Using Data to Create a Greener Bottom Line
Established in 2022 in Detroit by William Crane, OrbAid is dedicated to – in his words – helping companies build greener bottom lines. The company sells AI-based project management software that provides data and recommends actions to help companies prioritize projects that increase profits and environmental impact. SBND interviewed Crane about the current landscape for businesses navigating sustainability projects. Q: What are some of the biggest challenges you see businesses facing when it comes to sustainability? A: There are a number of challenges and some macro trends that stand out. When we look at the largest publicly traded businesses globally, they’ve made public commitments when it comes to their sustainability goals, and have included these in their SEC Filings. Many, if not most, of these companies have a significant gap between their goals and their current progress. The effort required to close this gap is substantial and poses a considerable challenge in itself. Second is the continuous improvement aspect and the time and resources this involves. For example, a company may have a goal to decrease emissions by 10% year over year for the next ten years. Planning for its longevity is a challenge. Automotive suppliers are under significant pressure. One of our customers, Prism Plastics, is particularly challenged by increasingly stringent customer sustainability requirements, and suppliers don’t have a long runway to become compliant. Further, with new government regulations taking effect in the EU and US, companies can face extreme fines and there are rigorous legal ramifications. Both customers and governments are shifting their sustainability expectations from pollution reporting to business greening. Often, companies have sustainability teams composed of employees who are already filling other roles, making it a part-time effort at best. These teams might generate ten ideas for green projects when, realistically, they need 10,000. Also, the sequencing and prioritization of projects is a challenge. Determining the most efficient and effective projects and initiatives to put into place – and in what order – is necessary to be able to sustain continuous improvement. Q: Sequencing of projects – what does this mean exactly and how does that play into a company’s sustainability planning? A: Companies have the best intentions of course, but taking on projects in a strategic order will help to remain profitable. For example, a global manufacturing company might decide to put solar panels on all of their factories across the country or the world. That is not a bad thing, but maybe that project is more expensive and has a longer payback than switching select supplier disposable cardboard boxes to returnable metal racks. Sustainability is a long game, and as I said, most large companies have continuous improvement demands year over year, so it’s about strategically sequencing the projects to remain profitable while meeting goals. Technology can help here. Leaning into AI to sort out the sequencing can be a game changer. Q: Where are companies most often missing opportunities to be more sustainable and increase profits? A: The practical and actionable stuff. There is so much pressure surrounding sustainability. It’s been politicized. There is consumer angst around it. There are stringent government regulations as I mentioned. And people naturally go to extremes. It’s back to the idea of large global manufacturers putting solar panels on all of their factories around the world. This is an enormous and expensive project. Not to say that’s not something they should do at some point, but perhaps first, companies can look at creating less trash, using less water, and converting to different materials in their manufacturing. By doing these things they can save time and money and help the environment. It’s a matter of prioritizing projects and not just throwing a Hail Mary and hoping things work out. There are a number of very practical projects that can be taken on and absorbed that in the end will help businesses be more profitable – and keep them profitable along the way. We’ve been able to help many companies in this way, including GM, Prism Plastics, Berkshire Hathaway, and more. Q: Are these hurdles changing over time? Evolving? A: Yes, when it comes to sustainability things are always evolving. We continue to face changes in regulation. I think 2025 will be an inflection point. If companies don’t comply with regulations the fines will be astronomical. Also, the science and the jargon can be confusing. But consumers are more educated than ever before and also more demanding when it comes to their sustainability expectations of companies. Q: What are some examples of sustainability projects for businesses that you have seen increase profitability? A: Product packaging is a big one. Take appliance companies like Whirlpool. Historically, an appliance gets delivered to a home and you are left with a lot of cardboard and styrofoam. Switching to renewable materials can translate to savings. We are seeing some really creative innovations in packaging materials like fungus-based inserts that are organic and naturally break down. Q: How do you think AI can impact local businesses in terms of sustainability? A: AI is an efficient tool. It can be used to quickly – yet deeply tailor actionable profitable sustainability projects that deliver results. It can be used to calculate the environmental impact and business profit to get better, faster results. Be sure to subscribe to our newsletter for regular updates on sustainable business practices in and around Detroit.
