LG Electronics has surpassed key environmental targets five years ahead of schedule, with its latest Sustainability Report highlighting progress in emissions reduction, resource circularity, accessibility, AI governance, and ESG leadership.

EMISSIONS MILESTONES ACHIEVED  

LG Electronics (LG) has published its 2025–2026 Sustainability Report, outlining the company’s latest environmental, social and governance (ESG) achievements as it continues to pursue its vision of creating a Better Life for All. 

Amongst the report’s key findings is that LG has already exceeded several of its sustainability targets set for 2030, including goals relating to greenhouse gas (GHG) emissions and waste recycling. 

Across its domestic and international operations, the company’s Scope 1 (direct) and Scope 2 (indirect) emissions reached 842,000 tonnes (t) of CO₂ equivalent (tCO₂eq) during 2025. This places LG comfortably below its 2030 target of 878,000 tCO₂eq and reflects continued investment in energy-efficient technologies alongside a greater transition towards renewable electricity. 

The milestone supports LG’s broader objective of cutting GHG emissions by 54.6 percent by 2030 compared to 2017 levels. 

LOWER EMISSIONS ACROSS PRODUCT USE  

The report also highlights progress in reducing emissions generated during the use of LG’s products. 

In 2025, carbon emissions per unit across the company’s seven major product categories were reduced by 22.5 percent compared to 2020, surpassing its 2030 target of a 20 percent reduction. 

This target had previously been validated by the Science Based Targets initiative (SBTi), making LG the first South Korean home appliance manufacturer to receive SBTi approval for this type of emissions reduction goal. 

DRIVING RESOURCE CIRCULARITY  

Alongside its emissions progress, LG has also exceeded its long-term waste management ambitions. 

During 2025, the company achieved a waste recycling rate of 97.3 percent across all domestic and overseas business sites, outperforming its 2030 target of 95 percent. 

LG also retained Zero Waste to Landfill (ZWTL) certification across all of its domestic production facilities, with each of its five manufacturing sites maintaining the highest Platinum rating. 

Its global recycling initiatives also continued to expand. Throughout 2025, LG collected 640,000 t of used electronic products from 91 locations across 56 countries, increasing the company’s cumulative e-waste recovery total to more than 5.65 million t since 2006. 

EXPANDING ACCESSIBILITY  

Beyond its environmental initiatives, the report outlines LG’s ongoing efforts to improve accessibility across its products and customer services. 

The company continues to broaden the availability of its LG Comfort Kit, which is designed to make household appliances easier to use regardless of age, gender, or disability. 

Additional accessibility initiatives include wider implementation of braille and tactile guides, kiosks featuring sign-language avatars at service centres, and the LG Easy TV, developed specifically for senior users. 

LG also offers inclusive customer support services, including sign language consultations for customers with hearing impairments and dedicated assistance for older consumers. 

GOVERNANCE AND RESPONSIBLE AI  

The latest report also details measures introduced to enhance corporate governance. 

LG has separated the positions of Chief Executive Officer and board chairperson, with an independent director appointed as chair earlier this year to strengthen board oversight and improve governance transparency. 

Recognising the growing role of artificial intelligence (AI) across its operations, the company has also introduced a dedicated Responsible AI section within the Sustainability Report. 

The new section outlines LG’s AI Ethics Principles alongside its governance framework, with the company stating its intention to continue strengthening accountability and transparency throughout the development and application of AI technologies. 

CONTINUED GLOBAL ESG RECOGNITION  

LG’s sustainability progress has also been recognised through a series of leading global ESG assessments. 

The company has now been included in the Dow Jones Best-in-Class World Index (DJBIC World) for 14 consecutive years and has ranked within the “Top 1%” of S&P Global’s Corporate Sustainability Assessment (CSA) for the third successive year. 

In addition, LG received an “AA” rating from Morgan Stanley Capital International (MSCI), improving on the previous year’s result, whilst also securing its second consecutive Platinum rating from EcoVadis, an accolade awarded to the top one percent of companies within their respective industries. 

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Siemens and HD Hyundai have strengthened their strategic partnership to develop a blueprint for the digital shipyard, combining industrial software, automation, and artificial intelligence to help modernise global shipbuilding and meet growing international demand.

A BLUEPRINT FOR MODERN SHIPBUILDING  

Siemens and HD Hyundai have announced an expanded strategic partnership aimed at transforming the future of shipbuilding through the creation of a digital shipyard blueprint. 

The collaboration is underpinned by a low-triple-digit million USD agreement that will see HD Hyundai adopt the Siemens Xcelerator portfolio of industrial software and automation. Together, the companies aim to address increasing global demand for greater shipbuilding capacity and modernised production capabilities across the US and other international markets. 

The initiative will establish a connected digital thread spanning engineering, manufacturing, suppliers, and shipyard operations. By bringing these areas together, the partnership seeks to enable artificial intelligence (AI)-powered insights, intelligent automation and data-driven decision-making throughout the entire shipbuilding lifecycle. 

DRIVING PRODUCTIVITY THROUGH DIGITALISATION  

The integrated digital backbone is designed to help shipbuilders increase production capacity whilst improving quality and reducing rework. By creating a more connected and efficient operating environment, the companies intend to support a more resilient shipbuilding ecosystem capable of responding to rising global demand. 

The digital shipyard model has also been designed to support both new shipyard developments and phased modernisation programmes, allowing existing facilities to introduce digital technologies without interrupting day-to-day operations. 

“AI is not merely a tool for improving productivity, but a transformative technology that is reshaping how ships are designed, built, and operated. By integrating AI, digital twin, and automation technologies into a connected digital shipyard environment, we aim to establish a future-ready model for the shipbuilding industry,” said H.K. Kim, President and CEO of HD Korea Shipbuilding & Offshore Engineering. 

Roland Busch, President and CEO of Siemens AG, highlighted the complexity involved in modern shipbuilding and the role digital technologies can play in streamlining production. 

“To build the world’s most advanced vessels, shipbuilders must manage enormous complexity across millions of components. Through our extended partnership with HD Hyundai, we are creating a scalable blueprint for the digital shipyard of the future, with Siemens Xcelerator at its core,” he said.  

