{"id":13638,"date":"2025-07-16T18:54:01","date_gmt":"2025-07-17T00:54:01","guid":{"rendered":"https:\/\/board.org\/?p=13638"},"modified":"2026-01-30T01:13:57","modified_gmt":"2026-01-30T07:13:57","slug":"5-hard-truths-about-leading-esg-in-manufacturing-and-how-leaders-are-solving-them","status":"publish","type":"post","link":"https:\/\/board.org\/esg-csr\/resources\/5-hard-truths-about-leading-esg-in-manufacturing-and-how-leaders-are-solving-them\/","title":{"rendered":"5 Hard Truths About Leading ESG in Manufacturing (and How Leaders Are Solving Them)"},"content":{"rendered":"[vc_row type=”in_container” full_screen_row_position=”middle” column_margin=”default” column_direction=”default” column_direction_tablet=”default” column_direction_phone=”default” scene_position=”center” text_color=”dark” text_align=”left” row_border_radius=”none” row_border_radius_applies=”bg” overflow=”visible” overlay_strength=”0.3″ gradient_direction=”left_to_right” shape_divider_position=”bottom” bg_image_animation=”none”][vc_column column_padding=”no-extra-padding” column_padding_tablet=”inherit” column_padding_phone=”inherit” column_padding_position=”all” column_element_direction_desktop=”default” column_element_spacing=”default” desktop_text_alignment=”default” tablet_text_alignment=”default” phone_text_alignment=”default” background_color_opacity=”1″ background_hover_color_opacity=”1″ column_backdrop_filter=”none” column_shadow=”none” column_border_radius=”none” column_link_target=”_self” column_position=”default” gradient_direction=”left_to_right” overlay_strength=”0.3″ width=”1\/1″ tablet_width_inherit=”default” animation_type=”default” bg_image_animation=”none” border_type=”simple” column_border_width=”none” column_border_style=”solid”][vc_column_text text_direction=”default”]If your company is involved in heavy industry, you know the pressure comes from every direction. One set of stakeholders is demanding aggressive decarbonization of complex, capital-intensive manufacturing processes. Another is pressuring you to scale back your sustainability commitments altogether. Meanwhile, your customers want more data, more disclosures, and more transparency \u2014 fast.\u00a0<\/span>\u00a0<\/span><\/p>\n

For sustainability leaders in manufacturing, the stakes are different. You\u2019re trying to move massive, global operations in a more sustainable direction without disrupting the business or losing credibility internally. <\/span>\u00a0<\/span><\/p>\n

That tension was the focus of a recent confidential ESG & CSR Board huddle, where sustainability leaders from industrial manufacturers gathered to discuss what it <\/span>really<\/span><\/i> looks like to lead ESG in this environment. Across companies and sectors, the challenges are strikingly consistent \u2014 but so are the strategies emerging to meet them.\u00a0<\/span>\u00a0<\/span><\/p>\n

Here are five hard truths these leaders shared and how they\u2019re finding paths forward.<\/span>\u00a0<\/span>[\/vc_column_text][\/vc_column][\/vc_row][vc_row type=”in_container” full_screen_row_position=”middle” column_margin=”default” column_direction=”default” column_direction_tablet=”default” column_direction_phone=”default” scene_position=”center” text_color=”dark” text_align=”left” row_border_radius=”none” row_border_radius_applies=”bg” overflow=”visible” overlay_strength=”0.3″ gradient_direction=”left_to_right” shape_divider_position=”bottom” bg_image_animation=”none”][vc_column column_padding=”no-extra-padding” column_padding_tablet=”inherit” column_padding_phone=”inherit” column_padding_position=”all” column_element_direction_desktop=”default” column_element_spacing=”default” desktop_text_alignment=”default” tablet_text_alignment=”default” phone_text_alignment=”default” background_color_opacity=”1″ background_hover_color_opacity=”1″ column_backdrop_filter=”none” column_shadow=”none” column_border_radius=”none” column_link_target=”_self” column_position=”default” gradient_direction=”left_to_right” overlay_strength=”0.3″ width=”1\/1″ tablet_width_inherit=”default” animation_type=”default” bg_image_animation=”none” border_type=”simple” column_border_width=”none” column_border_style=”solid”][vc_column_text text_direction=”default”]\n

1. <\/span>CSRD Is Driving a Flood of Customer ESG Data Requests<\/span><\/span>\u00a0<\/span><\/h2>\n[\/vc_column_text][\/vc_column][\/vc_row][vc_row type=”in_container” full_screen_row_position=”middle” column_margin=”default” column_direction=”default” column_direction_tablet=”default” column_direction_phone=”default” scene_position=”center” text_color=”dark” text_align=”left” row_border_radius=”none” row_border_radius_applies=”bg” overflow=”visible” overlay_strength=”0.3″ gradient_direction=”left_to_right” shape_divider_position=”bottom” bg_image_animation=”none”][vc_column column_padding=”no-extra-padding” column_padding_tablet=”inherit” column_padding_phone=”inherit” column_padding_position=”all” column_element_direction_desktop=”default” column_element_spacing=”default” desktop_text_alignment=”default” tablet_text_alignment=”default” phone_text_alignment=”default” background_color_opacity=”1″ background_hover_color_opacity=”1″ column_backdrop_filter=”none” column_shadow=”none” column_border_radius=”none” column_link_target=”_self” column_position=”default” gradient_direction=”left_to_right” overlay_strength=”0.3″ width=”1\/2″ tablet_width_inherit=”default” animation_type=”default” bg_image_animation=”none” border_type=”simple” column_border_width=”none” column_border_style=”solid”][vc_column_text text_direction=”default”]Several sustainability manufacturing leaders in the huddle pointed to regulations, primarily the EU\u2019s Corporate Sustainability Reporting Directive (CSRD), as the most immediate pressure on their teams \u2014 though the recent delay tied to the <\/span>Omnibus Directive<\/span><\/a> may have given an illusion of relief.<\/span>\u00a0<\/span><\/p>\n

