CSO Magazine – January 2020 by Energy Digital

Innovation and community engagement in the energy transition JANUARY 2020 www.csomagazine.com

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DELIVERING QUALITY OF LIFE SERVICES SUSTAINABLY Environmentalism and ethics in procurement, Indigenous employment and waste management

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FOREWORD

elcome to the January issue

Elsewhere, we spoke with Pat Dever,

of CSO Magazine!

Chief Data Strategist at American

2020 is set to see a continuation of the sustainability-focused corporate strategies that accelerated at pace

energy provider Avista, about the company’s growth in an increasingly sustainability-focused marketplace.

in 2019, and our cover feature this

Algae, meanwhile, takes the stage in

month exemplifies the trend.

a feature detailing its lesser known

Catering and facilities firm Sodexo

qualities and how they could save

Australia is instilling sustainable and

the world.

ethical approaches to waste management, procurement and Indigenous employment. Mark Chalmers, CFO and Country President for Sodexo’s Australian operations, spoke with us about the Better Tomorrow 2025 roadmap underpinning this sustainability

This month’s Top 10 examines the world’s leading electric vehicle manufacturers and, as always, we run down some of the biggest energy and sustainability events from the coming months in our Events and Associations spread.

transformation. “Sodexo’s Better

If you would like to be featured in

Tomorrow 2025 aligns with the UN’s

an upcoming issue of CSO Magazine,

sustainable development goals and

get in touch at

focuses on three levels of impact: the

marcus.lawrence@bizclikmedia.com

individual, the community where we all thrive, and the environment within which we operate,” he says.

Enjoy the issue! Marcus Lawrence w w w.c so ma ga z i n e. com

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MARCUS LAWRENCE EDITORIAL DIRECTOR

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CONTENTS

SUSTAINABLE FUTURE STARTS WITH EFFICIENT UTILITIES ACCESSIBILITY

HOW ALGAE COULD SAVE THE WORLD

DFDS

APPROACHING CSR IN A GLOBAL ENVIRONMENT

Paper vs. plastic which is the most sustainable choice?

64 ELECTRIC VEHICLE MANUFACTURERS

80 56

The biggest sustainability events

84 Solis Renewable Energy

116 Corestate Capital Group

98 City of Los Angeles

130 AB InBev

142 Sapura Energy

154 Total Solar

DELIVERING QUALITY OF LIFE SERVICES SUSTAINABLY WRITTEN BY

DAN BRIGHTMORE PRODUCED BY

RYAN HALL

JANUARY 2020

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SODEXO

HOW SODEXO AUSTRALIA IS DELIVERING QUALITY OF LIFE SERVICES WHILE MEETING SUSTAINABILITY GOALS THAT ENRICH LIVES AND REDUCE WASTE

odexo has been operating in Australia, delivering quality of life services for over three decades, employing 5,000 people

across 300 different sites nationally. Sodexo offer around 100 different integrated services covering 14

asset management, building maintenance, facilities management, catering and hospitality, accommodation management, transport security, concierge services, wellness programmes and more. The one thing they all have in common is that they are delivered to improve the quality of life of clients and consumers across a range of industry segments from the corporate sector, healthcare and seniors, education, government and justice, to energy and mining clients. Mark Chalmers is CFO and Country President for Sodexo in Australia. “I’m responsible for driving corporate governance and strategic responsibility for our operations across Australia,” he confirms. “In the process, I work with the country leadership team to ensure we’re correctly engaged JANUARY 2020

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SODEXO

16 and aligned to drive growth retention

the community where we all thrive,

and development, while constantly

and the environment within which

improving profitability and attracting,

we operate.” Intrinsically linked to this

developing, and retaining the right tal-

initiative is Sodexo Australia’s three-

ent to sustain that growth.”

pronged focus on hunger, gender

Sodexo’s corporate and social responsibility journey is being shaped

and waste. Introducing some of the initiatives

by its Better Tomorrow 2025 roadmap.

Sodexo is implementing in Australia

“It’s a global roadmap for Sodexo

to elevate its culture and improve the

which drives our corporate social

quality of life for its workers, Chalmers

responsibility initiatives,” explains

says: “We label one of our most impor-

Chalmers. “Sodexo’s Better Tomorrow

tant initiatives ‘I Hear You’. It was

2025 aligns with the UN’s sustainable

launched five years ago to increase

development goals and focuses on

awareness and understanding around

three levels of impact: the individual,

the mental health of our people and

JANUARY 2020

CLICK TO WATCH : ‘BETTER TOMORROW 2025’ 17 trying to elevate approaches to men-

Sodexo’s commitment to Australia’s

tal health to match our approach to

Reconciliation Action Plan (RAP) is

physical health and safety. We’re try-

having a positive impact on Indigenous

ing to provide a healthy workplace

engagement, enhancing supplier

environment where people will develop

diversity and supporting new ways of

and have a positive sense of them-

working together, believes Chalmers.

selves while feeling supported with

“We began down this road back in

any mental health issues.” He notes

2009,” he reveals. “Since then, we’ve

the feedback received is among the

achieved our second Elevate RAP —

most positive for any of the pro-

the highest status for organisations

grammes Sodexo runs. “People who

that have been acting and delivering

are raising issues are supporting

in this area. Among the benefits, in the

each other. It’s good to know we’re

past 10 years, we’ve employed nearly

not falling on deaf ears and people

1,100 Aboriginal and Torres Strait

are becoming involved.”

Islander people. Within that, our w w w.c so ma ga z i n e. com

SODEXO

Aboriginal and Torres Strait Islander

establishment of businesses or refin-

employees have earned more than

ing businesses process to be more

$34mn in wages that directly impacts

commercially competitive.”

the community. At the same time, it’s

Chalmers explains many of these

not just about employing Indigenous

Indigenous businesses have gone

people, it’s about empowerment —

on to become major suppliers of their

supporting and helping grow

products in the open market. “One

Indigenous businesses. In our last

example is Yaru Water,” he says.

financial year, we’ve spent more than

“It is a provider of bottled water from

$24mn with Indigenous owned busi-

fresh springs on Indigenous-owned

nesses. We operate on the basis

land, that supplies to us across our

that we’re not just treating this as

network. Now its product sits on the

a transactional relationship, we

supermarket shelf next to Coca-Cola

are mentoring and guiding the

and Pepsi.”

JANUARY 2020

This year, Sodexo announced a

Clontarf Foundation CEO Gerard

national partnership with the Clontarf

Neesham. “We look forward to this

Foundation, which helps improve edu-

programme, with Sodexo’s support,

cation, self-esteem, and employment

continuing to grow and help more

prospects for young Aboriginal and

and more boys contribute meaningfully

Torres Strait Islander students. “We

to society.”

rely on the support and national part-

Helping Sodexo amplify its sus-

nership of organisations like Sodexo

tainability efforts, Australia’s leading

to grow and expand our national foot-

food reclaim company YUME is an

print; already the programme helps

agency set up to identify quality food

more than 8,000 boys in 128 schools

that would otherwise be headed to

across Western Australia, the Northern

landfill. This might be products that

Territory, South Australia, Victoria, New

were incorrectly labelled or that didn’t

South Wales and Queensland,” says

meet a required delivery time to a

E XE CU T I VE PRO FI LE

Mark Chalmers Chalmers is a proven CFO with extensive experience in large national and multinational organisations including GlaxoSmithKline. He has a track record of delivering results and driving organisational change initiatives. “I’ve gained 30-yearsexperience in the manufacturing, FMCG and pharmaceutical environments,” confirms Chalmers. Through functional dedication and commercial application, he leads the formation and integration of business at Sodexo Australia. A f lexible communicator, his facilitation skills support membership with contributions to senior management teams at local and international level.

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SODEXO

“ Sodexo’s Better Tomorrow 2025 aligns with the UN’s sustainable development goals and focuses on three levels of impact: the individual, the community where we all thrive, and the environment within which we operate” — Mark Chalmers, CFO & Country President, Sodexo Australia

JANUARY 2020

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“We’ve received our second Elevate RAP… in the past 10 years, we’ve employed nearly 1,100 Aboriginal and Torres Strait Islander people. Within that, we’ve provided $34mn worth of employment. At the same time, it’s not just about employing Indigenous people, it’s about empowerment — supporting and helping grow indigenous businesses” — Mark Chalmers, CFO & Country President, Sodexo Australia

tonnes of food going to waste every year,” says Yume Founder & CEO, Katy Barfield. “Yume partners with businesses to do things differently and say no to food waste through direct

supermarket chain and were rejected.

action. We are incredibly grateful to

“We work with YUME and identify

Sodexo for being an early adopter

these quantities of products and,

of our new technology across their

where possible, look to acquire from

network and for expanding on their

YUME rather than our other sources

sustainable procurement efforts.”

and use that product in our supply

Allied to its support for Yume, Sodexo

chain.” Last year, Sodexo purchased

is working with Foodbank Australia

87 tonnes of food from YUME, which

on events like their annual Servathon.

equates to around two and a half million

“We are incredibly grateful for the

litres of water that’s saved around 74

ongoing support Sodexo, and in

tons of CO2 emissions.

particular their employees, provide

“At Yume we are building a more

to Foodbank Australia. The funds

transparent and connected food

raised from the Servathon will enable

industry — one that stops 4.1 million

us to offer over 150,000 meals for w w w.c so ma ga z i n e. com

SODEXO

“Yume partners with businesses to do things differently and say no to food waste through direct action. We are incredibly grateful to Sodexo for being an early adopter of our new technology across its network and for expanding on its sustainable procurement effort” — Katy Barfield, Founder & CEO YUME

JANUARY 2020

COMPANY FACTS

Better Tomorrow 2025 Better Tomorrow 2025 consists of nine robust commitments designed to reinforce the culture of responsible behaviour throughout Sodexo’s business. Fully aligned with the UN’s Sustainable Development Goals, each commitment is underpinned by a measurable objective allowing to constantly monitor progress. Due to the nature of Sodexo’s activities, Better Tomorrow 2025 particularly addresses the Group’s important role in tackling three issues: Hunger Sodexo aims to contribute its expertise to eradicating world hunger, both through its own operations and through the charitable work and employee activism it supports. The Group provides advice and support for people at risk of malnutrition, redistributes surplus food, and funds community gardens to encourage food autonomy. Sodexo also supports Stop Hunger Worldwide, a non-profit organization and global movement to address hunger founded 20 years ago by Sodexo employees.

Gender As the world’s 19th largest employer, Sodexo has a large-scale impact on gender equality and is already leading the genderbalance debate: 50% of Sodexo’s board and more than 30% of the Group’s senior executives are women. Sodexo also created the Sodexo Women’s International Forum for Talent (SWIFt), now known as SoTogether, a global advisory board dedicated to achieving equality at all levels of the company. Waste Sodexo is committed to continuing to reduce waste in its operations and through the services it delivers: In 2011, the Group created “WasteWatch powered by LeanPath,” a global food waste prevention programme that helps identify causes of waste and define plans to reduce it. Sodexo also shares its expertise and collaborates with other businesses and NGOs to reduce food waste. In 2015, it co- founded the International Food Waste Coalition.

