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
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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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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
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
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
w w w.c so ma ga z i n e. com
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’.
w w w.c so ma ga z i n e. com
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
w w w.c so ma ga z i n e. com
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
w w w.c so ma ga z i n e. com
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.
w w w.c so ma ga z i n e. com
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
T O P 10
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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.”
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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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T O P 10
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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�.
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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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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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T O P 10
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”.
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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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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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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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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. • • • •
Mitigates field personnel risk Reduces outage time Retrofittable – no redesign or opening of tank Maintenance free
IMPROVING YOUR TRANSFORMERS www.weidmann-electrical.com
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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:
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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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