One Director of ESG privately shared that their customer requests have gone through the roof triggered by CSRD, saying,<\/span> \u201cWe\u2019re now required to report all of these customer requests that are trying to align to the CSRD, and we\u2019re not necessarily prepared for it.\u201d<\/span>\u00a0<\/span><\/p>\n

Customer-driven reporting requests are coming faster and with greater complexity, especially from global clients who are racing to meet their own compliance obligations.<\/span>\u00a0<\/span>[\/vc_column_text][\/vc_column][vc_column column_padding=”no-extra-padding” column_padding_tablet=”inherit” column_padding_phone=”inherit” column_padding_position=”all” column_element_direction_desktop=”default” column_element_spacing=”default” desktop_text_alignment=”default” tablet_text_alignment=”default” phone_text_alignment=”default” background_color_opacity=”1″ background_hover_color_opacity=”1″ column_backdrop_filter=”none” column_shadow=”none” column_border_radius=”none” column_link_target=”_self” column_position=”default” gradient_direction=”left_to_right” overlay_strength=”0.3″ width=”1\/2″ tablet_width_inherit=”default” animation_type=”default” bg_image_animation=”none” border_type=”simple” column_border_width=”none” column_border_style=”solid”][image_with_animation image_url=”13249″ image_size=”medium_large” animation_type=”entrance” animation=”None” animation_movement_type=”transform_y” hover_animation=”none” alignment=”” border_radius=”none” box_shadow=”none” image_loading=”default” max_width=”100%” max_width_mobile=”default”][\/vc_column][\/vc_row][vc_row type=”in_container” full_screen_row_position=”middle” column_margin=”default” column_direction=”default” column_direction_tablet=”default” column_direction_phone=”default” scene_position=”center” text_color=”dark” text_align=”left” row_border_radius=”none” row_border_radius_applies=”bg” overflow=”visible” overlay_strength=”0.3″ gradient_direction=”left_to_right” shape_divider_position=”bottom” bg_image_animation=”none”][vc_column column_padding=”no-extra-padding” column_padding_tablet=”inherit” column_padding_phone=”inherit” column_padding_position=”all” column_element_direction_desktop=”default” column_element_spacing=”default” desktop_text_alignment=”default” tablet_text_alignment=”default” phone_text_alignment=”default” background_color_opacity=”1″ background_hover_color_opacity=”1″ column_backdrop_filter=”none” column_shadow=”none” column_border_radius=”none” column_link_target=”_self” column_position=”default” gradient_direction=”left_to_right” overlay_strength=”0.3″ width=”1\/1″ tablet_width_inherit=”default” animation_type=”default” bg_image_animation=”none” border_type=”simple” column_border_width=”none” column_border_style=”solid”][vc_column_text text_direction=”default”]\n

One leader said, \u201cA lot of customers that we deal with, particularly in big tech, really do care about the performance of our products and what’s in our products. All this to say, the pressure is here.\u201d<\/span>\u00a0<\/span><\/p><\/blockquote>\n

These demands span multiple geographies and often require product-level data that hasn\u2019t historically been tracked or requires deeper collaboration across supply chains and business units.<\/span>\u00a0<\/span><\/p>\n

One participant noted that their independent dealer network now regularly requests tailored sustainability disclosures. Another mentioned that their team is being pushed to engage more deeply with suppliers who aren\u2019t yet clear on why the data is needed or don\u2019t have the capacity to deliver it.<\/span>\u00a0<\/span><\/p>\n

Plus, several leaders shared that they\u2019re being asked to produce more with the same, or even fewer, resources. That\u2019s forcing difficult tradeoffs around where to focus: digitizing systems and embracing artificial intelligence, upskilling internal teams, or attempting to standardize data across regional business units. And while automation is a priority, there\u2019s a limit to how much progress can be made when headcount remains flat.<\/span>\u00a0<\/span><\/p>\n

No one on the call claimed to have it fully figured out, but several shared practical strategies they\u2019re pursuing to get ahead of rising data demands.<\/span>\u00a0<\/span>[\/vc_column_text][\/vc_column][\/vc_row][vc_row type=”in_container” full_screen_row_position=”middle” column_margin=”default” column_direction=”default” column_direction_tablet=”default” column_direction_phone=”default” scene_position=”center” text_color=”dark” text_align=”left” row_border_radius=”none” row_border_radius_applies=”bg” overflow=”visible” overlay_strength=”0.3″ gradient_direction=”left_to_right” shape_divider_position=”bottom” bg_image_animation=”none”][vc_column column_padding=”no-extra-padding” column_padding_tablet=”inherit” column_padding_phone=”inherit” column_padding_position=”all” column_element_direction_desktop=”default” column_element_spacing=”default” desktop_text_alignment=”default” tablet_text_alignment=”default” phone_text_alignment=”default” background_color_opacity=”1″ background_hover_color_opacity=”1″ column_backdrop_filter=”none” column_shadow=”none” column_border_radius=”none” column_link_target=”_self” column_position=”default” gradient_direction=”left_to_right” overlay_strength=”0.3″ width=”1\/1″ tablet_width_inherit=”default” animation_type=”default” bg_image_animation=”none” border_type=”simple” column_border_width=”none” column_border_style=”solid”][vc_column_text text_direction=”default”]\n

What\u2019s Working: Early Moves to Build Resilience<\/span><\/span>\u00a0<\/span><\/h3>\n