How does the European Hydrogen Bank work?
Jan 10, 2024
Innovative
Industry is the largest contributor to the European economy, accounting for 20% of GDP and providing jobs and prosperity to the continent. But the path to a carbon-free future, set for 2050, and the ongoing need for innovation pose new challenges that industry needs to address to maintain its competitiveness levels.
Companies have long since moved away from the sole focus on growth and are now focusing on becoming more sustainable, resilient and putting people at the forefront.
The values of this “new industrial revolution” were set out by the European Commission in the report “Industry 5.0: Towards a sustainable, human-centric and resilient European industry”, which emphasises environmental, social and fundamental rights factors, adapting industry to the future society.
Accordingly, companies face the challenge of creating increasingly inclusive workplaces, building more resilient supply chains and doing so in a sustainable way. Industry 4.0 was focused on technology; Industry 5.0 on people.
Companies face the challenge of creating increasingly inclusive workplaces, building more resilient supply chains and doing so in a sustainable way
For years, the European Union has been developing policies in which the person is at the centre. One example was the General Data Protection Regulation or the White Paper on Artificial Intelligence, which opens the door to future regulation. In both cases, regulatory policies are centred on citizens’ rights at their core.
The new generations, Millennial and Z, are gaining ground in companies. Their work motivation is different from that of the baby boom generation and in most cases, work-life balance is their main concern, above remuneration.
To this must be added the new characteristics of “future” work, where freelance workers already account for 30% of workers in the European Union.
Industry 5.0 shifts the focus from Industry 4.0, where the focus was on technology. Now, the most valuable thing is people. Hence, the EU’s efforts are focused on human-centric industrial development to gain a competitive advantage in attracting and retaining talent.
Industry 5.0 shifts the focus from Industry 4.0, where the focus was on technology. Now, the most valuable thing is people
In 5.0 companies corporate purpose, which is what drives companies, their customers and employees, is gaining ground. Its shared value.
The Industry 5.0 concept promotes the economic performance of industries while ensuring environmental sustainability above all. The availability of energy consumption data of industries has grown significantly due to the widespread use of new technologies, and makes it necessary to show increasingly efficient and environmentally friendly levels.
The European Union, aware of the need for sustainable economic development, has developed a directive that requires large companies to produce a non-financial report analysing the impact of their activities on the environment, sustainability and corporate governance (ESG).
With the European Climate Law, adopted in 2021 and part of the European Green Deal, the EU turned the political commitment to achieve climate neutrality (net zero emissions) by 2050 into a legal obligation. Furthermore, it set emission reductions of at least 55% by 2030. In addition to emission commitments, the EU also aims to work towards a circular economy by 2050, create a sustainable food system and protect, among others, biodiversity.