Study: How Do German Manufacturers React to the Increasing Societal Pressure for Decarbonisation?

03 November 2022

The 2021 study by Buettner and colleagues answers this critical question.

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How German Manufacturers Are Responding to Decarbonization

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The paper examines how German manufacturing companies react to rising societal pressure and emerging policies by looking at:

❔ Which measures the companies have taken or plan to take to reduce their carbon footprint;

❔ which aspirations are associated with this;

❔ and the structural characteristics (company size, energy intensity, and sector) by which the companies are influenced.

The study uses a mixed methods approach and references data gathered from approx. 900 companies in the sector of the Energy Efficiency Index of German Industry (EEI), along with media research focusing on the announced #decarbonization plans and initiatives.

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Key Outcomes - There Is No Single Path to Decarbonization

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The study concludes that there is no universal strategy for reducing industrial emissions.

Instead, companies' approaches vary considerably depending on:

company size
industrial sector
energy intensity
available resources
business priorities

This highlights the need for sector-specific decarbonization strategies rather than one common solution.

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Most Companies Focus on Internal Emission Reduction Measures

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More than half of all identified decarbonization activities (54%) are internal measures.

Among these:

33% focus on improving energy efficiency.
21% focus on generating renewable energy internally.

These findings indicate that companies first prioritize reducing emissions within their own operations before addressing emissions elsewhere in the value chain.

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Many Manufacturers Are Working Toward Net Zero

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Nearly 60% of surveyed companies have already started, are planning, or have completed measures to achieve net-zero emissions.

Among companies pursuing net zero:

around two-thirds aim to reach this goal by 2025
more than 90% target 2030
approximately 96% target 2035

The authors therefore recommend that policymakers create shorter implementation cycles rather than relying primarily on long-term strategies extending to 2050.

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Product-Level Carbon Management Is Becoming More Important

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Almost half of the surveyed companies (45%) already consider energy consumption, resource efficiency, and carbon footprints when designing their production processes.

Meanwhile:

36% assess the entire product life cycle.
Only about one-third of these companies simultaneously evaluate emissions generated during production.

The results suggest that Product Carbon Footprints (PCFs) and life-cycle thinking are becoming increasingly relevant for manufacturing companies, although many organizations still have room for improvement.

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Policy and Industry Need to Work More Closely Together

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The study highlights the importance of stronger collaboration between policymakers, researchers, and industry.

Different sectors face different technical and economic challenges, making close cooperation essential for developing practical climate policies and supporting companies throughout their decarbonization journey.

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What These Findings Mean for Manufacturers

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The study demonstrates that German manufacturers have recognized the importance of reducing carbon emissions and are increasingly integrating sustainability into their business strategies.

However, effective decarbonization requires more than operational improvements. Companies also need:

reliable Product Carbon Footprints
transparent supply chain data
high-quality CO₂ datasets
efficient carbon management processes

Only with accurate carbon data can manufacturers identify emission hotspots, prioritize reduction measures, and meet growing reporting requirements.

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Supporting Decarbonization with Reliable Carbon Data

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As manufacturers move toward net-zero targets, Product Carbon Footprints (PCFs) are becoming an increasingly important decision-making tool.

Reliable emission factors and validated CO₂ reference data enable companies to:

Solutions such as the sustamize Product Footprint Engine help manufacturers access dynamic and high-quality carbon data, making decarbonization strategies more transparent, scalable, and data-driven.

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Read the Full Study

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The complete study is available as an open-access publication:

"How Do German Manufacturers React to the Increasing Societal Pressure for Decarbonisation?"

It provides valuable insights into how manufacturing companies are preparing for a low-carbon future and the challenges they continue to face on the path toward climate neutrality.

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