Improving productivity is one of the most important goals, pursued by economic units, in all the sectors and industries. The key objective is to increase revenues, enhance financial performance and maximize profitability. In general, the Iraqi economic units suffer from weakness and low productivity. Such problems can be overcome by implementing a variety of methods and techniques so that the productivity can be increased while the efficiency and quality can be maximum in the production processes. Several ways exist through which the economic units can become highly energy-efficient and mitigate its carbon emissions. In this background, the aim of the current study is to analyze the theoretical concept of productivity, the factors that affect productivity, its impact upon the overall performance of the economic units and to explore the best practices and methods that are available to improve the productivity in Iraqi industrial sector. The current study tested four hypotheses that focused on increasing productivity, reducing waste, improving profitability, adding competitive advantage to the organization and promoting environmental sustainability. From the study results, it can be concluded that the green process re-engineering is an effective tool to improve productivity and enhance the overall performance of the economic units, including the environmental performance. Further, this process makes use of modern technology, helps in the transition of using environmentfriendly materials and the promotion of awareness and training.