Michelin, Delta aim to lead more sustainable transportation industry

DETROIT—When it comes to the health of the planet, the world is at a crossroad. And it's turning to transportation for directions moving forward.

It makes sense that transportation would be called on to lead in the area of emissions reduction because when it comes to greenhouse gas emissions, transportation is the largest contributor, accounting for 29 percent of those emissions in 2019, according to the U.S. Environmental Protection agency.

At Motor Bella Sept. 21, Alexis Garcin, chairman and president of Michelin North America Inc., sat down with Amelia DeLuca, managing director of sustainability for Delta Air Lines Inc., to discuss what sustainability looks like both on the ground and in the air.

"Clearly, the automotive industry is going through different revolutions," Garcin said. "The first one is the electrical revolution, no doubt. The second one is a digital revolution and the third one is an environmental revolution. … One way that Michelin wants to contribute to better and cleaner mobility is by providing different tires that will be sustainable, connected and rechargeable."

To achieve this, Michelin is investing in research and development efforts that allow for more sustainable manufacturing, the use of renewable materials and implementation of technologies that help to reduce waste. Michelin, for instance, believes that 3D printing can be a key technology in the manufacturing of retreads for passenger tires—a practice it sees as "recharging."

Michelin also believes it has a leadership role in the area of sustainability. After all, tires are a critical part of how efficiently a vehicle operates.

"I think," Garcin said, "people underestimate how critical the tire might be when it comes to mobility."

To illustrate, Garcin pointed to the role tires play on EVs. Here, he said, tires go well beyond the traditional expectations of function and safety, expanding the vehicle's performance and enhancing passengers' experiences.

EVs are heavier and exhibit higher torque, Garcin said, noting that this happens when accelerating and with regenerative braking. EVs also are extremely quiet, the lack of engine leading to nearly silent performance. Finally, he said, the range of the battery is critical.

"On each of those four key components, a tire has a massive effect," Garcin said. "This is where we can really leverage the knowhow we have been building over the last 130 years to really provide OEMs with the best tires for electric vehicles."

Michelin has made strides with fuel efficiency. Reduced rolling resistance, for instance, helps OEMs meet environmental goals.

Now, the tire maker is taking that expertise further, investing in high-tech materials research and development, a move that helps auto makers extend the range of electric vehicles. In Europe, Michelin's ePrimacy achieves this goal, extending EV range by as much as 7 percent.

The Pilot Sport EV, a fitment for high performance EVs, can add as much as 37 miles to a battery's charge.

"There is a lot of application that we can use today so that we can maximize what is expected from OEMs without comprising the safety," Garcin said.

For Delta, achieving sustainability in the skies requires approaches similar to those taken by auto makers—and their suppliers—on the ground.

In the near term, fuel efficiency is key, according to DeLuca. Innovative approaches to lightweighting and aerodynamics go a long way in reducing fuel consumption, she said.

At the same time, the airline industry is seeking smarter, more sustainable fuel sources, and Delta is looking to lead in this arena.

"Just recently, the airline industry, including Delta, spent a day with the Biden administration, talking about how we were going to scale sustainable aviation fuel," DeLuca said. "Delta is committed that by 2030, 10 percent of the fuel we use will come from sustainable aviation fuel."

Sustainable aviation fuels can take a number of forms, but the most immediately promising are biofuels.

"Biofuels come from a lot of different (places)," DeLuca said. "It can come from municipal waste, for example, it can come from cooking oils, wood residue or inedible corn products.

"The benefit of it is that it comes from a real lifecycle analysis, that we are not just extracting oil, putting it on a plane and combusting it. You are creating a lifecycle where you're actually taking something, and planting it in a sustainably developed way. And then you are harvesting that crop and you are finding ways to get it close as possible to the source or use. And when you do that circular economy for biofuel, you can reduce your emissions by up to 80 percent."

Shorter, stronger chains

Like Delta, Michelin sees great benefit in shortening supply chains where possible, both in relation to its suppliers and those it supplies.

"The first level for us is to really accelerate what we call the local to local," Garcin said. "I think the time where you were considering your worldwide balance of trade is probably gone because we have to produce closer to the customers."

This approach not only benefits the company's overall environmental footprint, it makes good business sense.

"It helps you to better serve your customers and to be more reactive," Garcin said. "And, given the increased volatility of the environment, you have to do that for business reasons. At the same time, you reduce the emissions of the logistics overall."

To help ensure that it is operating at the highest sustainability levels, Michelin has set "science-based target initiatives" that will guide its operations moving forward. This is where Michelin becomes a leader in its own supply chain.

The expectations it sets for itself is the bar by which it expects its suppliers to measure up. The tire maker is partnering with and encouraging its suppliers to focus on key areas of sustainability from emissions reductions to diversity, equity and inclusion initiatives.

"By 2024 we have now an agreement with all of our suppliers, that 70 percent of them will have science-based target initiatives," Garcin said.

Delta is taking a similar approach.

"We are looking at our suppliers … with the same kind of urgency," DeLuca said. "And they feel it, too—the whole world feels it. And that's the one nice thing: There is no group that is out of balance."

Both Garcin and DeLuca emphasized that strong relationships along the supply chain are imperative for any company to achieve its sustainability goals. Communication, likewise, is important. When suppliers and customers communicate, they are better prepared to tackle some of the biggest challenges facing the industry.

"(I can ask:) 'What am I not thinking about? What are customers asking you that I should probably be aware (of)?" DeLuca said.

"For us, it's making sure our customers have a consistent experience on board that ties with the sustainability message," DeLuca said. "It is very challenging to say you are a carbon-neutral airline, but then have a plastic cup on board. But there is no solution right now to the plastic cup. If you have one, come and talk to me because we are looking for it.

"But that is where the supply chain becomes key. … Consumers are going to make their own decision about whether or not a brand is sustainable, and it may not be with the same lens that you think it's going to be. And so being consistent is the only answer."

Garcin likewise sees collaboration as necessary.

"We are all working on the same topics, we all have different levers, we are all figuring it out, but the direction is very clear with the development of mobility on one hand, while at the same time minimizing the impact on the environment.

"I think that, when you innovate, you are going to face some paradoxes. And, yes, we are not perfect, but we (are) just trying a way, we are just innovating—and that is how you make things happen. If you look for the perfect solution from day one, we are not going to be able to move the needle."