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SODEXO

JANUARY 2020

distribution to our charity network,” confirms the organisation’s CEO Brianna Casey. “This will help ensure children can start the day with a healthy breakfast, pensioners can enjoy a cup of tea with a friend and families can share a nutritious meal.” Technology underpins such initiatives at Sodexo maintains Chalmers. “We’re introducing a data-driven WasteWatch programme enabling our sites to capture food waste data and identify opportunities that reduce waste and drive the change there as to how we use it. We’re looking to implement that over the next 12 months both in Australia and across the world with Artificial Intelligence (AI) preventing around 50% of our food waste.” w w w.c so ma ga z i n e. com

SODEXO

Sodexo Australia is also leveraging

expert who needn’t visit a remote site

technology to enhance its operations

to offer maintenance instructions. This

through Augmented Reality (AR) and IoT.

not only reduces costs and safety haz-

“Installing sensors that are able to capture

ards, but aids collaboration, saving time

data centrally allows us to develop pre-

and a whole lot of wastage.”

dictive analytics to help us understand

Sodexo’s efforts with technology

when assets are going to fail; from there,

were applauded in October when the

we can work on scheduled maintenance

company received the Tech for Good

in a more structured way,” he explains.

award at the 6th annual eCAC40

“AR glasses then allow our staff on site

Ceremony organised by Les Echos.

to connect with an external specialist

The award recognises how Sodexo’s

JANUARY 2020

1982

Year founded

€22bn+

Consolidated revenue as of August 2019

5,000+ Number of employees

digital transformation is driving sus-

are clear, pledges Chalmers: “We’ll

tainable and responsible growth,

continue to improve our client offerings

especially when it comes to food

and grow our business in Australia by

waste. Earlier in 2019, the company

providing a broader range of quality

was also named Indigenous Employer

of life services while supporting corpo-

of the Year and is continuing to step

rate responsibilities and keeping our

up its efforts around inclusion & diver-

people safe.”

sity through its collaboration with e.motion 21 supporting young people with disabilities into the workforce. The goals for 2020 and beyond w w w.c so ma ga z i n e. com

ENERGY MANAGEMENT

JANUARY 2020

SUSTAINABLE FUTURE STARTS WITH EFFICIENT UTILITIES ACCESSIBILITY As businesses across sectors strive towards a sustainable, carbon-neutral future, energy providers can be expected to set a precedent. Pat Dever, Chief Data Strategist at Avista, discusses its sustainable growth WRITTEN BY

RACHAEL DAVIS

w w w.c so ma ga z i n e. com

ENERGY MANAGEMENT

erving four northwestern US states of Washington, Idaho, Oregon and Montana, and providing electricity to 389,000 cus-

tomers and natural gas to 357,000, Avista is a utility provider which strives to serve its customers differently. For Pat Dever, Chief Data Strategist at Avista, this means committing to an achievable sustainability strategy that serves all of Avista’s customers regardless of socioeconomic status, a democratic data system to provide innovative insights and ensuring the grid’s readiness for a carbon-efficient future. Avista is committed to providing carbon neutral electricity by the end of 2027 and to deliver

100% clean energy by 2045. When working with an energy grid that has primarily served a fossil fuel economy for decades, ensuring the grid is prepared for a shift towards a higher percentage of the population using greener energy and technologies is integral to a successful transition. “That’s really one of our biggest challenges, I think,” says Dever. “Our distribution systems are ageing. We are actively investing and updating those distribution systems, but the capacity for energy was based on the past, and so as technologies such as electric vehicles (EVs) come into place, that is going to put a greater load on the system.” As EVs gradually become more widespread, Avista is utilising this intermediary period to make JANUARY 2020

investments in the system to support future capacity demands. Using data to understand the penetration of EVs, the

â&#x20AC;&#x153;We are committed to providing carbon neutral electricity by the end of 2027, and to be 100% clean energy by 2045â&#x20AC;?

data analysis team can make predictive analytic decisions and invest in the areas that need it most. Looking at data in a granular fashion to understand how a consumer is using their energy, Avista can help customers make different, more sustainable and energy efficient choices in their home systems. w w w.c so ma ga z i n e. com

ENERGY MANAGEMENT

“ You’re making a choice to invest your dollars toward the ultimate goal of having a carbon-free power system” “Is their furnace inefficient? Is their air conditioning inefficient? Is their refrigerator inefficient? These are the things we are trying to understand,” Dever explains. “If we can create programmes and

opportunities to educate customers and build awareness about their energy usage, we can engage them to possibly make different choices about their energy consumption. At the same time, we can avoid or delay the need to invest in building or using additional power generation or infrastructure. It’s a win-win outcome.”

Avista is helping reduce carbon emissions by installing electric vehicle chargers in residential homes and commercial locations. Investing in electric transportation will help meet the utility’s clean energy goals

An energy sharing market is an opportunity that Avista believes to be beneficial to this culture of conscious energy. A transactional system in society, whereby neighbours can share energy based on their ability to generate excess power - for example

JANUARY 2020

CLICK TO WATCH : ‘AVISTA UTILITIES | ALWAYS ON – OVERVIEW’ 35 through solar panels on rooftops -

optimum way to prepare for the ‘next

could allow people to choose the type

big thing’ in sustainable energy for

of energy they want to consume.

Avista. “As new technologies such as

“Today we have a hub and spoke

EVs gain popularity, how do we sup-

system of utility generation, with the

port that demand in an environmentally

utility company being the hub and cus-

friendly way? We feel that providing a

tomers being spokes. In the future, we

technology, a platform to allow for an

believe that we could see a ‘mesh

energy sharing opportunity is the

type’ energy sharing system, with the

place for that,” Dever says.

same or similar infrastructure that we

Effective data management and

have today, but the transactions will

analysis is integral to this develop-

be different,” says Dever.

ment. Democratising data across the

Allowing individuals to manage their

enterprise, Dever and his team can

consumption or generation, inde-

expose data appropriately to those in

pendent of the utility company, is the

the company that have a need to use it w w w.c so ma ga z i n e. com

ENERGY MANAGEMENT

More than half of Avistaâ&#x20AC;&#x2122;s generation portfolio is already renewable, thanks to clean, low-cost, reliable hydropower from several hydro generation facilities such as Noxon Rapids Dam in their day-to-day jobs. In partnership

For an effective, universal transition

with Alation, data strategists at Avista

to green energy, utility companies

can expose data in a user-friendly way

need to ensure that their sustainable

to business analysts, allowing them to

products and services are accessible

search in plain English terms for infor-

to all, regardless of income and socio-

mation. An analyst can then use that

economic status.

data to derive insights and then

In the cities which Avista serves, there

develop products and services to

is a significant number of low-income

improve the experience for customers,

families; ensuring the sustainable

whether that is assisting them to make

transformation is sensitive to their

their current energy consumption

needs and that power prices remain

more efficient, or provide support with

as affordable as possible is crucial.

new, sustainable approaches to energy that may suit them. JANUARY 2020

Data strategy is used in this capacity too. By identifying customers that

â&#x20AC;&#x153;Providing a platform to allow for an energy sharing opportunity is the place for supporting demand in an environmentallyfriendly wayâ&#x20AC;? struggle with payments and collecting

sustainable energy provisions. In a

data based on consumption, Avista

part of the United States that cannot

can work with local agencies to

benefit as much from solar power due

ensure low-income customers are

to long winters and reduced sunlight,

appropriately connected to gain

Avista is creative with its initiatives in

assistance. Partnering with Spokane

energy sharing, alternative power

Neighborhood Action Partners

generation methods and considering

(SNAP) - an organisation local to

how best to serve its diverse socioec-

Avistaâ&#x20AC;&#x2122;s head office in Spokane,

onomic market. Its approach displays

Washington - the company can better

how commercially-widespread sus-

identify and assist local people who

tainability is best provided from the

are vulnerable, understanding their

ground up - with utility providers

needs and how their energy efficiency

using data analysis to assist consum-

can be improved to help save costs

ers as they strive towards the goal of

while improving sustainability.

a 100% clean energy grid in the not-

Partnering digitisation, data usage

so-distant future.

and environmentalism in the utilities sector is an innovative approach to catering to the growing demand for w w w.c so ma ga z i n e. com

COVERING EVERY ANGLE IN T HE D I G I TA L A G E The Business Chief platforms offer insight on the trends inf luencing C and V-level executives, telling the stories that matter

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TECHNOLOGY

HOW ALGAE COULD SAVE THE WORLD WRITTEN BY

MARCUS LAWRENCE

JANUARY 2020

Widely considered to be a promising biofuel, the applications of algae are numerous, and the opportunities it presents are staggering. Here, we detail some of the ways algae could solve some of our most pressing challenges

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TECHNOLOGY

n 1997’s Flubber, Robin Williams’

to turn on its viability. In the meantime,

Professor Brainard was right to

its uses as a biodegradable source

turn his attention to green slime as

of packaging, for waste control, as

an energy source, but its real-world

a means of carbon capture, and even

alternative proves to be a far tamer and

as a base material for carbon fibre

more readily available solution. Algae:

are renewing interest in its potential

a diverse collection of eukaryotic

as a sustainable solution for myriad

organisms that produce around half of

industries. What follows is a break-

the world’s oxygen. The photosynthetic

down of just a few ways in which algae

slimes are not only diverse in their

could save the world.

range of species, but also in their applications. While algae’s potential as a

BIOFUEL

fuel source remains stunted by the lim-

As a biofuel, algae both solves and

its of technology, the tide is beginning

creates problems. While extracting

JANUARY 2020

“You have this very new advanced material where you can actually store atmospheric carbon indefinitely” — Thomas Brück, Professor, Technical University of Munich

oil from algae to be used as a biofuel

10% of EU transport fuels expected to

would yield far larger quantities of

be supplied by biofuels, ponds three

fuel than the same acreage of land-

times the area of Belgium would be

based plants, it requires significant

needed.” He added that, “For the algae

resources to do so. Algae needs enor-

in these ponds to produce biofuel, it

mous amounts of water and nutrients

would require fertiliser equivalent to

in order for production to compete

50% of the current total annual EU crop

with crude oil, and the space required

plant needs.” As with so many things in

poses a considerable challenge in

the sustainability space, we’re waiting

itself. According to Power Technology,

for technology to provide the answer to

Kevin Flynn, a marine biology professor

these challenges, but those answers

at the University of Swansea, said in

may be closer than you’d think.

2017: “Simulations of microalgal biofuel

Power Technology noted that

production show that, to approach the

Synthetic Genomics, a partner of w w w.c so ma ga z i n e. com

TECHNOLOGY

ExxonMobil, believes it will be capable of producing 10,000 barrels of algal biofuel each day by 2025 (if current trends continue) as a result of the progress made in increasing lipid content through genetic modification. While scaling this solution could provide a credible alternative to crude oil, it may come to fruition too late to be of use. Biofuel as a substitute for crude oil carries similar downsides when it comes to their use: while their production is less harmful for the environment than 44

drilling and fractional distillation, they are nonetheless burned inside internal combustion engines (ICE) and release greenhouse gases. As governments around the world ramp up their efforts to remove fossil fuel-dependent vehicles from the roads, efficient algae production may rise only to be met with obsolescence. In other words, algae cannot be a substitute in ICEs if they’re no longer in use. Not only that, but the ethical dilemma of gene modification – namely that it could yield an exceedingly -competitive form of algae that damages ecosystems – is as apparent for algae as any other area where it is practised. JANUARY 2020

“Algal packaging” is extremely versatile, capable of being the basis for both rigid and flexible materials, and is, vitally, “biodegradable”

the incredibly strong and lightweight qualities of its regular forbear. As algae grows, it absorbs a tremendous amount of carbon dioxide which would be released into the atmosphere if burned in an engine as a biofuel. As carbon fibre, however, the algae’s carbon dioxide content is trapped within the material. “You have this very new advanced material where you can actually store atmospheric carbon indefinitely,” Thomas Brück, Professor at the Technical University of Munich, told EcoWatch. Developing algal carbon fibre at scale would require considerable investment and resources but, as a method of carbon capture that produces oxygen as it grows, bringing

CARBON FIBRE

the material into the mainstream is

Thankfully for algae’s dormant potential

a stirring prospect.

to save the world, biofuel is far from the only trick in its locker. EcoWatch

FOOD

reported in October 2019 that sci-

The climate crisis poses a major threat

entists have successfully produced

to food stocks around the globe, and

carbon fibre with algae oil. It seems

the food industry is already beset with

redundant at this point to explain the

myriad sustainability challenges. With,

benefits of carbon fibre, itself now

vegetarian and vegan meat alternatives

second to graphene in the rankings

requiring significant resources to

of humanity’s ultimate materials, but

produce, and the widely documented

there’s more to algal carbon fibre than

environmental damage caused by w w w.c so ma ga z i n e. com

TECHNOLOGY

“ Micro-algae could combat malnutrition, replace soy protein used in livestock feed and reduce associated deforestation, boost air quality through carbon capture and oxygen production, and help clean wastewater” beef farming being no less apparent,

The result is a closed-loop system

there are serious questions about

capable of producing vast quantities of

how we can feed our ever-expanding

micro-algae, one of the fastest-grow-

populations sustainably both now and

ing organisms on Earth. According to

in the future. Algae provides a credible

Space10, it can double its volume in as

means to ease the strain, with Space10

little as six hours. At scale, this method

being one company pioneering

of cultivation could be an answer to

research into its viability. The IKEA-

the aforementioned issues facing

dedicated independent research and

algal biofuel and carbon fibre produc-

design lab has developed an ‘Algae

tion. As a food source, micro-algae is

Dome: a four-metre tall wooden pavil-

remarkable in itself. High in nutrients,

ion which contains a photo-bioreactor.

vitamins and proteins, micro-algae

JANUARY 2020

beta carotene than carrots, has an iron content that outstrips spinach 50 times over, as well as being rich in amino acids, B vitamins, calcium and niacin.

PACKAGING Bio-based packaging is an exciting concept that’s gaining traction in many industries. We recently reported that Hellmann’s is in the process of replacing its sauce sachets with a packaging alternative made from seaweed – a form of macroalgae – that’s proving to be a hit with consumers. Algal packaging is extremely versatile, capable of being the basis for both rigid and flexible materials, and is, vitally, biodegradable. This potential solution to could supplement diets to combat

environmental harm caused by single-

malnutrition, replace soy protein used

use plastics was first developed by

in livestock feed and thereby reduce

Chile-based designer Margarita Talep

associated deforestation, boost air

in response to her frustration with the

quality through its carbon capture

proliferation of single-use plastics in

and oxygen production, and provide

the food industry.

a cleaning medium for industrial

This, a small selection of ways that

wastewater. Space10 enthuses that

algae could change the world, high-

spirulina, a strain of micro-algae

lights the efficacy with which nature

that’s suitable for human consumption,

itself can offer some of the most viable

trumps a number of popular vegetables

solutions to the environmental crises

at their own game: it contains more

of the modern age. w w w.c so ma ga z i n e. com

S U S TA I N A B I L I T Y

VS.

