Empowering AI to optimise eco-design

Dialogue

Sylvie: Good morning and thank you all for joining this roundtable discussion despite the relatively short notice. I received the internal audit report last week and I would like to congratulate you for the great work you are doing. Nevertheless, it is our mission is to further enhance our eco-design practices. It has come to my attention that the strategic integration of AI is the way to go. Laurent, could you provide a brief overview of our current eco-design process and the challenges we face?

Laurent: Certainly, Sylvie. Our eco-design practices currently emphasise reducing carbon footprints, optimising material usage, and ensuring sustainability. However, our current challenge lies in the creativity stage. We lack a standalone AI solution for generating innovative packaging designs based on various specifications.

Sylvie: That’s a crucial point. Bernard, from your perspective as an IT consultant, what AI solutions are available in the market that could address Laurent’s needs?

Bernard: Laurent’s requirements align with the emerging trends in AI for creative design. There are AI tools that can generate design proposals based on specified criteria. We can explore options that consider material specifications, sustainability criteria, and aesthetic preferences simultaneously.

Jeanne: I believe integrating AI in our design process could also impact our supply chain. Bernard, how can AI enhance the coordination between us and our suppliers?

Bernard: AI can help optimise inventory management, predict demand, and enhance communication between suppliers and manufacturers. It ensures that the raw materials align with sustainability criteria and reduces waste in the supply chain.

Sylvie: Great suggestion, Bernard. Jeanne, how does the suggest aligning with the sustainability goals of our suppliers?

Jeanne: It’s promising. Predictive analytics through AI can help us plan production more efficiently, reducing waste and ensuring our materials meet Posson’s eco-friendly standards.

Laurent: Sylvie, I’ve been exploring AI solutions to enhance our transparency and accountability. We’ve developed GREENPACK for carbon footprint tracking, but I seek AI for intelligent process automation. Bernard, any insights on this?

Bernard: Certainly, Laurent. AI can automate processes, measure, and control eco-design parameters, optimising them autonomously. It streamlines routine tasks, ensuring efficiency and minimising environmental impact.

Sylvie: While AI holds immense potential, we need to consider ethical and regulatory aspects. Laurent, any thoughts on how we can ensure responsible AI integration?

Laurent: We’re committed to ethical practices, Sylvie. We need to adapt intellectual property legislation, ensure data security, and train our workforce. Moreover, transparency and accountability must be embedded into AI algorithms.

Bernard: Sylvie, regulatory compliance is crucial. Regular monitoring of updates will be necessary to align with evolving standards. A dedicated system for staying informed about regulatory changes is essential.

Sylvie: Thank you all for your valuable insights. I suggest we explore all your suggestions to ensure that AI integration aligns with our eco-design goals and ethical standards. This could be a transformative journey for Posson Packaging and the entire industry. I propose we have a meeting same time next week to discuss your findings. Meanwhile, our goal is not just to integrate AI but to maintain our Vitrine Industrie du Futur label and win next year’s European Carton Excellence Award. Laurent let’s start with you. What specific steps can we take to optimise our eco-design process and make it stand out?

Laurent: To ensure we stand out, we need to prioritise the creative aspect of eco-design. Bernard mentioned AI solutions for creativity; I’ll delve deeper into those and ensure they align with our sustainability goals.

Sylvie: Excellent. Bernard, could you provide an overview of potential AI solutions that could elevate our eco-design creativity?

Bernard: Certainly, Sylvie. I’ll conduct a thorough market analysis to identify AI tools that specifically cater to creative eco-design. This will include tools for generating innovative packaging designs based on sustainability criteria and customer preferences.

Sylvie: Jeanne, your role is crucial in ensuring our supply chain aligns with sustainability. How can we optimise this process to secure our position as the most eco-friendly company?

Jeanne: I’ll collaborate closely with our suppliers and explore AI-driven solutions that enhance the sustainability of our supply chain. It includes AI tools for optimising inventory, reducing waste, and ensuring our raw materials meet the highest eco-friendly standards.

Sylvie: Laurent, if you don’t mind, I’ll task you with overseeing the coordination between our eco-design and the supply chain. Ensure that the integration is seamless and enhances the overall sustainability of our packaging.

