Sustainability Magazine - July 2021 by Energy Digital

July 2021 | sustainabilitymag.com

Home truths

Insights from NAVEX Global’s Environmental, Social and Governance Survey

The vaccine Sustainability in a syringe

Supply chains and diverse bases EcoVadis and Jaggaer deliver a masterclass

CSOs to watch 2021

“ “ “ CAN CHANGE SUPPLY CHAINS

“““

THE WORLD

IBM’s Sheri Hinish on sustainability through technology that’s also good for business FEATURING:

NETZERO CHEM INDUSTRY

HSBC

SCHNEIDER ELECTRIC

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Over 5 Stages:

Main Stage Procurement Stage Supply Chain Stage Sustainability Stage Tech Expo Stage

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The Sustainability Team EDITOR-IN-CHIEF

JOHN PINCHING DEPUTY EDITORS

HELEN ADAMS EDITORIAL DIRECTOR

SCOTT BIRCH

PRODUCTION DIRECTORS

GEORGIA ALLEN DANIELA KIANICKOVÁ PRODUCTION MANAGERS

OWEN MARTIN PHILLINE VICENTE JENNIFER SMITH

PRODUCTION EDITOR

JANET BRICE CREATIVE TEAM

OSCAR HATHAWAY SOPHIE-ANN PINNELL HECTOR PENROSE SAM HUBBARD MIMI GUNN JUSTIN SMITH REBEKAH BIRLESON DUKE WEATHERILL JORDAN WOOD VIDEO PRODUCTION MANAGER

KIERAN WAITE

DIGITAL VIDEO PRODUCERS

MEDIA SALES DIRECTORS

MOTION DESIGNER

MANAGING DIRECTOR

SAM KEMP EVELYN HUANG

TYLER LIVINGSTONE MARKETING DIRECTOR

ROSS GARRIGAN

MARKETING MANAGER

GRETA ANDREJEVAITE PROJECT DIRECTORS

MARK CAWSTON MATE MESZAROS

JASON WESTGATE MARK CAWSTON LEWIS VAUGHAN

EXECUTIVE ASSITANT

JORDAN HUBBARD CHIEF OPERATIONS OFFICER

STACY NORMAN PRESIDENT & CEO

GLEN WHITE

FOREWORD

Story of our times Hi folks – I’m John. I have a long history of reporting on this sector, from the corridors of Westminster to the institutions of academic research. In the past 15 years, it has been discombobulating to witness this subject go from a laminated sign niche to the agendasetting phenomenon of today.

“Make no mistake, we are at a cultural precipice in the history of civilisation and, for its part, this publication is duty bound to build a relationship with you, the reader. And, needless to say, I am determined to sustain it”

SUSTAINABILITY MAGAZINE IS PUBLISHED BY

I am delighted to be at the helm of Sustainability Magazine – a publication with a clear objective and, above all, a tremendous opportunity to guide, engage and inspire. After all, sustainability is a vibe which flows through every facet of our lives, impacting on the functionality of organisations, reforming our social infrastructures and influencing every human being on the planet – quite literally. As we continue to wrestle with the international pandemic it is, perhaps, ironic that the ‘Promised Land’ of sustainability has been brought into much sharper focus, and the need to get there, more urgent. Verily, the last year or so has been the definition of a collective awakening. To be sustainable has become an all-encompassing design for life; an essential commitment to embrace change and a conscious cultural shift which will ultimately propel us, we hope, into a certain future. Diversity, equality, mental health, corporate responsibility and economic parity are now the de facto plot points as we navigate the new terrain. In our workplaces, it is not about tolerance or box ticking anymore, but positive transformation and better performance through genuine inclusion. Make no mistake, we are at a cultural precipice in the history of civilisation and, for its part, this publication is duty bound to build a relationship with you, the reader. And, needless to say, I am determined to sustain it.

JOHN PINCHING

john.pinching@bizclikmedia.com

sustainabilitymag.com

CONTENTS

Our Regular Upfront Section: 10 Big Picture 12 The Brief 14 Global News 16 People Moves 18 Timeline: Drivetime 20 Legend: Jack Ma 22 Five Mins With: Zabeen Mirza

34 ESG

NAVEX Global on the Results of Worldwide Environmental, Social and Governance Survey

Walking the sustainability talk: IBM champion Sheri Hinish

HSBC: Putting Sustainability at the Heart of Global Finance

Sustainability

HSBC

Net Zero

The Chemical Industry is Ready for net-zero

Renewable Energy

The Sun Never Sets for Solar Power

atNorth

Foregrounding sustainability in modern colocation data centres

Ark Data Centres

Setting the tone for socially responsible data centres

108

Sustainable Sourcing

ECOVADIS and Jaggaer On Supply Chain Sustainability, Risk, and Diversity

CREATING BUSINESS VALUE THROUGH SUSTAINABLE ENERGY Ensuring you have the best partner at your side.

enelgreenpower.com

116

Schneider Electric

Leads sustainability change

126

Sustainability and the vaccine

Golden shot: Vaccines are the ultimate injection of sustainability

136 Top 10 CSOs

BIG PICTURE

July 2021

Bean scene Serbia

Ah, coffee shops – making three-hour meetings bearable since 1952. But they’re also an annual sprewer of 16,000,000,000 single-use cups (in the US alone). Change is happening, however, with many shops inviting patrons to fill their own vessels. The hipsters in this pic crystalise a general shift towards respect for the art of coffee, rather than the artifice. On that note, rejecting disposable containers must continue apace, after all, it's never too 'latte' to change.

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THE BRIEF “New things are expensive. We want to scale up so that the cost comes down, and in this economy, sustainability is fashionable” Tom van Aken

Chief Executive Officer, Avantium  READ MORE

BY THE NUMBERS 58%

A survey by clean manufacturing leader Genomatica asked consumers about sustainably sourced fashion

31%

of consumers care about the materials that make their clothes and whether they are harmful to the planet

would support a “fast fashion tax” on clothing that’s unsustainable

“The value that comes from an employer supporting diversity and inclusion is one of trust and acceptance” Karen Alonardo

Vice President of ESG Solutions at NAVEX Global 

“We help our mutual customers take responsibility for their suppliers’ sustainability practices. When the network works together, we’re able to drive change” Jim Bureau

CEO of JAGGAER  READ MORE

July 2021

Banking on a sustainable future

Financial services giant HSBC serves over 40 million customers worldwide but takes its commitment to sustainability just as seriously. READ MORE

A chat with IBM’s Sheri Hinish

The irrepressible ‘Supply Chain Queen’ talks about her motivations, ambitions, experiences of diversity and the future of corporate sustainability. READ MORE

5 minutes with Zabeen Mirza

“If everybody is the same in your business, you have no innovation and you cannot solve problems. Through diversity, you are going to have a rich mix.” READ MORE

 THE VALUABLE 500 1.3 billion people live with a disability and many are ignored by employers. 500 national and multinational, private sector corporations have signed up to table, disability, on the board agenda.

A shot at glory Make no mistake, the COVID-19 vaccine is the greatest sustainability milestone in human history. After all, it is enabling us to continue as a species, interact with our fellow homosapiens and – mercifully – return in great numbers to the pub. It is also a reminder that sustainability has gone from a fashionable fad, some 15 years ago, to an agenda-topping priority for organisations across the globe. The vaccine discovery and roll out is, ultimately, a stark reminder to CSOs about the post-COVID world and how emerging from the international pandemic will write another chapter in corporate history and, indeed, the employee handbook. As we emerge from the coronavirus, the business ecosystem has an opportunity to regroup, reboot and recommit to sustainable principles, while also embracing a diverse and inclusive workforce. Our story on ‘sustainability and the vaccine’ crystallises the challenges ahead and looks forward to a future of distinct possibilities.

 UNITED AIRLINES, CONCORDE By 2029, the supersonic aircraft will be back, taking passengers from London to New York in 3.5 hours. The plane will be designed to run entirely on sustainable fuel and produce net-zero carbon emissions.  NETFLIX Netflix and who? After a year of lockdown binging, the platform has stalled in its delivery of new content, leaving viewers restless. Subscribers have dropped by 31% and new content is limited owing to lockdown filming restrictions.  SAUDI ARAMCO Saudi Aramco, the most profitable oil company in the world, remains one of the biggest CO2 contributors. Energy Minister Prince Abdulaziz bin Salman claimed the International Energy Agency's net-zero world map was “The sequel to La La Land”.

W A Y U P

JULY21

W A Y D O W N

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GLOBAL NEWS 3

USA

Verizon launches Disability Advisory Board More than one billion people live with a visible or invisible disability. Communications technology company Verizon has created a Disability Advisory Board, whose members will make recommendations to Verizon on how they can become more inclusive for present and future employees.

BRAZIL

Supermarkets stand up for sustainable sourcing In 2020, The Retail Soy Group wrote an open letter to the National Congress of Brazil, opposing similar land reform proposals. The letter was signed by a wide variety of food retailers and restaurants, including Burger King, Nandos and Ocado. As a result, the proposal was withdrawn.

July 2021

THE NETHERLANDS

Shell Shocked by court ruling A court in the Hague has reprimanded oil giant Royal Dutch Shell and ordered the company to cut its global carbon emissions by 45% before 2030. Shell has previously announced a net-zero emissions target for 2050. The company will appeal the court order.

DJIBOUTI

Siemens Gamesa brings renewable energy to Africa Wind power solutions specialists, Siemens Gamesa, have announced the construction of a new 59MW wind farm in Djibouti. The 17 wind turbines will massively reduce the cost of electricity for locals, encourage further renewable energy development and reduce Djibouti’s overall CO2 emissions.

NEW ZEALAND

Three days paid miscarriage leave The government in New Zealand will allow those who have suffered an early stage pregnancy loss three days of paid leave from work, to recover physically and mentally. This is expanded to every type of family - not just heterosexual parents.

OMAN

Climeworks and 44.01 to unlock CO2 storage potential in Oman Climeworks, a Swiss startup which developed a machine to capture CO2, has partnered with 44.01, an Omani company, to safely develop geological CO2 repositories. Air capture and storage technology will help to restore a healthy balance of CO2 in the atmosphere.

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PEOPLE MOVES DR NICOLA ROBINSON FROM: MCDONALDS TO: KP SNACKS WAS: DIRECTOR, GLOBAL SUSTAINABLE SOURCING NOW: HEAD OF SUSTAINABILITY Nicola has been a trailblazer in the arena of sustainability for many years, particularly with her work at McDonald’s. During her time at the fast food giant, she chaired the Sustainable Agricultural Initiative (SAI) and led the pioneering move to greater beef sustainability. She has now taken her skills to a UK-based company with major reform in its sights. Indeed, this role has been newly created by KP Snacks. Crisps – from the inside out – are the ultimate ‘guilty pleasure’, while most of the unpleasant plastic packaging remains entirely unrecyclable. It’s crunch time for the industry, but a seasoned sustainability presence like Nicola will relish the challenge.

July 2021

“My new role is a strong signal of the importance KP Snacks will be placing on their sustainability performance. There is already a significant amount of impactful sustainability work embedded throughout the business, and I’m looking forward to building on this, so that people can continue to enjoy snacks that not only taste great, but also do good, long into the future”

DANIEL VENNARD FROM: WORLD RESOURCES INSTITUTE TO: SYNGENTA GROUP WAS: GLOBAL DIRECTOR NOW: CHIEF SUSTAINABILITY OFFICER While at the World Resources Institute Daniel founded the Better Buying Lab and Cool Food initiative, while also overseeing behavioural science practices. Based in Basel, Switzerland, Daniel’s new position will involve galvanising efforts to assist farmers in practicing regenerative agriculture. He will also be responsible for implementing Syngenta Group’s sustainability and net-zero goals.

DR NICOLA KIMM FROM: SIGNIFY TO: HEIDELBERGCEMENT WAS: CHIEF SUSTAINABILITY OFFICER NOW: CHIEF SUSTAINABILITY OFFICER A renowned sustainability expert, trained ecologist and chemical engineer, Nicola has held sustainability roles within BASF, Corbion/ CSM and Philips, while also working in Europe, Asia and the Americas. Her new position will be ‘cemented’ within the vital sustainability sectors of Environment Social Governance, Global Research & Development and New Technologies.

sustainabilitymag.com

TIMELINE DRIVETIME

In relative terms, the history of the motorcar is surprisingly short. The impact of cars during 145 years, however, has been spectacularly transformative and relentlessly controversial. The car is an invention that has brought freedom for consumers and businesses but – equally – doubts linger about the sustainability of man’s second best friend.

1866

1920s

1970s

INVENTING THE WHEELS

DRIVERS OF CHANGE

FORK IN THE ROAD

The blueprint for a superefficient, on-demand transport system could only have been created by a German – in this case, Karl Benz. A motoring luminary, his unique Benz Patent-Motorwagen vehicle accelerated industrialisation across the globe and started an enduring love affair between humans and cars.

During the post-war recovery period – especially in the developed world – cars became much more commonplace. Experienced manufacturers, including Ford, Peugeot and Renault rapidly evolved, by opening factories and exponentially increasing their output to meet demand. Cars were mainly, however, playthings of the elite.

