CSO Magazine June 2019

CEO Suranga Herath on sustainability and transparency JUNE 2019 www.csomagazine.com

Customer focused supply chain excellence

SUSTAINABLE LUXURY

Diversity and change in the energy sector Elena Bou, Innovation Director at InnoEnergy, on how the company works to reduce cost, promote sustainability and secure the energy supply chain

TOP 10

Green companies

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FOREWORD

W

elcome to the June issue

focuses on how sustainability and

of CSO Magazine!

luxury go hand in hand.

On the cover of this month’s issue,

Exterran’s Director of Supply Chain of

Elena Bou, InnoEnergy’s Director of

Middle East and Asia, Suraj Devadiga,

Innovation, discusses the company’s

comments on how the company is

approach to sustainability.

embracing technology to transform the oil and gas sectors.

“InnoEnergy was founded

Capgemini’s Dr James

to contribute to the energy

Robey offers an exclu-

transition and to help

sive insight into how to

solve Europe’s energy

drive engagement on

challenges – anything that we do should help to reduce the cost of energy, reduce green-

Elena Bou, Director of Innovation at InnoEnergy

house emissions and secure the energy supply,” says Bou.

sustainability issues.

In addition, English Tea Shop and Zeelo also feature in the June issue,

discussing transparency and

Elsewhere in the magazine, Sandeep

smart transportation.

Arora, Vice President of Global

Finally, CSO Magazine looks at the

Sourcing and Strategy at SPX

top 10 green companies, according

Transformer Solutions, reveals how

to Corporate Knights. The list

his firm’s supply chain management

features Shinhan Financial Group

strategy is improving digitisation.

Co, Prologis, Inc. and Ørsted.

Meanwhile, Paul de Vreede, Vice

Enjoy the issue!

President of Sustainability and Strategic Initiatives at naked Retreats,

Sophie Chapman.

Sophie.chapman@bizclikmedia.com w w w.c so ma ga z i n e. com

03

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EDITOR-IN-CHIEF

SOPHIE CHAPMAN MANAGING EDITOR

OLIVIA MINNOCK

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CONTENTS

PIONEERING CHANGE AND DIVERSITY IN THE ENERGY SECTOR

12 22

30

Why we must invest in today’s shared transportation to build the foundation of tomorrow’s smart mobility

HOW CAN YOU INFLUENCE BEHAVIOURS TO DRIVE CHANGE ON SUSTAINABILITY ISSUES?

JUNE 2019

Creating shared value, the right way

40 50 TOP 10 Green companies

64 The biggest industry events

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

68 SPX

88

106

Naked Retreats

Exterran

114

114

Plymouth Rock Assurance

Plymouth Rock Assurance

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

12

PIONEERING CHANGE AND DIVERSITY IN THE ENERGY SECTOR As an innovator in the energy field, EIT InnoEnergy aims to encourage more evolution, solutions and diversity within the industry WRITTEN BY

JUNE 2019

SOPHIE CHAPMAN

13

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

A

s a pioneer of sustainability, EIT InnoEnergy

focuses its operations on providing support through innovation, entrepreneurship and

education. “Our mission is to be the gene of innova-

tion and entrepreneurship in sustainable energy,” states Elena Bou, Innovation Director, who has been part of the firm since its origins in Eindhoven.

“InnoEnergy was founded to contribute to the energy transition and to help solve Europe’s energy challenges – anything that we do should help to reduce the cost of energy, reduce greenhouse emissions and secure the energy supply.”

Dubbing itself as the ‘innovation engine for 14

sustainable energy across Europe’, the organisation operates three business lines in order to reach these goals – education, collaborative innovation and startup creation. Under its education pillar, the firm supports Master’s and PHD degrees which focus on technology, engineering, innovation, and entrepreneurship. “These programmes are a gamechanger and enable young people with different mindsets to work in traditional energy companies whilst offering something new to them,” notes Bou. To promote collaborative innovation, the company brings together different organisations from the industry, including researchers and startups, enabling them to launch solutions onto the market. Finally, under its three business lines, Bou outlines how InnoEnergy supports startups within the industry “from the very beginning until the moment that they JUNE 2019

“Our mission is to be the gene of innovation and entrepreneurship in sustainable energy” — Elena Bou, Innovation Director at InnoEnergy

15

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

“ By seeing women in relevant positions in the energy industry, young women will finally be more prosperous and motivated” — Elena Bou, Innovation Director at InnoEnergy

are really a sustainable company”. As a member of the executive board and Innovation Director, it is Bou’s responsibility to manage these business lines.

On top of this, she also helps to define the company’s defining strategy and monitors its implementation across the company’s global portfolio.

For the team, solutions are more important than technology, which can be seen in InnoEnergy’s balanced portfolio: today, more than 230 companies that have received investment from the

16

JUNE 2019

CLICK TO WATCH : ‘EIT INNOENERGY – WE ARE BUILDING THE WORKFORCE’ 17 business. Despite current trends to

philosophy, and you can see it in our

prioritise digital transformation,

portfolio,” says Bou.

InnoEnergy are not channelling their

To drive sustainability, the firm is also

funding towards one marketable

striving to ensure women receive the

technology. The firm is aiming to invest

same opportunities as men, both within

in a variety of businesses which offer

the energy market and its own business.

a range of solutions across the

This is something Bou feels very passion-

energy spectrum. “There are many

ately about: “Where do women sit within

people that are really in love with

the energy transitions? The same place

technology, and will focus spending

as men. It’s not a question of gender, it’s

on it. For us, it’s more unique – we

a question of the individual and their skills.

are not betting on one single solution.

At the end of the day, despite all the

There is no one proven ballot that

technology innovations, we are impact-

sorts all the world’s sustainability

ing people’s lives and it’s important that

problems. That in general is our

the right people are doing so.” 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

C O M PA N Y FACT S

InnoEnergy is hosting The Business Booster (TBB) between 3 – 4 October in Paris. This year’s theme will be humanising the energy transition, and there will be sessions looking at how diversity in energy can spur innovation

18

Bou also highlights the importance of

population, female entrepreneurs in

getting women into the energy industry

Europe sat at about 30%, with even

in the first place. “It is believed there are

fewer in the sustainable energy sector at

less women working within the energy

approximately 7%. By 2012, the sustain-

industry as fewer women are engineers.

able energy figure hit 11%. For InnoEn-

If those working in the social sciences, of

ergy, around 13% of its supported start-

which there are more women, could also

ups have female founders. “If we consider

be a part of the energy transition, this

that in Europe more than 40% of emp-

would help fix that problem,” adds Bou.

loyees are female but between 5% and

She has noticed more awareness

6% occupy senior position, then it is clear

regarding the gender gap, but real

that we are making progress but the

change is taking longer than expected.

trend is moving very slowly,” she claims.

For example, in 2008, despite women accounting for around 50% of the JUNE 2019

Bou argues that younger women need to see established and mature women

19

holding senior positions so that they can

strates they are not equipped with

act as role models. “By seeing women

different competencies.”

in relevant positions in the energy

The firm’s moto of ‘Knowledge, Inno-

industry, young women will finally be

vation, Community’ reflects its stance

more prosperous and motivated,” she

on gender inequality within the energy

says. InnoEnergy is focusing on how to

industry. As an innovator within the

help motivate women into the industry.

field, the company aims to enable more

The firm used to screen for entrepreneur-

sustainable advancements in the energy

ial competencies of startups applying

market – including new solutions, more

for its programme: “We have the

women in management positions, and

preliminary findings that show there are

new businesses joining the industry.

no major differences between male and female entrepreneurs. This is something very relevant, as it demonw w w.c so ma ga z i n e. com

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ENERGY MANAGEMENT

22

Why we must invest in today’s shared transportation to build the foundation of tomorrow’s smart mobility CEO & co-founder of Zeelo, Sam Ryan, explores why smart transportation is a must for tomorrow’s cities WRITTEN BY

