According to the United Nations Educational, Scientific, and Cultural Organisation (UNESCO), sustainable manufacturing is defined as development that meets present needs without compromising the future generations in meeting their own. Also known as green manufacturing, it focuses on creating manufactured products like steel in an economically sound manner, with the aim to minimise any negative environmental outcomes. Despite the challenges posed by the pandemic, seeing the benefits associated with green manufacturing has driven many businesses to place sustainability at the forefront of their business strategy and operations to boost growth and competitiveness.
On a global scale, populations have been consuming large amounts of resources at an alarming rate that has proven unsustainable. Should these practices continue, future generations will be impacted in unparalleled ways. One way to mitigate this is to reduce both our consumption and the waste generated throughout the creation of material wealth. This is where sustainable manufacturing comes in.
Importance of Sustainable Manufacturing and Indonesia’s Stance
Sustainable manufacturing is the investment for the future. For one, taking on a holistic approach will see the implementation of green schemes minimising impact and improving performance throughout the entire value chain. This will result in the conservation of natural resources and community enhancements. The creation of an eco-friendly industrial landscape will also increase the safety of facilities and the community consuming these products at large.
When it comes to sustainability in Indonesia, it was ranked 151st in the Global Sustainability Index back in 2020. Having announced its goal to integrate low-carbon, green growth into its national development strategy in 2017, a stream of pledges, strategies, and action plans have since been drafted to achieve economic, social, livelihood and ecosystem and landscape resilience. In addition, to support sustainability and resilient recovery, systemic reforms such as a social protection system, national health system, tourism, and investment towards a green economy have been embarked upon to negate hurdles that arose due to the pandemic. Beyond governmental efforts, there has been an increased public awareness on issues affecting the environment, encouraging a shift towards sustainable modes of living. For example, in a survey of 1,000 Indonesian consumers, 73% were concerned about global warming, 53% about carbon emission, and 50% about landfills full of rubbish.
Good Prospects For Growth
This move towards green practices will undoubtedly have an impact on the steel industry in Indonesia. There is no denying that steel plays a key role in continuing economic development, especially since worldwide metals production grew by 6 times from 1950 to 2005. However, steelmaking currently contributes to approximately 8% of the world’s total carbon emissions. And in April of 2020, the steel industry suffered an unprecedented setback because of the anti-dumping duties on stainless steel from Indonesia and other Asian countries.
Despite the initial drop in demand for steel during the pandemic, Indonesia expects to see an increase in steel consumption by up to 21.4 million tonnes by 2025. With the foreseeable increase in demands, and understanding that steel functions as the backbone of sustainable initiatives, under the updated Nationally Determined Contribution, the steel industry will implement CO2 recovery, improvement process in smelter and scrap utilisation.
Relaying Gunung Prisma’s advocacy of these national initiatives, Liwa Supriyanti explains, “While action plans are implemented throughout Indonesia to support sustainable manufacturing, Gunung Prisma’s green commitment remains intact. Aiming to create a sustainable industry, we continuously build on relationships based on mutual trust so that clients and communities remain confident in our company’s vision.”
Continuing to Break the Status Quo
Regardless of the massive shifts and changes, many consumers remain sceptical about sustainability claims made by specific companies, as they feel that many do not have their best interest at heart. Due to this, there is an increased demand for brands and businesses to maximise transparency.
As Gunung Prisma makes the most of current circumstances to take the business to new heights, sustainable manufacturing remains at the top of the agenda. With full comprehension of the universal need for steel, Gunung Prisma, alongside Liwa Supriyanti, continuously ensure that the company’s steel sourcing is in alignment with its green commitment. This is emphasised by Gunung Prisma’s primary responsibility, which is to “deliver sustainable economic growth, social development and environmental protection in a responsible manner.”
As a key player in the steel industry, Gunung Prisma’s bold measure of corporate social responsibility and providing holistic steel solutions ensures the strengthening of the communities for the future. By delivering the best materials to all customers and clients, building a better environment for the present and the future is made easy.