Greater Sustainability in Machine Construction with Aftersales and Service

More than a Trendy Concept: what does Sustainability mean for Businesses?

Be it in the private or commercial sphere, sustainability is omnipresent. Acting sustainably means meeting the needs of today's generations without depriving future generations of the chance to meet their own needs.

This is not just about climate protection, but also encompasses the following aspects:

• The ecological dimension aims to protect and preserve the environment and natural resources. Companies act in an eco-friendly manner when they improve their carbon footprint, reduce waste, and use renewable energy sources.
• People are at the heart of social sustainability. Socially responsible businesses are concerned with the effects of their actions on their employees and society, and promote diversity and inclusion in the workplace.
• Economic sustainability means being commercially viable in the long term while at the same time taking social and ecological aspects into account. Businesses must create value for employees, customers, and society that extends beyond financial profit.

Customers, employees, and job applicants are increasingly expecting companies to align their actions with these factors. At the same time, regulatory pressure is growing, so the importance of sustainability in the economy is high.

How relevant is Sustainability for Companies?

The Bertelsmann Foundation's Sustainability Transformation Monitor shows that the trend toward increased sustainability is continuing unabated. In 2023, the subject became even more important for 84 percent of businesses, despite several crises. More than half of respondents have firmly established sustainable practices in their corporate strategy.

According to PwC, more and more machine and plant manufacturers are also pursuing a sustainability strategy. However, only a third have formulated a roadmap with concrete measures and responsibilities, and less than 50 percent feel well prepared for future requirements, in particular regulatory requirements.

Which sustainability requirements do machine, plant, and equipment manufacturers need to fulfil?

New regulations are in the pipeline or are already in force that also affect companies in the machine and plant construction sector for every single one of the sustainability aspects mentioned above. In the social dimension, the Supply Chain Act obliges companies to ensure human rights are protected along their supply chains and to meet environmental obligations.

The "Sustainability in Service" (German: “Nachhaltigkeit im Service”) study conducted by the German service industry association KVD highlights additional regulations, the most important of which are summarized below.

1. Reporting obligation

Many companies already have a reporting obligation, but the EU's new Corporate Sustainability Reporting Directive means that they must now also report on the impact of their economic activities on the environment.

In the future, the number of companies that will have to report extensively on sustainability aspects in the areas of the environment, society, and corporate governance will increase significantly.

2. Carbon footprint

When assessing their environmental impact, machine and plant manufacturers must take various categories of greenhouse gas emissions into account. These include direct emissions caused by their plants, indirect emissions, for example through the purchase of electricity, and emissions that occur outside of the company's direct control—for instance in the life cycle of machines, plants, and equipment.

The last category in particular is difficult to assess, as it depends on several variables, such as how durable the products are and what happens to them at the end of their service life. For assessment purposes, machine manufacturers must therefore integrate measures such as life cycle analyses into product development.

3. EU Green Deal

Recording CO₂ emissions is the basis for a climate-neutral economy, which is what the EU aims to achieve with the Green Deal. Over the long term, it is therefore to be expected that not only will consumer goods manufacturers have to record their carbon footprint, but also machine manufacturers.

4. Ecodesign Directive

The aim of the Ecodesign Directive is to ensure that fewer products are thrown away. Products such as machines and appliances should in future not only be more energy and resource efficient, but manufacturers must also focus on durability, reliability, reusability, retrofittability, reparability, and recyclability.

What can Aftersales and Service do for the Sustainable Development of your company?

In order to achieve self-imposed or legally defined sustainability targets, machine manufacturers need the support of all departments. In the long term, product development can have a big impact, while in the short term, aftersales and service in particular can push forward sustainability in the company.

How service contributes to greater sustainability

Aftersales service can, for example, ensure that machines, plant, and equipment can be repaired efficiently and used for longer.

The following are possible starting points:

• Predictive maintenance
• Offering repair services
• Digital spare parts catalogs
• Operator and subscription models
• Customer portals with self-service options
• Digitalization of technical documentation
• More efficient service callouts
• Retrofitting and 3D printing of spare parts

The objective is durable machines and tools, because these conserve resources, save on costs for operators, and strengthen customer loyalty.

You can find specific examples of sustainable service in machine construction and tips for implementation here.