CYNGN Inc.

10/31/2024 | Press release | Distributed by Public on 10/31/2024 15:25

How Automation Supports Industrial Sustainability

In the race to fend off the most disastrous impacts of climate change, sustainability has become more than just a buzzword - it's a guiding principle for businesses that want to remain competitive while reducing their environmental footprint.

In 2023, more than 80% of the energy humanity consumedwas fossil fuels, with manufacturing and its related value chains accounting for nearly 30% of global greenhouse gas emissions. These statsnot only highlight the negative environmental impact of these industries but also their critical role in achieving net-zero emissions by 2050. To meet this goal, the industry must urgently adopt alternative fuels or significantly scale up carbon capture efforts.

The good news is that sustainability trends in the industry are heading in the right direction. More than 8,000 companies and countriesrepresenting 90% of the global GDP have committed to reaching net zero by 2050. In addition, 59% of companies increased their energy efficiency in 2023.

At Cyngn, we talk a lot about the benefits of industrial automation. The efficiency gainsand safety improvementsoffered by our autonomous mobile robots (AMRs) alone are more than enough to justify an investment in automation. However, we have yet to explore the positive impact that driverless vehiclescan have on industrial sustainability.

In short, automation and green initiatives go hand in hand, allowing industries to modernize their processes, minimize waste, and use less energy. From manufacturing to logistics, industries that embrace automation are not just improving productivity- they're also paving the way for a more sustainable future.

In fact, companies that prioritize environmental sustainability not only reduce their environmental footprint but also build long-term resilience. These initiatives can improve brand reputation, attract eco-conscious customers, and generate substantial cost savings through more efficient resource use.

Table of Contents

Table of Contents

How Automation Improves Sustainability

Automation and sustainability go hand in hand. By streamlining operations and minimizing waste, automation reduces resource consumption and operational inefficiencies. Additionally, automation can lower emissions by optimizing transportation routes and reducing idle time. In fact, a study by Gecko Robotics and Rho Impact found that better use of advanced robotics and AI could result in an impressive reduction of 853 million metric tons (MMT) of CO2annually by 2030, which is equivalent to 18% of U.S. CO2 emissions.

This shift to robotics is particularly crucial for industries that rely heavily on fossil fuels or face regulatory pressures to reduce their carbon footprint. Whether it's through electric vehicles (EVs), automated guided vehicles (AGVs), or implementations of intelligent design, automation helps lower emissions and optimize resource use across sectors.

Role of Automation in Industrial Modernization

Automation is at the core of Industry 4.0,where advanced robotics, the Industrial Internet of Things (IIoT), and artificial intelligence (AI) are reshaping industries. By optimizing workflows, minimizing downtime, and enabling real-time data collection, automation enhances industrial productivity. These technologies help companies track and reduce their environmental impact, improve labor productivity, and foster a sustainable production environment.

Manufacturing

Manufacturing automation improves sustainability by reducing energy consumption and waste through optimized processes and efficient resource management.

A prime example of a manufacturer that turned to automation to drive sustainability is Advanced Composite Structure. By automating their production processes and utilizing lean manufacturing techniques, they were able to reduce excess raw material usage and drive workflow efficiency.

As a result, they were able to boost production from 20 to 45 units per shift while cutting scrap rates from 24% to just 1.8%. Additionally, the company reduced its facility size by 73%, resulting in lower energy consumption and a significant decrease in its environmental footprint.

Mining

The mining industry, which has long held a reputation for being environmentally damaging, is greatly benefiting from automation through conveyance and robotic process automation (RPA). These advanced technologies are improving resource management and reducing the environmental footprint of mining operations by minimizing fuel consumption, decreasing emissions, and optimizing extraction processes.

A great example of this occurred at a copper mine in Northern Chile. There, mining company Coldelco installed an 8-mile conveyance system. The belt did the work of approximately 120 long-haul trucks and reduced CO2 emissions by 70%. Coldelco isn't the only company replacing trucks with conveyance. Alamos Gold also switched to conveyance and in doing so, they were able to reduce their rate of emissions intensity (a measure of emissions per ton of material extracted) by half.