As the sixties ended, the permissive society was transcending traditional class barriers, and carownership became possible, regardless of background. Ford set the benchmark for marketing savvy by offering a range that appeared to suit every personality. The Cortina, Escort, Fiesta and Sierra, thus became icons of the road and, often, members of the family.

July 2021

198689

1996

EXHAUSTED

ELECTRIC AVENUE

Even though Japan had banned leaded petroleum back in 1972, a global awakening to the widespread pollution it caused didn’t happen until the dawn of the eighties. By 1986, using unleaded petrol became a status symbol; a fledgling example of espousing your ‘green credentials’. Finally, in 1989, leaded petrol was banned in the UK and much of Europe.

The EV1 was arguably the first genuine electric car. While it provided a pivotal moment in terms of highlighting sustainability, ironically the expensive production meant manufacturing could not be sustained. Smart cars carried the baton for years, but were clunky and largely ridiculed. Mercifully, cool electric cars are now emerging, with the usual ‘affordable’ names involved, but also Porsche, Lamborghini and Ferrari. sustainabilitymag.com

LEGEND

Jack Ma Job Title: Co-founder and former CEO Company: E-commerce company Alibaba The underdog billionaire Jack Ma was rejected by Harvard ten times and went on to become the third richest man in China

veryone likes a rags to riches story − the underdog who wins, an unlikely, worthy winner who has sweat for their success. After telling the World Economic Forum “If you want to change the world change yourself”, Jack Ma was a clear winner of Sustainability’s issue one legend. Born in 1964 in the city of Hangzhou, China, Ma developed a skill for the English language, which he practised with tourists, but struggled with mathematics. This caused Ma to fail his Hangzhou Teachers College entrance exam twice. Ma secured his bachelor’s degree in English in 1988. Ma taught English for a few years and then decided to set up his first company, Haibo Translation Agency (now known as Hangzhou Hope Translation Agency), in 1994, which offers to “work hand in hand for a brighter future” with customers. Ma’s life changing trip to the USA During a trip to the USA in 1995, Ma discovered the internet and decided to take this technology back to China. After a series of internet ventures, both in Beijing and in Hangzhou, Ma

July 2021

Jack Ma was rejected from Harvard ten times. He failed his university entrance exam three times. In 2021, Ma became the third wealthiest person in China, with a net-worth of

$51bn

eventually sourced the perfect team to found the Alibaba Group. Initially Alibaba Group was designed to help small businesses find other small businesses, who for a small membership fee would be able to sell and buy. In 2005, Yahoo bought a 40% stake in Alibaba Group and Ma was officially a legend. “We want to make sure that our ecosystem has the small guys. Anything that will help small businesses grow, we will consider”, Jack Ma told Bloomberg QuickTake, after laughing off the suggestion of buying Yahoo. Ma set up Alipay in 2003 to assist in third party transactions and Ant Group in 2014 to facilitate Alipay and other financial groups. Ma’s life changing trip to the USA In 2016, Ma was appointed UN Sustainable Development Goals Advocate. Alongside other international influential figures, such as Iraqi Nobel Peace Prize winner, Nadia Murad, the advocates are tasked to increase awareness on sustainable topics and to help reach the targets world leaders set upon in 2015, primarily to alleviate poverty. Ma got to work on this in 2019, by setting up the television programme Africa's Business Heroes, which aims to celebrate African entrepreneurs and to build an inclusive economy. Ma has pledged $100m over a decade to support talented African entrepreneurs. Ma remains a keen learner, musician and Tai Chi enthusiast.

“It’s my job to make my team happy. If my team are happy they can make my customers happy” Jack Ma, World Economic Forum

5MINS WITH...

ZABEEN MIRZA At six months pregnant, Zabeen Mirza’s employer said they could not afford to keep her. Zabeen, founder of Jobs.Mom decided she would be the last woman to be treated this way.

Q. CAN YOU TELL US ABOUT YOURSELF?

» “I was born and raised in New York.

I live here, with my three children and my husband. “I worked in Wall Street in finance − when I joined, I was the youngest woman and only woman of colour. There’s this saying: “You cannot be what you cannot see.” If you don’t have role models, you think that maybe it’s something you cannot do. There was a level that my colleagues could not always understand. “Later, I was a professional negotiator, then Covid-19 hit and I was let go. I said I would be the last woman that this happens to.”

Q. TELL US ABOUT JOBS.MOM

» “At Jobs.Mom we offer support,

read through resumes and offer advice for women who are thinking: “What do I do on day one? How do I deal with conflict?” We offer useful, practical, applicable advice. Every article on our website is a one to five minute read maximum.”

“If you don’t have role models, you think that maybe it’s something you cannot do” 22

July 2021

Q. DO YOU FEEL WORKING MOMS ARE DISCRIMINATED AGAINST?

» “If everybody is exactly the same in

your business, you have no innovation and you cannot solve problems. Gay people, black people, people who are disabled... Moms. Through diversity, you are going to have such a rich mix.”

“If a woman wants to work, there must be a place for her” Q. WHAT FEEDBACK HAVE YOU RECEIVED?

» “We have had an outpouring of

support − this is a critical need we are filling. If a woman wants to work there must be a place for her.”

Q. HOW HAS THE PANDEMIC IMPACTED YOUR PERSONAL WORK/LIFE BALANCE?

» “I think Covid-19 has humanised

people. A dog barking, kids crying in the background of a video call... I made the decision to not apologise for that.”

Due to parental responsibilities,

23%

of working mothers say they have had to reject a promotion. Mums are

40%

more likely to claim that problems with childcare have damaged their careers, than dads.

Q. WHAT ADVICE DO YOU HAVE FOR WORKING MOMS OR MOMSTO-BE WHO ARE JOB HUNTING?

» “Be deliberate and targeted. Have

a plan and targets. Stick at it and don’t take things personally, you will get rejected. Stay at it and of course, use Jobs.Mom.”

Q. WHAT WOULD YOU TELL AN EMPLOYER WHO IS HESITANT ABOUT EMPLOYING SUCH WOMEN?

» “You are putting your company at a distinct disadvantage.”

sustainabilitymag.com

Bringing the Community to LIVE Broadcast from London to the World

September

28th - 30th 2021 A BizClik Media Group Brand

Featuring:

Keynote Speakers LIVE Roundtable Q&As Networking Lunch Inspirational Presentations

Over 5 Stages:

Main Stage Procurement Stage Supply Chain Stage Sustainability Stage Tech Expo Stage

EARLY BIRD TICKETS

Creating Digital Communities

July 2021

SUSTAINABILITY

WALKING THE

SUSTAINABILITY TALK:

IBM CHAMPION SHERI HINISH Sheri Hinish, IBM’s Sustainable Supply Chain guru, on how technology can make the world a better place – with sustainability that’s also good for business WRITTEN BY: SCOTT BIRCH

ou can’t fail to notice Sheri Hinish. Whether it’s hosting her own podcast, making guest appearances on shows as the self-monikered Supply Chain Queen, gracing magazine front covers, or making keynote speeches at industry events – brand Hinish is ubiquitous. That’s good news for IBM, where she holds a convoluted title that encapsulates her multifaceted role, and better news for sustainability aficionados everywhere. Having recently graduated from Harvard with a Masters in Sustainability, Hinish is a rarity to be cherished and championed – a senior executive who walks the sustainability talk. A poster person for diversity, equity and inclusion. A worthy cover star for our launch issue of Sustainability magazine. sustainabilitymag.com

SUSTAINABILITY

Sheri shares exclusive insights on her career, what drives her, and how sustainability is good for business. Q. Tell us about your career journey before arriving at IBM, which spans almost 15 years in supply chain? I have a non-traditional career path that started prior to finding supply chain, which is actually a third (or fourth) career in my journey. I was an artist and a musician, then an entrepreneur and found my way into IT and supply chain when I was in the wholesale distribution of wine and spirits. I actually wanted to be a lawyer and at one point thought I’d run for President of the United States!? I’ve done many different things that now come together in a perfect Venn diagram, but there was no string theory in my career. I was curious and when I wanted to learn more about a topic or simplify a complex problem, I just jumped in. I transitioned to supply chain consulting and worked with IBM independently before accepting a senior executive role leading the global sustainable supply chain and circularity offerings. You joined IBM full time in December 2020 with the title Global Partner and Offering Leader, Sustainable Supply Chain + Green Omni-Channel Supply Chain. Was that a reflection of the growing attention on sustainability? Yes, the focus on building responsible, equitable and sustainable supply chains has grown exponentially. There has been such a demand from our clients that I’ve moved into another role across IBM’s Supply Chain and Finance Transformation organisation leading the global sustainable supply chain practice across the centres of competency and ecosystem partnerships like SAP, Oracle, and Kinaxis.

“ It’s an amazing feeling to wake up each morning and do exactly what you’re meant to do on this earth” SHERI R. HINISH

IBM GLOBAL PARTNER AND OFFERING LEADER, SUSTAINABLE SUPPLY CHAIN

Pressures from consumers, trading partners, and investors are mounting where disclosures on carbon, climate, packaging, ethical trade, and so much more are no longer a nice to have but a regulated business requirement. IBM has been a champion for diversity and inclusion and as an environmental steward in technology and services for over 50 years. So when I decided to transition back to industry from independent advisory, there was an alignment of values and purpose, supported by IBM’s deep research and technology that created a natural fit for what I wanted to do most – make an impact building sustainable supply chains in the world we share.

SUSTAINABILITY

5 ways IBM helps companies with sustainability Sustainability and thinking beyond net-zero to reimagining how we design, build, and operate is necessary for businesses to thrive over the next 30 years. Here’s some of the ways IBM can help: 1. A multi-enterprise business network that allows you to quickly engage with 800,000 preconnected trading partners. 2. An intelligent fulfillment platform capable of performing reverse logistics, reducing waste and environmental impact of returned goods.

It’s an amazing feeling to wake up each morning and do exactly what you’re meant to do on this earth and sharing this excitement with clients, partners, and other IBMers has been a bright spot coming out of COVID lockdowns. Q. You wear many hats, from Supply Chain Queen to Supply Chain Revolution podcast host – how do you balance these? And how do you describe yourself to a stranger? I feel very blessed and fortunate that I’ve found my ikigai [direction and purpose]. Looking back, the desire to do good and make the world better was always there,

3. Eco-friendly shipping options with an AI-empowered analytic engine for order management systems. 4. A control tower that provides end-toend visibility of inventory to make more informed decisions, reduce waste and optimise outcomes. 5. A blockchain platform to build your own ecosystem with trusted supply chain partners and authenticate the origin, sustainability and integrity of products as they travel through the value chain. sustainabilitymag.com

SUSTAINABILITY

but it wasn’t until the interconnectedness of supply chain and sustainable development that it made sense to me. The Supply Chain Queen brand is a bit tongue-in-cheek. I’m more of a rebel and it was a nickname given to me because I was able to be a bridge in really difficult transformations. The podcast has been an amazing opportunity to marry my former career as an artist and musician with my love for all things sustainability, circularity, innovation, diversity, and supply chain. There is freedom of expression, a more creative side of me, that the podcast and SCQ brand provide. From the creative content and videos shared, each picture, edit, and asset is made with care and love 30

July 2021

Sheri Speaks, Leaders Listen Hear SupplyChainQueen Sheri Hinish deliver an exclusive session at Procurement & Supply Chain LIVE taking place 28-30 September 2021. This virtual conference sees Sheri taking the stage alongside other thought leaders and industry influencers, including David Loseby and Ninian Wilson. REGISTER NOW

SUSTAINABILITY

“ I actually wanted to be a lawyer and at one point thought I’d run for President of the United States!?” SHERI R. HINISH

IBM GLOBAL PARTNER AND OFFERING LEADER, SUSTAINABLE SUPPLY CHAIN

by me. When I first started the professional brand, it was to stand out and share my unique value proposition and PoV, and maybe even land my dream job. After about two years, it changed and I realised how much of an impact sharing on social media can have – from education and awareness to shaping the future of our domain, how we challenge, lead, and design a better world. I still struggle with unplugging and drawing firm boundaries, frankly because I don’t see them. I love what I do and it shows up in all things, every touchpoint and interaction with the world. A personal goal for 2021 has been practicing self-care and prioritising time for myself. As a change

agent and a mother of three, I’m often last on the list and the pandemic has highlighted that without making time for personal care, it takes a toll on you. When I meet folks, I normally describe myself as an eternal student, because I read two to three hours a day about new and emerging topics and push myself to go to the edge exploring new concepts. I’m constantly learning from my kids, my colleagues, clients, students, and folks in my network who also challenge conventional thinking. Q. You state that your purpose is to “make a meaningful impact for the clients, colleagues, partners, and communities I serve” – how do you do that? I fundamentally believe that supply chains can change the world and the power of purpose can be transformational, both through the lens of business imperatives and how we meet the world through design, innovation, leadership, and stewardship. A meaningful impact means listening and learning, not having the answers, not being prescriptive. If you want to influence changed behaviour for a sustainable, equitable, and responsible world, this means that a ton of folks have to cooperate at scale and I’ve found that listening and finding common ground is an underrated skill in this space. How do I start? First, walking the talk in my own life and leading with purpose and empathy, using the sustainable development goals as a roadmap for supply chains. I’m president of my community homeowners association. I volunteer through giveback opportunities in supply chain education and am super active in industry events and thought leadership opportunities, advocating for a better way. Whether through strategy, design, product innovation, leadership sustainabilitymag.com

SUSTAINABILITY

July 2021

SUSTAINABILITY

“My children have been my inspiration throughout this journey. When 2030 arrives and we have a conversation without words, I want them to know that I did everything I could to make a difference” SHERI R. HINISH

IBM GLOBAL PARTNER AND OFFERING LEADER, SUSTAINABLE SUPPLY CHAIN

advisory, or sharing across digital networks, I impact lives at the intersections of all these touchpoints. Q. You just graduated with a Masters in Sustainability from Harvard, that must have been an incredible challenge? What was the hardest part? It has been an amazing experience to learn with incredibly talented folks who wake up with the same pulse to change the world. The most interesting revelation is no matter how much you learn, you realise there is so much learning left to harvest. It’s leading sustainable transformation that leaves no one behind, making the change inclusive for everyone… that’s the hardest in design and adoption. After graduating in late May, I miss the structure and being challenged intellectually. Working full time with kids and going to graduate school – for the second time – really pushes you. You must want it and prioritise research, prioritise learning, else it unravels quickly. My children have been my inspiration throughout this journey. When 2030 arrives and we have a conversation without words, I want them to know that I did everything I could to make a difference.

