Boosting economic and environmental impact: Sustainability as a business enabler1 Companies are using sustainability initiatives to streamline operations, attract talent and drive innovation and growth. Manufacturers across sectors face a common challenge of managing cost pressures while continuing to drive business growth. This task has become increasingly complex amid ongoing supply chain disruptions, geopolitical and trade uncertainties, and growing resource constraints. For SMEs and mid-sized manufacturers, these challenges are often amplified by their limited scale and resources, which constrain their bargaining power and operational flexibility throughout the value chain. In the face of these challenges, there is an opportunity for SMEs and mid-sized manufacturers to use sustainability as a strategic lever to unlock an array of benefits that can help them drive growth and strengthen long-term resilience. Viewing manufacturing operations from a sustainability perspective can unlock substantial cost savings, directly enhancing a company’s bottom line. One example is the Jiangsu plant of the Yunzhibao Foodstuff Company.8 Yunzhibao Foodstuff is a manufacturer and exporter of confectionery goods, and its Jiangsu plant is one of the largest facilities producing sweets and confectionaries in China. When initially commissioning the plant to respond to rapidly growing consumer demand, the company knew it needed to build an operation that made the most of innovative automation technologies to maximize process efficiency. Working with factory design experts and automation solution providers, Yunzhibao incorporated sensors, power meters and data analytics software into its production process to ensure that its use of energy and raw materials was as efficient as possible. These solutions enabled the company to eliminate product deviations due to operator error and gain process traceability from raw materials to finished product. This enabled the Jiangsu plant to realize a 10% increase in operational efficiency and a 5% decrease in production costs compared to other Yunzhibao Foodstuff facilities that do not use digitalized automation.1.1 Reducing costs and emissions through operational efficiency Data from a 2021 IBM Institute for Business Value study9 shows that 69% of global respondents would be more likely to accept a job with an organization they consider to be environmentally sustainable. Embedding sustainability can help SMEs and mid-sized companies gain a competitive advantage in the job market to attract and retain top talent. One such example is Brewery Vivant, a craft brewery in the United States that has incorporated sustainability into its recruitment and employee training strategies.10 Brewery Vivant encourages all new employees to complete a sustainability class and highlights its sustainability-related initiatives in its recruitment and promotional materials, helping it to stand out from its competitors in a crowded craft beer market.1.2 Strengthening talent attraction and retention Sustainability Meets Growth: A Roadmap for SMEs and Mid-Sized Manufacturers 7

Sustainability Meets Growth 2025