Laurent: Absolutely, Sylvie. I’ll ensure a close collaboration between our eco-design team and our suppliers to create a streamlined, sustainable process.

Sylvie: Bernard, besides creativity, I want you to explore AI solutions for intelligent process automation. We need to automate and optimise our eco-design processes for maximum efficiency.

Bernard: Understood, Sylvie. I’ll focus on identifying AI tools that can autonomously measure, control, and optimise our eco-design processes while keeping the human touch intact.

Sylvie: Fantastic. Let’s also not forget the importance of ethics and regulations. Laurent, ensure that all AI integrations align with our ethical standards and comply with the latest regulations.

Laurent: Certainly, Sylvie. We’ll establish clear guidelines for ethical AI use and stay informed about any regulatory updates.

Sylvie: Team, winning this award requires collaboration and innovation. Let’s work together to showcase Posson Packaging as a leader in sustainable packaging. Thank you all for your dedication to our eco-friendly mission. See you next meeting.

Posson Packaging’s current eco-design-related sustainability goals

Founded in 1942, Posson Packaging is an independent, family-owned company in the Sarthe region of France that designs and manufactures recyclable folding corrugated carton-based packaging for its industrial customers. Its mission statement is ‘Eco-design to responsibly produce recyclable packaging and deliver the right products to our industrial customers’. The company has always been deeply rooted and never ceased to develop militant social and environmental values. In 1996, Posson Packaging’s leadership embarked on an approach based on five pillars of corporate social responsibility (CSR): social, economic, environmental, governance and territorial. The company publishes an annual CSR report and information on its carbon footprint and follows a responsible purchasing charter per UN Global Compact criteria. It is a Pays Sabolien development club member in charge of the club’s environmental workshop, which brings together 120 companies, government bodies, secondary schools and high schools to discuss themes on sustainability. It is also a member of the European Carton Makers Association (ECMA), which provides its members with standard communication tools to promote cardboard’s recyclable and environmental aspects (Posson, 2024).

Posson Packaging’s eco-design services

Posson Packaging offers eco-designed packaging to its customers. The company is committed to designing and manufacturing packaging that respects the environment. This preventive approach assesses the impact of packaging throughout the product life cycle by using, for example, recycled cardboard from sustainably managed forests, using vegetable-based inks (they hold the Imprim'Vert label and PSO certification), optimising the quantities of glues and adhesives used, all of which are certified food-safe, and optimising packaging size and volume (i.e. reducing the packaging format as much as possible, and lowering the weight of the cardboard, while maintaining the same mechanical properties).

Posson Packaging also offers eco-design cardboard packaging consulting services to help its customers minimise the carbon footprint associated with cardboard production and transportation. It advises its customers on choosing the most suitable cardboard based on the products’ weight and environmental constraints. It also advises on eco-design based on volume so that packaging can be perfectly mechanised at high speeds. It holds at least seven professional certifications, guaranteeing compliance with all current technical and regulatory standards and requirements throughout the packaging life cycle (Posson, 2024).

Posson Packaging’s eco-design ambition

In its quest for green growth, Posson Packaging constantly seeks to guarantee the traceability of its supplies to end customers and promote the sustainable management of its resources. Its ambition is to reduce material consumption by cutting down grammage through eco-design. It includes implementing a 0-waste policy, recycling 99% of the company’s waste, reusing at least 96% of the company’s waste, continuously reducing its CO2 emissions (it was reduced by 46% between 2009 and 2018), using vegetable-based inks, reducing water wastage, electricity and fuel consumption, and adopting carpooling and hybrid fleets for transportation (Posson, 2024).

Posson Packaging reports its annual carbon emissions. Each decision made by the company is audited and determined by the resulting carbon emissions. For example, when Laurent wants to buy a new machine, his investment decision is primarily based on the resulting carbon emissions based on ADEME criteria before and after the investment.

Posson Packaging’s current eco-design practices – The COO’s view

The Chief Operating Officer (COO) and Sustainability Performance Director (SPD) of Posson Packaging, Laurent Dumont, believes packaging design in the company revolves around the principles of eco-design, aligned with its commitment to environmental sustainability (Liu and Bawack, 2024).