JUNE 2019

SA M RYAN

23

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ENERGY MANAGEMENT

24

W

e’re living in an exciting time

utopian ideal of a seamlessly integrated,

for smart mobility. Buoyed by

intelligent transport network and the

recent developments in trans-

corollary benefits that such a system

formative technologies, such as artificial

will bring – to the economy, to passenger

intelligence (AI), the Internet of Things

safety, to the health and wellbeing of

(IoT) and fifth-generation wireless

both people and the natural environment.

communications (5G), the vision of

But while a future-thinking perspective

fully-sophisticated smart mobility

is all well and good, it’s important to

seems closer than ever.

remember that innovation cannot be

With one eye firmly fixed upon a future

built on blue-sky thinking alone. While

where everyday processes and services

future smart mobility will certainly

will become increasingly interconnected,

comprise an array of exciting forms of

data-driven and autonomous, it’s hard

transportation – wide scale electrification

not to feel a sense of excitement at the

of vehicle fleets, autonomous vehicles,

JUNE 2019

25

fully-connected travel experiences and

fuelled by ever-cheaper models

more besides – we must not lose sight

produced on a hyper mass-market scale,

of the practical steps that need to be

with private car ownership per-capita

taken in the here and now to step change

rising year-on-year in virtually every

transportation for tomorrow. This starts

nation on earth. But while current rates

with a fundamental shift in attitudes to

of ownership still far exceed the pro-

travel – namely, away from the singular

portion of one car for every two persons

and towards the shared.

across much of the developed world, a report on disruptive automotive trends

AN INCONVENIENT TRUTH

from McKinsey & Company suggests

For close to a century, the car has been

the beginnings of a global downward

considered king when it comes to

trend in private car ownership. In the

convenient transportation. In that time,

face of growing global frustration at

demand has been both fulfilled and

excessive congestion on inter-city w w w.c so ma ga z i n e. com

ENERGY MANAGEMENT

“ While future smart mobility will certainly comprise an array of exciting forms of transportation… we must not lose sight of the practical steps that need to be taken” — Sam Ryan, CEO & co-founder of Zeelo

26 highways and in busy urban centres,

tion is getting worse, costing an estimat-

and the resulting environmental

ed $305bn in economic impact in 2017

concerns that such high levels of traffic

in the US alone, an increase of $10bn

bring, there is a growing acceptance

from 2016. Excessive carbon emissions

that private vehicles aren’t necessarily

from traffic are polluting our air to

the way that people will move in future.

dangerous levels, with the World Health

Some are already beginning to break

Organisation claiming that transport

the habits of a lifetime and transition

accounted for almost a quarter of global

towards smarter shared mobility

carbon dioxide emissions in 2010. In

services – though the rate at which this

addition, people are spending longer

is happening is perhaps slower than it

than ever commuting to and from work,

ought to be.

regardless of how they travel, while the

The problems faced by societies on

overwhelming need for more car

a global scale as a result of excessive

parking spaces is limiting our ability to

car ownership are intensifying. Conges-

expand and grow smarter cities in the

JUNE 2019

CLICK TO WATCH : ‘TRAVEL WITH ZEELO | YOUR COMMUTING, FAN AND FESTIVAL TRAVEL SORTED’ 27 way that we want to. The fact is that

communal travel models of old. Because

while cars have long been seen as the

of technological innovations, shared

ultimate symbols of convenience, the

travel experiences are becoming better

global overreliance on them means

than ever – though this, of course, means

that these efficacy benefits are not only

that expectations are similarly increased.

being outweighed by the negatives, but

An influx of well-funded ride-hailing

are simply ceasing to exist altogether.

startups has disrupted the transport

Solo travel is starting to seem less like

market, while the level of on-demand

a route to convenience and more like

expediency offered across a range of

a roadblock.

other industries has fundamentally raised the bar on what customers expect from

SHARING THE SPOILS

the services they consume. People

The idea of travelling together is certainly

want services that are made for them,

nothing new, but today’s innovative

designed and developed around their

shared mobility services are unlike the

wants and needs – and they not only w w w.c so ma ga z i n e. com

ENERGY MANAGEMENT

want them immediately, but they expect

chance of actually making the most of

them to be affordable. For the status of

their travel time. Secondly, transport

smart mobility to be truly accelerated,

providers and planners must work

propositions must meet the skyrocket-

together to bridge the current gaps in

ing demands that consumers have now

the network, as the current reliance on

in terms of ease and efficiency.

personal car transportation is primarily

To do this, we can start to focus on

driven by a lack of genuinely compelling

a number of things. Firstly, transport

alternatives. Gaps in the transport

operators and providers can invest in

network can be quickly and dynamically

better onboard experiences to help

filled by new, connected and data-driven

solve the wellbeing and productivity

mobility services, which are a precur-

challenges associated with stressful

sor to the ultimate goal of seamlessly

journeys. By improving communal

connected travel experiences.

travel experiences, whether for work or 28

leisure, operators give people the

Finally, and where feasible, we must look to interlink existing travel options,

“ Because of technological innovations, shared travel experiences are becoming better than ever� — Sam Ryan, CEO & co-founder of Zeelo

JUNE 2019

with a particular focus on solving the challenge of the first and last mile. If people cannot get exactly to where they need to be via shared transport, they will often begrudgingly turn back to the private vehicles they are trying to leave behind. Local municipalities and regulators have a key part to play here, as it is only by enabling the provision of data between all parties in the overall travel experience and ultimately beginning to break down the existing barriers between public and private transportation that we will start to see real progress made.

29

FACING THE FUTURE Improving the performance and viability

will eventually overcome all these hurdles,

of today’s shared travel options will lay

and the dream will one day become

a bedrock upon which to start serious-

reality, but hurdles do, of course, come in

ly building the smarter travel networks

sequence. We cannot scale them all at

of the future. True smart mobility isn’t

once, and without overcoming the

here yet, and there are many hurdles to

challenge of making shared mobility

overcome as we progress towards the

more attractive than solo travel, we run

ultimate goal – including building the

the risk of the remaining hurdles seeming

infrastructure for electric and automat-

increasingly insurmountable.

ed vehicles, working out how these next-generation vehicles will properly interface with the human world and solving synonymous challenges in other sectors such as mobile networks. We w w w.c so ma ga z i n e. com

TECHNOLOGY

30

HOW CAN YOU INFLUENCE BEHAVIOURS TO DRIVE CHANGE ON SUSTAINABILITY ISSUES? Dr James Robey, Global Head of Environmental Sustainability, leads Capgemini’s sustainability programme across 40 countries and discusses his insight into driving engagement on sustainability issues WRITTEN BY

JUNE 2019

DR JA MES ROBE Y

31

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TECHNOLOGY

P

aul Polman, former CEO of Unilver, and Vice-Chair of the UN Global Compact, who received an award

earlier this year for a lifetime achievement on sustainability, said: “No snowflake in

an avalanche ever feels responsible - we all make a difference. Ultimately it is the collective efforts of all us individually that will change the world. Nothing has ever changed because of an organisation. It is because an individual stood up.”

As a business, our critical question is how 32

do we create a culture where individual sustainable actions are normalised, and people are empowered to make a difference on problems that matter to them?

A THREE-PRONGED APPROACH MAKES A LONG-LASTING CULTURE CHANGE At Capgemini, we engage our leadership in a ‘top down approach’, creating a system that frames our sustainable actions. Examples include setting the framework through our ambitious carbon impact targets, agreeing funding for new technology to reduce travel, or simply setting new policy. We engage our different business units to align our sustainable strategy with their agendas to ensure a ‘holistic’ approach. Most critically, we strive to engage JUNE 2019

“ People want to make a difference, and they need to know their actions count” — Dr James Robey, Global Head of Environmental Sustainability at Capgemini

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33

our key audience — our colleagues — by creating an environment where they can make sustainable choices

34

James Robey

at work every day, through an integrat-

James has been driving the Corporate Sustainability agenda at Capgemini since 2008 – initially for Capgemini UK and since January 2011 globally. Bringing together the local sustainability leaders from across the Group, James broadened Capgemini’s traditional community focus into a wide ranging programme covering Environmental Sustainability, Community Engagement and Diversity & Inclusion.During his 18-year career at Capgemini, James has held a number of roles, primarily in business development and programme management.

ed approach, comprising of education, engagement and empowerment.