Accelerating Solar Through Connecting Contractors
Established in 2013 in Detroit by Patrick McCabe, GreenLancer is dedicated to accelerating the adoption of solar energy and EV usage. The company’s software platform is designed to connect solar installers with design and engineering partners while guiding the permitting process, making it easier and faster for contractors to do their work. SBND interviewed McCabe about the current landscape for contractors in the industry. Q: What inspired the creation of GreenLancer? A: Following my graduation as a mechanical engineer, I moved to California and began working for a solar company. It became evident to me over time that there was a significant gap between contractors eager to install solar systems and the availability of engineering and design services to support them. Upon returning to Michigan, I founded GreenLancer with the vision of creating a platform where contractors could easily connect with engineers and designers, effectively bridging this gap. Today, GreenLancer is dedicated to advancing the adoption of clean energy and EV infrastructure, contributing to sustainability efforts not only in Southeast Michigan but nationwide. Q: Could you explain GreenLancer’s core function? A: GreenLancer operates as a marketplace that links contractors with engineering and design firms, streamlining processes to accelerate the installation of solar energy and EV charging stations. Since our inception in 2013, we’ve assisted over 7,500 contractors on more than 200,000 clean energy projects nationwide, totaling over $2.5 billion in solar energy and EV infrastructure investments. Q: Those are big numbers. Can you tell us more about how those numbers are achieved? A: We work as an online marketplace – akin to Amazon. The software connects contractors globally to design firms and engineers globally 24/7, so we can connect hundreds – even thousands – daily who then can move into the project phase. If you do the math, GreenLancer has been in existence for 11.5 years, so this equates to the support of approximately 48 projects per day being executed around the world. Q: What challenges do contractors typically face in the solar and EV sectors? A: The solar and EV charging industries pose unique challenges since they are so new. Many contractors lack the specialized knowledge and resources required for these installations, often necessitating costly engagements with engineering firms. Additionally, navigating the diverse and complex permitting processes across different states can be overwhelming. Issues related to utility interconnections further complicate PV installations, potentially causing delays and increased costs. These factors frequently deter contractors from entering the solar and EV markets altogether. Q: What impact does this have on the economy? A: Simplifying the complexities of permitting and engineering enables clean energy contractors to scale their operations, thus enhancing the economy. It also expands access to green technologies for both businesses and residents. Q: Your website mentions incorporating concepts from lean manufacturing in the automotive industry. Can you elaborate on this? A: As a Detroit-based company, we’ve adopted the automotive industry’s assembly line approach in a virtual capacity, optimizing our marketplace operations for efficiency and scalability. We also embrace concepts of continuous improvement methodologies and lean manufacturing used in the automotive industry to evolve alongside the needs of our users, enhancing our technology and service offerings over time. Q: How do drones factor into the solar industry? A: Drone use by solar companies has increased dramatically in recent years for residential, commercial, and utility-scale projects. Drones can save time, increase worker safety, and help pinpoint maintenance issues. In fact, many contractors are now using drones to gather data for solar site surveys, inspections, and marketing images. Several drone software companies specifically cater to the solar energy industry. Q: Solar farms are controversial in many places, including Michigan, mainly over questions of land use. What are sustainable practices for solar farm installation that can help mitigate the environmental and community impact? A: It’s helpful to consider the community and environmental impact of solar farms from the planning stage to ensure they provide the most benefit possible to the community. However, some practices are difficult or costly to implement at certain locations. It’s best to avoid constructing solar farms on undisturbed natural areas in ecologically sensitive areas. Therefore, using already cleared land usually has less impact on wildlife and is often more cost-effective. It’s helpful to keep some existing vegetation that doesn’t shade the array and to minimize soil disturbance during construction whenever possible. Some solar farm developers are experimenting with wildlife-friendly fencing around solar farms that allows wildlife to pass seasonally or is high enough to allow small animals to pass underneath. Another option, if space allows, is to create vegetative buffers along the fence line for wildlife habitat. Planting native wildflowers can reduce the need for mowing, promote biodiversity, and encourage pollinator populations. This can benefit nearby farmers because pollinators are essential for many crops. Some solar farms use sheep as an alternative to mowing to manage vegetation growth, reducing the need for mechanical mowing equipment. This approach typically involves partnering with local ranchers. Q: This is an expanding industry – is the size of the labor force keeping pace? What are the qualifications needed to get started? A: The solar power, energy storage, and EV charging industries need many skills to expand. The 2024 Electriciation Contractor Survey highlights some issues related to the labor force for solar, energy storage, and EV charging station contractors. The report found that 49% of contractors surveyed report a lack of experience and industry-specific knowledge as a challenge for hiring qualified professionals, particularly electricians and field technicians. Transitioning to clean energy is boosting the demand for licensed electricians. According to the Bureau of Labor Statistics (BLS), the demand for electricians is expected to increase by 6%-9% from 2022 to 2026. In addition, the North American Board of Certified Energy Practitioners (NABCEP) Certification helps launch a career in the solar industry. Various training programs are offered by trade schools, community colleges, universities, and nonprofit organizations designed to advance the clean energy industry. 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Martinrea: Balancing Growth with Energy and Waste Reduction Goals
