Remember the moment your flatpack furniture finally took shape (with no pieces missing and your relationships intact)? The last piece slotted in because you got the ‘system’ right. Assorted pieces came together, in the right way, to make a useful item of furniture that was ‘more than the sum of its parts’.

Sustainability is about systems too. Understanding the relationships between a strong bottom line, a flourishing environment and thriving people and communities will help you make your manufacturing business more sustainable.

In fact, you can’t have a healthy business if you don’t attend to all parts of the system.

In this article, we look at systems in your manufacturing business. Drawing on examples from our 2023 articles, we show the opportunities these systems offer to become more sustainable. But first, some background.

Systems in sustainability

The United Nations’ 17 Sustainable Development Goals are a good place to start. They highlight the social, economic and environmental systems that make up our world, plus the links between them.

These systems reinforce one another. Some systems are virtuous. Get one thing right and we fix others too. For example, if we consume and produce responsibly (SDG12), we reduce carbon emissions (SDG 13) and modern slavery (positive impacts on social SDGs 1, 5 and 8).

Vicious cycles are possible too. If we plant soybeans to create renewable bio-diesel (SDG 7), we risk crowding out native plants (SDG15).

Systems in manufacturing

As a manufacturer you’re familiar with ‘systems thinking’, even if you don’t call it this. That’s because your business is a system. For example, when raw materials are unavailable, your production line slows down. You have to re-plan your team’s rosters, your production run, marketing schedule, deliveries and cashflow. Everything’s linked.

Here are some other examples of systems in your business and what they mean for becoming more sustainable.

Your product system

Your product is a system. Raw materials in, product out, the magic of energy, your team’s skills and your plant and equipment in between.

In our March issue we covered circular economy. This economic system keeps products (e.g. a glass bottle) and the materials that make them up (e.g. sand and energy) in use at their highest value for as long as possible.

A circular system benefits manufacturers. For example, it helps Blunt™ Umbrellas build a premium product and brand and engage with customers long after their original purchase.

Blunt has created a strong product system by designing brollies that withstand extreme weather and offering replacement parts and repair centres.

Thinking circular also helps Blunt manage risk. As countries legislate for manufacturers to play a greater role in product stewardship and support the ‘right to repair’, Blunt is well placed to comply.

Wider economic, social and environmental systems

Your business belongs to local and global economic, social and environmental systems. In August, manufacturer Laminex shared how it uses ‘materiality assessment’ to understand these systems and identify and prioritise its ‘material topics’.

These are the economic, social and environmental areas it needs to focus on to make sustainability central to its business.

They’re related. For example, when Laminex reduces carbon emissions, it reduces economic risk. When the manufacturer makes its team’s health, safety and wellbeing a priority, sick days fall and the team is available to support customers.

Your carbon system

Your carbon footprint is a system. In our September and October articles we looked at the three ‘scopes’ (buckets) of carbon emissions (greenhouse gases) that make up your footprint and where they come from. You can reduce your footprint by tackling the sources of emissions that contribute to it.

For example, invest in a fleet of EVs and you’ll reduce your scope 1 emissions. Reduce refrigeration and you’ll cut your scope 2. Send less waste to landfill and you’ll reduce your scope 3.

The climate system

Your business contributes to climate change. In our May article we showed you why you need to help mitigate (reduce) climate change by reducing your carbon footprint.

In this climate system, the impacts go the other way too. Climate change affects your business in physical ways, such as extreme weather (Cyclone Gabrielle).

It has transitional impacts too: relationships and technology change as we move to a lower carbon economy. Identify the climate risks and opportunities your business faces and act on them.

The geo-political system

Your business is part of a trading system. In November’s article, we looked at New Zealand’s new Free Trade Agreement with the European Union (EU). The agreement rewards sustainable business practices.

If you trade with the EU, make the most of this system by promoting your sustainability credentials. And get ready to compete with EU manufacturers who have been making their products more sustainable for years.

Once you see the systems explained in this article, you can’t unsee them. Act on them and you’ll build a more sustainable business.

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