WHICH IS THE MOST SUSTAINABLE CHOICE? As firms worldwide review the sustainability of their packaging, Gladys Naylor assesses how the benefits of both plastic and paper raise broader questions about the most viable solutions WRITTEN BY

GLADYS NAYLOR

JANUARY 2020

w w w.c so ma ga z i n e. com

S U S TA I N A B I L I T Y

he European Union recently voted to declare a climate emergency. This is a signifi-

cant turning point, reflecting the rapid escalation of the climate crisis despite efforts to reduce damage to the environment. While there are many factors influencing climate change, plastic pollution has become the ubiquitous symbol of the degradation of our natural environment and has brought the need for sustainable packaging to the front of public consciousness. 50

Packaging serves many purposes: protecting content during transport and storage, promoting content to the customer, preserving content to lengthen lifespan and reduce waste. So, how do you decide what is more important in the climate crisis? The need to minimise food waste, make fragile products such as medicines more accessible to people in remote places, or the need to reduce packaging to eliminate waste and CO2 emissions used when manufacturing packaging itself? To add another layer of complexity - there is no easy answer when it comes to deciding what the most JANUARY 2020

â&#x20AC;&#x153;There is no easy answer when it comes to deciding what the most sustainable material choice for packaging isâ&#x20AC;? sustainable material choice for packaging is. There are so many variables to consider around raw material sourcing, functionality, recyclability and the like. Paper, plastic, glass, metal â&#x20AC;&#x201C; each material has its advantages depending on use, and a different environmental impact. Many Life Cycle Assessments do not take into consideration waste pollution or the end-of-life impacts of materials, nor the benefits of using a truly renewable raw material in production, like wood for producing paper. At Mondi we believe paper should be used wherever possible, and plastic only when useful. There is no doubt that plastic has an important role to play, for example, for medical w w w.c so ma ga z i n e. com

S U S TA I N A B I L I T Y

applications and preventing food waste and associated resource loss (which is a significant contributor to climate change); where possible, using paper is preferable as it’s a renewable raw material that can be responsibly sourced and widely recycled. Life Cycle Assessments frequently deem paper bags to be less environmentally-friendly than plastic ones. It is true that the levels of energy and water consumption during the paper production process is higher, and high-density 52

plastic shopping bags can perform better than low-quality paper bags in terms of durability and waste volume. However, paper can be easily recycled at scale – in fact, it is one of the most commonly recycled materials worldwide. A benefit of paper is that it can be compostable, unlike most other packaging materials. There is a widespread misconception that fibre-based packaging is driving deforestation and contributing to wider environmental problems. However, responsibly managed forests protect trees by giving them a value so that the land is not deforested to make way for other uses. JANUARY 2020

“Both paper and plastic packaging are necessary: one can’t wholly replace the other as they each have distinct advantages and uses”

As a leading global packaging and paper producer, with 80% of our business being fibre-based, we support a landscape approach to ensure that our forests are protected, continue to function and provide benefits in the long-term. This involves a network of significant conservation areas, plus â&#x20AC;&#x2DC;wood harvestingâ&#x20AC;&#x2122; areas, linked together in a mosaic landscape â&#x20AC;&#x201C; we advocate this approach for our industry and others. We set aside 24% of our own forests for conservation in order to maintain biodiversity. By investing in our paper-producing infrastructure, we Working forests actually play a critical

also improve energy efficiency and

role in ensuring the long-term health

reduce overall carbon emissions.

of our planet. Managed responsibly,

This allows us to release 93% of the

forests producing fibre-based prod-

water we withdraw from the environ-

ucts can be part of the solution to the

ment for manufacturing back into the

global climate crisis.

aquatic environment after treatment.

A circular approach, whereby har-

This is the fifth year that Mondi is

vesting does not exceed annual

working with WWF in a global part-

growth and conservation areas are

nership, and our relationship with

respected, maintains the health of

WWF South Africa goes back over

forests and ensures a continued

two decades. As part of this we focus

supply of wood and other forest

on our stewardship of forests, climate

products and services without defor-

and energy, freshwater and other eco-

estation or degradation.

systems. We are also a WWF Climate w w w.c so ma ga z i n e. com

S U S TA I N A B I L I T Y

â&#x20AC;&#x153; Many Life Cycle Assessments do not take into consideration waste pollution or the end-of-life impacts of materials, nor the benefits of using a truly renewable raw material in production, like wood for producing paperâ&#x20AC;?

Savers member, committed to the transition to a low-carbon economy and reducing greenhouse gas emissions across our entire value chain. We take our environmental responsibilities very seriously and promote environmental stewardship in our sector. As such, developing sustainable packaging solutions whether from paper or plastic is, and has been for a long time, at the very heart of our business. JANUARY 2020

biggest retailers, currently uses these trays for its organic cheese. In 2018, we set up our EcoSolutions team to support our customers in finding the most sustainable solutions for their packaging needs, reducing the volume of raw materials used, innovating with recycled materials and recommending products specially designed for recycling. We are supporting our customers to make changes such as switching from plastic-based packaging to a fibre-based solution or transitioning from rigid plastic to flexible plastic and thereby save up to 70% of the material needed. At a time when the world is scramOne of our most recent fibre-based

bling to reduce global waste, both

products is a paper food tray, which

paper and plastic packaging are nec-

can replace the plastic trays for food

essary: one canâ&#x20AC;&#x2122;t wholly replace the

such as sliced cheese or meat com-

other as they each have distinct advan-

monly found in the deli sections of

tages and uses. Mondiâ&#x20AC;&#x2122;s focus is on

many retailers. Our paper trays

being sustainable by design, moving

reduce plastic use by up to 70% and

away from only thinking about materi-

carbon footprint by about two-thirds

als to a broad approach of sustainable

when compared with the previous

systems and circular economies.

packaging, and importantly there is no compromise for the retailers on shelf life. REWE Group, one of Austriaâ&#x20AC;&#x2122;s

Written by Gladys Naylor, Group Head of Sustainable Development, Mondi Group w w w.c so ma ga z i n e. com

T R A N S P O R TAT I O N

DFDS

APPROACHING CSR IN A GLOBAL ENVIRONMENT

Sofie Hebeltoft, Head of CSR at DFDS, explains the complexities of maintaining CSR in a global organisation WRITTEN BY

JANUARY 2020

OLLIE MULK ERRINS

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T R A N S P O R TAT I O N

FDS is a ferry and logistics company with its headquarters in Copenhagen, Denmark. The firm provides transport

for freight and passengers across Europe, including Turkey, and has an extensive network that ranges from the UK to Scandinavia and the Baltic. Sofie Hebeltoft, Head of CSR at DFDS, has managed the best practices of DFDS’s departments worldwide during her time in the role. “I’m responsible for CSR on a group level, which means I focus on creating the best conditions for sustainability in our business,” she says. “We’re operating across a variety of 58

markets so it’s not easy to create a one-size-fits-all solution. I try to enable us to do our best, depending on the varying conditions that we operate under and increase awareness of CSR and sustainability in all that we do.” There has been a global culture shift regarding attitudes towards sustainability and companies’ social responsibility. The public has become increasingly aware of the urgency and attention that fair treatment and worker rights demand and with this awareness has come an opportunity for companies to become an agent for change. “Sustainability is something that is demanded from both customers, employees, and the surrounding society,” explains Hebeltoft. “What makes the change is that the connection between business and sustainability is getting stronger. JANUARY 2020

“ WE MUST BE OPEN AND HONEST ABOUT WHAT WE’RE DOING, WHERE WE THINK IT’S DIFFICULT, WHERE WE HAVE FAILED AND WHERE WE COULD IMPROVE” — Sofie Hebeltoft, Head of CSR, DFDS 59

It’s becoming increasingly obvious to people that sustainability and the environment is also a business opportunity but our current task is to identify these opportunities.” The challenges with working in a relatively fresh sector are primarily centered around the prospective cultural differences. What could potentially be considered a social responsibility by one area of the business may not be a priority for its partners overseas. “Diversity in w w w.c so ma ga z i n e. com

T R A N S P O R TAT I O N

Copenhagen, or in the UK, can be very

at an average of 5.7%, according to

different from diversity in Turkey,”

a 2018 study by Logistics Manager,

explains Hebeltoft. “We don’t believe

with women seeing less pay and fewer

that setting the same targets for all

opportunities in executive positions.

locations will be relevant because

“We need to make the industry more

it would be impossible to achieve

attractive to females and other minori-

identical results, whereas in other

ties,” she says. “I think that’s one of the

countries it might be unambitious.”

main challenges and one of the things

This challenge means that each

we should address. We aim to have

aspect of a CSR strategy needs to take

a diversity ratio of at least 30/70 as

geographical and cultural considera-

this is where you’ll start to have the

tions into account. The IMPA ACT

best discussions.”

outlines a set of governances for 60

community, best practice and partnership goals regarding CSR within the supply chain sector. DFDS has made this a crucial part of its CSR strategy. “We have included the IMPA ACT in our supplier code of conduct. It’s a really good tool for dialogue,” says Hebeltoft. “If there are development areas, it’s easier to identify and to see what is the right way to go. From there, you can make a plan to ensure that everyone is working accordingly.” As part of its CSR goals, DFDS has risen to the challenge of increasing gender equality throughout its business. Gender pay gaps within the logistics industry currently sit JANUARY 2020

Other factors have been considered by DFDS when tackling its CSR strategy.

CLICK TO WATCH : ‘DFDS NAMED WORLD’S BEST FERRY OPERATOR FOR NINTH CONSECUTIVE YEAR!’ 61 The balance between work and family

“ DIVERSITY IN COPENHAGEN, OR IN THE UK, CAN BE VERY DIFFERENT FROM DIVERSITY IN TURKEY” — Sofie Hebeltoft, Head of CSR, DFDS

life has also seen a shift in attitudes recently, where daycare and paternity leave can create obstacles that can force families to commit to unfavorable choices. “If you need to have your child in daycare for five days a week it can cost a lot of money, it’s almost impossible for a family to have two full time employees,” explains Hebeltoft. “Often, it will be women who goes part-time, which is reducing the possibility of having an equal career to men. That’s very important to DFDS as we really want to have our male leaders and w w w.c so ma ga z i n e. com

T R A N S P O R TAT I O N

775,000 Passengers per year

€1.6bn Revenue in euros

Countries served 62

JANUARY 2020

managers take their fair share of the paternity leave.” Hebeltoft has been at the heart of the progression within DFDS since joining the company, by encouraging the difficult discussions that the industry needs to have. She has been able to see first-hand the transformation of DFDS into becoming a global thought leader on equality in the logistics sector. “A few years back, CSR was something that you did only to promote yourself, to show how

good you are,” she explains. “However,

In terms of some of the challenges

now the debate and the discussions

we’re facing, we need to collaborate

are around how we need to take this

to ensure we can create solutions that

seriously. We must be open and

make it possible to be both innovate

honest about what we’re doing, where

and competitive while still generating

we think it’s difficult, where we have

a sustainable business and profitabil-

failed and where we could improve.”

ity as well.”

On tackling the subject of sustainability across the infrastructure and logistics industry, Hebeltoft adds, “It’s vital to be ready to cooperate with others within your own industry or with customers and suppliers. 63

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T O P 10

JANUARY 2020

Electric vehicle manufacturers CSO Magazine takes a look at the leading electric vehicle manufacturers around the globe as sales continue to increase at pace WRITTEN BY

OLLIE MULKERRINS

w w w.c so ma ga z i n e. com

T O P 10

249mi RANGE

8hrs

CHARGE TIME AT 220V

ÂŁ11,400 PRICE

Chery CHERY TIGGO

Chery is a Chinese automotive manufacturer competing with other state-owned, larger brands in the region. The company has predicted sales of 20,000 units in 2020 as demand grows. In 2012, Jaguar Land Rover formed a joint venture with Chery to produce Jaguar and Land Rover vehicles for the Chinese market. Chery produced its first EV in 2009, the Chery S18. The latest model of the Tiggo will have automated driving capabilities as well as an interactive steering wheel which can be folded to become a game controller while the vehicle is in automated driving mode.