At the end of last year, we made a commitment to leverage our technology and change capabilities to help our clients save 10mn tonnes of carbon emissions. This is requiring a complete step-change in our business, embedding sustainable thinking into our services. We have applied exactly this three-pronged approach. Getting our board to commit to make technology for sustainability a business priority has paved the way for us to align country heads and sector leads and galvanise support from our internal functions like our university.

Step three has seen us accelerate our education and engagement process.

While, in its early phase, signs are promising with nearly 2,000 people trained, rising participation in engagement activities like hackathons4good and more than 30 client carbon conversations.

JUNE 2019

CLICK TO WATCH : ‘INNOVATORS RACE WHERE TECHNOLOGY AND BUSINESS MEET SUSTAINABILITY’ 35

TO CREATE CHANGE, WE MUST TAP INTO MOTIVATION

tives, including a scheme to encour-

We have found several motivational

lease cars. We also have rewards for

considerations for our people. Some

fuel efficient driving and even free rail

of the key ones for us have been:

travel (including evenings and week-

• Making it personal: People want to make a difference, and they need to know their actions count.

age more fuel-efficient, low carbon

ends) for employees within an overall mobility budget.

• Making change unavoidable:

We reduced our office waste by 7%

When we first made a commitment to

after a week-long campaign which

reducing our carbon impacts, we also

highlighted the waste impacts of

embedded these commitments into

an individual person, every day in

a contract with a major government

our offices.

client. We also ‘persuaded’ our teams

• Incentivising change: Our travel programmes offer a range of incen-

to recycle more by simply taking away all desk bins. w w w.c so ma ga z i n e. com

TECHNOLOGY

“ One of our persistent challenges is driving behaviour change to reduce our business travel impacts” — Dr James Robey, Global Head of Environmental Sustainability at Capgemini 36

NORMALISING BEHAVIOUR IS A KEY PART OF THE JIGSAW

driving behaviour change to reduce our

A behaviour change study carried out

business travel impacts. We have

by the UK Government’s Behavioural

managed to succeed through introduc-

Insights team focused on engaging

ing a holistic travel programme with an

people in reducing towel use in hotels.

entire gamut of measures that included

Different messages were used on the

personal monthly carbon statements

towel rack to encourage hotel guests

and incentivising lower carbon travel

to reuse their towel during their stay:

using AI (artificial intelligence) to

JUNE 2019

One of our persistent challenges is

37

prompt sustainable alternative choices

investment in new collaboration

through online booking. Another

technologies.

measure that has seen success is using

This sums up the key elements of

data analytics to identify the most

what has been a successful ‘nudge

frequently used flight routes, so that

campaign’ for us. We educated the

opportunities for low carbon alterna-

organisation by raising awareness on

tives can be investigated and commu-

the environmental impacts of travel

nicated as well as simply providing

and highlighted different travel options

credible alternatives to travel, with the

for them, as well as clearly explaining w w w.c so ma ga z i n e. com

TECHNOLOGY

38

JUNE 2019

what our desired outcomes and actions from the programme were. However, in order to educate people, you have to ensure the travel programme has good visibility within the organisation or it could fall upon deaf ears. You must also make sure that the different actions you are asking of people are easy enough to do that it won’t impact their day-today routine.

We also work hard to make sustainability an engaging, community-building issue, igniting the passion of our people through discussions, hackathons and events. Our sustainability programme started with a few individuals from across Capgemini coming together to address climate change and other sustainability issues. Ten years later, and the need to continually challenge our thinking and engage with our colleagues is more critical than ever. Our ambition remains to ensure that sustainable thinking is embedded into all actions and is just the ‘way we do business’.

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39

CSR

40

Creating shared value, the right way Suranga Herath, CEO of the English Tea Shop, discusses the importance of sustainability, transparency and creating shared value at every level of the supply chain WRITTEN BY

JUNE 2019

HARRY MENE AR

41

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CSR

I

t’s rare to see a successful company, operating a tried and tested business model, turn around and completely reinvent itself.

The old adage “If it ain’t broke, don’t fix it,” comes to mind; why subject your business to radical upheaval and the risks therein? Because it’s the right thing to do. “We wanted to find a model that empowered people,” recalls Suranga Herath, CEO of English Tea Shop.

“We were a production house before English Tea Shop was born, a very ordinary tea business that packed all sorts of brands. It was that kind of a company because we thought business was simply about capability 42

and maximising resources.”

In 2008, Herath’s company was packing 70 different brands of tea for exportation to the US, UK and Europe. In 2010, the company made the move from Sri Lanka to the UK. “That was the moment of truth for us,” says Herath. “Coming from Sri Lanka, a nation famed for its tea and spices, we had this huge passion for people, naturally, because it’s a very labour-intensive industry. We realised that the traditional tea industry didn’t empower the people at the bottom of the pyramid. That needed to change.” The right course of action was, for Herath, obvious and imperative, regardless of its challenges.

“The shift was very risky. It was a huge transformation from being an ordinary, conventional JUNE 2019

43

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CSR

“ We enhance transparency and fairness along our value chain by creating shared value” — Suranga Herath, CEO, English Tea Shop

business, to leaving the auction system, leaving the large plantation companies that supplied us and moving to a very small number of small-scale suppliers of tea and ingredients, with the goal of becoming 100% organic, which we accomplished within two years,” says Herath. Nine years later, English Tea Shop has grown 65% annually over the past seven years, and last year reported revenues in excess of US$28mn across more than 50 markets. We spoke to Herath about his quest to empower people at every point in the supply chain, guarantee transparency and fairness,

44

JUNE 2019

45

and transform the lives of thousands

help our business to grow sustainably,”

of small-scale farmers across Sri

says Herath in an interview with the

Lanka, India, New Zealand, South

Soil Association. He continues: “Which

Africa and beyond.

is why we work closely with the farmers

“We enhance transparency and

who grow our organic tea, they provide

fairness along our value chain by creating

constant inspiration as we see the

shared value,” explains Herath. English

challenges they face on a daily basis.

Tea Shop’s model stems from the work

Their hard work and dedication make

of Harvard Business School Professor,

us strive for success because as we

Michael Porter. “This is the principle on

succeed, they succeed.” Porter himself

which we run our business. In essence,

notes that “Shared value is not social

this means that by being an ethically-

responsibility, philanthropy, or sustain-

minded business, we not only help

ability, but a new way for companies to

improve the world around us but also

achieve economic success.” w w w.c so ma ga z i n e. com

CSR

“ The market is demanding prominence, authenticity and transparency from the supply chain” — Suranga Herath, CEO, English Tea Shop

46

English Tea Shop’s next step in

Herath sees the increased transpar-

creating shared value across its supply

ency in his supply chain as an opportu-

chain involves a partnership with the

nity to simultaneously operate in a more

Soil Association, a certification non-

ethical way and create value for the

profit based in Bristol. “They’re leading

company. He notes that the rest of the

from the front and we’re helping fund

market is taking note. “The rise of the

their efforts to build a platform,” says

CPO role, as well as the dramatically

Herath. “English Tea Shop is one of the

increased focus on supply chain

pioneer brands that is going to be

management and the entire procure to

tested on the model. All our supplies,

pay process, has been elevated.

the entire value chain will be a guinea

And it’s in response to market demand,

pig for a process that, hopefully,

because the market is demanding

creates transactional transparency

prominence, authenticity, transparency.

from farm to cup.”

That’s what’s elevated the procurement

JUNE 2019

function as a whole,” Herath posits. “Of course, for our business, it was just natural. We are, I think, a perfect example of how the procurement process has evolved.” Thinking back to the auction method that English Tea Shop used to use, Herath reflects “Nine years down the line, what we now have is a very complex supply chain management system, a big team led by master blenders and procurement specialists, adopting new technology. I think the requirement was clearly for a process, leadership and people that create winwin solutions. It’s no longer just about going to the sources and buying tea.

E XE CU T I VE PRO FI LE

Suranga Herath A global expert on the tea industry, Suranga Herath is CEO of English Tea Shop, one of the world’s leading organic tea businesses which brings high quality, ethically-sourced tea to customers all over the world.