HINISH ON IBM “IBM isn’t blue shirts and khakis anymore. It’s ushering in new collar stewards and STEM professionals. IBMers are fundamentally good people and super smart. In the past, I haven’t always felt supported and championed, part of something much larger at work. I have found that here. “It’s an iconic brand that has been around for over 100 years, and is constantly evolving, reinventing itself. IBM’s legacy will be sustainable technology, research (like quantum and carbon capture), and services that not only create sustainable enterprises, but transform the lives of people. That is why I work at IBM. “A regenerative and climate restorative world is possible using technology and fundamentally re-thinking material flows, how we define value, and how we create access and opportunity in the future of work. IBM gets this. “Sustainable supply chains provide credibility, strategically manage risk, and create healthy ecosystems – humanising the urgency of climate change and equity for all.”

sustainabilitymag.com

ESG

WRITTEN BY: HELEN ADAMS

on the Results of Worldwide Environmental, Social and Governance Survey 34

July 2021

ESG

Karen Alonardo, Vice President ESG Solutions at Navex Global, discusses the generational, cultural and financial roots of the results

nvironment, Social and Governance (ESG) programmes are frameworks that businesses work towards, supporting the relevant issues that arise within these topics—for example, running diversity workshops, greenhouse gas (GHG) reduction, and anti-corruption. NAVEX Global offers risk and compliance management software and services. The company helps customers manage risks, handle regulatory requirements, build ESG programmes and enhance their ethical workplace values, in addition to offering resources and courses to help employees understand the importance of ESG. Recently, NAVEX Global carried out an Environmental, Social and Governance survey globally to discover the generational and regional differences in attitudes to ESG. Public and Private companies from across France, Germany, the United Kingdom and the United States were invited to participate, and over 1,250 management and senior-level executives responded to the survey. Karen Alonardo is the vice president of ESG Solutions at NAVEX Global. Karen spoke with Sustainability to discuss the survey results, and although parts of the data were surprising, other aspects were not. Yet, all of the results point in the direction of positive ESG momentum. First, she discussed what ESG means to her. sustainabilitymag.com

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ESG

For companies that did not already have ESG programmes in place

64%

of millennials (24-39-year-olds) believed they should

55%

of Gen X (40-55-year-olds)

38%

of older leaders (56+) agreed

“ESG has emerged “The value that comes UN Sustainability as an investor view of from an employer sustainability - which supporting diversity Goals has been around for a and inclusion is one of while. It's led to more UN Sustainability Goals range trust and acceptance. businesses quantifying from climate action to reducing If the employees see risk and performance in inequality, affordable clean energy an employer who cares these areas. For years, to ensuring gender equality and about these issues, people have said: “If my quality education they know they are investor is telling me to accepted regardless of do this, I had better do their gender, skin colour, it!” and this now applies to sustainability and religion or country of origin. The relationship ESG. Investors cannot make decisions based between the employee and employer on stories or what it is you ‘say’ you’re doing. is key to attracting and retaining good They can only make decisions based on fact quality talent.” and what they can see. ESG policies are that Generationally, millennial leaders are step that we needed, where investors are more favourable towards ESG than their putting pressure on businesses to do better Generation X or baby boomer counterparts. and realise the benefits of concentrating For companies that did not already efforts in these areas.” have ESG programmes in place, 64% of Within the Social aspect of ESG, diversity millennials (24-39-year-olds) believed they and inclusion are getting a lot of attention right should. Only 55% of Gen X (40-55-yearnow. Why is it important for employers to value olds) and a mere 38% of older leaders diversity and inclusion in their workforce? (56+) agreed. sustainabilitymag.com

ESG

Compliance Automation Software: A Platform Approach

“ Governance has been a very separate entity, but it is a really important component” KAREN ALONARDO

VICE PRESIDENT ESG SOLUTIONS, NAVEX GLOBAL

In addition, 55% of Millennials said environmental factors are most important to their company’s reputation. 44% of Gen X respondents and 48% of Baby Boomers felt the same way. “Back in 2006”, says Karen, “I remember thinking: “I cannot wait for the young people to come in and work for us,” because they grew up learning about recycling and have been educated about climate change at school. My generation didn’t. We had one 38

July 2021

catchy TV ad: “Give a hoot, don’t pollute”. But for Millennials, it is a serious consideration. They will take a job because one company is greener than another company. They are thinking about their own kid’s futures.” Out of the three components in ESG, Governance is often viewed as the least important aspect. “We get told that when you think about the governance aspect, that they are “Over there somewhere...”. Governance has always been seen as a very separate entity to the social, sustainability and environment side of ESG, but it is a really important component,”

ESG

explains Karen. “The Governance private companies to report side can have a huge impact. Is back to them, so if a big business your board being ethical? Is there is asking me, as a small private bribery or corruption? There is an business that supplies to them, to of publicly traded education piece that still needs to generate ESG reports - I need to companies be done on how the G fits in with do that as they are my customers. the E and S of ESG.” Publicly, trading companies are privately-owned Of those questioned, publicly asking their vendors to report their companies have traded companies seemed to ESG initiatives to them. I think it is ESG policies favour ESG initiatives more so balancing out, and many are taking than those which were private. care of it on their own. I think 88% of publicly traded companies had the next step is looking at how we simplify such programmes in place, compared to the process.” 79% of venture and private equity-backed companies and only 67% of privatelyWAVING THE ESG FLAG owned companies. From the countries asked if they worked “Big companies are thinking “I need to for companies with formal ESG reporting implement [more ESG] because of my practices, respondents from France and customers.” Asset managers are asking Germany hit 86%. 82% of UK respondents

88% 67%

sustainabilitymag.com

ESG

From the countries asked if they worked for companies with formal ESG reporting practices:

86%

France and Germany respondents

82%

UK respondents

74%

US respondents

and only 74% of US think we are starting to NAVEX respondents said the see. We need a leader. If same. However, 67% it’s the EU today, maybe of the US and the UK NAVEX offers customers next, it will be the USA!” respondents said their multiple resources and courses NAVEX Global was companies would in Diversity and Inclusion, from founded in Portland, increase their focus on analysing microaggressions to Oregon, USA, in 1997, and ESG factors in 2021, managing bias to how diversity the company has some whilst 62% of French benefits everyone. environmental goals. and 58% of German “NAVEX Global’s companies said the same. environmental impact “[Laughs] I think in the USA… we are so is not as large an issue as it would be for different - size-wise and in complexity. With companies in other sectors, but it’s still a smaller landmass and natural resources very important to us. We are currently scarcity in UK/Europe, it meant a focus on setting goals not only in environmental ESG was needed sooner, but now everyone but in all aspects of ESG, including people, is feeling the threat. What’s great with the UK community, governance and customer and Europe taking a stand with ESG is [that] service. We are also planning for a publicothers are going to watch and learn, which I facing ESG report in the near future.” 40

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ESG

The United Nations Sustainability Goals are a benchmark for many: from Goal 5 ‘Gender Equality’ to Goal 13 ‘Climate Action’ and Goal 11 ‘Sustainable Cities and Communities’. These are wide-ranging goals, but are they actually achievable? “Absolutely,” says Karen. “I think it helps to give goals to companies that are thinking: “What do we need to do, where do we start?”. It can feel like such a huge task to take on ESG commitments, but with these guidelines, companies can say: “I can take three of those goals and make them a reality.” It gives them something to shoot for! Environmental news can be really disturbing and overwhelming, but being able to follow these guidelines means we are working towards making things better. That’s how I motivate and move myself forward.”

“ Back in 2006, I remember thinking: “I cannot wait for the young people to come in and work for us,” because they grew up learning about climate change at school. Mine didn’t” KAREN ALONARDO

VICE PRESIDENT ESG SOLUTIONS, NAVEX GLOBAL

MOVING FORWARD INTO A POST-PANDEMIC WORLD After over a year of working from home and the possibility of hybrid work for many, ESG will evolve with the new normal. “I don’t know what it’s going to look like, or when that will be”, Karen says. “We are still going through a transition. Hopefully, we can utilise technology to allow us to continue working in a smarter way, especially when it comes to our work-life balance. I’d like to think we will continue to be more caring of one another. Hopefully, more people will also be questioning where our products come from, having faced issues in the usual supply and demand during the pandemic. I am learning a lot about dependency. How do we all run as one happy planet? But it has been nice not commuting! People have had time to check up on their personal lives. I think I have seen that from a lot of people. It has also given nature a break and a chance to reset itself, which I have seen as a silver lining.” sustainabilitymag.com

HSBC

HSBC: Putting Sustainability at the Heart of Global Finance WRITTEN BY: SCOTT BIRCH

July 2021

PRODUCED BY: GLEN WHITE

HSBC

sustainabilitymag.com

HSBC

July 2021

HSBC

Kelly Fisher, Head of Corporate Sustainability, HSBC Bank USA, tells us how finance can play a leading role in achieving net zero and global equity

Kelly Fisher, Head of Corporate Sustainability, HSBC Bank USA

rom pilot renewable energy initiatives in Asia to innovative startups addressing climate change in the UK and farmers in the Upper Mississippi River Basin adopting regenerative agriculture practices – HSBC is taking sustainability seriously. Those three examples are a snapshot of the Climate Solutions Partnership HSBC has embarked upon, backed by US$100 million of philanthropic funding over five years. HSBC has also committed to be net zero of their own operations by 2030 and of their financed emissions, which includes a US$750 billion to $1 trillion in sustainable finance and investments to help their clients transition. It’s an ambitious environmental stance, yet if any banking and financial services organisation can do it, it’s HSBC – with a global footprint spanning 64 countries and with assets of US$2,959 billion (as of 31 March 2021). HSBC has transitioned from being The World’s Local Bank to truly acting locally to benefit globally. With everything else going on in the world right now, it would be easy to do nothing, but it has been a busy 2021 so far for HSBC. In Q1 it raised a record US$68 billion through its Green, Social, Sustainability and Sustainability-linked (GSSS) bond to pay for green projects and new technology to enable and accelerate the race to zero. sustainabilitymag.com

HSBC

HSBC’s Operational Transformation to Digitalise the Customer Journey

At the 2021 AGM, a “HSBC has been “I AM SO GRATEFUL special resolution on around for 157 years. THAT I HAVE A JOB THAT And we connect the climate change was passed, committing to world through the EVEN WHEN I'M DOING phasing out financing power of finance. THE SMALLEST THING, of polluting industries And I think that such as coal mining that is profoundly I FEEL LIKE I'M DOING and coal-fired power. important as we SOMETHING THAT It’s more than a solid see that the world is start, fuelled by the becoming incredibly MATTERS” desire to build a interconnected in better world. In the both good ways KELLY FISHER global fight against and bad,” says Kelly, HEAD OF CORPORATE SUSTAINABILITY, climate change, HSBC speaking from her HSBC BANK USA is working with its home office in customers to support Queens, New York. their transition to lower carbon emissions. “What HSBC does best is connect the Kelly W Fisher is Head of Corporate world through trade, through finance and Sustainability, HSBC Bank USA, and it is on the ground in both developing and celebrates six years with the banking giant developed nations. And while I think finance this month, having previously worked at has been criticised – that industry has been Toyota, Goldman Sachs and Ogilvy PR. So criticised, and certainly deserves scrutiny – how have things changed during her time? there is a profoundly positive impact that 46

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HSBC

financing can have, particularly in some of the developing countries where we're really on the ground and helping serve people. In countries like Vietnam and Bangladesh, we have a powerful banking presence there that can change lives. So that's a little bit of what I try to capitalise on from a sustainability perspective.” Times have certainly changed in what the business world used to call Corporate Social Responsibility – an umbrella term that essentially covered any activities firms became involved in ‘doing good’. Fisher says that with some notable exceptions, many companies used CSR almost as an apology for how things were being done, giving away millions of dollars to cover up how they were operating as a business in certain countries and communities. “I think because of social media, because of consumer activism, because of investor activism, that's not permitted anymore,” she says. “What I see is the role of a corporate philanthropist as an apology or cover up is almost completely eradicated at leading companies. And now the first and foremost attention is how that company operates.” In the six years that Fisher has been at HSBC, she has seen the financial giant transition, even though HSBC was

