Finding new revenue opportunities in decarbonization activities
A new report by ABI Research highlights the sustainability efforts of 10 major industrial manufacturing conglomerates and their role in sustainable manufacturing operations and reducing carbon emissions for customers. The report provides an unbiased assessment of these companies, categorizing them as Sustainability Leaders, Sustainability Mainstream, or Sustainability Followers. The companies profiled in the report are as follows:
- Sustainability Leaders: Schneider Electric, Siemens, ABB, and Bosch
- Sustainability Mainstream: Hitachi, General Electric, Honeywell, and LG
- Sustainability Followers: Mitsubishi Corporation and Rockwell Automation
The assessment recognizes that all the conglomerates are working towards decarbonizing society, but some have positioned themselves as global climate change leaders. Despite market challenges, these companies have demonstrated financial success. For example, Schneider Electric, which aims for carbon neutrality in its own operations by 2025, achieved record revenues and net income in 2022. Siemens ranked second in the index, excelling in industrial digital automation, green buildings, and vehicles, and reported record profits. ABB experienced revenue growth in 2022 as a leading technology implementer for industrial automation and robotics. Bosch, having already achieved carbon neutrality for Scope 1 and Scope 2 emissions, saw strong sales driven by climate response.
The report emphasizes the revenue opportunities and sustainability-focused initiatives in the near term, with investments in industrial IT and operational technology (OT). These include areas such as 5G connectivity, Industrial Internet of Things (IIoT), edge computing, cloud infrastructure, and mobile applications. These investments can help address challenges like inflation, labor shortages, and supply chain constraints, while also enabling energy conservation, greener buildings, automation, and factory efficiencies to mitigate climate change.
Looking ahead, ABI Research expects these conglomerates to further invest in a range of sustainable technologies, such as bio-based fuels, lower-carbon materials, power grid innovation, energy storage, and hydrogen power. Honeywell, for instance, already has a significant portion of its product sales contributing to ESG-related outcomes, including bio-sourced materials, hydrogen power, renewable power, and sustainable aviation fuel. The assessment also highlights the focus on mineral sourcing and production schedules for renewable technologies and distributed energy networks by companies like Siemens, Hitachi, and General Electric.
The report underscores the breadth and depth of decarbonization initiatives within these companies, including the development of new business units, products, software solutions, and consulting services aimed at addressing climate-related challenges for customers. These solutions range from mobility and infrastructure projects to greener chemicals used in consumer goods, demonstrating a commitment to a lower carbon future.
The findings from this report are part of ABI Research’s Sustainable Technologies research service, providing comprehensive analysis, market share insights, and evaluation of implementation strategies and innovation within the industry.
