Measuring Environmental Impact in Manufacturing

During National Forest Week, conversations naturally turn to forests, natural resources and the responsibility we share in protecting them. For manufacturers, particularly those working with paper and paperboard, it is also an opportunity to look more broadly at environmental impact and, importantly, how it is measured.

Sustainability goals are increasingly becoming part of manufacturing strategies. But before a company can reduce its environmental impact, it first needs to understand where that impact comes from.

That is where measurement becomes essential.

Environmental performance is not represented by a single number. Energy consumption, greenhouse gas emissions, material use, waste and water can all provide different insights into how a manufacturing operation interacts with the environment.

The challenge is identifying which indicators matter most and using them consistently enough to turn data into meaningful action.

Start with a baseline

Improvement begins with understanding current performance.

Establishing a baseline gives manufacturers a reference point against which future changes can be measured. Depending on the operation, this could include annual electricity and fuel consumption, greenhouse gas emissions, material inputs, production waste or water use.

International standards can help provide structure. ISO 14031, for example, provides guidance for organizations looking to design and use environmental performance evaluations and indicators as part of a continuous improvement approach. [Learn more about ISO 14031.]

At Produlith, one of the tools we use to better understand our own environmental performance is an annual carbon footprint assessment. Measuring our emissions over time provides a reference point that helps us track our progress and identify areas where improvements can be made.

A baseline also makes it possible to distinguish between absolute reductions and improvements in efficiency. A growing manufacturer may consume more energy overall while using less energy per unit produced. Looking at both total impact and intensity can therefore provide a more complete picture.

What should manufacturers measure?

The right indicators will vary depending on the facility, processes and environmental priorities, but several areas are particularly relevant in manufacturing.

Energy consumption

Tracking electricity, natural gas and other energy sources can help identify where energy is being used and where efficiency opportunities may exist. Natural Resources Canada encourages industrial facilities to use tools such as energy audits, energy management systems and benchmarking to continuously improve energy performance. [Explore Natural Resources Canada’s energy management resources.]

For manufacturers investing in new equipment and technologies, measurement can also help determine whether these investments translate into improvements in energy or operational efficiency over time.

Greenhouse gas emissions

A greenhouse gas inventory translates different emission sources into a common measurement, typically tonnes of carbon dioxide equivalent (CO₂e).

The GHG Protocol categorizes corporate emissions into three scopes. Scope 1 covers direct emissions from sources owned or controlled by the company, Scope 2 covers indirect emissions associated with purchased energy, and Scope 3 encompasses other indirect emissions throughout the company’s value chain. [Explore the GHG Protocol.]

Understanding these categories can help manufacturers identify where emissions occur and where they have direct control or broader influence.

At Produlith, our carbon footprint assessment also helps us quantify the impact of certain actions already in place. Our environmental initiatives have contributed to avoiding approximately 660 tonnes of CO₂ emissions, providing a concrete indicator to help us better understand the progress made.

Materials and waste

In manufacturing, environmental performance is also closely connected to the materials entering and leaving a facility.

The quantity of raw materials used, production waste generated, recovery and recycling rates, and materials sent for disposal are all relevant indicators.

This is particularly important in the printing and packaging industry, where optimizing the use and recovery of paper and paperboard can directly contribute to greater resource efficiency.

This consideration also begins upstream, with the choice and origin of materials. At Produlith, we prioritize local sourcing for our paperboard and offer a range of recyclable and certified paperboard options. Our FSC, SFI and PEFC certifications also help integrate principles of responsible forest management and traceability into our supply chain.

In production, our automated paperboard sorting system separates production offcuts by material type to facilitate their recovery and recycling. It is a concrete example of how operational processes can also contribute to environmental objectives.

Material management also extends to other inputs used in production. Produlith uses water-based inks, while ink residues are collected by our supplier for proper recycling and management.

These examples also illustrate why environmental performance cannot be evaluated through a single indicator. GHG emissions are important, but the origin of materials, how they are used and what happens at the end of their life also contribute to the overall picture.

Water consumption

For operations where water is a significant input, monitoring total consumption and intensity can reveal opportunities for conservation and process improvements.

However, not every environmental indicator carries the same importance for every manufacturer. An effective approach also involves determining which indicators are truly significant based on the realities of each operation.

From measurement to improvement

Collecting data is only the first step. Its real value comes from using it to guide decisions.

Manufacturers can compare performance over time, establish targets and evaluate whether operational changes or new investments are delivering measurable improvements.

Benchmarking can also add important context. Natural Resources Canada provides industry-specific benchmarking resources across sectors including pulp and paper, plastics, food and beverage, transportation manufacturing and others. [Explore NRCan’s industry benchmarking guides.]

Measurement can also reveal an important connection between environmental and operational performance. Energy efficiency, material optimization and waste reduction can contribute to environmental objectives while also improving operational efficiency. [Natural Resources Canada 2026 report.]

What does this mean for packaging manufacturing?

In packaging, environmental measurement can extend across several stages of production.

Material utilization and production waste can help manufacturers understand how efficiently paperboard, substrates, inks and other resources are being used. Energy data can reveal the impact of equipment and production processes, while greenhouse gas inventories provide a broader view of emissions associated with operations.

The objective is not simply to collect more data. It is to identify the indicators that provide useful information and use them to make better decisions.

At Produlith, this approach is part of an ongoing effort to better understand our environmental footprint and identify opportunities for continuous improvement. Measuring performance gives us a clearer picture of where we are today and where meaningful progress can be made next.

Because when environmental objectives are supported by reliable data, sustainability becomes something that can be tracked, evaluated and improved.

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