Intelligent GHG calculator for Swiss SMEs.

AI Quick Summary

A reliable and comprehensive inventory of greenhouse gas emissions (GHG) forms the basis for the development of a successful climate strategy in a company. Zelsius offers SMEs a simple and user-friendly method that appropriately considers the specific industry context using machine learning. This provides SMEs with a customized, fast and accurate way to capture GHG emissions at the product and company level. Helping SMEs achieve the goals of the national climate strategy 2050!A reliable and comprehensive inventory of greenhouse gas emissions (GHG) forms the basis for the development of a successful climate strategy in a company. However, limited financial or human resources cause, among other things, that only one out of eight Swiss SMEs knows the level of its GHG emissions. Zelsius wants to change this and is now developing an intelligent GHG calculator. It offers SMEs a simple and user-friendly method that appropriately considers the specific industry context using machine learning. Based on previous answers in the dynamic questionnaire, the calculator searches for the most likely energy consumption positions and automatically decides which questions should be asked next. This provides SMEs with a customized, fast and accurate way to capture GHG emissions at the product and company level. By comparing results to other similar SMEs and products, excessive emissions and energy data outliers can be identified and highlighted. So company-tailored energy saving potentials can be suggested.Why SMEs?GHG accounting is the first process step of a systematic emission reduction of companies and therefore a very important business activity in the coming years. Due to new rules and regulations for larger companies, with emphasis on the Corporate Sustainability Reporting Directive and the derived rules for Swiss companies on reporting and due diligence on ESG matters according to the Code of Obligations (Art. 964bis-septies), which came into force on January 1, 2022, large companies are already investing significant resources in GHG accounting. According to consulting firm ClimePartner, it is not only such large organizations - in Switzerland, around 250 companies are likely to meet these requirements - that will be affected by the reporting obligation. Those that must implement the new regulations will most likely favor suppliers and partners that also measure their GHG emissions and pursue a net-zero goal. This dynamic increases the pressure on small and medium-sized companies, which are unable to cope with the increased bureaucracy due to limited financial and human resources.Why not existing software?Existing software solutions and web calculators, which would reduce this bureaucratic burden, currently suffer from various shortcomings in the context of SMEs. First, certain software solutions cost tens of thousands of francs. Second, they are often designed only for large companies, which are subject to divergent regulations and have different structures and processes. Third, most procedures are either too generic, failing to take into account industry-specific characteristics. Or they are only applicable to a very limited scope, e.g., applicable to large farms with monocultures. Among other things, these limitations mean that only one in eight Swiss SMEs knows the level of its greenhouse gas emissions. And in addition, around one third of Swiss SMEs already describe the administrative burden as an obstacle.Machine Learning?With the intelligent GHG calculator, Zelsius aims to provide SMEs with a simple and user-friendly method that can appropriately take into account the specific industry context using machine learning. The intelligent calculator is based on a dynamic questionnaire. A dynamic questionnaire means that the questionnaire is not static, i.e., identical for all companies, but adapts to specific conditions or prerequisites. The intelligent GHG calculator uses a machine learning model to calculate the probabilities of possible emission positions based on the information already given about company context as well as cross-industry emission positions. Thus, the GHG calculator can automatically ask a next question (=emission position) that is most likely relevant for the company. This provides a customized, fast and accurate way to capture GHG emissions on product and company level.In addition, the emission positions are enriched with the indication from which data source the amount of the emission position can be taken with high probability (e.g. from financial accounting or electricity meter). As a result, the company can receive a reliable and free GHG audit shortly, while working with a specialized consulting firm for this task can take up to 3-9 weeks.For the dynamic questionnaire several machine learning models like linear regression, random forest, K-Nearest Neighbors, gradient boosting trees or association rule mining are considered. Such dynamic questionnaires, which are based on machine learning methods, are already occasionally used in other subject areas. Fournier et al. (2014) use a dynamic questionnaire to reduce questions in the assessment and identification of learning styles. Kortum et al. (2017) use this method with patients to improve disease diagnosis. And Dupriez and Solatorio (online) from the World Bank use this technique to collect accurate, rapid, and relevant poverty and household data. To our knowledge, the dynamic questionnaire has not yet been used within GHG accounting.People & Organizations behind Zelsius!During a research trip to the Massachusetts Institute of Technology in 2021, researchers and students from ETH Zurich and HSLU got to know each other and have since been working on fundamentally changing GHG management for various industries. This has resulted in the ambitious Zelsius project, which among other things aims to enable a simple and free GHG accounting process for small and medium-sized enterprises. The interdisciplinary core team consists of Lukas Hegner (Student MSc. ETH in mechanical engineering), Adina Hochuli (Research Associate with MSE in Energy & Environment), Marcel Niederberger (Research Associate with MSc. in Applied Information and Data Science) and Yannick Krabben (Research Associate with MSE in Energy & Environment). Zelsius works closely together with HSLU (Institute of Mechanical Engineering and Energy Technology & Institute of Communication and Marketing) and is supported by the ETH Students Project House program.Step by step!The intelligent GHG Calculator is the first step in the direction of our targeted online platform for GHG management. The online platform is planned to offer four core functions:GHG accounting with automatic report generation (thats where the intelligent GHG Calculator come into play)Public company profiles for the information basis of investment and procurement decisionsMediation of suitable consulting firms and solutionsInnovation platform with public API so third-party development teams can provide advanced analytics and reporting solutionsThe free and user-friendly GHG Calculator is expected to attract a large number of SMEs to the platform. In order to publish the GHG Calculator in 2024, the following work packages are planned:Development of intelligent GHG Calculator (in collaboration with HSLU & Innosuisse - working now on an application for an innovation project from Innosuisse): Analysis of business/administrative processes, needs and pain points of Swiss SMEs with regard to GHG management.Development of a standardized and system-oriented accounting framework based on typical emission positions and data sources.Identification and development of a suitable machine learning model for the intelligent GHG accounting process.Development of IT-infrastructureCreating IT-Concept for datawarehouse/-lake, pipelines/ETL-processes, front-end, uso.Setting up IT-Infrastructure and Webapplication in production environmentDevelopment of businessFinding further business partners & opportunities (e.g. Klimacharta Zug+)Finding partners & investors with relevant expertise and business networkHow Energy Lab helps?Actually, our story began thanks to the Energy Lab. It supported us during the research trip to Boston, where we learned how to tackle big problems and how business aspects should be considered. Even now, two years later, we have already benefited from interesting conversations about possible collaborations at the Pitch&Enrich event.In addition to valuable contacts, we are looking for initial funding that will enable the development of our IT infrastructure. We are in contact with young data engineers and software developers, whom we would like to meet with a decent return (in the form of a salary).

