{"id":119693,"date":"2025-01-13T08:00:00","date_gmt":"2025-01-13T16:00:00","guid":{"rendered":""},"modified":"2025-04-14T14:32:50","modified_gmt":"2025-04-14T21:32:50","slug":"data-is-driving-a-more-sustainable-industrial-transformation","status":"publish","type":"post","link":"https:\/\/www.microsoft.com\/en-us\/industry\/blog\/manufacturing-and-mobility\/2025\/01\/13\/data-is-driving-a-more-sustainable-industrial-transformation\/","title":{"rendered":"Data is driving a more sustainable industrial transformation"},"content":{"rendered":"\n<p>As market attention to sustainability grows, regulatory pressures and consumer expectations around environmental, social, and governance (ESG) issues are driving change, in the context of greater transformation initiatives in the manufacturing and mobility sector.&nbsp;<\/p>\n\n\n\n<p>These initiatives focus on harnessing data insights from smart technologies such as automation, Internet of Things (IoT), and AI, to improve how products are made and distributed. By unifying this and other data\u2014including siloed data sets\u2014into a single ESG data estate, manufacturing organizations can gain holistic views and granular insights to help them not only meet ESG reporting requirements, but also drive the sustainability of sourcing, making, transporting, and disposing of products\u2014and implement business practices that advance a circular economy. &nbsp;<\/p>\n\n\n\n<p>To support your organization as you explore options and identify cost-effective steps in this era of industrial transformation, we\u2019ve gathered learnings and recommendations into the <a href=\"https:\/\/info.microsoft.com\/ww-landing-leaders-guide-to-sustainable-business-transformation.html?lcid=EN-US\" target=\"_blank\" rel=\"noreferrer noopener\">Leader\u2019s Guide to Sustainable Business Transformation<\/a>. We\u2019ve also created an <a href=\"https:\/\/info.microsoft.com\/ww-landing-esg-data-readiness-assessment.html?lcid=en-us\" target=\"_blank\" rel=\"noreferrer noopener\">ESG data readiness assessment<\/a> to help you get started quickly.&nbsp;<\/p>\n\n\n\n<div class=\"wp-block-buttons is-content-justification-center is-layout-flex wp-container-core-buttons-is-layout-16018d1d wp-block-buttons-is-layout-flex\">\n<div class=\"wp-block-button\"><a class=\"wp-block-button__link wp-element-button\" href=\"https:\/\/info.microsoft.com\/ww-landing-esg-data-readiness-assessment.html?lcid=en-us\">Take the ESG Data Readiness Assessment<\/a><\/div>\n<\/div>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"a-more-responsible-competitive-path-forward\">A more responsible, competitive path forward&nbsp;<\/h2>\n\n\n\n<p>Manufacturing and mobility organizations that develop smart, automated, and data-driven processes as part of <a href=\"https:\/\/www.microsoft.com\/en-us\/industry\/manufacturing\/industrial-transformation\" target=\"_blank\" rel=\"noreferrer noopener\">industrial transformation<\/a>\u2014and incorporate sustainability into those processes\u2014are well positioned to gain a competitive advantage. ESG insights can help manufacturers achieve a range of goals across the value chain, such as:&nbsp;&nbsp;<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Improved risk management and the protection of critical production processes.<\/li>\n\n\n\n<li>Engagement with vendors and suppliers to address Scope 3 emissions, reduce exposure to impacts from climate risks, and governance loopholes.<\/li>\n\n\n\n<li>Reduced costs and improved traceability with streamlined technology resources.<\/li>\n\n\n\n<li>More responsible capital deployment.&nbsp;&nbsp;<\/li>\n<\/ul>\n\n\n\n<p>With advanced solutions, organizations have already begun making these improvements. For example, Sandvik, a leader in mining industry manufacturing, implemented Microsoft AI and cloud technologies to <a href=\"https:\/\/customers.microsoft.com\/en-us\/story\/1518521945649112744-sandvik-discrete-manufacturing-azure-en-sweden\" target=\"_blank\" rel=\"noreferrer noopener\">enhance predictive maintenance and lower emissions<\/a>, allowing them to cut down on waste and optimize resource use.