Circular, Digital, Diversified: Heralding a New Era of Sustainable Supply Chains

“ESG will no longer be a niche focus but will become integrated into every business model. Companies across industries are incorporating ESG factors into their core strategies, from manufacturing to service sectors. The concept of a circular economy, where products and materials are reused and recycled, will gain more traction. Industries will move away from linear models of ‘Take, Make, Dispose’ toward regenerative systems. The push for carbon-neutral operations will become a major driver of innovation in clean energy, carbon capture, and energy efficiency technologies,” highlights Anil Tomar, COO, Aliaxis India Region, Member Board of Directors at Ashirvad, during this exclusive interview…

How does Aliaxis approach sustainability? What are your targets for Net Zero?

Aliaxis is a leading technology company where over 75% of our products and systems are designed to transport, store, or treat water. A significant number of our applications are also used in deploying clean energy. Inherently, the work we do positively impacts and makes a difference in the lives of many people. At Aliaxis, we are committed to making our operations more sustainable. Climate change mitigation and circular economy are a priority for us.

Our efforts include increasing the use of renewable energy sources, improving energy efficiency, exploring alternatives to fossil fuels, managing our resources and emissions, and reducing waste generation. Simultaneously, we are exploring every opportunity to increase the percentage of recycled content in our products. We aim to reduce the carbon footprint of our manufacturing operations by using more efficient processes and increasing the quantity of recycled content in our products.

Amongst our key sustainability targets, develop innovative and easy-toinstall pipe and fittings’ solution whilst increasing the recycled content in our products. In India, our researchers have successfully optimized the amount of material needed which means we are less carbon intensive, with no loss to quality or performance. We have different strategies for the different countries we are operating in. For instance, the Australian Government offers incentives to suppliers if they are using recycled materials.

Our Bengaluru Research & Technology Center has also focused on electrofusion to join pipes using specialist fittings that have built-in electrical heating elements to weld the pipes together without the need for separate fittings. They benefit from our established expertise in Germany where we lead the market, notably thanks to our Frialen® solutions. 

In the Pacific region, we’re making the most progress on incorporating recycled content as we acquired Comspec, a New Zealand expert in plastic recycling. Comspec processes polypropylene and high-density polyethylene into plastic pellets, that we reuse as raw material, each year providing 2,000 tonnes of fully recycled resin. This acquisition translates into a significant reduction in our CO2 emissions. As an example, our Drainflo® range contains between 11 and 47% recycled content, sourced from shampoo, conditioner, and cleaning product bottles, all processed by Comspec.

In Australia, our StormFLO® drainage system for use in agriculture and civil infrastructure projects, not only incorporates recycled material but is also fully recyclable. As well, our Draincoil® sub-surface drainage pipe is made with 100% recycled material and is also fully recyclable. This range of pipes and fittings helps tackle waterlogging after heavy rainfall, preventing salinity issues. They can be found in diverse settings: buildings, recreation spaces like sports fields, racetracks, and golf courses, and agriculture.

We are working to make our factories and offices more sustainable, with improvements across the board in carbon reduction, energy efficiency, water use and waste. A key feature of our operational excellence programme is the drive to make our plants not only more productive but also more efficient. For example, as well as meeting our renewable electricity goals during the year, we also achieved our energy efficiency targets, reducing energy use by 3%.

We are now carrying out a double materiality assessment, which will allow us to prepare for the European Union’s new non-financial reporting requirements. The Corporate Sustainability Reporting Directive demands a higher level of transparency in ESG reporting and our team is working to ensure that we fully comply with the new legislation. We have launched a new Code of Ethics, which builds on our earlier code of conduct, and are rolling out training on this across the business. The code is about ensuring that we act with fairness and integrity every day and in all our interactions with each other, with our stakeholders and in the context of a wider society.

In India, some 71% of our operations are powered by renewable electricity already, up from 39% in 2022. We’ve made great progress since opening a dedicated solar farm in Bikaner, Rajasthan, which started producing power in early 2023. In addition, our new Telangana plant will be powered by solar panels.

Would you like to give us insights into India specific sustainability strategies?

India faces huge challenges in increasing access to clean water and managing its existing water infrastructure, but it is also a nation packed with superb innovators in this field and we are continuing to support and reward them through The/ Nudge Ashirvad Water Challenge. The challenge, run in partnership with the Office of the Principal Scientific Adviser to the Indian Government, backs startups and innovators using AI and robots to tackle the problem of water wastage with the overall aim of improving water security for 19 million households.

This year’s grand winners were SmartTerraTM with a platform that uses AI to detect leaks in water networks. Its technology has been implemented in five states, contributing to conservation of over 5 million litres of water each month. The runners up, Solinas Integrity, have deployed robots that identified 340 contamination points, resulting in a daily water saving of 600,000 litres.