JANUARY 2020

Mitsubishi i-MiEV

Mitsubishi is a Japanese multinational founded in 1970. In 2009, it started selling the i-MiEV a year ahead of schedule. The automaker had initially planned to lease the vehicle before its retail launch in 2010. Since then, the company has announced its intention to add five more EVs to its range and plans to cut the average price of its vehicles to around ÂŁ16,500. The Mitsubishi i-MiEV includes an MiEV Power Box which enables the vehicle to power household devices in an emergency - an example of the way that EVs at large are envisaged as potential temporary batteries for grids themselves. 67

62mi RANGE

8hrs

CHARGE TIME AT 220V

ÂŁ18,000 PRICE

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PURPOSE LED, PERFORMANCE DRIVEN

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T O P 10

279mi RANGE

9.58hrs CHARGE TIME AT 220V

ÂŁ36,645 PRICE

Kia KIA SOUL EV

Kia, founded in 1944 and based in Seoul, became the second largest automotive manufacturer in South Korea in 2015. Kia is minority owned by Hyundai after the company bought a 33.88% stake valued at over $6bn. In turn, Kia holds more than 20 minority stakes in Hyundai subsidiaries. In the EV space, the company supplies affordable yet robust EVs on a global scale. Its Kia Soul EV, a twin of its non-electric counterpart, the Focus Electric, holds a battery capable of 100-mile journeys in a relatively compact city vehicle.

w w w.c so ma ga z i n e. com

T O P 10

80mi RANGE

32hrs CHARGE TIME AT 240V

£17,505 PRICE

Hyundai KONA EV

The Kona EV currently has a waiting list of over 30,000 customers, and the rising demand has put Hyundai under pressure to invest in further battery production and resource acquisition. The vehicle is an SUV designed around a rugged appearance and space enough to be used as a family vehicle. Hyundai’s website gives a wide array of optional extras to customise the vehicle to a user’s requirements.

JANUARY 2020

Volkswagen E-GOLF

The German car manufacturer that created the VW Beetle has produced an electric variant of another of its most successful models, the VW Golf. In 2016, the company announced its intention to expand its line of vehicles to 30 EV models to meet the expected demand that new regulations and financial incentives will bring. Volkswagen develops its battery technology at the Centre of Excellence for Battery Cells in Salzgitter, Germany, with a team of 300 scientists. The e-Golf has been praised as a strong entry level EV as its design and utility have based on more traditional vehicles, making it a small leap to move to EVs, according to Carmagazine. Familiarity, of course, will be essential for EVs to make an impact diverse across generations and markets.

80mi RANGE

17hrs

CHARGE TIME AT 220V

ÂŁ25,575 PRICE

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ÂŠ2019 Graphic Packaging International the wholly-owned operating subsidiary of Graphic Packaging Holding Company (NYSE: GPK)

T O P 10

168mi RANGE

20hrs CHARGE TIME AT 220V

ÂŁ28,000 PRICE

Nissan NISSAN LEAF

Nissan released the first mass-produced EV aimed at families looking to become more environmentally responsible, the Nissan Leaf. It has used carryover mechanicals from traditional models, as well as keeping a more traditional aesthetic in its EV series. Nissan combined this approach with next-gen battery technology to afford its Leaf E+ model a much higher capacity. The original Nissan Leaf has been the best selling EV across the globe up until recently, with sales reaching an all time high of 87,000 units in 2018.

w w w.c so ma ga z i n e. com

T O P 10

193mi RANGE

9.7hrs CHARGE TIME AT 220V

£34,445 PRICE

BMW i BMW i3

BMW i is a subsidiary of BMW founded in 2011 after BMW announced the development of its i3 and i8 series in 2009. As of November 2016, BMW i has released four models which share technology with BMW’s automotive line to ensure the vehicle manufacturer’s continued reliability and innovation. Two years after reaching markets in 2016, the i3 became the third best selling all-electric vehicle in production. The vehicle has also been produced from 85% recyclable materials, and approximately 27 used plastic bottles go into the construction of seats and door parts.

JANUARY 2020

259mi RANGE

9hrs

CHARGE TIME AT 220V

ÂŁ14,999 PRICE

BAIC BAIC EU5 R600

BAIC Motor is a Chinese, state-owned enterprise. The company has made SUVs, commercial, agricultural and military vehicles under the BAIC Group umbrella and became incorporated in 2010. The company has worked with Nissan and Mercedes technology to develop its current line of vehicles. BAIC generated $19.2bn during 2018 and has invested $2.8bn into developing intelligent, connected EVs for the near future under a new brand: BEIJING.

w w w.c so ma ga z i n e. com

T O P 10

256mi

0000

RANGE

YEAR FOUNDED

8.6hrs

$0.0bn

CHARGE TIME AT 220V

£12,623 PRICE

REVENUE IN XXXXXXXXX DOLLARS

0,000 NUMBER OF EMPLOYEES

BYD BYD YUAN EV535

Build Your Dreams (BYD) Auto is a subsidiary of Chinese multinational corporation, BYD Co Ltd, based in Xi’an, China. The company generated $18.6bn in 2018 and and it's been demonstrably in-demand as recently as early 2019. It was founded in 2003 after BYD Auto’s parent company bought Tshinchuan Automobile in 2002. In September 2016, the company rose to become the third largest manufacturer of plug-in EVs and in the same year started production of electric sanitation vehicles for use in Beijing.

JANUARY 2020

CLICK TO WATCH : ‘INSIDE BYD HEAD QUARTERS (SHENZHEN): THE BYD STORY’ 77

w w w.c so ma ga z i n e. com

T O P 10

CLICK TO WATCH : ‘REVOLUTIONIZE YOUR COMMUTE’

JANUARY 2020

370mi RANGE 0000 YEAR FOUNDED

40hrs CHARGE TIME AT 220V $0.0bn REVENUE IN XXXXXXXXX DOLLARS

£81,000 PRICE 0,000 NUMBER OF EMPLOYEES

Tesla TESLA MODEL S

The pre-eminent leader in EV manufacturing and development has defined the milestones for EVs since first opening in 2003. Currently, the company has a 12% share of all sales of plug-in EVs, generating US$21.46bn in revenue during 2018. Tesla has also advanced the industry by being part of the open source movement, meaning that any developments Tesla has made in the EV industry are open to competing companies. Elon Musk, CEO and founder of Tesla, said this was following the example of Nils Bohlin who invented the three point seatbelt in 1955 and felt it too important not to share. The firm’s Model 3 is enjoying rampant success in the US, having become dominant in the premium car market and attaining the highest safety score ever delivered by the US’s National Highway Traffic Safety Administration.

w w w.c so ma ga z i n e. com

EVENTS & A S S O C I AT I O N S

CSO Magazine runs down some of the biggest upcoming energy and sustainability events from around the world

27–29 JAN 2020 13–16 JAN 2020

World Future Energy Summit 80

European Gas Conference

[ VIENNE MARRIOTT HOTEL, VIENNA, AUSTRIA ] Hosted by OMV, the European Gas

[ ABU DHABI, UAE ]

Conference brings together decision

With a projected 33,500 attendees

makers from the biggest players in

from 170 countries and over 800

Europe’s gas market, with the 2020

exhibitors, the World Future Energy

event set to feature talks on increasing

Summit is surely one of the biggest

LNG supplies in Europe, working more

and most influential global events for

closely with the European Commission,

future energy. Covering energy,

the implementation of technologies to

water, eco-waste and smart cities,

increase hydrogen production rates,

the event’s confirmed speakers thus

and much more. Confirmed speakers

far include: Daniel Hanna, Global

include, among others: Rainer Steele,

Head of Sustainable Finance at

CEO of OMV; Edward Winter, Managing

Standard Chartered; Elle Runton,

Director of Blackrock; Andreas Schier-

Senior Project Manager for Rethink

enbeck, CEO of Uniper; and Oleg

Plastic, Emirates Nature at WWF;

Aksyutin, Deputy Chairman of the Man-

Raman Nanda, CEO of SoftBank

agement Committee and Head of

Energy; and many more.

Department at Gazprom.

JANUARY 2020

EDITED BY

MARCUS LAWRENCE

17–19 FEB 2020

4–5 FEB 2020

Fossil and Renewable Energy – Fourth International Conference [ HOUSTON, TEXAS, USA ]

edie Sustainability Leaders Forum 2020

The United Scientific Group’s F&R

[ LONDON, UK ]

experts from around the globe to share

The edie Sustainability Leaders Forum

innovations in the energy sector, and

is set to host over 300 sustainability

spur change for the better in global

leaders from CEOs and sustainability

energy markets. Over three-days,

directors to policymakers and NGOs.

thought leaders, academics, engineers

The forum includes global names like

and business executives will speak

Unilever, Coca-Cola, P&G, NG, AXA and

about current trends, emergent tech-

more. The event is organised by edie, a

nologies, fresh strategies to tackle

sustainable business media organisa-

challenges in energy industries around

tion which provides research and

the world and how new paradigms will

reports for sustainability professionals.

reshape the energy landscape. Keynote

It also organises industry awards which

speakers will include: Zhifeng Ren from

recognises those who are “redefining

the University of Houston; Andrew Bar-

what it means to be a sustainable, eth-

ron, Director of the UK’s Energy Safety

ical and responsible business”. The

Research Institute (ESRI); Sibudjing

awards include categories such as con-

Kawi of the National University of Sin-

sultancy of the year, carbon reduction,

gapore; Daniel Su from the National

energy efficiency, rising sustainability

Institute of Occupational Safety and

star and sustainable supply chains.

Health, Philadelphia; and many more.

Energy conference gathers academic

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EVENTS & A S S O C I AT I O N S

26 MAR 2020

The Sustainability Summit 2020 [ LONDON, UK ] Hosted by The Economist, the Sustain82

28–30 APR 2020

primarily on the need for governments

Electric and Hybrid Vehicle Technology Expo

and institutions around the globe to

[ STUTTGART, GERMANY ]

significantly upscale efforts to decar-

The Electric and Hybrid Vehicle Tech-

bonise industries and drastically cut

nology Expo (EHVTE) in Stuttgart will

emissions to keep global warming

offer attendees the chance to hear

below 1.5°C. The day-long event will

from and speak with over 450 manu-

cover the impacts of sustainability

facturers and service providers from

goals on economic growth, the current

across the hybrid, electric vehicle (EV)

progress toward the UN’s Sustainable

and battery supply chains. Offering the

Development Goals, the impacts of

chance to glean insights from industry

environmental issues on mental health,

leaders on the latest innovations and

and prospective policies that could

solutions, EHVTE promises to be one

help turn the tide against carbon emis-

of the best destinations for industry

sions and climate change.

players in 2020.

ability Summit 2020 will be focused

JANUARY 2020

13–14 MAY 2020

All- Energy Exhibition Conference 2020

18–20 MAY 2020

[ GLASGOW, UK ]

Cleantech Forum Europe

Glasgow’s All-Energy Exhibition and

[ LUXEMBOURG, LUXEMBOURG ]

Conference strives to enable the UK

The 16th annual Cleantech Forum

renewable low carbon energy commu-

Europe, set over three days, brings

nity “to interact, conduct business,

together the biggest players in the

network and learn, whether face-to-

clean technology space, along with

face or online”, according to the

government representatives and

organisers. Held annually in Scotland,

investors, for discussion, networking

the event brings together a total audi-

and opportunities to strike new part-

ence of around 7,000 and promises to

nerships. Keep an eye out for updates

be a must-attend conference for any

on speakers and the event’s pro-

energy professional.

gramme in the coming months.

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Driving the energy transition through innovation and community engagement WRITTEN BY

MARCUS LAWRENCE PRODUCED BY

RYAN HALL

JANUARY 2020

w w w.c so ma ga z i n e. com

S O L I S R E N E W A B L E E N E R G Y P T Y LT D

King Arthur, Executive Director at Solis RE, discusses how the renewable energy consultancy and project management firm drives powerful community-led projects in an evolving energy landscape

ustralia is in an interesting position when it comes to the energy transition. While the country, famed for its idyllic beaches

and unforgiving desert, is no stranger to sunlight, its 86

sheer size and lack of extensive transmission infrastructure are considerable limiters to the uptake of renewable energy systems. King Arthur, Executive Director at Solis RE, believes technological advances, alongside major shifts in international attitudes and local legislation regarding sustainability and renewable energy, mean that surmounting the challenge is increasingly possible. “Everyone is understanding of the fact that we can’t keep using fossil fuels. The Australian Government has adopted that to some extent, and the Victorian Government has embraced it,” he says. “The latter has legislated a target of 50% renewables usage in Victoria by 2030, which has given people confidence in the long-term focus.” Naturally, as with their contemporaries around the world, Victoria’s coal-fired plants JANUARY 2020

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S O L I S R E N E W A B L E E N E R G Y P T Y LT D

“You can’t keep putting solar into the system as it’s produced because you end up with a massive peak in the middle of the day when the sun’s shining, and obviously you don’t have any power at night” — King Arthur, Executive Director, Solis RE

JANUARY 2020

CLICK TO WATCH : ‘CNBC – THE RISE OF SOLAR POWER’ 89

have found their days to be numbered.

of people have built big solar farms

While this shift towards renewable

in the sunniest parts of Victoria, the

energy facilities is a boon for the envi-

sunniest parts of Australia up in

ronment, the resultant job losses and

Queensland, but they don’t have the

need for reskilling workforces must

infrastructure to support it and they

be addressed with the same potency

don’t have the energy demand close

as the aforementioned infrastructural

to where they’re based. Therefore, you

challenges. Enter: Solis RE.

have to transmit the power over hun-

Co-founded by Arthur and long-time

dreds, if not thousands, of kilometres,

business colleague Michael Bugelly,

and you lose energy all the way along

also an Executive Director at the firm,

that transmission line,” Arthur explains.