Number of countries HSBC operates in

226,000 Number of HSBC employees globally

TITLE: HEAD OF CORPORATE SUSTAINABILITY COMPANY: HSBC BANK LOCATION: USA

EXECUTIVE BIO

1965

Year HSBC was founded

KELLY FISHER

As a corporate social responsibility, inclusion, and sustainability advocate, Kelly has dedicated her career to helping companies strive for responsibility, generosity and inclusion. The goal? To have a tremendous impact on communities, employees and clients, while improving corporate reputation and consumer engagement. Now Kelly is helping to embed sustainability into the work of one of the world’s leading banks with the goal of helping the company and its clients to transition to a low carbon economy.

sustainabilitymag.com

HSBC

“ WHAT HSBC DOES BEST IS CONNECT THE WORLD THROUGH TRADE, THROUGH FINANCE AND IT IS ON THE GROUND IN BOTH DEVELOPING AND DEVELOPED NATIONS” KELLY FISHER

HEAD OF CORPORATE SUSTAINABILITY, HSBC BANK USA

July 2021

HSBC

already one of the few banks of its size globally that was already talking about sustainability or climate change and helping clients transition. “I remember my first day I went through an orientation and they told a story about a huge client that was the leading destroyer of rainforests to make paper products,” Fisher recalls. “And we could have walked away from them and a dozen other banks would have snatched them up and started financing them exactly as-is. And instead we transitioned them. And now they're the leading FSC provider of paper goods. And that was astonishing to me that that was part of my HR process day one – not ‘here's the bathroom’ and ‘here's where your computer is’, but that story. “Now I feel like if anything, the world has changed and we have to retain that leadership role and push ourselves harder than we've ever pushed. We've always known that sustainability and sustainable finance were key to us being around for another 150 plus years. And now every other bank is saying the same.” Sustainability is a constantly evolving challenge and so even though HSBC may have been a pioneer and enjoys a leadership position right now, it has to keep developing to maintain its pole position. This is not something lost on Fisher, who agrees that a leading bank can quickly become “a laggard” if they don’t invest in their own efforts and set ambitious yet attainable goals. So right now HSBC has an aggressive net zero strategy and has hired a PhD scientist as its new Group Chief Sustainability Officer. Dr Celine Herweijer joins this month (July 2021) from PwC where she held roles including Global Climate Change Leader. Herweijer has held sustainabilitymag.com

HSBC

DID YOU KNOW...

KELLY FISHER – MY CAREER JOURNEY

“When I started out, this was an almost non-existent career. There was no logical career path to becoming a sustainability expert or a CSR expert. I was a classical ballet dancer, my whole life. And that's what brought me from the Midwest to New York City. Luckily I had a personal friend, who was a recruiter for Goldman Sachs. And luckily, because she knew me as a person instead as the professional on my resume, she twisted my arm and said ‘there's this really interesting job. I know you've been volunteering with nonprofits since you were a little kid, it's kind of doing that, but for this investment bank. Just go in and talk to them about it.’ And I never looked back. I loved it so much. I spent four years at Goldman helping to lead what I still think is one of the best of the industry volunteer programmes. I also helped do the entire internal global marketing campaign to promote that to employees. From there, I went to Toyota, and had a very different experience. Volunteering on work time was not something that was really in the culture of a Japanese-led company, and so instead I oversaw massive philanthropic programs – Toyota's incredibly generous. In the US they have a hundred-million-dollar endowed foundation. In addition, we spent 30, 40, 50 million in corporate donations. By the end, we were doing some incredibly innovative things, even around skill sharing, meaning taking the world famous Toyota production system and applying it for free to nonprofits. So the same system that made Toyota famous for building their cars effectively, efficiently without waste, very environmentally friendly, we would take and then teach to nonprofits for free.

July 2021

Things like people standing in line in the freezing cold for a meal for 75 minutes – our engineers would go in for three days and that line would go down to 10 minutes because they were applying Just-In-Time and all these incredible production systems. Another example was an organisation in New Orleans started rebuilding people's homes that were destroyed after Hurricane Katrina 60% faster because of spending time with Toyota engineers. That was really a light bulb moment for me, which was that the same things that make a company successful can make the world a better place if they're applied in the right way. I was hired by HSBC and this role has pulled on everything I've ever done. It's really strategic, philanthropic giving that's tied to the business. I also oversee sustainable operations and sustainable finance, and I'm helping make sure that the US achieves that net zero commitment. I really love what I do. I don't wake up and have bluebirds braid my hair and live in a cartoon fantasy world. But I am so grateful that I have a job that even when I'm doing the smallest thing, I feel like I'm doing something that matters.”

HSBC

sustainability advisory roles for the United Nations, World Economic Forum, G20, the World Bank, and the European Union. Impressive credentials indeed. “The challenge and the opportunity for HSBC is immense,” said Herweijer. “Achieving net zero means we need to see a fundamental reshaping of industries and therefore of the global economy. Getting there requires bold action, new partnerships and ways of engaging with customers and stakeholders to accelerate the new solutions the world requires.” So, the trillion-dollar question is, how exactly is HSBC planning on reaching this net zero target, and how realistic is it in

the first place? HSBC’ commitment is to make its own operations net zero by 2030. While there are hundreds of marginal gains to be had along that path covering every aspect of operations, Fisher says it fundamentally comes down to three things – with the largest being its supply

“WE ALL NEED TO REENTER THE WORLD NOT LOSING HOW IMPORTANT CLIMATE CHANGE AND EQUITY BECAME TO US DURING THE PANDEMIC” KELLY FISHER

HEAD OF CORPORATE SUSTAINABILITY, HSBC BANK USA sustainabilitymag.com

HSBC

chain, accounting for around 78%. Second comes the energy output of HSBC’s many buildings, and the third being travel. The COVID-19 pandemic has certainly caused a shift in business travel behaviours which could be here to stay, with no need for executives to fly around the world for face-to-face meetings that have made a successful transition to virtual. “I think it's realistic,” says Fisher. “I was on the phone with a company yesterday that had set a net zero target by 2022 and they're already there. While they're not a financial services company, they have a similar energy footprint to ours. The best advice I could give is don't set a long-term goal alone. Success is in interim micro goals. Don’t just set an aggressive goal by a certain end date, set achievable micro goals.” HSBC has been widely recognised as a leader in sustainable finance – but what has it done to deserve such praise, and what does it do that makes it stand above the efforts of its competitors? Six years ago when Fisher walked through the doors, sustainable finance meant green bonds, and that was pretty much it, but HSBC was the world leader. However, since then, its bankers have been creatively uncovering new and exciting financial products and incentives – that Fisher says are “going to change the world and get us where we need to go”. “In 2017, we did the world's first SDG bond that instead of being green proceeds, it was around equality and poverty and all these things that now everyone's talking about. It was three times over-subscribed,” Fisher explains. “Last year during the height of the pandemic, we did the world's first plastic waste reduction bond. But it's not just bonds. Being a bank with its roots in trade, we are the expert in how trade routes and supply chains work. 52

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HSBC

2030

HSBC has commited to be net zero of their own operations by 2030

2050

HSBC has commited to be net zero of their finance emissions by 2050

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July 2021

HSBC

“DON’T JUST SET AN AGGRESSIVE GOAL BY A CERTAIN END DATE, SET ACHIEVABLE MICRO GOALS” KELLY FISHER

HEAD OF CORPORATE SUSTAINABILITY, HSBC BANK USA

Most companies, their “The next year or so is biggest footprint is profoundly important,” HSBC'S NET ZERO their supply chain. So agrees Fisher. “We all MISSION STATEMENT when we can apply a need to reenter the lens to it and pay your We want to do more than simply play world without losing suppliers differently to our part in the transition to a more how important climate incentivise sustainable sustainable world. This pillar of our change and equity change, that's a product strategy outlines how we will help to became to us during where impact happens lead it. We have committed to: the pandemic. If we let almost immediately.” go of these two things A great example of • Become a net-zero bank as priorities, it will have that is with the retail • Support our customers to been for nothing, what behemoth Walmart – transition to a low carbon we've all gone through. which has introduced future, especially in carbon “I think too often a finance programme challenged industries companies are devalued that peg’s a supplier’s • Accelerate new climate solutions for how profound of an financing rate to its • Inspire our customers to invest to impact they can have on sustainability standards. support positive change the world. In that way, It’s a simple yet there was a great Harvard powerful concept that Business Review quote sees more sustainable companies being from years ago that said when companies rewarded with improved HSBC financing. It’s share their expertise and their resources and a win-win for the suppliers, for Walmart, and address the spinal issues, they have a greater for the planet. potential to solve those problems than Diversity and Inclusion, Equity and governments and non-profits put together. Sustainability are never far from the lips of “So companies can't just go back to the top executives globally right now, as the Milton Friedman way of thinking where so world emerges from the grips of the COVIDlong as we are making a profit, that’s all that 19 pandemic into a physical and social matters. We have to finally own the impact environment very different from even 18 and the responsibility that we have.” short months ago. Which in a way shows how hard it is to plan for the future and take steps now that will have a meaningful impact. sustainabilitymag.com

Sun

RENEWABLE ENERGY

The Never Sets for

Solar Power Low maintenance, high energy: solar power is supporting the planet in a lot of different ways… here’s how WRITTEN BY: HELEN ADAMS

olar energy, the renewable energy source which mimics photosynthesis by converting sunlight into electricity, is abundant but still not widely used. Yet, as an increasing number of businesses commit to sustainable development goals, more solar farms are popping up, and homeowners are stamping panels onto their roofs. In addition, it’s estimated that fossil fuels will be entirely depleted by 2060, so an eventual shift to renewable energy is inevitable. The positive outcomes of solar power are well known: • Solar panels do not contribute to climate change as fossil fuels do • After the initial investment, they eventually pay for themselves • Most importantly, solar power is endless

July 2021

RENEWABLE ENERGY

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Intuitive cloud solutions that power productivity From manufacturing and transportation to retail and fashion, we deliver industry-specialized ERP end-to-end software brought together by artificial intelligence technology. • 68,000 customers in 170 countries • 71 million cloud users • $2.58B invested in product development • Enterprise leader in ERP

LE A R N M O R E

G E T A DE M O

infor.com +61.2.9021.7100

RENEWABLE ENERGY

World’s largest floating solar farms being built in Singapore

Unfortunately, problems persist: issue of the space required to attach solar • The panels have a life expectancy of 20 panels. Although solar panels still work years and will need to be replaced on cloudy days, they work at maximum • Wildlife seeking shelter from the elements efficiency in direct sunlight are attracted to the panels and droppings can present a risk of bacterial infection for Generating and storing solar power humans living close by For a solar panel to work properly, it does not • The upfront cost of solar panels is also have to be in the direct glare of the sun. The discouraging. According to Solar Guide: panels create energy in the winter, as well as “Fortunately for homeowners, solar panels on cloudy days, but not at nighttime. Thus, have dropped in price by 60% compared to during the winter, when days are shorter, less how much they cost back in 2010. Typically, energy is produced. they’ll cost in the region of £6,000 – £7,000, Yet, for those with a solar battery, excess which is still a large expense, but you’ll solar energy can be stored and used later or see a return on investment through exchanged. In Australia, Victoria Bitter energy bill savings.” Although a drop offers free drinks in exchange for in price is a positive development, surplus solar energy from residential Solar panels some customers delay their solar panels. have dropped purchase, hoping that the price of Most people are familiar with in price by solar panels will eventually lower to the initial product: chunky rooftop accommodate their budget solar panels. But these aren’t always • For those living in homes without aesthetically pleasing and come with sun-facing walls, there is also the some of the aforementioned issues.

60% from 2010

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RENEWABLE ENERGY

Solar scientists have continued to create new designs for maximum efficiency, lower costs and greater customer satisfaction. Here are a few examples of the latest developments in solar technology: Solar blinds Blinds are a common feature in many offices, and the design team at SolarGap have created window blinds with solar panels attached. The blinds can track the location of the sun and tilt to follow it throughout the day for maximum efficiency, keeping employees shaded and enjoying pollution-free energy. The blinds generate up to 100 Watts per hour, per 1 square meter of solar modules. SolarGap told Sustainability: “Not everyone has a possibility to install SolarGaps on a roof, but there is almost always a possibility for the window installations.” Solar windows The University of Michigan has reinvented the window, creating one which holds solar cells that collect the sunlight and turn it into energy. The window can still retain 43% transparency. It is being marketed to skyscrapers, which also have to protect their employees from the danger of overheating in the summer. Heat rises (it is unnecessarily retained by regular glass) and these solar windows have found a purpose for it. Solar roofs Tesla skipped over the panel idea, creating instead a whole roof that converts sunlight into electricity through individual solar tiles. “We wanted it to look better, last longer, provide better installation and cost less than a conventional roof,” explained Elon Musk, CEO of Tesla. 60

July 2021

“ Not everyone has a possibility to install SolarGaps on a roof, but there is almost always a possibility for the window installations” SOLARGAPS

RENEWABLE ENERGY

SunCable In Australia, a project is underway to build the world’s largest solar farm, SunCable, with 150 square kilometres of solar panels.