His business has grown 65% annually over the past seven years whilst continuing to instill sustainable practices that enrich the brand’s community. By doing so, Herath’s visionary leadership has led the way in sustainable practices, inspiring other forward-thinking ethical food and drink companies to follow.

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47

CSR

This is about finding better yields for both parties, achieving better quality, better efficiency, saving in every possible way for both sides, and knowing very well that we’re entering into long-term relationships.”

From the very beginning, English Tea Shop has cultivated its small network of growers by investing in technology and sharing knowledge, working to convince other growers to take up organic farming practices. “We had to inspire other people to buy into organic small farming to expand our supply 48

base,” says Herath. “From the simplest things, like giving suppliers a long-term contract, to building big storage facilities to hold stocks because we didn’t have the luxury of working off an auction that gave us weekly demand.” The process worked, and English Tea Shop’s positive

schools.” Herath maintains that this sort

impact on its growers’ lives has contin-

of investment at the base of the pyramid

ued to spread. “In 2018, we launched

is essential to the creation of shared

a sustainability impact report. The

value. “If you don’t do these things, then

results showed that we had impacted

our kind of model cannot be a success,

over 1,352 farmer families, in terms of

because how do you expect small

investing in them, paying for their organic

farmers to be planning or taking risks

and Fairtrade certifications, paying for

without that support? It so unfair,” he

their new technologies, supplying them

says. “We had to take the risk, we had

with irrigation solutions, and building

to take the burden, and we had to build

and helping them develop regional

those growers’ capabilities to ensure

JUNE 2019

“ We are, I think, a perfect example of how the procurement process has evolved” — Suranga Herath, CEO, English Tea Shop

49

they could be sustainable and the

non-GMO.” Herath concludes: “We

brand is sustainable.”

want to be the leading independent tea

Looking to the future, Herath and

brand, and be known for our own

English Tea Shop aren’t content to rest

unique creating shared value model.

on their laurels. “We’re on a mission to

We’ve just entered China, we got into

improve upon our energy use and reduce

Chile last year and we’re working on

waste. For 2020, we’ve set ourselves

Brazil now. We want to keep expanding,

the goal of being completely free from

but we want to do it the right way.”

single-use plastic. This year we’ve already completely revamped our core ranges; they’re now plastic free and w w w.c so ma ga z i n e. com

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JUNE 2019

TOP 10 Green companies CSO MAGAZINE COUNTS DOWN THE TOP 10 GREEN COMPANIES, ACCORDING TO CORPORATE KNIGHTS’ RANKING OF COMPANIES WHICH GENERATE MORE THAN $1BN IN ANNUAL REVENUE WRITTEN BY

WILLIAM SMITH

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T O P 10

52

10

Taiwan Semiconductor 77.71%

Taiwan Semiconductor is the world’s largest dedicated semiconductor foundry. Corporate Knights gave it a sustainability score of 77.71%. Its revenue, as of 2017, was $32.89bn and it employed 46,968 people. The firm says it pioneered the pure play business model for semiconductor foundries, saying: “By choosing not to design, manufacture or market any semiconductor products under its own name, the Company ensures that it never competes directly with its customers.”

JUNE 2019

53

09

Shinhan Financial Group 77.75%

South Korean Shinhan Financial Group oversees both Shinhan Bank and the smaller Jeju Bank, and achieved a score of 77.75%. Headquartered in Seoul, the organisation is descended from Korea’s oldest bank. The company emphasises the role of “Compassionate Finance” in the way it does business, with CEO Cho Yong-byoung saying, “going forward, all Shinhan members will practice ‘compassionate finance for the future’ to realise the Group’s mission of creating a virtuous cycle of shared prosperity.”

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08

Banco do Brasil S.A. 78.15%

Banco do Brasil describes itself as the largest financial institution in Latin America. Founded in 1808 in Rio de Janeiro, the Brazilian company had a revenue of approximately $53bn in 2017, and employed 99,161 people. Mainly focused on the Brazilian market, the company facilitates access to the country for foreign companies looking to market there. Corporate Knights’ score of 78.15% puts it in eighth place.

JUNE 2019

55

07

Umicore 79.05%

Belgian materials company Umicore scored 79.05% on the metric.

Having originated as a mining company, Umicore now focuses on clean technologies. They employ 10,400 people and have a revenue of $3.7bn (excluding metal). Umicore says its “overriding goal of sustainable value creation is based on an ambition to develop, produce and recycle materials in a way that fulfils its mission: materials for a better life�.

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06

Prologis, Inc. 79.12%

Multinational real estate investment trust Prologis achieved a total score of 79.12%. With properties in 19 countries, it employed 1,617 people and had a revenue of $2.804bn in 2018. Headquartered in San Francisco, Prologis covers 72mn square meters of property, with assets worth $97bn. The company says that it “strives to be an exemplary corporate citizen, to minimise our environmental impacts and to maximize beneficial outcomes for our stakeholders�.

JUNE 2019

57

05

GlaxoSmithKline plc 79.41%

London-based pharmaceutical company GlaxoSmithKline comes in fifth, with a score of 79.41%. The firm is recognised for both its drugs and consumer products such as Horlicks and Nicorette. It reported its 2018 revenue as $39.83bn, and said it employed 98,462 people in 2017. In September 2018, the company announced a set of commitments around responsibility, aligning itself with UN Sustainable Development Goal 3 of promoting Good Health & Wellbeing.

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04

Ørsted 80.13%

Ørsted is Denmark’s largest energy company. With a total score of 80.13%, its revenue in 2018 was $11.55bn and it employed 6,080 people. Its CEO, Henrik Poulsen, has said “to slow down climate change, we must transform society with CO2 neutral solutions”. Accordingly, the firm has made a commitment to fully phase out coal by 2023, and have established a focus on green energy such offshore wind to replace that energy source. The company’s resolve was further demonstrated by 2016 their name change, where they divested themselves of their former name DONG Energy (Danish Oil and Natural Gas).

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59

03

Neste Corporation 80.92%

Neste is a Finnish oil refining company. While the presence of an oil refining company on a sustainability list may at first seem a surprise, Neste says: “We have always thought in a different way. We want to challenge the oil refining industry by offering increasingly clean fuel solutions and applications based on renewable raw materials.” This effort is reflected in it’s score of 80.92%. It’s company’s 2018 revenue was $16.73bn, and it employed an average of 5,468 people.

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02

Kering SA 81.55%

The Paris-based luxury goods company Kering is second on the list with a score of 81.55%. Owner of brands of the likes of Gucci, Yves Saint Laurent and Balenciaga, the

60

company reported its 2018 revenue as $15.33bn dollars, and said that it employed on average 30,595 people. One factor propelling them up the CSR list was the high percentage of women on its board; 64%, the highest of all the companies examined by Corporate Knights.

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T O P 10

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Chr. Hansen Holding A/S 82.99%

With an overall score of 82.99%, the enviable title of most sustainable company in the world is Denmark’s bioscience company Chr. Hansen. The result is even more impressive considering the com-

62

pany’s founding in 1874, making it almost 150 years old. In 2017/18 the company employed 3150 people on average and had a revenue of $1.23bn. The firm has a key focus on the production of cultures, enzymes and natural colourings for the food industry. Chr. Hansen say that its “purpose is to deliver natural innovative solutions that address global challenges by advancing food, health and productivity”.

JUNE 2019

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

The biggest industry events and conferences EDITED BY LAURA MULLAN from around the world

10–12 JUNE

18th Responsible Business Summit Europe 2019 06–09 JUNE

64

[ NOVOTEL WEST, LONDON UK ]

ASEAN Sustainable Energy Week (ASE)

If businesses want to address social and

[ BITEC, BANGKOK, THAILAND ]

need look no further than the Responsi-

This massive show expects 27,000

ble Business Summit Europe. Attendees

visitors, over 1,500 brands and over

can join over 600 CEOs, business

80 seminars tackling renewable energy

leaders, investors, government repre-

sources and the latest technology in

sentatives and NGOs to identify new

this area. Wind and solar power are

innovations, materials, technologies and

among the many systems and programs

partnerships that will help them become

featured and discussed along with

more sustainable businesses. With

thermal and waste-to-energy, hydro-

speakers from Mars Petcare Europe,

powered programs, bio-mass and other

UN Women, UNFCCC and more, the

green technology. Renewable energy

summit promises to be a market-leading

and energy efficiency clinics staffed by

event that will shape the future of

experts are also conducted at the show.

sustainable business.

