ISO 9001:2015 Certified      |      ISO 13485 Certified in QMS for Medical Devices      |      AS9100D Certified in QMS for Aerospace and General Engineering Applications.

Environmental, Social, and Governance (ESG) standards assist organizations in improving and being more accountable for their impact on the environment, civic responsibility, and organizational governance.

Each initialism in ESG has its significance, and its metrics are explained by:

  • Environmental:

    How the manufacturing of commodities affects the usage of energy, resources, and materials, as well as influencing the climate. It covers accounting and auditing greenhouse gasses (GHGs), energy assessments, carbon taxes, water consumption, energy dynamics, and environmental impact assessments.

  • Social:

    The social cues include employee and community participation, health and safety of workers, human rights, diversity and inclusion, and conflict minerals audits.

  • Governance:

    It includes non-financial reporting; assurance of those reports; responsible taxation; board composition; compensation for executives; shareholder rights; ethics; corporate investigations; supply chain management; product quality; cybersecurity; and data protection.

As we see, a smart manufacturing sector’s ability to meet its ESG objectives largely depends on its ability to innovate. ESG’s current prominence in the public and private sectors would not have been possible without innovation.

ESG Innovation In Supply Chain

From a technical, operational, and managerial standpoint, engineers are particularly positioned to lead the innovation and assist their firms, clients, and communities in significantly increasing their adoption of ESG principles.

Fundamentally, the ESG criteria guide eco-friendly, socially-acceptable, and ethically-righteous supply chain activities, particularly procurement, sourcing, and supplier relationship management.

Risk In Supply Chain

Traditional key factors in supply chains are technical quality, cost-efficiency, rapid delivery, and reliability.

Meanwhile, sustainability factors are becoming more and more significant in the implementation of green manufacturing.

Examples of some risks in the supply chain include:

  • Environmental pollution
  • Limited natural resources and raw materials.
  • Health and safety challenges at work
  • Labor conflicts
  • Bribery and corruption
  • Geopolitical concerns

Inadequate management of such risks can have devastating effects on operations and disrupt the supply chain as a whole.

So, how can ESG help us minimize the risk and elevate the supply chain management?

There is no one-size-fits-all method for mitigating ESG risks; however, the following methods are effective.

Innovative and Emerging Technologies are essential for integrating ESG into projects

Five Practical Steps For ESG Implementation

The ultimate goal is to generate profit for your company.

Hence the priorities should align with your business strategy, the direction of your business’s growth, and your stakeholders’ priorities.

Moreover, your ESG plan must include external influences, such as new regulations, media or investor demands, and legislation.

Here are the five steps to implement the ESG Strategy:

  • Evaluate And Measure Attributes Of Your Business:

    Determine the status of each element of your ESG plan.

  • Draw Out Stakeholders:

    Identify the stakeholders and involve them in the initial stage itself.

  • Prioritize Company Values:

    Concentrate on areas that support your approach and have the greatest impact.

  • Set Objectives And Indicators:

    Smart goals and metrics facilitate win-wins in all adverse situations.

  • Build Recurrent Success Milestone:

    Gain financial support for future efforts by providing the best quality of ESG Optimization.

How Manufacturers Help In The Implementation Of The ESG Strategy

Generally, overproduction of carbon emissions, water scarcity, waste management, a finite supply of fossil fuels, and severe weather-related service disruptions are significant concerns for enterprises.

Manufacturers must use innovative technologies to get the visibility, accountability, and data necessary to construct and maintain ESG initiatives.

Linked workforce, artificial intelligence (AI), Internet of Things (IoT), connectivity, blockchain, and 5G digital solutions assist manufacturers in supplying vital data regarding their supply chains, environmental effects, and frontline worker safety.

We have summarized a few key points of how smart manufacturers can implement ESG strategies most effectively:

  • Collaborate To Achieve Significant Progress:

    Working across internal and external departments to drive change enables leading firms to make rapid ESG progress.

  • Initial Supply Chains Involvement Provides Efficiency:

    As the spirit of cooperation gains momentum, numerous enterprises are involving their supply chains early in the process and cooperating with them to advance ESG. Scale the strategy proportionally by developing tools and resources to enable suppliers to follow their existing ESG stances. This could be providing a reporting structure for a more ESG-savvy supplier or a training workshop to help a smaller organization embrace sustainability and initiate its commitments.

  • Cast A Wider Net To Implement Great Innovations:

    Organizations across the industry prioritize ESG for each functional team or department. This can enable more individuals across the organization to generate ideas and continue conversations.

  • Beyond The E, You Must Also Address The ‘S’ And The ‘G’:

    Too frequently; organizations become preoccupied with the environmental effects of ESG.However, the manufacturing firms with the most developed ESG plans consider social and governance in equal proportion. Leading Manufacturing companies are improving their methods for measuring the impact of all three ESG factors.

  • Effectively Manage The Transition:

    Changing the organizational culture to emphasize ESG demands an authoritative tone from the top.

You may also need to reconsider the abilities required to address ESG systematically: internal communications to bring employees on board, clarity around what is material, and understanding how rating agencies are altering their approach to ESG.

Reframing ESG from a risk to an opportunity will necessitate an integrated change management plan that connects all of these areas and assists individuals in efficiently navigating the shift.

The Advantages Of ESG For Manufacturing Company

Only through the meaningful and deliberate incorporation of ESG into a company’s operations can social and environmental objectives be aligned and financial performance is enhanced.

Consulting engineers can support integration in multiple ways through innovation.

Sustainable Development: Many novel ESG concepts, such as social and environmental impact studies, circular economy models, and product differentiation, can be incorporated into the integrated design process for engineering projects.

Asking the appropriate questions at the beginning of a project enables engineers to make innovative and well-informed decisions that affect the project’s conclusion.

Innovative And Emerging Technologies are essential for integrating ESG into project design, implementation, and management.

Engineering businesses employ developing technology such as environmental management systems, void analysis tools, and impact reporting software to highlight the benefits of sustainability innovation in their projects.

Developing The Next Generation Of Leaders: Only if innovation and ESG are sustainable across successive generations of professionals they effectively address global environmental and social problems.


Today, firms provide consumers with understandable details about their products and production methods.

We witness how the demand for ESG data in all sectors continues to grow day by day!

ESG has been a topic of interest and a potentially revolutionary concept for both industries and societies.

Looking for ESG Driven innovation to make your business driven towards

sustainable change?

Don’t worry!! Violin Technologies has got you covered!

Introducing Violin Technologies, a leading contract manufacturing partner in logistics and supply chain industry.

Violin Technologies is an ISO 9001:2015 certified company with factories located in Chennai, India, and a warehouse in Wooddale, Illinois, USA.

For further information and queries, click here to contact us.

Almaas saleem

About the Author

Almaas Saleem – A Software Engineer by profession, worked as an Automation Test Engineer and cleared the international level testing exam (ISTQB). Almaas has a sharp eye on everything about the web, technology, and innovation and also is Engaged in Technical writing for new businesses managing various entities. Her Area of Expertise includes Web development and design, Automated test software(s), ethical hacking, cybersecurity, cryptography, and digital marketing. Being committed and efficient towards her work is what makes Almaas stand out from the crowd.