Magazine | BBR - April 2022 by The Boston Business Review

Highly sustainable operation overseas

April 2022 | www.thebostonbr.com

PARADISUS CANCUN Delivering the experience of a lifetime AI IN RISKS AND OPPORTUNITIES by Ph.D. José Moscoso

INCREASED VALUE BY SURPASSING THE CHALLENGES

OF AN ENTIRE CONTINENT

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EDITOR’S LETTER April 2022

Welcome once again to a new

Back in the Americas, Paradisus

issue of the Boston Business Review,

Cancun displays all of the attributes

as we bring coverage to a couple of

that make it one of the top properties in

outstanding operations overseas, one

Meliá Hotels International’s elite line.

of them -AB InBev Africa- gracing our

Also, don’t miss our AI contents,

cover, while we also learn about Grupo

featuring Ph.D. José Moscoso, an

Bimbo’s operations in the other side of

insider and a reference in the Food &

the Atlantic Ocean through their Bimbo

Beverage industry in Latin America.

Europe-Africa-Asia division.

Thanks for reading and sharing!

Mateo Rafael Tablado, Editor en jefe de The Boston Business Review Email: rafael.tablado@thebostonbr.com

w w w.the b os tonb r.com

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WHO WE ARE Managing Director

Finance Director

Jassen Pintado

Christina Nichole

Creative Director

Social Media Director

Omar Rodríguez

Maria Elena Gastelum

Editor in Chief

Content Coordinator

Rafael Tablado

Alicia Barrantes

Editor for Brasil

Project Directors

Flavia Brancato

Ana Macfarland David Alarcon

Translations

Giuseppe Modenesi

María Murgui

Lucy Verde Marcelo Modenesi

Ta b l e o f C o n t e n t s

12.

AI for Risk & Opportunities Management in the beverage industry

by PhD José Moscoso

24. Mining & IoT

68.

36.

86.

50.

98. w w w.the b os tonb r.com

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Artificial Intelligence for Risk & Opportunities Management in the beverage industry

Written by Ph.D. José Moscoso, executive in the food and beverage industry

Ph.D. José Moscoso

any businesses

little disruption to radically change

in the beverage

the rate of growth acceleration.

industry use to

Wouldn’t it be useful to rely on more

separate a few days

in-depth analyses of trends and

yearly to gather

changes in consumer behavior, for

the management team and promising

example, to objectively validate the

talents to carry out their strategic

bases of our proposals?

planning kick off meeting. High levels

This is a great opportunity to embed

of participation and involvement are

a culture in the use of technological

achieved here, gaining adherence to

models and tools such as Artificial

what will become the course of action

Intelligence (AI) in the strategic

during the next three or five years.

planning cycle and the management of

I have taken part in many of these

key factors of success, incorporating

workshops in different roles, in

deeper levels of analysis and

which, all the participants are part

continuous feedback objectively.

each of a different team, and the

discussion begins with Risks (or

ARTIFICIAL INTELLIGENCE (AI)

Threats) and Opportunities that could

Big Data, Data Analytics, Machine

potentially impact the business from

Learning, Internet of Things, Robotic

different perspectives: economic,

Process Automation, Augmented

social, technological, industrial, and

Reality (AR)... These and other

marketwise, among others. However,

Artificial Intelligence techniques

compared to the previous year, we are

based on analysis of structured and

able to notice few significant changes

unstructured data through information

in the outputs of these analyses and

systems and technological equipment

April 2022

Te c h n olo g y

are a powerful source of competitive advantage when applied integrally in the strategic management of business. This article aims to drive us to design a focused model able to assist in different strategic purposes, avoiding falling into “paralysis by analysis” or “over-engineering”. A MODEL FEASIBLE TO APPLY IN THE INDUSTRY OF BEVERAGE AND FOODS I had the opportunity to lead the

- Ph.D. José Moscoso is an expert in the Food and Beverage for massive consumption industry

Corporate Comptroller department of a Multi-Latin Business Group

dive review of the processes, the

diversified in food and beverages,

conclusions and recommendations

among other business units, with a

were based on sample analysis,

combined turnover of around $3.5

since it was humanly impossible to

billion. The management team was

work at population data level and

comprised, mostly, of engineers from

even more difficult to interrelate

different specialties. The team’s work

them with databases of other

was based on annual audit plans

processes or external variables. In

covering around 10 engagements per

this context, it was key to introduce

year developed sequentially. However,

new technological concepts and

despite having carried out a deep

analysis methods that allowed us to

w w w.the b os tonb r.com

Ph.D. José Moscoso

move to a predominantly preventive

planning. It is key to have

approach in order to achieve strategic

the commitment from Senior

processes in a continuous and deep

Management, since it’s necessary

manner.

to select a team that will lead the

The applied “prediction” model

construction of the relevant data

allowed us to find ourselves a step

model which will enable us to support

forward. Careful planning was

the achievement of the strategic

necessary for such a purpose, as

objectives. It is important to count

well as gaining a level of maturity in

with an expert leader in business

data management. The beverage and

processes and a specialized team

foods industry faces the challenge of

to work on artificial intelligence

seeking the benefits resulting from

techniques and tools. A budget will be

the application of artificial intelligence

necessary for training and analytical

and technological concepts in the

software, however, the expected

commercial and back office areas,

results should bring a positive return

to join the efforts they make in the

on investment and mitigation of high-

automation of manufacturing and

impact business risks.

supply chain processes, in order

Targeting consists of identifying

to take advantage of its integration

only those factors that are key to the

and synergies.

success or failure of our strategic initiatives and that will have the

WHAT STAGES DO I RECOMMEND FOLLOWING TO IMPLEMENT A NEW MODEL BASED ON ARTIFICIAL INTELLIGENCE? The Preparation stage involves

April 2022

greatest impact on the development of our model. For example, in the beverage industry, knowing and managing “consumer preference”

Te c h n olo g y

Model Stages 1.Preparation

5. Continuous Feedback

4. Machine Learning

2.Targeting

3. Data Analytics

is a key success factor. The targeting

or in public access sources. In our

task will help us “select” the variables

example, consumer preferences

that determine the behavior of our

can be influenced by compound

key success factor to be analyzed.

variables such as: sensitivity to prices,

If we do not have internal data,

environmental awareness, nutrition

we must look for it in the market

and health, among others.

