As net-zero deadlines approach and carbon accounting becomes as critical as cost accounting, the global manufacturing sector is under pressure to decarbonise not just its products, but also its production lines. Legacy factories, originally built for throughput and profit, need to be adapted to a world that demands climate accountability. Among the pioneers leading this transformation are BMW, Unilever, Schneider Electric and Siemens. All are chasing the same goal: zero emissions without sacrificing performance or profitability.
Electrifying the legacy plant
BMW’s Regensburg facility in Germany is a model for decarbonised automotive production. Originally built in 1986, it’s now a smart factory powered by digital twin technology and data optimisation. The company has shifted 100% of its electricity sourcing in Europe to renewables. New paint shops use 70% less energy per vehicle than a decade ago and heat recovery systems are deployed across the plant. A digital twin of the entire plant enables predictive maintenance and line balancing to eliminate inefficiencies before they appear. BMW has publicly committed to cutting CO₂. emissions from vehicle production by 80% by 2030. Regensburg is already operating with net carbon neutrality for its direct operations, and this is without the use of carbon offsets.
Zero carbon in consumer goods
While automotive production is energy-intensive, consumer goods companies like Unilever have different challenges with decentralised, smaller plants that have varied energy profiles; but by the end of 2023, all 65 of its global manufacturing sites had transitioned to 100% renewable grid electricity. In South Africa, its Durban and Boksburg plants have invested in biomass boilers and rooftop solar systems, cutting fossil fuel reliance by over 50%. The company is phasing out coal entirely and upgrading refrigeration and HVAC systems to high-efficiency, low-GWP technologies.
Unilever is also tackling process emissions. For example, in its ice cream plants it’s replacing HFC refrigerants with natural alternatives like ammonia and CO₂. The company’s Clean Future platform also ensures that emissions are reduced throughout the supply chain, not just within its own gates.
Engineering net zero
As a supplier of electrification, automation and digitalisation technologies, Siemens is in a unique position to apply its own tools to itself. Its factory in Amberg, Germany, once considered a standard PLC plant, has been retrofitted into one of the most advanced digital manufacturing facilities in the world. Through its own technologies like Simatic Energy Manager and MindSphere, Siemens has cut energy consumption at Amberg by 30% over the past decade. Siemens now also runs several of its major facilities on 100% renewable energy, sourced from both on-site generation and long-term PPAs. Siemens is also shifting to low-carbon materials in its factory design and construction. Its latest plants are built using low-carbon concrete and steel, with embedded environmental sensors monitoring indoor air quality, lighting and HVAC optimisation. In another first, the company is building carbon measurement into its digital twin platform, enabling lifecycle CO₂. calculations for every product and process − not just energy use, but embedded carbon in supply chains too.
Net-zero by design
Few companies have embedded sustainability as deeply into their operations as Schneider Electric. Recognised by Corporate Knights as the world’s most sustainable corporation in 2025, the company sets the standard in carbon-neutral manufacturing. Its flagship Lexington smart factory in Kentucky, USA is a model for transforming legacy sites. Built in the 1950s, the plant has been digitised with Schneider’s own EcoStruxure platform, which integrates energy monitoring, predictive maintenance and industrial automation. Lexington has cut energy use by 26% and carbon emissions by over 30%, all without major capital investment. Schneider is aiming for carbon neutrality by 2030 across its global operations, including its 200 factories. The company is going beyond internal decarbonisation. Through its Zero Carbon project, it is helping 1000 of its top suppliers reduce their emissions by 50%, showing that true sustainability means improving the performance of the entire value chain, not just your own building.
A waste-free, carbon-free future
While each of these companies is pursuing its own path, there are some common themes:
• Digitalisation is central: Energy data and process simulation are key enablers of decarbonisation.
• Renewables aren’t optional: Solar, wind, and PPAs are foundational to carbon-free factories.
• Circular design matters: Waste heat, materials reuse and smart logistics are gaining ground.
• Scope 3 is the next frontier: Internal carbon neutrality is just the beginning; true sustainability includes suppliers and customers too.
As more manufacturers commit to science-based targets and ESG-linked reporting, we can expect this race to accelerate. Not every factory will become net-zero overnight, but leaders like BMW, Unilever, Siemens and Schneider Electric are setting the pace.
For more information visit www.manufacturingdigital.com/top10/top-10-net-zero-factories
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