STRENGTHENING US-KOREA COLLABORATION  

Alongside the digital shipyard initiative, Siemens and HD Hyundai will support the launch of a US-Korea Shipbuilding Technology Cooperation Center in Washington, D.C. 

The centre is intended to encourage closer collaboration between government, industry, and technology organisations while providing a platform to explore shipyard modernisation strategies. It will also focus on accelerating the adoption of digital shipyard technologies and supporting workforce and industrial development initiatives that strengthen maritime competitiveness across the US and allied markets. 

Through the Siemens Xcelerator portfolio, HD Hyundai will gain access to software and technologies that support controlled data sharing, configuration management, digital approvals, production visibility, and lifecycle traceability. These capabilities are designed to maintain design authority and execution responsibility across a range of shipbuilding scenarios while creating a more connected and digitally enabled production environment.

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Canon has published its Sustainability Report 2026, outlining the company’s latest environmental, social, and governance initiatives whilst introducing a more accessible overview of its progress towards building a more sustainable business.

A COMPREHENSIVE SUSTAINABILITY UPDATE  

Canon Inc., parent company of Canon U.S.A., Inc., has released its ‘Canon Sustainability Report 2026’, providing stakeholders with an in-depth overview of the company’s sustainability strategy and environmental, social, and governance (ESG) activities. 

Developed for customers, investors, ESG specialists, students, and employees, the report details Canon’s sustainability principles and management framework, whilst highlighting the environmental and societal contributions being delivered across its business value chain. 

The latest edition also introduces a new highlights page, designed to provide readers with an accessible summary of the company’s most significant sustainability developments over the past year. 

GREATER EMPHASIS ON PRODUCTS  

A key addition to the 2026 report is an expanded focus on Canon’s products and the environmental initiatives supporting them. 

The report includes more examples of efforts to reduce environmental impact throughout product lifecycles, reflecting the company’s continued emphasis on integrating sustainability into product development, manufacturing, and use. 

Alongside these examples, the new highlights section showcases progress made through Canon’s products, technologies and solutions, enabling stakeholders to quickly understand the company’s latest ESG achievements before exploring the report in greater detail. 

SUSTAINABILITY ACROSS THE BUSINESS 

Beyond product innovation, the Sustainability Report 2026 outlines Canon’s broader approach to responsible business practices. 

The publication is organised around the company’s ESG priorities, covering topics including sustainability management and stakeholder engagement, alongside the material issues that guide decision-making across the business. 

Environmental initiatives remain a central focus, with dedicated sections examining climate change, environmental management, resource efficiency, biodiversity, and the responsible management of chemical substances. 

The report also details Canon’s social commitments, including respect for human rights, diversity, equity and inclusion, employee development, occupational health and safety, product responsibility, supply chain management, and wider community support activities. 

Governance is another key pillar, with the report outlining the company’s approach to corporate governance, risk management, and information security as part of its wider ESG framework. 

CLEARER REPORTING FOR STAKEHOLDERS  

The 2026 edition has been designed to make Canon’s sustainability progress easier to understand. 

By combining detailed reporting with a concise highlights section, the company aims to provide a clearer overview of the initiatives and progress made over the past year whilst continuing to offer comprehensive insight into its long-term sustainability framework. 

Through the publication, Canon demonstrates how its ESG initiatives contribute to positive environmental and societal outcomes across the entire business value chain, whilst reinforcing its commitment to transparent reporting for stakeholders. 

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ASUENE has acquired UK-based supply chain carbon management platform Secaro, expanding its sustainability capabilities and international footprint as manufacturers face increasing pressure to measure and reduce Scope 3 emissions.

Acquisition Expands Global Supply Chain Sustainability Platform

ASUENE has completed the acquisition of UK-based supply chain carbon management platform Secaro, strengthening its presence in Europe and North America while expanding its capabilities in supply chain emissions management.

The acquisition is ASUENE’s eighth and forms part of the company’s strategy to support manufacturers as regulatory requirements increase around measuring, reporting and reducing Scope 3 emissions.

Secaro provides supply chain sustainability data collection, analytics and supplier decarbonisation programmes for global manufacturers operating in more than 90 countries. Its customer network spans more than 8,000 companies, including manufacturers such as Toyota, Honda and GM.

ASUENE has doubled its customer base over the past year to 56,000 organisations across Japan, Asia, North America and Europe.

Strengthening Scope 3 And Supplier Decarbonisation Capabilities

The acquisition integrates Secaro’s supplier engagement, sustainability data and analytics capabilities into ASUENE’s AI-powered sustainability platform.

The combined offering will enable manufacturers to strengthen supply chain emissions management through enhanced supplier collaboration, product-level CO2 measurement and lifecycle assessment (LCA) capabilities.

The deal also expands ASUENE’s reach across the UK, Europe and North America, where manufacturers are facing increasing requirements to measure and disclose emissions throughout their supply chains.

Supporting Regulatory Compliance

ASUENE said the acquisition strengthens its position in markets where sustainability reporting requirements continue to evolve.

In Europe, large organisations are already reporting sustainability information under the Corporate Sustainability Reporting Directive (CSRD), while additional companies are expected to come into scope from 2028.

In the UK, International Sustainability Standards Board (ISSB)-aligned Sustainability Reporting Standards have been proposed for listed companies from 2027.

Scope 3 emissions typically account for the largest proportion of an organisation’s carbon footprint, making supplier emissions data an increasingly important compliance priority.

Combined Platform Targets Global Manufacturing Supply Chains

Kohei Nishiwada, Founder and Chief Executive Officer of ASUENE, said: “Since signing our business alliance agreement with Secaro in July 2025, the two companies have built deep mutual trust while exploring how far we could take our collaboration. Today, I’m honored that Secaro has made the decision to join the ASUENE group. My heartfelt thanks go to CEO Toby, the leadership team, the shareholders, and everyone who helped bring this together.

Secaro serves the supply chains of some of the world’s largest manufacturers, including super major players in automotive and pharmaceuticals. By joining forces with ASUENE, we’ll deliver even greater value to those customers, connecting supply chain data not only across the US and Europe but globally, including Japan and Asia, strengthening our product-level CO2 and LCA capabilities, and helping companies throughout the supply chain cut both energy costs and CO2 emissions.

