It’s no secret that manufacturers have operated in a highly regulated global environment for many years, and regulations have long factored into efforts by innovative companies to design and develop products to meet the needs, wants and expectations of the customers they serve.

However, in looking back over the course of the last several years, the number of global regulations and amendments have increased dramatically. Regulators are demanding immediate action to address greenhouse gas (GHG) emissions and climate change, They want certain substances removed from product offerings altogether, and the industry is expected to shift toward a lifecycle approach to product design and development efforts.

“And it’s because of these growing trends and the sense of urgency associated with them that we’re seeing growing regulatory requirements,” said Brian Mormino, executive director — technical and environmental systems for AEM member company Cummins Inc. “That’s creating quite a burden for manufacturers around the world. How, exactly, are we going to deal with that?”

TAKING A PROACTIVE APPROACH TO SUSTAINABILITY

According to Mormino, manufacturers can go from a reactive to proactive state in four simple steps:

Measure and Prioritize

Data is critical to making informed decisions and prioritizing how to proceed. Being able to focus on what is important is critical to determining potential impacts.

“Part of our impact is what we buy, the impact it makes, and then the impact to make it,” said Mormino. “It goes all the way through to when our products are in use. There’s an impact from our customers using our products. And when you take that broad perspective, it really changes where you should be focusing your attention.

Commit and Act

The end goal, he continued, is to begin to internalize environmental externalities by making sustainability a part of business operations as a whole.

“We have to drive ourselves to open our eyes, look at all the factors going on around us, and understand where we need to be focusing our time, effort and resources,” explained Mormino. “All of the issues we face today certainly have an environmental slant, but they impact us in so many different ways.” Brian Mormino, executive director — technical and environmental systems for Cummins

Partner and Learn

It’s impossible to accomplish anything by limiting activities to those occurring within an organization’s four walls. Reach out, said Mormino, and learn about the issues affecting them organizationally and the issues they are currently being forced to deal with on a societal level.

Refresh and Build

Circle back, make additional commitments, foster additional partnerships and build on previous successes.

“We’re working with our customers to optimize how they are going to use our products,” said Mormino. “By that we mean to  reduce greenhouse gas emissions, which saves them fuel. This is the journey we’ve been on. But as I’ve mentioned, when you commit, you take action. You start partnering, and you start learning. Then you have to refresh and rebuild.”

EMPHASIZING COLLABORATION

An initiative like Planet 2050 doesn’t stand a chance of being successful without adopting a stakeholder model designed to help others – both inside and outside of Cummins – embrace the long winding road toward progress and success, said Mormino.

“That starting point is very important, that foundation, that belief,” he continued. “It requires lifting all of stakeholders up and looking for value for everyone involved.”

Stakeholders include:

• Employees
• Communities
• Suppliers
• Customers
• Shareholders

“Having this stakeholder approach, and looking for value for all, it’s just critical,” said Mormino.

No manufacturer is poised to get anywhere by going it alone. Successful collaboration is absolutely crucial to navigating an ever-evolving regulatory environment and making real, substantial change in the world.

About

AEM is the North America-based international trade group representing off-road equipment manufacturers and suppliers with more than 1,000 companies and more than 200 product lines in the agriculture and construction-related industry sectors worldwide. The equipment manufacturing industry in the United States supports 2.8 million jobs and contributes roughly $288 billion to the economy every year.

www.aem.org