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Ph.D. José Moscoso

Data Analytics becomes the

from these analyzes lies in the greater

next filter. We will analyze large

precision achieved to understand

volumes of data (“Big data”) of the

behaviors and the interdependence

variables identified for the selected

of the variables analyzed, which

key factor, which will be organized

allows us to plan an offer with added

to have structure (“Dataframe”) and

value for the consumer and greater

consistency. At this stage, we will find

profitability for businesses and retail.

the first outputs, detect symptoms

If we continue with the previous

and main causes, making it possible

example (consumer preferences),

to implement immediate initiatives

we can find the trends of the main

(“quick wins”). The value resulting

variables that impact our key factor,

April 2022

Te c h n olo g y

the timing in which they gain relevance classification, regression, forecasting, and their inter-dependencies, which

dimensionality reduction, etc.) on

allows us to identify the new engines

the “Dataframe”. In the previous

that exert greater pressure on the

stage, we had already identified

preferences of our consumers:

certain trends in a more descriptive

functionality of packaging, changes

way. With the incorporation of the

in the frequency of visits to retail,

algorithms, patterns and scenarios

new sales channels, new habits or

will be calculated and estimated

lifestyles, seasonality, etc.

with a greater degree of certainty

In the next stage, the analyzes incorporate algorithms (clustering,

than in the traditional way, in which we would have discovered these

w w w.the b os tonb r.com

Ph.D. José Moscoso

postmortem. We know this stage as

to adjust our management model and

“Machine Learning”, where the

ensure a high degree of integration,

automation of analytical processes

while fine-tuning courses of action.

contains the added value of proposing

Artificial Intelligence will help us with

recommendations and courses of

“early warnings” about deviations

action thanks to “learning based

that could be found. The model

on the experience that the program

will be organized into “Automated

itself accumulates”1. At this stage,

Executive Dashboards” and will

the relationships that we have

include “key online information”. For

cataloged can anticipate (as it is in

this, it is critical to design “Robots”

our example) the relative changes in

(“Robotic Process Automation”),

consumer preferences and guide us

for the continuous execution of the

on actions such as: being pioneers

analysis routines in the predetermined

in migrating to convenience eco-

“Dataframe”, generating efficiencies

friendly packaging, among others,

and reducing time.

in order to anticipate (prediction) or suggest activities (prescription)

OTHER USAGES AND BENEFITS

throughout the value chain related

From a Risk Management perspective,

to new trends or opportunities. Early

the model allows finding patterns

adjustments on production lines,

that predict unusual situations by

distribution or redefinition of segments defining the “Dataframe” of processes are some of the strategic actions that

such as payments, collections,

can be considered as a result of the

inventories, losses and quality control,

opportunities identified.

among others. Early warnings can be

Continuous feedback is critical

April 2022

automated, either by “Robots” or by

Te c h n olo g y

devices interconnected through the IoT, receiving and sending data on real time. For example, alerts of deviations in the temperature of our fleet and refrigerated warehouses to ensure the quality of our cold chain, goes beyond avoiding risks of returns, resulting in the assurance of the value offered to our consumers. Risks of obsolescence and overdue portfolio (credit scoring) can also be strongly mitigated, while policies and procedures can be adjusted with greater certainty. Embedding a culture of predictive and prescriptive analysis supported by Artificial Intelligence, analyzes techniques and information systems puts

Ph.D. José Moscoso is an expert in the Food and Beverage for massive consumption industry. Education: • PhD in Financial Economics, Banking and Stock Market, Autonomous University of Madrid, Spain. •MBA, IE Business School, Madrid, Spain. • Certified Public Accountant, University of Lima, Peru. Experience: • CEO, Corporate Director, Financial Vice-President at Latin American Multinationals. • Associated Professor of the MBA program at the Post-grade Faculty of the University of Lima, Peru.

us one step ahead in seizing opportunities and mitigating risks, strengthening the strategic management of the business in an industry as dynamic as food and beverage.

w w w.the b os tonb r.com

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Mining

Mining & IoT

Digital transformation within the mining industry has resulted in more productivity and also reduced costs and risk exposure

Mining

w w w.the b os tonb r.com

Mining

he interconnection

maintenance and repairs to

between electronic

predictive maintenance

devices and common use objects

• Cost optimization and increased

to data networks

productivity

currently implies plenty of everyday

• More and better processes

tasks. It is already possible to adjust

supporting decision-making

home air conditioning remotely with the hardware’s app in a mobile device, and in the same way we can monitor our home’s wireless surveillance cameras and receive movement sensor alerts. In different industries, depending on

NEW OPPORTUNITIES FOR PROFESSIONALS

Besides the multiple professions mining gathers from for its operations, it has now grown a demand for IT specialists. According to GlobalData’s employment database, between July

the business sector and its customary

and October 2021 there were 597 jobs

tasks, automation between machinery

related to the Internet of Things (IoT)

and programmed processes managed

offered in the mining industry, and 540

remotely is happening since a few

of those jobs have been taken, for a

years ago, delivering results such as:

90.45% of positions filled. Companies such as Anglo American,

• Improving safety and reducing

Caterpillar, Eaton, Flowserve,

risk exposure both for personnel

Komatsu, Nexans and Rio Tinto,

and equipment

among others, are the ones offering the most jobs in which IoT is key for

• Transitioning from preventive

April 2022

everyday operations.

Mining

Besides the multiple professions mining gathers from for its operations, it has now grown a demand for IT specialists

w w w.the b os tonb r.com

Mining

BENEFITS ON THE SURFACE AND BELOW

Interconnected equipment used in mining for remote work includes from heavy load vehicles and automated trains -both driverless- conveying obtained minerals to devices with small sensors transmitting accurate data for decision-making in processes that result in less costs and increased safety. Orica, the multinational Australian explosive and blasting system supplier, offers cloud-based solutions

Solutions line and also zero emissions

supported by apps, delivering useful

vehicles such as the automated 793

data to determine the quantity of

model.

explosives needed for a specific detonation according to rocks’ hardness and results from previous

OUTSTANDING PROJECTS

Infosys, the multinational IT

detonations, among other information.

company, shared data about some of

Caterpillar, on its behalf, offers

the most outstanding operations in

automation and remote operation

which processes based on IoT, clud,

solutions both for fleets and individual

AI and cybersecurity have delivered

equipment through their MineStar™

solid results:

April 2022

Mining

• Koodaideri (now known as

command center in Perth, including

Gudai-Darri), is an Australian-based

the routes for heavy load vehicles,

Rio Tinto operation where the first

trains and autonomous drill rigs in

intelligent mine has been established,

mines and loading zones. In 2019, the

first automated heavy load rail system

consisting of solar energy and carbon- was built at this site; the AutoHaul™ derived fuel. Most of its processes

features automatic response for

are operated and designed from a

speed reduction, starts and stops,

w w w.the b os tonb r.com

Mining

Beyond tangible contributions in mining, there have been challenges which will certainly be surpassed through new tech developments

April 2022

Mining

eliminating taking drivers to the

by the close of 2021 production is

mining site. The only factor affecting

expected to reach between 128,000

the more than $2.6 billion investment

and 132,000 oz.

is scarce workforce, for which iron ore shipments have been postponed to 2022.