Solar farms solar panels in the Northern Territory. Back on Earth, traditional farming Most of this energy will be exported to is under the lens for its impact on Singapore via a cable running across SunCable, the climate change - from farmers in the ocean floor, but a portion will be world’s largest solar farm, Brazil destroying forests to make used to power homes in Australia. could cover room for grazing cattle to methane emissions. But solar farms are Floating Solar Farms of Singapore’s expanding, with the solar power being Although the SunCable solar farm energy requirements traded overseas. could cover 20% of Singapore’s Despite having a net-zero goal as energy requirements, the island is so late as 2060, China has put a lot of effort densely packed there is no real opportunity into renewable energy. So far, the country for hydro or wind power to be implemented. has built several vast solar farms in unique The country is threatened by rising sea shapes, including a panda and a horse. levels and has an ingenuitive answer: solar Meanwhile, in Australia, a project is farms on water. The floating solar farms are underway to build the world’s largest solar being installed in the Johor Strait, between farm, SunCable, with 150 square kilometres of Singapore and Malaysia.

20%

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RENEWABLE ENERGY

Four thousand metres above sea level in Puno, Peru, another floating solar farm gathers the sun’s energy. Supported by the Global Environment Facility Small Grants Programme, this provides power for isolated communities in allowing farmers to use pressurised irrigation to water their crops and keep the llama population content during the dry season. Solar power has already been used offplanet, powering Earth’s oldest artificial satellite in orbit, Vanguard 1, launched by NASA in 1958. The satellite’s solar cells died in 1964, and Vanguard 1 is now one of 3,000 dead satellites still orbiting Earth. Replacing the spacecraft’s solar cells would have 62

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been a lot more expensive than replacing those on a roof. However, our Sun has seven billion years of energy left to fuel the solar power industry. Off-planet ideas are sounding less like science fiction and more like reality. A Solar Station on the Moon From Earth, we see many different Moon phases, but the Sun almost constantly covers one half of the Moon in sunlight - ideal for solar farming. Energy captured there can be sent back to Earth via a wireless transmission. The Japanese company Shimizu is considering building a Luna Ring to capture solar energy, which could be seen from Earth.

RENEWABLE ENERGY

Fossil Fuels It’s estimated that fossil fuels will be entirely depleted by 2060, so an eventual shift to renewable energy is inevitable.

Solar Disks Earth-based solar power is weaker in the winter and ceases at nighttime, but solar disks in space could have their trajectory positioned for the panels to capture endless sunlight. The European Space Agency and the USA are exploring the possibilities. Businesses using solar power Many businesses are already using solar power, with a public commitment to expand their renewable energy policies. In April, Apple unveiled that the company would build a battery-based renewable energy storage facility in California. Apple’s properties already use solar power

throughout the Golden State. The storage facility will allow Apple to store energy reserves for nighttime when the solar panels cannot provide energy. “In a year like no other, Apple continued to work with a global network of colleagues, companies, and advocates to help make our environmental efforts and everything we do a force for good in people’s lives — and to work alongside the communities most impacted by climate change,” said Lisa Jackson, Apple’s vice president for Environment, Policy, and Social Initiatives. In 2012, Ikea launched The IKEA sustainability strategy, People & Planet Positive, with the ambition to ensure that sustainabilitymag.com

RENEWABLE ENERGY

July 2021

RENEWABLE ENERGY

“ In a year like no other, Apple continued to work alongside the communities most impacted by climate change” APPLE the business and value chain subscribe to a strict sustainability agenda. “Our sustainability ambitions and commitments are set for 2030 in line with the UN Sustainable Development,” the company said. In addition to selling outdoor solarpowered lighting, Ikea also hosts 750,000 solar panels on the roofs of their buildings. Solar power progress Although Vanguard 1 is lost to the ages, solar power is far from being forgotten because regardless of the pros and cons, the problems and the exciting developments - renewable energy is infinite, and fossil fuels are dying. Gas, oil and coal have proved to be dangerous to people, and the planet. Meanwhile, harmless hydro, wind and solar power technology are evolving each year with incredible potential. As the deadline for the last drop of oil draws nearer, solar power scientists continue to work to overcome issues of size, cost, and customer satisfaction, and Sustainability will continue to cover these developments. sustainabilitymag.com

ARK DATA CENTRES

SETTING THE TONE FOR SOCIALLY RESPONSIBLE DATA CENTRES WRITTEN BY: DAN BRIGHTMORE

July 2021

PRODUCED BY: LEWIS VAUGHAN

ARK DATA CENTRES

sustainabilitymag.com

ARK DATA CENTRES

July 2021

ARK DATA CENTRES

Empowering businesses to work from anywhere in the world with mission critical facilities fueled by 100% green energy

rk Data Centres specialise in the design, construction and operation of high integrity data centres which lead the market in sustainability, deliver optimum security, combined with the highest levels of availability. Ark’s objective is to industrialise the data centre market, eliminating the errors and costs associated with one-off custom-built solutions; favouring the inherent quality, improved performance and economies of a modular, manufactured solution. The green agenda Industry leaders like Amazon, Microsoft and Google are driving uptake in the data centre market and have made categorical statements about their sustainability goals and how they will be achieved. Ark Data Centres openly share similar values and is approaching business in a different way says its CEO Huw Owen. “There’s been too much greenwashing and not enough action,” he says. “We don't think that's good enough, because it's not addressing the actual problems in a meaningful way that effects real change. The data centre industry is hungry on power and water so we need to develop a fit for purpose green agenda.” The last decade has seen a huge and exponential growth in the use of data highlights Owen. “We’re seeing growth in the hundreds of percent when it comes to the amount of storage and power we’re offering. And if you actually look at the growth in power usage, it isn't matching it. Evidently, some good things

have been done to control that, but more needs to be done. And what's achieved that in large part is getting out of the old sweaty real estate data center sites into more modern and sustainable footprints.” Ark’s goal is to create socially responsible data centres via a journey of continuous improvement towards sustainability objectives that benefit both its customers and the planet. Net-Zero connectivity Ark has been sourcing green energy since 2015. All of its facilities are now powered by 100% renewable energy using purely natural sources. “Our customers benefit from the lowest renewable energy prices available in the UK market, while dramatically lowering their own carbon footprint,” reveals Owen. It’s a fundamental approach that informs each stage of Ark’s design, build and operations cycle. All existing sites which have sustainabilitymag.com

www.gratte.com

Specialists in mission critical systems

Telephone 020 7837 6433

Gratte Brothers Group

Gratte Brothers: Mechanical & Electrical Precision Enabling modular and sustainable data centre solutions with resilient engineering Gratte Brothers is a third-generation family business, established in 1946 that has been offering combined M&E solutions for over 35 years; its first data centre project dates back to 1995. During the last six years the company has consistently delivered 30 megawatts of IT power to the mission critical construction market every year. Resilient “We offer specialist knowledge when it comes to resilient engineering services” assures Gratte’s Engineering Director, Remi Suzan. “We’ve worked with DC supply chains for decades, and have good relationships with our manufacturers and specialist subcontractors. Our contract engineers, site managers, and in-house commissioning teams don’t just understand how they work, but ‘why’ they need to work that way, and they bring that deep knowledge to every project.” Modular Gratte Brothers has worked with Ark for over a decade; an integral part of its partner ecosystem developing modular DC solutions with low energy consumption

at their core. “ Together with Ark’s other partner contractors, we worked on developing a modular energy centre that could be associated with the prefabricated data centres that could then be deployed either as a single unit or as multiple units, depending on what Ark needed at the time,” confirms Suzan. “The energy centres containing the UPSs and LV panels were all provided with a cooling system designed on external fresh air. It was calculated that for 98% of the year it could operate without mechanical cooling which was only required in exceptional circumstances at high-peak summer periods.” Sustainable “Ark are way ahead of the game when it comes to sustainability,” reckons Suzan. “Their approach is more than just a green message on their website; they really mean it. Now that we can use adiabatic fresh air cooling systems for IT equipment with heat recovery in all of our air solutions, allied with the use of photovoltaic panels and LED lighting, energy efficiency has greatly improved.”

Engineering energy efficient data centres

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ARK DATA CENTRES

historically leveraged diesel generators are in the process of being transitioned to bio-diesel. For every new London facility Ark is committed to eliminating diesel by deploying back-up gas generators proven to run effectively on up to 30% hydrogen. “We support the UK’s ambition to incrementally increase the hydrogen mix in its utility gas network and we are pushing hard for the tests to be completed which will allow 100% usage,” adds Owen. “Our campuses are ecologically level and feature green areas where wildlife can 72

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coexist. We have eco-toilets on our sites that save thousands of litres of water each year. We’ve also extended our typical rainwater harvesting process to capture water from the roof but also from the run-off of the car parks which can then be filtered and stored. It may involve a more intense filtration process but by re-using this water, we only use the mains to top up the rainwater supply as required, significantly reducing our usage.” Water consumption is a key example where a data centre could either potentially

ARK DATA CENTRES

add to the problem or employ some innovative thinking. That’s why the team at Ark has developed a water buffering and saving mode for its cooling equipment which reduces the utility water supply requirement from 33 litres to just five litres per second (reducing its original peak water usage by a staggering 85%). Ark’s net zero approach is the adoption of an ethos, not just a box-ticking exercise. Its waste management strategy is to become a “zero waste to landfill business” by reducing

the unnecessary use of raw materials. Simultaneously, Ark aims to encourage re-use of materials and products, and reduce waste to landfill through recycling, composting or energy recovery, leading to a lower environmental impact and positive carbon reductions. Modular data centre design “We’ve partnered with Bladeroom since 2011 developing our ‘data centre in a box’ concept,” explains Ark’s Director of Design, sustainabilitymag.com

Creating A More Responsible Digital Future BladeRoom are global leaders in the provision of highly energy–efficient data centres, manufacturing a sustainable and scalable solution capable of being deployed anywhere in the world.

Watch the future for sustainable data centres

Socially Responsible Data Centres For many businesses, improving sustainability now sits squarely at the top of the agenda and it’s a principle we share with the customers we serve. That’s why our data centres are designed around innovative technology that is proven to dramatically reduce energy consumption and carbon emissions. A BladeRoom data centre, with its latest technological advances, uses zero mechanical cooling or refrigerants, and can operate at an annualised PUE of 1.04. This represents less than 4% of the total energy required to power the entire data centre and compared to the industry average, it is over 10 times more efficient. At the scale of a 100MW BladeRoom campus, situated in the UK, this results in annual carbon emission savings of up to 110,000 tonnes. The real and significant reductions in carbon footprint that we are helping our clients to deliver today are the result of our 10-year commitment to innovation and continuous improvement and it is our mission to continue this journey towards a better and more responsible digital future.

Data Centres Don’t Get Any Cooler Than This BladeRoom facilities use an advanced cooling system, maximising free, filtered, ambient air with evaporative cooling. Free cooling is available for up to 100% of the time depending on the climate and supply air setpoints - saving significant cost and carbon emissions. Rather than re-circulating and cooling the hot air from the IT as with traditional data centre cooling, a BladeRoom data centre operates like a server by drawing in highly filtered fresh air, intelligently matching air supply to IT demand and exhausting or partially recirculating warm air from the data centre as required. Evaporative and free cooling enables the IT equipment to be cooled with supply air temperatures of between 18°C and 30 °C for more than 99% of the year in the UK without the need for mechanical cooling across a range of IT loads, still performing efficiently at 15% utilisation of racks.

Why ‘Factory-First’ Matters By manufacturing our data centres in our 110,000ft2 factory, we offer a sustainable alternative to site-based construction which in turn, provides a more resource-efficient way to create socially responsible facilities. Our ‘Factory-first’ production approach allows deliveries to be made to the factory in bulk from local suppliers, minimising transport and heavy goods emissions. Materials are tightly controlled which dramatically reduces waste, with noise and pollution levels minimised, and site-based operational risks are transferred to a more secure environment. Visit our website or follow us on social media to learn more about our commitment to a responsible digital future.

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ARK DATA CENTRES

Construction & Operations, Andy Garvin. “Built off-site, delivered by lorry and then re-erected on site within 14 days of leaving the manufacturing facility it was our first approach towards a volumetric solution.” Now focused on a flat pack solution that can be built off the cladding on site, the design has been developed through various iterations over the past decade to reduce waste and cost. “We’ve developed a really efficient approach with dedicated factory space for Bladeroom to 'build-to- order' for our clients. The standardisation they’ve been able to offer has been really important. We've worked closely with Bladeroom, particularly around the cooling technologies 76

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- we use indirect and direct air solutions. The majority of our data centers are direct air, which allows fresh air to come in. It's conditioned, filtered and then approaches the OT space and is either exhausted or recirculated, depending on the conditions within the room.” Ark also works alongside Bladeroom with Gratte Brothers and JCA to develop improved energy centre solutions. “Gratte Brothers and JCA are our preferred mechanical and electrical engineering partners,” confirms Garvin. Ark were also keen to modularise this process so together the partners came up with a unique solution which not only utilises

ARK DATA CENTRES

“ The data centre industry is hungry on power and water so we need to develop a fit for purpose green agenda”

HUW OWEN TITLE: CEO INDUSTRY: TECHNOLOGY LOCATION: WILTSHIRE, UK Huw Owen joined Ark in November 2012 as Chief Executive Officer to lead a new management team following the recapitalisation of the company. He has held key roles at a number of organisations, including BT Global Services and HP Defence & Security. Previous roles across a diverse career include Chief Executive of the Atlas Consortium, delivering the Ministry of Defence DII (Defence Information Infrastructure) programme. Owen also worked for the Asia Foundation, formulating and driving national reform programmes in Cambodia, as well as advising the United Nations on their efforts in Central Asia. Before this, he served with the Royal Hong Kong Police Force, latterly as a Detective Inspector.

