COVID-19, 3D printing and the digital supply chain reckoning
Heather Clancy
Thu, 05/14/2020 – 03:28

Proponents of 3D printing technology and digital manufacturing solutions have been seeking their breakthrough moment for years. It took mere weeks to showcase their potential as enablers of flexible supply chains — capable of decentralizing worldwide production and responding to violent, unforeseen disruption.

Every day, there is news of some inspirational pivot that points toward the future possibilities for creating far more sustainable supply chains. The most vivid illustration, of course, is the literally hundreds of companies diverting at least some portion of their production capacity to creating urgently needed supplies for the medical community. It’s part altruism, part capitalism.

Just a few examples: 3D printing provider HP Inc. and its network of customers and partners has so far “printed” more than 1.5 million parts for front-line healthcare workers — components for face shields and PAPR hoods. Digital manufacturing specialist Fictiv has mobilized its network to produce batches of 10,000 shields daily with lead times of as little as 24 hours. 

Another player, Carbon, teamed up with Resolution Medical and Beth Israel Deaconess Medical Center in Boston to design and start producing nasopharyngeal swabs for COVID-19 in just three weeks. The partnership is producing hundreds of thousands of swabs every week using Carbon’s M2 printers. Markforged, which makes metal and carbon fiber 3D printers, is part of a similar collaboration driven by several hospitals and research institutions in San Diego.

With supply chains experiencing such significant disruption right now, we could see trends in different sectors toward decentralization and localization …

“With supply chains experiencing such significant disruption right now, we could see trends in different sectors toward decentralization and localization, including in the way products are designed and made to rely less on centralized production and mass production,” noted Carbon CEO Ellen Kullman, in response to questions I sent her for this article.

A similar sentiment was shared by Ramon Pastor, interim president of 3D printing and digital manufacturing at HP, also via email: “Many companies look to digital manufacturing service providers to help speed development of new products, shorten time to market, create leaner supply chains and reduce their carbon footprint.”

The global 3D printing market was worth about $12 billion in 2019, with a compound annual growth rate of 14 percent predicted from 2020 to 2027.

One of HP’s high-profile customers is Volkswagen, which is using its technology in the design of electric vehicles. VW aims to produce more than 22 million EVs worldwide by 2028.

HP 3D printers

The pandemic is proving to be what Sean Manzanares, senior manager of business strategy and marketing for Autodesk, describes as an “unfortunate catalyst” that is accelerating corporate evaluations of alternative, more sustainable production methods. (To sate that interest, the software company is offering free access to the commercial versions of its cloud-hosted design applications through June 30.)

Autodesk is putting considerable muscle behind demonstrative facilities that help companies explore the potential of 3D printing and localized manufacturing, such as the Generative Design Field Lab that is part of the 100,000-square-foot MxD innovation center in Chicago. Autodesk doesn’t make the hardware; it has added artificial intelligence to many of its applications to make “push-button” manufacturing simpler.

One company exploring how these technologies could support its sustainability initiatives is IKEA, which has been examining how it might use reclaimed furniture scraps to create new products that combine wood and an emerging form of “sustainable power” from Arkema, which makes resins for 3D printers, Manzanares said.

The first thing you have to do is show people that they have options.

Dave Evans, founder and CEO of Fictiv and a former Ford engineer, said the pandemic has helped underscore the notion that digital manufacturing networks — ones that allow organizations to be more agile when it comes to sourcing — will be key to ensuring resilience in the long term, as disruptions brought on by climate change become more frequent. The seven-year-old company just logged its best first quarter.

One ongoing dialogue within Fictiv is the role of design in moving toward a more circular, agile economy — one in which products can be repaired and serviced far more easily. The company’s gift to employees last Christmas: the 2002 book “Cradle to Cradle,” which it hopes will spur innovation from the bottom up.

