Forum says decarbonisation can boost manufacturing growth

The World Economic Forum has published, with Tata Consultancy Services, a guide to decarbonising manufacturing and supply chains. It argues that cutting emissions can support industrial growth, resilience and competitiveness.

The paper says manufacturers should treat decarbonisation as a core business strategy rather than a compliance exercise. It draws on consultations with more than 50 industry leaders, experts and innovators across 13 industrial sectors.

Its findings suggest companies do not have to choose between cutting emissions and improving performance. The guide groups the business case into three areas: lower operating costs, stronger business continuity and resilience, and new revenue opportunities.

The green economy now exceeds USD $5 trillion a year and is growing at twice the pace of conventional revenues, the Forum says. Yet while two-thirds of the world's largest publicly listed companies have net-zero targets, only 8% have decarbonisation plans and 4% have allocated working capital to implement them.

Phased approach

The guide sets out a staged approach for manufacturers. It recommends starting with efficiency improvements such as process optimisation, asset upgrades and energy savings, before moving to renewable energy, electrification and other clean-energy measures.

Over time, companies can work with suppliers and customers to change products, materials, business models and wider value chains, the report says. It presents this as a way to build momentum through early cost savings before taking on more complex changes.

The paper reviews 10 solution areas, including process efficiency, electrification, fuel switching, energy storage, sustainable product design, circular business models, carbon capture, supplier collaboration, reducing product-use emissions and digitalisation. It advises executives to weigh these options against emissions impact, implementation complexity, return on investment and total cost of ownership.

Case studies

The report cites six case studies to show how emissions reduction can translate into commercial results. These include a 107% return on investment from Foxconn Industrial Internet's eco-design platform; a 43% increase in production capacity and a 17% reduction in transformation costs at Beko's Eskişehir factory; and products and services with demonstrated environmental benefits accounting for 75% of Schneider Electric's total revenues in 2025.

The examples support a broader argument that decarbonisation can shape both cost structures and product strategy. The paper also links it to resilience, saying companies can reduce exposure to energy-price volatility, climate risks and supply disruptions while building workforce skills.

Tata Consultancy Services, which worked with the World Economic Forum on the paper, said manufacturers face the challenge of balancing emissions reductions with margins and growth across complex industrial value chains.

"Many manufacturers still face a conundrum: how to decarbonise complex industrial value chains while protecting margins and sustaining growth. We need to reframe decarbonization as a value-creation strategy that can strengthen operational efficiency, reduce exposure to energy and supply risks, and unlock new revenue opportunities. This report gives senior leaders a practical pathway to navigate implementation complexity and turn decarbonisation ambition into measurable business outcomes," said Anupam Singhal, President - Manufacturing, Tata Consultancy Services.

Wider barriers

Beyond individual companies, the report identifies conditions needed to scale industrial decarbonisation. These include stronger collaborative contracts, financing and pricing mechanisms that improve project economics, technical training to support business cases, and better supply-chain transparency and emissions data.

This reflects the view that manufacturers cannot make the transition in isolation, particularly when supply chains stretch across multiple jurisdictions and industries. Better data and access to financing, in particular, remain constraints for many businesses trying to move from targets to funded delivery.

The guide is aimed at senior executives deciding where to invest and how to sequence projects. Its central message is that manufacturers should prioritise measures that deliver immediate savings, then use those gains to support wider changes in energy use, products and supply chains.

The paper compares each of the 10 solution areas by business value, greenhouse-gas reduction potential and implementation complexity to help executives decide where to act and invest.