Project Idea Metadata

• Project Idea Name: Intelligent GHG calculator for Swiss SMEs.
• Date: 3/7/2023 8:31:00 PM
• Administrators:
  • Yannick Krabben

Project Idea Description

Helping SMEs achieve the goals of the national climate strategy 2050!

A reliable and comprehensive inventory of greenhouse gas emissions (GHG) forms the basis for the development of a successful climate strategy in a company. However, limited financial or human resources cause, among other things, that only one out of eight Swiss SMEs knows the level of its GHG emissions. Zelsius wants to change this and is now developing an intelligent GHG calculator. It offers SMEs a simple and user-friendly method that appropriately considers the specific industry context using machine learning. Based on previous answers in the dynamic questionnaire, the calculator searches for the most likely energy consumption positions and automatically decides which questions should be asked next. This provides SMEs with a customized, fast and accurate way to capture GHG emissions at the product and company level. By comparing results to other similar SMEs and products, excessive emissions and energy data outliers can be identified and highlighted. So company-tailored energy saving potentials can be suggested.

Why SMEs?

GHG accounting is the first process step of a systematic emission reduction of companies and therefore a very important business activity in the coming years. Due to new rules and regulations for larger companies, with emphasis on the Corporate Sustainability Reporting Directive and the derived rules for Swiss companies on reporting and due diligence on ESG matters according to the Code of Obligations (Art. 964bis-septies), which came into force on January 1, 2022, large companies are already investing significant resources in GHG accounting. According to consulting firm ClimePartner, it is not only such large organizations - in Switzerland, around 250 companies are likely to meet these requirements - that will be affected by the reporting obligation. Those that must implement the new regulations will most likely favor suppliers and partners that also measure their GHG emissions and pursue a net-zero goal. This dynamic increases the pressure on small and medium-sized companies, which are unable to cope with the increased bureaucracy due to limited financial and human resources.

Why not existing software?

Existing software solutions and web calculators, which would reduce this bureaucratic burden, currently suffer from various shortcomings in the context of SMEs. First, certain software solutions cost tens of thousands of francs. Second, they are often designed only for large companies, which are subject to divergent regulations and have different structures and processes. Third, most procedures are either too generic, failing to take into account industry-specific characteristics. Or they are only applicable to a very limited scope, e.g., applicable to large farms with monocultures. Among other things, these limitations mean that only one in eight Swiss SMEs knows the level of its greenhouse gas emissions. And in addition, around one third of Swiss SMEs already describe the administrative burden as an obstacle.