“The first thing you have to do is show people that they have options,” Evans observed. “If you can show someone a [total cost of ownership] or landed cost, you can show them the emissions of hyperlocal versus some different view. Our role isn’t to push sustainability, but it’s to give them a better choice. If you can do that, you’re enabling leaders to make both better business decisions and better environmental decisions.”

This article first appeared in GreenBiz’s weekly newsletter, VERGE Weekly, running Wednesdays. Subscribe here. Follow me on Twitter:@greentechlady.

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With supply chains experiencing such significant disruption right now, we could see trends in different sectors toward decentralization and localization …
The first thing you have to do is show people that they have options.

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One of the machines in the Fictiv network

A piece of manufacturing machine from Fictiv’s digitally connected network.

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Watch for ADM to pioneer biofuels, more carbon capture projects
Heather Clancy
Wed, 05/13/2020 – 02:57

Although decarbonization of industrial processes remains a big technical challenge, food processing and commodities giant Archer Daniels Midland recently adopted new commitments to cut its absolute greenhouse gas emissions by 25 percent by 2035 — with additional carbon sequestration projects and changes to its transportation fleet figuring largely in that strategy.

ADM also has pledged to decrease energy intensity by 15 percent over the same timeframe.

“Our new goals are ambitious yet achievable,” said ADM chairman and CEO Juan Luciano, in a statement when they were revealed in late March. “The greenhouse gas emissions we’ll save will be the equivalent of those from charging every single smartphone on the planet 250 times.”

The new commitments, the culmination of a 1.5-year planning process, aren’t officially science-based targets but they are “more aggressive” than the 2 degrees Celsius reduction scenarios suggested by the Paris Agreement, according to ADM’s chief sustainability officer, Alison Taylor.

The new commitments do not yet cover Scope 3 emissions, although that it is a forthcoming priority for the company, she said.

We hope in this trajectory of 15 years there will be technologies that come online that we don’t even know about today.

ADM’s new board-level sustainability and corporate responsibility committee — as well as the whole executive council — played a role in setting the new goals, she said.

A feasibility study conducted by consulting and engineering firm WSP Global summarizes the best courses of action — now and over the next 15 years — that are most viable. “It gives me faith that this will be taken seriously,” Taylor told GreenBiz shortly after the new strategy was revealed.

ADM’s list of potential options (as identified by that study) is comprehensive and includes many measures you’d expect for near-term improvement such as renewable energy procurement, investments (although limited) in on-site generation technology including solar, wind, nuclear and battery storage and ongoing energy “treasure hunts” for identifying energy efficiency and reduction opportunities.

An ADM soy plantation

Flipping the switch

Another major focus will be “fuel switching,” both for its industrial facilities and transportation fleet. This is a daunting task: ADM, which has about 40,000 employees in 200 countries, operates more than 330 food and ingredient manufacturing facilities worldwide. It owns more than 1,800 barges, 12,000 rail cars, 360 trucks, 1,200 trailers, 100 boats and 10 oceangoing vessels. Its leased fleet is just as massive.

According to the WSP assessment, about 46 percent of ADM’s energy consumption in 2018 (28.6 million MWh) was attributable to coal and 33 percent (20.7 million MWh) came from natural gas. As of that time, about 8 percent (5.2 million MWh) came from biogenic sources such as biodiesel, ethanol, biogas and biomass — a percent you can expect to increase as ADM works toward its new reduction goals.

And ADM is exploring all of its options including biomass, although that would require capital expenditures and the construction of substantial storage facilities to handle the feedstock. If ADM transitioned its industrial energy loads entirely to biomass, it would require more than 500 trucks daily of fuel, according to the study.

It’s more likely, instead, that the company will opt for multiple options that also include biogas, renewable natural gas and — potentially in the future — hydrogen.

“We hope in this trajectory of 15 years there will be technologies that come online that we don’t even know about today,” Taylor said.

To see our company looking at the future, this was rewarding for employees.