Solis RE is shaking up the established

With this awareness at the top of the

methods by which Australian renew-

company, Solis RE focuses on areas

able energy projects take shape. “A lot

where there is tangible need and w w w.c so ma ga z i n e. com

S O L I S R E N E W A B L E E N E R G Y P T Y LT D

“ The number of jobs that will be created as a result of developing the Gippsland Renewable Energy Park will be between 1,200 and 1,500 during the construction phase, with many hundreds of ongoing jobs over the next 10 to 15 years” — King Arthur, Executive Director, Solis RE

relatively easy access to the grid, and maximises the opportunity by bringing local communities on board. The company recently signed an agreement to develop the Gippsland Renewable Energy Park – a huge undertaking worth an estimated AU$2bn that also serves as the perfect example of its offering’s forward-thinking, community-driven and holistic nature. The project is a huge undertaking that will require a significant amount of land. “It’s about 23km2 in terms of

90 E X ECU T I VE P RO FI LE

King Arthur King Arthur has significant experience in retailing and manufacturing and expertise in corporate strategy, business transformation, procurement and contract negotiations. He has 15 years’ experience in the retail industry, including as General Manager Supply Chain of Myer. Arthur has run his own management consulting business since 2002, working in Asia, Europe, the US and Australia. Over the past 35 years, he has developed Strategic Supply Chain and Procurement teams for Myer, RACV, IAG, AAMI, Mitre 10 and Australian Paper. He has brought his procurement and project management skills to the solar industry, where he has developed commercial relationships with major solar manufacturing companies and specialist EPC groups.

JANUARY 2020

space, and for something like that to

purchasing. Along with these arrange-

get dropped into a community you

ments, the company has committed

obviously need to have a lot of commu-

to a community benefit programme

nity support and benefit,” says Arthur.

funded by the park, and the allocation

“We went out to all of the large business

of those funds will be decided by the

and community groups before we even

community. The factor that brought

considered what was going to be in

local government support on board,

the park to hear about their issues and

however, was the promise of an injec-

discuss how we could address them.”

tion of jobs for the local economy. “The

Those issues, he elaborates, include

number of jobs that will be created as

the cost of power and the potential for

a result of developing the Gippsland

jobs. Solis RE is thus arranging special

Renewable Energy Park will be

deals with local businesses for power

between 1,200 and 1,500 during the 91

E XE CU T I VE PRO FI LE

Michael Bugelly Michael Bugelly is a Chartered Accountant who began his career with KPMG. He has experience providing advice on all stages of a business life cycle, business growth strategies, valuations, assisting with the purchase and sale of businesses and corporate restructuring. Bugelly is an Executive Director of The Rufus Partnership Pty Ltd, a corporate advisory firm with extensive experience advising on agribusiness and renewable energy projects. He has also been involved in the not-for-profit sector, providing professional services including corporate governance and investment guidelines and was a director of Oz Child for 13 years. He has a Bachelor of Commerce (University of Melbourne) and is a Fellow of the Chartered Accountants Australia and New Zealand.

w w w.c so ma ga z i n e. com

S O L I S R E N E W A B L E E N E R G Y P T Y LT D

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“ The Victorian government has set a target of 50% renewables usage in Victoria by 2030, and that’s given people confidence in the long-term focus” — King Arthur, Executive Director, Solis RE

93 construction phase, with many hun-

because you end up with a massive

dreds of ongoing jobs over the next

peak in the middle of the day when the

10 to 15 years,” says Arthur.

sun’s shining, and obviously you don’t

With the weight of local businesses

have any power at night.” Batteries

and Federal and State government

can moderate the flow of electricity to

members behind it, there is plenty

the grid, minimising the impact of mid-

of excitement in the potential for the

day peaks and night-time troughs. For

completed Gippsland project. The

the wider project, Arthur asserts that

first phase of the project, itself worth

artificial intelligence (AI) will be applied

approximately $125mn, is a 44MW

to the management of energy flow

solar farm complete with battery stor-

rates, particularly as more than solar is

age amounting to 50MWh. “That’s

planned for Gippsland. “With the larger

essential,” Arthur says of the battery

site, the Gippsland Renewable Energy

capacity. “You can’t keep putting

Park, we’re not just doing solar plus

solar into the system as it’s produced

batteries. That’s stage one, 500MW w w w.c so ma ga z i n e. com

S O L I S R E N E W A B L E E N E R G Y P T Y LT D

JANUARY 2020

PA RT N E R S

The collaboration-focused Solis RE has a number of key partners that are driving the success of its projects, including Middletons Engineering, AusNet, the Australian Energy Market Operator (AEMO), the Latrobe Valley Authority, and Federation University Australia. 95 of solar and 500MWh of battery, but we’re also integrating a number of other renewable energy sources on that same site,” enthuses Arthur. Along with plans to install a gas peaker station to provide baseload energy when necessary, Solis RE is also examining the viability of biomass. “There’s a huge issue with municipal councils being able to environmentally dispose of waste – they don’t want to send it all to landfill, so we’re looking at how we can convert it into energy instead.” The innovative design of the park does not end there, with plans to w w w.c so ma ga z i n e. com

S O L I S R E N E W A B L E E N E R G Y P T Y LT D

“ We went out to all of the large business and community groups before we even considered what was going to be in the park to hear about their issues and discuss how we could address them”

— King Arthur, Executive Director, Solis RE

leverage the site’s enormous energy

noting that, until recently, hydrogen’s

generation potential to power a hydro-

viability had been deeply limited by

gen production plant. Onshore and

issues around production and storage.

offshore wind facilities are also being

The scope of Solis RE’s capabili-

fielded as potential sources for the

ties and capacity for bold innovations

Gippsland project. The sum is a renew-

belie the recency of its founding,

able energy facility that produces

and Arthur is enthusiastic about its

power at all times of day, feeding the

enduring prospects. He affirms that

grid reliably and sustainably. Solis RE

its community engagement-focused

is also keen to continue project devel-

foundations will remain essential to its

opment as more solutions become

strategy going forward. “As a project

commercially viable, with Arthur

developer, we want to ensure that we

JANUARY 2020

2016

Year founded

$10mn

Revenue in Australian dollars

continue to have large local content.

get what they need as the market

When we lease land, the land owners

moves in the future.â&#x20AC;? In an age where

take equity in the project, and we also

the challenges of the energy transition

find key community liaisons to fill skills

are being answered in earnest, a lot can

gaps and make sure that they come

be learned from Solis REâ&#x20AC;&#x2122;s model of

in as equity partners as well.â&#x20AC;? It is of

collaboration, community engagement,

paramount importance, Arthur says, to

and technological flexibility.

ensure communities reap the benefits of the projects. All these projects are 20 to 30-year projects, so you really do need that local attention, care and ownership to ensure those projects w w w.c so ma ga z i n e. com

THE CITY OF LA: BUILDING A SUSTAINABLE FUTURE THROUGH UNITY WRITTEN BY

OLLIE MULKERRINS PRODUCED BY

CRAIG KILLINGBACK

JANUARY 2020

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CIT Y OF LOS ANGELES

Doug Walters, Chief Sustainability Officer and Chief Resiliency Officer, discusses the innovative approach to creating a more sustainable Los Angeles ahead of the 2028 Olympic games

oug Walters is currently engaged in a project under the direction of Eric Garcetti, the Mayor of Los Angeles, focused on

addressing the escalating challenges of climate change. LA’s geographical location brings a host of varying landscapes within the vicinity of the city. 100

This, combined with the increasing challenges of climate change and our impact on the environment, presents several unique obstacles to the infrastructure and maintenance of the city, as Walters explains. “We’ve seen rising temperatures; pollutants that we inhale are increasing concerns about public health rates and our ability to breathe freely; we’ve seen wildfires in our hillsides and, when it does rain, we often see flooding in our streets. It’s a challenge for any advancing society, particularly as people start to develop and build further into the outlying area of the city,” he says. The diverse range of challenges faced by Walters has led him towards a holistic approach, where contributing factors from urban and natural environments have to be considered and siloed solutions must be set aside for a more focused JANUARY 2020

Japanese gardens at Donald C. Tillman Water Reclamation Plant

1781

City founded

$1.2bn Annual budget in US dollars

3,500 Number of employees

w w w.c so ma ga z i n e. com

101

CIT Y OF LOS ANGELES

“ We have a host of low impact, best management practices to get homeowners or businesses to capture that first inch of rain and treat it”

102

— Doug Walters, Chief Sustainability Officer & Chief Resiliency Officer

JANUARY 2020

approach. Often, this means looking at transforming behaviors alongside the technologies to support the change. “There are many instances where there are environmental emergencies and economic opportunities that call us to tackle climate change and start looking at different ways we can change our behavior to limit our carbon emissions,” Walters explains. “Whether that be in our urban environments or in the suburbs or elsewhere, we’re working to reduce the negative impacts that certain communities have faced from

CLICK TO WATCH : ‘LA SANITATION & ENVIRONMENT ROADSHOW’ 103 decisions made decades ago that result in some bearing the brunt of a lot of industrial waste or dirty air, for example. We’re moving a lot of those new technologies into those communities to manage waste.” Walters has been working closely with Mayor Garcetti’s Chief Sustainability Officer (CSO), Lauren Faber-O’Conner, along with 27 other CSOs across the city’s departments to outline over 200 goals that, if achieved, will meet Los Angeles’ aspirations. Those led by LA Sanitation and Environment include initiatives for 100% recycled water, w w w.c so ma ga z i n e. com

Watershed experts building ecologically-based adaptation and resilience into our communities. Learn More

For more information, contact Wendy Katagi

213.336.0001

wkatagi@stillwatersci.com

solar installations, alleviating health

the plan because many of the goals

concerns around homeless encamp-

that were on track to be achieved,

ments by creating rapid response

about 90%, had already been met.”

teams to collect abandoned waste, and

Alongside technology, Walters is

abating the rat population. Discussing

keen to reiterate that education is a

the progress the department has made

key factor in tackling climate change:

towards its own sustainability goals,

“There’s a lot more awareness in

he says that “our Mayor put forth a

the population as a whole,” he says.

sustainability plan back in 2015, which

“We’ve been educating children on

is committing all of us in the city – and

environmental issues for several

certainly the municipal departments

decades and, as they have matured,

– towards a more low-carbon, green

they have fostered a more socially

energy future. In April, he updated

responsible population.” 105

E XE CU T I VE PRO FI LE

Douglas Walters In his dual role as LA Sanitation & Environment’s Chief Sustainability Officer and Chief Resiliency Officer, Doug Walters, P.E., BCEE, has been a leader on many fronts since his graduation as a Civil Engineer at UCLA. He’s been instrumental in numerous breakthroughs in ceasing ocean discharge of biosolids, designing composting facilities, transforming landfills, improving water quality, integrating water assets and planning, recruiting talented engineers, strategic planning, and touting environmental justice and equality causes. In June, he rode his bicycle 545 miles from San Francisco to LA to raise money and awareness in support of people living longer and stronger with HIV and AIDS.

w w w.c so ma ga z i n e. com

CIT Y OF LOS ANGELES

“ We are closer to nature, we’ve planted more trees and made leaps towards a sustainable future for our citizens and for the environment” — Doug Walters, Chief Sustainability Officer & Chief Resiliency Officer

106

JANUARY 2020

107

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S U STA I N A B L E L A Black & Veatch has been proud to partner with Los Angeles for more than 35 years on over $1 billion in constructed environmental projects, including numerous award-winning facilities that have promoted the city’s water quality, reclamation and resilience.

ECHO PARK LAKE An award-winning rehabilitation effort redefined this LA icon as a stormwater treatment facility. Today the lake protects nearly 800 acres of Los Angeles River watershed while sparkling as the jewel of revitalized Echo Park, which has been a central part the city’s history for more than 150 years.

HYPERION WATER RECLAMATION PLANT LA’s oldest and largest wastewater treatment facility was completely reengineered and rebuilt without once going out of operation, including innovative solutions to control odor, reuse water, save energy, and restore Santa Monica Bay, earning recognition as a public works masterpiece.