Together, we intend to unlock the full power of this combination and become the clear global No. 1 in manufacturing supply chains.”

Partnership Aims to Accelerate Supply Chain Decarbonisation

Toby Newman, Chief Executive Officer of Secaro, said: “Joining ASUENE is an exciting new chapter for Secaro.

From the very beginning, our mission has been to help manufacturers work more effectively with their suppliers to reduce emissions across global supply chains.

By combining Secaro’s deep expertise in supplier engagement with ASUENE’s technology, AI capabilities and international reach, we’ll be able to innovate faster, deliver even greater value to our customers and help accelerate decarbonization at global scale. I’m incredibly excited about what we can achieve together.”

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Jabil has opened a new intelligent logistics hub in Penang, Malaysia, combining artificial intelligence (AI), automation and connected warehouse technologies to improve inventory visibility, traceability and supply chain resilience for global manufacturing customers.

AI And Automation Enhance Supply Chain Operations

Jabil has opened its next-generation Intelligent Logistics Hub in Penang, Malaysia, as part of an investment designed to strengthen supply chain resilience and support growing customer demand for increasingly complex products.

The new facility spans approximately 417,000 square feet at Valdor Industrial Park in Sungai Jawi, Penang, and incorporates AI-enabled technologies to streamline inventory management, improve traceability and tracking, and automate warehouse operations through robotics and connected systems.

The hub is designed to enhance back-end logistics operations while supporting customers facing increasing supply chain volatility, rising logistics costs and growing demand for greater inventory visibility.

HH Yeo, Senior Vice President of Operations at Jabil, said: “Supply chain volatility, rising logistics and operating costs, and the need for greater visibility into inventory are a few challenges faced in today’s advanced manufacturing and electronics supply chains. Coupled with the growth we see in the region, the new facility is a timely investment to enhance our automation capability and help Jabil grow to meet our customers’ future needs.”

Intelligent Logistics Supports End-To-End Material Flow

Leveraging Penang’s strategic location, the logistics hub will support end-to-end material movement across multiple warehouse and production processes.

Its capabilities include kitting, inventory management, automated storage and retrieval systems (ASRS), sequencing, packing, cross-docking, traceability and just-in-time (JIT) delivery to production lines.

The facility has capacity for approximately 52,300 pallet positions and incorporates climate-controlled storage for sensitive materials, including semiconductors and advanced electronic components. It also features high-bay stacker cranes, autonomous robotics and digital twin technology.

At the centre of the operation is an AI and Internet of Things (IoT)-powered Digital Twin platform that provides real-time operational visibility, preventive maintenance capabilities, energy optimisation and end-to-end inventory traceability.

Robotics Improve Warehouse Efficiency and Safety

Warehouse operations are supported by an integrated fleet of approximately 160 autonomous mobile robots (AMRs), forklift mobile robots (FMRs), sky transfer units (STUs), robotic arms and automated scanning systems.

These technologies enable seamless movement of materials and inventory from inbound receipt through to outbound fulfilment while improving operational efficiency and supporting long-term reliability.

The facility has also been designed to FM Global standards to provide a resilient and secure operating environment for high-value materials.

Sustainability Built into Facility Design

Sustainability has been incorporated throughout the hub’s design and operations.

A rooftop solar photovoltaic system is scheduled for installation in September 2026, supporting the facility’s target of achieving GreenRE Bronze certification while contributing to lower-carbon industrial operations.

Supporting Regional Supply Chain Growth

The facility was delivered by PTT Synergy Group Berhad through its wholly owned subsidiary PROTT Sdn. Bhd., which integrated the warehouse’s automation systems, smart logistics technologies and digital twin capabilities.

Dato’ Hj Abd Rahim bin Hj Jaafar, Executive Chairman of PTT Synergy Group Berhad, said: “The Jabil Intelligent Logistics Hub demonstrates how Malaysian innovation and engineering capabilities can deliver world-class industrial infrastructure that meets the evolving needs of global supply chains. This project reflects our commitment to enabling smarter, more resilient, and future-ready industrial ecosystems that support Malaysia’s economic growth and competitiveness.”

Jabil established its first Penang operation in 1995 and now employs more than 14,000 people across eight facilities in Malaysia, supporting industries including automotive and transportation, cloud and data centre infrastructure, defence and aerospace, healthcare, and semiconductor capital equipment.

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Langham Hospitality Group is rolling out practical food waste reduction initiatives across its hotels, with culinary and bar teams transforming surplus ingredients into new menu items that support sustainability while enhancing the guest experience.

Hotels Drive Circular Food Practices Through Ingredient Upcycling

Langham Hospitality Group (LHG) is strengthening its sustainability strategy by introducing circular food waste initiatives across its global hotel portfolio, with properties developing new food and beverage offerings that maximise ingredients and reduce waste.

The programme encourages culinary and bar teams to create dishes and drinks using location-specific surplus ingredients, supporting more responsible kitchen operations while maintaining the quality and experience expected by guests.

Bob van den Oord, CEO of Langham Hospitality Group, said: “Sustainability becomes most meaningful when it is embedded into the everyday decisions we make, including how we source, prepare and serve food. This programme reflects how our teams are translating broader sustainability commitments into practical action, finding thoughtful ways to respect the ingredients we work with whilst enhancing the guest experience.”

Hotels Develop Innovative Solutions to Reduce Food Waste

Hotels across the portfolio are adopting tailored approaches to minimise food waste by repurposing ingredients that would otherwise go unused.

At Cordis, Auckland, peels and pulp generated by the hotel’s fresh orange juicing operation are transformed into a marmalade compote served with breakfast yoghurt. The initiative is expected to divert approximately 390 kg of orange peels and pulp from landfill each year.

The Langham, Jakarta has introduced Signature Homemade Sausage and Smoked Beef Brisket Sausage on the breakfast menu at Tom’s by Tom Aikens, using freshly ground cuts of high-quality meat to maximise ingredient utilisation.

Meanwhile, The Langham, Boston has created a Coastal Catch Burger using fresh cod and salmon trimmed from premium portions served on The Fed’s main menu. The initiative helps utilise up to 220 kg of fresh fish each year that would otherwise be wasted.