• Borden (at Porcupine mine, Canadá) is being operated by Goldcorp, which partnered with Cisco,

• Casa Berardi mine belongs

and from 2018 and on, additional

to Hecla Mining and is located

adjustments to their EV fleet and their

in Quebec, where open pit and

solar energy system were performed,

underground operations are carried

installing fans with sensors in the

out to obtain gold and silver. Hecla

underground mine, which improved

partnered with Newtrax to monitor

energy efficiency with remote

their machinery and its stoppage.

operation, reducing work stoppage

As a result, machinery use has

due to lack of ventilation. Results

been optimized through real-time

have also reduced the air quantity that

diagnostics reducing its stoppage

had to be pumped into the mine from

time, thus increasing production and

1.2 million cubic feet per minute to

experiencing an average extra hour

650,000 cfm. It’s not hard to deduct

per day of active operation. In 2020,

that electricity consumption in this

the Casa Berardi mine produced

project has been reduced in half, while

121,493 oz. in gold (at cash cost) and

obviously reducing costs.

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Mining

• Glencore, on its behalf, partnered also with Newtrax in 2016 to install sensors for its mobile machinery at the Matagami zinc mine.

Each ore mineral load has increased from an average of 55 up to 60 tons. CHALLENGES FOR IOT IN MINING

Beyond tangible contributions

Data provided by interconnected

since IoT has been deployed into

equipment has resulted in a better

mining operations, there have been

understanding of its performance,

challenges which will certainly be

thus achieving greater productivity.

surpassed in the future through new

April 2022

Mining

tech developments. It must be noted that underground mining implies limitation in connectivity with wireless networks

internet, which is required to move vehicles and other objects from a remote location. Nevertheless, these are the kind

as operations run deeper from the

of obstacles that spark the big

surface. Also, mineral deposits in

developments in tech required to

remote areas can hardly access 3G

continuously bring value into mining.

and 4G connectivity, much less 5G

w w w.the b os tonb r.com

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A hospitality

Benchmark

in the Mexican Caribbean

Written by Mateo Rafael Tablado Translation by María Murgui Produced by Jassen Pintado Art Direction Omar Rodriguez Interviewee Mynor Espinoza, General Manager for Paradisus Cancun

Paradisus Cancun has made the most from the support provided by Meliá to become a trend-setting leader in in this important area

eliá Hotels International

destinations are a priority for Meliá and

is a company of Spanish

that is why the Paradisus line operates

origin that has become

one of the most important properties

a leader in hospitality thanks to its worldwide presence. It has been

for the hotel chain. Paradisus Cancun’s first stage was

settled in Mexico for some decades,

built in 1988, being the second one

being present in the most important

built in 1999. The property draws

cities in the country. The main tourist

attention thanks to its pyramid-shaped

Paradisus Cancun | Meliá Hotels International

design, as well as for its wide indoor

Mynor Espinoza, General Manager

spaces, making it an iconic place

at Paradisus Cancun.

in the area. Other advantages the hotel has include being close to the airport and

Mynor Espinoza, a Costa Rican,

the main and elegant shopping malls

has been working in the hotel industry

in Cancun, as well as its bars and

for more than 20 years, most of

discotheques area, water parks and

them for Meliá Hotels International.

natural attractions.

Espinoza graduated in Business

“Paradisus Cancun is nowadays one of the backbones within Meliá Hotels International’s structure”, commented

RECOGNIZED CAREER

Abril 2022

Administration with an expertise in Finance and Banking. Espinoza has received, thanks

Hospitality

“Paradisus Cancun is nowadays one of the backbones within Meliá Hotels International’s structure” - Mynor Espinoza, General Manager at Paradisus Cancun

to his career in the hotel sector,

the food offer, and human warmth”,

different recognitions in international

the manager pointed out.

symposiums, in which he has also been a speaker, besides being recognized by Forbes Argentina. “Every corner of the hotel is designed

CAPTIVATING INDOORS AND DESIGN IN AN IDYLLIC SETTING The architectonical concept of

for the guests, we are prepared to

Paradisus Cancun was conceived to

create EXPERIENCES through the

establish a connection among iconic

property, the high service standards,

sites in the Yucatan peninsula and

w w w.the b os tonb r.com

Paradisus Cancun | Meliá Hotels International

Abril 2022

Hospitality

the Mexican Caribbean, such as the pyramids ̶ seen in its outer design ̶ and indoors, packed with vegetation and water flows, imitating the “cenote” natural wells in the main lobbies. The private swimming pools, wide beach areas, a wide variety of bars and restaurants, specialized spaces with sea sights and indoor fitness activities, as well as events halls, glamping areas and a festive atmosphere with guest DJs are the most renowned attractions at Paradisus Cancun. The property has 773 rooms distributed among five buildings, with the finest views to the Caribbean and the Nichupte Lagoon. Twelve restaurants and bars provide the guests with a wide food offer and mixology. The hotel has areas with activities for kids, besides offering customized services at the YHI Spa and other areas devoted to health and wellness, whereas the Kanna beach club can be visited by guests from other hotels.

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Paradisus Cancun | Meliá Hotels International

RENOVATION AS A CONSTANT ASPECT In addition to the standardization of

out mainly in common areas and restaurants, followed by the remodeling of rooms and areas dedicated to the

new health measures to protect guests, Groups and Conventions segment. staff and suppliers, the reopening The hotel’s VIP area ̶ The Reserve,

after the first months of the COVID-19

which is a reference point in specialized

pandemic has also meant a renovation

services within Meliá’s Paradisus line

period for Paradisus Cancun, as some

̶ will also be subject to different

refurbishments have been carried

alterations which will optimize its

Abril 2022

Hospitality

operation and, thus, will improve

established in accordance with

the guests’ stay.

its brand. As a reward, the business unit form

SUPPORT FROM A WORLDWIDE HOTEL INDUSTRY GIANT

Paradisus Cancun contributes greatly

Operating with the support of a

one of the five hotels with a better

multinational which is a leader in the

EBITDA (Earnings before Interest,

to Meliá Hotels International, being

hotel industry allows Paradisus Cancun Taxes, Depreciation and Amortization) to work with a series of standards

in the overall operation of the company.

w w w.the b os tonb r.com

P a r a d i s u s C a n c u n | M e l i á H o t eSl s e cI tnot er r n a t i o n a l

“Every corner of the hotel is designed for the guests” - Mynor Espinoza, Gerente General de Paradisus Cancun

Abril 2022

Hospitality

For that reason, the hotel is currently

industry, Paradisus Cancun focuses

focused on reinforcing its inner

its attention on the human resources,

bookings channels.

which are duly cared for, favoring not only the workforce’s loyalty to

IMPORTANCE OF HUMAN FACTOR

the company, but also creating an

In order to keep a low rotation rate,

atmosphere where the service and

something normally high in the hotel

attention stand out alongside the

w w w.the b os tonb r.com

Paradisus Cancun | Meliá Hotels International

FOUNDED:

1988 INDUSTRY:

Hospitality CONTACT: www.melia.com/en mynor.espinoza@melia.com

Abril 2022

Hospitality

“We are prepared to create EXPERIENCES through the property, the high service standards, the food offer, and human warmth”

amenities the hotel offers. Paradisus Cancun has created the “Feel Good” program, whose three main principles are: • Health, focused mainly on a staff’s healthy diet • The fitness aspect, through the creation of events to motivate exercising

