Minimising environmental impact by keeping products and materials in use for as long as possible.

Circular economy is a new production and consumption model that ensures sustainable growth over time. With the circular economy, the industry can drive the optimisation of resources, reduce the consumption of raw materials, and recover waste by recycling or giving it a second life as a new product. While sustainability is the overall policy that guides every action and practice that strives to sustain the future, circularity is more about the practices which lead to sustainability, especially in industries like electrical and electronics, consumer goods, automotive and batteries, metal fabrication, etc.

The circular economy offers a route to sustainability by shifting away from the traditional linear ‘take-make-dispose’ model to one that emphasizes resource efficiency, waste reduction, and regeneration. It focuses on keeping materials and products in use for as long as possible through strategies like reducing, reusing, recycling, and designing out waste and pollution. This approach minimises environmental impact, reduces reliance on finite resources, and promotes long-term economic and social well-being. So what specific technologies are available that enable sustainable manufacturing practices, and how are they integrated into existing production workflows?

“The manufacturing industry is undergoing a rapid transformation driven by a range of advanced technologies that enable sustainable practices while integrating seamlessly into existing production workflows. Key innovations include the Industrial Internet of Things (IIoT), where AI-driven predictive maintenance systems optimise equipment performance, reduce waste, and enhance operational efficiency. Technologies like computer vision systems help identify defects in real-time, ensuring better quality control and minimising inefficiencies,” says Shubhankar Chatterji, Chief Supply Chain Officer, Cummins India. “3D printing and additive manufacturing are reshaping production methods by reducing material waste and improving environmental footprints, as demonstrated by Cummins’ use of additive manufacturing for prototyping and part repair. Beyond this, circular economy solutions powered by AI are enabling sustainable practices like designing products capable of being remanufactured, and implementing returnable packaging systems, which improve cost efficiency and reduce Scope 3 emissions,” he adds.

According to Luciano Narcisi, Research Director, ARC Advisory Group Europe, several technologies are driving sustainable manufacturing practices, particularly in support of the circular economy. Since the core goal of circularity is to reduce waste, the most impactful technologies are those applied at the product design stage. Tools that support lifecycle management and sustainable design – including modules that assess recyclability, maintainability, and material efficiency – can significantly reduce waste before production even begins. “Waste management and recycling are key parts of the circular economy. Although technologies for recycling already exist, digital tools that support green supply chains are not widely used yet. However, as more companies look for ways to track materials and use recycled content, these tools are likely to become more common. The technologies needed to scale circular manufacturing – such as modular and open automation architectures – already exist. The primary challenge is no longer technical feasibility, but rather the speed of deployment, which is often slowed by limited funding and a risk-averse industrial mindset,” suggests.

“The most effective sustainability efforts in manufacturing are being driven by technologies that simultaneously improve efficiency and reduce environmental impact,” says

Vijay Mathew, Director, Industrial Growth Advisory Frost & Sullivan. Vijay lists out three categories that stand out in this area:

• First is energy and resource monitoring, typically enabled through IoT-based sensors and industrial edge devices.
• Second, advanced process control and AI-driven optimisation tools are helping factories reduce waste, emissions, and overprocessing.
• Third, digital twins are increasingly being used to simulate and validate sustainability scenarios before changes are made on the shop floor.

Looking at the options mentioned in the responses above, there is no dearth of technologies available to pursue sustainable manufacturing. The question now is how do these solutions support resource efficiency – such as reducing energy consumption, water usage, or raw material waste – in manufacturing operations?

“The technologies discussed form a synergistic ecosystem that fundamentally transforms manufacturing into a more sustainable and resource-efficient operation,” says Sudarsan Surendran, GM Projects – Process Automation, Schneider Electric India. To start with, he suggests five proven technologies found effective in the oil and gas sector:

1. Carbon capture, utilisation, and storage (CCUS): Capture CO₂ from flue gases and either store it underground or use it in other processes (e.g., enhanced oil recovery).