Food And Beverage Teams Expand Circular Kitchen Practices

Several properties are extending circular principles beyond the kitchen into their wider food and beverage operations.

At The Langham, Gold Coast, premium Wagyu beef trimmings from Akoya Kitchen are repurposed into Kushiyaki Wagyu Beef Skewers served at Palm Court. Wagyu fat is also rendered in-house to produce Wagyu tallow, increasing overall product utilisation. The hotel’s lobby bar complements these efforts by creating cocktail infusions using near-overripe fruit and excess citrus peel.

Eaton HK has developed two cocktails at its Terrible Baby terrace bar that give food byproducts a second life. The Monkey Business cocktail uses excess citrus peel to infuse Lillet, while the Dong Ling Cha cocktail repurposes coffee grounds from Espresso Martinis to infuse Mutsalem rum.

Sustainability Programme Builds On Wider Environmental Progress

Langham Hospitality Group said teams across its portfolio continue to develop and share new ideas, with additional circular food initiatives expected as the programme evolves.

The food waste initiative follows several sustainability milestones achieved by the group earlier this year. The Langham, Huntington, Pasadena received EarthCheck Master Certification, the highest distinction within the benchmarking and certification programme, recognising 15 years of continuous commitment to sustainability and environmental stewardship.

The property joins five other Langham Hospitality Group hotels that have achieved EarthCheck Master status: Cordis, Auckland; Cordis, Hong Kong; Eaton HK; The Langham, Hong Kong; and The Langham, London.

In total, the group now has 18 EarthCheck-certified properties, reinforcing its broader commitment to embedding sustainability across its global hospitality operations.

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Nestlé is investing CHF 563 million into a new Nescafé factory in Thailand – purpose-built to produce soluble coffee, coffee mixes, and ready-to-drink coffee beverages to meet growing demand in Thailand and support export opportunities.

BOOSTING REGIONAL COFFEE PRODUCTION  

Nestlé has announced a CHF 563 million investment to establish a new Nescafé production facility in Thailand, underlining its long-term commitment to one of its largest coffee markets.  

Valued at around CHF 1 billion, Thailand’s coffee sector represents a key growth opportunity for the company as demand continues to rise across the region. 

The new manufacturing site will include an integrated distribution centre designed to improve logistics, shorten delivery times, and enhance inventory management, enabling the business to respond more quickly to changing market demand. 

“Coffee is Nestlé’s largest business globally, and Thailand is one of our biggest coffee markets,” said Remy Ejel, Executive Vice President and CEO of Nestlé’s Zone Asia, Oceania and Africa (AOA).  

“By investing in Nescafé, one of our most iconic global brands, we are strengthening our ability to meet growing consumer demand and ensuring local brand relevance to deliver consistent, volume-led growth.  

SUPPORTING LOCAL INDUSTRY AND COMMUNITIES  

Situated in Samut Prakan province, the facility will manufacture the full Nescafé portfolio, including soluble coffee, coffee mixes, and ready-to-drink coffee beverages. 

Once operational in the latter half of 2028, the factory will employ more than 500 people whilst creating additional opportunities for Thai farmers and suppliers through the sourcing of locally produced ingredients and raw materials valued at more than CHF 100 million annually. Nestlé expects the investment to generate wider economic benefits for the surrounding communities. 

The site will incorporate advanced manufacturing technologies, automation, and artificial intelligence-enabled systems to improve operational performance, product quality, and sustainability. 

Amongst the technologies being introduced is Nestlé’s next-generation coffee extraction and aroma recovery system, designed to preserve the aromas released during roasting and enhance the freshness of its coffee products. Robotics and automated systems will also be deployed across packing, transportation, and inventory management processes to improve efficiency throughout the facility. 

REINFORCING THAILAND’S COFFEE SECTOR  

The investment has received support from Thailand’s Board of Investment, reflecting its alignment with the country’s Bio-Circular Green (BCG) economy strategy. 

Nestlé has operated in Thailand for more than 130 years and remains a significant purchaser of locally grown Robusta coffee. The new production facility builds on more than four decades of support for the country’s coffee industry, including the provision of coffee plantlets and initiatives promoting regenerative agriculture and climate resilience. These programmes aim to strengthen coffee quality, improve farmers’ livelihoods, and support environmental protection whilst reinforcing the company’s long-term commitment to Thailand’s agricultural sector. 

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Manufacturers continued to increase safety stock in June as shortages of critical inputs and rising order backlogs kept global supply chains under pressure, according to the latest GEP Global Supply Chain Volatility Index. Procurement teams in North America and Asia maintained strong purchasing activity, while European manufacturers reduced buying volumes.

Supply chain pressures remain elevated

Global supply chain pressures remained elevated in June despite lower oil prices and easing transportation costs, according to the latest GEP Global Supply Chain Volatility Index.

The monthly index, based on a survey of 27,000 businesses, found that uncertainty surrounding the US-Iran ceasefire in the Strait of Hormuz continued to influence procurement and supply chain activity.

Manufacturers reported the highest level of order backlogs caused by shortages of critical inputs since late 2022, indicating that supply chain bottlenecks are likely to persist into at least the third quarter.

Procurement teams increase buffer inventories

Manufacturers continued building buffer inventories during June to reduce the risk of further disruption.

Reports of safety stockpiling increased again and remained at their highest level since January 2023, while demand for raw materials, commodities and intermediate goods remained strong across North America and Asia.

In contrast, European manufacturers reduced input purchasing during the month.

“The rise in stockpiling and persistent order backlogs point to one clear conclusion: businesses still don’t trust the global trading environment to remain stable,” said John Piatek, Vice President, Consulting, GEP.

“Despite lower oil prices and easing transportation costs, companies continue buying ahead because they expect further disruption. While this is encouraging for the global economy in the near term, it also shows manufacturers remain very cautious and are planning for more disruption in international trade.”