ADM is already testing emerging technologies within its transportation fleet. In late February, it announced a plan to outfit five trucks with a fuel system from Optimus Technologies that allows conventional engines to run on 100 percent biodiesel. They’ll be part of a year-long pilot: Each vehicle will travel an estimated 160,000 to 180,000 miles, with the technology expected to reduce CO2 emissions by up to 500,000 pounds on each truck.

For perspective, that’s a reduction of about 80 percent over traditional diesel.

The fuel itself will come from an ADM refinery in Jefferson, Missouri. Indeed, it’s worth noting that ADM is still one of the largest biodiesel and biofuels producers in the world. It stands to benefit from that sort of transition.

An early adopter of industrial carbon capture

When it comes to removing existing atmospheric carbon, ADM is digging into emerging carbon capture and sequestration solutions. It is already operating a commercial-scale installation at its corn processing and biofuels facility in Decatur, Illinois, that is capable of storing up to 1 million tons of CO2 annually.

The CO2 is being injected into a saline reservoir that’s almost 1.5 miles underground. This isn’t something it can do indefinitely: The project can store up to 5.5 million tons in total, and it’s only slated to run up to five years initially.

Realistically, this isn’t something that ADM can do everywhere. The right combination of geological considerations is necessary for this sort of installation. But the 45Q tax credit for carbon removal projects has made this more feasible, Taylor said, and the approach is being evaluated elsewhere. “We can demonstrate to our colleagues that this technology can be scaled up,” she said.

When I spoke with Taylor in early April, I asked about whether the rollout of the new goals might be delayed by the COVID-19 pandemic. While the company could have waited until later this spring, she said the team decided to push forward to help keep the ADM workforce focused on the long term, even amid the short-term crisis.

“To see our company looking at the future, this was rewarding for employees,” Taylor said. “It’s giving them confidence about the future.”

Pull Quote
We hope in this trajectory of 15 years there will be technologies that come online that we don’t even know about today.
To see our company looking at the future, this was rewarding for employees.

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How COVID-19 can shape the response to climate change
Terry F. Yosie
Wed, 05/13/2020 – 02:31

Part Two of a four-part series. Part One can be found here.

As the consequences of the COVID-19 pandemic continue to unfold, insights are emerging on how to repurpose what’s been learned for the benefit of climate change mitigation. To date, most of the focus on the pandemic-environment nexus has been short-term. A number of environmental activists, for example, have recommended that temporarily reduced air pollution levels be made permanent through regulatory controls. Conversely, the Trump administration has used the pandemic as an argument to issue an open-ended suspension of the enforcement of environmental laws.

These examples reflect the battle lines being drawn for an even larger conflict that is emerging over climate change policy. 

Three key facts

Three key facts highlight the growing stakes in play for climate change decision making.

First, many parallels exist between arguments that deny the existence of climate change and the assertion that COVID-19 is a large-scale hoax designed to reduce personal liberty, confiscate the purchase and use of weapons and alter the traditional American way of life.

Using Facebook and YouTube as principal social media organizing platforms and Fox News as a megaphone to broadcast their views, “denialists” have proven their ideology to be adaptable across multiple issues, including climate change, stratospheric ozone depletion and vaccinations against communicable diseases. Recent Washington Post investigations have reported linkages among groups that organize and financially support denialist demonstrations. Some of these groups also fundraise in behalf of the Trump re-election campaign.

As the consequences of the COVID-19 pandemic continue to unfold, insights are emerging on how to repurpose what’s been learned for the benefit of climate change mitigation.

Second, a principal argument used against greenhouse gas controls — that they rely upon data and protocols developed by scientific experts — has garnered substantial public support when applied to combating the COVID-19 pandemic.

This result occurs because individual citizens understand that their personal well-being is at risk. Thus, they are more receptive to receiving guidance on how to mitigate this risk from medical professionals that they know of and trust. Also, the medical advice provided is both direct and practical — shelter-in-place, wear a mask, maintain social distancing. A similar opportunity exists to provide more specific climate change mitigation advice from independent scientists and professional bodies directly to citizens whose awareness of climate risks continues to grow.