Initially, over 140 applicants came forward with their innovations. These were shortlisted to seven finalists who spent six months incubating their ideas working closely with our own experts. The challenge has been so successful that we are now deepening our relationship with The Nudge Institute, working together to bring water solutions to people in India’s cities and rural areas. Together, we are convening the Water Security Council of India, with a mission to identify and tackle India’s most pressing water challenges over the next 10 to 15 years.

The Council will bring together public and private sector organizations and leading thinkers, entrepreneurs, and policymakers to commission research into future challenges. It will be chaired on a rolling basis by domain experts. We are fully committed to playing an active role in its deliberations, bringing thought leadership and research ideas to the table with the aim of building a strong ecosystem of like-minded experts who can really make a difference to society.

We have launched India’s first-ever antimicrobial UPVC pipes to address water supply contamination concerns. Incorporating silver ion technology, these pipes are safeguarded against a wide range of contaminants, providing robust protection against bacteria, viruses, fungi, and algae, while ensuring durability and longevity. The technology has been verified by third-party labs and has been proven to have 90% efficacy against bacteria, viruses and fungi, and 40% protection against algae. By preventing the build-up of biofilm, this innovative solution is suitable for carrying clean and hygienic drinking water in buildings.

What actions do you take in India and overseas when it comes to transportation decarbonization?

In India, we have been intensely focused on network and load optimization for the past two years. Over the last year, we relocated around 20 production lines after recognizing that it was more efficient to move the production lines rather than transport trucks. Moving resin or raw materials is more ecofriendly than shipping finished goods.

Additionally, we prioritize sourcing raw materials from nearby suppliers to minimize carbon emissions. To further enhance efficiency, we are establishing a facility in Chennai to significantly reduce shipping times for exports.

How do you ensure sustainability as a vendor?

Sustainability is at the heart of our design process, where we conduct Cradle to Grave analysis to ensure long term environmental responsibility. As a global leader in fluid management solutions, we are rapidly investing in technologies like Aquarius Spectrum, Opti (both fully owned and integrated into Aliaxis’ Growth function), and Kando. These innovations are enhancing the resilience of water infrastructure by utilizing advanced leak detection, smart stormwater management, and tracking pollution in wastewater and mining water networks to gather vital public health data. In agriculture, CropX is optimizing irrigation systems to enhance fertilization and increase crop yields.

What are your strategies to make supply chains more resilient & sustainable?

In the current era, crucial for any business is resilience and sustainability in the supply chain which will navigate uncertainties and meet ESG goals. Few strategies include Collaboration and partnering with suppliers on ESG; investing in the capabilities of suppliers—both in terms of technology and sustainability—ensure mutual growth and help build more resilient supply chain networks; Collaborating across industries for better resource sharing and risk mitigation strategies. Sharing knowledge and resources can help create more robust and adaptable supply chains. Besides, there are few other key strategies that help in making supply chains more resilient & sustainable…

• Sustainable Procurement: Prioritizing suppliers who follow sustainable practices (e.g., using renewable energy, ethical labour practices, ensuring environmental and labour law compliances) ensures that supply chains are both resilient and ethical. Building lasting partnerships with suppliers to create mutual value, rather than solely focusing on immediate costs, fosters shared responsibility for achieving ESG goals.
• Sustainable by Design and Powering Circularity: Designing products with less material usage, recyclability, easy disassembly, and potential for reuse helps reduce dependence on raw materials and minimizes environmental impacts throughout the product lifecycle. By embracing circular economy principles such as reusing materials, recycling, and reducing waste, we can make supply chains more sustainable.
• Adoption of Technology: Automating manufacturing, logistics, and warehousing can reduce the impact of labour shortages and drive efficiency. Implementing IoT devices and AI for real-time tracking of goods, inventory levels, and supplier health can enhance visibility. Advanced analytics and AI can help predict disruptions, optimize routes, and forecast demand more accurately.
• Diversified Supply Chain: By diversifying suppliers, businesses can reduce the risk of disruption from geopolitical issues, natural disasters, or other unexpected events. Sourcing from multiple regions helps mitigate the risks associated with regional disruptions, such as pandemics, extreme weather, or political instability.
• Mitigating Climate Risk: Conducting regular climate risk assessments within the supply chain to identify vulnerable areas and implement proactive measures, such as strengthening infrastructure to withstand extreme weather events.
• Moving to green and energy efficient logistics (like electric vehicles, CNG vehicle) optimizing routes, and reducing packaging waste, can lower the carbon footprint of supply chains.

How can technology support sustainable development?

Technology plays a crucial role in supporting sustainable development of business by enhancing efficiency, reducing waste, and enabling innovative solutions to environmental, social, and economic challenges. Here are several ways technology contributes to sustainable development:

RENEWABLE ENERGY TECHNOLOGIES

• Solar, wind, and geothermal energy: Technological advancements in renewable energy sources are driving the transition away from fossil fuels, helping reduce carbon emissions and mitigate climate change.
• Energy storage: Improved battery technology enables better storage solutions for renewable energy, making it more reliable and scalable.