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"esg-data-the-input-that-fuels-comprehensive-sustainability\">ESG data: The input that fuels comprehensive sustainability&nbsp;<\/h2>\n\n\n\n<p>To achieve the full potential of ESG data\u2014from the shop floor to the board room\u2014manufacturing and mobility organizations can benefit from evaluating sustainability comprehensively, in terms of environmental concerns as well as social and governance impacts. This approach uses ESG data insights to improve risk management and protect the value of critical product processes, and to make decisions that improve energy use, labor practices, supply chain transparency, regulatory compliance, and more.&nbsp;&nbsp;<\/p>\n\n\n\n<p>For example, Outokumpu, a worldwide leader in stainless steel production, tapped into the power of data by developing an industrial digital platform based on Microsoft Azure. The insights this platform provided led to significantly reduced waste (due to fewer defects) and energy usage\u2014<a href=\"https:\/\/clouddamcdnprodep.azureedge.net\/gdc\/gdcl6780I\/original\" target=\"_blank\" rel=\"noreferrer noopener\">contributing to lower CO2 emissions<\/a>.&nbsp;<\/p>\n\n\n\n<p>Key ways to maximize the benefits of ESG data in manufacturing and mobility include:&nbsp;<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Build a data-driven infrastructure<\/strong>:<strong> <\/strong>ensure that systems are in place to collect and integrate accurate ESG data seamlessly across all departments.<\/li>\n\n\n\n<li><strong>Leverage predictive insights<\/strong>:<strong> <\/strong>use AI and analytics to forecast and optimize operations, including by using natural language querying to enable all teams to access insights\u2014enabling efficient resource use and proactive risk management.<\/li>\n\n\n\n<li><strong>Foster a culture of sustainability<\/strong>:<strong> <\/strong>from executives to front-line workers, train employees in how ESG data can improve decision-making and drive sustainability outcomes.&nbsp;<\/li>\n<\/ul>\n\n\n\n<p>Implementing these ideas can provide the foundation for using ESG data to drive long-term success, and to make significant improvements relatively quickly. For instance, Nordic-based OSTP Group, which specializes in manufacturing stainless steel products and custom equipment, is using Microsoft technologies to track and report CO2 emissions. The data insights they gained led to a <a href=\"https:\/\/customers.microsoft.com\/en-us\/story\/1706363969500718844-ostp-fellowmind-manufacturing-microsoft-sustainability-manager\" target=\"_blank\" rel=\"noreferrer noopener\">70% reduction in direct CO2 emissions<\/a> from 2021 to 2023.&nbsp;<\/p>\n\n\n\n<p>Schneider Electric, a global leader in energy management and industrial automation, has also <a href=\"https:\/\/customers.microsoft.com\/en-us\/story\/1745242950134216820-schneider-electric-azure-machine-learning-discrete-manufacturing-en-france\" target=\"_blank\" rel=\"noreferrer noopener\">reduced carbon emissions and optimized energy use<\/a>\u2014leveraging Azure OpenAI and other Microsoft AI technologies to boost not only sustainability, but also their engineers\u2019 productivity.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"how-microsoft-is-powering-sustainable-transformations\">How Microsoft is powering sustainable transformations&nbsp;&nbsp;<\/h2>\n\n\n\n<p>Microsoft has emerged as a leading partner for manufacturing and mobility organizations on their journey toward sustainability. We\u2019ve designed our solutions to help businesses in three primary ways:&nbsp;<\/p>\n\n\n\n<ol class=\"wp-block-list\">\n<li><strong>Improve ESG data transparency<\/strong>: We\u2019re continuously innovating to enable our customers to glean consolidated data intelligence from across their operations and value chain.