Top 10: Net Zero Factories

As manufacturers embrace social responsibility and respond to mounting regulatory and ethical demands, net zero factories are emerging

A net zero factory is defined by its commitment to site-level decarbonisation, targeting reductions in Scope 1 and 2 emissions across diverse industries. Its goal is to achieve equilibrium—ensuring that the greenhouse gases released are balanced by those removed from the atmosphere, thereby neutralising the facility’s climate impact.

Given that manufacturing accounts for between 12% and 25% of global greenhouse gas emissions, depending on the industry, the proliferation of net zero factories is essential for a sustainable future.

It is crucial to recognise that the net zero factory represents an ongoing journey rather than a fixed destination. As sustainable technologies advance and global circumstances evolve, the net zero factory must adapt, continually refining its processes to remain at the forefront of sustainability.

10. LG Innotek's Gumi Plant, South Korea

• Revenue: US$11.57bn

• Employees: 75,000

• CEO: William Cho

• Founded: 1958

LG Innotek, a leading electronics manufacturer under the LG Group, is accelerating the transition to net zero manufacturing at its Gumi facility in South Korea. The plant now runs entirely on solar energy, thanks to the adoption of advanced energy-saving technologies and a comprehensive switch to renewables. Complementing this, a waste-to-energy system further minimises the plant’s environmental footprint.

This transformation is central to LG’s wider sustainability agenda, which includes a pledge to halve greenhouse gas emissions by 2030 and to boost energy efficiency across its global sites. The Gumi plant’s achievements are further underscored by its Zero Waste to Landfill (ZWTL) Platinum certification, awarded by UL Solutions in 2021. This recognition marked the Gumi site as the first in the materials and components sector to reach platinum status—a distinction reserved for facilities that recycle 100% of their scrap materials.

By attaining ZWTL Platinum, LG Innotek demonstrates a strong commitment to resource circulation and the principles of a circular economy. The Gumi plant stands as a flagship for responsible resource management and sustainable energy use, reinforcing LG’s role as an industry leader in aligning large-scale manufacturing with global sustainability objectives.

9. Samsung Electronics Gyeonggi Plant, South Korea

• Revenue: US$52bn

• Employees: 320,000

• CEO: Young Hyun Jun

• Founded: 1938

Samsung’s Gyeonggi facility in South Korea pioneers net zero manufacturing, advancing sustainability through a strategic blend of renewable energy, energy-efficient operations and a robust waste reduction agenda. The site leverages extensive solar panel installations and energy recovery systems to counterbalance carbon emissions, while advanced automation and digitalisation have driven significant cuts in overall energy use.

As part of Samsung’s Device eXperience (DX) division, the Gyeonggi plant contributed to the division’s 2023 milestone—achieving 93.4% renewable energy conversion across its major global manufacturing locations. This progress supports Samsung’s pledge to reach net zero Scope 1 and 2 emissions for the DX division by 2030.

Beyond energy, Samsung is actively improving air quality around its campuses. The company has planted nearly 1.73 million shrubs and trees across sites in Giheung, Hwaseong, Pyeongtaek, Cheonan and Onyang. These green spaces are projected to absorb about 61.8 tonnes of fine dust each year, offsetting emissions comparable to those from 36,000 diesel vehicles annually.

Samsung’s Gyeonggi plant exemplifies the company’s commitment to environmental responsibility, playing a vital role in its broader ambition to achieve carbon neutrality by 2050.

8. Future Biogas and Astrazeneca's Moor Bioenergy Plant

• Revenue: US$54.07bn

• Employees: 89,900

• CEO: Pascal Soriot

• Founded: 1999 (through the merger of Sweden's Astra AB and Britain's Zeneca Group)

AstraZeneca, in partnership with Future Biogas, has unveiled the UK’s first unsubsidised biomethane plant dedicated to powering the life sciences sector. Situated in Gonerby Moor, Lincolnshire, the Moor Bioenergy facility will supply clean heat to all of AstraZeneca’s UK-based R&D and manufacturing sites, marking a significant step towards sustainable pharmaceutical production.

Operating around the clock, the plant will deliver 100 GWh of renewable energy annually—enough to meet the heat demand of more than 8,000 homes and cover almost 20% of AstraZeneca’s global gas consumption. This initiative is expected to cut approximately 18,000 tonnes of CO₂e emissions each year, accelerating AstraZeneca’s progress towards its Ambition Zero Carbon targets.

The project is underpinned by a 15-year commitment from AstraZeneca and is designed to support the company’s aim of reducing Scope 1 and 2 emissions by 98% by 2026, compared to a 2015 baseline. By 2021, AstraZeneca had already achieved a 59% reduction in these emissions and now sources 100% of its imported electricity from renewables.

Feedstock for the plant is sourced locally, with five-year contracts supporting farmers and encouraging sustainable agricultural practices. All crops are certified by the International Sustainability and Carbon Certification (ISCC), ensuring traceability and adherence to strict environmental standards. The facility also incorporates advanced carbon capture technology, enabling either reuse of CO2 in industry or permanent geological sequestration.

