ESG Growth: PLC Vendors Leading Sustainability

Introduction to ESG

In this article, we will introduce you to ESG which stands for Environmental, Social, and Governance and we’ll discuss why ESG Management is a rapidly growing undertaking among manufacturers.

There is growing evidence that companies with strong ESG management and performance are more likely to outperform their competition over the long term.

We’ll also discuss ESG management reporting and introduce you to some recognized standards and reporting frameworks.

In addition, we’ll talk about how PLC vendors are participating in ESG Management and the impact their products are having on their ESG reports.

Ok… let’s get started.

The importance of ESG management

We are now in a world where ESG management isn't just a buzzword but a critical strategy for manufacturers.

Today, as concerns about climate change, environmental consciousness, carbon emissions, and pollution intensify, ESG has emerged as the guiding light for corporate responsibility.

But wait a minute… this isn't entirely new; think back to historic management philosophies like ISO 9001 and Corporate Social Responsibility (CSR). One could argue that these initiatives paved the way for ESG, emphasizing quality standards and ethical practices.

ISO 9001 continues to be used by industries as a framework to establish and maintain effective quality management practices with the goal of zero defects.

CSR is a concept whereby businesses take responsibility for the impact of a company's activities on society and the environment.

Compliance with ISO 9001 is usually seen as a mark of quality and a CSR enhances a company's reputation, brand image, and long-term profitability.

Interestingly, an ISO9001-certified company can create quality widgets that nobody wants to buy.

ESG definition

So… what is ESG? It is a set of standards for how a company operates and its effect on the planet and the people living on it. The three pillars or topic areas are Environment, Social, and Governance.

The company’s goal is to evaluate and report on its impact in three areas: environmental sustainability, social responsibility, and corporate governance.

It would seem that ESG is here for the long run. Similar to ISO 9001 certification, investors, regulators, and consumers are asking companies to report on their ESG performance.

Benefits of ESG management

There are lots of benefits to adopting ESG management. For example, adopting energy-efficient technologies can reduce utility expenses and reduce costly production line defects.

ESG management reporting involves the disclosure of a company's performance and practices related to environmental sustainability, social responsibility, and corporate governance.

This type of reporting provides stakeholders with details about how a company manages its ESG risks and opportunities.

There are internationally recognized reporting standards and frameworks to guide companies in their ESG reporting efforts.

Examples include:

• The Global Reporting Initiative (GRI),
• The FTSE4Good Index,
• And The “STOXX Global ESG Leaders” Index.

Adhering to these standards helps companies ensure consistency, comparability, and credibility in their ESG disclosures.

Transparency and trust are key. These reports give stakeholders a birds-eye view as companies bear it all.

Several PLC vendors participate in ESG management reporting such as Siemens, Rockwell, and OMRON.

Many companies in the industrial automation sector have seen the light and recognize the importance of integrating ESG management into their business practices.

OMRON and ESG management

Okay… let’s zero in on a highly-rated industrial automation company across ESG dimensions.

OMRON has been listed within the top 97% among peer sector companies on the globally recognized Dow Jones Sustainability World Index as identified by “S&P Global” through the Corporate Sustainability Assessment (CSA).

OMRON received top scores in the categories of emissions management, resource efficiency & circularity, waste management, and water consumption.

Let’s look at how OMRON’s product line contributes to their ESG management success.

OMRON’s NX5 PLC offers advanced functionality for process optimization and control, allowing companies to improve efficiency, minimize waste, and reduce resource consumption.

The NX5 PLC supports remote monitoring and predictive maintenance capabilities, enabling companies to monitor equipment performance in real-time and identify potential issues before they result in defective products.

The NX5 has a high-speed SQL communication feature that facilitates the transfer of high‐resolution production data to a database shortening the time between when a problem occurs and when it is detected. Defect prevention and yield improvement are the result.

If temperature control is crucial, OMRON offers the NX-HAD Analog Input unit, renowned for its high speed and resolution, alongside the NX-HTC Temperature Control Unit, equipped with high resolution and built-in PID control.

Real-world application: solar panel production

Ok… let’s look at a real-world example of where the NX5 PLC can reduce or eliminate product defects, thus reducing waste, improving energy efficiency, and increasing yield.

Here is the problem…

The use of solar panels using polycrystalline is growing in popularity worldwide.

To make poly cells, silicon fragments are melted together to form wafers.

Manufacturing high-quality polycrystalline ingots is difficult because furnace temperature variations cause defects.

If the temperature data transfer to and from databases is slow, the time between when a problem occurs and when it is detected will result in defects.

Here’s the solution… Connected alongside the NX5 controller, are the NX-HAD Analog input unit and the NX-HTC Temperature Control Unit.

And just to ensure cross-device communication speed, the NX5 supports EtherCAT characterized by its high-speed data network and synchronized timing across all devices. This capability results in high-resolution data collection.

Summary

OK… that should do it for this article. Hopefully, we have given you a better understanding of how manufacturers can benefit from ESG Management.

Let’s recap a few key points;

• ESG stands for Environmental, Social, and Governance.
• ESG is a set of standards for how a company operates regarding the planet and the people who live on it.
• ESG management reporting involves the disclosure of a company's performance and practices related to environmental sustainability, social responsibility, and corporate governance.
• There are internationally recognized reporting standards and frameworks to guide companies in their ESG reporting efforts.
• Several PLC vendors participate in ESG management reporting such as Siemens, Rockwell, and OMRON.

If you would like to know more about the features and functionality of the OMRON NX5 PLC, check out our course called Omron PLC Advanced Skills – NX5 Controllers.

This course dives deeper into the NX5 controller and looks at how Omron contributes to ESG Management through some of its advanced features such as Automatic Playback.

This course was developed in partnership with Omron. At the end of the course, you will receive a certificate of completion from Omron Automation.

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