<\/li>\n\n\n\n<li><strong>Deliver actionable insights<\/strong>: Microsoft has a deep slate of expertise helping manufacturers maximize operational efficiencies using sensor-enabled data management and automated scenarios powered by the Microsoft Cloud.<\/li>\n\n\n\n<li><strong>Create new opportunities<\/strong>: We are a global leader in enabling digital transformation through our data and AI solutions, to help businesses grow while becoming more sustainable.&nbsp;<\/li>\n<\/ol>\n\n\n\n<p>We\u2019re delivering for these solution areas by bringing together a growing set of ESG data and AI capabilities from Microsoft and our global ecosystem of partners, in Microsoft Cloud for Sustainability.&nbsp;&nbsp;<\/p>\n\n\n\n<p>A core solution in this suite is <a href=\"https:\/\/www.microsoft.com\/en-us\/sustainability\/microsoft-sustainability-manager\">Microsoft Sustainability Manager<\/a>, which allows businesses to more easily record, report, and reduce their environmental impact through data connections and powerful AI-powered analytics\u2014and can be integrated with virtually any business system. With this solution, manufacturing and mobility teams advance on carbon, water, and waste management, as well as circularity. &nbsp;<\/p>\n\n\n\n<p>Businesses can also implement the purpose-built ESG capabilities of <a href=\"https:\/\/learn.microsoft.com\/en-us\/industry\/sustainability\/sustainability-data-solutions-fabric\/get-started-overview\" target=\"_blank\" rel=\"noreferrer noopener\">Sustainability data solutions in Microsoft Fabric<\/a>, to integrate, normalize, and analyze ESG data\u2014and other enterprise data\u2014on a single digital platform. Together, these capabilities help improve ESG data accuracy and transparency, simplify reporting processes, and accelerate progress toward goals.&nbsp;&nbsp;<\/p>\n\n\n\n<p>Swedish forestry giant S\u00f6dra is showing what\u2019s possible with these capabilities. S\u00f6dra utilizes Microsoft Sustainability Manager to improve supply chain transparency and track sustainability data across its entire operation, allowing them to reduce reliance on carbon-intensive materials, <a href=\"https:\/\/customers.microsoft.com\/en-us\/story\/1759684106788917021-sodra-microsoft-cloud-for-sustainability-forestry-and-fishing-en-sweden\" target=\"_blank\" rel=\"noreferrer noopener\">displacing 8.8 million tons<\/a> of CO2 emissions annually. S\u00f6dra estimates the positive impact of this accomplishment as equivalent to one-fifth of Sweden\u2019s annual reported carbon emissions.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"a-sustainable-future-begins-with-smarter-solutions\">A sustainable future begins with smarter solutions&nbsp;<\/h2>\n\n\n\n<p>As manufacturing and mobility continues to transform, both smart technologies and ESG data will help companies drive sustainability, meet compliance and reporting requirements, and uncover new opportunities for growth. Microsoft is here to help organizations make the transition with solutions to help reduce their environmental impact, improve operational efficiency, and position themselves for long-term success in a rapidly changing world. To gain a view of your ESG data across key areas, as well as customized guidance on how to drive sustainability progress and add business value, <a href=\"https:\/\/info.microsoft.com\/ww-landing-esg-data-readiness-assessment.html?lcid=EN-US\">complete our readiness assessment<\/a>.