With over 19,000 employees working in 56 manufacturing, engineering, and technical centers in over 10 countries, Martinrea International is a global auto parts manufacturer focused on the design and development of lightweight structures and propulsion systems. Its sustainability goal is to operate in a socially responsible and ethical manner centered around respect for the environment, laws, universal human rights, and communities around the world. SBN Detroit spoke with Rachel Handbury, director of sustainability, to find out more about the company’s approach and execution. Q: How do you approach sustainability at Martinrea? A: Martinrea views sustainability as a holistic approach that encompasses both people and the planet. Our vision is to make lives better by being the best supplier we can be in the products we make and the services we provide. One of our ten guiding principles is to ultimately “leave It better.” Q: How is sustainability organized internally? A: There are a lot of different layers within Martinrea to achieve sustainability. It is embedded throughout the company from leadership to the manufacturing plants. We have a Sustainability Steering Committee, and the group holds quarterly meetings. This is led by our CEO, and his presence in the meetings drives the importance. We have a strong team working constantly on sustainability that meets weekly. This involves a sustainability lead from each of our four business units (Aluminum, Metallics, Flexible Manufacturing Group (FMG) and Fluids). We review each business unit’s sustainability targets, initiatives, and implementation. As you can imagine, each group drives their sustainability priorities slightly differently due to their different manufacturing processes. Q: In around 2019/2020, Martinrea hired a third-party consultant to assist with the sustainability strategy. How did that work? A: Martinrea utilized this consultant team to perform an internal materiality assessment, identify our stakeholders, and propose a sustainability strategy, which I was hired to manage. We then developed the business unit sustainability lead team and the Sustainability Steering Committee – the management structure needed to implement the sustainability strategy. Q: How do you get employees involved in sustainability? A: We do this in multiple ways. Education is key. The more our employees know about sustainability and how Martinrea supports sustainability, the more they want to incorporate it at work and in their homes. The fact that our leadership is on board is very important. It’s embedded from the top down and vice versa. Sustainability is also part of our internal business plan. We have implemented sustainability scorecards for the manufacturing plants and within each business unit, so everyone has clear sustainability targets they are looking to achieve. We also give out an annual ‘Leave it Better’ award to a plant that is excelling in all aspects of sustainability. The purpose is both to highlight the work being done and to foster involvement. The added benefit is that the winning plant inspires others to do similar work in their plant. Q: What are your short-term goals for 2024? A: We have a year-over-year goal of a 3% reduction in energy intensity (energy consumption relative to sales) in all operations. We also have a year-over-year absolute carbon reduction goal of 3%. This year we added internal water reduction goals, and we are working to reduce water consumption focusing on the plants located in high-water risk areas and plants that have the highest water usage. Q: What are your longer-term goals? A: 35% reduction in absolute carbon by 2035 without carbon credits, and we strive for every manufacturing plant to be zero landfill. Q: What are your biggest challenges? A: We are a growing company, so as our production increases, we have to balance that with continuing to achieve our reduction goals. Q: What are the biggest opportunities? A: Sustainability is very important to our customers and communities. We are an authentic company achieving our sustainability goals through energy efficiency and giving back to the communities in which we work and live. Our approach to sustainability provides a competitive advantage since our customers want to work with sustainable suppliers. Q: How are your suppliers vetted when it comes to sustainability? A: Suppliers are a big focus for us right now. Just as our customers view us as partners in sustainability, we also view our suppliers as partners. We have sustainability embedded in our supplier assessments and our supplier code of conduct. We are also providing more education to our suppliers so that they understand why it’s important to us and also to them. Some of our suppliers are in the early stages of sustainability and we can help to pull them along on this sustainability journey. Q: In 2022, Martinrea set a goal to reduce carbon emissions by 35% by 2035. How will you get there? A: It’s a multifaceted approach. But boiled down, we focus on reductions first. We need energy to produce parts, but we are looking at how we can use energy in the most efficient ways. The next stage is to look at renewable energy. In one of our plants in Spain, we just installed solar panels that provide 10% of the plant’s energy. Q: You have reduced carbon intensity by 19% since 2019 – how? A: This same strategy. We start with low-hanging fruit. There were significant reductions made by switching lighting to LED, simple changes in welding techniques, and more. It’s really about having eyes on the manufacturing process through the lens of sustainability and making changes. Q: What does the future look like? A: Following the strategy we’ve developed to push sustainability further each year, we will be utilizing innovation to accomplish energy and waste reductions, increasing efficiency, and then incorporating renewable energy, where possible. At Martinrea, it’s not about making broad claims, it’s about being authentic and digging deeper to see where we can make a difference, both for people and the planet. Be sure to subscribe to our newsletter for regular updates on sustainable business practices in and around Detroit.
