ML Journal

Success with sustainability requires a new, strategic way of thinking about and managing the business.  

 

TAKEAWAYS:
● Becoming a sustainability-driven organization requires more than reports and projects. A new operating model is needed that provides workers with real-time information, guidance, and feedback.
● The need for sustainable manufacturing is accelerating and those who fail to adapt risk losing out in the marketplace.
● Sustainability needs to be embedded into daily operations and decision-making across the organization.  

 

Sustainability is no longer a niche initiative or compliance obligation; it is a strategic imperative and a core approach to how a company is run. Yet, for many manufacturers, especially small to mid-sized enterprises (SMEs), sustainability can feel abstract or even inaccessible. The Sustainability Management System (SMS) framework was developed to address this challenge directly: to provide a clear, practical, and actionable approach for manufacturing leaders to embed sustainability into the heart of their business operations.

The Challenge: Bridging Strategy and Action

Despite growing interest in Environmental, Social, and Governance (ESG) initiatives and mounting pressure from investors, customers, and regulators, many manufacturers struggle to move from intent to execution. Traditional models like ISO 14001 provide environmental management foundations, and ESG reporting frameworks help with disclosures, but neither fully address the totality of how the business operates — from the factory floor and R&D labs to suppliers and  customers.

The SMS framework, developed by the author of this article, is designed to fill that gap. Inspired by the structure of a Quality Management System (QMS), it incorporates sustainability into operational management in a way that is:

• • Integrated with existing workflows
  • Tailored to manufacturers
  • Focused on continuous improvement
  • Grounded in business outcomes.

The Core Philosophy of SMS

At its heart, the SMS emphasizes that sustainability is not an add-on; it is a way of managing the business differently. Instead of viewing sustainability as a set of isolated projects or compliance hurdles, SMS positions it as a strategic lens through which every decision is evaluated. This shift enables manufacturers to:

• Identify risks and opportunities across the value chain
• Strengthen relationships with employees, customers, and communities
• Innovate more effectively through circularity and resource efficiency
• Align with evolving global standards and stakeholder expectations

To achieve this, the SMS follows a structured approach that builds from foundational readiness to systemic transformation.

SMS Structure: From Foundations to Maturity

The SMS is organized around five key phases:

1. Strategic Commitment: Aligning leadership and articulating a sustainability vision linked to business objectives. Without clear commitment, change remains superficial.
2. Cultural Readiness: Assessing and shaping the organizational mindset required for lasting transformation. Tools such as maturity models and values assessments can help uncover hidden resistance or enablers.
3. System Design: Developing governance structures, roles, and processes that embed sustainability into daily operations, similar to how QMS, MES, or ERP systems are implemented.
4. Execution and Improvement: Using continuous improvement cycles to pilot, scale, and refine sustainability initiatives. This includes tracking KPIs that go beyond compliance to include innovation, resilience, and employee engagement.
5. External Engagement: Connecting the SMS to broader ecosystems, certifications (e.g., COSIRI), and reporting frameworks to enhance credibility and impact.

This structured path supports organizations in moving from reactive compliance to proactive leadership.

Integrating COSIRI: Measuring What Matters

To support transparency and measurement, the SMS incorporates the COSIRI (Cognitive Sustainability Readiness Index) framework as a benchmarking tool. COSIRI provides a robust, nine-pillar and 24-dimension structure to evaluate sustainability maturity across multiple domains, including strategy, people, innovation, and operations.

This integration allows companies to:

• Identify priority focus areas
• Track progress over time
• Communicate clearly with stakeholders
• Align internal capabilities with external expectations

COSIRI is particularly valuable because it is designed for manufacturers and resonates with the realities of industrial operations.

The Handshake Model: Reframing Change

A key insight emerging from this work is the need to move beyond traditional change management approaches. Too often, organizations rely on the “stick” (punishment) or the “carrot” (incentives) to drive sustainability adoption. The SMS proposes a third approach: the “handshake.”

The handshake represents a mutual commitment to shared value. It reflects the idea that change is not something we do to people, but something we do with them. By building a sense of co-agency, companies foster:

• Trust
• Engagement
• Purpose-driven behavior
• Long-term cultural alignment

This shift is essential in a BANI (Brittle, Anxious, Nonlinear, Incomprehensible) world where resilience depends on adaptability and connection. For example, implementing solar panels can be moved from a facilities project to a values-driven, community project. Instead of defining the project as “solar panels” it can be defined as “become net-positive energy consumers.” Framing the goal as becoming net-positive invites new relationships with the local community — for instance, by donating excess energy to those in need.

Why This Matters Now

Global trends in policy, consumer behavior, and investment are rapidly accelerating the need for sustainable manufacturing. At the same time, manufacturers in the United States face unique risks. Many leaders from growth markets around the world are embracing a new calculus for prosperity,  one grounded in safety, peace, and shared well-being. If U.S. manufacturers fail to adapt, they risk being outpaced not just on cost or quality, but on relevance.

This is not a call for idealism, but for strategic realism. By embedding sustainability into how decisions are made, manufacturers can unlock  innovation, strengthen their competitive advantage, and ensure long-term resilience.

Conclusion: A Call to Leadership

The Sustainability Management System is not a silver bullet. It is a toolset, a mindset, and a framework for doing business better. It gives manufacturing leaders a path forward that is both visionary and grounded in the practical realities of day-to-day operations.

For those ready to lead, the SMS offers a way to bridge the gap between good intentions and great results.  M

 

About the author:

 

Steven Moskowitz, Ph.D. is Founder & Principal Advisor @ Industry 4ward LLC and Senior Content Director at the Manufacturing Leadership Council. He can be reached at: [email protected]