How to Mature Sustainability in Manufacturing

Sustainability in manufacturing has evolved from an optional initiative to a pivotal component of modern business strategy. But for many companies, especially those in metals and steel industries, this shift brings challenging questions. How do you balance sustainability goals with economic pressures? When and where should you invest in sustainable practices? And how can you build a roadmap that delivers both environmental and financial value?

Dr Kevin Douly, a seasoned expert in supply chain management and sustainability, recently shared his insights on these pressing issues. With decades of experience at Arizona State University and collaborations with industry giants like Walmart, Dr Douly has a unique perspective on the maturation of sustainability in manufacturing. This article distils his key points, offering practical advice for businesses ready to embark on or refine their sustainability journey.

Sustainability in Manufacturing: Where Are We Now?

Dr Douly likens the current state of sustainability in manufacturing to the “Gartner Hype Curve”, a model often used to describe the lifecycle of emerging technologies. According to him, sustainability has moved past the peak of inflated expectations, where excitement and lofty promises reigned. Now, the industry is navigating a period of disillusionment, where stakeholders are questioning the tangible value of sustainability initiatives.

However, this phase is also a time of maturation. Unlike past business revolutions - such as quality management in the 1980s or lean manufacturing in the 1990s - sustainability is characterised by significant variance between leaders and laggards. Companies that have embraced sustainable practices for years are seeing measurable benefits, while those just starting have an uphill but surmountable challenge.

For businesses still on the fence, Dr Douly’s message is clear: now is the time to move. The opportunities, risks, and regulatory demands of sustainability are growing, and companies that delay risk falling behind their competitors.

Why Sustainability Matters to the Metals and Steel Industry

The metals and steel industry is uniquely positioned to benefit from sustainable practices. Dr Douly highlights three core areas where sustainability intersects with business value:

1. Cost Reductions through Efficiency

Sustainability often provides straightforward opportunities to reduce costs. Many companies overlook areas like energy consumption, water usage, and waste management in their efforts to streamline processes. Yet these are precisely the areas where sustainability can deliver quick wins. For example, a focus on reducing energy use or improving waste management aligns with both environmental goals and cost-cutting initiatives.

Dr Douly recalls an example from Walmart’s sustainability efforts: By equipping refrigerated trucks with automatic powered units to reduce idling emissions, the company not only lowered its environmental impact but also saved on fuel costs. This type of innovation exemplifies how sustainability and efficiency go hand in hand.

2. Risk Reduction in Supply Chains

For manufacturers, most environmental and social impacts occur upstream in the supply chain. Dr Douly stresses the importance of collective action within industries to address these challenges. Collaborating with peers, suppliers, and industry associations can help companies mitigate risks related to resource scarcity, regulatory compliance, and reputational damage.

The metals and steel industry, with its complex global supply chains, is particularly vulnerable to these risks. Proactively managing supply chain sustainability not only addresses these vulnerabilities but also positions companies as leaders in responsible manufacturing.

3. Revenue Opportunities in Emerging Markets

Sustainability isn’t just about compliance or cost savings - it can also unlock new markets. Increasingly, customers and regulators are demanding sustainable products, and companies that fail to meet these expectations may find themselves excluded from lucrative opportunities. For example, packaging regulations, such as extended producer responsibility (EPR) taxes, are already shaping market dynamics in Europe and several US states.

By aligning their operations with sustainability standards, metals and steel manufacturers can secure their place in these evolving markets, differentiating themselves from competitors.

First Steps for Companies Starting Their Sustainability Journey

Recognising the importance of sustainability is one thing; knowing where to start is another. Dr Douly offers three actionable steps for companies beginning their sustainability initiatives:

1. Appoint a Sustainability Leader

One of the strongest predictors of sustainability success is having a dedicated team - or even a single individual - responsible for driving these initiatives. This person’s role is inherently multidisciplinary, requiring skills in education, negotiation, and regulatory navigation. Appointing such a leader demonstrates a company’s commitment to sustainability and provides a clear point of accountability.

2. Monitor Regulatory Environments

Sustainability is increasingly shaped by legal and regulatory frameworks, such as EPR taxes on packaging or greenhouse gas (GHG) reporting requirements. Staying informed about these regulations is essential. Companies should designate someone to track relevant policies and integrate compliance measures into their annual plans. Proactively addressing upcoming regulations avoids last-minute scrambles and positions businesses as proactive industry leaders.

3. Engage with Industry Peers

Sustainability challenges often require collective solutions. Dr Douly encourages companies to collaborate with peers, industry associations, and other stakeholders to drive meaningful progress. Sharing best practices and aligning on common goals can amplify individual efforts and lead to broader industry transformation.

Overcoming Common Challenges: Lessons from the Past

Dr Douly reflects on missed opportunities during previous business revolutions, such as quality management and lean manufacturing. In these movements, companies often neglected to consider environmental factors like energy and water usage. Today, the sustainability revolution provides a chance to correct those oversights.

The key is to integrate sustainability into existing business frameworks rather than treating it as a separate initiative. By embedding environmental considerations into quality standards, process improvements, and strategic planning, companies can create a unified approach that maximises both impact and efficiency.

Key Takeaways

• Sustainability is no longer optional: Companies must act now to stay competitive in a rapidly changing landscape.
• Efficiency equals sustainability: Reducing energy, water, and material waste creates both cost savings and environmental benefits.
• Supply chain risks are key: Focus on upstream impacts to mitigate vulnerabilities and enhance overall resilience.
• Leadership matters: Designate a dedicated sustainability leader or team to drive progress.
• Regulations are unavoidable: Stay informed about current and future sustainability-related policies to ensure compliance and avoid penalties.
• Collaboration is essential: Work with industry peers to develop collective solutions and share best practices.
• Sustainability as a business driver: Look beyond compliance to identify revenue opportunities in emerging markets.

Conclusion

The path to sustainable manufacturing can seem daunting, especially for industries like metals and steel that are rooted in energy-intensive processes. But as Dr Douly’s insights show, the journey is not only necessary but also filled with opportunities for growth, cost savings, and innovation. By taking deliberate steps - appointing leadership, monitoring regulations, and collaborating with peers - companies can transition from sustainability beginners to industry leaders.

For millennial and Gen Z production managers, quality engineers, and operations directors frustrated by outdated systems, sustainability offers a chance to redefine what modern manufacturing can achieve. And for seasoned executives, the message is clear: sustainable practices are no longer just good ethics - they’re good business.

Source: “Sustainability After the Hype: What Smart Companies Do Next” - ISSA Media, YouTube, Feb 16, 2026 - https://www.youtube.com/watch?v=SVJ970eGYFE