Sustainability is now a strategic priority for manufacturers facing unstable energy prices, net-zero commitments, and evolving regulations. Mark Venables reveals how the new EU Corporate Sustainability Reporting Directive is accelerating this shift, requiring companies to report on their societal and environmental impacts from next year.
Unstable energy prices, stakeholder pressures, and net-zero commitments have driven sustainability to the top of manufacturers’ agendas in recent years. The urgency has now been further amplified with the introduction of the EU’s Corporate Sustainability Reporting Directive (CSRD), the first major mandate that will require companies to report on the societal and environmental impacts of their activities starting next year. This shift comes as manufacturers look to innovate their processes to comply with evolving regulations while making meaningful progress toward net-zero targets.
Rockwell Automation is at the forefront of these efforts, supporting businesses in understanding and achieving these goals. Emmanuel Guilhamon, Global Sustainability VP at Rockwell Automation, believes the challenges and opportunities presented by this shift are substantial and transformative. He argues that with advances in energy management and artificial intelligence (AI), the tools are finally available to turn ambitious sustainability targets into practical action.
Balancing net zero and profitability
Today, manufacturers are caught in a difficult balancing act, needing to comply with increasingly stringent sustainability regulations while maintaining their competitiveness. Emmanuel Guilhamon is frank about the scale of the challenge. “Companies like Rockwell face several major hurdles,” he notes. First, evolving reporting requirements keep shifting, depending on where you operate. It is not just the EU; local directives are also from places like California and New York. Each regulatory framework has its own expectations, and keeping up can be an operational burden.”
The second challenge, he explains, is meeting ambitious net-zero targets. “We are all striving to lower carbon emissions,” he continues, “which involves Scope 1, 2, and 3 emissions, which requires significant investment. This challenge is not purely technical; it’s financial, organisational, and strategic, and it demands collaboration across value chains.”
Then is the economic dimension: “We have to make these reductions while still being profitable,” he says. “We are all here to satisfy our shareholders and keep our business moving forward. These challenges would be easier to solve if funding were unlimited, but we all face economic realities. Technological advances are essential for companies to meet reporting and emissions requirements while remaining economically viable.”
AI enables a scalable response
One of the key enablers for progress towards sustainability is AI. It is a buzzword and an evolving toolkit that can drive significant efficiencies across manufacturing operations. For Guilhamon, AI represents a critical differentiator in how industries tackle the pressing need for emissions reduction, particularly for new energy solutions such as green hydrogen. “Green hydrogen, for example, is essentially an issue of scalability,” he points out. “Fossil fuel industries have been around for decades; they are optimised and scaled. To make green hydrogen competitive, we need to turbocharge its scalability, and that’s where AI becomes invaluable.”
AI, Guilhamon explains, can exponentially drive down the cost of scaling such green solutions by optimising processes more intelligently than traditional methods could. “AI does not just work in a linear way; it enables exponential improvements. The machines are now able to not only execute but also optimise processes continuously,” he elaborates. “In manufacturing, AI can spot inefficiencies and make adjustments on the fly, saving energy, reducing waste, and speeding up production.”
The case for AI is further strengthened by its ability to drive rapid transitions. “Think of the rapid transition from horse-drawn carriages to motor vehicles on Fifth Avenue in New York between 1900 and 1913,” Guilhamon says. “That happened because cars made business sense. The same applies here; an energy transition can be swift and effective if a compelling business case exists. AI helps create that business case by making sustainability economically viable.”
Energy management tools: more than just compliance
The introduction of the CSRD means companies will soon be required to report their carbon footprints and demonstrate continuous improvements in emissions. According to Guilhamon, “The EU’s Corporate Sustainability Reporting Directive is not just an administrative task. “It is a paradigm shift that brings sustainability to the boardroom table. It makes energy management a strategic imperative rather than just a tick-box exercise.”
For businesses to comply, they must first understand their energy consumption at a granular level, which is where modern energy management tools come into play. “Energy management tools are non-negotiable now,” Guilhamon insists. “These systems provide the visibility that organisations need to understand where they are inefficient and where changes can be made. Without this data, it is impossible to comply with the new regulations or to optimise for efficiency.”
Energy management solutions go beyond merely keeping companies compliant. They also present an opportunity to embed sustainability into everyday operations. By integrating energy tracking into broader operational data, manufacturers can make decisions that reduce costs while also contributing to their net-zero commitments. “The cost of energy is volatile, and companies are under pressure to optimise,” he adds. “With the right tools, you can achieve that optimisation in a way that also meets your sustainability targets. It is a win-win.”
Collaboration and the power of shared innovation
No single entity can solve the sustainability challenge alone. Guilhamon emphasises that achieving net zero is about collaboration across industries, sectors, and borders. “We must each do our part,” he states, “and there is no point in individual companies holding back the best ideas for competitive advantage. Sustainability is about collective progress. We must share and collaborate, so forums like Climate Week and sustainability conferences are critical.”
Rockwell Automation, he says, is actively participating in such collaborative efforts by working with both customers and partners to share solutions. “We work closely with system integrators and other partners to ensure we are meeting today’s sustainability requirements and building the tools for tomorrow,” he says. “The company’s expertise in industrial processes and their integration with digital tools means it can support clients regardless of where they are on their sustainability journey, from early assessment to full-scale implementation.”
Consulting services are also a vital part of the mix. “Consulting services can help accelerate this journey by applying lessons learned across different industries,” Guilhamon continues. “We have repeatedly seen no need to reinvent the wheel. The solutions are out there; consulting teams can help identify and implement them more efficiently than trying to do everything in-house.”
Aligning short-term actions with long-term goals
The complexity of the journey to net zero means that a phased approach is necessary. Guilhamon acknowledges that companies must set short-term targets, even if those only scratch the surface of what must eventually be done. “There is an urgent need to address the climate crisis,” he explains. “We have already exceeded the 1.5-degree target. Short-term actions help mitigate the damage today, while long-term strategies enable deep, structural change.”
This dual approach ensures that immediate action is taken where it has the most impact. “We encourage companies to start with the low-hanging fruit,” Guilhamon says. “These quick wins are easier to achieve and help build momentum. They provide immediate returns that can fund more ambitious, longer-term initiatives.”
The road to net zero is far from easy. It demands new ways of thinking, significant investment, and often uncomfortable change. But, as Guilhamon underscores, the technology is already available to make real progress, what is needed now is a commitment from every level of the business, from executives to engineers, to leverage these tools effectively. “The sense of urgency is real,” he concludes. “But with the right mix of technology, collaboration, and strategic thinking, it is possible to meet these challenges and achieve sustainable growth.”
The future of manufacturing will be defined by how products are made and how sustainably they are produced. With the EU’s CSRD set to reshape the landscape, there is no better time for manufacturers to take stock, embrace the available tools, and start making tangible progress. The business case for sustainability is compelling, and with advances in AI and energy management, the means to achieve it are within reach.