JUNE 2019

environmental challenges then they

09–10 SEPTEMBER

Offshore Wind Intersolar South America Executive Summit [ HOUSTON, TX, USA ] 2019 28–30 AUGUST

[ SÃO PAULO, BRAZIL ]

Bringing together decision makers from

With 11,500+ visitors, 1,500+ conference

wind and offshore oil and gas, both from

attendees and 180 exhibitors, Intersolar

the US and Europe, the Offshore Wind

has become the most important platform

Executive Summit looks at technology

for manufacturers, suppliers, distributors,

innovation, design, foundations, vessels,

service providers, investors and partners

cabling and workforce skills. The sum-

of the solar industry. Intersolar South

mit provides the forum to establish new

America takes place at the Expo Center

business relationships. Discussion

Norte in São Paulo, Brazil in August has

points include project development,

a focus on the areas of photovoltaics,

important policy issues and supply

PV production technologies, energy

chain management.

storage and solar thermal technologies.

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65

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

16–17 OCTOBER

66

Ethical Corporation’s Sustainability Reporting and Communications Summit 2019 [ AMSTERDAM, NETHERLANDS ] Join over 300 global CEOs, investors

12-14 NOVEMBER

and heads of business for this two-day

BSR Conference 2019

event to learn how businesses can pro-

[ SAN JOSE, CA, USA ]

mote greater transparency and shape

This year marks the 27th annual BSR

the future of sustainability reporting

conference, one of the most prestigious

and communications. Speakers at this

sustainability events in the business

year’s event include Frances Way, Chief

calendar. The theme for this year’s event

Strategy Office at CDP, Rasmus Skov,

is ‘The New Climate for Business’. BSR

Head of Group Sustainability at Orsted,

speakers will include global leaders

as well as Fiona Wild, Vice President,

spanning business, sustainability and

Climate Change and Sustainability at

civil society. Last year’s event, saw

BHP Billiton.

speakers including Kate Brandt, Google Sustainability Officer at Google and Marie-Claire Daveu,

JUNE 2019

67

19–21 NOVEMBER

POWERGEN International exhibition & summit [ NEW ORLEANS, US ] With over 14,000 people attending last years’ event, POWERGEN International is a must-see summit for generators, utilities and solution-providers engaged in power generation. “The exhibit hall provides an interactive experience personalized to connect attendees with the latest technology and innovations in the conventional and renewable markets from around the world,” reads the event’s website.

“The summit and knowledge hubs deliver transformative content including disruption from conventional and emerging, clean and sustained energy sources, niche technologies and the fluctuation of economics and policy.

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USING SOURCING EXCELLENCE FR AMEWORK TO DRIVE OPER ATIONS FORWARD WRITTEN BY

SOPHIE CHAPMAN PRODUCED BY

DENITRA PRICE

JUNE 2019

69

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S P X C O R P O R AT I O N

FOR SPX TRANSFORMER SOLUTIONS, SCM STRATEGY IS ABOUT IMPLEMENTING SOURCING EXCELLENCE FRAMEWORK AND DIGITIZATION TO IMPROVE SPEND VISIBILITY AND OPERATIONAL EFFICIENCY

A 70

s a key aspect of the SPX Corporation’s value creation roadmap, strategic sourcing is expanding from a back-office function

to an integral efficiency improvement operation.

“SPX Transformer Solutions’ value creation roadmaps target operational excellence and margin expansions through continuous improvements and excellence initiatives in Engineering, Sourcing and Manufacturing,” notes Sandeep Arora, Vice President of Global Sourcing and Strategy at SPX Transformer Solutions. “In that way, strategic sourcing and supply chain management remains one of the core functions of transformer business and thereby becomes a part of the value creation roadmap for SPX Corporation as a whole.”

SPX Transformer Solutions operates medium and large power transformer manufacturing plants in Waukesha, WI and Goldsboro, NC as well as components division manufacturing Transformer Health Products® in Dallas, TX. JUNE 2019

71

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S P X C O R P O R AT I O N

Arora joined SPX Transformer Solutions in 2014 and has more than 25 years of transformer and switchgear industry experience in the Transmission and Distribution energy sector.

Arora has held positions as Managing Director at Schneider Electric’s Distribution Transformer business in the India Region, as well as VP of Business Development and Supply Chain at Schneider Electric’s US-based Distribution Transformer division. Arora has also held the position of Plant Manager at CG Power within the Medium 72

Power Transformer business in the

E X ECU T I VE P RO FI LE

Sandeep Arora Sandeep joined SPX in 2014 as VP of Global Sourcing and Strategy. From 2008 Sandeep spent 5 years with Schneider Electric, India as the Managing Director of Transformers (India region) and in 2012 moved to Schneider Electric, USA as the VP of Supply Chain & Business Development. Prior to 2008, Sandeep worked with CG Power in India and the USA for over 15 years in various roles within manufacturing, supply chain, project management, business development, M&A and Information Technology. During his 25+ years of business and operational excellence expertise he has set up and strategically grown global organization in Asia, Europe and the US region with Supply chain optimization and business development. Sandeep earned his Bachelor of Electrical Engineering and an MBA in Marketing from Nagpur University, India.

JUNE 2019

“THE SCM STRATEGY IS DRIVING OUR SUPPLY CHAIN TO BE SMOOTH AND EFFECTIVE” — Sandeep Arora, VP Global Sourcing & Strategy, SPX Transformer Solutions

73

E XE CU T I VE PRO FI LE

Brian Mason Brian joined SPX in 2015 and was appointed as an Executive Officer in 2017. Brian spent 14 years with Emerson Electric, most recently as the President of Emerson Connectivity Solutions.

He started his career with General Electric and graduated from its Manufacturing Management Program. He worked in multiple businesses with roles in engineering, operations and product leadership. Brian has obtained expertise in global manufacturing, operational excellence, M&A and business turnarounds through 25+ years of leadership experience across multiple continents and industries. Brian earned his MBA from Northwestern University and his B.S. in Electrical Engineering from Michigan Technological University.

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S P X C O R P O R AT I O N

“ I WORK CLOSELY WITH THE BUSINESS FUNCTIONS TO CREATE A CULTURE OF EXECUTING CUSTOMER SATISFACTION” — Sandeep Arora, VP Global Sourcing & Strategy, SPX Transformer Solutions

US and Deputy General Manager of Operations, Supply Chain and Projects at the same firm, working in the Large Power Transformers unit in India. He is a proven international leader skilled in flexing global operations to meet changes in customer cost and spend requirements.

Arora explains “My role is essentially to work closely with the business functions to create a culture of executing customer satisfaction, focused on cost, efficiency improvements, and supplier performance.” Arora adds, “one key step for me as a supply chain and

74

JUNE 2019

CLICK TO WATCH : ‘SPX TRANSFORMER SOLUTIONS OVERVIEW’ 75

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departments and suppliers to identify

STRATEGIC SOURCING: WHAT DOES GOOD LOOK LIKE?

the pain points and improve opera-

The Sourcing Excellence Framework

tional efficiency.” He further states that

(SEF) helps the business drive opera-

by having open conversations with key

tional efficiency and margin stability

suppliers and partners, the company

when price volatility and supply chain

has turned its supply chain into a net-

risk on commodities exist. For example,

work where information is shared in

commodities like steel and aluminum

trust to have a win-win strategy.

– mainly driven by section 232 tariffs –

sourcing leader is to meet with internal

Since 2015, the SPX Transformer Solu-

continue to be unfavorable to trans-

tions team has driven the supply chain

former original equipment manufactur-

methodology using sourcing excellence

ers (OEMs) in the US.

framework which is now well established and followed within the business.

