Kestria Industrial and Production sustainability survey report

Authors

Industrial / Production Practice Team

Published
Feb. 26, 2025
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10 minutes
Kestria Industrial and Production sustainability survey report
In today's competitive talent market, companies with sustainability embedded in their operations attract even more top talent, as professionals seek environmentally responsible employers. Sustainability has become a strategic priority shaping the way organisations operate, innovate and attract the best talent. Embracing sustainable practices addresses environmental concerns while enhancing efficiency, driving innovation and building resilience. Aligning business objectives with sustainable goals is now essential to remaining relevant and competitive.

This report presents the findings of a global external survey conducted by Kestria Industrial/Production Practice Group to explore the current state of sustainable production practices across diverse industrial sectors. The survey aimed to gather actionable insights to help organisations assess their practices, identify areas for improvement and uncover the most effective approaches to reducing environmental impact. It also sought to assess the awareness, attitudes and motivations of decision-makers and the barriers to progress towards sustainable operations. Additionally, the survey compared efforts across sectors to highlight best practices and emerging opportunities.

The objectives of the survey were:

  • Assess the current implementation of sustainable production practices: Understand how organisations are adopting and integrating sustainability into their operations.
  • Identify barriers to progress: Highlight the challenges that limit the adoption of sustainable practices, including cost, resource constraints and external market factors.
  • Measure awareness and attitudes: Evaluate the understanding and commitment of decision-makers toward the benefits of sustainability.
  • Explore motivations and drivers: Examine the key factors encouraging organisations to adopt sustainable practices, including corporate social responsibility, regulatory compliance and market demand.
  • Uncover opportunities for improvement: Gather insights into innovative strategies, technologies and partnerships that can drive sustainability efforts further.

Kestria’s Industrial/Production Practice Group gathered insights from over 100 senior executives from more than 30 countries and six continents. The respondents come from organisations of all sizes, ranging from small businesses to large enterprises. The survey has a strong presence of executive leaders, reflecting the perspectives of key decision makers. It also includes respondents from technical and product roles, human resources and specialist roles, providing a wide range of functional expertise and industry insight.

The findings were grouped into the following themes:

  • Current state of sustainable practices
  • Barriers to sustainable implementation
  • Awareness and attitudes
  • Drivers and motivation
  • Opportunities and success stories

Current state of sustainable practices

How would you rate your organisation’s current implementation of sustainable production practices?

The survey revealed that respondents were at different stages of implementing sustainable production practices. Most organisations indicated they had taken steps to integrate sustainability, with many reporting moderate progress, while a significant number had reached advanced stages of implementation. A smaller group reported full integration of sustainable practices.  However, a small number of respondents admitted to having no implementation at all. These findings highlight the different stages of progress on the sustainability journey in different organisations.

Valued client
Industrial Sector

‘Sustainability in our manufacturing process presents both opportunities and risks. As our industry shifts toward more eco-friendly practices, it is crucial to understand the potential benefits and challenges. While sustainability in manufacturing opens up many exciting opportunities for growth, innovation and positive impact, it also presents risks in terms of cost, supply chain and market challenges. We must weigh these factors carefully to develop strategies that allow them to capitalize on sustainability while managing potential downsides.’

Which of the following sustainable practices has your organisation adopted?

The most commonly implemented policy is waste reduction and recycling, which is prioritised by the majority of organisations. Other significant measures include the implementation of automated or digital processes, energy-efficient production methods, and the reduction of carbon footprints, all of which reflect a strong commitment to operational and environmental efficiency. Efforts such as sustainable sourcing of materials and water conservation are also notable, highlighting the integration of resource-conscious strategies. Additionally, some organisations reported adopting other bespoke sustainability initiatives, demonstrating a diverse approach to addressing environmental challenges. These practices reflect a strong commitment to integrating sustainability into diverse aspects of operations.

Philipp Mathieu
Managing Partner, Kestria Switzerland

‘For global engineering companies, the adoption of waste minimisation, energy-efficient production and digital automation is key to improving competitiveness. My client, a global engineering company headquartered in Switzerland and manufacturing locally, is already integrating these practices to strengthen its market position with its demanding customers.’

How effective do you believe your organisation’s current sustainable production practices are reducing environmental impact?

Varying levels of success in sustainability efforts were evident when organisations assessed the effectiveness of their current sustainable production practices in reducing environmental impact. The majority described their practices as moderately effective, indicating ongoing efforts with noticeable but incomplete progress. A significant number rated their practices as advanced in effectiveness, demonstrating significant progress in sustainability. A smaller group viewed their practices as very effective. However, a minority admitted that their practices were not effective, indicating challenges or gaps that need to be addressed.

Barriers to sustainable implementation

What are the primary barriers your organisation faces in adopting sustainable production practices?

When asked about the barriers to adopting sustainable practices, several challenges emerged. The cost of implementation emerged as the most significant barrier, cited by a large proportion of organisations. This was followed by a lack of knowledge or expertise, highlighting the need for capacity building and technical support in sustainability efforts.

Other notable barriers include the limited availability of sustainable materials and a lack of customer demand, reflecting external market pressures. Regulatory or legal challenges and a lack of budget were also identified as further barriers to the adoption of sustainable practices. These findings underscore the complex interplay of internal and external factors hindering progress in sustainable production practices.