HUW OWEN

CEO, ARK DATA CENTRES

Partnering with the UK Government The UK government utilises a disparate set of data centres of varying scales and efficiencies. Entering the fray when a tender was held in 2013, Ark subsequently won through to secure a deal to partner with the UK Cabinet Office in a joint venture to create Crown Hosting Data Centres to deliver increased efficiency, improved value, and transparency of data centre hosting utilisation across the entire UK Public Sector. Doing just that, Ark delivered £105m in savings which contributed towards over £2bn in savings for the UK government.

EXECUTIVE BIO

the data center cooling to cool the energy center, but also allows Ark to build the energy center off site - improving health and safety while reducing material waste and cost. “Though competitors in the market, Gratte Brothers and JCA are both familyrun businesses that integrate well with Ark,” says Garvin. “They’re really adaptable and always looking to innovate. When we need to ensure speed to market, and in times of crisis like we’ve experienced during the pandemic, we rely on these partnerships to deliver safely to our customers.”

BUILDING THE FUTURE Drawing on a wealth of industry experience, Sweet Projects design and construct specialist buildings for our clients across the Defence, Aerospace and Data industries with unrivalled levels of focus and service.

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SWEET PROJECTS AND ARK DATA CENTRES: CUTTING-EDGE BUILDINGS

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Sweet Projects’ Robert Smart discusses the data centre construction specialist’s philosophy and its close partnership with Ark Data Centres.

worked together for over 14 years, growing and supporting Ark’s development to become one of the UK’s foremost data centre providers."

Sweet Projects are turnkey Design and Build contractors operating in the UK & Europe and provide specialised services to the Advanced Technology, Data and Commercial sectors, as Robert Smart, Executive Director at the company, explains:

Going forwards, Smart is clear that the company is poised to evolve with the latest technologies as they emerge. “Complex projects call for complex solutions and the key area of growth in the last few years has been around the use of Information Technology. At Sweet Projects, we have a clearly defined and continually evolving Digital Strategy which allows us to invest and embrace cutting—edge advances in construction technology to continue to improve our offering — from Building Information Modelling, which allows us to coordinate from design to construction, to Geo-enabled Technologies and Biometrics which set us apart in the physical delivery of projects.” It’s thanks to this approach that Sweet Projects is confident that the partnership with Ark will continue going from strength to strength. “Through these, we can meet the ever-growing demand for security of process and certainty of outcome that our partnership with Ark is based upon. Sharing knowledge through digitised platforms, we take our collaboration to the next level — which ultimately drives future success.”

“Sweet Projects’ modus operandi is simple — provide excellent service and delivery consistent with the expectations of our key clients across the Defence, Data and Aerospace industries. Upholding those values requires being laser-focused on the needs of clients as well as workers. “Our management team consists of high-calibre people with experience across the construction industry,” says Smart. “We are passionate about ensuring safe working environments and protecting the personal health and wellbeing of our employees and supply chain. Health and safety is always at the forefront of our operations.” The company is a committed and long-term partner of UK data centre firm Ark Data Centres. “We are committed to working with and for Ark and to this end, with each other, to deliver for the long-term, providing a strong legacy for Ark’s customers and stakeholders. Testament to our exceptional relationship, founded on delivery and innovation, we've

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ARK DATA CENTRES

Huw Owen from Ark Data Centres talks about sustainability

“ Gratte Brothers and JCA are both familyrun businesses that integrate well with Ark. They’re really adaptable and always looking to innovate” ANDY GARVIN

DIRECTOR OF DESIGN, CONSTRUCTION & OPERATIONS, ARK DATA CENTRES

July 2021

“There's a joint board which sits between the government and Ark,” explains Owen. “The framework – procurement, vetting, security and pricing – is pre-done. Instead of having to do procurement, if you take a pound of government money you can utilise that framework, save your management time, save your expense of procurement, and you can use our facilities. We’re highly flexible, you can take it for a month, you can take it for five years, take your reversion release at the end a highly compelling offer. We've been through UK government benchmarking exercises and been found to be right up in the top quartile.” In terms of sustainability goals, Owen estimates that Ark’s involvement has taken the equivalent of 140,000 cars off the road in

ARK DATA CENTRES

CONNECTIVITY COOLED WITHOUT COMPROMISE Direct Air Cooled Data Centre – Operating free cooling 99% of the year, Ark’s Direct Air technology offers the perfect choice to lower a company’s footprint while also lowering costs. Convenient, green and efficient data centres, with world leading PUE performances.

DID YOU KNOW...

carbon savings. The joint venture, accounting for around 45% of Ark’s business. has been extended to 2023 as the UK government seeks to further transform its data centre footprint. Trusted by governments and multinationals alike to deliver flexible and reliable data centre solutions, each new project and partnership is more than just another business transaction for Ark. “A few years back we went through a branding exercise,” recalls Owen. “Our clients were asked to be brutally honest. Their feedback? ‘They’re capable’, ‘A breath of fresh air to do business with’ and most importantly of all, ‘They care’. So, we don’t court awards and adulation, we’re discreet and listen to our customers.”

Indirect Air Cooled Data Centre – Maintaining its industry leading PUE figures, Ark’s Indirect Air Cooled facilities use high tech adiabatic coolers and specifically designed heat exchangers to let companies choose their perfect data centre cooling configuration. Chilled Water Data Centre – Delivering the most robust physical security available, Ark’s mechanical and electrical infrastructure has been developed to compliment the enhanced physical environment while still providing signature benefits – high flexibility and reliability.

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a fully integrated service provider for data centre infrastructure engineering led principal contractor with a proven track record of designing, building and maintaining award-winning and energy efficient data centres

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design | build | maintain

JCA: dynamic data centre engineering

Watch JCA discuss engineering and their relationship with Ark Data Centres

Providing robust and scalable infrastructure solutions to enable the secure growth of IT systems JCA offers trusted world class engineering services to the data centre sector. Working across the design, construction, operation and maintenance of mission critical facilities for 17 years, JCA takes a holistic view with a pragmatic approach to the benefits and pitfalls of resilient engineering strategies. Expertise “When working with clients like Ark, we appreciate what drives their business and understand their key business goals,” confirms JCA’s Managing Director Tom Absalom. “Engineering expertise we hold can be applied to support our partners’ business plans and market offering. In recent years, we’ve made great strides in terms of reduced CapEx and OpEx, albeit with increased availability and enhanced environmental credentials.” Innovation Keeping pace with the evolutionary cycle of incremental gains, JCA ensures the products it develops and deploys are enhanced over those that have gone before. “That can only happen when you work with organisations with shared goals and strategies for the entire supply chain,” says Absalom. “We make sure everyone is aligned towards a single aim. During our time working with Ark we’ve

progressed through some revolutionary concept designs which have trickled down into the world-class products you see them operating today.” Aspiration “Ark’s commitment to sustainability creates an aspiration for JCA to deliver,” maintains the company’s Chairman and Founder Ian Jackson. “It’s the perfect partnership for us to showcase our desire and commitment to invest in the lifecycle of a building asset through the implementation of new digital building technologies. Equally, we’re investigating and testing new disruptive technologies like Artificial Intelligence to improve waste management controls and also provide the strategic direction to leverage real-time information from other construction sites throughout the country. “We’re fortunate to have customers that share our values and appreciate the advantage collaborative partnerships can bring on a long-term basis. At JCA continuous improvement is key as we strive to enhance our consistency and processes.”

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CAMPUS DEVELOPMENT

ARK DATA CENTRES

ARK DATA CENTRES CEO, HUW OWEN LISTS SIX OF ITS FACILITIES SETTING THE TONE FOR SOCIALLY RESPONSIBLE DATA CENTRES IN THE UK: Spring Park, Corsham - 30mw under live operation, 27mw under design & build “Spring Park is where the British government were going to regress in the event of nuclear war - a million square feet of underground space where they once manufactured munitions and fighter planes. Very dense in power and fibre, it’s an excellent site.” Cody Park, Farnborough - 32mw under live operation, 17mw under design & build “When I joined the company in 2012 Cody Park was just a plot of land with two derelict buildings, a large muddy field, and a pond. We’ve come a long way…” Meridian Park, Enfield - 7.5 mw under live operation, 8.5mw under design & build “Meridian Park features a private wire straight into a waste generation plant. It's absolutely compelling, both on an economic basis but also on that green agenda so we can give our customers

July 2021

a real, total cost of ownership, which really encourages them to come in for 100% green power.” Union Park, Hayes - 75mw under design & build, 150mva dedicated site power “We’re planning to create our biggest and most ambitious, facility to date at Union Park which promises to set the tone for socially responsible data centres in the UK. We’re optimising power options to make sure what we build together with our clients will be configured to allow them to be as energy efficient and sustainable as possible.” Longcross Park, Chertsey - 30mw under design & build, 90mba dedicated site power “We’re creating a purpose built 385,000 square foot facility. The data centre campus is part of the Enterprise M3 zone and is the first commercial development on the 300acre Longcross Garden Village.” Alliance Park (Park Royal), London - under planning consultation, going live 2023 “We were delighted to acquire the Alliance Park site from Renault Retail Group. Our customers have an expectation for us to be both socially responsible, as well as provide best-in-class, market leading data centres in the locations where we can have the greatest impact. The exciting acquisition of Park Royal, our third in London, not only supports Ark’s own sustainability commitments but also empowers the customers we serve by helping them to honour their own carbon reduction goals.”

ARK DATA CENTRES

“There’s a great quote from a famous speech that Theodore Roosevelt gave at the Sorbonne in 1919: “It is not the critic who counts; not the man who points out how the strong man stumbles, or where the doer of deeds could have done them better. The credit belongs to the man who is actually in the arena, whose face is marred by dust and sweat and blood; who strives valiantly; who errs, who comes short again and again, because there is no effort without error and shortcoming; but who does actually strive to do the deeds; who knows great enthusiasms, the great

devotions; who spends himself in a worthy cause; who at the best knows in the end the triumph of high achievement, and who at the worst, if he fails, at least fails while daring greatly, so that his place shall never be with those cold and timid souls who neither know victory nor defeat.” “I like to think that at Ark, we and our partners are that man striving to instigate the change that can create a Darwinian moment for the planet.”

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NET ZERO

July 2021

NET ZERO

The Chemical Industry is Ready for net-zero Sustainability talks with chemical company CEO Tom Van Aken of Avantium about reaching net-zero WRITTEN BY: HELEN ADAMS

vantium, based in Amsterdam, is a trailblazer in renewable and sustainable chemistry. As the dutch company evolves into a circular economy, Avantium’s goal is to develop products to aid the world’s independence from fossil fuels and net-zero emissions through manufacturing sustainable options. Feedstocks in the chemical industry Avantium mixes sugar with feedstocks, such as agri-food (corn) or non-food biomass (wood), with chemicals to create 100% plant-based plastic PEF. Ray Technology™ catalytically converts industrial sugars to plant-based MEG (mono ethylene glycol) and DAWN and converts non-food biomass into industrial sugars and lignin, which transitions the chemicals and materials into non-fossil resources.

This is used to manufacture textiles and packaging. Once used, it degrades much faster than traditional PET plastic. “We want to be fully circular”, says Tom van Aken, CEO at Avantium. “We want to make sure we only use sustainable feedstocks. It is an extremely ambitious plan. If I look at the employees we have here; it starts with ourselves before we tell everyone else how to do things.” A fossil free world Tom van Aken has been the CEO at Avantium since 2002, after graduating from Utrecht University. “I am a chemist by trade, and Avantium has been a really interesting journey. We wanted high-value products and to make them in a way where they could be recycled. That got us where we are now. What happens if a PEF bottle ends up in a landfill? It biodegrades.” sustainabilitymag.com

PURPOSE LED, PERFORMANCE DRIVEN

The most comprehensive sciencebased animal nutrition solutions, intelligently scaled to solve the sustainability and commercial challenges we face in transforming how we feed the world. Stay connected at dsm.com/anh @dsmfeedtweet dsmanimalnutrition linkedin.com/showcase/dsm-animal-nutrition-and-health/

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By 2030

100%

of Avantium’s advocacy will focus on transforming the chemical industry to become circular and fossil-free

By 2030

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of Avantium’s plant-based feedstock for Renewable Polymers and Renewable Chemistries will come from sustainable sources

“ A lot of people talk about abandoning fossil fuels, but no one is willing to do it. A lot of young people have” TOM VAN AKEN

CEO AT AVANTIUM

The company has ambitions for more sustainable initiatives, from bicycles to achieving net-zero. Avantium's slogan is "We believe in a fossil-free world. Let's go!". What does such a world look like to Tom van Aken?