“Since 2018, our proactive approach in implementing the Sourcing Excel-

SOURCING EXCELLENCE FRAMEWORK – “SIMPLIFY THE WAY WE WORK”

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77

S P X C O R P O R AT I O N

C O M PA N Y FACT S

At SPX Transformer Solutions we strive to improve operational efficiencies and margins through • Continuous improvement • Strategic sourcing: Risk mitigation through dual sourcing, vendor consolidation and insourcing to leverage synergies across SPX businesses • Sustainability 78

JUNE 2019

$1.5bn+ Approximate revenue

1912

Year founded

5,000+

Approximate number of employees

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79

S P X C O R P O R AT I O N

Our ‘SANDWICH CABLES’ efficiently addresses DGA (GASSING) & PD (PARTIAL DISCHARGE) issues Contact us at www.gicinsuflex.com, e-mail marketing@gicinsuflex.com or our partners in the US info@transformercomponents.com

ETOS® THE FIRST OPEN OPERATING SYSTEM FOR TRANSFORMERS

ONE SYSTEM. MANY ADVANTAGES. ETOS® (Embedded Transformer Operating System) is an open system solution for reliable monitoring, control, regulation and digitalization of power transformers.

YOUR BENEFITS AT A GLANCE • 1 system from 1 partner • Manufacturer-independent • Ability to connect third-party suppliers (sensors and data) • Open for Integration in any environment • Modular system of hardware and software • Maximum cyber security • Also available as retrofit solution • Efficient operation & maintenance of each transformer Reinhausen Manufacturing Inc. 2549 North 9th Avenue Humboldt, Tennessee 38343, USA Email: info@reinhausen.com www.reinhausen.com

JUNE 2019

81 lence Framework has helped us miti-

vendor consolidation we get better

gate some supply chain risks mainly

reliability and repeatability. Arora says:

driven by trade actions on steel and

“The sourcing excellence framework,

aluminum. This in large power trans-

as it is based on Total Cost of Owner-

formers has made US Transformer

ship (TCO), also addresses vendor

manufacturers non-competitive due

consolidation and in-sourcing, thereby

to imports coming from other regions,”

leveraging synergies across other

Arora notes.

SPX Corporation businesses. It has

The sourcing framework was put

also helped the procurement function

in place to ensure our supply chain is

to be “Future Proof” through “Balanced

smooth and effective, as it enables us to

Enforcement and Enablement”.

manage our top suppliers using 80/20

In SPX Transformer Solutions, the

rule. The 80/20 rule focuses on 80% of

latest transformation is the digitization

our overall direct spend which is man-

of its procurement operations. “With

aged by 20% of suppliers. By having

supplier spend data analytics, we’re

long-term dual sourcing contracts and

aiming to further improve supplier w w w.c so ma ga z i n e. com

S P X C O R P O R AT I O N

CLEARLY VISIBLE. DETECT THE FAULTS INSIDE YOUR TRANSFORMER. InsuLogix® Retrofittable Fault Monitor easily installs into pole and pad mount distribution transformers to provide a clearly visible external indication of when arcing occurs inside the transformer.

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JUNE 2019

83

performance on Quality, Cost and

former Solutions continuous improve-

Delivery (QCD) through digitization.

ment and performance management

We’re currently using the software

culture in terms of “what does good

interface-Qlik which talks to our

look like in sourcing” Arora collaborates

Enterprise Resource Planning (ERP)

with his peers and team members

system and other softwares for real-

by asking questions which helps the

time analysis of data. Along with

business to remain competitive:,

this, we have integrated a contract

• Do we have a long-term contract with

management tool to manage Master

our top suppliers to control 80% of

Procurement Agreements and drive

our total spend?

business process improvements” says

• Do we have a firm price contract

Arora. The mantra here is to “simplify

using the ‘should cost’ model to avoid

the way we work”.

price increase risks?

To further strengthen the SPX Trans-

• Do we have dual sourcing? w w w.c so ma ga z i n e. com

S P X C O R P O R AT I O N

• Do we have the right payment terms

elements to its approach other than

with our suppliers to support our

sourcing. “When we talk about the

operating working capital?

SCM strategy we start with sourcing,

• Do we have the right Incoterms® with our vendors?

which is made up of two parts:strategic, which includes risk mitigation

• Do we have the right inventory carrying

strategy through dual sourcing using

cost and turns ratio?

should cost model and operational,

The company’s tools address these

which includes transactional day-to-

uncertainties.

day buying,” states Arora.

The other major contributor towards our transformation is the Supply Chain

SUPPLY CHAIN MANAGEMENT STRATEGY

Management (SCM) strategy. The

“Besides sourcing, supplier manage-

SCM strategy has five intrinsic

ment is the other important piece of

84

SUPPLY CHAIN MANAGEMENT STRATEGY

“Master excellence thru repeatability” JUNE 2019

“ C ONTINUOUS IMPROVEMENT SHOULD BE EMBEDED IN THE CULTURE OF ORGANIZATION” — Sandeep Arora, VP Global Sourcing & Strategy, SPX Transformer Solutions

staff by providing carrier paths through functional development. Finally, we look at organization structure and business intelligence to get optimum benefits by aligning SCM strategy to our business strategy.

For SPX Transformer Solutions, SCM strategy is more than just a buzz word – it’s a habit that defines the business’ culture and enables continuous improvement. According to Arora to drive sourcing excellence initiatives, “continuous improvement should be embeded in the culture of organization.”

SCM strategy, in which we assess

Ultimately, the business aims to

how we qualify, evaluate and classify

improve operational efficiency, which

our suppliers. We also ensure that we

Arora claims can be achieved within

have dual sourcing in place, so that we

these three functions in an organiza-

are not caught unaware when a single

tion: one is through redesign to cost,

source supplier is no longer viable on

which is led by engineering, the other

QCD” says Arora.

is productivity improvement, which is

Then we must talk about people –

driven by manufacturing and the final

to implement any strategy, we need

one is sourcing efficiencies driven

engagement of our employees. People

through a sourcing excellence frame-

can become a major challenge if not

work. In regards to the financial impact,

involved at the right time as before in-

as Cost Of Goods Sold (COGS) is

troducing new suppliers manufacturing

the largest contributor to transformer

employees need to be ready to accept

operational cost, and therefore the big-

and manage the change effectively.

gest opportunity to improve COGS lies

For achieving this, first and foremost

in the sourcing bucket.

we need to select and upskill the right

To implement a successful SCM w w w.c so ma ga z i n e. com

85

S P X C O R P O R AT I O N

86

JUNE 2019

strategy with highest value creation, the firm has aligned a sourcing excellence framework to internal manufacturing and engineering capabilities.

Arora adds that the company’s supply chain transformation journey in 2015 would not have started without the support of suppliers and partners.

“These long-term strategic partnerships encourage SPX Transformer Solutions team and its suppliers, to focus less on immediate fluctuations in the market and more on value creation types of opportunities together outside of the daily buyer and seller arrangement. Companies committed to one another are better positioned to share the impact of price fluctuations together resulting in more stability over the long run.”

Arora concludes by echoing SPX Transformer Solutions’ President-Brian Mason’s belief, “As SPX puts its business system strategy using operational excellence in place, it aims to leverage synergies between its portfolio of products to drive company growth in an ‘efficient and organic’ way.”

