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OVERVIEW ENERGY & MATERIALS HEALTH & RESILIENCE WORK & PROSPERITY GOVERNANCE APPENDIX FY22 IMPACT REPORT 18 Partner with customers Design & Manufacturing Approximately 19% of global greenhouse gas Energy use is another pressing issue, during both manufacturing 14 and product use. By using approaches such as digital twins and emissions are from the manufacturing industry, and by 2050 the growth in population and AI-assisted predictive maintenance, manufacturers can optimize associated demand for consumer goods will factory layout and operations. In sectors such as transportation, 15 16 automotive, and aerospace, designing lighter-weight products require at least twice the energy and materials utilizing generative design and other innovative technology can currently used. reduce energy consumption of products in use. These impacts and trends are driving manufacturers to commit to Materials use is a key environmental impact driver in product sustainable and circular outcomes in their work. In a new study design and manufacturing. Reducing materials use and waste focused on the European Union, 73% of manufacturing companies (through lightweighting and additive manufacturing) and surveyed understand sustainability as a component of formal using lower impact and more sustainable materials (such as 17 Manufacturing strategic vision from a leadership approach. recycled and renewable content) are important objectives companies that address these opportunities could see potential for many of our customers. Developing more circular product revenue of $338 billion from new sustainable products and designs—through design for upgradability, repairability, reuse, 18 services in the short to medium term. disassembly, and recycling—as well as transitioning to product- Based on internal research about the consumer packaged goods as-a-service and other more circular business models allows industry, nearly 6 in 10 consumers surveyed are willing to change companies to gain more value from materials and strengthen their shopping habits to reduce environmental impact. They are relationships with customers. also demanding more transparency, with close to half (49% saying To comply with materials regulations worldwide, such as the they do not have the information to verify products’ sustainability Restriction of Hazardous Substances (RoHS) Directive and claims. And companies recognize the benefits derived from Registration, Evaluation, Authorisation and Restriction of sustainability initiatives, with 77% of those surveyed agreeing Chemicals (REACH) regulation in the European Union and 19 Consumer goods that they drive an increase in consumer loyalty. legislation related to conflict minerals in the United States brands are looking for guidance on how to manage the complexity and other locations, companies face increasing pressure to of this transformation, and consumers need to be assured that assess and document the materials used in their products, companies are genuinely using the most innovative product and in some cases to ensure materials' traceability throughout designand manufacturing technology to achieve next-level the supply chain. sustainability innovation. Image courtesy of PIX Moving

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