Beyond clean heat, AstraZeneca’s decarbonisation strategy includes reducing overall energy use, transitioning to an electric vehicle fleet, eliminating F-Gas emissions, and developing more sustainable inhalers with low-global warming potential propellants.

 7. LONGi Jiaxing Factory, China

• Revenue: US$8.2bn

• Employees: 75,066

• CEO: Li Zhenguo

• Founded: 2000

In December 2023, LONGi’s Jiaxing production facility in China was named a ‘Global Lighthouse Factory’ by the World Economic Forum, becoming the first solar module factory worldwide to achieve this distinction. Out of 153 factories globally recognised for digital transformation and sustainable manufacturing, LONGi’s site stands out as the sole representative from the photovoltaic sector.

The Jiaxing plant leverages AI, automation, and digital technologies to drive intelligent manufacturing, resulting in a 20% reduction in energy consumption per unit, a 28% cut in manufacturing costs and an 84% decrease in delivery cycles within a single year. These advances are part of LONGi’s broader strategy to lead in sustainable innovation, producing mono silicon wafers for semiconductors and hydrogen equipment, and supporting the global energy transition.

Founded in 2000, LONGi has grown into the world’s largest solar PV manufacturer, committed to advancing clean energy solutions worldwide. By 2022, the company had cut operational emissions per revenue unit by nearly 40% and sourced 47% of its electricity from renewables, avoiding 2.5 million tonnes of CO₂ emissions. Guided by its “Energy Equity” philosophy—ensuring clean energy access for all—LONGi continues to scale solar module production globally, supporting regions with emerging renewable infrastructure and reinforcing its leadership in sustainable manufacturing.

6. Jaguar Land Rover Halewood Plant, UK

• Revenue: US$35.9bn

• Employees: 38,379 

• CEO: Adrian Mardell 

• Founded: 2008

Jaguar Land Rover’s Halewood plant in Merseyside, UK, is leading the way in sustainable automotive manufacturing by producing electric, hybrid, and combustion engine vehicles.

The site is installing 18,000 solar panels, expected to generate 8,600 MWh annually—about 10% of its energy needs—supporting JLR’s goal of net zero across its supply chain, products, and operations by 2039.

JLR aims to cut operational greenhouse gas emissions by 46% by 2030 and offer all-electric models across its luxury brands by then.

Halewood has also improved efficiency and reduced emissions through advanced robotics, laser alignment, cloud-based systems, and a hydrogen boiler reducing 565 tonnes of CO₂ yearly.

5. Ford's EV Assembly plant, Cologne, Germany

• Revenue: US$187.44bn
• Employees: 150,000
• CEO: Mary Barra
• Founded: 1908

Ford has unveiled its first carbon-neutral vehicle assembly plant, the Cologne Electric Vehicle Centre in Germany, marking a pivotal step in its "Road to Better" sustainability strategy.

This state-of-the-art facility, established through a US$2bn investment, is Ford’s inaugural global assembly plant to achieve carbon neutrality and is set to produce a new generation of electric passenger vehicles for European customers. The Cologne site features advanced production lines, battery assembly and automation, with an annual capacity exceeding 250,000 electric vehicles.

The plant operates on 100% certified renewable electricity and biomethane, with carbon-neutral heat supplied via a dedicated steam network, underscoring Ford’s commitment to efficient and environmentally responsible manufacturing.

Ford’s broader sustainability vision targets carbon neutrality across its vehicles, operations, and supply chain by 2050, with a specific goal to achieve this milestone in Europe by 2035. The company is accelerating its electrification efforts, aiming to offer only all-electric vehicles in Europe from 2035 onward. Beyond electrification, Ford is advancing several key initiatives: it is working towards zero waste to landfill across all European plants, with plans to extend this globally; it has committed to sourcing 100% carbon-free electricity for its global operations by 2035, with all European manufacturing already powered by renewable energy; and it aims to reduce absolute freshwater use by 15% by 2025.

4. Unilever Oleochemical Indonesia

• Revenue: US$64.8bn

• Employees: 120,040

• CEO: Fernando Fernandez

• Founded: 1980

As a key subsidiary of Unilever, Unilever Oleochemical Indonesia (UOI) sits at the heart of the company’s global palm oil sustainability strategy. Located in North Sumatra, UOI represents Unilever’s commitment to responsible sourcing and manufacturing, operating the region’s pioneering oleochemical facility that enables direct engagement with local mills and independent smallholders. 

UOI ensures that all crude palm oil (CPO) and crude palm kernel oil (CPKO) are fully traceable, certified, and compliant with Unilever’s NDPE (No Deforestation, No Peat, No Exploitation) policy, sourcing exclusively from trusted, sustainable suppliers. By mapping tens of thousands of smallholder farmers and supporting them with sustainability programmes, UOI helps increase farmer incomes and incentivises the adoption of environmentally responsible practices.

