How does renewable energy use in manufacturing affect a product’s carbon footprint?

Agnè Baltakienė · 31 Oct 2026

Using renewable energy in manufacturing directly reduces a product’s carbon footprint by cutting the Scope 2 emissions tied to electricity consumption. For energy-intensive industries like retail display production, switching to renewables can eliminate a significant portion of operational emissions. The remaining footprint comes from materials, transportation, and other processes. Below, we answer the most common questions about renewable energy and manufacturing sustainability.

How much can renewable energy actually reduce manufacturing emissions?

Renewable energy can eliminate the majority of electricity-related manufacturing emissions, which in many production facilities represent the largest single source of greenhouse gas output. For manufacturers that source 100% of their electricity from renewables, Scope 2 emissions effectively drop to zero. The remaining emissions come from Scope 1 sources like direct fuel combustion and supply chain activities.

The exact reduction depends on how energy-intensive the production process is and what share of total emissions electricity accounts for. In facilities where electric machinery drives most of the production, the impact of switching to renewables is substantial. Pair that with active energy efficiency measures, such as upgrading to energy-saving lighting and switching off appliances when not in use, and the total reduction compounds further.

Manufacturers serious about this set measurable targets. A binding commitment to reduce GHG emissions per product unit by a defined percentage over a set period is a reliable signal that the reduction effort is structured and tracked, not just aspirational.

What is a product’s carbon footprint made up of?

A product’s carbon footprint is the total greenhouse gas emissions generated across its production lifecycle, measured in CO2 equivalent. It includes Scope 1 emissions from direct energy use on-site, Scope 2 emissions from purchased electricity, and often Scope 3 emissions from the broader supply chain, including raw material extraction, component sourcing, and transportation.

For a physical product like a retail display or mannequin, the footprint breaks down roughly like this:

Raw materials: The extraction and processing of materials contributes emissions before manufacturing even begins
Production energy: Electricity and fuel used to power machinery, lighting, and facilities
Transportation: Freight from suppliers to the factory, and from the factory to the customer
Packaging: Materials used to protect and ship the finished product

Understanding this breakdown matters because it shows where intervention has the most impact. Renewable energy addresses the production energy component directly. Nearshoring supply chains, maximizing container fill rates, and choosing recyclable packaging materials tackle the rest. No single action eliminates the full footprint, but combining them creates meaningful, measurable progress.

What’s the difference between green energy and carbon-neutral manufacturing?

Green energy refers specifically to electricity or power sourced from renewable sources like wind, solar, or hydropower. Carbon-neutral manufacturing is a broader claim: it means the total greenhouse gas emissions from a production process are balanced, either through direct reductions or by offsetting remaining emissions. A factory can use green energy and still not be carbon-neutral if its other emission sources remain unaddressed.

This distinction matters a lot when evaluating supplier sustainability claims. A manufacturer powered by renewable electricity has genuinely reduced its Scope 2 emissions to near zero. But if raw materials travel long distances, packaging is carbon-heavy, or no targets exist for Scope 1 emissions, the overall footprint can still be significant.

Carbon-neutral claims require verification across all emission scopes, ideally with third-party auditing. Green energy use, by contrast, is more straightforward to verify. Both are positive steps, but they answer different questions. When comparing suppliers, ask which specific emissions have been reduced and which are being offset, because offsets and actual reductions are not the same thing.

How does renewable energy use affect product sustainability certifications?

Renewable energy use can support and strengthen a manufacturer’s eligibility for sustainability certifications, but it rarely determines them alone. Most recognized frameworks evaluate a company across multiple dimensions, including energy sources, materials, labor standards, and environmental management. Renewable energy is one important input among several.

Certifications like EcoVadis assess companies on a broad sustainability scorecard. Strong performance in energy and climate, including verified use of renewable electricity and binding GHG reduction targets, contributes directly to a higher rating. A manufacturer placing in the top percentiles of an EcoVadis assessment, for example, has demonstrated performance across all pillars, not just energy.