POWER CIRCULARITY

• Waste-to-resource technologies: Advanced recycling, composting, and upcycling processes are powered by technology to transform waste into new products, reducing the demand for raw materials and minimizing landfill use.
• Product lifecycle tracking: Technologies like blockchain and IoT can track the lifecycle of products, ensuring they are reused or recycled properly and reducing waste.

IMPROVING ENERGY EFFICIENCY

• Energy-efficient production through Automation, AI, and IoT can optimize production processes to reduce energy consumption and improve resource efficiency.

TECHNOLOGY IN WATER STEWARDSHIP

Technology can play vital role in driving water stewardship hierarchy by eliminating water dependency to reduce/ reuse/recycle to reduce the water.

• Smart water meters: IoT-based sensors can monitor water usage, detect leaks, and optimize irrigation, leading to significant water savings
• Purification technologies: New desalination processes and water purification systems are helping provide clean water in regions with limited freshwater sources, contributing to sustainable water use.

ENVIRONMENTAL MONITORING

• Remote sensing and satellite technology: These technologies enable the monitoring of ecosystems, deforestation, water quality, and climate patterns in real-time, helping track and manage environmental impacts.
• AI for environmental data analysis: AI and machine learning can process large datasets to identify patterns and predict future environmental changes, supporting better decision-making in sustainability efforts.

The sustainability landscape is evolving rapidly, and several key trends and shifts are expected to define its future trajectory.

According to you, what challenges are companies facing in shifting gears to more sustainable alternatives?

Businesses might encounter several challenges while moving towards more sustainable alternatives:

1. High investment & Long-term ROI: Sustainability solutions often require significant upfront investment in new technologies, infrastructure, or sourcing ecofriendly materials, which can be a barrier, especially for smaller companies. It is difficult for the businesses to commit without a clear understanding of the financial benefits over time.
2. Limitations in supply chain: Companies find difficulties in sourcing sustainable materials or solutions. Sometimes too complex and transitioning to alternatives may disrupt existing system.
3. Cost effectiveness to be competitive: Consumers often expect sustainable products but may not be willing to pay higher prices for them or cannot afford them. To be cost-effective can be difficult.
4. Resistance to Change: Shifting to more sustainable practices can encounter internal resistance from employees or stakeholders who may be sceptical about the longterm benefits or reluctant to change established processes.
5. Technology and Innovation Gaps: While there is innovation in sustainable practices, the technology and processes that support these shifts are still developing. Companies may face difficulties in finding viable, scalable, and efficient technologies for sustainable production.
6. Challenges in Reporting: Measuring and reporting sustainability efforts (e.g., carbon footprints, water usage) is complex and requires robust systems.

Despite these challenges, many companies recognize the long-term benefits of sustainability, including cost savings, improved brand reputation, and regulatory compliance, which can make the transition worth the effort.

How do you foresee the sustainability landscape moving from here on?

ESG will no longer be a niche focus but will become integrated into every business model. Companies across industries are incorporating ESG factors into their core strategies, from manufacturing to service sectors.

• Circular economy adoption: The concept of a circular economy, where products and materials are reused and recycled, will gain more traction. Industries will move away from linear models of ‘Take, Make, Dispose’ toward regenerative systems.
• Decarbonization and Climate Action as Central Focus: More countries and businesses will commit to net-zero emissions by 2050 (or sooner). The push for carbon-neutral operations will become a major driver of innovation in clean energy, carbon capture, and energy efficiency technologies. Significant investments in renewable energy, energy storage, and electrification of industries (e.g., electric vehicles, hydrogen) will continue to reduce dependence on fossil fuels. Technological advancements will play a critical role in reducing the costs of clean technologies.
• Technological Advancements and Digital Transformation: The use of AI, machine learning, and big data will be integral in addressing sustainability challenges, enabling smarter resource allocation, real-time environmental monitoring, and predictive insights into climate-related risks. Blockchain will become more widely adopted for ensuring transparency in supply chains, tracking carbon footprints, and validating claims of sustainability, providing a reliable and secure way to trace environmental impacts and certifications.
• Regulation and Policy Advancements: Compliance with ESG standards will be crucial for businesses progress and moreover to maintain licenses to operate. Though India doesn’t have a national policy on Carbon Tax or direct pricing mechanisms, like EUs however, policy frameworks are being explored.
• Protecting Nature and Biodiversity - Natural Capital: It is the foundation for many businesses. Recognizing the importance of preserving ecosystems, biodiversity, and the essential services provided by nature is crucial. Greater efforts are needed to integrate natural capital into decision-making processes and financial systems.
• Increased consumer and corporate Demand for Sustainability: There’s a growing demand for products that are environmentally and socially responsible. Companies that can offer sustainably produced goods will see increased market demand and consumer loyalty.