With a focus on decarbonising operations, Unilever has invested more than €360m (US$418.4m) in Indonesia to build a world-class oleochemicals facility that has already halved its carbon footprint. The company plans to invest an additional €150m (US$1743.m) over the next three years to further decarbonise manufacturing, including transitioning from natural gas to biomethane produced from palm oil mill effluent sourced from deforestation-free mills. Other initiatives include increasing renewable energy use, electrifying thermal processes, and phasing out high-impact refrigeration systems.

Recognition of Unilever Indonesia’s sustainability leadership includes certifications from the Green Building Council Indonesia, reflecting achievements such as an 8% share of renewable energy in electricity use and a 32% reduction in electricity consumption at flagship sites. 

"This achievement exemplifies our commitment to sustainability," says Willy Saelan, Director of Human Resources Unilever Indonesia.

"We will continue to support Unilever's global target of achieving Net Zero Emission by 2039 through various initiatives. In our pursuit of leading sustainability practices, we consistently undertake necessary actions, including obtaining the Net Zero Ready certification from the Green Building Council."

3. Schneider Electric Le Vaudreuil Factory, France

• Revenue: US$41.04bn

• Employees: 168,000

• CEO: Olivier Blum

• Founded: 1836

Schneider Electric’s Le Vaudreuil facility in Normandy, France, stands as a flagship example of sustainable manufacturing and digital transformation. As one of the company’s lighthouse sites, Le Vaudreuil is central to Schneider Electric’s goal of achieving net zero carbon emissions by 2025 and serves as a benchmark for the wider industry.

The factory has deployed Industrial Internet of Things (IIoT) sensors integrated with advanced digital platforms, enabling real-time monitoring and optimisation of energy use. These innovations have delivered a 25% reduction in energy consumption, a 17% decrease in material waste, and a 25% cut in CO₂ emissions. The site also features a zero-reject water recycling station powered by AI-driven cloud analytics, resulting in a 64% reduction in water use.

Le Vaudreuil’s achievements have earned it recognition as a Sustainability Lighthouse by the World Economic Forum, highlighting its role in pioneering green manufacturing practices and setting new standards for operational efficiency and environmental stewardship. The facility’s adoption of digital twin technology, predictive maintenance, and the EcoStruxure platform further enhances efficiency and minimises downtime, reinforcing its status as a model for Industry 4.0.

These advancements contribute to Schneider Electric’s broader sustainability ambitions, including sourcing 90% of its electricity from renewables by 2025 and reaching net zero CO₂ emissions across its entire value chain by 2050. By integrating digital technologies and circular economy principles—such as closed-loop recycling for materials like silver—Le Vaudreuil not only drives Schneider Electric’s sustainability agenda but also provides a scalable blueprint for net zero manufacturing across the sector.

2. Siemens Electronics Works Amberg, Germany

• Revenue: US$83.49bn
• Employees: 312,000
• CEO: Roland Busch
• Founded: 1847

The World Economic Forum (WEF) has named Siemens Electronics Works Amberg (EWA) in Germany a Sustainability Lighthouse, recognising it as one of only 13 global production sites setting new benchmarks for sustainable manufacturing. 

Since 2015, Amberg has cut greenhouse gas emissions by nearly 50% while increasing output by 70%, thanks to advanced digitalisation, energy analytics and automation. The factory aims to achieve carbon-neutral operations by 2026—four years ahead of Siemens’ corporate target—by optimising processes with digital twin technology, sourcing renewable energy, and piloting innovations like digital product passports and blockchain-based CO₂ tracking.

EWA’s approach demonstrates that productivity and sustainability can go hand in hand, serving as a model for Siemens’ wider network of factories working towards net zero.

The site also acts as an incubator for solutions that help decarbonise supply chains across industries, multiplying its positive impact beyond its own operations.

1. Schneider Electric Lexington Plant, US

• Revenue: US$41.04bn

• Employees: 168,000

• CEO: Olivier Blum

• Founded: 1836

Schneider Electric’s Lexington Smart Factory in Kentucky stands as a prime example of how legacy manufacturing can be transformed for a net zero future. This 62-year-old facility has evolved into one of the world’s most advanced smart factories, demonstrating the company’s commitment to carbon neutrality and sustainable innovation.

Through a comprehensive digital overhaul, the Lexington plant has integrated Schneider Electric’s EcoStruxure platform, leveraging Industrial IoT connectivity, power meters, and predictive analytics. These technologies have enabled the factory to achieve a 26% reduction in energy consumption, a 30% decrease in net CO₂ emissions and a 20% drop in water usage. The site’s achievements have been recognised globally, earning it the prestigious Sustainability Lighthouse designation from the World Economic Forum—one of only a handful of factories worldwide to receive this honor.

Beyond energy and resource management, the Lexington facility utilises augmented reality tools to boost operational insight, resulting in a 20% reduction in mean time to repair for critical equipment. The adoption of digital solutions has also led to a 6% decrease in unplanned downtime and the near elimination of paper-based processes.

As a model for retrofitting existing sites, the Lexington Smart Factory underscores Schneider Electric’s leadership in digital transformation and sustainability, illustrating how Fourth Industrial Revolution technologies can drive both environmental and operational gains in manufacturing.

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