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88

naked Retreats: spearheading sustainability in the Asian hospitality market WRITTEN BY

LAURA MULLAN PRODUCED BY

NATHAN HOLMES

JUNE 2019

89

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N A K E D R E T R E AT S

90

Nestled in the hilltops of Zhejiang Province, China, naked Retreats is helping guests reconnect with nature through a sustainable approach

F

or those wanting to relax, switch off their phones and reconnect with nature then

you need look no further than naked Retreats. Offering immersive local experiences in the picturesque hilltops of mainland China, the 12-year-old hospitality company has etched a unique path in the travel world. Today, naked Retreats operates two retreats in Zhejiang province, naked Stables and naked Castle, with several more in the pipeline set to take the naked

JUNE 2019

91

experience across China. The compa-

Championing what the company

ny has high aspirations: it wants to

describes as ‘wild luxury’ – where

redefine how we connect with people,

visitors enjoy nature but experience

places and nature. “We try to take

luxurious hospitality at the same time

people out of their normal routines and

– guests can be sure of a one-of-a-kind

help them switch off their minds so

experience at naked Retreats. “You

that they can reconnect with nature,”

can ride a horse, for example, or pick

explains Paul de Vreede, VP of Sustain-

tea in our tea field,” says de Vreede.

ability and Strategic Initiatives. Even

“There’s always something to do.”

the company’s name ‘naked’ alludes

Yet, whilst you’re bound to have an

to the idea of connecting with nature.

unforgettable stay, perhaps one of

“In Chinese the name is Luo Xin, which

the most distinguishable hallmarks

means ‘naked heart’,” adds de Vreede.

of the retreats is their meaningful, w w w.c so ma ga z i n e. com

N A K E D R E T R E AT S

92 sustainable vision. Whilst the company goes above and beyond to provide a memorable getaway, it does so in a pioneering fashion which isn’t detrimental to the environment. “Sustainability has been a part of our DNA since day one,” observes de Vreede.

Indeed, whether it’s reducing waste through compost and recycling or purchasing local produce, this green way of thinking is vital to the business.

Energy efficiency has always been a priority for the hospitality industry.

However, in recent years, it’s been afforded a new urgency as consumers JUNE 2019

“ We try to take people out of their normal routines and help them switch off their minds so that they can reconnect with nature” — Paul De Vreede, VP of Sustainability and Strategic Initiatives, naked Retreats

CLICK TO WATCH : ‘NAKED CASTLE AND MASARATI’ 93 have become increasingly aware of the

systems which heat the soil and rock

catastrophic nature of climate change.

underneath, turning the ground

naked Retreats has taken this chal-

below into a heat reservation ‘tank’.

lenge on since its genesis, ensuring

“We collect heat from the buildings in

that the building envelope of its

the summer, store it underground and

retreats is able to preserve energy

then we retrieve it again in the winter-

injected into the building. “The building

time,” de Vreede explains. “This means

envelope is very important,” stresses

we re-utilise 70% to 80% of the heat

de Vreede. “You can buy high-tech

we use.” Additionally, the company

heating equipment but if the heat flows

uses LED lighting and thermal solar

out of the building through the walls,

collectors in a bid to save energy.

windows or roof then it isn’t productive.

For instance, at the naked Stables

We use several techniques to ensure

retreat, PV solar panels are installed

heat transfer is minimal.” Elsewhere,

on all 30 Tree Top Villa rooftops,

the firm is using geothermal borehole

saving 374 tons of CO2 emissions. w w w.c so ma ga z i n e. com

N A K E D R E T R E AT S

94

JUNE 2019

“ We leave it in the hands of the guest to decide how much energy they want to consume and reward them if they control their consumption” — Paul De Vreede, VP of Sustainability and Strategic Initiatives, naked Retreats

It’s clear that naked Retreats has taken a forward thinking approach to its energy consumption – and it’s also getting guests involved. “With the naked Guestroom Energy Monitoring System, we allow guests to see how much energy and water they’re consuming,” notes de Vreede.

“We leave it in the hands of the guest to decide how much energy they want to consume and reward them if they control their consumption.” naked Retreats is keen to champion water efficiency and as a result, it abides by the mantra: ‘reduce, treat and reuse.’

E XE CU T I VE PRO FI LE

Paul de Vreede After more than 30 years in 5-star hotel development as a Project Director, Paul de Vreede joined naked in early 2013 when the company was still in its infancy. When de Vreede took over, he had to immediately make improvements to the most successful retreat in China. He was one of the early professionals with real hospitality experience, truly incorporating naked lifestyle, simple and sustainable, into every aspect. He has not only been critical in putting processes and systems in place to protect the company’s existing assets, he has been a true pioneer (in the naked style) in introducing cutting-edge green technologies to naked.

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“Sustainability has been a part of our DNA since day one” — Paul De Vreede, VP of Sustainability and Strategic Initiatives, naked Retreats

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CLICK TO WATCH : ‘NAKED RETREATS – STABLES’ 99 As such, a daily average of 180 tons of water is biologically treated in each retreat and fully re-used for irrigation

2007

Year founded

and flushing toilets, with the remainder being released into surrounding wetlands for ecological balance.

Sustainability not only defines operations at naked Retreats, it has also shaped the design and build of each retreat. For instance, naked Stables was the first retreat in China to be awarded LEED (Leadership in Energy and Environmental Design) Platinum status, the highest possible

700

Approximate number of employees

HQ

Loushanguan Lu, Shanghai

certification buildings can receive. w w w.c so ma ga z i n e. com

N A K E D R E T R E AT S

On top of this, the hospitality firm also uses local materials, traditional crafts and state-of-the-art construction techniques to ensure that all construction is executed in a sustainable way.

“We use materials like structurally insulated panels (SIPs) which reduces heat loss, as well as autoclaved aerated blocks,” explains de Vreede, noting how all products are chosen for their aesthetic value as well as their reduced environmental impact.

Recognising that guests may wish 100

to get from point A to point B quickly, naked Retreats has also ensured transportation is green by offering electric carts. However, de Vreede highlights that the company didn’t want to implement carts which use lead-acid batteries because they “don’t last very long and need replacing often”, which is not environmentally friendly. Instead, the firm adopted electric carts which are powered by “Ultra-Capacitors” – an eco-friendly alternative which can be fully recharged in 12 minutes and last more than 20 years without replacement or maintenance.

Developing a sustainable hospitality firm from the ground up is no easy feat; JUNE 2019

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it takes a deep understanding of the hotel world as well as a clear grasp of the complexities of sustainable design and operations. As a result, de Vreede says that the business has not only tried to employ local people who have an innate appreciation of the native environment, but it has also forged meaningful relationships with companies which share a similar vision. “We have several strong strategic partners including Jaga, who provide products like heat pumps, as well as Kohler who create water fittings, taps and showers which promote low water usage,” he says. These deep-rooted relationships have meant that every decision at naked Retreats, from the food on your plate to the retreats’ design, has been made with sustainability in mind.

The Chinese hospitality market has gone from strength to strength in recent years, and with several new properties in the pipeline, naked Retreats has cemented itself as a key player in the market – but what is the secret to the firm’s success? “I think increasingly people are looking for more of a meaningful travel experience,” reflects de Vreede. “By going w w w.c so ma ga z i n e. com

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“ By going to a green retreat, guests feel like they’re supporting the planet” — Paul De Vreede, VP of Sustainability and Strategic Initiatives, naked Retreats

JUNE 2019

105

to a green retreat, guests feel like

impact on the environment and

they’re supporting the planet. At naked

promotes maximum sustainability.

Retreats, we’re committed to recycling,

We welcome others to share this vision

energy and water efficiency and a

because it will only benefit the world.”

variety of other sustainability initiatives.

We educate people and empower them with knowledge so that they can be more aware of how they live and treat their surroundings.

“We feel we are making a contribution to the world by developing this kind of retreat – one which has a minimal w w w.c so ma ga z i n e. com

EXTERRAN:

106

TRANSFORMING THE OIL AND GAS SECTOR WITH AN INNOVATIVE SUPPLY CHAIN TRANSFORMATION WRITTEN BY

SEAN GALEA-PACE PRODUCED BY

GLEN WHITE

JUNE 2019

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EXTERRAN

Suraj Devadiga, Director of Supply Chain of Middle East & Asia at Exterran, discusses how his company is beginning to digitise its services in the oil and gas sector.

F

or manufacturers today, digitisation is vital if they want to remain one step ahead of the competition and perhaps nowhere

can this be seen better than in the oil and gas industry.

Regarded as a proactive solutions provider to a 108

range of global and regional oil and gas customers, Exterran is now embarking on the first phase of its digital transformation plan. Suraj Devadiga, Director of Supply Chain of Middle East & Asia at Exterran, highlights how the company’s procurement function has become a key part of Exterran’s operations. “In the past, procurement used to be where purchase orders were made. The company would say ‘I need this, go and buy it’ and it would be the job of purchasing to buy and provide it,” explains Devadiga. “What’s different now is that we ask lots of questions to drive value. Are we buying at the best price and is it in our plan? If so, are we buying it from suppliers who are qualified? Is this supplier consistent? Are we going to create a museum of suppliers and then end up having to spend more on maintaining parts and services? It’s JUNE 2019

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Project management Praj’s project management team consists of qualified, experienced and PMI certified professionals well versed with the global standards and practices.