109

This cultural shift has forced

LA has experienced drought and

industries to take note of the nec-

flooding regularly over the past dec-

essary changes, and municipal

ade, making water management an

bodies now meet less resistance

increasingly pressing issue. The city’s

from commercial and technological

stormwater programme is set to

sectors. “It allows those who are

tackle both of these problems through

more ambitious, which is certainly a

the redirecting and repurposing of

growing number in the city includ-

stormwater. “The programme started

ing our Mayor, to really scale up

in the early 90s and it recently had a

a lot of these goals and bring in

huge boost,” Walters explains. “When

industries that have new ideas or

it does rain in LA, for maybe 30 days

new technologies so that we can be

of the year, we get a lot. We tend to

more aggressive in our timelines and

get floods, and the sad part is that so

approach,” Walters elaborates.

much of that water runs straight off our w w w.c so ma ga z i n e. com

CIT Y OF LOS ANGELES

streets and directly into the ocean and river. It is, effectively, wasted. By rethinking our approach and broadening our appeal to other sectors, we can reuse water to preserve and enhance the city’s biodiversity, something that most urban dwellers don’t often think about.” The new initiative is looking to engage the community in environmental conservation through educational programmes and focused funding. Through such engagement, citizens are able to actively contribute to the 110

wellbeing of the city and themselves. “We have a host of low-impact, best management practices to get homeowners or businesses to capture that first inch of rain and treat it,” says Walters. “We can then provide guidance on what the treatment practices and equipment may be.” Technology is playing a vital role in managing and meeting the demands the city has on its limited water resources. With regards to this, Walters is working with teams to develop these technological innovations and increase the supply of key resources. He explains: “We’re reducing our dependence on water from a snow pack up in the northern part of JANUARY 2020

111

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Innovation through partnerships to focus on the future. The National Association of Clean Water Agencies (NACWAî&#x201A;&#x201A; is celebrating the 50th Anniversary of its founding this year. Los Angeles Sanitation & Environment (LASANî&#x201A;&#x201A; was one of a handful of clean water agencies that had the vision and foresight to create NACWA and ensure improved water quality and environmental protections to everyone across the United States - so thank you LASAN!

As NACWA reflects on five decades of clean water progress, we celebrate the accomplishments of our now nearly 500 public and private organization members. But none should be more celebrated than the accomplishments of LA Sanitation & Environment. LASAN is a recent recipient of the coveted Water Resources Utility of the Future Today award and is looked to as an innovator by its peer utilities for its pioneering work on many projects, including but by no means limited to the following: The Residential Food Waste Diversion Pilot Program, which converts consumer food waste into renewable energy and reduces the amount of trash sent to landfills and gas emissions; and The Water Recycling Program, which protects environmental resources and provides a local, reliable water supply. Congratulations LASAN on behalf of your fellow public clean water agencies across the country. Keep blazing the trail!

The National Association of Clean Water Agencies 1130 Connecticut Ave. NW, Suite 1050 Washington, DC 20036 Learn more at nacwa.org

the state. We’re looking at different

standards. “We can never forget trees.

membrane technologies, membrane

They are such a powerful asset to

bioreactors, reverse osmosis and other

have. They absorb pollutants through

advanced treatments so we can process

root systems, convert carbon from

and manage our wastewater more effec-

our atmosphere and shield us from

tively while reducing costs to the city.”

the heat and airborne pollutants.

Walters supports low-tech, green

We’ve been planting trees in impacted

solutions that will not only reduce

neighborhoods, and this has become

the city’s net carbon emissions but

a big part of our strategy to cool the

also improve its aesthetic and living

environment down,” said Walters.

113

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CIT Y OF LOS ANGELES

“ We’ve been rolling up our sleeves, looking at ways to make this the most sustainable games ever. We have a commitment to making them the ‘zero-waste’ games”

114

— Doug Walters, Chief Sustainability Officer & Chief Resiliency Officer

JANUARY 2020

In 2028, from 21 July to 6 August, LA will play host to the Olympic Games. Walters and his team have been working towards making the games a zero-carbon event, as well as to raise awareness of the city’s sustainability goals. Speaking on the ambitions in place, Walters says, “We’ve been rolling up our sleeves, looking at ways to make this the most sustainable games ever. We have a commitment to making them the ‘zero-waste’ games. The Olympic planners are directly working with all of our big sponsors. They

have a huge role; they commit a lot of

says Walters. “We are proud of that

money to make the games successful,

image, but there is more to it. Now, we

but we want to make them aware that

are closer to nature, we’ve planted

we don’t expect to see lots of plastics

more trees and made leaps towards

making their way into our environment.”

a sustainable future for our citizens

LA is meeting the challenge of

and for the environment.”

becoming a leader in sustainability and intelligent resource management while using its reputation to change opinions and raise awareness around the solutions a government can enact to better its citizens’ lives. “We want people to think of LA as more than a jungle of entertainment, glitz and glamour,”

115

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116

CORESTATE CAPITAL: OPTIMISATION AND AUTHENTIC ESG INTEGRATION WRITTEN BY

MARCUS LAWRENCE PRODUCED BY

BEN MALTBY

JANUARY 2020

117

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C O R E S TAT E C A P I TA L G R O U P

Justus Wiedemann, Group Sustainability Officer at Corestate Capital, discusses the Environmental, Social, Governance practices that are being infused into the firm’s core functions as it delivers value through data-driven optimisation

s a leading independent investment manager for real estate in Europe, Corestate Capital

has experienced substantial growth in recent years. Since 2016, Corestate 118

has brought the total value of its assets under management (AUM) to €26bn, translating to a compound annual growth rate of 110%. This growth is matched by the scale of its Environmental, Social and Governance (ESG) ambitions. Intending to integrate its ESG framework into its operations, Corestate appointed Justus Wiedemann to lead the charge as Group Sustainability Officer. The reasons for Corestate’s ESG ambitions are clear. “Investors are increasingly keen to invest in progressive opportunities, particularly as the European Union (EU Green Deal) and United Nations (PRI) have laid out ambitious but vital frameworks for the development

JANUARY 2020

119

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C O R E S TAT E C A P I TA L G R O U P

“ Value creation and trust are getting more and more important for our clients and the wider stakeholder group of employees, politicians and society as a whole” — Justus Wiedemann, Group Sustainability Officer, Corestate Capital 120

of sustainable societies, supply chains and economies,” says Wiedemann. ”From a market potential point of view, there is an apparent demand for authentic sustainable products.” Moreover, ESG criteria are becoming increasingly important for employees. Deloitte’s 2019 Global Millennial Survey found that 74% of those born between 1983 and 1994 would leave their company in the next five years if they hadn’t committed to environmental and social stewardship practices; an attitude reflected by wider consumer attitudes to sustainability in business. Wiedemann began his time at Corestate in the post-merger integration department. “When we started with ESG, it was part of our wider institutionalisation plan, which also includes reporting standards, compliance and governance on a group level,” he says. Until then, the company had strategically acquired along the value chain. “Corestate started as an asset and investment management firm, and has acquired property management firms such as CRM Students, which is a leading provider of student housing in the UK, a mezzanine financing firm, HFS which is the market leader in Germany,

JANUARY 2020

CLICK TO WATCH : ‘CORESTATE CAPITAL MARKETS DAY 2019 – Q AND A SESSION CLIENTS’ 121 Austria and Switzerland, and a large

how we have optimised real estate

institutional asset manager, Hannover

assets along with reductions in utility

Leasing,” he explains. As a result,

consumption and carbon emissions.

Corestate now offers the whole invest-

In the end, we can manage on the

ment management chain for real estate,

ground each and every part of the

including financing, structuring, asset

investment value chain according to

management and property management.

our ESG strategy.”

“Out of our holistic view comes

As data forms the backbone of the

the strength of our ESG integration

company’s strategy, Wiedemann’s

approach,” says Wiedemann. “We are

background in project management

operatively capable of reflecting what

and data science is proving instru-

the EU wants in their Green Deal and

mental in the rollout of ESG principles

Action Plan on Financing Sustainable

across the company’s operations.

Growth, conforming ESG with sustain-

Particular emphasis is placed on

able investments to transparently show

buildings management. “Looking at w w w.c so ma ga z i n e. com

C O R E S TAT E C A P I TA L G R O U P

122 overall carbon dioxide emissions in the

By acting on the insights that data

EU, the highest polluting factor is real

provides, Corestate is able to amortise

estate buildings. 36% of CO2 emissions,

a part of the cost of building optimisa-

within the EU, come out of real estate,”

tion with funds saved through reduced

Wiedemann highlights. By comparison,

energy consumption. A key partner

manufacturing accounts for 25% of

for Corestate’s transformation is ESG

emissions. “We should all have a clear

software leader Measurabl. On this

focus on optimising buildings. We see

platform, with around 45,000 assets

enormous potential in that field because

from a global bank of asset managers,

we find so many opportunities that we

a digital twin of each of Corestate’s

gain through our data-driven approach.

property asset is created. Then

However, data is always just a vehicle

the platform is fed with utilities

that’s not an end in itself.” It does, how-

and emissions data from myriad

ever, enable operational optimisation

sources to maximise its capacity

on a scale not previously seen.

for buildings optimisation.

JANUARY 2020

It then enables Corestate to bench-

world. As these cost drivers are gen-

mark its buildings’ performance

erally a result of utility management,

against their peer group of similar

addressing them with an approach

structures. By establishing benchmark

geared towards efficiency simultane-

scores through such means, Corestate

ously creates value and minimises

circumvents the traditional limits of

the environmental impact of each

depth imposed by the labour-intensive

building. Combining Measurabl’s

nature of data collection.

data with its own utilities and energy

The result, Wiedemann says, is the

consumption information, driven by

revelation of hidden cost drivers

the proliferation of data points such

across the Corestate portfolio, ena-

as smart meters, offers Corestate a

bling cost cutting and value creation

powerful capacity to enact changes

that would have been far more chal-

that empower both its financial bot-

lenging to realise in a pre-data driven

tom line and the environment.

E XE CU T I VE PRO FI LE

Justus Wiedemann Justus Wiedemann is Group Sustainability Officer at Corestate. He is responsible for the overall ESG framework as well as the operational integration of ESG criteria at corporate, product and asset levels. Prior to joining Corestate, Justus was a consultant in a digital and banking unit and an executive consultant within the automotive supplier industry. Justus earned a BA in International Business and Finance from DHBW Stuttgart, a BA in International Accounting from the University of South Wales and an MSc in Management and Economics from Zeppelin University, where he wrote his master’s thesis on machine learning in conjunction with WHU – Otto Beisheim School of Management.

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123

C O R E S TAT E C A P I TA L G R O U P

125 Wiedemann adds that the increased digitalisation of energy data collection in Germany also offers an opportunity for improved vendor management. “We have started a group-wide process with major German operational cost advisory Westbridge to tender out our complete energy consumption of all of our managed assets,” he says. “We will then be left with a very consolidated vendor market, making it much easier to go ahead with smart metering at scale. If you have 33 fragmented energy vendors, you end up with 33 dif-

“ Looking at overall carbon dioxide emissions in the EU, the highest polluting factor is real estate buildings. 36% of carbon dioxide emissions, within the EU, come out of real estate. We should all have a very clear focus on optimising buildings” — Justus Wiedemann, Group Sustainability Officer, Corestate Capital

ferent hardware components to install.” w w w.c so ma ga z i n e. com

C O R E S TAT E C A P I TA L G R O U P

126

JANUARY 2020

“ Data is always just a vehicle that’s not an end in itself” — Justus Wiedemann, Group Sustainability Officer, Corestate Capital

In a consolidated market with fewer vendors to consider, the amount of data noise is reduced significantly, offering higher quality data that elucidates multifaceted opportunities for optimisation. “Seeing what’s happening in each of our buildings on such a granular level is an immense advantage because we’re not in the dark about possible energy waste anymore,” enthuses Wiedemann. Outside Corestate’s focus on the environment, it is also fostering social change. One broader issue in this area that Wiedemann highlights is the lacking representation of women in management across Germany. Corestate is therefore committed to expanding the representation of women in top-level management, a figure which, according to Wiedemann, stands at only 14.7% in German DAX 30 w w w.c so ma ga z i n e. com

127

C O R E S TAT E C A P I TA L G R O U P

“ ESG is an imminent component of investing which creates value; it’s a holistic and brighter view that is more fitting for today’s and tomorrow’s world” — Justus Wiedemann, Group Sustainability Officer, Corestate Capital

companies. “Our goal is to attract, retain and develop talented women. As one of the first measures, we have become a sponsoring member of the Fondsfrauen association — a German initiative with over 2,000 female members — the majority of whom hold senior-level positions in the finance industry.” Fondsfrauen offers a mentoring programme which Corestate Women can leverage, providing the opportunity for training, networking and growth, and equipping female

2006

Year founded

€204.4mn Revenue in (2018) euros

730

Number of employees

employees with the tools to progress

becoming more and more important

within the organisation.