Third, there is overwhelming evidence that both the coronavirus pandemic and climate change damage were knowable and preventable. Numerous scientific reports, intelligence community assessments and public pronouncements from well-known public health or technology authorities such as Bill Gates warned, over a period of years, of the probability of a pandemic. The inability to respond to these warnings represents a system-level failure on the part of those responsible for protecting public health.

A similar failure towards a system-level set of risks is unfolding with accelerating climate change. Over the past three decades, an elaborate evidence-based system has been in place for evaluating scientific data, modeling temperature changes and effects as varied as the melting of polar ice caps, sea level rise, heat waves and droughts and the spread of disease vectors.

Unlike their health scientist counterparts, climate scientists have encountered a longstanding, organized campaign of skepticism and denial — funded by dark money business interests — about their peer-review procedures and their conclusions. This has resulted in direct harassment of both Individual climate scientists and established scientific bodies such as the Intergovernmental Panel on Climate Change, and has directly slowed policymakers’ and civil society’s ability to respond to life-threatening climate risks.

COVID-19 outcomes for climate change planning

At this juncture of managing the COVID-19 crisis, three significant outcomes have emerged that can inform responses to the climate crisis:

  • People have connected their personal well-being to expectations of government action. They expect the institutions of government (and civil society organizations) to act on their behalf by defining essential economic activities, providing needed medical infrastructure (hospital capacity, critical supplies and tests) and maintaining civil order.
  • Governmental officials, medical professionals and citizens have embraced the need to “bend the curve” for COVID-19 incidence and mortality.
  • Citizens believe they have a responsibility to each other by sheltering in place, frequently washing their hands, maintaining appropriate distances, limiting their mobility and wearing masks outside of their homes. This has occurred for reasons of self-interest but also stems from moral and ethical values and notions of good citizenship.

Actions to bend the climate curve

Public support for a goal to “bend the climate curve” can be built but will require national and International efforts to limit/reduce future greenhouse gas concentrations in the atmosphere and contain a worldwide temperature increase to between 1.5 and 2 degrees Celsius over the next few decades (the two pre-eminent metrics for measuring success in bending the curve). 

Three types of actions are required to achieve this goal: policy initiatives that can acquire sufficient political support to be enacted within the next two years; interventions by investors on climate governance; and behavioral change through moral and ethical appeals to individuals and groups.

Policy actions

Policy actions should be guided by the “Bill Gates Principle”: People should not waste idealism and energy on a policy that will not cause any reduction in the use of fossil fuels. Policy actions should encompass regulatory, tax and budgetary actions. They include:

  • Rejoining the Paris Climate Accord, with the objective of renegotiating more ambitious climate targets and timetables with added transparency.
  • Setting a U.S. objective of decarbonizing the economy through a policy of net-zero carbon emissions by 2050 across all major industry sectors. Appropriate interim objectives also should be established. For example, the U.S. government and the utility industry should establish a goal for phasing out coal-fired power plants by 2030. The Obama administration’s Corporate Average Fuel Economy standards should be maintained and periodically updated.
  • Removing all energy subsidies, including those for solar and other renewables. The latter have achieved a level of market competitiveness and will succeed in gaining expanded access to various energy markets. Fossil fuel companies, a growing number of which are heavily indebted or experiencing reductions in their customer markets, should compete in the future only on a market-clearing basis and not as rent-seeking enterprises.
  • Avoiding transfer of public funds to large, carbon-intensive companies. Innovation potential is higher when funds are directed at new technology development rather than larger, more heavily capitalized firms with existing access to credit markets.
Investor actions

Investors have become increasingly active in engaging multinational companies on their environmental, social and governance (ESG) commitments. Their influence is greatly strengthened by the performance of ESG or sustainability fund investment portfolios when compared against traditional benchmarks such as the S&P. Moving forward, investors should be:

