Continued on next page 55 COMMUNICATION ISSUE Better Lubrication Practices Improves ESG Reporting While Reducing Costs Sustainability, greenhouse gases (GHG), emissions, and carbon neutral are all terms that are in the news these days, but are they really relevant to your business? We all want to be environmentally friendly and socially responsible, as long as it doesn’t negatively impact our company financially. Surprising to many, upcoming changes from the EPA could very well provide companies a big competitive advantage since sustainability improvements nearly always provide a cost savings. In 2019, 90% of S&P 500 listed companies produced an ESG (Environmental, Social, Governmental) report indicating improvements to their sustainability programs. The ESG reporting mechanism is not an exact formula, but rather a framework for disclosure of sustainable quantified data. There are three GHG emission scopes specified inside the ESG report: TROY TURNBULL President Industrial Innovations ARTICLE TAKEAWAYS: • US sustainability initiatives are impacting manufacturers – and you too! • What is an Environmental, Social, Governmental (ESG) report and why the EPA is requiring it • How proper use of lubricants can reduce emissions of excess gases • Reducing waste will reduce emissions and hauling costs • Scope 1– Emissions that are direct from the owned or controlled sources (those you emit because of your processes) • Scope 2 – Emissions that are indirect from the generation of purchased energy (your power consumption) • Scope 3 – Emissions that are all indirect (and not included in Scope 2) and occur in the value chain of the reporting company, including upstream and downstream emissions (your supplier’s emissions) and account for 65% to 95% of the reporting company’s emissions If you are supplying parts to a company that is producing an ESG report, consider yourself to be in the 65-95% majority, which your customer must improve. There is even an ESG Risk Rating used by these large companies to access their supply chain and help regulate sourcing policies. If you have set a baseline, have an improvement strategy and track your emissions, then you very well may have a preferred supplier status with your customer. So, what can you do to improve ESG compliance? LUBRICANT RATIO AND PROPER USAGE HELP ELIMINATE WASTE The proper use of lubrication can affect each of the three scopes and can show quick and effective improvements to your ESG reporting. The emission of excess gases (Scope 1) can be a direct result of using the incorrect lubricant, an improper dilution ratio, excessively applied volume or inaccurate lubricant placement, which ends up burning off into the atmosphere or being hauled away as waste. If you can’t remember the last time you changed lubricants, consider meeting with your lubricant supplier to help determine the best choice for each part you manufacture. One size does not fit all and the optimal lubricant and application can vary based upon metal make up. If using a graphite mixture or oil-based product, look into a synthetic or semi-synthetic lubricant for easier disposal. This search may include establishing
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