Machine Learning?

With the intelligent GHG calculator, Zelsius aims to provide SMEs with a simple and user-friendly method that can appropriately take into account the specific industry context using machine learning. The intelligent calculator is based on a dynamic questionnaire. A dynamic questionnaire means that the questionnaire is not static, i.e., identical for all companies, but adapts to specific conditions or prerequisites. The intelligent GHG calculator uses a machine learning model to calculate the probabilities of possible emission positions based on the information already given about company context as well as cross-industry emission positions. Thus, the GHG calculator can automatically ask a next question (=emission position) that is most likely relevant for the company. This provides a customized, fast and accurate way to capture GHG emissions on product and company level.

In addition, the emission positions are enriched with the indication from which data source the amount of the emission position can be taken with high probability (e.g. from financial accounting or electricity meter). As a result, the company can receive a reliable and free GHG audit shortly, while working with a specialized consulting firm for this task can take up to 3-9 weeks.

For the dynamic questionnaire several machine learning models like linear regression, random forest, K-Nearest Neighbors, gradient boosting trees or association rule mining are considered. Such dynamic questionnaires, which are based on machine learning methods, are already occasionally used in other subject areas. Fournier et al. (2014) use a dynamic questionnaire to reduce questions in the assessment and identification of learning styles. Kortum et al. (2017) use this method with patients to improve disease diagnosis. And Dupriez and Solatorio (online) from the World Bank use this technique to collect accurate, rapid, and relevant poverty and household data. To our knowledge, the dynamic questionnaire has not yet been used within GHG accounting.

People & Organizations behind Zelsius!

During a research trip to the Massachusetts Institute of Technology in 2021, researchers and students from ETH Zurich and HSLU got to know each other and have since been working on fundamentally changing GHG management for various industries. This has resulted in the ambitious Zelsius project, which among other things aims to enable a simple and free GHG accounting process for small and medium-sized enterprises. The interdisciplinary core team consists of Lukas Hegner (Student MSc. ETH in mechanical engineering), Adina Hochuli (Research Associate with MSE in Energy & Environment), Marcel Niederberger (Research Associate with MSc. in Applied Information and Data Science) and Yannick Krabben (Research Associate with MSE in Energy & Environment). Zelsius works closely together with HSLU (Institute of Mechanical Engineering and Energy Technology & Institute of Communication and Marketing) and is supported by the ETH Students Project House program.

Step by step!

The intelligent GHG Calculator is the first step in the direction of our targeted online platform for GHG management. The online platform is planned to offer four core functions:

• GHG accounting with automatic report generation (thats where the intelligent GHG Calculator come into play)
• Public company profiles for the information basis of investment and procurement decisions
• Mediation of suitable consulting firms and solutions
• Innovation platform with public API so third-party development teams can provide advanced analytics and reporting solutions

The free and user-friendly GHG Calculator is expected to attract a large number of SMEs to the platform. In order to publish the GHG Calculator in 2024, the following work packages are planned:

Development of intelligent GHG Calculator (in collaboration with HSLU & Innosuisse - working now on an application for an innovation project from Innosuisse):

• Analysis of business/administrative processes, needs and pain points of Swiss SMEs with regard to GHG management.
• Development of a standardized and system-oriented accounting framework based on typical emission positions and data sources.
• Identification and development of a suitable machine learning model for the intelligent GHG accounting process.

Development of IT-infrastructure

• Creating IT-Concept for datawarehouse/-lake, pipelines/ETL-processes, front-end, uso.
• Setting up IT-Infrastructure and Webapplication in production environment

Development of business

• Finding further business partners & opportunities (e.g. Klimacharta Zug+)
• Finding partners & investors with relevant expertise and business network

How Energy Lab helps?

Actually, our story began thanks to the Energy Lab. It supported us during the research trip to Boston, where we learned how to tackle big problems and how business aspects should be considered. Even now, two years later, we have already benefited from interesting conversations about possible collaborations at the Pitch&Enrich event.

In addition to valuable contacts, we are looking for initial funding that will enable the development of our IT infrastructure. We are in contact with young data engineers and software developers, whom we would like to meet with a decent return (in the form of a salary).

A reliable and comprehensive inventory of greenhouse gas emissions (GHG) forms the basis for the development of a successful climate strategy in a company. Zelsius offers SMEs a simple and user-friendly method that appropriately considers the specific industry context using machine learning. This provides SMEs with a customized, fast and accurate way to capture GHG emissions at the product and company level.