From energy efficiency to circular manufacturing. By Gianluca Casanova
Manufacturing is both the engine of economic growth and one of its most resource-intensive sectors, responsible for around 20 percent of global carbon emissions. Demand for manufactured goods keeps rising, and whether it’s electrical components or consumer electronics, the expectation is the same: more, faster, cheaper.
If the past decade of manufacturing focused on energy efficiency, the next will focus on circularity, embedding sustainability not just in how factories are powered, but also in how they source, design, and reuse materials. The shift has begun, and is being accelerated by digital energy platforms, which are finally revealing one of industry’s greatest blind spots: where energy is really being consumed, wasted, or lost.
From blind spots to insights: why energy data matters
For much of the past century, efficiency was treated as something to tackle once production targets had been met. Today, it has become essential as rising costs and stricter reporting rules mean manufacturers need to know exactly where their energy is going.
This is where digital energy management platforms are transforming operations – turning data into actionable insight. Plants using digital energy management platforms, such as ABB’s Mission to Zero™ sites, typically cut consumption by ten to 25 percent through improved monitoring, control, and predictive optimization (ABB internal data, 2025, Gianluca’s Discover session).
Investors, regulators, and customers now expect tangible proof of progress, making energy records as critical as financial accounts. Digital solutions such as ABB’s InSite energy-management system turn consumption data into insight, helping manufacturers cut costs, lower emissions, and build resilience in volatile energy markets.
The material challenge: moving from linear to circular
The bigger question is what goes into the factory in the first place. Global extraction of raw materials keeps climbing, while the share of materials cycled back into use has fallen from nine percent in 2018 to just seven percent in 2023.
Manufacturers are gradually moving away from the traditional ‘take-make-dispose’ model toward circular approaches that emphasize reuse and recovery. Recycled plastics are being introduced into raw material and components without compromising technical performances, while metals raw process scrap is being circled back into the supply chain rather than sold or disposed.
Barriers remain – higher costs, limited supplier capacity, and lengthy certification processes both of raw materials and products. These are all symptoms of an industrial system still optimized for linear production rather than circular recovery. Yet adoption is growing. Independently certified Zero Waste to Landfill programs prove it’s possible to divert 100 percent of factory waste into recycling, reuse, or recovery, driving cultural change and setting new benchmarks for the wider sector.
At ABB, this transformation is well underway. Zero Waste to Landfill is not just a compliance target; it represents a cultural shift across manufacturing operations. Redesigning value chains, re-training teams and replacing long-standing processes with sustainable ones have all been key to progress.
Circularity also extends to materials. When ABB introduced biomass-balanced plastics into its wiring accessories line in Porvoo, Finland, the team had to recalibrate molding tools, redesign quality checks, and manage customer expectations. Each new material requires recertification, a reminder that circular inputs aren’t a simple swap but a full operational transformation.
Low-carbon manufacturing in practice
ABB’s Mission to Zero™ initiative demonstrates low-carbon manufacturing in action. At the company’s Rakovski site in Bulgaria, CO₂e emissions have been reduced by 1,250 tons through measures such as installing heat pumps, upgrading to LED lighting, and optimizing energy use across operations. The factory has cut overall energy consumption by 22 percent and improved energy productivity by 43 percent compared to 2019, showing how smart choices can drive real progress toward net-zero manufacturing.
ABB’s Santa Palomba facility in Italy provides another example. More than 3,000 photovoltaic panels generate 1.52 MW of peak power, supplying both factory operations and electric-vehicle (EV) charging stations. The integration of ABB Ability™ software optimizes HVAC, compressed air, and lighting systems so they operate only when required, cutting a further 675 tons of emissions each year.
Similar results are emerging across additional facilities in Mexico, Finland, and Switzerland, where waste heat from manufacturing is recovered through heat-pump systems and redirected into district-heating networks. At ABB’s Porvoo site in Finland, for example, the introduction of a geothermal storage system has reduced district heat usage by more than 90 percent. Together, these initiatives demonstrate how energy optimization and smart technology can deliver meaningful decarbonization at scale.
People and partnerships
Technology provides the foundation, but people and partnerships drive progress, as customers and suppliers increasingly expect proof of climate action.
This is reshaping how manufacturers operate. Suppliers are now asked to provide detailed, product-level carbon footprints, creating greater accountability across the value chain. Sustainability has moved from the margins of presentations to the center of commercial negotiations, influencing supplier engagement and the very terms of customer trust.
Manufacturers that demonstrate transparency and measurable progress not only cut emissions but also strengthen their position in global supply chains. In this way, sustainability has evolved from a reputational advantage to a core business differentiator.
Building value beyond the factory gate
The impact of sustainable manufacturing extends well beyond the factory walls. Digitalized, low-carbon facilities strengthen local energy systems and create skilled jobs that power the clean energy transition. Manufacturers can deliver both operational efficiency and long-term value for their communities.
The factories of the future will be defined not only by what they produce, but by how intelligently they use resources, design for circularity, and empower people through technology. Those that act now – digitizing operations, closing material loops, and embedding sustainability at every level – will set the benchmark for a new era of manufacturing.
In doing so, they’ll prove that the factories of the future are not a distant vision, but the most competitive factories of today.
Gianluca Casanova
Gianluca Casanova is Procurement & Operations Excellence Leader for the ABB Smart Buildings Division. ABB’s Smart Buildings division is a world-leading provider of energy distribution and building automation, making buildings safer, smarter, and more sustainable. From single-family homes to multi-dwellings, commercial, and industrial buildings, its innovative solutions cover everything from DIN-rail protection devices, enclosures, and wiring accessories to comprehensive building automation, energy metering, and management systems.