Design: He aims to design the packages as compact as possible to avoid empty spaces. They also try to use the lightest material possible. The eco-design process begins with a comprehensive briefing session with each customer, where they delve into their specific requirements and preferences. Simultaneously, his team considers internal manufacturing requirements to ensure a seamless production process. One key objective in the company’s design phase is to create cardboard packaging that meets customer specifications and adheres to company guidelines, especially in minimising material usage by weight. It aligns with Posson Packaging’s eco-design philosophy and contributes to cost savings for the company and the customer. His team creates blank prototypes, which are then proposed to the customer for validation. Once the design is approved, his team integrates any customer-specific elements and validates a digital proof, ensuring accuracy before moving to the production phase.

Sourcing: Their primary sourcing criteria is the sustainability practice of their supplier. They only work with suppliers who respect a strict sustainability charter. Based on this restricted list of suppliers, they prioritise working with the one closest to the firm, even if it may be more costly for the firm. He makes sure he explains these reasons to his customers.

Manufacturing: In line with Posson Packaging’s commitment to environmental responsibility, the production process focuses on reducing the carbon footprint. It includes measures such as minimising voids in packaging, reducing overall packaging weight, and minimising waste at every production stage. His goal is to make the manufacturing process as short as possible. They follow lean manufacturing processes. He also tries as much as possible to minimise weight in manufacturing because more weight means more waste in raw materials. However, all waste from the manufacturing process is recycled back into the process, forming a closed loop.

Packaging: The idea is to avoid packaging packages as much as possible. However, if unavoidable, they try to optimise the packing process as much as possible by minimising the number of packages used to protect their products. For example, they would try to put as much cardboard as possible in a single protective cardboard container to optimise the space and reduce the number of trips needed for delivery to customers. They do not manufacture these corrugated containers; they buy them because they are not equipped to manufacture them.

Distribution: They do not directly supply their products out of France. Even within France, his strategy is to be territorial – the best supplier within its specific territory – Northwest of France. Today, 80% of their revenue is generated by customers located less than 200 kilometres (km) from their plant. Laurent says Posson Packaging strategically limited its customers to those close to the plant to reduce its carbon footprint. Also, he noticed that the packaging market is very resilient because customers hardly change suppliers. For example, suppose a customer asks them to supply in Germany, the fact of purchasing raw materials from Germany (closeness to source). In that case, manufacturing and transporting the product back to Germany has high financial and environmental costs that would make their offer less attractive than that of a company based in Germany. The packaging Posson Packing offers (e.g. food packaging) is so inexpensive that customers would hardly seek suppliers far from their regions to benefit from more competitive pricing. Since packages are not the main products of their customer but are necessary for their customers to commercialise their products, they would generally prioritise suppliers with the shortest delivery times. Also, customers will prioritise a local supplier to gain in reactivity if there are issues with the packages supplied. Furthermore, financial and environmental costs will be too high for customers sourcing packages from distant places since the packages are inexpensive. Thanks to this strategy and market constraint, Posson Packaging is highly competitive in the local market but not so much beyond.

Several luxury brands have approached Posson Packaging with plants less than 300 km from theirs to produce their packaging. Although they are well-equipped to meet such demands, they refuse to meet them because they often require materials that are bad for the health of workers and the environment. In contrast, Posson Packaging only uses sustainable materials whenever possible. For example, Laurent claims that luxury brands that have approached them often requested that UV ink be used for package printing. In contrast, Posson Packaging only uses vegetable-based ink because it is a more sustainable choice.

Consumer use: Posson Packaging is a business-to-business (B2B) company that does not directly influence how consumers use the packages they develop. However, they try to make all their packages reusable by design. For example, they make reusable/refillable cotton bud packages for one of their clients. They try to encourage their customers to communicate and encourage these reusable principles, but Laurent acknowledges that their customers do not often follow this recommendation. Thus, his solution is that Posson tries, whenever possible, to design packages that consumers will naturally want to reuse. For example, Posson Packaging designs catalogue packaging for a popular multinational furniture store. Generally, consumers tear and dispose of such packaging. However, Posson Packaging proposed stylish zipped packaging so consumers can give them a second life after removing the catalogue, like using them as a folder, pencil box, or ruler. This information is also communicated to the final consumer on the box to encourage this reuse behaviour.