Regional supply chain trends

• The GEP Global Supply Chain Volatility Index remained above zero across all major regions in June, indicating that supply chain capacity continued to be stretched.
• Asia recorded an index reading of 1.95, down from 2.96 in May and its lowest level since March. GEP attributed the decline primarily to easing transportation cost inflation.
• North America’s index declined to 1.17 from 1.69, also a three-month low. Despite the easing in overall supply chain pressure, manufacturers significantly increased purchasing activity in response to shortages of critical items and growing order backlogs.
• Europe’s index fell to 1.13 from 1.43. Manufacturers reduced purchasing volumes to the greatest extent since the outbreak of the Middle East war, although inventory levels continued to increase.
• The UK index declined to 1.05 from 1.34, its lowest level since April, as manufacturers reduced activity.

Purchasing activity remains resilient

Demand for production inputs remained strong globally during June, driven primarily by North America and Asia.

In the United States, manufacturers increased purchases of raw materials, commodities and intermediate goods at the fastest rate since April 2022. Purchasing activity also accelerated in Japan, China and Vietnam.

The report found that European manufacturers moved in the opposite direction, reducing purchasing volumes during the month.

Inventory strategies and material shortages

Inventory growth continued as procurement teams sought to protect operations against future supply disruptions and price increases.

Reports of stockpiled materials increasing due to supply or pricing concerns reached their highest level since January 2023, extending the sustained rise seen since the Middle East war began.

Although the indicator measuring material shortages declined during June, suggesting some improvement in global supply availability, shortages remained elevated compared with historical averages. Manufacturers also reported that work backlogs continued to rise because of inadequate availability of critical inputs.

Transportation and labour conditions

Transportation costs declined during June following a sharp fall in global oil prices. However, GEP said transportation costs remained high by historical standards and, excluding April and May, were at their highest level since June 2022.

Labour shortages were less of a constraint on manufacturing capacity. Reports of production backlogs caused by workforce shortages remained broadly in line with historical averages.

What is the GEP Global Supply Chain Volatility Index

The GEP Global Supply Chain Volatility Index is produced by S&P Global and GEP. It is derived from S&P Global’s PMI surveys, sent to companies in over 40 countries, totalling around 27,000 companies. The headline figure is a weighted sum of six sub-indices derived from PMI data, PMI Comments Trackers and PMI Commodity Price & Supply Indicators compiled by S&P Global.

• A value above 0 indicates that supply chain capacity is being stretched and supply chain volatility is increasing. The further above 0, the greater the extent to which capacity is being stretched.
• A value below 0 indicates that supply chain capacity is being underutilised, reducing supply chain volatility. The further below 0, the greater the extent to which capacity is being underutilised.

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Tata Consultancy Services (TCS) has signed a multi-million, multi-year agreement with ABB to modernise the company’s global network operations using artificial intelligence (AI), supporting secure, standardised infrastructure and end-to-end network management as part of ABB’s Future Network Model programme.

AI to underpin ABB’s global network operations

Tata Consultancy Services (TCS) has expanded its long-standing partnership with ABB through a multi-million, multi-year agreement to transform the company’s global network operations with artificial intelligence (AI).

The latest agreement marks the next phase of a 20-year relationship between the two companies. Under the deal, TCS will extend its role from managing infrastructure and applications to delivering end-to-end global network operations through an integrated network-as-a-service model.

The company said the engagement is designed to improve user experience, increase operational efficiency, strengthen security and compliance, scale service delivery, and support ABB’s next generation of digital operations.

Future Network Model drives infrastructure modernisation

The agreement centres on ABB’s Future Network Model programme, an enterprise-wide initiative to create a standardised and centrally managed global digital infrastructure.

As a strategic programme partner, TCS will design, integrate and operate ABB’s global network ecosystem as a secure, AI-driven service while orchestrating the company’s multi-vendor environment to support standardised global operations.

The programme will replace fragmented network environments with a secure, scalable and service-based architecture supported by a centralised control framework.

Key elements include service integration and management (SIAM), a global network operations centre, advanced security capabilities, and modernised local area network (LAN), wide area network (WAN) and software-defined WAN infrastructure. TCS will also provide end-to-end monitoring and orchestration across ABB’s network services.

Focus on resilience, security and operational efficiency

Alec Joannou, Group CIO, ABB, said, “The Future Network Model represents an important milestone in reinforcing the digital foundation of ABB’s global operations. As our business evolves, it is critical to have an ecosystem that is resilient, secure, and aligned with long-term transformation goals.

Our association with TCS reflects a shared focus on delivery excellence, continuous enhancement, and building capabilities that can support our strategic priorities.”

The AI-enabled operating model is intended to strengthen network reliability, improve security, enhance the user experience and support enterprise-scale operations.

Anupam Singhal, President, Manufacturing, TCS, said: “For over two decades, TCS has had the privilege of supporting ABB’s transformation journey, and the Future Network Model marks the next chapter in this partnership. With AI embedded into the network operations model, supported by secure digital infrastructure and our deep domain expertise, we are bringing our ‘infrastructure to intelligence’ approach to build a resilient, intelligent network backbone.

Through this engagement, we will enable network systems that can sense, adapt, and improve continuously, while strengthening reliability, security, user experience, and scale as ABB continues to advance as a future-ready enterprise.”

Two decades of technology collaboration

The new agreement builds on a 20-year relationship between the two companies, during which TCS has supported several technology transformation initiatives for ABB.

Previous programmes have included the consolidation of multiple enterprise resource planning (ERP) systems into a unified SAP platform, as well as cloud transformation and adoption initiatives.

TCS said the latest agreement continues the companies’ long-term collaboration as ABB advances its digital transformation strategy through modernised network operations and AI-enabled infrastructure.

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Lotus Technology Inc. announces the release of its 2025 Sustainability Report, showcasing significant strides in governance, product innovation, and sustainable practices whilst reaffirming its commitment to a greener future in luxury mobility. Dive into the highlights of its ongoing journey towards environmental responsibility and transparency.

DRIVING TOWARDS A GREENER FUTURE

Nasdaq-listed company, Lotus Technology Inc. (Lotus Tech), has released its third-party-assured 2025 Sustainability Report, aligned with international standards.

The company enhanced its governance framework, obtained global information security certifications, and upheld stringent anti-corruption compliance. It expanded its lineup of electrified luxury vehicles, used eco-friendly materials, and achieved zero recalls.

Additionally, the company promoted green manufacturing, increased its use of renewable energy, and advanced sustainable supply chain practices.

Lotus Tech, a leading global provider of intelligent and luxury mobility, emphasised its ongoing efforts to integrate sustainability throughout its global operations.

