Decarbonize Multi-Site Industrial Operations
Nidec
Sustainability Makers总结
Transitioned two manufacturing sites to 100% renewable electricity, introducing standardized environmental management to cut Scope 2 emissions and improve resource efficiency
Key resources
Context
Company sector
The implementing company manufactures industrial power conversion, automation and energy management systems through a network of production facilities across Europe, the United States, India and China.
Decarbonization challenge
Operating multiple manufacturing sites across different countries created variations in electricity markets, environmental performance and data quality. These differences made it difficult to implement a consistent approach to reducing greenhouse gas (GHG) emissions while improving environmental performance across the organization.
The company established sustainability targets through its FY2024 Sustainability Report and ESG Improvement Plan 2025–2028, including:
42% reduction in Scope 1 and Scope 2 GHG emissions by 2030
25% reduction in Scope 3 GHG emissions by 2030
50% renewable electricity
Net-zero Scope 1 and 2 emissions by 2040
Net-zero value chain emissions by 2050.
Strategic context
To support these objectives, the company developed a standardized operational model that could be replicated across manufacturing facilities. Two Italian production sites—Cinisello Balsamo and San Cipriano—were selected to pilot the approach before broader deployment.
Location of initiative
Europe, Italy (Cinisello Balsamo, San Cipriano)
Solution
The company implemented an operational decarbonization programme centred on three complementary actions:
Transitioning selected production sites to 100% renewable electricity.
Introducing real-time monitoring of energy performance using standardized environmental indicators.
Integrating energy, water and waste management into a common environmental governance framework.
The initiative primarily addresses Scope 2 emissions by replacing conventional electricity with certified renewable electricity while improving operational visibility through common performance indicators. Environmental monitoring also supports continuous improvements in water efficiency and waste management, enabling environmental performance to be measured consistently across facilities.
Rather than treating energy, water and waste as separate programmes, the company incorporated them into a single site-level management approach aligned with its ESG Improvement Plan. This provides a consistent governance model that can be progressively replicated across additional production sites while maintaining comparable environmental reporting and operational practices.
Illustrative implementation model
Step | Action | Expected Outcome |
1 | Transition priority sites to renewable electricity | Reduce Scope 2 emissions |
2 | Install standardized monitoring | Improve visibility of environmental performance |
3 | Track common energy, water and waste KPIs | Enable consistent reporting across sites |
4 | Apply lessons learned to additional facilities | Scale the approach across manufacturing operations |
Impact
Sustainability Impact
Climate
The initiative primarily addresses Scope 2 greenhouse gas (GHG) emissions by replacing conventional grid electricity with certified renewable electricity at two Italian production sites. No quantified Scope 1 or Scope 3 emission reductions attributable to this initiative have been publicly disclosed.
Between FY2023 and FY2024, the transition to 100% renewable electricity at the Cinisello Balsamo and San Cipriano facilities reduced Scope 2 emissions by more than 400 tonnes of carbon dioxide (CO₂). During the same period, the company also reported improvements in overall energy consumption and energy intensity, demonstrating improved operational efficiency while supporting its longer-term climate targets.
The initiative contributes to the company’s broader decarbonization strategy, which includes:
42% reduction in Scope 1 and Scope 2 emissions by 2030
25% reduction in Scope 3 emissions by 2030
Net-zero Scope 1 and Scope 2 emissions by 2040
Net-zero value-chain emissions by 2050.
Scope addressed
Primary: Scope 2
Secondary: Operational energy efficiency
Scope 1: No quantified impact disclosed
Scope 3: No quantified impact disclosed for this initiative
Nature
The initiative reduces pressure on natural resources through improvements in water efficiency and waste management.
Reported environmental outcomes include:
Water consumption reduced from
1,938 m³
in FY2023 to
1,530 m³
in FY2024.
Water intensity improved from
0.52 to 0.40 m³ per 1,000 working hours
98.81%
of operational waste was recycled or recovered rather than disposed of.
These actions reduce freshwater withdrawals, improve resource efficiency and support more circular material management across manufacturing operations.
The company has not publicly disclosed quantified biodiversity indicators (for example, habitat protection, ecosystem restoration or land-use impacts).
Social
The initiative strengthens environmental management practices across production sites by establishing common performance indicators and clearer operational responsibilities.
Reported social outcomes include:
Improved cross-functional collaboration.
Greater employee engagement in environmental performance management.
More consistent environmental reporting.
Increased transparency for employees and external stakeholders regarding operational sustainability performance.
No quantitative social indicators (such as employee participation, training hours, occupational health improvements or jobs created) have been publicly reported.
Business Impact
Benefits
The initiative generated several operational and strategic business benefits.
Operational benefits
Improved visibility of site-level energy performance through standardized monitoring.
Better identification of efficiency opportunities.
Consistent environmental reporting across manufacturing sites.
Standardized environmental governance supporting future deployment.
Strategic benefits
Progress toward publicly disclosed climate commitments.
Reduced exposure to electricity-related Scope 2 emissions.
Increased readiness to respond to customer, investor and regulatory expectations regarding climate disclosure and environmental performance.
A repeatable implementation model that can be deployed across additional production facilities.
Although financial savings have not been disclosed, improved energy management is expected to support ongoing operational efficiency improvements.
Costs
The company has not publicly disclosed the capital expenditure (CapEx), operating expenditure (OpEx) or payback period associated with this initiative.