- Mynor Espinoza, General Manager at Paradisus Cancun

• Emotional connection, through which the management establishes closeness with collaborators and their families. ALL THE ELEMENTS FOR AN UNBEATABLE EXPERIENCE The recovery of tourism at a worldwide level after the pandemic has helped the sector and Paradisus Cancun has taken advantage of it to carry out changes which will allow it to offer a better experience for its guests. Without a doubt, the property has both material and human attributes to become a benchmark in this important market in the Mexican Caribbean.

w w w.the b os tonb r.com

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Everything we build is forever

GROWTH AND SUSTAINABILITY GOING HAND IN HAND Bimbo Europe-Africa-Asia is taking giant steps towards sustainable growth through well-developed strategies and its staff’s talent in different territories

Interviewee Javier Cabeza, Vice-president of Operations in Europe, Africa and Asia for Grupo Bimbo Produced by Jassen Pintado Art Direction Omar Rodríguez

Bimbo Europe/Africa /Asia

he Bimbo group was created in Mexico in 1945 and is currently the best-known Mexican food brand worldwide. Its expansion within the

Americas began during the 1980s

EVOLVING TOWARDS BIMBO EUROPE, ASIA AND AFRICA (BIMBO EAA) Bimbo Iberia was born from Bimbo’s operations in Spain and Portugal, working on its own until 2016. Its evolution continued in 2019,

as the brand began exporting to the

when Gabino Gómez, CEO for

United States and Central America,

Bimbo, pushed for the creation of

later venturing into South America

an organization similar to the one he

during the 1990s.

leads from Mexico -which supports

Overseas, Bimbo first ventured into

the company’s operations in the

Spain when Mr. Jaime Jorba, one of the United States and Latin America-, also brand’s founders in Mexico, returned to incorporating Bimbo UK, China and the his home country.

April 2022

brand’s assets in India and Morocco,

Food & Beverage

thus becoming Bimbo. “Bimbo was pretty set in the

Business Engineering and Chemistry Engineering at the Technical University

Americas and decided to grow in the

of Catalonia (in Barcelona, Spain). He

continents where it lacked presence:

also earned an MBA from the IESE

Europe, Asia and Africa,” commented

Business School (also in Barcelona).

Javier Cabeza, Vice-president of

Among postgraduate studies,

Operations in Europe, Africa and Asia

Cabeza obtained a Certificate as a

for Grupo Bimbo.

Breadmaking Technologist from the

LEADERSHIP: BEYOND LEAN MANUFACTURING Javier Cabeza is near completion of his second decade of work for Bimbo,

American Institute of Baking and a Leadership program from the Harvard Business School. Before joining Bimbo at 22, Cabeza

which means he was also part of the

worked for Synthesia Technology, a

Bimbo company in Spain before being

Spain-based leader in polyurethane

acquired by the Mexican business

solutions, and also for the Benetton

group in 2011.

clothing brand. Once in Bimbo, Cabeza

Cabeza earned Bachelor degrees in

has practically experienced every area

w w w.the b os tonb r.com

Bimbo Europe/Africa /Asia

“The company’s a heavyweight in Europe for its business in Spain, Portugal and now in Asia” Javier Cabeza, Vice-president of Operations in Europe, Africa and Asia for Grupo Bimbo

April 2022

Food & Beverage

in the company from operations to

approximately 16,000 workers serving

technical positions. The deployment

more than 200,000 clients.

of lean manufacturing systems and

Bimbo’s UK business was added

continuous improvement processes

to the operations performed from

highlight his tenure in the company.

Bimbo Iberia towards all of Europe.

Besides his outstanding work in Spain,

The UK branch’s business consisted

Bimbo also took Cabeza to Belgium,

mainly of bagel and croissant bread.

the United States and Netherlands,

In Africa, Bimbo arrived in Morocco

until being in charge of, probably,

by acquiring a small company,

the most diverse of Grupo Bimbo’s

growing its presence from the initial

operations, globally.

four production facilities and also

“I wanted to become part of an

expanding its product portfolio.

enterprise so big as to not know

“The company’s a heavyweight

in which part of the world I would

in Europe for its business in Spain,

find myself the next day, and that’s

Portugal and now in Asia,” said

why I like Bimbo a lot,” the executive declared.

Cabeza, who is familiar with the highly competitive European market which, sooner or later, ventures into

CONSTANT GROWTH IN EVERY TERRITORY Bimbo’s endeavors in Europe, Africa

Latin America.

and Asia encompass 32 facilities

Positioning Bimbo EAA as this

-used both as corporate offices and

clockwork operation able to replicate

as storage facilities-, involved in the

the model and reach of its parent

production of 15 brands, operated by

company overseas is a very complex

KEY STRATEGIES

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Bimbo Europe/Africa /Asia

Javier Cabeza, Vice-president of Operations in Europe, Africa and Asia for Grupo Bimbo

April 2022

Food & Beverage

task which requires aligned strategies

• Quality-focused operations.

such as:

Quality has become the determining

• Inorganic growth. The group

factor even for decision-making, from

acquired companies in Spain, India,

being a tactic to become a strategic

Morocco and the UK, which have

factor. No matter how favorable aspects

resulted in a longer reach and a

such as costs and revenue become,

strengthened portfolio within the

no decision is made if it affects the

food market.

products’ quality.

• Managerial structures

• Talent detection and

deployment. These offer detail into

positioning. One of the most

the business alignment level obtained,

important strategies is getting to know

and they also measure efficiency,

the talent’s capabilities in every country,

capabilities, business contribution

enabling them to develop the roles each

and adaptability.

territory requires, matching capable individuals with the tasks necessary to

• Investment in production

different countries, as well as to develop

capacity. This has implied great

the company’s talent or sourcing

investments in every country,

enabled staff to fulfill areas in need.

contributing to each territory’s growth. “We do make a great difference • Implementation of Lean

by relying on staff from China, India,

Manufacturing. This improvement

Morocco, Portugal, Spain and the

system has been able to detect all

UK, such variety provides a big

contributing and non-contributing

contribution,” the vice-president

elements in bringing value to clients.

pointed out.

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Bimbo Europe/Africa /Asia

“We want to keep being a force in innovation. In every country we must fulfill the group’s philosophy: Feed better world” Javier Cabeza, Vice-president of Operations in Europe, Africa and Asia for Grupo Bimbo

April 2022

Food & Beverage

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Bimbo Europe/Africa /Asia

SUPPORT FROM

This network support has been key

A GIANT CORPORATION

to take solid steps in relatively new

Bimbo EAA makes the most from

territories such as India or Morocco.

resources provided by Grupo Bimbo,

“Grupo Bimbo is always at the top of

especially those involving knowledge

our list, providing us with influence and

and products, as well as personnel,

knowledge,” Cabeza remarked.

experience and contact with tech and

raw materials suppliers, considering

THE COVID-19 PANDEMIC

Bimbo has become the largest bakery

AS CHANGE ACCELERATOR

company worldwide.