2. Advanced process control (APC) & optimisation: Use real-time data to optimise energy use, reduce flaring, and improve yield. Layered on top of Distributed Control Systems (DCS).

3. Water reuse and zero liquid discharge (ZLD): Treats and recycles wastewater from cooling towers, desalters, and process units by modular water treatment units.

4. ERP and MES with sustainability modules: Enterprise Resource Planning (ERP) and Manufacturing Execution Systems (MES) now include carbon tracking, waste reporting, and sustainability KPIs.

5. Hydrogen recovery and green hydrogen integration: Recovers hydrogen from process streams or integrates green hydrogen from electrolysis.

Adding to these options, Titash Bhattacharya, Leader in Digital Transformation for Sustainable Futures, enumerates a few more technological solutions that collectively enhance resource efficiency in manufacturing operations in several ways:

Energy Efficiency: AI-powered digital twins and IoT solutions dynamically optimise energy use by adjusting machinery operation based on real-time data.

Water Usage Reduction: Smart sensors continuously monitor water flows, detecting leaks or instances of overuse.

Raw Material Waste Minimisation: AI algorithms enhance production planning, significantly reducing overproduction.

“Factories across diverse sectors, including steel manufacturing, automotive, power plants, and even data centres, are increasingly utilising AI to monitor and optimise both energy and water consumption,” says Titash.

In this regard, Shubhankar Chatterji draws attention to Cummins' sustainable manufacturing solutions that foster resource efficiency by targeting energy consumption, water usage, and raw material waste across operations. “When it comes to energy consumption, key initiatives include energy optimisation projects such as installing energy-efficient LED lighting, HVAC upgrades, and better insulation, collectively cutting over 12,800 metric tonnes of CO2 emissions annually. To combat raw material waste, Cummins emphasizes remanufacturing – rebuilding parts and engines to ‘like new’ condition using up to 85% less energy than producing new ones. For example, Recon engines use up to 85% less energy to produce than new engines and eliminate the need to forge new parts, saving metal ore and associated emissions,” he emphasises.

Are there use cases that demonstrate how technology enables or enhances product life extension, remanufacturing, or recycling within a circular economy framework?

“Yes, there are several real-world examples showing how technology supports product life extension, remanufacturing, and recycling in a circular economy. At an industry event in Sitges this May, I hosted a session focused on circularity where two strong use cases were presented. The first came from Schneider Electric, who shared how they apply circular design principles to product development. Using their Altivar Process Drive System as an example, they showed how refurbishing and reusing components led to reductions in energy use, raw materials, and CO₂ emissions – by up to 80 percent. This illustrates the clear environmental benefits of designing products with reuse in mind,” says Luciano Narcisi. He also cited another example that was presented by Franco Cavadini from Gr3n, who introduced their microwave-based chemical recycling technology. It enables the breakdown of difficult-to-recycle PET plastics, especially from the textile industry. He also highlighted how automation and open, universal systems are critical to scaling these processes effectively and making circular solutions viable on a larger scale. These examples show that circularity is not just a concept – it’s already being applied successfully with the help of innovative technologies.

Vijay Mathew sees strong momentum around circularity-driven use cases across industries, with technology acting as the key enabler. “In product life extension, predictive and condition-based maintenance has had a major impact. By deploying IoT sensors and machine learning models to monitor asset health, manufacturers can proactively service equipment before failure, reducing unplanned downtime and extending the usable life of high-value machinery. This is common in sectors like industrial equipment, aerospace, and heavy vehicles, where downtime is costly and the carbon footprint of replacement is high,” he says. Besides remanufacturing, which is being transformed through digital work instructions, traceability systems, and automated inspection, there are also other areas witnessing recycling. “In electronics recycling, AI-powered material sorting is helping recover valuable metals and components from e-waste with far greater precision. Robotics and computer vision systems can now disassemble products and sort components based on material type, size, and condition, tasks that were previously dependent on labour-intensive manual processes,” Vijay emphasizes.