COMMITMENT TO SUSTAINABILITY

Key highlights from the report include strengthened governance and ethical compliance at Lotus Tech. The company has improved its governance framework and has further integrated compliance and ethical standards throughout its operations.

The company has also achieved international certifications in information security and privacy protection whilst maintaining stringent anti-corruption and fair competition practices globally.

In the area of sustainable product innovation and quality leadership, Lotus Tech has expanded its intelligent luxury product portfolio to include advanced electrified and hybrid solutions.

These products now feature eco-friendly materials and state-of-the-art safety technologies. Throughout the reporting period, the company upheld its industry-leading quality standards, with no recalls for its lifestyle electric vehicle (EV) models.

Moreover, Lotus Tech has made significant strides in its green operations and value chain collaboration, enhancing its climate strategy through green manufacturing practices, a greater reliance on renewable energy, and nature-positive initiatives.

NAVIGATING THE LANDSCAPE

Lotus Tech has made significant strides in enhancing the sustainability of its supply chain, whilst simultaneously fostering a culture of well-being among employees and actively engaging with local communities.

The company proudly operates across diverse markets, including the UK, the European Union (EU), and China, with a strong commitment to excellence and a focus on producing luxury EVs.

Its efforts are underpinned by cutting-edge R&D focused on next-generation automotive technologies, emphasising innovations in electrification, digitalisation, and more, to pave the way for a sustainable and advanced future in mobility.

The post Lotus Technology Inc. Publishes 2025 Sustainability Report, Showcasing Advancements in Governance, Product Innovation, and the Value Chain appeared first on APAC Outlook Magazine.

Chinese supply chain leaders are increasing supplier diversification, investing in artificial intelligence (AI) and expanding into new markets as they respond to a changing global trade environment, according to new research from DP World’s Global Trade Observatory.

What is DP World’s Global Trade Observatory?

Chinese companies are placing greater emphasis on supply chain resilience, digital transformation and market diversification as they prepare for future growth, according to new research from DP World’s Global Trade Observatory.

The international survey, which gathered responses from 292 supply chain and logistics executives in China, found businesses are looking beyond cost and scale to strengthen sourcing strategies, improve operational flexibility and access new markets amid continued uncertainty in global trade.

Supplier Diversification Leads Supply Chain Strategy

Increasing the number of suppliers to diversify sourcing emerged as the most common strategic priority for 2026, cited by 58 per cent of respondents.

The survey also found that 38 per cent of businesses plan to increase near-shoring operations, while 36 per cent intend to adopt friend-shoring strategies. A further 32 per cent said they plan to increase inventory levels.

According to the findings, companies are building more resilient supply chains by expanding supplier networks, increasing route options and creating greater flexibility to respond to changing trade conditions, costs and customer demand.

Resilience Driven by Multiple Factors

The research suggests that these strategic changes are being driven by more than risk mitigation alone.

Respondents identified sustainability and environmental, social and governance (ESG) requirements, new technologies, greater operational agility and resilience, local trade policies and incentives, tariff responses and new market entry as the principal factors influencing supply chain decisions.

The findings indicate that resilience is increasingly being viewed as a long-term competitive capability rather than solely a response to market disruption.

AI and Digitalisation Top Growth Priorities

Technology investment emerged as the leading driver of future business growth.

Half of respondents identified deploying artificial intelligence (AI) as a top priority over the next one to three years, while 44 per cent highlighted wider digitalisation initiatives.

Growing demand from new markets and consumers was cited by 43 per cent of respondents, while 34 per cent identified new value chains as a key growth opportunity.

According to the report, these priorities reflect a growing focus on digital capabilities to improve operational efficiency and support future supply chain development.

Connecting Global Supply Chains

Glen Hilton, Chief Executive Officer and Managing Director, Asia Pacific, DP World, said: “China’s next trade advantage will come from resilience and adaptability, not just scale. Chinese companies are already diversifying suppliers, entering new corridors and investing in digital systems and AI. But that ambition creates most value when companies can see their cargo, switch between routes, clear borders, manage documentation and fulfil reliably across markets. What customers increasingly need is not a disconnected set of providers.

They need an operating partner that can connect the physical and digital layers of trade – ports, terminals, freight forwarding, customs, warehousing, systems and last-mile execution. DP World is built to help make that complexity work at an international level, so businesses can keep moving even as routes, rules and demand change.”

Supporting Cross-Border Trade

The report notes that DP World has seen these trends reflected in its work with customers in China across sectors including e-commerce, automotive, fashion and luxury, food and beverage, healthcare and technology.

According to the company, its operations in China combine freight forwarding, contract logistics, warehousing, customs and documentation support, ports and terminals, and technology-enabled supply chain visibility to help customers improve operational control and execute cross-border trade more efficiently.

The post DP World Survey : Chinese Businesses are Increasing Supply Chain Resilience, AI, and Market Diversification appeared first on APAC Outlook Magazine.

Supporting the global build-out of AI infrastructure, Applied Materials, Inc. has announced its expanded USD$500 million Tampines Campus in Singapore to further strengthen the company’s global footprint.

INNOVATIVE MANUFACTURING OPERATIONS

Applied Materials, Inc. (Applied Materials) – a leader in materials engineering solutions for the semiconductor industry – is expanding its manufacturing and R&D operations at its Tampines Campus in Singapore.

This campus will more than double the company’s advanced cleanroom capacity within the country and ultimately strengthen Applied Materials’ global manufacturing footprint, which spans locations in the US, Europe, Taiwan, and other regions. Specifically, the Tampines Campus’ priority is to serve chipmakers that are expanding production to meet the increasing demand for artificial intelligence (AI).

“AI is transforming every industry, creating unprecedented demand for advanced semiconductors. Our expanded manufacturing operations in Singapore strengthen Applied Materials’ ability to deliver semiconductor manufacturing equipment that chipmakers need to bring next-generation chips to market faster,” notes Gary Dickerson, President and CEO of Applied Materials.

Through this expansion, the company is able to take a major step forward in its Singapore 2030 plan, which comprises strengthening global manufacturing and R&D capabilities, broadening technology ecosystem partnerships, and promoting local workforce development, such as adding approximately 1,000 new local jobs.