The overall investment required depends on the implementation pathway selected at each site.
Typical cost components may include:
Renewable electricity procurement
Premium associated with renewable electricity contracts.
Guarantees of Origin or equivalent renewable energy certification where applicable.
On-site renewable generation
Photovoltaic system installation.
Engineering and permitting.
Grid connection.
Maintenance.
Implementation costs are expected to vary according to:
Local electricity market conditions.
Renewable electricity availability.
Solar resource.
Available roof or land area.
Electricity consumption profile.
National or regional incentive schemes.
Cost optimisation considerations
Organizations seeking to replicate the initiative should consider:
Prioritising facilities with the highest electricity consumption.
Maximising on-site renewable electricity self-consumption.
Combining renewable sourcing with energy efficiency measures.
Evaluating local incentives before implementation.
Total investment
Operating cost impact
Financial savings
Payback period
Subsidies received
Impact Beyond Sustainability (Optional)
Co-benefits
The initiative promotes a more consistent management culture across manufacturing sites by integrating environmental performance into routine operational decision-making.
Additional co-benefits include:
Common environmental key performance indicators (KPIs).
Improved governance.
Increased organizational accountability.
Better comparability of site performance.
Greater scalability for future environmental programmes.
Potential Side-effects
Potential implementation risks include:
Different levels of site readiness.
Variable availability of renewable electricity between countries.
Differences in data quality.
Local regulatory differences affecting implementation.
The company addresses these risks through:
Phased deployment.
Standardized governance.
Common environmental indicators.
Progressive implementation under the ESG Improvement Plan.
Implementation
Typical Business Profile
This initiative is most relevant for organizations that:
Operate multiple manufacturing or industrial facilities.
Have significant Scope 2 electricity emissions.
Manage sites across multiple countries or electricity markets.
Have established greenhouse gas (GHG) inventories and are seeking scalable operational decarbonization measures.
Are integrating climate objectives into broader Environmental, Social and Governance (ESG) management systems.
Although developed within industrial manufacturing, the approach can also be adapted by organizations operating multiple facilities with significant electricity consumption.
Approach
A phased implementation approach can help organizations replicate the initiative.
1. Establish governance and targets
Define corporate climate objectives.
Establish Scope 1, Scope 2 and Scope 3 reduction targets.
Assign executive and site-level accountability.
Define common environmental KPIs.
2. Select pilot facilities
Prioritize sites with high electricity consumption.
Assess renewable electricity availability.
Evaluate local regulatory conditions.
Identify opportunities for energy efficiency improvements.
3. Transition to renewable electricity
Procure certified renewable electricity where available.
Evaluate on-site renewable generation where technically and economically feasible.
Confirm electricity sourcing through recognized certification mechanisms.
4. Implement environmental monitoring
Install or improve energy metering.
Standardize reporting methodologies.
Monitor energy, water and waste performance using common KPIs.
Review performance regularly at both site and corporate levels.
5. Integrate environmental management
Rather than managing climate, water and waste independently, integrate these workstreams into a single operational management cycle supported by common governance and reporting.
6. Scale the model
Evaluate pilot results.
Refine governance based on lessons learned.
Expand implementation to additional facilities.
Maintain standardized reporting to enable comparison across sites.
Stakeholders Involved
The following functions are coordinated through a cross-office ESG governance structure, which reviews common key performance indicators (KPIs) on a quarterly basis.
Project leads
Global Health, Safety, Environment (HSE) and ESG leadership
Plant management teams
Company functions
Operations
Procurement
Finance
Facility management
Environmental reporting
Site leadership
External providers
Renewable electricity suppliers
Energy monitoring providers
Metering providers
Waste management partners
Other stakeholders
Employees
Local operational teams
External assurance providers
Specialist implementation partners where required.
Key Parameters to Consider
Parameter | Consideration |
Initiative maturity | Established operational practice |
Implementation timeline | Initial results achieved within FY2024; wider rollout planned through the ESG Improvement Plan 2025–2028 |
Technical requirements | Reliable metering, renewable electricity access, standardized KPIs, local ownership |
Geographic considerations | Local electricity markets and regulations influence implementation |
Lifetime | Depends on renewable electricity contracts and monitoring infrastructure |
Subsidies | No public information available |
Additional considerations
Organizations should assess:
Electricity market maturity.
Renewable electricity availability.
Site energy profile.
Existing environmental management capability.
Data quality and reporting maturity.
Internal governance capacity.
Implementation and Operations Tips
Common implementation challenges
Differences in renewable electricity availability between locations.
Inconsistent environmental data quality.
Different levels of site maturity.
Maintaining operational continuity during implementation.
Aligning local priorities with corporate sustainability objectives.
Lessons learned
The pilot demonstrated the value of starting with a limited number of sites before expanding the programme.
Key success factors include:
Standardized environmental KPIs.
Clear ownership at both corporate and site levels.
Regular performance reviews.
Integration of energy, water and waste management.
Progressive rollout based on operational experience rather than simultaneous deployment across all facilities.
Organizations should prioritize governance and consistent measurement before expanding implementation.
Going further
Source List
Sustainability Report FY2024:
Sustainability webpage:
ESG Improvement Plan 2025–2028:
https://www.nidec-conversion.com/nidec-conversion-esg-improvement-plan/
Sustainability Report announcement:
https://www.nidec-conversion.com/nidec-conversion-publishes-first-sustainability-report/