Post-consumer use: Posson Packaging also tries to produce reusable packaging whenever possible. Laurent says all packages are fully recyclable for post-consumer use since they are made of cardboard and vegetable-based ink. At the company level, all company waste is easily resold to carton manufacturing companies, who use them to produce recycled cartons that are sold back to Posson Packaging. This information is fully traced by Posson Packaging, who also communicates this to customers through the universal recycling symbol (Möbius strip) on each package.

Posson Packaging’s digital transformation ambition

The Chief Executive Officer (CEO) of Posson Packaging, Sylvie Casenave-Péré, is particularly committed to exploring innovative solutions for eco-design and believes that leveraging Industry 4.0 technologies could enhance the company’s eco-design processes help it meet its sustainability goals and give it a competitive edge in the market. As one of the world’s best-performing CSR organisations and winner of the Vitrine Industrie du Futur label by the French Ministry of Industry in June 2019, Posson Packaging is pursuing its responsible Industry 4.0 transformation by constantly innovating both technologically and digitally through connected production equipment, real-time digitalised information, and robotisation and robotisation to reduce drudgery and improve productivity (Liu and Bawack, 2024).

AI is increasingly becoming a driving force in the ever-evolving landscape of business software, particularly in production processes. However, a notable absence persists in design, quotations, and management control. Despite the lack of algorithms and technologies, there’s a growing trend towards AI integration in business software through version updates. These developments have put Posson Packaging at a critical juncture where it needs to decide whether and how to invest in such AI to enhance its eco-design practices. Sylvie is aware of the potential benefits of this Industry 4.0 technology in the eco-design process, including improved material selection, energy efficiency, and waste reduction. However, she is also concerned about AI’s challenges regarding ethical and regulatory considerations. Determined to remain a market leader from a sustainability standpoint, she has tasked Laurent with championing and overseeing possibilities of integrating AI into the company’s eco-design and product development processes effectively.

Information technology for transparency and accountability in eco-design

Laurent believes that for Posson Packaging to meet its sustainability goals, it must try to make its customers share their vision by encouraging them to adopt sustainable packaging practices. In this light, the main challenge his team faced until recently in their eco-design process was the inability to assess and predict the carbon footprint of each package designed and produced. This challenge made it difficult for him to convey the advantages of their eco-design approach transparently and factually to customers, thus making it harder for them to involve their customers in their carbon reduction efforts (Liu and Bawack, 2024).

Laurent noticed that whenever they tried using their sustainability efforts as an argument to convince potential customers to purchase Posson Packaging, customers did not care and only focused on the economic value of Posson Packaging’s offer. The reason for this disregard was that Posson Packaging has no hard facts to justify neither how Posson Packaging nor the customer is being environmentally friendly through their collaboration. It seemed like just another company greenwashing attempt to customers, and they could not care less. Therefore, Laurent’s challenge was to find an effective way of proving to customers that their collaboration could yield economic and environmental benefits. To this end, Laurent and his team embarked on a journey to develop a digital tool called GREENPACK.

GREENPACK is a tool developed internally over 4 months to help Posson Packaging trace and account for its carbon footprint reduction efforts objectively and support package design decisions. When a customer places an order, data on the entire product lifecycle is entered into GREENPACK, which generates a carbon score on a predetermined scale (e.g. quantity of products ordered, type of material used, quantity of material used, source of material, time taken to complete the production, energy consumed, transportation distance). The scores used in GREENPACK are based on sustainability data, factors, and measurement scales from the French Agency for Ecological Transition (ADEME). Posson Packaging has a strong experience with the ADEME framework since they have been using it as a guideline for their sustainability report published annually since 2008.

Based on this information, his team attempts to propose a new design that is as effective but with a better carbon score (e.g. from D (not so environmentally friendly) to B (very environmentally friendly). The customer is also informed of the precise quantity of CO2 emissions they prevent by adopting the recommended packaging. These hard facts have proven effective in making customers more inclined to work with Posson Packaging and engage in environmentally friendly packaging decisions because they can quantify the impact of their choices.