Healthcare

Johnson & Johnson and Novartis have both integrated automationto enhance sustainability and efficiency. Johnson & Johnson uses an AI-powered system to monitor production in real time, reducing energy use and waste, which lowers its carbon footprint. Novartis applies AI in drug development to analyze large datasets and predict outcomes, helping streamline R&D, reduce material waste, and prevent unnecessary pharmaceutical waste.

Additionally, automation in supply chain management ensures that medical supplies are efficiently tracked and utilized, minimizing excess waste. These efforts highlight how automation and AI in healthcare and pharmaceuticals are improving operational efficiency while promoting sustainability.

OEMs

Original equipment manufacturers (OEMs) are also embracing automation to boost sustainability. For example, Ford, Toyota, and other leading car manufacturers have already implemented a variety of automation systems to improve their manufacturing processes and increase sustainability.

BMW's Leipzig factory embarked on a major initiative to install automated technologies to enable the recovery of materials like plastics, steel, and aluminum. This has enabled BMW to reuse more than 70% of the materialsin the production process.

Logistics

Logistics companies are leveraging warehouse automation to drive sustainability by optimizing operations and reducing waste. As part of this warehouse transformation, AI-powered route optimization tools can reduce emissions and fuel costs, contributing to the decarbonization of logistics, which currently accounts for 24% of global CO2 emissions.

Autonomous electric vehicles, such as Autonomous Mobile Robots (AMRs) and Automated Guided Vehicles (AGVs), are also playing a significant role, with companies like DHL aiming for 60% of their last-mile fleet to be electricby 2030. Additionally, warehouse automation improves inventory management, reducing excess waste and preventing overstocking, while significantly enhancing warehouse efficiency.

As businesses adopt automated robots and other solutions, they not only support sustainability but also respond to consumer demand, with 66% of customersconsidering sustainability in their purchasing decisions. These technologies ultimately boost operational efficiency while lowering environmental impact.

Sustainable Industrial Practices

Digital Transformation

As companies undergo digital transformation, automation enables the adoption of sustainable industrial practices. By leveraging robotic process automation (RPA), teledriving, and other digital tools, industries can achieve significant waste reduction.

Teleoperations, for example, allow operators to remotely control machinery or vehicles, reducing the need for on-site personnel and minimizing transportation emissions. This technology also supports more efficient workflows by allowing operators to manage multiple locations simultaneously from a central hub. Additionally, intelligent design further minimizes unnecessary resource use, while transparency in sustainability efforts helps companies track and report their environmental, social, and governance (ESG) performance​.

A 2022 study foundthat digital transformation significantly reduces waste gas and wastewater emissions in firms, particularly in state-owned enterprises, high-polluting industries, and economically developed regions. The study identified that this reduction is driven by increased total factor productivity, green innovation, and improved internal controls. These findings suggest that digital transformationplays a crucial role in reducing corporate emissions and enhancing sustainability efforts.

Robotic Process Automation

Robotic Process Automation (RPA) directly supports sustainability efforts by automating repetitive and time-consuming environmental and operational tasks. For example, RPA reduces a company's carbon footprint by automating manual, energy-intensive processes like data entry, cutting down the need for physical resources such as paper and reducing greenhouse gas emissions from office equipment. In fact, according to a studyfrom last year, 79% of respondents who deployed RPA found it to be the most effective tool for advancing their sustainability strategy.

RPA can also streamline sustainability reporting by automating the collection and processing of emissions data from multiple sources, ensuring accurate and consistent environmental reporting.

Additionally, in waste management, RPA tracks and segregates waste, automates recycling logistics, and ensures timely disposal processes, minimizing errors and inefficiencies that contribute to environmental harm.

Moreover, in supply chain management, RPA can automate vendor assessments based on sustainability criteria, improving green procurement and reducing excess inventory, which leads to less waste and supply chain sustainability.

Waste Reduction

A notable example of automation reducing waste in manufacturing is Apple's iPhone recycling robot, Daisy. Daisy can dismantle 200 iPhones per hour with precision, far exceeding human capabilities, and efficiently recover valuable materials like precious metals that would otherwise be discarded.

