Creating pathways for manufacturing workforce with a sustainable approach

The Covid-19 pandemic brought to light the vulnerabilities of existing global supply chains. The manufacturing industry, too, felt the impact of the disruptions caused by raw material shortages, production slowdowns, and most of all, the unavailability of skilled labour/talent. Industry leaders have since realigned their priorities with sustainability playing a pivotal role in future business models. The change comes not only to ensure preparedness and build resilient workflows to handle future crises effectively but also to stay competitive and drive growth in the post-pandemic landscape.

Manufacturers are realising the significance of financial and environmental benefits that sustainable business practices can yield. As a result, businesses are keen on incorporating these practices into their ventures. White-collar workers now want to associate themselves with brands that exhibit a conscience for an important cause like the environment and sustainability. The manufacturing industry, which contributes to more than 14.5% of the GDP, needs to integrate cognitive, social, behavioural, and functional skills to accelerate growth and cater to the changing dynamics of the consumer and market.
A recent McKinsey report highlighted that the manufacturing industry is the biggest hub in India for economic growth as well as job creation, this decade. As the economy slowly recovers, India Inc. is witnessing a hiring resurrection. Sectors like garments, textiles, leather, gems, and jewellery saw a positive 24% growth in online hiring demand, with manufacturing and production industries showcasing 8% month-on-month growth. This is perhaps a good time for businesses to restructure their sustainable policies to meet the expectations of their existing and potential employees.

Employees expect their jobs to bring a sense of fulfilment to their lives and there are three major scenarios, according to McKinsey:
o An employee’s purpose from their work is aligned with and fulfilled by the company’s purpose
o An employee is aligned with the company’s stated purpose but does not feel fulfilled by it in their work
o An employee’s purpose is misaligned with, and unfilled by, the company’s purpose

The organisation’s purpose is the only aspect that it can realistically control, and that companies must do so by establishing a corporate purpose that takes into consideration the organisation’s role in society and provide employees with “meaningful ways to reflect on the company’s efforts and their impact”. Having said that, let’s take a look at some key trends that are shaping the manufacturing industry, and how these resonate with an employee’s personal values.

• The Use of Biobased Materials: Manufacturers are increasingly looking for bio-based materials that do not compromise on performance or quality. Investing in the development of products derived from materials such as vegetable oil or castor oil with adjustable Bio carbon content allows for a biomass balanced approach which drives the use of renewable resources and sustainable manufacturing processes.
• The Reduction of CO2 Emissions: While many companies are pledging to achieve net-zero on their CO2 emissions, BASF plans to invest up to 4 billion euros over the next decade to achieve this goal through technology, including improvements to production plants and a switch to renewable sources of energy. This has led to the development of more environmentally friendly products, including artificial leather solution Haptex which emits 30% less greenhouse gases and uses 25% less energy during its production process vis-à-vis traditional solvent-based PU leather products. As per the Power Minister of India, the country will reduce more than the targeted 33% carbon emission by 2030.
• The Rise of Recycling: Many products are now made with the circular economy in mind. Along with the use of biobased materials, the concept of mass balance has gained prominence. This refers to the recycling of plastic or organic waste as feedstock, reducing the need for fossil feedstock so that fossil resources can remain in the ground.

An organisation’s investment into sustainability helps them derive a sense of purpose from their work. It helps them realise that they are indeed contributing to making this society a better place for everyone. An authentic commitment to sustainability has benefits for both the revenues and talent retention strategies of manufacturers and brands. It creates a positive cycle where the organisation answers the sustainability concerns of employees, who in turn help the company to develop sustainable products and solutions that customers want.

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