The path to sustainable production

Simply producing good products is no longer sufficient today. Companies need to provide evidence of their concern for the environment and people. Fette Compacting has compiled an overview of what lies ahead for the pharmaceutical and food industry along with other manufacturing sectors.

The path to a sustainable future is currently a regulatory challenge. In the European Union, for example, various obligations for sustainability-related reporting are taking effect. With complex material flows and potentially high levels of energy consumption, manufacturing companies in particular are facing major questions: When do I have to fulfill which obligations? How can I take action now to fully exploit my savings potential? What contribution can I make to sustainable production beyond the regulations?

At Fette Compacting Corporate Social Responsibility is centrally anchored in its corporate strategy. The obligations and milestones thereby established equally concern mechanical engineering and its customers and partners. It’s time to obtain a collective chronological overview.

2017

The German Engineering Federation (Deutscher Maschinen- und Anlagenbau (VDMA)), of which Fette Compacting is also a member, has adopted twelve pioneering sustainability principles for production as part of its “Blue Competence” sustainability initiative.

Sustainability principles of the mechanical and plant engineering industry

Strategic:
1. Sustainability is an essential component of our corporate strategy.
2. With sustainable business models, we create stable values and secure our corporate success.
3. Our technology and solutions promote sustainable development worldwide.

Operative:
4. Sustainable ideas and actions are reflected in our processes and products.
5. We act in a resource-conserving manner and are committed to climate protection.
6. Our employees are our most valuable resource. We encourage commitment and participation opportunities.
7. We are committed to respecting human rights.

Cultural:
8. Our company is a living environment.
9. We assume social responsibility in our regions.
10. We keep our promises!

Communicative:
11. We maintain active exchanges with all stakeholders.
12. We communicate our sustainable actions transparently.

2020

The EU taxonomy comes into force. With it, economic activities are to be considered sustainable only if they can be proven on the basis of objective criteria. The EU Commission has defined several target areas for this: climate protection, adaptation to climate change, sustainable use and protection of water and marine resources, transition to a circular economy, prevention and control of environmental pollution, protection and restoration of biodiversity and ecosystems.

Notes for producers:
+ Identify business activities in your company that could fall within the scope of the EU taxonomy. These include, for example, renewable energies, energy efficiency, and low-emission logistics.
+ Check whether your investment projects meet the minimum requirements of the EU taxonomy – do they fulfill the applicable environment criteria, for example?

2021

In Germany, the Supply Chain Sourcing Obligations Act (LkSG) is announced. It stipulates that from 2023 all companies with at least 3,000 employees will be subject to its regulations, and from 2024 all companies with 1,000 or more employees.

Notes for producers:
+ Collaborate with certified partners and suppliers. This will ensure that the entire value-added chain of your production is or becomes sustainable.

2022

The first companies are required to provide evidence of the revenue share of sustainable activities in their business activities in a CSR report.

Notes for producers:
+ Ensure that you avail of the requisite data for reporting with which to evaluate your sustainability activities. Environmental indicators, emissions data and resource consumption, among others, play an important role.

2023

In July, the EU reported the final draft of the standard governing sustainability reporting (European Sustainability Reporting Standards, ESRS).

Notes for producers:
+ Above all, stay up to date! EU taxonomy criteria and legal requirements are still subject to change. Your company should be up to date to ensure you can adapt in time.

2024

The Corporate Sustainability Due Diligence Directive (CSDDD), also known as the EU Supply Chain Guideline, comes into effect for all companies with more than 500 employees. Together with other regulatory initiatives such as the Corporate Sustainability Reporting Directive (CSRD) and the EU taxonomy, it takes an important step toward more sustainable business under uniform conditions. The CSRD obliges all companies with more than 500 employees to report on their sustainability activities. As of 2025, this obligation will apply for companies with more than 250 employees.

Notes for producers:
+ On the one hand, the CSDDD and CSRD regulations are extensive, but they also leave room for interpretation. In particular, companies that are new to reporting should not be afraid to call in external experts who can correctly interpret the requirements and support implementation.

2030

In accordance with the European Green Deal, greenhouse gas emissions in Europe are to have been reduced by at least 55 percent compared with 1990 levels. The concepts of the circular economy should also now be significantly advanced in the areas of mechanical and plant engineering. What this might look like in concrete terms is the subject of the study “Circular Economy 4.0” by VDMA Think Tank Future Business in cooperation with the Fraunhofer Institute for Systems and Innovation Research ISI.

Notes for producers:
As a general rule, manufacturers should start early to establish a sustainability strategy in which they define goals, commitments and measures to reduce environmental impacts. The following aspects are to be considered in the strategy:
+ Invest in the research and development of environmentally-friendly products and services.
+ Examine your energy and resource consumption to identify and remedy weaknesses.
+ Especially in energy-intensive production, it is worth switching to renewable energies to reduce the ecological footprint.
+ In order to minimize resource waste, companies should repair and recondition products, actively promoting the circular economy.
+ Monitor your supply chains to ensure that suppliers also comply with sustainable practices.

2050

The major goal of the European Green Deal is climate neutrality by 2050. Germany wants to be greenhouse gas neutral as early as 2045. On this ambitious path, environmentally-conscious production is becoming a decisive success factor – with major challenges and even greater opportunities.