  • Intensifying engagement with CEOs and corporate boards on climate governance and commitments. Increasing synergy involving Climate Action 100+ (and allied partners) advocates, ESG-focused investment firms, individual analysts and shareholders have achieved some impressive gains in recent years and should accelerate. Shell Oil Company’s April 16 declaration to become a net-zero emissions energy business by 2050, followed shortly thereafter by a similar announcement by French oil giant Total, are examples of such engagement. Investors should espouse that all Fortune 500 companies achieve net-zero carbon emissions by 2050 with interim, transparent reporting benchmarks established for 2030 and 2040.
  • Advocating the elimination of deferred carried interest. This refers to the preferred tax treatment received by hedge fund and private equity fund managers. Current rules treat carried interest income as a long-term capital gain (taxed at a U.S. rate of 23.8 percent) rather than as ordinary income (subject to a rate of 39.6 percent). This favored tax treatment is completely artificial, and benefits investors primarily interested in accumulating short-term gains rather than longer-term focused portfolios such as investments in sustainable energy. Carried interest deferral also contributes greatly to social inequality.
  • Recommending that the financial transaction tax (FTT) be raised. Presently, each stock transaction is taxed at a rate of 2 cents per $1,000. Raising the FTT to $1 for each $1,000 of transactions will disincentivize high-frequency trading, create fairer markets, encourage longer-term possession of stocks and lessen inequality.
Mobilizing citizens

Persuasive facts directly engaging citizens must accompany policy and investor actions if a growing public awareness of climate change is to mobilize an aggressive movement to support greenhouse gas reductions. A citizen mobilization strategy should include:

  • Expanding philanthropic support for grassroots citizen participation to distill climate change science into usable, actionable knowledge. This can be done by establishing academic fellowships, research centers and grants to develop position papers and other content; training citizens to participate in government decision making; and multiplying citizens’ voices at the grassroots levels and through social media. Leading philanthropists should pool their resources, using nonprofit, tax-deductible organizations, to invest at least $1 billion annually within the next two years and subsequently. Unlike the “dark money” contributions of foundations, whose aim is to weaken health and environmental protections and sow political divisions, the sources of pro-climate change philanthropy should be completely transparent.
  • Convening community climate risk commissions to evaluate risk scenarios, the resilience of current infrastructure (drinking water systems, the electricity grid, subways and bridges). The outcome of this effort — ideally a collaboration of local governments with universities, nongovernmental organizations, progressive businesses and interested citizens — would be the development of a community climate plan to identify key local risks and recommended priorities and budgets for their resolution.
  • Expanding the moral and ethical rationale for climate actions. The moral basis for reducing climate risks includes: self-preservation of humans and ecosystems that sustain all life forms; expanding economic opportunities that broadens the middle class, expands the social safety net and rewards investors; creating a fair and more equitable society; and protecting the earth for future generations. Coupling moral arguments with expanded economic opportunities (job creation, purchase of newer and cleaner products, investing in companies with highly rated environmental, social and governance portfolios) can unleash powerful incentives at market scale to transform enterprise management and consumer behavior to better manage climate risks.

Contemporary society already has entered the era of system-level risk from climate change. By way of context, scientists evaluating the onset of the COVID-19 pandemic have concluded that mitigation measures taken in January-February were far more effective in avoiding disease incidence and mortality than later initiatives to self-isolate and shut down non-essential economic activities.

In a similar fashion, delays in implementing climate mitigation and adaptation measures across the globe will result only in more draconian setbacks to life as we’ve come to know it. Leadership consists of mobilizing governments, businesses and citizens to support initiatives that can begin to bend the climate curve in the next two years.

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Here’s what fringe consumers tell us about the post-pandemic marketplace
Deonna Anderson
Wed, 05/13/2020 – 00:06

For years, communications firm Shelton Group has been gathering data about “fringe” consumers through intensive, manual social media analysis about both environmental and social sustainability.

