Tag: greenhouse gasses

OM in the News: How AI Consumes–and Saves–Energy in Transportation

We all know AI’s dirty secret: It gobbles up a huge amount of electricity—and spits out a large volume of greenhouse gases in the process. But what if using AI can also save energy?

AI has the potential to drastically slash energy demand across a swath of industries and cut down on their carbon emissions. And it may be so effective, writes The Wall Street Journal (Sept. 16, 2025), that it will easily balance out its own power demands and carbon emissions.

In our blog today, we discuss how AI is remaking transportation, planning routes and timetables.

AI-driven route planning has helped major U.S. freight companies cut fuel use in ground vehicles—in some cases by 5% to 10%—by simply lowering the miles they travel. The whole ground-freight industry could cut its emissions by 10% to 15% by using AI-led dynamic route optimization in all vehicles.

Getting stuck in traffic adds up to a lot of pointless emissions. AI-driven route planning has cut fuel use in ground vehicles as much as 10%.

AI can analyze traffic in real time, and is starting to get better at guiding vehicles away from busy areas, reducing the fuel wasted by stop-and-go driving.  (Sitting in traffic adds up to a lot of pointless emissions: Americans wasted 3.3 billion gallons of gasoline and diesel fuel in 2022—over 215,000 barrels a day of petroleum).

 Also, e-tailers cluster deliveries together to save miles traveled. A crucial form of routing goes on behind the scenes. AI-enabled logistics predicts what goods people will be ordering, and where and when. That way, e-tailers can stock their distribution centers according to probable local demand, which means fewer miles spent on deliveries.

Further, marine freight is using AI to calculate the best times for ships to “slow steam”—lower their speed—which can greatly boost efficiency: A 10% drop in speed cuts fuel use by 20%. Improving traffic at ports can also cut down on wasted fuel. Ships burn as much as 7-10 tons a day of fuel while anchored near ports, waiting for congestion to clear. AI-assisted programs help shippers lower the waiting period by timing their arrivals at port efficiently.

The International Energy Agency says the spread of AI in the transportation sector alone could slash 900 million metric tons of carbon emissions by 2035. In comparison, the agency expects emissions from data-center electricity use to rise to 300-500 million metric tons by 2035, up from 180 million metric tons today.

Classroom discussion questions:

  1. How might AI be used in the commercial aviation industry?
  2. How else can AI be of benefit to delivery firms like Amazon?

OM in the News: The Transition to Electric Vehicles Sustainability Dilemma

A mining exploration camp in the Ring of Fire

The pace of the global transition to electric vehicles depends on the future of a remote region in Canada known as the Ring of Fire. Located underneath a distant, swampy expanse in Northern Ontario that is cut off from major roads, the Ring of Fire is seen as one of the world’s most important untapped sources of nickel, copper and cobalt—metals essential for making the batteries that power EVs.

But the precious commodities are buried under a vast ecosystem of peat bogs that hold more carbon per square foot than even the Amazon rainforest. Digging them up could trigger the release of more greenhouse gas than Canada emits in one year, turning one of the earth’s biggest carbon sinks into a major source of emissions.

A debate over how, or whether, to tap in to this mother lode, has touched off a fight between mining companies, climate advocates, and indigenous groups as demand for cleaner energy and EVs has surged worldwide, reports The Wall Street Journal (Sept. 29, 2023).

“If I have to hop on a bulldozer myself, we’re going to start building roads to the Ring of Fire,” said the head of Ontario province, which recently signed deals with automakers VW and Stellantis to build battery-making factories in the province. Opponents warn that disturbing the area could have far-reaching consequences.

The Ring of Fire, an area larger than Rhode Island, was formed 3 billion years ago. A retreating ice sheet left sodden, boggy terrain that covers a wealth of minerals. This deposit is “the most valuable nickel deposit, undeveloped, in the world,” said one mining CEO. “We’re not going to be able to switch off fossil fuels, which are destroying the planet, unless we have abundant supplies of nickel.” He estimates the deposits of platinum, palladium, copper and chromite could be worth $67 billion. As EV production has increased, demand has surged for such metals, which are key components in making EVs and military equipment.

Projects like the Ring of Fire represent a new era for the mining industry. Long considered a dirty and often unfortunate legacy of the industrial economy, mining has taken on a green sheen. Extraction is an essential component of the global movement toward electrification.

Classroom discussion questions:

  1. What is the pro mining stance?
  2. The anti-mining position?

OM in the News: Apple Tries to Make Its Suppliers Sustainable

Apple is adding pressure on suppliers to get on board with its carbon-neutrality goal, highlighting the difficulties in tackling greenhouse-gas emissions from global supply chains, reports The Wall Street Journal (Oct. 26, 2022). The iPhone maker said that it would review the work of suppliers to specifically decarbonize their Apple-related manufacturing, such as by running on 100% renewable energy, and track their yearly progress as it strikes supply agreements. Apple already requires suppliers to report overall emissions from their operations and energy purchases, respectively known as Scope 1 and 2 emissions.

Close to 30% of Apple’s suppliers haven’t committed to using 100% renewable energy in the production of the company’s goods. In 2020, Apple set a goal to reach carbon neutrality across its entire business by 2030, aiming to cut emissions by 75% and develop carbon-removal projects for the remaining 25% of its footprint. The gap underscores the challenge large companies face in getting their supply chains in line with their climate change goals.

Scope 3 emissions, which cover suppliers and the use of a company’s products, account for the overwhelming bulk of a company’s carbon footprint. A big problem facing companies like Apple with global supply chains is that their suppliers are largely dependent on countrywide sustainability goals. For instance, most energy available to Apple’s Chinese suppliers comes from coal. “The truth is, no company or their suppliers are on track to reducing all three scopes of emissions. Current environmental circumstances require efforts most companies cannot humanly meet,” said one industry expert.

Still, Apple said that more than 200 suppliers have said they would power all Apple-related production with 100% renewable energy by 2030. Among the suppliers to make the commitment is Foxconn, which is the biggest assembler of iPhones and has operations in China, India and other regions. Others include Corning, Nitto Denko, STMicroelectronics and Taiwan Semiconductor Manufacturing.

Apple’s Scope 3 emissions stood at 23.1 million metric tons of carbon-dioxide equivalent in 2021, declining from 27.3 million in 2017. In 2021, the company’s Scope 3 emissions accounted for more than 99% of its carbon footprint. Since many of the lagging suppliers are in emerging markets where there is a lack of access to renewable energy or affordable contracts, companies with sprawling supply chains like Apple need to encourage collaboration. “Engaging low-maturity suppliers requires close partnership and collaboration, all while supply-chain organizations grapple with conflicting priorities such as supply disruption and inflation,” said another industry leader.

Classroom discussion questions:

  1. Why is it hard for suppliers to meet the standards Apple is setting?
  2. Will Apple be able to reach carbon neutrality by 2030?