GREENPACK is also connected to the central production unit that captures data on carbon emissions throughout the production process in real-time, generating a final report and actual carbon score of each customer’s project or order, which is shared with the customer, alongside benchmarks (e.g. equivalence from Netflix data centres in terms of the number of movies watched) to facilitate their ability to visualise their impact.

Customers often fear that accepting more sustainable packaging designs implies higher financial costs. Laurent argues that it is often a false assumption in the context of Posson Packaging because they aim for lightweight packages, using less raw material and energy, often leading to lower prices. He has made it a mission to help his customers understand that going green can be equally financially beneficial.

GREENPACK has since been critical for Posson Packaging’s marketing strategy. It provides a strong competitive advantage because it offers an additional free service to its customers, which they can leverage for their marketing strategies and CSR reporting.

Integrating AI into the eco-design process

Steps taken by Laurent to find the right AI solution

Laurent is mobilising his network in Pays de la Sabolien Club and the International Packaging Group Association (IPG) to find the best AI solutions for his problems. These professional networks share information on the latest AI developments in their domain.

Laurent’s current efforts have proven that the significance of AI in business software extends beyond efficiency; it has the potential to reduce the carbon footprint induced by lead time significantly. The emphasis here is on speed and agility, which are crucial for businesses seeking to operate in a dynamic and fast-paced environment. However, he envisions that AI’s true potential in eco-design lies in optimising prototypes that are more economical in terms of material consumption and capable of saving time and enhancing creativity. Integrating AI into the company’s eco-design process could revolutionise decision-making processes at the eco-design level by incorporating carbon scores and value analysis criteria.

Unfortunately, challenges persist, especially regarding the effectiveness of AI in meeting creativity criteria. While the technology excels in optimising processes and analysis speed, it falls short in fostering creativity. This gap underscores the importance of bridging the divide between efficiency gains and creative needs in eco-design. Thus, identifying the right AI tools to create prototypes is crucial for Posson Packaging. Laurent is seeking AI to generate design proposals based on technical specifications, offering a blend of efficiency and creativity. This approach streamlines the design process and ensures that AI aligns with the company’s sustainability goals and serves as a guiding force in achieving environmental and aesthetic goals.

Ethical and regulatory considerations of integrating AI in eco-design

In the dynamic realm of AI-driven eco-design, the ethical and regulatory landscape is pivotal in shaping responsible practices. Laurent believes the journey begins with a profound respect for active patents and a commitment to integrating the company’s strategic orientations, including the nature and origin of raw materials. As part of the ethical framework, Posson Package has prepared an annual report addressing corruption and business ethics. It also has joint initiatives like the UN’s Global Compact, which underscores a commitment to global ethical standards, fostering a responsible and transparent business environment. Laurent also ensures the upstream verification of the company’s information systems for compliance with data security standards, ensuring that the utilisation of AI in sustainable packaging design adheres to stringent data protection protocols, safeguarding sensitive information throughout the process (Liu and Bawack, 2024).

Recognising the transformative potential of AI in sustainable design, Laurent would also like to organise training and education programs that aim to cultivate the necessary skills within his workforce, fostering a deep understanding of how to leverage AI effectively for their eco-friendly packaging solutions. He also encourages a collaborative approach among his workforce by creating platforms to share data on packaging materials, successful designs, and lifecycle analyses. This collective effort would enhance AI’s capacity to generate innovative solutions by drawing on shared knowledge and experiences.

However, he finds an urgent need to adapt intellectual property legislation to incentivise and protect AI-powered sustainable packaging innovations. This adjustment would help strike a balance between fostering innovation and ensuring fair protection for those contributing to advancing eco-friendly design through AI.

Ethical considerations extend to AI developers, urging them to embed transparency and accountability into their algorithms. It not only ensures the ethical alignment of sustainable design practices but also promotes environmental values, fostering trust in the capabilities of AI.

Moreover, regulatory frameworks can play a significant role in steering companies toward responsible practices. Creating incentives for businesses to adopt circular economy principles in their design processes, especially when leveraging AI, becomes a key regulatory focus. This incentivisation mechanism aims to optimise packaging lifecycles, aligning with sustainability goals and contributing to a more environmentally conscious approach in the industry.