“Singapore has been a strategic hub of Applied Materials’ global operations for 35 years, and our expansion here is a testament to the world-class semiconductor ecosystem, infrastructure, and talent this country has built. Our new AI-enabled automation-ready facility represents the next era of advanced manufacturing optimised for speed, precision, and quality,” explains KC Ong, Group Vice President of Worldwide Manufacturing at Applied Materials.

EXPANDING GLOBAL R&D

By deploying autonomous mobile robots, autonomous assembly and testing systems, and AI-assisted quality inspection, the Tampines Campus is setting a benchmark for sustainable, intelligent semiconductor equipment production.

“Applied Materials’ use of advanced automation and AI technologies in the new facility will accelerate product development and push the envelope of advanced manufacturing capabilities in Singapore. We welcome this expansion that will strengthen our vibrant semiconductor ecosystem, creating quality jobs and opportunities for Singaporeans,” says Png Cheong Boon, Chairman of Singapore’s Economic Development Board.

The campus has been designed to adhere to the Building and Construction Authority (BCA) Green Mark Platinum Certification, which is the highest tier of Singapore’s green building rating system. This is in addition to the campus’s other features, including an on-site solar panel system, LED lighting, low-carbon concrete construction, a closed-loop water reclamation system for zero water waste, and a smart building management system to monitor in real-time energy and water consumption.

In order to expand its global R&D and manufacturing footprint, Applied Materials has worked over the past few years to nearly double its global manufacturing capacity. The company has also invested over USD$400 million in its US equipment manufacturing infrastructure over the course of the past five years, with its new USD$5 billion EPEC Center in Silicon Valley representing the largest-ever US investment in advanced semiconductor equipment R&D.

Ultimately, Applied Materials’ new state-of-the-art Tampines Campus is designed to drive resilience and scalability, setting a landmark precedent for sustainable, intelligent semiconductor equipment production.

The post Applied Materials Inc. Expands Its Singapore Manufacturing and R&D Operations appeared first on APAC Outlook Magazine.

Amazon will invest more than $48 billion in India by 2030, combining AI infrastructure, cloud capacity and logistics expansion in one of the world’s fastest-growing supply chain markets as the country strengthens its role as a global manufacturing and export hub.

Amazon scales AI infrastructure and logistics network across India

Amazon has announced plans to invest more than $48 billion in India between 2026 and 2030, significantly expanding its AI, cloud and logistics infrastructure as it strengthens the country’s position as a strategic supply chain and manufacturing hub.

The latest commitment includes an additional $13 billion to expand AWS AI and cloud infrastructure, building on the $35 billion investment announced in 2025. Cumulative investment in India between 2010 and 2030 will now exceed $88 billion.

The announcement follows a meeting between Amazon CEO Andy Jassy and Indian Prime Minister Narendra Modi in New Delhi, where the company reaffirmed its long-term commitment to supporting India’s digital economy, exports and industrial growth.

Investment targets AI infrastructure and supply chain capacity

Alongside expanding AWS data centre capacity in Mumbai and Hyderabad, Amazon will continue investing heavily in its physical operations network to support growing ecommerce and business demand across the country.

The company plans to open more than 20 new fulfilment centres and over 100 last-mile delivery stations during 2026, extending logistics coverage into India’s rapidly growing Tier 3 and Tier 4 cities while improving delivery speed and network resilience.

The expanded cloud infrastructure will provide businesses, manufacturers, startups and public sector organisations with greater access to AI services, custom silicon, cloud computing and developer tools designed to accelerate digital transformation.

Supporting India’s manufacturing and export ambitions

Amazon says its investment strategy aligns closely with India’s ambitions to strengthen domestic manufacturing, increase exports and build AI capabilities across industry.

Since entering India, the company has digitised more than 12 million small businesses, enabled over $20 billion in ecommerce exports, trained 10 million people in cloud skills, and supported 2.8 million jobs across its operations and wider ecosystem.

A Vision for India

Looking ahead to 2030, Amazon aims to support 3.8 million jobs, enable $80 billion in cumulative exports, help 15 million small businesses adopt AI technologies and provide AI education to four million government school students.

Amazon CEO Andy Jassy said:

“As we grow Amazon in India, our business priorities align with India’s priorities of democratising access to AI, digitizing small businesses, creating jobs, and enabling exports, and we are investing over $48 billion in the coming five years to meet the strong demand across our business in India and to help India achieve these priorities.

We are inspired by Prime Minister Modi’s vision of a Viksit and Atmanirbhar Bharat, and we are committed to being a long-term partner in India’s growth story.”

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Danone is expanding its footprint in Asia Pacific through the acquisition of MADE Group and full ownership of its Australian dairy venture, reinforcing its healthy nutrition ambitions.

Danone has announced two strategic acquisitions designed to strengthen its position in the fast-growing healthy nutrition market across the Asia-Pacific (APAC) region.

The company has entered into definitive agreements to acquire Australia-based MADE Group, whilst also securing the remaining 49 percent stake in its existing fresh dairy joint venture with Saputo Dairy Australia.

Together, the transactions are expected to create new opportunities for profitable growth across APAC, whilst enhancing Danone’s ability to meet increasing consumer demand for health-focused nutrition products.

EXPANDING A HEALTH-FOCUSED PORTFOLIO

The acquisition of MADE Group brings a rapidly growing portfolio of brands that are closely aligned with some of the strongest consumer trends in food and nutrition.

Headquartered in Melbourne, MADE has built a reputation for innovation and marketing excellence, supported by a comprehensive route-to-market strategy and supply chain network. Its portfolio includes high-protein ready-to-drink products, gut-health yoghurts, and coconut-based offerings, all categories benefiting from increasing consumer interest in healthier lifestyles.

The company has established a strong presence across Australia, New Zealand, and Southeast Asia, consistently delivering double-digit growth alongside attractive margins.

With sales exceeding €300 million for the fiscal year ending June 2026, MADE is expected to become a meaningful contributor to Danone’s Essential Dairy and Plant-Based (EDP) business in APAC. The acquisition is also expected to be accretive to both Danone’s operating margin and earnings per share from the first year following completion.