for our clients and the wider stake-

Wiedemann’s passion for these

holder group of employees and

strategies, and indeed those beyond

society as a whole,” he says. “ESG is

the scope of this profile, is glaringly

an imminent component of investing

evident. It is important, he says, for

which creates value; it’s a holistic and

businesses not only to adopt envi-

brighter view that is more fitting for

ronmentally and socially progressive

today’s and tomorrow’s world.”

initiatives but to do so authentically, as it cannot be a simple box-ticking exercise done to reflect the sociopolitical climate of the modern day. “Value creation and trust are w w w.c so ma ga z i n e. com

129

130

Harnessing the potential of the Middle Americas at AB InBev WRITTEN BY

WILLIAM SMITH PRODUCED BY

CAITLYN COLE

JANUARY 2020

131

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AB INBEV

Gabriel Guzman, Director of Raw Materials, Agricultural Development & Utilities for AB InBev’s Middle Americas region, discusses the zone’s potential and the sustainable strides the company is making

s the world’s largest beer company, AB InBev (ABI) maintains a complex and interrelated global supply chain. One of

the regions most important to the company’s oper132

ations is the Middle Americas, as Gabriel Guzman, Director, Raw Materials, Agricultural Development and Utilities elucidates. “It’s a fast-growing region, for sure. Out of the entire ABI group it is the second largest in terms of revenue and the largest in terms of EBITDA. It’s a growth engine.” The region’s potential is obvious, but it also brings its own set of challenges. “We deal with less developed economies, so we sometimes have problems with taxation and changing regulations and treaties.” Guzman’s role requires the management of a number of teams, each dedicated to the different sections under his purview – the provision of raw agricultural materials, the coordination of utilities and the sustainable development of agriculture all being examples. That last area is covered by Jose Luis Taylor, Director of Sustainability and JANUARY 2020

133

1366

Year founded (the Artois brewery)

$54.6mn Revenue in US dollars

170,000+ Number of employees

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AB INBEV

“ Our goal for 2025 is that 100% of our farmers are to be skilled, connected and financially empowered” 134

— Gabriel Guzman Director, Raw Materials, Agricultural Development & Utilities AB InBev Middle Americas

JANUARY 2020

Agricultural Development at the company, who speaks to the importance of treating farmers ethically and with respect. “Our goal for 2025 is that 100% of our farmers are to be skilled, connected and financially empowered,” says Taylor. “We have a base of around 4,000 farmers, the majority of which are in Mexico, where we implemented this programme four years ago. We have another programme now in Colombia, and we are making strides in Ecuador. In Mexico, we were challenged to ensure that 100% of the barley came

CLICK TO WATCH : ‘WE ARE AB INBEV’ 135 from local farmers instead of being

its progress in these areas, including

imported, which we have now achieved.

in energy. “By 2025, the target is for

In doing that, we’ve invested in machin-

ABI to use 100% renewable electricity,”

ery and created jobs for local people.”

says Guzman. “In Mexico we should

This focus on having a positive effect

be at 100% by the end of this year,

on the people with whom the company

which is our largest market – about

works is echoed by Guzman. “The ques-

45% of the entire zone. Our goal is

tion is, ‘can we truly talk the talk and walk

to continue to expand that, so we’re

the walk and empower the communi-

looking at opportunities in Colombia.

ties in which we operate?’ In the early

in Honduras we have found a source

stages, it can be more expensive, but it’s

of 11 megawatts of hydro power that

an investment. After that it can become

we can potentially use. It will not satisfy

self-sustainable as it should be.”

100% of what we are looking for but

ABI has implemented a number of sustainability targets to benchmark

will definitely help us with our target.” Water Management is also a focus, w w w.c so ma ga z i n e. com

AB INBEV

“ We’ve invested in machinery and created jobs for local people” 136

— Jose Luis Taylor Sustainability & Agro Development Director, AB InBev

as the company’s CEO Carlos Brito

diet, and we are looking at a number

demonstrated during a recent talk.

of disruptive projects to create the

Guzman himself discussed the corol-

right products to match this consumer

lary concern of decarbonisation at a

demand. For instance, last year we

Bloomberg event last year.

launched a smoothie made out of

A sustainable approach can also

spent grains. It’s been in a pilot in the

offer opportunities for value crea-

US and it’s being positively received.

tion. “We have a significant amount

We are also making snack bars from

of byproducts left over after finishing

the grains – we have a significant

the beer-making process, in the form

amount of protein value there.”

of vegetable protein content,” says

ABI’s sustainability work serves to

Guzman. “There is a trend in the mar-

complement its focus on making the

ket where consumers are looking for

best beer. “The quality of the beer is

this vegetable protein to change their

determined, not only by the expertise

JANUARY 2020

137

E XE CU T I VE PRO FI LE

Gabriel Guzman Gabriel leads Anheuser-Busch InBev’s Middle Americas Zone teams for Raw Materials, Agricultural Development and Utilities Procurement. Gabriel oversees the Zone’s plan to achieve its ambitious 2025 100% renewable electricity commitment, which is an integrated part of the company’s strategy across procurement, sustainability and supply chain. He works in close collaboration with cross— functional teams, supporting the company’s energy and water reduction targets. Gabriel holds a Bachelors in Management and Economics and an MBA from Case Western Reserve University.

w w w.c so ma ga z i n e. com

“To maintain a sustainable, high standard of beer, you have to be dynamic” — Gabriel Guzman Director, Raw Materials, Agricultural Development & Utilities, AB InBev Middle Americas

of the chief brewers, but by the quality

help to protect against future price

of materials,” says Guzman. “Without

volatility. Robotic process automa-

that, you cannot achieve the high

tion has been another focus. “We

standards that we have in the organi-

can reduce the amount of man hours

sation.” Regionally, this year, adverse

spent on very basic tasks, freeing us

weather conditions led to 50% of the

up to evaluate the procurement func-

barley crop in Mexico being lost. ABI’s

tion, to think in more strategic ways

worldwide presence, however, means

and to add value. We use robots, for

that such an eventuality does not spell

instance, to help with managing and

disaster. “In order to find the quality

indexing contracts.” Another inno-

that we need, the teams have to mobi-

vation involves the introduction of

lise globally with all their counterparts

inter-departmental buying software.

in other regions. To maintain a sustain-

“We use a platform similar to Amazon

able, high standard of beer, you have to

whereby the different functions

be dynamic.”

within the organisation can order

Tying its efforts together is the

whatever they need,” says Guzman.

deployment of technology. The

“That may be people in marketing, in

volatility of prices and currencies in

legal, et cetera. They can order cer-

the region has led to the develop-

tain amounts without approval, which

ment of computer models which can

help them to expedite the process.” w w w.c so ma ga z i n e. com

139

AB INBEV

Aside from making easier the work of employees, technology is also serving to improve the quality of raw ingredients. ABI has pioneered an AI technology pilot, internally referred to as a “brain”, which is able to closely monitor the state and health of cargo as it is being shipped. “We can measure the moisture content of the barley being loaded in Denmark, for instance, and then track that moisture content, based on factors such as weather conditions, all across the route from 140

Denmark to Colombia. When the ship arrives, we will know that the barley arrived with X amount of moisture

“ My dream is to increase Mexican barley to the highest of international standards” — Gabriel Guzman Director, Raw Materials, Agricultural Development & Utilities AB InBev Middle Americas

JANUARY 2020

content, therefore at the malting process we will only need X amount of energy to convert that barley into malt.” In the near-term, ABI will continue to chase its sustainability targets, covering not just the brewing side of the operation but also manufacturing and the entire distribution network, where it is introducing a number of electric trucks to deliver products. ABI is also furthering its origination programme in Mexico. “In Mexico, we use about 400,000-500,000 tonnes of corn imported from the United States,” says Guzman. “You can imagine the impact to Mexican agriculture if we could buy that from a local grower, instead. That’s precisely what we are trying to do right now by launching a corn origination programme. This year we are going to get to 40,000 but our goal is to get to 400,000.” In the longer term, ABI is interested in consolidating its position in the region. “From an agrodevelopment standpoint the goal is to improve the quality of Mexican barley,” says Guzman. “My dream is to increase Mexican barley to the highest of international standards.”

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141

142

Adopting an efficient approach in the energy space WRITTEN BY

SEAN GALEA-PACE PRODUCED BY

RYAN HALL

JANUARY 2020

143

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SAPURA ENERGY BERHAD

Raphael Siri, CEO of Sapura Drilling and SVP Performance & Risk for the Sapura Energy Group, discusses the importance of generating long-term value from its staff through a focused, people management approach

s the world’s largest tender rig owner and operator, with nearly five decades of drilling experience in Asia, the Middle East,

Africa and South America, Sapura Drilling is used to 144

keeping up with the market and staying at the forefront of the latest industry trends. With a comprehensive continuous improvement strategy in mind, Raphael Siri, CEO of Sapura Drilling, believes that operating with an efficient approach remains the key ingredient to success. “We want to ensure that everyone is empowered to make the job as efficient as possible,” he says. “Efficiency comes with care. Our primary aim is to be proactive and put procedures in place that avoid incidents happening in the first place, including safety ones.” As a group, Sapura Energy places significant value on people development and has set up several training initiatives to develop its staff’s skills. “There are two components to training our staff in the Drilling business; offshore and onshore,” says JANUARY 2020

1972

Year founded

Leader in tender-assist drilling

Winner

of multiple safety and performance awards 145

Siri. “In terms of offshore, we have a comprehensive training matrix that is mandatory. For example, if you don’t complete your survival training then you won’t be able to fly in the helicopter, which ultimately means you can’t work.” “Secondly, we require our workers to complete company-specific training that allows them to perform their jobs in the safest and most efficient manner,” he explains. “Some of the training includes permit-to-work, confined space and ethics and compliance. We also offer more specific technical w w w.c so ma ga z i n e. com

SAPURA ENERGY BERHAD

training based on an employee’s position that will benefit them on a daily basis.” Siri affirms that onshore workers also have a training matrix, albeit less structured. “It’s more centred around observing the changing market rather than training itself. For example, for an employee working in finance, they would attend a tax conference to uncover the latest trends in the areas most relevant to them. There isn’t one method that suits all – we tailor training based on company 146

and individual needs.” “As part of the Sapura Energy Group, Sapura Drilling also benefits from programmes run by the parent company,” explains Siri. “One of the most recent training programmes offered under the Sapura Energy Group was the Master of Business Administration conducted in partnership with MIT Sloan School of Management. Some employees are currently taking this programme and is just one of the examples of our versatile onshore training programme.” With its continuous improvement strategy at the forefront of decisionmaking, another area of focus for Sapura Drilling is the introduction of JANUARY 2020

“ We want to ensure that everyone is empowered to make the job as efficient as possible” — Raphael Siri CEO, Sapura Drilling and SVP Performance & Risk, Sapura Energy Group

CLICK TO WATCH : ‘SAPURA SEMI-TENDER IN ACTION’ 147 technology. Automation is empowering companies in all industries to accelerate their operations. In terms of Sapura Drilling, this means enhancing safety processes too. “Automation allows us to preempt equipment failures and plan more efficiently,” he says. However, Siri affirms there are limitations to consider as the world begins to embrace new technology and transform operations. “One of the biggest challenges we face is that we don’t always work in countries where they have sophisticated phone systems and landlines. All our units run on a satellite,” he explains. w w w.c so ma ga z i n e. com

SAPURA ENERGY BERHAD

148

“But the world is changing. With all this

partner when seeking to form a long-

data at our fingertips now, we must ask

term business relationship. “The first

ourselves: ‘how do we generate the

thing I look for in a potential partner is

most value we can?’ Although gather-

their core values,” he explains. “They

ing data is a good strategy to have, if

have to be in line with ours in order for

you don’t do anything with it then it’s

the partnership to work. The corporate

just a waste of time.”

values have been our beacon for suc-

In a bid to expand operations, com-

cess. We are guided by honesty, trust

panies are increasingly looking to

and respect for all. We achieve our busi-

establish strategic partnerships with

ness objectives by being safe, agile and

one another to achieve mutual growth.

professional and continuously strive to

Siri points to what he looks for in a

meet our stakeholders’ expectations.”

