Industrial Production & Materials

Refrigerant gases, cement, and plastic are materials ripe for innovation

Industrial activity that produces many of the materials used in commerce, as well as consumer products and packaging, also produces a significant percentage of the pollutants that cause climate change. Transitioning to fossil-fuel free energy sources for these processes, improving efficiency and reducing waste, and bringing low-carbon alternatives to market could dramatically reduce greenhouse gas emissions.

According to McKinsey, adopting circular economy principles not only yields environmental and social benefits, but could also generate a net economic benefit of €1.8 trillion by 2030 for Europe. [42]

Challenge

Linear production processes—where material is extracted, processed, transported, manufactured, used, and discarded—waste the energy embodied in materials and required for handling waste streams. Because closed-looped processes are more efficient, they emit few greenhouse gases.

Major Impact Areas

Refrigerant Management

Refrigerant gases, commonly used in air conditioning, are particularly damaging to the climate. Controlling refrigerant leaks and implementing more robust strategies to recover, recycle, and destroy refrigerants at the end of their useful life can mitigate climate change impacts. [43]

Cement

The manufacturing of cement generates 5%–6% of global GHG emissions annually. [44] Coal continues to be the fuel of choice for most cement plants. Alternative fuels and low-carbon cement made with recovered fly ash offer significant potential.

Plastic

Globally, 310 million tons of plastic are produced each year, almost all made from fossil fuels. Experts estimate that 90% of current plastics could be derived from plants instead, emitting fewer GHGs. [45]

Water Consumption

Industry accounts for about 20% of global water usage, the second highest usage after agriculture. [46] Except when powered by renewable or nuclear energy, pumping and treating water emits GHGs. More efficient water usage, water reuse, and wastewater management all conserve water—increasingly important steps as droughts become more frequent.

Innovation

Transitioning away from carbon-intensive energy to power industrial production, designing products with efficiency in mind, and instituting policies and technologies to minimize waste have potential to reduce emissions significantly. [47]

Spotlights

HBS MBA 2004 CEO, Advantek Waste Management Services

PLDA 9 Director, Athena Cleantech Pte. Ltd.

HBS MBA 2021 HBS Student Sustainability Associate and Advisor to BEI

HBS MBA 2015 Founding Member / Marketing, Blueland

HBS MBA 2000 Member Supervisory Board, Circle Economy

“Europe’s circular-economy opportunity,” McKinsey & Company, September 2015
“Materials: Refrigerant Management,” Project Drawdown, 2019, accessed on October 6, 2019.
“Materials: Alternative Cement,” Project Drawdown, 2019, accessed October 6, 2019.
“Materials: Bioplastic,” Project Drawdown, 2019, accessed October 6, 2019.
“World Water Vision: Making Water Everybody's Business (pdf),” World Water Council, accessed September 9, 2019.
“Materials,” Project Drawdown, 2019, accessed October 6, 2019.

Confronting Climate Change

Confronting Climate Change