For retailers sourcing sustainable retail display materials or eco-friendly mannequins, these certifications provide an independently verified shortcut. Rather than auditing each supplier’s energy contracts yourself, a recognized certification tells you that the claims have already been checked against a structured methodology. Always look for the certification level and the year it was issued, because certifications require periodic renewal and the underlying performance can change.

Does renewable energy in manufacturing make a product more expensive?

Not necessarily. The cost impact of renewable energy on manufacturing depends on the energy market, the manufacturer’s location, and whether they own or purchase renewable capacity. In many European markets, renewable electricity is now cost-competitive with fossil fuel alternatives, meaning the premium, if any, is small. Operational energy efficiency measures can offset additional costs further.

What tends to add cost is not the energy source itself but the broader sustainability infrastructure: emissions monitoring, third-party certifications, sustainable raw material sourcing, and responsible packaging. These are real investments. However, for B2B buyers purchasing at volume, these costs are spread across large order quantities and often represent a fraction of the total unit price.

There is also a longer-term commercial logic here. Retailers facing increasing pressure from regulators, investors, and consumers to demonstrate sustainable supply chains increasingly factor supplier sustainability into procurement decisions. A slightly higher unit cost from a verified sustainable manufacturer can reduce the buyer’s own reporting burden and reputational risk, which has real financial value.

Which manufacturing materials benefit most from renewable energy use?

Materials that require significant energy input during production benefit most when that production runs on renewable electricity. In retail display and fixture manufacturing, polystyrene is a strong example. It is processed through energy-intensive methods like blow-moulding, so powering that process with renewables directly reduces the emissions per unit produced. Polystyrene is also 100% recyclable, which supports a circular material loop that compounds the sustainability benefit over time.

By comparison, materials like fiberglass and polyurethane, which are common in mannequin manufacturing, are harder to recycle and often involve chemical processes with higher embedded emissions. Switching to renewable energy helps any manufacturing process, but it has the greatest net impact when the base material is already recyclable and the production method is electric-driven rather than combustion-based.

For retailers evaluating sustainable fixture manufacturing options, the combination of material recyclability and renewable energy use is a stronger indicator of genuine environmental performance than either factor alone. A recyclable material made with fossil fuel electricity and a non-recyclable material made with renewable electricity both represent partial solutions. The most defensible choice combines both.

How can retailers verify a supplier’s renewable energy claims?

Retailers can verify a supplier’s renewable energy claims by looking for documented evidence rather than taking marketing statements at face value. Here are the most reliable verification routes:

Ask for energy supply contracts or certificates: Renewable energy purchases are typically documented through energy attribute certificates or direct supply agreements. A credible supplier can share these on request.
Check third-party sustainability ratings: Platforms like EcoVadis independently assess and score supplier sustainability, including energy performance. A current, high-scoring certification provides externally verified evidence.
Review GHG reporting: Suppliers that measure and report Scope 1 and Scope 2 emissions annually, and set binding reduction targets, demonstrate that energy claims are backed by structured accounting rather than estimates.
Evaluate the full supply chain picture: A supplier using renewable energy but sourcing materials from distant, unverified origins may still carry a high transportation footprint. Ask about nearshoring practices and supplier selection criteria.
Look for a published sustainability policy: A formal, publicly available policy that covers energy, materials, labor, and transportation shows that sustainability is embedded in operations, not just a communication exercise.

Verification does not need to be complicated. The clearest sign of a credible claim is a supplier who tracks their emissions with specific numbers, has set measurable targets, and can point to independent confirmation. Vague references to “green practices” without supporting documentation should prompt further questions.

At IDW Display, we source electricity exclusively from renewable energy, measure our Scope 1 and Scope 2 emissions annually, and hold a binding 5-year target to reduce GHG emissions per mannequin by at least 10% below 2022 levels. Our EcoVadis Silver Medal places us in the 93rd percentile of all assessed companies, providing independent verification of our performance across energy, materials, labor, and supply chain. If you want to understand exactly how we approach sustainable display manufacturing, or if you are ready to discuss a project, get in touch with our team directly.