“Yes, several industries are actively demonstrating the positive impact of technology on product life extension, remanufacturing, and recycling within a circular economy framework,” says Titash Bhattacharya. He cites specific examples to support this assertion:

Automotive Sector – Renault Group: Renault operates a pioneering remanufacturing plant in Choisy-le-Roi, France. Here, engines, gearboxes, and injectors undergo meticulous disassembly, cleaning, and reassembly using advanced automated processes. RFID and barcode systems ensure comprehensive traceability and quality control. This facility achieves remarkable savings of 80% in both water and energy compared to traditional manufacturing methods.

Electronics – Dell Technologies: Dell strategically incorporates recycled plastics into its laptop enclosures and utilises AI-based design tools to optimise products for ease of disassembly and recycling. The company also employs blockchain technology to meticulously track the usage of recycled materials.

Battery Recycling – Redwood Materials: Redwood Materials leverages robotics and sophisticated sensor technologies to efficiently extract valuable materials like lithium, cobalt, and nickel from used batteries. The company has developed an AI-enhanced closed-loop system for the remanufacturing of battery-grade materials, significantly advancing circularity in the battery industry.

Is there a mechanism that tracks, analyses, and reports sustainability metrics such as carbon footprint, Scope 1/2/3 emissions, or circular material flows?

According to Sudarsan Surendran, one can segregate the typical overview mechanism in 5 layers:

1. Data collection: IO sensors ERP systems  are used.

2. Data processing & normalisation: AI and Machine Learning are used.

3. Analytics & calculation engine: Life Cycle Assessment tools are commonly used nowadays.

4. Visualisation & reporting: For real-time emissions tracking, circular material flow maps, etc.

5. Feedback and optimisation: For insights to drive improvements in operations, procurement, and product design is helping in saving costs.

“Cummins Inc., employs a comprehensive mechanism to track, analyse, and report sustainability metrics, seamlessly integrating these efforts into a broader environmental strategy. The PLANET 2050 Strategy underpins their commitment to carbon neutrality by 2050 and features targeted 2030 goals addressing GHG reductions, resource efficiency, and circular economy leadership,” says Shubhankar Chatterji. He mentions two specific methods:

1. Data Collection and Analysis: Cutting-edge platforms like Enablon monitor sustainability metrics, capturing detailed data on emissions and material flows. Lifecycle Assessment (LCA) tools further evaluate the carbon footprint of individual products, utilising precise data on materials, standards, and production techniques. In tandem, Cummins uses Power BI dashboards to monitor progress against its Destination Zero strategy. These systems ensure comprehensive visibility over Scope 1, 2, and 3 emissions.

2. Public Reporting and Transparency: Regular Sustainability Progress Reports detail progress on emissions, circular material flows, and waste reduction efforts, complementing participation in frameworks like CDP (formerly Carbon Disclosure Project), GRI (Global Reporting Initiative), and SASB (Sustainability Accounting Standards Board). Initiatives like supplier GHG data collaboration and material circularity tracking ensure that sustainability reporting is robust, actionable, and aligned with industry standards.

What role do technologies like digital twin, AI, IoT, or predictive analytics play in optimising sustainability outcomes?

“Technologies like digital twins, AI, IoT, and predictive analytics are central to optimising sustainability in manufacturing. Digital twins create virtual models of physical assets or systems, allowing companies to test, simulate, and improve processes before making real-world changes – significantly reducing waste, energy use, and costly rework. AI and predictive analytics process large volumes of data to detect inefficiencies, forecast maintenance needs, and optimise resource use in real time, leading to lower emissions and improved performance. IoT devices collect real-time data from machines, energy systems, and production lines, enabling immediate response to anomalies and proactive energy or material management. When combined, these technologies enable smarter, faster, and more sustainable decisions,” says Luciano Narcisi.

“IoT provides the real-time visibility needed to track sustainability KPIs across energy, water, emissions, and waste streams. AI and predictive analytics build on this by identifying inefficiencies and recommending optimisations, whether it's adjusting energy loads, improving material utilisation, or predicting maintenance needs to avoid resource-intensive breakdowns,” says Vijay Mathew. “The real value comes when these technologies are integrated into daily workflows,” he notes.