“When we came up with the slogan, we had quite an intensive debate, and we decided that that’s what we are about; there is a tremendous need for change”, Tom explains. “We started thinking about the plastic and chemical industry, without the dependency on fossil fuels, but we need the consumer to change with us.” Avantium employs over 200 people across 18 different nationalities within the company. Despite the uncertainty of the past year, Avantium has worked to support those working from home and those who are needed at work sites. “That was a different year than what we had all expected! We have significant measures to help everyone work from home. We have tried to keep in touch as best as we can”, says Tom. “A significant number of people had to come to our plants. We helped sustainabilitymag.com

NET ZERO

Avantium and Cosun Beet Company join forces

July 2021

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them do so safely… but there was a lot of uncertainty. We have the inconvenience of travel too, as we cannot bring new materials to market. We deal with it the best way we can, but it has been really challenging. My role as CEO is to connect with people, and it helps that I’m a positive person, but these are extraordinary times.”

Avantium Avantium’s goal is to develop products to aid the world’s independence from fossil fuels and net-zero emissions.

NET-ZERO AT AVANTIUM “We have actually launched a new sustainability plan for the company. We call it “Chain Reaction 2030”, explains Tom. Avantium will deliver net-zero carbon emissions from their direct and indirect emissions, aligned to limiting global temperature rise to 1.5°C. In order to achieve this, Avantium plans to focus on: • Developing and implementing greenhouse gas reduction and climate resiliency strategies. • Lowering our GHG footprint by increasing energy efficiency and driving investment in renewables. • Exploring ways to store away emissions that cannot be avoided, either through natural or technological offsetting schemes. The company will: • Switch to 100% renewable electricity • Calculate direct GHG emissions • Review alternative heating systems on sites • Investigate offsetting options for emissions that cannot be avoided But things are still standing in the way of Avantium reaching this target. “All new things are more expensive”, explains Tom. “So, we want to scale up so that the cost comes down, and in this economy, sustainability is fashionable.” Strength and performance Avantium's mission is to: "Aid the transition to a fossil-free world by developing groundbreaking products", and the company has created some standout items, including a PEF biodegradable Carlsberg bottle. “PEF [is] a combination of paper and bioplastic,” explains Tom. “The paper gives the strength, and the performance is the bioplastic. PEF does not impact taste, and sustainabilitymag.com

NET ZERO

“ My role as CEO is to connect with people, and it helps that I’m a positive person, but these are extraordinary times” TOM VAN AKEN

CEO AT AVANTIUM

July 2021

the visual is very clear. Of course, it’s nice if the customer sees something that they like, and it’s good for the planet.” As detailed in Sustainability’s interview with NAVEX Global’s Karen Alonardo, environmentally positive moves are more popular in the Millennial generation. What would Tom say to other CEOs and businesses who are considering abandoning fossil fuels? “I don’t think there are many that are. Let’s make sure that we increase the number of CEOs that do. I’d talk about the way that we are using materials now, which is not sustainable. It requires more innovation and challenge. Part of my life is to change people

Plant-based plastic Avantium mixes sugar with feedstocks, such as agri-food or non-food biomass, with chemicals to create 100% plant-based plastic PEF.

to see what they can do. I think we can do so much better. A lot of people talk about abandoning fossil fuels, but no one is willing to do it. A lot of young people have. Talk about this with your children. What would you do for their generation?” It is this generation that will see the last drop of oil drained (assumed to be in the 2050s) and the last lump of coal burned (the 2060s). But is the planet prepared for this? “I think the interesting thing is, look at the automotive industry”, Tom says. “Everything was gas and diesel. Now everything is electric vehicles. We were talking about hybrid cars, now EVs. I am an optimistic

person. I think we [understand] what can happen in ten years’ time. We need more radical change and solutions. If people don’t change, they will be out. If you don't change in time, you are going to be out.” "Amsterdam is often heralded as the most sustainable city on earth - why does Tom think this is? “It’s a city where sustainability is very well organised", says Tom. “I’m happy that it’s high up on the list”, laughs Tom. “It’s a city where sustainability is very well organised. Within our company, we encourage people to use their bicycles. I use an electric bike. To get to zero CO2 emissions, that is what is required.” A fossil-free, net-zero world? Let's go. sustainabilitymag.com

ATNORTH

Foregrounding Sustainability in Modern Colocation Data Centres WRITTEN BY: SCOTT BIRCH 94

July 2021

PRODUCED BY: LEWIS VAUGHAN

sustainabilitymag.com

ATNORTH

atNorth CEO Eyjólfur Magnús Kristinsson expands on the data centre company’s support for high-density computing with 100% renewable energy

celandic high-density computing firm atNorth is leading the charge for carbonneutral colocation data centres. CEO Eyjólfur Magnús Kristinsson, previously Managing Director at Advania, which acquired the company as a smaller side project in 2011, has been CEO since that point, but devoted himself full-time to the role in 2018 as the company rapidly picked up the pace. “The reason for that is the exponential growth of data,” he explains. “And with that comes the need for computational work to crunch that data. That’s why we’re seeing the data centre industry growing by around 16% annually at the moment, which I expect to continue for at least the next five years.” Within the data centre industry, atNorth focuses on a specific part of the market particularly suited to the infrastructure it provides across its facilities in Sweden, the Netherlands, Belgium and the UK. “We specialise in energy-hungry workloads that require a lot of cooling - typically these workloads include things like high-performance computing, artificial intelligence, deep learning, big data and so on. We take care of everything within the high-performance computing arena with on-demand computational resources.” A key part of atNorth’s offering is its commitment to using 100% sustainable energy in its operations, and reducing energy use in general with initiatives such as using the naturally colder air of its

July 2021

Eyjólfur Magnús, Chief Executive Officer

ATNORTH

sustainabilitymag.com

ATNORTH

“ We’re seeing the data centre industry growing by around 16% annually at the moment” EYJÓLFUR MAGNÚS KRISTINSSON CEO, ATNORTH

July 2021

northerly locations for cooling purposes. “Sustainability is a fundamental strategy and the company's mission is providing sustainable and energy-efficient solutions to its customers. As we provide a home for energy-intensive workloads, it’s important to use energy from renewable resources, but we've also designed our data centres from the ground up so we can use less energy in general. We offer customers flexible solutions to minimise their carbon footprint - not only in terms of energy but also in terms of space and infrastructure needed.” That focus on sustainability is not only to the benefit of its customers. “For our newest project in Sweden, we are working with the

ATNORTH

EYJÓLFUR MAGNÚS TITLE: CHIEF EXECUTIVE OFFICER

local district heating company, and using the excess of heat from the data centres to warm local residents.” That new data centre is located in Kista, Stockholm, and complements atNorth’s existing offering. “We are catering to both the local market in Stockholm, which is extremely rich in high-tech companies working within our focus area of highintensity workloads, but also the wider European market of similar companies that are looking for international colocation,” says Kristinsson. The location also represents another rich resource of renewable energy access, though the company goes further with its own innovative techniques. “For

EXECUTIVE BIO

COMPANY: ATNORTH Chief Executive Officer of atNorth December 2017, Eyjólfur Magnús, most often called Magnus is a data centre veteran. Magnus’s data centre journey did not start by taking over as CEO of atNorth in 2017 as his previous role as the managing director of infrastructure, hosting and core services at Advania since 2010 and was responsible for the Advania acquisition of Thor Data Center in 2011. Advania’s data centre business thrived well under Magnus’s leadership as a division of Advania until its demerger from the Advania Group in 2017, then named Advania Data Centers the company grew to become among the fastest-growing data centre companies in Europe. Advania Data Centers became atNorth in 2021. Prior to joining Advania, Magnus has served in leadership roles at technology companies such as Vodafone. Magnus studied engineering at the University of Iceland and did his master’s in engineering at DTU, the Technical University of Denmark.

Sustainability Performance

Customized Turnkey Infrastructure Containment Solutions Through a Single Provider Providing Quick Installation and Full Support Across EMEA

Visit www.subzeroeng.com

Subzero Engineering: Sustainable solutions for data centres Consultancy and customised containment - which complement the dynamic data centres they work with - is the global calling card of Subzero Engineering Subzero Engineering recognises data centres are dynamic environments, so they have created customised containment solutions which make energy-efficient savings for their customers. Subzero Engineering is the industry leader in bespoke containment solutions using computational fluid dynamics (CFD) to show measurable results for their customers which includes the following savings; $300 million in energy costs, 1.5 billion gallons of water, and three million tonnes in the reduction of carbon dioxide since 2015. “We believe that a data-driven approach is essential to drive data centre performance and efficiency,” commented Andy Connor, Director EMEA Channel, who points out they offer CFD checks for free. “We help our customers do this with our customised, streamlined and energy efficient containment solutions which result in a lower total cost of ownership and reduced carbon emissions.” Subzero Engineering has manufacturing facilities in Salt Lake City, US, where they were founded in 2005 (starting out as a data centre airflow consulting company), and in Dublin, Ireland.

They are now partnering with atNorth in Iceland to provide their hot and cold aisle containment solutions. “We have a large team of leading industry experts that help us operate globally, and at speed, and we work with customers ranging from the hyperscalers and colocation communities through to well-known brands in sports, retail, HPC, and AI,” said Connor.

Balance performance and efficiency “We started life back in 2005 as a CFD consultancy when data centres were using raised floors and experiencing issues with leakages. Our software solution showed customers how they could analyse the infrastructure and improve efficiency. “Fast forward 16 years and that approach has stayed with us. We’re an engineeringled solutions provider who helps businesses reduce their carbon footprint and operating costs - but it all starts with the data we produce from our CFD reports.”

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ATNORTH

“ The company's mission is providing sustainable and energy efficient solutions to its customers” EYJÓLFUR MAGNÚS KRISTINSSON CEO, ATNORTH

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instance, we will reuse the heat generated in the data centre and transfer it to a different facility approximately 100 meters away. This obviously provides our environmentally conscious customers with best of class running on real renewables only, high energy efficiency and we are also contributing to Stockholm's goal of full carbon neutrality before 2040.” The company’s operations are supported by the work of a number of key partners. “Our partner ecosystem is critical,” says Kristinsson. “HPE and Intel, for instance, have been working with us on the customer end, supporting us in various cases to provide on-demand solutions. We have had access to their newest technology, and support them in turn with testing. They have certainly become very valuable and strategic partners for us.” atNorth also works with valued partners on the infrastructure end of the equation. “Subzero and Systemair provide

“ I'm sure that the pandemic has imposed irreversible changes on our business - both in terms of customer service but also how we approach our customers” EYJÓLFUR MAGNÚS KRISTINSSON CEO, ATNORTH

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“ We are specifically catering to this fastest-growing segment within the tech sector” EYJÓLFUR MAGNÚS KRISTINSSON CEO, ATNORTH

us with cooling technologies. We've tried several solutions in cooling, and when it comes to natural airflow cooling, Systemair and Subzero have proven to be the most reliable providers.” Like all companies worldwide, atNorth has had to reckon with the ongoing COVID19 pandemic. “Last year we needed to adapt to a new reality and we will continue to do so. For us, this has meant finding new ways of providing the services we do. Strict travel restrictions meant that we needed to find new ways of meeting with our potential and existing customers, who rely on us to service the equipment they 106

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host with us.” Kristinsson expects some of the changes the pandemic has wrought to become permanent fixtures. “I think it’s strengthened the relationship that we have with our customers. I doubt that many will revert to the old mode of flying in their own technicians. I'm sure that the pandemic has imposed irreversible changes on our business - both in terms of customer service but also how we approach our customers.” Partly to thank for its resistance to the pandemic is the culture present at the organisation. “I like to empower my employees and listen very carefully to everyone's ideas and thoughts,” says

ATNORTH

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Kristinsson. “We have incredible talent in our company among our employees, and I basically see my role as being to nurture that talent. It’s a very Nordic leadership style, which works particularly well in a small company like atNorth. It's very important to enhance the dynamics of a flat structure with openness and transparency, so everyone can know how important they are to executing our strategy.” Looking to the future, Kristinsson expects high-density workloads to continue to play a vital role in powering the rapid growth of the data centre sector. “It’s all derived from emerging technologies such as 5G,

IoT, AI, deep learning and more. We are specifically catering to this fastest-growing segment within the tech sector.” He’s clear that atNorth will continue to ensure that sustainability remains at the heart of the conversation through its sector-leading solutions. “We want to provide the best service to our customers in this space, while obviously using renewable energy only to do, and give them higher energy efficiency than competitors.”

