Manufacturers urged to treat decarbonisation as growth

The World Economic Forum and Tata Consultancy Services have published a report on decarbonisation in manufacturing, arguing that many manufacturers still treat cutting emissions as a compliance exercise rather than a route to growth.

The report says industrial groups are missing commercial opportunities by failing to build clear business cases for decarbonisation. It adds that the green economy is now worth more than USD $5 trillion a year and is growing at twice the pace of conventional revenues.

The findings come amid signs that business support for net zero has weakened in some markets. Research cited in the announcement from the British Standards Institution found that the share of UK firms committed to net zero fell to 64% from 83% in a year, while 86% of those surveyed identified cost as the main barrier.

The World Economic Forum and TCS say the gap between stated ambition and investment remains wide. While two-thirds of the world's largest listed companies have net-zero targets, only 8% have decarbonisation plans and 4% have allocated working capital to implement them.

Business case

The paper draws on more than 50 consultations with manufacturers, supply chain executives, academics, civil society groups and policymakers across 13 industrial sectors. It identifies three main areas where decarbonisation can create financial value: lower operating costs, stronger business continuity and resilience, and new revenue growth.

The report also sets out a framework for choosing between 10 decarbonisation options. Each is assessed against financial return, greenhouse gas reduction potential and implementation complexity, aiming to give senior executives a basis for deciding where to invest first.

The document outlines a phased model, starting with early efficiency measures, moving to renewable and clean energy adoption, and then to broader net-zero strategies. The authors present it as a practical route for manufacturers seeking to link emissions cuts with financial outcomes.

Several case studies show how companies have connected environmental measures to operational or commercial results. According to the report, Foxconn Industrial Internet recorded a 107% return on investment from its eco-design platform.

Beko's Eskişehir factory is cited as having increased production capacity by 43% while reducing transformation costs by 17%. Schneider Electric is included as an example of a manufacturer generating substantial sales from products and services with environmental benefits, which accounted for 75% of its total revenues in 2025.

Investment gap

The report's central argument is that many industrial businesses still approach decarbonisation defensively, focusing on regulatory pressure or reputational risk rather than returns. It suggests this may leave companies exposed not only to energy and supply chain shocks, but also to missed demand in markets for lower-emission products and services.

Manufacturers have faced persistent pressure on energy costs, raw materials and logistics in recent years. In that context, the paper links decarbonisation as much to efficiency gains and risk management as to emissions targets.

It also reflects a broader industry debate over the pace and cost of the net-zero transition. Some companies have pulled back from public climate commitments as higher borrowing costs and weaker economic growth have sharpened the focus on short-term returns.

For advocates of industrial decarbonisation, the challenge is no longer limited to proving environmental need. It is increasingly about showing where spending can protect margins, support output and create sales opportunities in a more carbon-conscious market.

Anupam Singhal, President - Manufacturing at Tata Consultancy Services, said: "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."