Are there enough standards and regulatory mechanisms that facilitate product or material traceability and verify sustainable sourcing or end-of-life recovery?

“The landscape of standards and regulatory mechanisms for product/material traceability, sustainable sourcing, and end-of-life recovery is rapidly evolving and strengthening. I would say  it's not yet fully comprehensive or universally applied,” observes Sudarsan Surendran. He cites a few standards and regulatory mechanisms that support product and material traceability, sustainable sourcing, and end-of-life recovery currently, such as: GS1 Standards, WEEE Directive, Corporate Sustainability Reporting Directive (CSRD), and EU Corporate Sustainability Due Diligence Directive (CSDDD).

“While progress is being made, the landscape of standards and regulatory mechanisms for product/material traceability and verification of sustainable sourcing/end-of-life recovery is continuously evolving,” says Titash Bhattacharya. He points out to various existing standards & regulations such as:

• ISO 14040/44: Pertains to Life Cycle Assessment, providing a framework for evaluating the environmental impacts of products throughout their life cycle.
• ISO 20400: Focuses on Sustainable Procurement, guiding organisations on how to integrate sustainability into their procurement processes.
• EU Digital Product Passport (under development): This significant initiative aims to track comprehensive product information, including composition, repairability, recyclability, and origin.
• EPR (Extended Producer Responsibility): This principle obligates manufacturers to manage the post-consumer recycling and disposal of their products.
• RoHS, REACH, and WEEE Directives (EU): These directives are crucial for ensuring the safe use of materials and the effective management of electronic waste within the European Union.

“Blockchain-enabled solutions, such as those offered by Circularise, are increasingly being adopted to enhance material traceability and verify sustainable sourcing in compliance with these standards,” Titash concludes.

Note: The responses of various experts featured in this story are their personal views and not necessarily of the companies or organisations they represent. The full interviews are hosted online at https://www.iedcommunications.com/interviews)

Sustainable Greener Automation for the Chemical Industry in India

- Vinayak Marathe, Director of India subsidiary of Phillips Townsend Associates Inc., Houston – USA.

India’s chemical industry is poised for unprecedented growth, driven by strong domestic demand, shifting global supply chains, and policy support under initiatives like ‘Make in India’ and ‘Aatmanirbhar Bharat’. The sector is expected to reach $300 billion by 2025 and potentially double in the next decade. However, this surge brings a critical challenge – balancing the need for industrial expansion with the imperative to reduce greenhouse gas (GHG) emissions and meet global climate commitments.

The chemical industry, being energy- and resource-intensive, contributes significantly to emissions, water consumption, and hazardous waste. Yet, it is also a key enabler of green technologies – from materials for renewable energy to sustainable agriculture and electric mobility. This duality demands a transformative approach where sustainability is embedded into the DNA of manufacturing, and this is where greener automation becomes vital.

Sustainable automation integrates advanced technologies such as AI-driven process optimisation, real-time emissions monitoring, digital twins, and smart sensors with circular economy principles. These enable chemical plants to not only improve operational efficiency but also reduce carbon intensity, water use, and waste generation. For instance, automated control systems can optimise reaction conditions  to minimise energy input and by-products. Predictive maintenance reduces unplanned shutdowns, saving both emissions and costs.

India’s advantage lies in leapfrogging legacy systems by adopting Industry 4.0 solutions aligned with sustainability. Modular automation, decentralised control, and IoT-based environmental compliance monitoring can transform even mid-scale and specialty chemical units, which constitute a large portion of India’s chemical landscape. Policy makers, industry leaders, and automation solution providers must collaborate to create a framework that incentivises greener automation – through carbon credits, green finance, and faster regulatory clearances for cleaner technologies.

Ultimately, India must chart a unique growth path – one that secures its position as a global chemical manufacturing hub without compromising its climate goals. Sustainable greener automation is not a cost but an enabler – to drive productivity, competitiveness, and environmental stewardship. It is the balancing lever India needs – between ambition and accountability, growth and green transition.