As global industry changes, automation is on the threshold between innovation and sustainability. Since reducing CO2 and sustainable business practices are becoming ever more important, legal frameworks and initiatives are being redesigned to pave a sustainable way forward. Over the next ten years, five key initiatives will be setting the standards for how automation companies operate, innovate and compete. It is important to understand these legal dimensions. This enablescompanies not only to comply with the rules, but also to play a pioneering role in sustainability.
The SBTi encourages companies to set science-based greenhouse gas reduction targets that are in line with the Paris Agreement. The climate targets it has set include direct and indirect emissions. Companiescan influence direct emissions themselves, while indirect targets are dependent on the supply chain. In the automation industry in particular, there is pressure to integrate these emission reductions in order to remain competitive. That means companies could favour suppliers that are actively working on achieving their own climate targets. This can improve brand reputation and strengthen the trust of environmentally conscious customers. Learn more about the SBTi and its goals.
The European Green Deal is a comprehensive collection of EU initiatives aimed at achieving a green transformation. The EU aims to become climate-neutral by 2050 and the consumption of resources should be decoupled from economic growth. This includes various political measures that give rise to specific regulations such as the CSRD and CS3D. For the automation industry, this means switching to sustainable practices, developing products for the circular economy and complying with stricter energy efficiency standards. At the same time, this opens the door to funding opportunities, ascompanies that invest in green innovations will have access to grants and subsidies.
The CSRD significantly expands the requirements for reporting on sustainability for companiesin the EU. The aim is to standardise sustainability reports, make them comparable and ensure greater transparency. Buyers are increasingly demanding credible proof of their suppliers' sustainability promises. This requires reliable data management systems. Companiesthat publish the CSRD standards at an early stage and automate data (down to the field level) can secure competitive advantages through transparent reporting, thus strengthening their market position. Guidelines and details on the CSRD can be found here.
The CS3D aims to promote social and environmental sustainability in the supply chain. Companies need to take a close look at the sustainability practices of their suppliers. Those who do not meet the standards are at risk of liability. At the same time, the CS3D also opens up potential business opportunities, as compliance with the standards is a prerequisite for access to European markets. More information on the CS3D can be found here.
The Energy Efficiency Act stipulates how energy should be utilised. This leads to a more intensive search for efficient solutions and promotes innovations for optimising energy using digitalisation, AI and IoT. This is especially relevant for the automation sector, which plays a key role in industrial energy management. Demand for highly efficient automation solutions will increase ascompanies strive to achieve energy efficiency targets. At the same time, there is a growing need for services that enable the binding improvement in energy efficiency to be achieved.
Tougher ESG regulation and pressure on the value chain created by indirect targets herald a paradigm shift. Sustainability is becoming an increasingly important factor for purchasing decisions in automation. Companiesthat are proactive and invest in next-generation sustainable technologies can strengthen their market position and capitalise on new opportunities. These mainly include savings thanks to lower energy consumption and simplified data analysis, which also leads to more transparent reporting. The costs of complying with sustainability laws must be weighed up against the savings achieved through reduced energy consumption.
The automation industry now has a unique opportunity to take a leading position in terms of sustainability. Buyers play a crucial role in this by choosing partners and products that support and comply with evolving regulatory standards.