Sustainable production: Minimizing environmental impact
Sustainability in industrial production is no longer just a corporate responsibility, it’s a competitive imperative. As industries face increasing regulatory pressures, rising resource costs and changing consumer expectations, integrating sustainable practices is essential for long-term resilience. Beyond reducing environmental impact, sustainable production improves efficiency, drives innovation and enhances brand reputation. Companies that embrace sustainability are better positioned to attract top talent, meet evolving market demands and future-proof their operations in a rapidly changing global landscape.

Kestria’s Industrial/Production Practice Group conducted a global external survey to explore the current state of sustainable production practices in various industrial sectors. The survey aimed to gather actionable insights to help organisations evaluate practices, identify improvements and adopt effective sustainability strategies. It assessed decision-makers’ awareness, attitudes and challenges while comparing sector-wide efforts to highlight best practices and opportunities.

The insights were gathered from over 100 senior executives from more than 30 countries and six continents. The respondents come from organisations of all sizes, ranging from small businesses to large enterprises. The survey C-level executives as well as technical, product, HR, and specialist roles, offering diverse industry insights from key decision makers.

Top 5 key findings

Companies are making progress, but few have fully integrated sustainability

Most organisations are actively working towards sustainability, with many reporting moderate to advanced progress. However, only a small proportion have fully embedded sustainable practices, while a minority have taken nosteps at all. The most commonly adopted measures include waste reduction, recycling, automation, energy efficiency and carbon footprint reduction. This highlights a growing commitment, but also underlines the long journey ahead for full integration.

Cost remains the biggest obstacle

The financial burden of implementing sustainable practices is the main barrier cited by organisations. Many struggle with the high upfront investment required for renewable energy, sustainable materials and new technologies. Other significant challenges include a lack of expertise, limited availability of sustainable materials and external market pressures such as low customer demand for sustainable products. These factors demonstrate that while the intention is there,, practical constraints are slowing down progress.

Sustainability is seen as an advantage, but not by everyone

While some organisations view sustainability as a strategic advantage, improving efficiency and brand reputation, others remain sceptical about its direct business benefits. The survey revealed that many companies see only moderate value in sustainability as a competitive advantage,, while some report little or no benefit. This divide suggests that companies integrating sustainability successfully are reaping the benefits, while others may need better strategies to align sustainability with business goals.

Corporate social responsibility (CSR) is the biggest driver of sustainability efforts

More than regulatory compliance or customer demand, CSR stands out as the primary driver of sustainable production efforts. Companies are increasingly recognising their ethical responsibility and long-term reputation as key factors in adopting sustainable practices. While regulatory complianceand market pressures remain strong influences, the emphasis on CSR suggests a shift towards viewing sustainability as a core business value rather than just a requirement.

Renewable energy and innovation present the biggest opportunities

The survey highlights clean energy, efficiency improvements and supply chain innovations as the most promising areas for sustainable progress. Many companies see transitioning to renewable energy, such as solar, wind or hydro as a way to reduce emissions and long-term costs. Optimising supply chains through local sourcing, smart grids and sustainable materials also offer significant opportunities. Those that lead in these areas, are more likely to gain a long-term competitive advantage while meeting sustainability goals.

Turning sustainability intent into action

The survey results show  that while sustainability is gaining ground in industrial production, the journey towards full integration remains uneven. Most companies recognise its importance, but significant barriers, particularly cost and expertise, continue to hinder progress. The divide in how organisations perceive the business impact of sustainability suggests that those that are effectively embedding sustainable practices are seeing clear benefits, while others are struggling to align these efforts with their strategic goals.

To bridge the gap between intention and action, companies need to adopt a structured and scalable approach to sustainability:

  1. Shift from cost to long-term investment – View sustainability as a long-term investment that boosts efficiency, reduces waste and builds resilience. Use financing options, incentives and partnerships to ease initial costs.
  2. Leverage technology and innovation – Digitalisation, automation and clean energy improve sustainability cost-effectively. Investing in energy-efficient processes and smart solutions ensures impact without sacrificing efficiency.
  3. Integrate sustainability into core business strategy – Leading companies see sustainability as a competitive advantage, not just compliance. Aligning it with business objectives enhances reputation, attracts talent and ensures market relevance.
  4. Strengthen collaboration across the value chain – Work with suppliers, customers, and policymakers to drive sustainability. Transparent reporting, best practice sharing  and supplier engagement accelerate progress.
  5. Build internal expertise and accountability – Address knowledge gaps through training and leadership roles. Setting clear KPIs ensures that sustainability is integrated into business operations, not just an aspiration.

Sustainability in industrial production is no longer an option - it is a strategic necessity. The organisations that proactively integrate sustainable practices will not only reduce their environmental impact but also future-proof their business against economic, regulatory and consumer shifts. Now is the time for companies to move beyond intentions and take decisive action towards a more sustainable, competitive and resilient future.

For the full report visit this link

Kestria’s Industrial/Production Practice Group is the ideal partner for international manufacturing companies, because we speak their language and have extensive knowledge and experience of their industry, technologies and organisational structures, while embracing diversity and providing boutique-level commitment and passion to deliver senior talent.

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