead of concentrating on these opportunities, most industrial companies see a growing number of threats as the main motivators to change. Environmental regulations, consumer and investor preferences, surging energy costs – the pressure to reform comes from multiple angles and is rising fast.

For centuries, the manufacturing sector has been under constant pressure to optimize cost structures and operational efficiency. But competitiveness is broadening, with environmental and social sustainability increasingly important parts of a new paradigm – with good reason. According to the International Energy Agency, energy-intensive industrial combustion and processes accounted for 22% of global greenhouse gas (GHG) emissions in 2023, while rising stress on the Earth's natural resources, such as water, is seriously impacting manufacturing.

This undoubtedly increases the pressure on industrial companies. But it also presents huge economic opportunities. The World Economic Forum estimates that nature-positive transitions, for instance, could generate up to USD 10.1 trillion in annual business value and create 395 million jobs by 2030.

To do this, the truly sustainable factory needs to go beyond cost and energy efficiency to include a holistic view on a wide range of sustainability factors. Whether firms are optimizing existing plants (brownfield) or opening up new ones (greenfield): the core of a visionary, sustainable factory needs to be a CLEANfield factory.

Our vision for the green factory of the future

But what does the cleanfield, sustainable factory of the future look like? Roland Berger has created a bold and comprehensive vision, focusing on discrete manufacturing factories throughout the world, driven by three overarching factors:

1. Optimal location and property, including sustainable materials and shared energy resources
2. Zero-emission energy and zero pollution, embracing circular economy principles
3. Fair working conditions and measurability, driven by careful integration of technology

Making substantial changes to a business of any size can be complex. But the pressure to act is rising and inaction could be costly. Environmental and economic sustainability will become increasingly intertwined and we believe companies can implement steps that benefit the environment and create financial value.

To help companies achieve this balance, we have created a comprehensive roadmap of short- and long-term steps to set up the green factory of the future, which sit within the three building blocks listed above.

Building block 1: Optimal location and property

While many companies may look first to manufacturing processes, they must also address their properties. Buildings and infrastructure consume 20-40% of a factory's energy and the inefficiencies of many older factories in particular make decarbonization improvements a vital step. This is a serious challenge, especially in light of the massive investment required across the board for decarbonization, not just for sustainable factories.

It is important to distinguish between greenfield and brownfield sites here. Existing locations are likely to have evolved over decades; making them truly green is extremely challenging. As such, companies should focus on improving building conditions where possible. When building greenfield facilities, manufacturers will need to consider using carbon-neutral resources such as green cement and steel as well as integrating renewable energy infrastructure.

We also believe energy clusters can help. Today, most factories operate as standalone facilities, but by building new factories within local clusters, or establishing entirely new clusters, companies can maximize resource sharing, reduce costs, and benefit from economies of scale.

Building block 2: Zero-emission energy and zero pollution

Achieving carbon neutrality should now be on every company's radar. The first step will be to obtain a clear picture of emissions, particularly with offsetting no longer an option. Key steps toward decarbonization include reducing energy consumption, switching energy sourcing, and repurposing emissions via carbon capture and utilization technology.

Circular practices can bring major benefits to manufacturing. By reducing and recycling scrap, lowering material consumption, and recovering end-of-life products, factories can significantly reduce their carbon footprint, especially for energy-intensive processes that emit GHGs by design.

It's also important to think beyond airborne emissions. Manufacturing can impact numerous parts of the environment, including soil, water systems, and biodiversity. Water, which is fundamental to many manufacturing processes, is particularly important, especially as the global gap between water supply and demand is expected to rise by up to 40% by 2030. Alternative water supply solutions and increased water recycling and reuse rates are the watchwords here.

Building block 3: Fair conditions and measurability

The third and final building block for the cleanfield factory of the future focuses on creating a high-performing, optimized working environment. Full transparency over all sustainability-related metrics is fundamental. Unfortunately, this remains an area that many companies underperform in.

But technological innovation, in the form of IoT and smart devices, is changing this, providing increasingly detailed insights into sustainability performance. This can benefit a company's internal strategy and be valuable for external processes such as sustainability reporting and certification.

Lastly, true sustainability doesn't just apply to the environment – the cleanfield factory of the future must also be socially sustainable. Growing demand for improvements in human rights and working conditions has heightened the awareness of work practices and the importance of diversity and equality in maintaining productivity and sustained performance. Only by offering fair, rewarding work will companies attract, develop, and retain the employees needed to shape the products of the future.

Achieve environmental, social, and economic benefits

Make no mistake, transforming existing manufacturing facilities and building new ones will be challenging.

But in addition to the environmental and social benefits of prioritizing sustainability, cleanfield factories can bring numerous economic benefits. Reduced consumption of energy and materials can boost the bottom line, as can a reduction in the risks and costs associated with regulatory violations. Meanwhile, top-line benefits include a potential revenue increase via new eco-friendly products and services, as well as improved brand reputation and customer loyalty.

For further information on our vision for the sustainable, cleanfield factory of the future, including case studies and further details on action steps and the keys to success, download the full publication.

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