An enterprise the size of Bimbo EAA

April 2022

Food & Beverage

couldn’t be exempted from adapting

value of products, plastic packaging

to the consequences of the COVID-19

and other trends previously detected,

pandemic, deploying timely measures

which simply took off as the pandemic

preventing the disease internally,

began, such as online retail, to

reducing its spread to zero.

name one.

However, the company is aware

“We’ve learned to become more

that changes didn’t take place only

open, faster, to make the most out

within different companies, but also

of business opportunities, to become

in consumer habits, becoming more

leaner toward decision-making,” the

conscious regarding the nutritional

executive said.

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Bimbo Europe/Africa /Asia

ON THE ROAD TO SUSTAINABILITY

globally, has experienced progress

Taking Grupo Bimbo toward

in solar power.

sustainable operations is a top priority, globally. Up until now, Europe has been

other brands, clients and distributorswith the Marcas Waste Warrior

the ideal ground to reach different

association, whose purpose is to

goals, considering the territory’s

eliminate food waste. The association

regulations, policies and culture,

created the Too Good To Go campaign,

which allow for significant advance

in which different brands offer

in purposes such as bringing CO2

attractive food packages near their

emissions to net zero by 2050 and

expiration date at very low prices with

other intermediate goals related to the

the purpose of feeding more people

use of plastics in packaging, among

instead of wasting food, aligning the

other things. In countries such as

company to reduce food waste in 50%

Spain, Bimbo’s vehicle fleet boasts 20% of electric vehicles, an amount that will undoubtedly grow in the short term also in other countries. In Mexico, Bimbo has the largest electric vehicle fleets in Latin America. The company offers different

in respect with their 2016 figures. “Sustainability is one of the group’s strategies. These goals must be accomplished, it’s fundamental to our group, there are no excuses for unfulfillment,” Cabeza expressed.

packaging, including biodegradable

GROWTH IN THE HORIZON AND CONTRIBUTIONS TO FEED THE WORLD

solutions such as D2W. Also, Bimbo,

If there’s a word describing the

recyclable options for plastic

In Europe, Bimbo is involved -along

April 2022

Food & Beverage

“Sustainability is one of the group’s strategies. It’s fundamental to our group” Javier Cabeza, Vice-president of Operations in Europe, Africa and Asia for Grupo Bimbo

w w w.the b os tonb r.com

Bimbo Europe/Africa /Asia

future purposes of Bimbo EAA, it is undoubtedly “growth”. Asian territory is poised to become the grounds for such a purpose, specifically in India, where the company’s challenge is to reach more population. In Africa, on its behalf, growth purposes also persist, but not in the short term. The market is evolving and it is very important to remain aware of its development. The operation in Europe is consolidated, but the plan is to keep strengthening the company’s finances and enter categories yet to be explored by Bimbo. Along with the brand’s efforts overseas, the company improves the fulfillment of its purpose to contribute to a better world by providing quality foods to a quantity of people that keeps growing. “We want to keep being a force in innovation. In every country we must

April 2022

Food & Beverage

Founded: 1945, in Mexico Industry: Food & Beverage Employees: 16,000. Contact: www.grupobimbo.com atencionenlinea@grupobimbo.com

fulfill the group’s philosophy: Feed a better world,” finalized Javier Cabeza, Vice-president of Operations in Europe, Africa and Asia for Grupo Bimbo.

w w w.the b os tonb r.com

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ACHIEVEMENTS LEADING TO

SUCCESS ACROSS

Produced by Jassen Pintado Written by Mateo Rafael Tablado Art direction Omar Rodríguez Interviewee Fernando Figiacone, Vice President of Supply Chain in Africa for ABInBev

Alignment with best practices and global standards contribute to surpass different challenges faced across the territory, enabling a sustainable operation in brewing, completely invested in its surrounding communities

ABInBev Africa

he origins of ABInBev

late 1990s, as the company grew into

in Africa go back to

Mozambique, Tanzania and Zambia

1895, when the Castle

through different ventures.

Brewery was created by founder brewer Charles

September 2016, ABInBev brought

Glass in Johannesburg, South Africa

along global brands Budweiser,

(RSA). It only took two years before

Corona and Stella Artois, now popular

the company was listed on the

on the entire continent.

Johannesburg stock exchange. In 1950, the brewery’s corporate

ABINBEV ACROSS AFRICA TODAY

headquarters were moved from

“ABInBev Africa represents one of the

London to Johannesburg, with the

shining lights within ABInBev, globally.

purpose of achieving growth and

There are so many achievements to be

expansion. Five years later, the

proud of”, stated Fernando Figiacone,

Ohlsson’s and Chandler breweries

Vice President of Supply in Africa for

were acquired by Castle, renaming

ABInBev.

the group as South African Breweries (SAB) EXPANSION ACROSS THE CONTINENT

After acquiring SABMiller in

ABInBev’s operations in Africa take place across eleven countries through three main territorial business units: • The West territory encompasses

Besides arriving in Zimbabwe soon

Ghana and Nigeria. Focus brands in

after, the most prominent expansion

this area include Club, Hero, Trophy

era for SAB took place during the

and Budweiser beers.

April 2022

Food and Beverage

ABInBev Africa represents one of the shining lights within ABInBev, globally. There are so many achievements to be proud of - Fernando Figiacone, Vice President of Supply in Africa for ABInBev

w w w.the b os tonb r.com

ABInBev Africa

• Botswana, Mozambique, Tanzania, Zambia and Uganda belong to the

Artois and Hansa are the key brands in the South.

Southeast unit. Main brands in this territory include Kilimanjaro, Mosi, 2M, St Louis and Club.

In South Africa alone, the company provides 7,000 jobs, supporting a beer value chain from seed to sip

• The South territory is formed by

of more than 250,000 individuals

Eswatini, Lesotho, Namibia and South

and ultimately contributing to over

Africa. Brutal Fruit, Budweiser, Carling

1, 000, 000 livelihoods. With raw

Black Label, Castle Lager, Castle Lite,

materials sourced from more than

Corona, Flying Fish (who recently

1,200 farmers, SAB is able to produce

created a flavored spritzer), Stella

a 30 million hL volume, exporting 14

April 2022

Food and Beverage

brands into 28 different countries

Africa, securing supplies for

across Africa, besides exporting to

bottle production.

countries in different continents. Boosted by new breweries opened

In the wake of economic uncertainty and the need for recovery, SAB

in Mozambique and Nigeria during the

recently reaffirmed its commitment to

last three years, in 2021 the company

ignite the South African economy as it

reached a 50 million hL production

pledges to invest to R4.5bn – adding

across the continent.

impact to an industry that already

Recent investments include a stateof-the-art malting facility in Zambia,

contributes 1.3% of the national GDP During 2018, the brewery launched

and also investment in a takeover of a

Brutal Fruit Ruby Apple Spritzer,

glass manufacturing facility in South

which became the largest selling

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ABInBev Africa

We ended a strong 2021 with growth. We will continue to push for the same performance going forward

- Fernando Figiacone, Vice President of Supply in Africa for ABInBev

April 2022

Food and Beverage

innovation ever in the continent,

University and Darden University, all

growing total brand volume by 40%

of these as part of ABInBev between

and driving double-digit growth.

