The global urgency for sustainability is reshaping industries, and the integration of Environmental, Social, and Governance (ESG) principles is now essential. From developing eco-conscious products to ensuring responsible supply chains, companies must address every facet of their operations to meet stakeholder expectations and global sustainability goals. Here, Alexandre Eiji Amano, Sustainability Director for Europe at leading motor and drive manufacturer WEG, explains how industry can achieve a balance between innovation, sustainability and resilience, and how WEG aligns with its own sustainability goals.
A critical starting point for industries aspiring to enhance their ESG profile is evaluating their product offerings. Sustainable products, when designed with responsible practices in mind, offer a dual advantage: they support environmental preservation throughout their lifecycle while also creating long-term value for businesses by delivering cost-efficient, forward-thinking solutions to customers.
In 2024, 73 per cent of WEG’s revenue stemmed from sustainable products — highlighting the company’s strategic focus on both innovation and global sustainability goals. But what defines a sustainable product? WEG’s answer to this question covers more than just energy efficiency. It involves integrating sustainability principles into product design, emphasising recyclability, durability and minimal resource use over the entire lifecycle.
WEG offers products such as the W23 Sync+ IE5 motor, which significantly reduces energy consumption and CO2 emissions. These motors achieve efficiencies exceeding 96 per cent and 30 per cent energy savings compared to conventional IE3 motors.
Circular operations
While offering sustainable products is a valuable part of any ESG strategy, operational sustainability is equally critical. Embracing circular economy principles can help companies make their operations more sustainable and resilient.
Circularity is one of WEG’s key focuses, with the company reusing production waste like steel scraps in manufacturing. This approach minimises reliance on virgin materials and reduces waste. Additionally, WEG’s Replacement Plan Program has recycled materials from countless motors since its inception over 20 years ago, promoting energy-efficient solutions in industrial applications. This allows WEG to improve its eco-efficiency and enhance its resilience — a valuable lesson for industries worldwide.
What’s more, WEG’s focus on carbon neutrality in operations demonstrates how industries can take proactive steps toward reducing greenhouse gas (GHG) emissions. Efforts in the four fronts of the energy transmission — operational efficiency, energy efficiency, renewables and electric mobility — have contributed to a 28 per cent absolute GHG emissions reduction as of 2024. Transitioning to renewable energy sources and optimising industrial processes are practical measures that all companies can adopt to align with global decarbonisation goals.
Responsible supply chains
A strong ESG strategy requires a holistic approach that includes every part of the value chain. For most industries, this means addressing sustainability within their supply chains. Ethical sourcing, supplier engagement, and risk mitigation are critical to building an end-to-end ESG-compliant operation.
WEG’s Sustainable Suppliers Program ensures that ESG is at the forefront of its supply chain. With over 14,000 suppliers globally, WEG systematically assesses and classifies them based on ESG risk levels — low, medium, and high — focusing on those critical to its operations. Other key aspects of the programme include on-site verification of ESG practices for strategic suppliers and the implementation of comprehensive ESG training programmes for suppliers and buyers, with targets for 100 per cent engagement by high-, medium-, and low-risk suppliers.
The programme’s impact in 2024 included a new sustainability assessment model and direct engagement with suppliers through workshops on environmental, social and governance themes. By prioritising suppliers committed to ethical labour practices and environmental stewardship, and supporting suppliers to improve their ESG practices, companies can create strong partnerships that extend their ESG impact beyond direct operations.
Engaging employees and communities
Sustainability is not just an environmental endeavour. The social aspect of ESG is essential for long-term success. A motivated, diverse workforce and strong community relationships can drive innovation and ensure a company’s licence to operate in local markets.
Internally, WEG invests in employee well-being, safety and diversity, fostering an inclusive culture that empowers individuals at all levels and offers opportunities for training and development, averaging 113 hours of training per employee annually. Externally, the company supports community initiatives in education, health, culture and social inclusion, reaching over 607,000 people in 2024.
Industries looking to improve their ESG credentials should consider investments in their people and surrounding communities. These efforts not only fulfil corporate social responsibilities but also create shared value, strengthening bonds with stakeholders.
Transparency and innovation: foundations for ESG excellence
The final pillar of WEG’s ESG strategy is transparency. Companies must openly communicate their goals, progress, and challenges to build trust with stakeholders. WEG’s detailed ESG reporting, along with its Integrated Annual Report, provides comprehensive information on the company’s strategy, vision for the future and progress so far, giving a holistic overview to customers and suppliers.
Equally important is innovation. ESG goals are dynamic, requiring constant adaptation. WEG is committed to open innovation and invests in research and development. In 2024 it engaged with startups and prospected 123 universities globally as part of its goal to position itself as the epicentre of a global innovation ecosystem.
Achieving sustainability in industry requires a holistic ESG approach that transforms products, operations, business practices and supply chains. WEG’s commitment to sustainable product innovation and a responsible supply chain illustrates how companies can drive both meaningful change and long-term value. By focusing on measurable impact, transparent monitoring and communications, and continuous improvement, companies can contribute to environmental conservation, ethical governance and social development. As WEG’s progress shows, sustainability is not just a target – it represents an ongoing commitment to bettering both business and the world.
To find out more about WEG’s leading sustainable motor and drive solutions, visit the website.
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