Frequently Asked Questions

How do I get started with transitioning my manufacturing facility to renewable energy?

The most practical first step is conducting an energy audit to understand your current electricity consumption and identify which processes draw the most power. From there, you can explore options like direct renewable energy supply contracts, on-site solar or wind installation, or purchasing energy attribute certificates to cover your existing consumption. Starting with an audit also gives you a baseline for measuring and reporting the emissions reductions you achieve over time.

What is the difference between Scope 1, Scope 2, and Scope 3 emissions, and which ones does renewable energy actually address?

Scope 1 covers direct emissions from sources your facility owns or controls, such as gas boilers or company vehicles. Scope 2 covers indirect emissions from purchased electricity — this is the category that renewable energy directly eliminates. Scope 3 is the broadest category, covering supply chain emissions from raw material extraction, inbound freight, and even the end-of-life disposal of your product. Renewable electricity is one of the most effective tools available for reducing Scope 2, but a comprehensive sustainability strategy also needs to address Scope 1 through fuel switching and Scope 3 through supplier selection and logistics decisions.

What are the most common mistakes manufacturers make when communicating their renewable energy credentials?

The most frequent mistake is making broad claims — such as ‘we use green energy’ or ‘we are eco-friendly’ — without the documentation to back them up. This is sometimes called greenwashing, and it exposes both the manufacturer and the retailers sourcing from them to reputational and regulatory risk. Another common error is focusing exclusively on energy while ignoring other significant emission sources like materials and transportation, which can leave a large portion of the product’s actual carbon footprint unaddressed. Credible communication starts with specific numbers, defined targets, and independently verified evidence.

Can a small or mid-sized manufacturer realistically afford to switch to renewable energy?

Yes, and in many cases the financial barrier is lower than manufacturers expect. Purchasing renewable electricity through a supplier contract or energy attribute certificates does not require large capital investment and is increasingly cost-competitive with conventional grid electricity, particularly across European markets. Smaller manufacturers who cannot justify on-site generation can still achieve verified Scope 2 reductions through certified renewable energy procurement. The more significant costs tend to be in building the emissions monitoring and reporting infrastructure around the switch, but these can be scaled gradually.

How often should a manufacturer update or renew their sustainability certifications, and what happens if performance slips?

Most recognized sustainability certifications, including EcoVadis assessments, require renewal on an annual or biennial basis, meaning the score reflects recent performance rather than a one-time achievement. If a manufacturer’s practices deteriorate — for example, if they switch energy suppliers or reduce investment in environmental management — their score will reflect that at the next assessment. For retailers, this is why it is important to check both the certification level and the date it was issued, and to request updated documentation for long-term supplier relationships rather than relying on credentials that may be several years old.

How does nearshoring or local sourcing complement renewable energy use in reducing a product's overall carbon footprint?

Renewable energy addresses the production energy component of a product’s footprint, but transportation can represent a substantial share of total lifecycle emissions — particularly for products manufactured in one region and sold in another. Nearshoring, which means sourcing materials and manufacturing closer to the end market, reduces freight distances and the associated emissions from road, sea, or air transport. When combined with renewable energy in production, nearshoring compounds the total footprint reduction and also improves supply chain resilience and lead times, making it a strategically and environmentally sound decision for retailers evaluating their sourcing options.

What questions should retailers include in a supplier sustainability questionnaire to go beyond surface-level claims?

Effective questionnaires go beyond asking whether a supplier uses renewable energy and instead request specific, verifiable details. Key questions include: What percentage of your electricity comes from renewable sources, and can you provide supporting certificates or contracts? Do you measure and report Scope 1 and Scope 2 emissions annually, and what are your current figures? Have you set binding GHG reduction targets, and what is your progress against them? Do you hold a current third-party sustainability certification, and at what level? How do you select and assess your own suppliers for environmental performance? Suppliers who can answer these questions with documentation rather than general statements are demonstrating the kind of structured, accountable approach that gives retailers genuine confidence.