Steve McKinney
President, Kestria South Korea

‘True sustainability isn't just about reducing our impact; it's about creating a regenerative future. It's about recognizing the interconnectedness of all things and embracing innovation that not only minimizes harm but also restores and replenishes the planet. Living in Seoul, where recycling is not just a practice but a way of life – a necessity given the density of our population – reinforces this truth. We understand that our actions have consequences and that responsible consumption and resource management are crucial for the well-being of our community and the planet.’

Awareness and attitudes 

How aware are the decision-makers in your organisation of the benefits of sustainable production practices?

While most decision-makers have a solid awareness of sustainability, there is still room for improvement in fostering a deeper and broader understanding. A significant proportion of respondents rated their decision-makers as having advanced awareness, indicating a deep understanding of the benefits sustainability can bring. A smaller yet notable group reported full awareness, reflecting a broad understanding of the impact of sustainability. 

Meanwhile, many respondents rated their decision-makers awareness as moderate, suggesting that they recognise the benefits but lack a detailed understanding. Only a very small minority indicated that their decision-makers were not aware, highlighting gaps in knowledge within a few organisations.

To what extent do you feel that sustainable production practices contribute to your organisation’s competitive advantage?

Respondents shared mixed views on the contribution of sustainable production practices to their organisation’s competitive advantage. A significant proportion of respondents rated the contribution as moderate, indicating that sustainability efforts provide noticeable, but not transformative, benefits to competitiveness. Another group felt that sustainability practices made a significant contribution, highlighting its role as a strategic advantage for these organisations.

Meanwhile, a considerable number of respondents indicated that sustainability practices contribute little, reflecting a minimal impact on their competitive position. A smaller minority said that such practices did not contribute at all to their advantage, pointing to either a lack of implementation or a misalignment with their business strategy.

Drivers and motivation

What is the primary driver for your organisation to adopt sustainable production practices?

A combination of external pressures and internal motivations are driving organisations towards sustainability. The most important motivation is corporate social responsibility (CSR), with many organisations viewing sustainability as an important part of their ethical and social obligations. This is followed by market demand and customer pressure, reflecting external expectations for more sustainable operations.

Other key drivers include brand reputation, where sustainability plays a role in enhancing public perception, and regulatory compliance, which highlights the influence of legal and policy requirements.

What external factors have the greatest impact on your organisation’s ability to implement sustainable production practices?

External factors play a significant role in shaping the ability of organisationsto implement sustainable production practices. Customer preferences emerged as the most influential factor, reflecting the importance of aligning sustainability efforts with consumer demands. Government regulations followed closely, emphasising the role of legal frameworks in driving organisational change.

Brand reputation and industry standards were equally significant, demonstrating how external benchmarks and public perception shape sustainability strategies. Economic conditions also played a substantial role, highlighting the impact of market and financial stability on the feasibility of adopting sustainable practices. The availability of sustainable technology was identified as a limiting factor for some organisations, demonstrating the need for accessible and innovative solutions.

These findings underscore the complex interplay of consumer expectations, regulatory environments and financial realities in shaping sustainability efforts.

Monicca Yan
Managing Director, Kestria Singapore

‘The survey shows customers‘ expectations (possibly the listed companies) and government regulations are the key drivers for companies to adopt eco-friendly practices. Adopting sustainable practices will become imperative to organizations growth strategy when more companies put sustainable practices as part of their vendor selection. The present state of environmentally sustainable production practices is a positive move from just a few years ago, where organization leaders lack the knowledge in ESG or the importance of ESG.’

Opportunities and success stories

What do you believe are the most significant opportunities for improving sustainable production practices within your organisation?

Respondents identified key opportunities for improving sustainable production practices. Below is a summary of the top 10 points:

  1. Transition to clean and renewable energy sources (e.g., solar, wind, hydro) and optimise energy grids for efficiency.
  2. Improving resource efficiency through energy conservation, waste reduction, and recycling initiatives.
  3. Promote local sourcing and simplify supply chains to reduce logistics and environmental impacts.
  4. Advocate for government support, regulatory alignment, and industry standards to drive sustainable practices.
  5. Innovate with new materials and sustainable technologies to improve production methods.
  6. Educate customers and stakeholders to create demand for sustainable solutions.
  7. Use efficient construction materials and managing waste and water effectively.
  8. Scale production sustainably while partnering with sustainability-oriented companies.
  9. Reduce dependence on energy cost drivers and improve infrastructure for renewable energy integration.
  10. Meet with production and quality standards to gain competitive advantage.

Summary

The results of this survey provide a comprehensive view of how organisations across diverse industrial and manufacturing sectors are navigating their way towards sustainable production practices. While many have made moderate progress, significant barriers such as cost constraints, limited expertise and external market pressures continue to hinder widespread adoption.

Decision-makers generally demonstrate a solid awareness of the benefits of sustainability, but gaps remain in fostering a deeper understanding and translating it into actionable strategies. Key motivations driving organisations include corporate social responsibility, regulatory compliance and market demand, while external factors such as customer preferences and economic conditions shape the pace of implementation.

Despite these challenges, the survey highlights numerous opportunities for improvement. Organisations can leverage clean and renewable energy, optimise supply chains, innovate with sustainable materials and align with regulatory and industry standards to achieve long-term sustainability goals. These findings underline the growing recognition of sustainability as both a responsibility and a strategic advantage for organisations striving to remain competitive in a rapidly evolving marketplace.

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