2015 and 2021.

“We ended a strong 2021 with growth in volume, revenue and

UP TO GLOBAL STANDARDS

EBITDA. We will continue to push for

Operations in Africa bring along

the same performance going forward,” different challenges due to the the executive said. infrastructure in some countries, A LONG TENURE IN BREWING PROVIDING LEADERSHIP Fernando Figiacone graduated from

as well as other factors such as commodity fluctuations and worsening currency exchange rates. To these

the Catholic University of Argentina

common situations, the COVID-19

as an Industrial Engineer. Figiacone

pandemic brought additional burdens

also earned a postgraduate degree

to logistics and lead times.

in Food & Beverage Marketing from

“These are part of the challenges

the University of Belgrano (Argentina)

faced, but they are also what excites

and a Master in Company from the

us and drives us to perform,”

University of San Andrés (also in

Figiacone explained.

Argentina). Other postgraduate studies taken

The strong management systems in place across ABInBev Africa bring

by Figiacone include Supply Chain

the company to the same level as all

Training in MIT (Massachusetts

zones, globally. Constant training,

Institute of Technology), Stanford

adoption of best practices and KPI

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ABInBev Africa

tracking has enhanced its leadership,

businesses. Also, 95% of procurement

increasing autonomy across every

is spent through suppliers with

team and successfully achieving

significant ratings in respect to local

benchmark levels. Notable areas

business empowerment.

which have become optimized include logistics, supply and the development

nearly $6.6 million and $5 million in

of a returnable glass bottle system,

Supplier and Enterprise Development

among others.

Initiatives, respectively.

THOROUGH INVOLVEMENT WITH LOCAL SUPPLIERS As part of the historic merger

These programs have enabled the company to help develop and train nearly 1,000 emerging farmers,

conditions when ABInBev purchased

increasing the local barley, hops

SAB Miller, SAB committed to invest

and corn production feeding the

R1billion ($70m) into SA economy by

supply chain.

the end of 2021 in three key areas

From 2017 to 2021, investments

of investment spend: Agricultural

of more than $13 million have helped

Development, Enterprise and

agricultural development programs.

Supplier Development, and Societal

The company’s commitment to

Upliftment initiatives.

enterprise and supplier development,

Efforts have been consistent, as

In 2020 alone, the company invested

local procurement and local

in the last five years the company

businesses has allowed for the

invested more than $93.5 million

creation of programs such as the

in procurement with Black-owned

SAB Thrive Fund, not only becoming

April 2022

Food and Beverage

The challenges faced are also what drives us to perform - Fernando Figiacone, Vice President of Supply in Africa for ABInBev

w w w.the b os tonb r.com

ABInBev Africa

a transformation factor within the

efficiency in the three business units

company’s supply chain, but also

forming ABInBev Africa. The Voyager

providing much-needed jobs in

Plant Optimization program deploys

local communities.

best practices and standardization of operations. The program evolves

GLOBAL SUPPORT AND

continuously, improving and certifying

CONTINENTAL COMPLIANCE

every process, leading to a safe,

WITH STANDARDS

sustainable operation of every

Support from ABInBev through global

production plant.

programs contribute to increasing

April 2022

Also, the Africa zone head office,

Food and Beverage

based in South Africa, oversees every

HIGHLY-SKILLED WORKFORCE

business unit, playing an essential role

Personnel working at ABInBev Africa

of support regarding supply,

develop unique skills after undergoing

logistics, procurement, finance

demanding training. The company can

and people management.

easily state that its staff is comprised

“We have been able to optimize

of some of Africa’s finest, most

our operations despite operating in

brilliant individuals, whose sense of

hugely challenging environments,”

commitment and ownership drives

said the executive.

them towards delivering excellence in execution despite any challenges

w w w.the b os tonb r.com

ABInBev Africa

STANDARD GRAINS NIG. LTD.

Sorghum Cleaning Plant

Rice Milling Plant Rice Milling Plant

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April 2022

Food and Beverage

faced. Hence, the company strives

seem to provide an infinite supply of

to maintain a low turnover rate.

ingredients for brewing, the reality is that these coveted commodities must

BETTER USE OF RESOURCES, IMPROVED CONDITIONS WITHIN THE COMMUNITY

be managed wisely to ensure their

Along its tenure operating in Africa,

improved noticeably within the

ABInBev has found out that, as

company’s drive to sustainability set

there are many resources that may

to 2025 is the efficient management of

availability for time to come. One of the areas which has

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ABInBev Africa

water resources, as during the last five from the municipality. The company years water usage has been reduced

set the goal of improving conditions

by 20%. The company, partnering

with possible solutions to water

with organizations such as the World

restrictions challenging communities

Wildlife Fund has improved conditions

in Mozambique and Namibia.

of water availability in communities across the continent where it

On a related matter, the company has set a goal for 2025 to use 100%

operates. One of the successful efforts of returnable or recycled packaging. In

is the borehole dug for the Caledon

Ghana and Nigeria possible solutions

Maltings facility, reducing demand

are being tested to increase recycled

April 2022

Food and Beverage

content in PET. Tanzania is already

tons of waste collected. Meanwhile,

experiencing PET-less bottling with

in South Africa, the EPR (Extended

brands such as Grand Malt being

Producer Responsibility) program

packaged in recyclable cans.

will allow an efficient management of

On its behalf, the Zambia branch

single use and returnable products,

created the Manja Pamodzi project,

thus implementing circular economy

aimed to improve sanitation and

initiatives within communities.

hygiene through waste collection. The

Regarding the energy used to brew

815 collector program boasts 76%

and bottle ABInBev products, the

women, adding more than 14,000

company set the goal of obtaining

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ABInBev Africa

100% of electricity from renewable

14 GWh of electric power, reducing

sources, and enforcing a 25%

CO2 emissions by 12,443 tons. And in

reduction of carbon dioxide emissions

Johannesburg, the Alrode brewery is

across its value chain. This feat seems

to be approached on time, as the seven

These results have prompted

Castle Lite breweries in South Africa

ABInBev into announcing the global

already operate with solar power, and

goal of achieving net zero emissions

only in 2021 these generated more than across its value chain by 2040.