JANUARY 2020

“ There isn’t one method that suits all, we tailor training based on company and individual needs” — Raphael Siri CEO, Sapura Drilling and SVP Performance & Risk, Sapura Energy Group

The company’s tender rigs can be used for global operations in waters as shallow as 30ft to as deep as 6,000ft. Sapura Drilling uses two different types of Tender Assist Drilling rigs (TADs); a tender barge and a semitender rig. While both units can carry the same equipment, the semi-tender is capable of operating in deeper waters and in harsher environments. The TADs are usually stationed next to the platform, with its drilling package then lifted onto the platform. One of the major benefits of a TAD drilling rig

E XE CU T I VE PRO FI LE

Raphael Siri Raphael Siri is a people-oriented leader and a champion of care management philosophy. Under his leadership, Siri successfully maintained and nurtured a caring culture that helped the company weather the downturn with a team of dedicated and happy employees whom he regards as family. Siri emphasises goal-oriented performance and demands that people deliver on their promises through teamwork, adherence to policies and processes and continuous improvement. Siri has a strong cultural awareness thanks to his experience as a leader in nine different countries. He holds a Master’s in Applied Mathematics from the Université de Nice Sophia Antipolis.

w w w.c so ma ga z i n e. com

149

SAPURA ENERGY

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151 is the ability to self-raise, remove its own drilling package and then rig-up the same package on another platform, resulting in greater efficiency and sustainability for the clients. While the importance of operating sustainably is vital to all companies’ future development, Siri believes sustainability at Sapura Drilling extends further than the traditional meaning. “It’s about ensuring our employee’s lives are as sustainable as possible,” he explains. “Do we pay them correctly and are we developing their communi-

“ The first thing I look for in a potential partner is their core values. They have to be in line with ours in order for the partnership to work” — Raphael Siri CEO, Sapura Drilling and SVP Performance & Risk, Sapura Energy Group

ties in the right way? We have to train w w w.c so ma ga z i n e. com

SAPURA ENERGY BERHAD

C O M PA N Y FACT S

• Close to five decades of offshore drilling experience in Asia, Middle East, Africa and South America • Pioneer of semisubmersible tenderassist drilling rigs

152

• World-class safety standard — longest safety running streak – nearly 14 years without a lost time injury

JANUARY 2020

people properly and give them the knowledge to succeed long-term.” Siri adds that Sapura Drilling takes its sustainability initiatives on the financial and environmental side seriously too. “We’re not taking any risks that could materially hinder the company. As we operate in a range of countries with lots of employees, we have a duty of care,” says Siri. “We’re also trying to reduce our impact on the environment by questioning everything from the ground up to ensure we’re doing all we can.”

153

Looking to the future, Siri has a clear vision of the direction he aims for Sapura Drilling to be moving towards over the next few years. “We want to ensure we continue to develop into a sustainable and a reliable partner for our clients,” he summarises. “We also hope to grow in terms of our fleet, but this depends on mergers, acquisitions or newbuilds, which will be centred around the direction the market takes. Overall, we want to continue to be recognised worldwide. It’s about driving recognition and reliability as we move forward.”

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154

Total Solar: powering future horizons JANUARY 2020

WRITTEN BY

DAN BRIGHTMORE PRODUCED BY

RYAN HALL

155

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T O TA L S O L A R D I S T R I B U T E D G E N E R AT I O N ( S E A )

How Total is supporting the growth of the distributed generation of solar power across Southeast Asia, bringing the independence of sustainable energy to thousands of new customers

otal Solar Distributed Generation (DG) was formed in 2018, drawing on a decade-long commitment to solar power

stretching back to 1972, when parent company Total set up Total Énergie Développement (TED), 156

which engineered its first solar panels. Total Solar is now the leading provider of solar solutions for commercial and industrial customers with $2bn deployed worldwide and services customers that include global firms such as Siemens, Google, Toyota, Ford, Microsoft, FedEx and Walmart. Spearheading the company’s efforts to advance its global footprint in Southeast Asia, Total Solar Distributed Generation’s CEO (SEA) Gavin Adda brings a decade of experience in the industry from a previous role working on major projects for Samsung. “I could see big potential for the future here in Southeast Asia,” recalls Adda. “There are many islands with complicated terrain where it’s difficult to put a grid down. You’ve got great solar resources - and the exciting thing is that you can co-locate it and put solar where the usage is. JANUARY 2020

157

1919

Year founded

100,000 Number of employees

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T O TA L S O L A R D I S T R I B U T E D G E N E R AT I O N ( S E A )

“ What’s happening with solar, especially on the rooftop side of the business, is that we’re flipping the model round. That disruption is the revolution that’s 158 happening in power” — Gavin Adda, CEO, Total Solar Distributed Generation (SEA)

Instead of building a big solar plant in the middle of the desert and then arranging transmission and distribution before retail to a customer, you can put solar right on top of somebody’s roof, and cut costs and ease grid congestion at the same time.” Indonesia has more than 17,000 islands, and the Philippines over 7,000, in a part of the world where diesel is an expensive solution for generating power. Adda realised what a great opportunity this was to start a rooftop solar business. “When I got here, no one was doing this,” he remembers. “I created a startup which was merged into Total in 2017, and that has become Total Solar Distributed Generation, Southeast Asia.” Innovation has played a big part in Adda’s journey of developing a solar offering in Southeast Asia. “When I was joining the business, major companies such as BP, Shell and ourselves were taking a good look at renewables,” he reveals. With the core elements of businesses like these changing, it was important for Total to add new capabilities and become nimble in its approach. “I’d seen the same thing happening in

JANUARY 2020

CLICK TO WATCH : ‘TOTAL, COMMITTED TO SOLAR ENERGY’ 159 the US with companies that had been

Adda notes a shift from a B2G

very successful at selling power to a

(Business to Government) to a B2B

utility or to a government,” he explains.

model boosting the number of custom-

“If you’re going to sell power in places

ers and requiring a new approach;

like Indonesia and Vietnam, you’ve

comparable to a phase the IT industry

only got one choice, sell to that one

went through 20 years ago when the

entity. There could be hundreds of

scope of the market grew for the likes

different developers trying to sell to

of Oracle and SAP. “I was part of that

that company, so that company gets

process of helping IT companies build

to push everyone’s price down. But

B2B capabilities,” he recalls. “It was

what’s happening with solar, especially

the same at Samsung building B2B in

on the rooftop side of the business,

the consumer electronics. We have

is that we’re flipping the model round.

the same dynamism at Total Solar DG;

That disruption is the revolution that’s

the passion to build a new business

happening in power.”

model as a startup with extraordinary w w w.c so ma ga z i n e. com

T O TA L S O L A R D I S T R I B U T E D G E N E R AT I O N ( S E A )

CLICK TO WATCH : ‘TOTAL SOLAR COMMITTED TO BETTER ENERGY’ 160 resources. Bringing that passion, drive

Bollore, Renault-Nissan and Danone

and focus has been really important for

think twice before signing up to a long-

our expansion in Southeast Asia.”

term contract with a firm that’s only

Adda points out this is something

two years down the track; there’s no

Total has been doing with power assets

chance that this company is going to

for the past century, and says it is

be around in 20 years, they’re going

what sets the company apart from

to be bought and sold multiple times.”

the newcomers. “We are, in our DNA,

Adda warns that while a solar system

a developer and operator of energy

can save 10-20% on your power bill

power assets,” says Adda. “Companies

over the contract lifetime, you really

are jumping into solar but they don’t

need a long-term partner to help build

actually have any power experience.

a safe system . “We build systems that

They’re not going to be around for 20

are safer and perform better for longer;

years; and most of our contracts are for

you really need to have somebody that

20 years. That’s why companies like

you can trust on your roof.”

JANUARY 2020

Adda believes that solar generation

market, we see the opportunity for

is just the beginning. “Storage, energy

discounts between 10-30% and

efficiency and exciting new things are

then this drives a meaningful impact

coming that will enable independence

on our carbon footprint. We’ve done

for our customers.” Along with that

one project for a Total affiliate in

independence comes the chance to

Singapore with a 1.2MW rooftop,

create a sustainable model for power

which will be equivalent to them

generation, but to do that it has to be

planting 8,000 trees a year for 20

economically viable, Adda urges. “It will

years. That’s a massive impact and

be a sustainable business if it makes

among many interesting ventures for

sense. And for us that’s really about

Total. We’re now implementing solar

cost reduction,” he explains. “Most of

systems on 5,500 facilities around

our customers are focused primarily

the world, including more than 4,000

on investing in solar. Depending on the

service stations.”

161

E XE CU T I VE PRO FI LE

Gavin Adda Gavin Adda began his career in the early days of internet startups where he learned the value of a nimble approach to business. Experienced in tech, his previous sales roles at Oracle and Samsung underpin his skills in the B2B space. “I’m capable of taking a business, making sure that it’s reaching out, and making the right connections with corporate, commercial and industrial companies,” he confirms. Adda appreciates the power of digitisation as a transformative catalyst for business. A decade spent working in Solar for Samsung, solar panel manufacturer REC, and his own startup CleanTech Solar, leaves him well placed to improve Total Solar DG’s operations across Southeast Asia while driving the innovation that makes solar energy a commercial and sustainable proposition for the future.

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T O TA L S O L A R D I S T R I B U T E D G E N E R AT I O N ( S E A )

Solar energy solutions for a greener earth SolarGy Pte Ltd is one of the leading professional system integrators of solar PV systems based in Singapore. We have over twenty years of experience in electrical installations and building architecture. Learn More

163 Total Solar DG also supports the

to realise its ambitions and are, says

Total Carbon Neutrality Ventures

Adda, the “fundamental bedrock” upon

(TCNV) fund - a $400mn initiative

which the business is being built.

aimed at reducing carbon footprint

Among these, SolarGy, based in

with clean/green energy. “We’re work-

Singapore is a veteran of the industry

ing with some of our partners on hybrid

working on a wide range of different

solar battery projects and passing

projects for the Singaporean govern-

them through the Ventures team to

ment. “We’re seeing more customers

help them with investment,” reveals

keen to make power purchase agree-

Adda. “It’s exciting that TCNV is aim-

ments (PPAs) rather than buy a solar

ing to bring on board companies with

system,” says Adda. “We’re work-

disruptive new technologies that we

ing with SolarGy to implement that

can implement in our own projects.”

approach and attract new customers.

Local partnerships in countries across

We are also exploring several partner-

Southeast Asia are vital for Total Solar

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T O TA L S O L A R D I S T R I B U T E D G E N E R AT I O N ( S E A )

164

Total’s commitment to Solar “Over the next 20 years, electricity demand will increase faster than the demand for energy as a whole. In order to meet this growing need, tackle the challenges of climate change and comply with the International Energy Agency’s 2°C scenario, we have made it our ambition for low-carbon businesses to account for nearly 20% of our portfolio in 20 years. We are already actively

JANUARY 2020

participating in the development of renewable energies, especially solar. With operations spanning the manufacture of highefficiency photovoltaic panels, ground-based power plants, decentralised systems, storage solutions and marketing to end-customers, we are present across the entire value chain and fast-tracking the deployment of solar technology.”

by Total, that supplies batteries to the transport and aviation sectors.” Adda laments that awareness of the fact that the cost of power from solar is cheaper than the grid is still low, but adoption is gathering pace. “We’re seeing the penny drop for companies in the US and Europe, and they’re now starting to implement through their supply chains too, leading to some very large projects. Across Southeast Asia, large projects are happening in one go. Previously, you would see maybe a $500,000 project happen, now we’re dealing with $30mn portfolios.” Working with Chandra Asri, the biggest petrochemical company in Indonesia, has been a real breakthrough for Total Solar DG. “It was the first rooftop PPA in the country. Up until then everyone was buying their power from the utility PLN,” says Adda. “We were up and running within three months and it shows what’s possible in Indonesia. The fact that we were able to find a solution for a plant with such sensitive machinery shows the capabilities of solar to make a difference to our industrial customers.” The company has also recently signed a contract to w w w.c so ma ga z i n e. com

165

T O TA L S O L A R D I S T R I B U T E D G E N E R AT I O N ( S E A )

supply the biggest single-rooftop solar array in Thailand for a 7MW project. Elsewhere, in Cambodia, a solar storage hybrid project is underway on Koh Rong Sanloem island. “We will be taking that island off diesel, and providing clean power, to various resorts, leisure companies and surrounding villages,” he confirms. Total Solar is also providing rooftop solar systems for three shopping malls operated by Gaisano Capital in Luzon and the Visayas in the 166

Philippines. “We’re reaching out and growing awareness around the impact solar can have across a much wider community,” says Adda. With a combined capacity of 1.2MW, the resulting

“ We build systems that are safer and perform better for longer; you really need to have somebody that you can trust on your roof” — Gavin Adda, CEO, Total Solar Distributed Generation (SEA) JANUARY 2020

carbon footprint reduction is equivalent to planting 3,500 trees each year. The photovoltaic systems are expected to cover over 30% of Gaisano’s power needs and will slash its energy bill by more than 15%. Southeast Asia provides one of the fastest growing global solar markets for Total, where the company is committed to providing cleaner, greener and cheaper power. Adda’s team is also

167

looking at Japan, Australia, Myanmar

into growing the people, the platform

and Vietnam - potentially huge markets

and the relationships that enable us

with growing populations and massive

to build a multi-billion-dollar business,

demand. “The challenge will be to

move the needle and make a positive

scale the business as quickly as the

impact with solar and renewables.”

market is scaling and develop our battery storage portfolio,” says Adda. “We’re expecting to double in size for the next four years, just to keep up with that growth. Total can make these long-term bets, and put the investment w w w.c so ma ga z i n e. com