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With manufacturing and production responsible for 20 percent of global carbon emissions¹, the pressure is rising on industries to decarbonize. At the same time, demand for manufactured goods continues to grow – the global electrical enclosures market, for example, is expected to grow by around 67 percent by 2032². Future-proofing factory operations is therefore more critical than ever.

Factory buildings themselves are part of the equation, yet 80 percent lack the automation or digitization needed to drive meaningful improvements3.

Smart, modular and easy to implement web-based platforms now enable systems like heating, ventilation, air conditioning, and energy management to integrate seamlessly, generating a single, unified view of how efficiently and effectively a building operates. Building Management Systems are not only measuring and monitoring but also allowing control and smart automation to drive efficiency and energy consumption reduction. Armed with this granular data, facility managers can then take proactive steps to reduce energy usage, greenhouse gas (GHG) emissions and costs.

In this article, we will discuss how industry 4.0 innovations like AI and machine learning, combined with circular economy models and the integration of renewables, are empowering manufacturers to reduce factory greenhouse gas emissions while maximizing production and profits. We also share how ABB’s Mission to Zero™ program is shaping the factories of the future by combining digital technologies and renewable energy into scalable and replicable solutions.

Smart energy management as a strategic advantage

With energy costs rising and sustainability regulations tightening, real-time energy management systems help manufacturers monitor, control, optimize and reduce consumption, forecast demand, hedging from energy costs variation and prevent waste. These systems not only unlock operational savings but also offer resilience against volatile energy markets.

Visibility into energy performance is also vital for both internal sustainability KPIs and external reporting obligations. As supply chains become more focused on environmental performance, working with partners that demonstrate credible sustainability credentials is becoming a strategic differentiator and competitive advantage.

Digital tools such as ABB’s InSite energy management system enable manufacturers to monitor, analyse, control and optimize their energy usage in real time. Designed specifically for electrical distribution systems in commercial and industrial buildings, InSite offers actionable insights into energy consumption and system performance. By visualizing load profiles, detecting anomalies and supporting remote diagnostics, it empowers facility managers to make informed decisions that reduce energy waste, lower costs and support emissions targets.

Circular manufacturing and integrating renewables

Customers are looking for products and solutions designed with sustainability, durability, and recyclability in mind. Incorporating circular principles like material recovery, design for disassembly, and waste minimization helps manufacturers meet these expectations while reducing their environmental impact.

Unfortunately, global material extraction continues to rise, and circularity has dropped from 9.1 percent in 2018 to just 7.2 percent in 2023⁴. Moving away from the “take-make-dispose” model toward

a “reduce-reuse-recycle” approach allows manufacturers to cut waste and preserve resources, while supporting longer product life cycles and innovation.

In parallel, many industrial operators are introducing on-site renewable generation, including solar and wind, to reduce reliance on fossil-fuel grids. When paired with smart systems, these sources provide a cleaner, more self-sufficient energy base.

Geothermic heating systems could be as well considered a kind of energy generation or 'closed cycle’ circular model, considering that heating waste from production process in warm seasons is stored to be then reused for heating during cold months.

As part of ABB’s Mission to Zero™ program – a global initiative to decarbonize operations using digital and renewable technologies – the company’s flagship site in Lüdenscheid, Germany, has reduced its annual CO₂ emissions by 750 tons through a combination of solar energy, digital optimization and energy-efficient systems⁵.

Customer trust and employee engagement

Technology is only part of the story. People – employees, customers, and communities – are essential to delivering and sustaining meaningful climate action.

Just as customers, from public infrastructure bodies to Original Equipment Manufacturers (OEMs), demand demonstrable action from suppliers, employees increasingly want to work for companies that share their values and are actively addressing sustainability. Empowering people with data and purpose helps build stronger stakeholder relationships and makes progress tangible.

That’s why ABB’s Mission to Zero™ is more than a set of technologies; it’s a scalable blueprint and suite of proven solutions for manufacturing sites to reduce emissions and boost energy efficiency. Built on ABB digital platforms and renewable energy, it provides a replicable roadmap for factories worldwide, particularly in energy-intensive or fast-growing markets.

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Case study: people power in Santa Palomba

To date, 25 manufacturing facilities have led the way in cutting emissions and energy use based upon this model. One of these, a production site for ABB residual current devices and energy meters in Santa Palomba, Italy, has reduced its CO2 emissions by 675 tons a year. In addition to its existing renewable sources, a new photovoltaic system supplies a quarter of the site’s energy⁵.

The Santa Palomba site has also achieved UL Certified Zero Waste to Landfill Platinum status – the highest level of a globally recognized benchmark for waste diversion. 100 percent of the site's waste is now reused, recycled, or recovered, with nothing sent to landfill. This milestone reflects ABB’s commitment to circular manufacturing and resource efficiency, with several other sites worldwide also progressing toward or achieving the same certification.

The team at Santa Palomba collaborated with a logistics partner to implement an innovative smart grid project within an Energy Community concept. More than 3,000 PV panels installed on the company’s warehouses next door to the ABB site now provide a peak power of 1.52MW. In the spirit of joint action, PV shelters in the car park help power 17 electric charging stations for the fleet of electric and plug-in hybrid company cars.

To monitor and optimize energy consumption, ABB AbilityTM building management software tracks energy consumption in real-time and helps the site manage efficiency on the most energy-intensive systems such as air conditioning, the compressed air system, air intake and lighting (already 100 percent LED). By the end of this year, Santa Palomba plans to replace its boilers with high-efficiency heat pumps.

Creating local value and greener communities

The digitalized, decarbonized factories of the future promise more than emissions reductions. They bring healthier environments, skilled ‘green’ jobs, and stronger local energy resilience. When combined, Industry 4.0 tools, processes, circularity, and renewable energy provide the capabilities manufacturers need today, to transform operations and support thriving, sustainable communities.

The question is – what role will your factory play in the sustainable transformation?

Text: Gianluca Cassanova Photo: ABB