Food and Beverage

“Sustainable development is a massive focus for our business as it is for many other businesses,” Figiacone remarked. EVERY RESOURCE TO ACHIEVE UPCOMING GOALS ABInBev Africa has a ten-year plan

FOUNDED:

1895, 2016 como ABInBev África

in place to increase its capacity in different countries through different

INDUSTRY:

flexible projects. The goal for 2022

Alimentos y bevidas

is reaching 500,000 hL of product exported across Africa. “Our mission is to support Africa’s growth, by producing the best African Beers with pride, through a highly

CONTACT: www.ab-inbev.com fernando.Figiacone@za.ab-inbev.com

engaged team, improving performance year over year. The focus is to further improve our performance reaching a very high utilization of our assets, and enabling our expansion capacity to support our zone and global growth strategy,” finalized Fernando Figiacone, Vice President of Supply Chain in Africa for ABInBev.

w w w.the b os tonb r.com

luxury Grand

lodging in the Mexican Caribbean

Grand Park Royal Cozumel takes its brand’s attributes guaranteeing an unforgettable stay at the delightful island in the Mexican Caribbean Written by Mateo Rafael Tablado

Produced by Jassen Pintado

Interviewee Javier Colorado, Grand Park Royal Cozumel General Manager

Grand Park Royal | Cozumel

or more than 30 years,

a cozy touch, but with the service

the Mexican chain Park

and attention featured by Park Royal

Royal Hotels & Resorts

Hotels & Resorts.

has served as a host for

• Grand Park Royal Luxury Resorts:

millions of guests who

deluxe brand with properties in Mexico

have visited its properties

iconic beach destinations such as

with different plans, be

Cancun, Cozumel and Puerto Vallarta.

them family vacations,

“Our four brands provide a

a romantic getaway, a honeymoon

unique experience for each guest”,

or even for special events such

commented Javier Colorado, General

as weddings, work meetings and

Manager for Grand Park Royal

conventions.

Cozumel.

Nowadays, the chain operates 14 properties among Argentina, Mexico, Puerto Rico and the U.S., offering four

EXPERIENCED LEADERSHIP WITH WORLDWIDE ACHIEVEMENTS

brands differentiated according to

Javier Colorado earned his Degree in

defined segments:

Tourism from the César Ritz Tourism

• Park Royal Beach Resorts: perfect for family vacations at the best

for its Spanish acronym) in Ciudad de

beaches in Mexico.

Mexico.

• Park Royal City: urban hotels in

Three decades of working

places such as Buenos Aires, Miami

experience have taken him to

and Orlando.

Bahamas, Curaçao, the Dominican

• Park Royal Homestay: hotels with

and Hotel Industry College (COSUTH,

April 2022

Republic, Dubai (United Arab

Hospitality

Emirates), El Salvador, Kuwait,

the Middle East/Africa region within

Panama, and Venezuela, besides

JW Marriott, and world’s number two,

Mexico, serving as a General Manager

among more than 500 hotels operated

at four different posts before being

by the brand. In this side of the world,

hired by Grand Park Royal Cozumel.

during his tenure in Venezuela he also

His work in the Middle East earned him recognitions such as –for two consecutive years- ranking number one in Guest Service Satisfaction in

ranked number one in Guest Service Satisfaction in the Americas. Currently, besides placing Grand Park Royal Cozumel in the

w w w.the b os tonb r.com

Grand Park Royal | Cozumel

“Our four brands provide a unique experience for each guest” - Javier Colorado, General Manager for Grand Park Royal Cozumel

first position for guest service satisfaction in social media in the island of Cozumel and number two in the company, Javier is doing a Business Administration Master focused on Marketing. GRAND PARK ROYAL LUXURY RESORTS: ALL-INCLUSIVE TO THE MAX The Grand Park Royal Luxury Resorts line, which Grand Park Royal Cozumel

April 2022

Hospitality

Grand Park Royal | Cozumel

belongs to, gathers a series of

largest hotel on the island, with

attributes such as its beach areas

sights both to the sea as well as to

and sea sights, entertainment for

the nature offered by Cozumel, in the

families and night fun for couples,

crystal-clear and beautiful waters

water sports, quality drinks options

of the Caribbean. The property

and food menu including local

has a privileged location, close to

dishes and specialties, as well as

downtown, the port and shopping

international meals, 24-hour room-

malls.

service, attractive pools -even of the

The competent staff in charge of

infinity edge kind- and facilities for the

operating Grand Park Royal Cozumel

celebration of special events.

is prepared to provide a stay with

“We are centered on creating

all the comforts which this chain

unforgettable experiences through

provides, regarding food, drinks,

a custom-made service”, the

entertainment, room-service and

executive commented.

activities for children in its water park.

LODGING UP TO STANDARDS IN A UNIQUE ENVIRONMENT Grand Park Royal Cozumel has

the hotel has:

been part of the Park Royal Hotels

Among other prominent attractions, • 3 pools and 2 jacuzzies with Balinese beds in the area. • Buffet restaurant with themed

& Resorts since September 2000.

nights and other three restaurants

Its architecture has been awarded

with Italian, Caribbean and Mexican

internationally and it is one of the best

cuisine specialties.

hotels in Cozumel. Its 342 luxury rooms make it the

• 5 bars and 2 snack bars. • Cafeteria and ice-cream parlor.

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Grand Park Royal | Cozumel

• Sports bar.

you to experience the enthralling

• Gym and spa.

island of Cozumel”, declares

• Free wi-fi.

Javier Colorado.

Grand Park Royal Cozumel is one of the five resorts which generate larger revenues to the hotel chain, attracting both domestic and international tourism. “Our resort is five-star, with a

ATTRACTIONS IN THE SURROUNDINGS WITHOUT LEAVING THE ISLAND Once in Grand Park Royal Cozumel, it is tempting to stay in the hotel the

modern style, but with an approach

whole time and enjoy the amenities

to the regional culture which will allow

it offers to the fullest. However,

April 2022

Hospitality

Cozumel has got attractions which are

inside the Reefs National Park)

worthy to be known firsthand. Besides

has a beautiful beach where to

the San Miguel de Cozumel colonial

swim underwater and even

downtown area -with restaurants,

practice with snorkel.

craftwork shops and night clubs-,

Among other attractions, one

the San Gervasio archeological area

can choose to go for a walk around

is another attraction created by man

El Cedral town, swim and scuba

along with the cruise dock, making of

dive at El Cielo beach, as well as

this island an interesting stop for the

visit an eco-tourism attraction:

tours around the Caribbean. On its

Lighthouse Ceralain Park and its

behalf, the Chankanaab Park (located

ecological reserve.