BUILDING ON AN ESTABLISHED AUSTRALIAN PRESENCE

Alongside the MADE acquisition, Danone will acquire the remaining stake in its fresh dairy joint venture with Saputo Dairy Australia.

The partnership has enabled Danone to establish a strong position in Australia’s functional yoghurt category, supported by flagship brands including YoPRO, Activia, and Ultimate.

By taking full ownership of the business, Danone aims to increase operational flexibility and further strengthen its position within the Australian market.

Both transactions remain subject to customary closing conditions and regulatory approvals, with completion expected during the second half of 2026.

ADVANCING THE RENEW STRATEGY

Commenting on the announcement, Danone’s CEO Antoine de Saint-Affrique described the transactions as another step forward in the company’s Renew Strategy.

He highlighted MADE’s strong portfolio of healthy nutritional products, particularly within the gut health and protein segments, as well as its proven ability to deliver rapid and profitable growth.

The acquisitions also reflect Danone’s broader approach of combining organic growth with targeted investments that enhance its ability to serve growing demand for healthy nutrition solutions.

ACCELERATING REGIONAL OPPORTUNITIES

For MADE Group, the agreement marks the beginning of a new phase of growth.

CEO Amanda Butler said the company had built a portfolio of trusted brands and innovative products focused on delivering improvements in nutrition, taste, and quality.

She added that Danone’s shared commitment to health and innovation would provide access to new infrastructure, capabilities, and research and development expertise.

The combination is expected to help accelerate MADE’s expansion across the region, whilst creating additional opportunities to strengthen its position within the healthy nutrition market.

As consumer demand for protein-rich, functional, and health-oriented food products continues to rise across APAC, the transaction positions both companies to capitalise on some of the region’s most attractive long-term growth trends.

The post Danone and MADE Group Strengthen APAC Nutrition Growth appeared first on APAC Outlook Magazine.

Adani Group and Jabil plan to establish a vertically integrated AI infrastructure manufacturing platform in India, targeting global demand for AI-ready data centre hardware while strengthening supply chain resilience and advancing India’s ambitions as a major technology manufacturing hub.

India targets a larger role in the global AI supply chain

As the race to build AI infrastructure accelerates, attention is increasingly shifting beyond chip design and cloud platforms to the manufacturing ecosystems capable of delivering the physical hardware that powers artificial intelligence.

Adani Group and Jabil have announced plans to form a strategic alliance to establish what they describe as a world-class, vertically integrated AI and data centre infrastructure manufacturing platform in India.

The proposed partnership combines Adani’s infrastructure footprint and energy capabilities with Jabil’s advanced manufacturing expertise to address rising domestic and international demand for AI-ready data centre equipment.

If realised, the initiative could position India as a significant export hub for AI infrastructure at a time when organisations are seeking to diversify supply chains and reduce concentration risks.

Building an end-to-end AI infrastructure manufacturing ecosystem

The alliance aims to go beyond assembling individual components by creating a comprehensive manufacturing ecosystem covering multiple layers of data centre infrastructure.

The platform is expected to focus on three core areas.

Giga-scale AI rack manufacturing

The companies plan to establish multi-gigawatt capacity for high-density AI rack manufacturing in India.

The facilities would support the production and integration of:

• Next-generation liquid-cooled AI racks
• Servers
• Storage systems
• Networking systems
• Surface Mount Technology (SMT) assemblies
• Complex box-build processes

The intended customer base includes hyperscale cloud providers, colocation operators and enterprise data centre operators.

Beyond the rack: white space and grey space infrastructure

The alliance also intends to manufacture critical supporting infrastructure required inside data centres.

• Power Distribution Units (PDUs);
• Coolant Distribution Units (CDUs);
• Transformers;
• Switchgears;
• Bus bars; and
• Advanced thermal management systems.

These capabilities are designed to provide customers with a single-source, design-to-deployment solution.

Transitioning toward execution

While the collaboration remains subject to definitive agreements, both organisations said they are currently working on the operational frameworks and documentation needed to advance the manufacturing roadmap.

AI demand reshapes manufacturing priorities

The announcement comes amid unprecedented investment in AI infrastructure globally, as the companies estimate the initiative addresses a market opportunity exceeding US$3 trillion over the next seven years, driven by structural investment in AI computing capacity.

India’s own market is evolving rapidly and industry forecasts project India’s data centre capacity could reach between 5GW and 8GW by 2030, fuelled by:

• Growing AI adoption
• Expansion of cloud services
• Data localisation requirements
• Increased investment from global hyperscalers

More than US$50 billion in planned spending across India’s data centre, cloud and AI ecosystems is also expected to support growth.

Linking energy and compute

The initiative complements Adani Group’s previously announced commitment to develop 5GW of green-energy-powered, hyperscale AI-ready data centres by 2035.

For Adani Chairman Gautam Adani, the convergence of energy infrastructure and computing capability represents a defining economic shift.

“The world is entering an Intelligence Revolution more profound than any previous Industrial Revolution. Nations that master the symmetry between energy and compute will shape the next decade. India is uniquely positioned to lead. Our alliance with Jabil represents a decisive step in building India’s complete AI infrastructure stack — from green power generation to world-class hardware manufacturing. Together, we will ensure India is not merely a consumer in the AI age, but a creator, builder, and exporter of intelligence.”

Jabil expands its role in AI infrastructure manufacturing

For Jabil, the partnership extends its growing presence in AI-related manufacturing.

The company reported US$29.8 billion in revenue for fiscal year 2025 and has expanded its capabilities through investments and acquisitions, including Hanley Energy Group and Mikros Technologies.

Jabil CEO Mike Dastoor said the collaboration aligns with the company’s objective of supporting customers throughout the AI product lifecycle.

“This strategic collaboration with Adani Group is another step forward in our efforts to create long-term value for customers throughout the AI ecosystem by offering scalable solutions across the product lifecycle. By combining Jabil’s more than sixty years of engineering expertise and advanced manufacturing capabilities with Adani’s formidable infrastructure and energy platform, we can expect to execute down to the rack level for hyperscalers and enterprises here in India and across the globe. As India becomes one of the world’s fastest-growing AI markets, the country’s skilled workforce and supportive business environment make it an attractive destination for this collaboration.”

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