By freezing adhesives and using innovative disassembly techniques, Daisy enhances recycling efficiency and contributes to resource conservation by reducing the need for new raw materials. This automation supports Apple's circular economy goals by reusing materials from old products in new ones, promoting sustainable manufacturing in the electronics industry. Similarly, companies like Dell and HP are leveraging automated processes in their recycling programs to recover and reuse materials, further advancing sustainability in the sector.

Efficient Design and Workflows

Efficient design and workflows contribute to sustainable industrial practices by minimizing resource consumption, reducing waste, and lowering energy use.

A prominent example is Perkins & Will, an architecture firm leading the industry in sustainable industrial development. Their approach integrates sustainable practices at each stage, including non-toxic materials, energy-efficient systems, and biophilic design.

They have committed to eliminating embodied carbon from all commercial interior spaces by 2030, achieving carbon neutrality by 2022, and targeting net-zero operational carbon for all active projects by 2030. This commitment to efficiency and sustainability demonstrates how optimized workflows can significantly reduce environmental impact.

Transparency in Sustainability

Transparency in sustainability is crucial for building trust with consumers and stakeholders. Automation facilitates better data collection and analytics, allowing businesses to measure their sustainability efforts more effectively. For example, with digital twins, energy monitoring, and emissions testing, companies can gain real-time insights into their environmental footprint and make more informed decisions to improve their sustainability practices.

As a result, companies can also better communicate their environmental practices, demonstrating accountability and commitment to sustainable initiatives. This transparency allows customers to make informed choices and supports a shift towards more responsible consumption. In fact, research shows that 66% of consumersare willing to pay more for sustainable brands.

Benefits of Bringing Sustainability to Your Operations

Investing in sustainable automation brings several benefits, including:

Better Labor Efficiency

In manufacturing alone, 2.1 million jobscould go unfilled by 2030. Fortunately, automation improves labor efficiencyby handling repetitive tasks, allowing workers to focus on higher-value activities​. This shift not only improves productivity but also boosts employee morale, as a sustainable workplace often leads to a safer and more comfortable environment.

Predictive Maintenance

According to a GE Digital study, predictive maintenance can reduce reactive maintenance by up to 40%. By automating predictive maintenance, companies can avoid costly breakdowns and maintenance costs, extending the lifespan of their machinery and reducing waste. Predictive maintenance further "stacks" the efficiency gains by leveraging resource-efficient machinery.

Increased Revenue

Sustainable practices often lead to cost savings through energy efficiency and waste reduction, boosting overall revenue. According to a report by DNV, 40% of businesses have seen revenue growth from investments in supply chain sustainability.Plus, in some cases, they can also impact revenue by attracting eco-conscious customers and enhancing brand loyalty.

Environmental Benefits

Automated systems reduce emissions, energy consumption, and material waste, helping companies achieve their environmental sustainability goals. This leads to a happier, healthier workforce.

In the U.S., more than $820 billionis incurred each year for hospitalizations, injuries, medical treatments, mental health conditions, and lost wages linked to air pollution and climate change. Investments in sustainability can help reduce these costs and improve health outcomes.

Improved Analytics

Analytics can be a powerful tool for promoting sustainable and environmentally friendly industrial practices by enabling real-time monitoring, supply chain optimization, and decision-making that reduce environmental impact.

For example, Unileverhas made data analytics central to its sustainability strategy as part of its goal to make all products sustainable by 2030. By using analytics to track water and energy consumption, Unilever identifies areas of inefficiency, optimizes resource usage, and monitors progress toward sustainability goals.

This data-driven approach allows Unilever to reduce waste, conserve water, and improve energy efficiency across its operations, demonstrating how leveraging analytics can drive meaningful environmental improvements and help industries meet ambitious sustainability targets.

Bring Sustainability to Your Operations with Cyngn

Are you meeting your sustainability goals? One way to tap into automation and bring sustainability to your operations is through Cyngn's autonomous solutions. With Cyngn's fleet of AMRs, sustainability becomes a seamless part of your daily operations.

Our DriveMod-enabled vehicles-including the DriveMod Tugger, the DriveMod Forklift, and the DriveMod Stockchaser-are designed to boost efficiency and safety, which alone justifies an investment in the technology. However, they also actively support your green initiatives. By optimizing workflows, our AI-powered autonomous industrial vehicles help minimize energy consumption and waste, leading to significant cost savings and a reduced carbon footprint.