EA Earth Action offers its expert take on the decarbonization of precision machinery manufacturers, based on its work with Swiss clients.
The precision machinery industry designs and manufactures high-performance machine tools used for complex, high-accuracy manufacturing processes. These machines are critical in sectors like aerospace, medical devices, automotive, electronics, watchmaking, and industrial equipment. Precision machines include multi-axis milling machines, turning centers, grinding systems, and automation solutions – all engineered to meet tight tolerances and long-term durability requirements. Renowned for their commitment to precision, reliability, and innovation, Swiss manufacturers in particular exemplify the industry’s highest standards of quality, setting global benchmarks for craftsmanship and performance.
The challenges facing the precision machinery industry
Precision machinery manufacturers face mounting pressure from reporting requirements under new regulations such as the Corporate Sustainability Reporting Directive (CSRD), which implies greater transparency and accountability on their environmental, social, and governance (ESG) performance.
Specifically, the CSRD requires detailed disclosures on greenhouse gas emissions, including Scope 3 emissions – those indirect emissions that occur across the value chain.
For an industry working with long product lifecycles and complex global supply chains, this shift demands not only robust data collection and traceability, but also strategic alignment with sustainability goals, such as eco-design, supplier engagement, and lifecycle impact reduction.
Additionally, manufacturers face rising expectations from investors, customers, and employees. Investors demand clear ESG commitments, while customers increasingly favor low-carbon solutions to meet their own climate targets and employees increasingly value authentic sustainability commitments.
Read more about the CSRD: CSRD Simplified. Action still required.
Beyond compliance, the true challenge for precision machinery manufacturers lies in understanding – and reducing – their actual environmental impact across the full life cycle of their products.
For machine manufacturers, scope 3 emissions, namely the use of machines and purchases for the manufacture of machines are the main contributors to the carbon footprint.
In particular, Category 3.1 (Purchased Goods and Services) of the GHG protocol has a significant impact on the carbon footprint. This category covers the emissions from the extraction, production, and transport of all raw materials, components, and services used in manufacturing the machines. For manufacturers, this includes metals, electronics, and outsourced parts – often the largest source of upstream emissions. Most importantly, the contribution of Category 3.11 (Use of Sold Products) of the GHG protocol is sizeable. This category includes emissions generated when customers operate the machines over their lifetime, by far the most prominent source of downstream impacts which reflects the energy consumption, efficiency, and durability of the equipment.
Decarbonization among precision machinery manufacturers
Precision machinery manufacturers are actively engaging in decarbonization efforts, focusing on reducing emissions across their value chains, especially in scope 1 and 2 emissions. However, scope 3 represents the bulk of emissions generated and these emissions therefore need to be tackled more aggressively. A survey conducted in 2030 reports that 60% of Swiss manufacturers aim to cut scope 3 emissions by up to 20% by 2030, showing that reducing scope 3 emissions is becoming a strategic priority for the industry.
Life cycle thinking has been instrumental in helping manufacturers understand where their environmental impacts lie and how to reduce them effectively. A decade ago, 90% of a machine’s carbon footprint stemmed from its use phase. This insight spurred innovation in energy efficiency, leading to major improvements. Today, the picture has evolved: with lower consumption during operation, the impact is now more evenly split – often around 60/40 or 70/30 between machine use and the emissions embedded in purchased materials. This shift highlights not only the progress made, but also the growing importance of addressing upstream impacts. LCAs continue to serve as a critical tool in guiding these strategic decarbonization efforts across the value chain.
To address emissions from purchased goods and services, companies must work more closely with suppliers – particularly around material selection and sourcing practices. Prioritizing low-carbon or recycled inputs and increasing transparency in the supply chain offers significant yet underexplored potential to reduce upstream emissions. Efforts to extend machine lifespans through retrofits and maintenance also play a key role in minimizing lifecycle impacts.
The industry has made progress in reducing machine energy consumption, but greater client-level impact is still possible. Since machines run continuously for years, even small gains in efficiency can drive significant emissions reductions. However, manufacturers often lack visibility into how machines are used – which heavily influences energy consumption. Closer collaboration with clients is therefore crucial.
The way forward: a roadmap for decarbonization
Addressing scope 1&2 emissions remains an imperative to ensure coherence and must be tackled as the company has full control over these emissions. For instance, installing solar panels or upgrading electricity contracts can lead to significant reductions in the short term without major technical challenges, while delivering financial benefits. These measures also help mitigate the risks associated with fluctuating energy costs.
Addressing Scope 3 emissions requires a shift in mindset – from focusing solely on operations to considering the entire life cycle of a product. For precision machinery manufacturers, eco-design is a powerful lever, as it builds on the industry’s core strengths: engineering excellence, product durability, and technical innovation.
By designing machines that are more energy-efficient, longer-lasting, easier to maintain, and built with lower-impact materials, manufacturers can significantly reduce emissions across the product’s entire life span of their products. Leveraging Swiss craftsmanship and quality —where environmental performance is intrinsically linked to product excellence — would position the industry as a value-driven alternative to purely price-based competition.
Earth Action’s Value Proposition for Precision Machinery Manufacturers
Precision machinery manufacturers operate within complex global supply chains and manage products with extended lifecycles. These factors present unique challenges in accurately assessing and reducing environmental impacts. EA offers tailored solutions to navigate these complexities effectively.
Optimizing data collection
Long production cycles and intricate supply chains necessitate customized data collection and treatment strategies. EA assists manufacturers in developing standardized and automated data collection processes, enhancing the accuracy of carbon footprint assessments. This approach not only improves efficiency but also reduces the burden on teams across various company sites, ensuring more reliable results. It’s about striking the right balance between automation and standardization, and tailored data collection that adapts to each client’s unique context.
Carbon footprinting and life cycle assessment
Understanding the full environmental impact of machinery requires a comprehensive view of its entire lifecycle. EA conducts and carbon footprint screenings, identifying key hotspots and opportunities for emission reductions, as well life cycle assessments. These insights enable manufacturers to implement effective strategies for minimizing their environmental footprint.
Strategic climate action planning
EA supports manufacturers in:
- Identifying actionable measures to address significant carbon footprint hotspots across operations.
- Developing clear, step-by-step plans to advance the company’s overall climate strategy.
- Balancing long-term climate objectives with short-term initiatives that demonstrate a tangible commitment to sustainability.
- Positioning Swiss quality and environmental excellence as a competitive advantage beyond price.
By leveraging EA’s expertise, precision machinery manufacturers can effectively navigate the complexities of decarbonization, ensuring compliance with evolving regulations and meeting stakeholder expectations, while unlocking new value.
For more information on how Earth Action can assist your organization in achieving its sustainability goals, please visit our Services & Solutions page and browse our offer catalogue.
