By Terrence Lim, Managing Director, ASEAN and Pacific, Hexagon Manufacturing Intelligence
In recent years, the global spotlight on climate change has intensified, scrutinizing the sustainability practices of industries worldwide. Within the vibrant and economically diverse region of the Association of Southeast Asian Nations (ASEAN), manufacturing stands as a cornerstone of economic growth. However, it also poses significant environmental challenges. As the world increasingly pivots towards sustainability, ASEAN’s manufacturing sector must embrace net-zero commitments to ensure long-term resilience and competitiveness.
A promising pathway to achieving net-zero emissions in the manufacturing sector is through the adoption of validated commitments. These commitments involve setting clear, science-based targets aligned with the Paris Agreement’s goal of limiting global warming to 1.5 degrees Celsius. At Hexagon Manufacturing Intelligence, we take this responsibility seriously by having our net-zero targets validated by the Science-Based Targets initiative (SBTi). Beyond Hexagon, this milestone signals a broader shift that can influence and accelerate sustainability efforts across ASEAN’s manufacturing ecosystem.
The Power of Validated Science-Based Targets (SBT)
Setting ambitious sustainability goals is not enough. Validating these commitments through independent third-party assessments ensures transparency and accountability, building trust with stakeholders and consumers alike. According to the 2023 Sustainability Report, Hexagon’s emissions reduction targets have been validated by the SBTi, ensuring they are grounded in rigorous scientific analysis rather than broad corporate pledges. Our targets include a 95% reduction in Scope 1 and 2 emissions by 2030, and a 25% reduction in Scope 3 emissions per unit of revenue by 2030, with a long-term commitment to reduce Scope 3 emissions by 97% per EUR value added by 2050. These commitments demonstrate tangible steps toward a sustainable future.
Unlike general sustainability statements, SBTi validation demands a clear roadmap and measurable progress. This accountability translates into specific operational changes across Hexagon’s global footprint, particularly in ASEAN, where manufacturing plays a crucial economic role. From optimizing energy use in production facilities to integrating smarter, resource-efficient technologies, these validated commitments drive real and lasting change.
The SBTi is a partnership between CDP, the United Nations Global Compact, World Resources Institute (WRI) and the World Wide Fund for Nature (WWF). Over 2,000 organizations worldwide are leading the transition to a net-zero economy by setting emissions reduction targets grounded in climate science through the SBTi.
ASEAN’s Manufacturing Landscape: Challenges and Opportunities
ASEAN’s manufacturing sector is diverse, with each country facing unique sustainability challenges. Many manufacturers struggle with high energy costs, limited infrastructure for green technologies, and varying regulatory frameworks. While governments across ASEAN are implementing net-zero policies, gaps in enforcement and financial incentives remain a barrier.
However, these challenges also present opportunities. Sustainable manufacturing can drive cost efficiencies, open new markets, and enhance competitiveness. Regional policymakers and industry leaders must work together to create a supportive ecosystem that accelerates the transition toward greener manufacturing.
The Value Chain Effect
Commitments from industry leaders like Hexagon create a ripple effect, influencing the entire value chain. Original Equipment Manufacturers (OEMs) increasingly require their suppliers to meet sustainability standards, making validated targets a business imperative rather than just an environmental goal.
For ASEAN-based suppliers, this shift has practical implications: the need to adopt lower-carbon processes, invest in energy-efficient machinery, and track emissions with greater precision. Technology plays a critical role in this transition. Hexagon’s manufacturing intelligence solutions help businesses measure, analyze, and reduce their emissions with data-driven precision. Our commitment to SBTi validation ensures that our partners and customers can trust the sustainability of their supply chains.
Hexagon is actively working with suppliers to integrate net-zero practices, committing to ensuring that 50% of its suppliers (by spend) will have science-based targets by 2028 and 80% by 2030.
Enabling Sustainable Manufacturing Through Innovation
Innovation is at the heart of sustainable manufacturing. Hexagon’s advanced solutions enable manufacturers to optimize processes, minimize waste, and enhance resource efficiency. Our technologies, such as digital twin simulations and AI-driven metrology systems, empower businesses to make data-backed decisions that reduce their environmental footprint while improving operational performance.
For example, companies using Hexagon’s solutions have reported significant efficiency gains—cutting material waste, reducing energy consumption, and streamlining production workflows. Beyond the environmental benefits, these advancements translate into substantial cost savings, reinforcing the business case for sustainability.
Building a Sustainable Future Together
The path to sustainable manufacturing in ASEAN requires collective action. Manufacturers, policymakers, and technology providers must collaborate to drive industry-wide transformation. By adopting science-based targets, companies can gain a competitive edge while securing long-term resilience in a rapidly changing market.
Hexagon remains committed to supporting manufacturers on this journey. We offer resources, expertise, and cutting-edge solutions to help businesses navigate the complexities of sustainability while maintaining profitability. Our commitment extends beyond our immediate operations to include partnerships with suppliers and customers, ensuring that the entire value chain is aligned with sustainable practices.
The time to act is now. ASEAN manufacturers that take early steps toward validated net-zero commitments will not only future-proof their businesses but also contribute to a more resilient and competitive regional economy. The transition to sustainable manufacturing is no longer a choice—it is an imperative. By leveraging innovation and science-based accountability, we can drive meaningful progress and build a thriving, sustainable future for ASEAN’s manufacturing sector.
Ultimately, the shift towards sustainable manufacturing in ASEAN is not just about meeting environmental goals; it is about embracing a new paradigm of industrial growth that prioritizes long-term viability and ecological responsibility. As we move forward, the ripple effect of validated net-zero commitments will extend beyond individual companies, influencing entire industries and communities. Together, we can create a sustainable legacy that ensures prosperity for future generations while safeguarding the planet.
