From data challenges to sustainable solutions
Empowering SMEs to reduce carbon emissions
Dr Franziska Sohns is part of the Faculty of Business and Law at ARU. She's also one of the co-founders of our Behavioural Insights Laboratory.
As a researcher, Franziska focuses on micro-economic decision-making processes. With the BrewAI project, she explored the challenges faced by smaller enterprises – in this case breweries – who are looking to reduce carbon emissions, 'build in' sustainability and improve efficiency.
Here, Franziska details the research process, design and outcomes.
Background and motivation
BrewAI is an innovative project developed by research colleagues at ARU, aimed at addressing the significant challenges faced by small and medium-sized enterprises (SMEs) in reducing their carbon emissions. These businesses often struggle with capturing and analysing relevant data due to limited data literacy, time constraints, and financial resources. Without reliable data, SMEs risk making uninformed decisions about their carbon footprint, leading to inefficiencies and missed sustainability opportunities.
We designed an app to automate and simplify carbon data capture and analysis for SMEs. With existing research links to the brewing industry, breweries were chosen as the pilot sector, and BrewAI was born. Brewing is an energy-intensive industry dominated by SMEs, making it an ideal test case for BrewAI.
BrewAI contributes to the field of organisational studies by exploring how SMEs respond to regulatory pressures and technological change. The research aligns with three key areas: entrepreneurial resilience, technology adoption and digital literacy, and the 'twin transition' of climate and technology.
- Entrepreneurial resilience: the research examines how SMEs build adaptive capacity in response to changing climate regulations, sustainability expectations, and technological advancements. BrewAI removes barriers by providing an accessible, automated solution that integrates carbon tracking into existing business processes.
- Technology adoption and digital literacy: many SMEs, including breweries, lack the technical expertise to integrate AI-driven solutions into their operations. BrewAI provides insights into the drivers and blocks to digital adoption, ensuring that technology is user-friendly and practical for businesses with limited technical knowledge.
- Twin transition: this refers to the simultaneous push for climate sustainability and technological innovation. BrewAI explores how SMEs can leverage automation and AI to achieve sustainability goals while improving operational efficiency.
"Without reliable data, SMEs risk making uninformed decisions about their carbon footprint, leading to inefficiencies and missed sustainability opportunities."
Research process
The research follows an action research and co-development approach, ensuring that BrewAI is developed in close collaboration with brewers. The methodology involves ongoing feedback loops to refine the app’s functionalities.
The project began with qualitative interviews with brewery owners and production managers to understand their internal production processes, sustainability efforts, and challenges related to carbon tracking. Based on these insights, we developed BrewAI to align with the operational needs of breweries. The app was then introduced to breweries for beta testing, and user feedback was collected to improve its features.
Findings and impact
Our research revealed several key insights.
- Interest in carbon reduction among SMEs is driven more by passion than business incentives, as there are no significant policy incentives or regulatory pressures in the UK yet.
- Energy use within breweries is complex, with many operating multiple meters, making data collection challenging.
- There is a significant intention-behaviour gap, where brewers express interest in carbon reduction but struggle to take concrete action.
Collaboration and industry partnerships
A key partner in this research has been the London Brewers Alliance (LBA), a network of independent breweries in London. LBA provided opportunities to introduce BrewAI at their meetings, engage directly with brewers, and gain valuable industry feedback.
"We designed an app to automate and simplify carbon data capture and analysis for SMEs. Ultimately BrewAI can play a role in policy changes, industry adoption, and regulatory support for SMEs."
Future directions
Looking ahead, we plan to expand BrewAI beyond the UK, engaging with more breweries across the EU. We are also applying for further funding to refine BrewAI’s technology and scale adoption. Beyond brewing, we aim to identify other industries where BrewAI’s carbon tracking capabilities could be applied, such as food and beverage manufacturing, hospitality and other energy-intensive industries that face similar sustainability challenges.
Long-term impact and vision
Ultimately BrewAI can play a role in policy changes, industry adoption, and regulatory support for SMEs. As carbon reporting regulations evolve, BrewAI could serve as a Regulatory Technology (RegTech) solution, helping SMEs comply with carbon reporting regulations by reducing the administrative burden. Without accessible tools, SMEs may struggle to keep up with increasing regulatory demands, potentially putting them at risk of financial strain or business closures. By bridging this gap, BrewAI supports SMEs in their transition toward net-zero emissions.