Engineering Engineering is the backbone of Praj’sintegrated offerings.

More than 70% of the employee strength consists of engineers of various disciplines – Chemical, Mechanical, Civil & Structural, Electrical & Instrumentation etc. Praj has successfully leveraged their capability to provide modular solution to range of industries.

www.praj.net

Over the last few years, Praj has successfully supplied M industries such as Oil&Gas, Refineries, PetroChemicals and C engineering capability for designing modules and equipment clients and till date we have reference base in more than 75 been appreciated by our global clients. Leveraging our man highly price competitive solutions to the industry. Praj with more challenging projects in spirit of partnership with custo

Manufacturing Praj’s business lines are supported by its world-class manufacturing infrastructure. Praj has 4 manufacturing facilities in India. All the facilities have the capability to manufacture equipment in compliance with the most stringent requirements of various countries across the globe.

All the facilities are accredited with ASME U&U2 stamps and have also successfully manufactured equipment with CE, EN, GOST, DOSH certifications etc.

Supply Chain Management A strong backbone of SCM team supports the complexities involved in Praj’s business. With around 50 qualified professionals, the team handles procurement of over 100 categories of commodities, metals, equipment, electrical, automation, piping, structural, rotary equipment like pumps and compressors.

Modular Plants and Static Equipment to various process Chemical industries.This is enabled by our multi-disciplinary t. Our team has very good experience of working with global 5 countries. The quality systems are world-class and have nufacturing locations in India, we have been able to provide h its demonstrated capabilities is geared-up to take-up far omers.

FIND OUT MORE HERE

EXTERRAN

important to figure out exactly what we’re enabling.”

IMPLEMENTING DIGITISATION Having previously worked in India at General Electric Oil & Gas in a variety of different roles such as Senior Product Manager, Business Manager and then Head of Supply Chain Integration, Devadiga is well-positioned to oversee the beginning of Exterran’s digital transformation as it begins to digitise its operations. “We’re in the process of digitising our supply 112

chain operations in order to implement the same ERP globally and we’re also introducing the necessary digitisation platforms to enable engineering teams to work seamlessly across our locations in Houston, the UAE and Singapore. It also allows us to connect with the supply chain team which, similarly, is on a platform that allows us to collaborate as a global supply chain organisation,” he explains. “We’re very much in the nascent stages of digitisation and I believe our approach of low investment, high return is vital.”

“At our current stage of digitisation, we have invested in two key things.

Firstly, we have remote monitoring and JUNE 2019

“ We’re very much in the nascent stages of digitisation and I believe our approach of low investment, high return is vital” — Suraj Devadiga Director of Supply Chain MEA & APAC Exterran

diagnostics equipment that allows us to collect, collate, synthesise and then analyse information from equipment across various sites worldwide. Once we have refined our operations in one area, we can then implement this approach across our various locations which have the same operating dataset,” he says. “Digitisation is also enabling to us reduce our operating expenditure and better manage our finances.”

Devadiga believes the transition of three enterprise resource planning (ERP) systems to two has been key to his company as it looks to implement phase one of its digital transformation.

“In the third quarter, we’re targeting for all our pilots to be completed and launched to the platforms. We must be very judicious, take the feedback and refine it because you need a strategically significant dataset,” says Devadiga. “One of the big hurdles has been that we don’t have a contract operations site in the US where we just sell products.

However, in terms of the rest of the world, we have more of a 360- degree solution approach because we don’t just sell products but we also build, own, operate, and maintain them over five to 10 years. Ultimately, it’s the big global w w w.c so ma ga z i n e. com

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Handle the Pressure We know you’re no stranger to pressure. At Atlas Copco Gas and Process, we strive to transform industrial ideas into solutions that help you thrive under pressure. That’s why Exterran has trusted Atlas Copco Gas and Process for over a decade to supply the critical turbomachinery they need. With solutions developed to ensure on-time completion of gas processing plants across the globe, we are a connected, accessible partner when the pressure is on and delivery timelines are tight.

Working with Atlas Copco Gas and Process ensures that you have a partner every step of the way, helping you handle today’s pressures while creating a sustainable future.

Find out how Atlas Copco Gas and Process can help you handle the pressure at atlascopco-gap.com

CLICK TO WATCH : ‘EXTERRAN OVERVIEW’ 115 sites in Argentina, Oman and Thailand

During the past year, our Middle East

where the first phase of our digital

operations in Oman and Bahrain as

transformation plan will be launched.”

well as our manufacturing facility in the UAE and Dubai are all on Oracle. But,

FORMING KEY PARTNERSHIPS

Pakistan, Nigeria, Thailand, Indonesia

Exterran has begun to work with

and the entire Asia-Pacific region still

Oracle across all its sites in North

use Sage Accpac as an ERP. That’s

America and Latin America. Through

why we’re rolling out these pilots only in

the company’s collaboration with

the Oracle ERP areas.”

Oracle, Devadiga believes his company

The importance of establishing and

has utilised ERP to introduce pilots

maintaining key partnerships is

successfully. “In the western hemi-

fundamental to all successful busi-

sphere, all our sites in places such as

nesses. Exterran has collaborated with

North America and Latin America with

industry leaders such as General

the exception of Peru are on Oracle.

Electric, Ariel Compressors, Caterpillar w w w.c so ma ga z i n e. com

Intelligence Automation

Solutions for the Oil & Gas Industry Visit us at: www.intechww.com

USA

UAE

Saudi Arabia

LEARN MORE

Nigeria

Singapore

Pakistan

Agencies in:

Kuwait

Oman

Kazakhstan Qatar

Peru

North Africa

Angola

China

Indonesia

“ It’s up to us to select the compressor that Ariel may be manufacturing and marry it to the engine that Caterpillar might be manufacturing” — Suraj Devadiga Director of Supply Chain MEA & APAC Exterran

117

Engines and Atlas Copco. Devadiga

However, these two units don’t do

affirms that a good working relation-

anything by themselves. The engine

ship with partners is vital to success.

and compressor must be together

“Our partners are extremely impor-

and installed with the associated

tant,” he says. “From our perspective,

piping and other components in a

there’s a very high degree of depend-

manner that fulfils the purpose for

ency on these original equipment

which that compressor has been

manufacturers (OEMs). We need

designed. That capability exists with

them to value our association as a

us because we develop the solution in

delivery model for their products into

order to process and treat that gas.

the oil and gas industry because

It’s up to us to select the compressor

we’re packagers of their machines

that Ariel may be manufacturing and

and we buy the engine and compres-

marry it to the engine that Caterpillar

sor from the engine manufacturer.

might be manufacturing.” w w w.c so ma ga z i n e. com

EXTERRAN

“ Ultimately, it’s the big global sites in Argentina, Oman and Thailand where the first phase of our digital transformation plan will be launched” — Suraj Devadiga Director of Supply Chain MEA & APAC Exterran

The bigger the challenge, the greater our energy CHTR

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LOOKING TO THE FUTURE

explains Devadiga. “We’re in the first

Looking forward, Exterran is set to

stage of collecting data and transform-

remain acutely focused on its digital

ing that data into information. But if we

transformation strategy. Valuing a

can implement tools where the informa-

mentality of “knowledge is power”,

tion can be gleaned from the data and

Devadiga believes it’s important to

made available to managers both at a

remain vigilant when gathering data in

high and mid-level, it will create a

the digital space. “We can’t improve

knowledge base that will allow us to

when we don’t know what we need

scale up from being this $1-3bn

improve on. The journey to knowledge

company and hit the $5bn mark. That

starts with three simple words which

has to be the goal.”

are extremely difficult for most people to say: ‘I don’t know’. But the moment we admit that we don’t know, that’s when we can start our journey,” w w w.c so ma ga z i n e. com

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