b"SECTIONThe integration of digitalstand global localities, concernedtechnologies, like battery storage in technologies is not an inbornabout particulates, air quality, andhigher-power-output applications, capability of industrial- machinerynoise, have introduced regulationsthe moment of economic viability OEMs, which have their roots into discourage specific equipment onis coming. The push for greener mechanical engineering, not digitalconstruction sites. This is affectingmachine technologies will technology. The challenge thatdecisions about the equipment usedaccelerate if carbon prices go up, companies confront is multiprongedon new building developments incarbon border taxes are imposed, relating both to different kindsplaces like Paris, on road repairs inor governments subsidize the of both hardware and softwareStockholm, and at landfills in Lostechnologies developmentall of technology and to the ecosystemAngeles. which are possibilities. The good of players with varied backgroundsFrom an investor's perspective, itnews is that sustainability is not all and strengths. Manufacturers alsois one of the biggest boxes too. Atabout playing defence. For OEMs face participation decisions: whoElectrocomponents, it has initiatedwith an ability to innovate, the to partner with and what to buycompanywide ESG plans thatregulations relating to sustainability versus build. Given a trusted globalincorporates reducing carboncreate opportunities that did not distributor like RS Componentsfootprints in all its plants, usingpreviously exist.available with a deep & broad reachkey performance indicators toThe three accelerating and into the market, the advantage ofmeasure and report the contributioninterconnected trends will shape partnering outweighs the cons byand impact to even changing thethe path to value creation for those far. company mission statements.most willing to rethink their current Companies that pay the mostbusiness models and will pose an attention to emissions and otherexistential threat to any companies THE GREEN FACTOR aspects of total societal impact nowthat remain complacent.The third important trend intrade at a premium to those that industrial machinery involvespay less attention, according to sustainability. The pressure toBCG analysis.reduce pollution and the effectsAn important thing to keep an eye of climate change is comingon is the availability of technologies from multiple sources: the public,(including many machines and government regulators, andcomponents) that contribute to investors. greener business practices. In many In the government realm, thesectors, these technologies are commitment has varied fromalready economically competitive, country to country, but it is hard towith no subsidy or government imagine that things will not turn action. This is true, for instance, of sooner or laterpermanently in thesolar panels versus coal for power direction of tighter environmentalgeneration. In the case of other FooterMessage45"