Why? Because while the fringe tends to be ahead of the curve when it comes to the trends, eventually some ideals of fringe consumers become mainstream. As just one example of a once-nascent idea, Shelton Group pointed to the call by buyers for consumer brand companies and others in the consumer products value chain to transition away from plastics that eventually end up in the ocean.

“The important piece of that is this is where you as a business and as a company and as a brand can take a look and understand something, that if it comes at you as a surprise, it’s a threat,” said Susannah Enkema, vice president of research and insights at Shelton Group, during last week’s GreenBiz webcast about what fringe consumers can tell us about the post-pandemic marketplace.

“But if you understand it now, you can turn that threat into an opportunity, And that’s really the power of the fringe,” Enkema continued, before sharing findings from Shelton Group’s most recent report, “Seeing into the Future: Leveraging fringe consumer insights to build a sustainable brand in a post-COVID world.”

Between March and mid-April, Shelton Group observed trends on social media — including Twitter, Reddit and Instagram — to gather insights about what might happen after the COVID-19 pandemic. It first shared the findings during the webcast.

The important piece of that is this is where you as a business and as a company and as a brand can take a look and understand something, that if it comes at you as a surprise, it’s a threat.

In the report, Shelton Group defines the fringe as a “subset of individuals who live on the fringes of society in terms of their beliefs and behaviors,” also noting that they tend to be activist-oriented. Additionally, the firm polls mainstream consumers to further gather data about trends.

“We have over the last few years seen a shift towards sustainability that we haven’t haven’t seen before, and it’s kind of two-fold,” said Suzanne Shelton, president and CEO at Shelton Group, during the webcast.

“There’s a social proof or social pressure kind of aspect to this, in which pre-COVID, 42 percent of us wanted to be seen as buying green products,” Shelton continued. “But beyond that, we’ve also seen pre-COVID that 86 percent of us expect companies to stand for something more than just making money.”

As the world grapples with the coronavirus pandemic and recession, fringe consumers can give businesses a sense of what their expectations might be when this is all over and we go back to a “new normal.” Here are a few key takeaways.

Shelton said businesses have two options — return to “business as usual” or “embrace the responsibility consumers have given them to tackle large scale issues like climate change,” noting that business leaders should choose the second option for a number of reasons.

Further, Shelton said, businesses need to get involved in the right way and start rethinking sustainability so that they’re not doing the bare minimum. Consumers need to know that businesses have some “skin in the game.”

“In this new COVID world, what we’re seeing in the fringe that is quickly becoming mainstream is that those ideas are amplified,” she said. “What we’re seeing clearly in all this listening that we’re doing right now, again fringe and mainstream, is that businesses are sort of acting in one of four ways and therefore, they are getting categorized in one of four ways by consumers.”

Screenshot from Shelton Group report

Shelton noted that there is a hierarchy in the four ways consumers are categorizing businesses. The businesses that are donating small aid that takes advantage of pandemic-induced losses are ranked low while those going beyond minimizing losses — such as those that shifted their manufacturing to produce masks or hand sanitizer — are ranked the highest.

Consumers are paying attention to these actions, and as citizens, they’re paying attention to “the system” — the government, economic system, etc. — which the fringe has said needs to be changed for years. That idea is becoming more mainstream, as the pandemic has exposed the flaws of the current models and to point to a specific system, capitalism.

During the webcast, Shelton said right now is the time for companies to step up their sustainability efforts.

“As you think about your 2030 goals and 2040 goals, I think you need to go way beyond or else you’re going to live in this bucket forever and be seen as, ‘Yeah, they’re doing alright but they could be doing more,’” she said.

Pull Quote
The important piece of that is this is where you as a business and as a company and as a brand can take a look and understand something, that if it comes at you as a surprise, it’s a threat.

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