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Grand Park Royal | Cozumel

April 2022

Hospitality

COMPREHENSIVE MANAGEMENT OF THE WORKING FORCE The management of human resources in Gran Park Royal Cozumel does not leave behind any single aspect regarding its staff’s training, work environment and incentives for a better performance. The induction training course succeeds in taking each collaborator

you take care of yourself, we all take care of ourselves” and the health campaigns give continuity to that comfort the company addresses to its workers, besides social activities and festivities such as “Child’s Day”, for the workers’ children, and even the “Chambermaid’s Day”, among other events. “Our collaborators’ well-being

inside the company, creating a

is our mission”, commented the

sense of belonging when sharing

General Manager.

different values. The excellent performance of the hotel’s collaborators is recognized

“COACHES 30D” PROGRAM To make sure that the new personnel

through the bimonthly “Premia by Park get a complete certification in their Royal Hotels & Resorts” program. post during their first month at the And, beyond training which enhances

hotel, the company assigns a more

their abilities, the workers are also

experienced collaborator to support

included in ‘mindfulness’ programs,

a recently hired worker, making it

with health and well-being routines

easy for the latter to be successful

and dynamics.

in getting the induction training

Self-care programs such as “If

course and the Essential Services

w w w.the b os tonb r.com

Grand Park Royal | Cozumel

“Our resort is five-star, with a modern style, but with an approach to the regional culture which will allow you to experience the enthralling island of Cozumel” - Javier Colorado, General Manager for Grand Park Royal Cozumel

Resorts created the Safe Guest Program®, certified by Cristal International Standards®, which periodically inspects and ensures guests, suppliers and hotel staff find

Certification accredited. “The program’s purpose is to form a guiding team that accompanies and trains the new personnel during their first 30 days”, explained Colorado.

themselves in virus and infection-free areas both indoors and in outdoor spaces -including swimming pools-, besides certifying food, beverage and water management systems. Main measures such as sanitizing

SAFE GUEST PROGRAM®: A SAFE ENVIRONMENT ON EVERY SURFACE As a consequence of the COVID-19

gel stations in every area, safe

pandemic, Park Royal Hotels &

as well as other resources such as

April 2022

distance signaling, cleaning and sanitizing with ECOLAB® products,

Hospitality

QR codes to avoid surface contact as much as possible, among others, are already a standard in every Park Royal Hotels & Resorts property. RECOVERY EXPECTATIONS After two years of restrictions that turned out to be the worst crisis in the hotel industry, the predictions for the first half of 2022 are certainly

FOUNDED:

Propiedad de Park Royal Hotels & Resorts desde el 2000

optimistic after having registered positive aspects which foretell a slow recovery able to improve what was achieved during 2021.

INDUSTRY:

Hospitality

“Our guests have been recovering the confidence to stay overnight in different destinations and also internationally and thus finally enjoy a deserved holiday, so we keep ourselves optimistic with a view

CONTACT:

800 872 7275 javiercolorado@park-royalhotels.com

to 2022”, concluded Javier Colorado, General Manager for Grand Park Royal Cozumel.

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Hitachi Energy achieves

100% fossil free electricity in own operations

The global technology and market leader in power grids has achieved the first-step target in its Sustainability 2030 plan and steps up the pace towards carbon-neutral Hitachi Energy, today announced

“By achieving 100% fossil-free

that it has achieved the first-step

electricity in our own operations, we

target set out in its Sustainability

have reduced our CO2 equivalent

2030 plan – the use of 100% fossil-

emissions by over 50% compared to

free electricity in its own operations1.

2019,” says Claudio Facchin, CEO

The company is driving towards being

of Hitachi Energy. He continued,

carbon-neutral in its own operations

“The Net Zero challenge is global

by 20302, in line with its Purpose,

and it’s about acting now, innovating

‘Advancing a sustainable energy

and collaborating across countries,

future for all’.

industries and societies. Together

Notes: 1. The contract for its South Korea operations (equivalent to 0.4% total electricity usage) is expected to be signed in April 2022 retrospectively through green tariffs. 2. Discover more about Hitachi Energy’s approach to Sustainability 2030 here

Hitachi Energy

By achieving 100% fossil-free electricity in our own operations, we have reduced our CO2 equivalent emissions by over 50% compared to 2019 - Claudio Facchin, CEO at Hitachi Energy

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April 2022

Energy

with customers, partners, and all

emissions. In its Zhongshan factory

stakeholders, we are advancing the

in China, the company is generating

world’s energy system to be more

nearly 20% of its total energy

sustainable, flexible and secure.”

consumption from solar panels. In

The targeted 50% reduction

its first year of operation, the power

achieved ahead of plan will amount to approximately 175 kilo tonnes of CO2e per year, equivalent to removing over 35,000 passenger cars off the road. To achieve 100% fossil-free electricity in its own operations – and in support of the Hitachi Group’s carbon-neutrality goal3 – the company has pursued a number of pathways including supporting projects to generate its own fossil-free electricity, such as installing solar roof panels combined with e-meshTM digital solutions for distributed energy resources maximizing energy efficiency and minimizing CO2

I nsta lación fotovo lta ica, Zhongshan, China

Notes: 3. Hitachi Sustainability Report 2021

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Hitachi Energy

IdentiQ™ Step into clarity generated at the factory is expected

switched to green tariffs, bought

to reach 1,510 megawatt hours

Energy Attribute Certificates

(MWh), contributing to the reduction

(EACs), and signed Power

in annual carbon emissions by more

Purchase Agreements (PPAs)

than 1,000 tonnes.

across its operations and facilities

To achieve 100% fossil-free electricity, Hitachi Energy has also

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April 2022

in 90 countries. Looking ahead, Hitachi Energy is

Energy

continuing to invest in its journey

and providing a continuous

towards carbon-neutrality by further

supply of power.

increasing energy efficiency, as well

Through its Sustainability 2030

as electrifying its own operations. In

plan and targets, the company

Ludvika, Sweden, the company is

reinforces its commitment to

now using 100% renewable electricity

accelerating actions driving business

generated from hydropower and

in a sustainable way. Based around

from solar panels to support its

four pillars – Planet, People, Peace,

operations. Ludvika, which is one of

and Partnerships – the strategy

Hitachi Energy’s largest production

draws from the UN’s Sustainable

facilities, has gone beyond tackling

Development Goals (SDGs), with

its electricity supply and is now close

specific focus on the following eight:

to removing the use of all fossil fuels

Good health and well-being, Quality

from the whole of its operations.

education, Gender equality, Clean

The company has a track record

water and sanitation, Affordable

of implementing its own technologies

and clean energy, Responsible

in its operations to enable the

consumption and production, Peace,

integration of renewable energy.

justice and strong institutions; and

For example, in 2015 its South Africa

Partnerships for the Goals. In line

operations installed a 750 kW rooftop

with these SDGs, each pillar has

photovoltaic plant and a 1 MVA/380

corresponding targets that drive

kWh battery-based PowerStoreTM

the business to contribute social,

for enhancing the use of renewables

environmental, and economic value.

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Hitachi Energy

ABOUT HITACHI ENERGY Hitachi Energy is a global technology leader that is advancing a sustainable energy future for all. We serve customers in the utility, industry and infrastructure sectors with innovative solutions and

world’s energy system to become more sustainable, flexible and secure whilst balancing social, environmental and economic value. Hitachi Energy has a proven track record and

services across the value chain. Together unparalleled installed base in more with customers and partners, we pioneer than 140 countries. Headquartered in

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technologies and enable the digital

Switzerland, we employ around 38,000

transformation required to accelerate

people in 90 countries and generate

the energy transition towards a carbon-

business volumes of approximately

neutral future. We are advancing the

$10 billion USD.

April 2022

Energy

Contacto Hitachi Energy México: Sandy Hernández +52 55 5433 8775 sandy.hernandez@hitachienergy.com www.hitachienergy.com/mx/es

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