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"explore-esg-readiness-for-other-industries\">Explore ESG readiness for other industries<\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Retail and consumer goods: <a href=\"https:\/\/www.microsoft.com\/en-us\/industry\/blog\/retail\/2024\/11\/26\/unlocking-business-value-with-data-driven-sustainability-for-retail-and-consumer-goods\/\">Unlocking business value with data-driven sustainability for retail and consumer goods<\/a><\/li>\n\n\n\n<li>Financial services: <a href=\"https:\/\/www.microsoft.com\/en-us\/industry\/blog\/financial-services\/2025\/01\/08\/esg-data-readiness-drives-value-for-financial-services-firms\/\">ESG data readiness drives value for financial services firms<\/a><\/li>\n<\/ul>\n\n\n<div class=\"wp-block-msxcm-cta-block\" data-moray data-bi-an=\"CTA Block\">\n\t<div class=\"card d-block mx-ng mx-md-0\">\n\t\t<div class=\"row no-gutters material-color-brand-light bg-fabric-white\">\n\n\t\t\t\t\t\t\t<div class=\"col-md-4\">\n\t\t\t\t\t<img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"683\" src=\"https:\/\/www.microsoft.com\/en-us\/industry\/blog\/wp-content\/uploads\/2024\/12\/12.10-real-fi-1024x683.jpg\" class=\"card-img img-object-cover\" alt=\"a man and a woman looking at a computer screen\" srcset=\"https:\/\/www.microsoft.com\/en-us\/industry\/blog\/wp-content\/uploads\/2024\/12\/12.10-real-fi-1024x683.jpg 1024w, https:\/\/www.microsoft.com\/en-us\/industry\/blog\/wp-content\/uploads\/2024\/12\/12.10-real-fi-300x200.jpg 300w, https:\/\/www.microsoft.com\/en-us\/industry\/blog\/wp-content\/uploads\/2024\/12\/12.10-real-fi-768x512.jpg 768w, https:\/\/www.microsoft.com\/en-us\/industry\/blog\/wp-content\/uploads\/2024\/12\/12.10-real-fi.jpg 1260w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/>\t\t\t\t<\/div>\n\t\t\t\n\t\t\t<div class=\"d-flex col-md\">\n\t\t\t\t<div class=\"card-body align-self-center p-4 p-md-5\">\n\t\t\t\t\t\n\t\t\t\t\t<h2>ESG Data Readiness Assessment<\/h2>\n\n\t\t\t\t\t<div class=\"mb-3\">\n\t\t\t\t\t\t<p>View your data readiness across critical areas<\/p>\n\t\t\t\t\t<\/div>\n\n\t\t\t\t\t\t\t\t\t\t\t<div class=\"link-group\">\n\t\t\t\t\t\t\t<a href=\"https:\/\/info.microsoft.com\/ww-landing-esg-data-readiness-assessment.html?lcid=en-us\" class=\"btn btn-link text-decoration-none p-0\" target=\"_blank\">\n\t\t\t\t\t\t\t\t<span>Take the assessment today<\/span>\n\t\t\t\t\t\t\t\t<span class=\"glyph-append glyph-append-chevron-right glyph-append-xsmall\"><\/span>\n\t\t\t\t\t\t\t<\/a>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t<\/div>\n\n\t\t\t\t\t<\/div>\n\t<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>To support your organization as you explore options and identify cost-effective steps in this era of industrial transformation, we\u2019ve gathered learnings and recommendations to help.<\/p>\n","protected":false},"author":794,"featured_media":119697,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"ms_queue_id":["sustainability-content-sync"],"ep_exclude_from_search":false,"_classifai_error":"","_classifai_text_to_speech_error":"","footnotes":""},"categories":[1496,3966],"post_tag":[4291,4531,4334,4766,4292,4412,4413],"content-type":[1490],"coauthors":[4869],"class_list":["post-119693","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-manufacturing-and-mobility","category-sustainability","tag-azure","tag-azure-openai-service","tag-generative-ai","tag-industrial-transformation","tag-iot","tag-microsoft-sustainability-manager","tag-the-microsoft-cloud","content-type-customer-stories","review-flag-3-1593580443-547","review-flag-8-1593580469-325","review-flag-integ-1593580289-590","review-flag-internet-of-things","review-flag-iot","review-flag-lever-1593580266-799","review-flag-new-1593580249-279","review-flag-partn-1593580285-60"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.2 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Data is driving a more sustainable industrial transformation - Microsoft Industry Blogs<\/title>\n<meta name=\"description\" content=\"Microsoft has gathered learnings and recommendations to support organizations in their sustainable industrial transformation journey. 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