Using Artificial Intelligence (AI) technologies in Market Environmentalism
Using AI to lower Carbon Emissions and to lower Operating Costs for greater Net Profit - all at the same time
We take an approach to environmentalism called Market Environmentalism - an approach based upon the principles of the Austrian School of Economics. See below on the principles of this approach. This approach emphasizes leveraging technology and innovation, aligned with the positives of human nature, not forcing human nature through an agenda-based approach. We believe an approach based on Market Environmentalism makes sense financially, economically and environmentally.
In this regard, an approach leveraging emerging and innovative Artificial Intelligence (AI) technologies can be used by virtually any company or organization to lower carbon emissions, and at the same time save the company money through lower operating costs and therefore higher net profit. Making sense financially, economically and environmentally.
So how can this be done? Here are the basics of the approach below. CedarOwl is a consortium of consultants who can help your company through consulting services by applying these innovative AI technologies.
Steps
The first step is to use process discovery and mining AI-based tools. Here is a list of some good tools in this space:
Workfellow
UiPath
Celonis
Fujitsu
Nintex
SAP Signavio
Avo Discover
Microsoft Minit
Appian
Fluxicon Disco
Mehrwerk ProcessMining (MPM)
QPR
Buiness Optix
Apromore
DCR Process Mining
iGrafx
Inverbis
Here is an example, from UiPath, of how process discovery and mining gives the detail on a company’s business process:
The second step is to do an alignment of the carbon emissions at each point in time mapped to the business processes.
The above chart indicates the level of carbon emissions at different points in a time period of a business process, where the horizontal access would correspond to the process step number in a time sequenced process. You can see that in the above example the process steps happening up to process step 4 are correlating to higher carbon emissions.
The carbon emissions time chart can be derived from either real-time carbon emissions detectors or a translation of input from energy and electricity bills or related documentation.
The third step is to assess where in the time sequence of the business process that corresponds to relatively high levels of carbon emissions.
The fourth step is to identify, design, develop and implement appropriate solutions based on software, robotics process automation (RPA), or AI-based solutions to help optimize and streamline the business process at that time sequence where carbon emissions are relatively high. This means optimizing and streamlining the business process to make it faster or automated or optimized through business process transformation techniques. Essentially a set of consulting services solutions. The end result is an optimized business process resulting in lower carbon emissions with overall operating costs savings.
Some of the optimizations and enhancements can be done by setting up a Robotics Process Automation (RPA) bot which is essentially a robot-like software module which efficiently emulates a process or a physical machine.
Other optimizations and enhancements can be done by leveraging from a variety of AI applications which efficiently provide a set of processes formulating a functionality.
There are several different AI applications for specific industries that can be leveraged to help in the business process optimization implementation. Here are a few:
The last step is to assess the progress. Compare an initial pre-work baseline of carbon emissions levels and overall operating costs with post-work levels after implementation of the above steps. This progress assessment can measure the carbon emissions reductions and the overall cost savings.
Study and Example
Digital technology can cut global emissions by 15%, and AI could cut emissions even more. Link here to the analysis.
Here is also a real world case study example:
Case Study Example:
Company - Global Pharma company
Results - 19,000 tonnes of reduced CO2 and 50% less discarded products in the global logistics chain annually, and lower costs overall
Business Process Optimization - Cross-functional process to transition from air freight to transport by freighter, also included creating models to measure the environmental impact in relation to tied up capital and cost savings.
Next Steps
If this is of interest to you or your company, our group of consultants can help you and your company strategize an approach for your company that makes sense - we can develop a proposal for consideration to your company to execute on all or part of the above steps as a consulting project. Our consultants have extensive experience through a variety of big consulting firms and multinational corporations - KPMG, Cap Gemini, Ernst & Young, IBM, CGI, BearingPoint, Morgan Stanley, Schlumberger and Manulife.
Please contact us for further information at info@cedarportfolio.com.
Principles of Market Environmentalism
Market Environmentalism is based on the principles of the Austrian School of Economics. There are four principles to Market Environmentalism. In the coming weeks we will be featuring relevant examples of innovations, entities and practices that support each principle. Let’s look at each of these below:
Principle 1: Market Economy
Economic and environmental success are not mutually exclusive. While many claim the “market approach” has been tried, it is a “crony approach” that has often prevailed, marked by fossil fuel subsidies, energy monopolies, and regulatory capture. The freer an economy, the better its environmental outcomes. As economies grow richer, they become more efficient and environmentally conscious, which leads to a gradual decoupling of economic growth and pollution. Only the market economy’s dynamic nature incentivizes entrepreneurs to do “more with less” and to create innovations that limit our ecological footprint. Free trade is crucial for both innovation and cooperation between people around the world, to jointly tackle environmental challenges.
Source: The International Declaration on Market Environmentalism
Principle 2: Private Property Rights
Property rights provide the incentives for both environmental sustainability and accountability. That which no one owns, no one cares for. In contrast, ownership stimulates stewardship and responsibility. Strong property rights also include the ability to trade resources, which allows for markets to reallocate natural resources for conservation purposes.
Source: The International Declaration on Market Environmentalism
Principle 3: Decentralization
Many environmental challenges are communal in nature, and local communities are better placed than governments to manage their shared resources. Where central planners lack the on-the-ground information, communities benefit from the dynamic, decentralized knowledge necessary to implement effective conservation strategies. Decentralizing power from government bureaucracies to local communities fosters closer cooperation, resource management, and environmental accountability.
Source: The International Declaration on Market Environmentalism
Principle 4: Optimism and Innovation
Nihilism, degrowth, and misanthropy are the enemies of the environment. We must embrace optimism and the power of innovation to achieve real change. Humans are not a plague on the planet but rather the “ultimate resource,” capable of bringing forth innovative ideas and solutions to protect our environment. Environmental challenges can be solved through innovation, technological progress, and entrepreneurship—while rejecting alarmist and unscientific approaches.
Source: The International Declaration on Market Environmentalism