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+ On Supply Chain Sustainability, Risk, and Diversity Pierre-Francois Thaler, co-founder and co-CEO of EcoVadis, and Jim Bureau, CEO of JAGGAER, tell Sustainability about the benefits of a diverse and sustainable supply base WRITTEN BY: HELEN ADAMS 108

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hen I was a kid, I had an opportunity to go to Glacier National Park”, says Jim Bureau, CEO of digital procurement software company, JAGGAER. “I took my kids to the exact same spot years later, and it was unrecognisable. How do you stop this from happening?” As the CEO of JAGGAER, Jim Bureau knows the importance of building a sustainable supply base and how to forge strong relationships with supply partners. He has also done some serious thinking about how we can stop glaciers melting away, especially since deepening JAGGAER's

relationship with business sustainability ratings provider, EcoVadis. JAGGAER’s clients use EcoVadis’ capabilities to help them select their sustainable supply chain partners. “Between EcoVadis and JAGGAER, we help our mutual customers take responsibility for their suppliers’ sustainability practices. We’re passionate about showing them how to use the right tools. When the entire network — buyers and suppliers — work together like this, we’re able to drive positive change starting in the supply chain”, says Bureau. sustainabilitymag.com

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Sustainable Procurement Practitioners: Instilling Sustainability Through Global Supply Chains

“When the entire network—buyers and suppliers— work together like this, we’re able to drive positive change starting in the supply chain” JIM BUREAU

CEO OF JAGGAER

“Our role is to help procurement professionals look more deeply at sustainability-related topics”, agrees PierreFrancois Thaler, co-founder & co-CEO of EcoVadis. “We help buyers make better decisions about which partners they want to work with instead of just browsing the same old criteria of price, quality and on-time delivery.” Thaler co-founded EcoVadis in 2007, with the aim of providing reliable environmental, social and ethical performance ratings of suppliers for procurement teams. More

than 600 multinationals use EcoVadis’ ratings each day to reduce risk in their purchasing decisions. Supply chain risk in the spotlight Following the COVID-19 pandemic and the Suez Canal blockage, supply chain risks are entering a new era of prominence, not only for procurement teams, but also in the public eye. EcoVadis is working to improve sustainable supply chains by helping procurement teams with reliable indicators and engagement tools that scale globally. sustainabilitymag.com

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“We are providing ratings and metrics in a quantifiable way”, explains Thaler. “This of companies helps drive change in a take massive way. Corporate sustainability criteria into buyers can move a portion account of their purchasing spend to when making purchasing sustainable businesses, like decisions those who value health and safety, the environment, and human rights.” To spread awareness and ignite discussion, EcoVadis run their annual Sustain conference. Sustain 2021 was attended by over 3,000 virtual attendees and featured 50 experts - including former US Vice President Al Gore - who discussed sustainability and procurement, sourcing and supply chains. Thaler hopes that Sustain will encourage business leaders to make the necessary changes to increase their sustainability practices and take the risks seriously. “The point of [the] Sustain conference is for everyone to step up their game and do more”, Thaler says. “Sustainability is the new number one priority for many businesses across the world. People used to think that sustainability was only for luxury companies. In the last 12 months, we have seen this shift substantially.” Every business has experienced a shift over the past year - but JAGGAER and EcoVadis have found some positive aspects of change in their businesses. “COVID-19 has given us a deeper understanding of and empathy for what everyone is dealing with”, says Bureau. “We saw how people had to juggle their personal lives with work. It’s given us all a sense of empathy.” So wherever the different teams are working from, what does sustainable procurement mean? “There are many different levels to it”, explains Bureau. “Everybody has philanthropic initiatives - like planting trees

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Sustain 2021 Sustain 2021 was attended by 1,600 virtual attendees and featured 50 experts who discussed sustainability and procurement, sourcing and supply chain.

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when you get a new customer or making a donation to charity. But we think about how companies can make an impact on a larger scale through their supply chain. Sustainability became the number one topic for chief procurement officers.” Many CPOs celebrated this year’s Earth Day on 22 April. The theme was ‘Restore Our Earth’. EcoVadis helps other businesses build corporate social responsibility and sustainable procurement, but what does restoration mean at EcoVadis? “Building back better, with sustainability playing a big part”, says Thaler. “We have seen a big change in how investments are made. I think we are starting to see the same in procurement. If you want to be carbon neutral, there will be a massive shift in what corporations are doing. We're seeing more and more customers looking to manage their Scope 3 carbon emissions by engaging their suppliers in the decarbonization journey." Thaler says sustainable supply chains make an impact on an organisation’s overall climate change goals. “As a global rating agency, we see first-hand how few of the companies in the supply chain are really prepared for, or engaged in, GHG/carbon emissions reporting and reduction − especially among SMEs, where it’s less than 15%. These are the insights and tools we provide our customers all over the world”, he says. Forging a diverse supply base Supplier diversity helps organisations reduce risk and improve sustainability outcomes. “Forging good relationships with supply partners is a long-term strategic initiative”, says Bureau. “Without attacking diversity and inclusivity across the supply chain, it will be difficult to move the needle or make any headway.” sustainabilitymag.com

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“ People used to think that sustainability was only for luxury companies. In the last 12 months, we have seen this shift substantially” PIERRE-FRANCOIS THALER

CO-FOUNDER AND CO-CEO OF ECOVADIS

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In a globalised world − and now a virtual one − strong relationships with supply partners can be built across time zones and borders. While excellent for public image, Bureau believes that building strong relationships across a diverse supply base mitigates potential problems. “It reduces your risk”, he explains. “If you’re global, it will have a real effect on business continuity and operational efficiency.” But a ‘diverse’ supply base has two meanings. A geographically diverse supply base has a range of different locations, all working in unison and able to pick up for each other when delays or disruptions occur. It also refers to a supply base with

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individuals who can bring fresh innovation in green technology right ideas, other points of view, different now,” says Thaler. experiences and niche customer “Today you can scan the goods at understanding into this mix. a store to see where the products are of consumers “After carbon, diversity and from. The traceability and visibility are more likely to buy from a inclusion are a very big topic”, are making people accountable: company with counters Thaler. where are you getting this from, a reputation for sustainability Diversity and inclusion are how are you growing this, do they than from a sustainable goals that are a lot more neutral company have a target to be emission-free?”, visible to consumers, than going questioned Bureau. carbon neutral. With social initiatives such So how can climate policy affect as The Valuable 500, companies want to be supply chains? seen on the right side of history, welcoming “It needs to be on a global scale”, states minorities and the underrepresented. They Thaler. “The EU is planning ‘The EU Carbon also want to implement climate policies Tax’, which will tax every product. This in their supply chains. “There is so much will have a significant impact on supply chains and the cost of products for many companies.” “Policy is interesting”, agrees Bureau. “There is still plenty of opportunity for improvement. We can change our policy in one country, but if others do not follow suit… It takes everybody.” Ultimately the winners in this new business environment will be those who embrace sustainable approaches, including managing their impact on the climate. “If your competitors do not [implement climate policy in their supply chains], then you will expand in market share. You will grow your revenue. Sustainable supply chains are a differentiator”, explains Thaler. “Supply chain sustainability and diversity delivers high impact across the business”, agrees Bureau. Following the various calamities of EcoVadis 2020, supply chain risks are entering a new era of global concern. As the planet unites against climate change and for More than 600 multinationals international trade, strong relationships use EcoVadis ratings each day can be built on the desire to protect to make risk-free purchasing the planet, maintain empathy and decisions. mitigate risk.

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SCHNEIDER ELECTRIC LEADS SUSTAINABILITY CHANGE WRITTEN BY: DOMINIC ELLIS

PRODUCED BY: LEWIS VAUGHAN

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Schneider Electric is proud to be named the world’s most sustainable company – however, as Natalya Makarochkina explains, its journey to drive efficiencies and cut emissions has only just begun

Natalya Makarochkina

chneider Electric has been quietly but determinedly embracing sustainability for the last 20 years and its efforts were recognised when it was awarded the prestigious title of ‘The World’s Most Sustainable Company’ by Canadian media and research company Corporate Knights in January 2021. “It was a great honour to receive the award,” reflects Natalya Makarochkina, Senior Vice President, Secure Power Division, International Operations, after it jumped from 29th place the previous year. “It proves that every time we define a target, we fulfil it and lead by example.” Five months on, you won’t find any complacency among Makarochkina nor her peers. The French company, which came fourth in Gartner’s more recent annual ranking of corporate supply chains, is busy focusing its attention on two key strategies simultaneously – aiming to eliminate its own climate footprint by 2025 via its Sustainability Impact Program, and driving down emissions amongst its customers across more than 100 countries. “We are still at the early stages of our transformation programme – we want to cut CO2 emissions among our top 1,000 suppliers by 50%,” she said. “Future sustainability is key to us and we want to conserve our resources and protect our planet. Schneider Electric will continue to develop new products and ideas, and continue our goal of sustainability.” To many, Schneider Electric is the first name in power management, whether that’s medium or low voltage or secure power, and automation systems – and sustainability is now linked to “multiple customer wins,” as cited within its Q1 results statement. It now earns 70% of its revenue from, and directs 73% of its investments toward, sustainable solutions. sustainabilitymag.com

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Its ‘Life Is On’ brand strategy, in which the benefits of connectivity and efficiency were first promoted six years ago, seems more pertinent than ever as countries now

“ We are still at the early stages of our transformation programme – we want to cut CO2 emissions among our top 1,000 suppliers by 50%” NATALYA MAKAROCHKINA

SENIOR VICE PRESIDENT, SECURE POWER DIVISION, INTERNATIONAL OPERATIONS FOR SCHNEIDER ELECTRIC

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place greater emphasis on sustainability and meeting net-zero targets. For data centres, be they traditional or micro edge, Schneider’s expertise and knowhow are critical to success. At the moment, data centres consume 1% of global electricity use, but it’s forecast to increase significantly as demand for data grows. “The more data we receive, the more energy we need to process it,” she said. “Previously everyone thought that everything would go to cloud. Now we understand that traditional, hyperscale and colocation will continue to expand. We need more transformation at the Edge.” During COVID, it has seen the emergence of many Edge solutions – and rise in ‘plug-and-play’ and prefab concepts. “It’s extremely important to deliver software too, enabling customers to not only observe the centre, but analytics to make sure they can foresee the potential risks and take the appropriate measures in advance,” she said,

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adding that hybrid solutions have been most in-demand. Micro Edge Data Centres are definitely growing and this will pose challenges for the industry at large. “The problem with Edge is that while individually, they consume a small amount of energy, if you look at the total amounts they consume, it’s huge amounts of power – it can be twice as much as traditional data centres.” It recently expanded its EcoStruxure™ Micro Data Center C-Series with the new 43U, offering the greatest capacity in the company’s commercial and office line of micro data centers. By helping customers deploy IT simply, securely, and reliably in any edge computing or commercial environment, the new solution is our largest, fully equipped model, eliminating the need for a purpose-built IT room, saving up to 48 percent on CapEx in 20 percent less time. The integration of EcoStruxture IT yielded 35% in energy savings and 30% cost savings in maintenance for the largest data centre in North Africa. Another new addition is its Edge Software and Digital Services programme, a complete suite of benefits, support tools and certifications that enables IT solution providers to create a managed power services practice.

• Fostering equal access to digital learning for 24,000 students in India by powering 100 co-educational schools with solar energy

TITLE: SVP, SECURE POWER DIVISION, INTERNATIONAL OPERATIONS INDUSTRY: ELECTRICAL & ELECTRONIC MANUFACTURING LOCATION: MOSCOW Natalya Makarochkina is the Senior Vice President (SVP) of Secure Power at Schneider Electric, on a mission to lead more than 1000 seasoned professionals in delivering sustainable, innovative ways to support customers and partners in their digital transformation. Natalya is a passionate executive with strong expertise in leading successful transformations within IT and Energy Management industries. Previous leadership roles include various senior management and sales positions across international technology companies comprising HPE, Philips, Oracle, 3COM and others. Secure Power provides complete physical infrastructure solutions for data centers, distributed IT environments, and industrial applications. As SVP position Natalya constantly empowers business success within multiple geographies – Asia, Pacific, India, Middle East, South

EXECUTIVE BIO

‘Glocal’ approach and onset of Electricity 4.0 It is important for Schneider Electric to be seen as international and local, she adds. “It’s a very flexible company and adapts to the needs of the customers. It’s not just about having offices in different parts of the world, but R&D and factories too.” Examples of local projects so far include:

NATALYA MAKAROCHKINA

America and CIS. Natalya holds an Executive MBA from the University of Antwerp, and Masters degree from the Higher School of Economics.

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SCHNEIDER ELECTRIC’S 6 SUSTAINABLE COMMITMENTS 1. 2. 3. 4. 5. 6.

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Creating a climate-positive world Efficient resource consumption Credibility principles Equal opportunities Inclusion of all generations Strengthening communities

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“Previously everyone thought that everything would go to cloud. Now we understand that traditional, hyperscale and colocation will continue to expand. We need more transformation at the Edge” NATALYA MAKAROCHKINA

SENIOR VICE PRESIDENT, SECURE POWER DIVISION, INTERNATIONAL OPERATIONS FOR SCHNEIDER ELECTRIC

• Transition to a 100% electric company car fleet in Norway by 2023 • Encourage Korean employees to support the shift to electrical vehicle • Add 150 circular product references to Schneider ‘s internal shop catalogue for employees in France. • Increase five-fold Schneider’s spend with indigenous-owned suppliers in Australia as part of the Reconciliation Action Plan • Give electrical products a second life through donations to an online marketplace for educational purposes, and to improve the electrical installations of families at risk of energy poverty in Spain Natalya explains that ‘Electricity 4.0’encompasses electric and digital to create a sustainable future. “It’s really ‘green energy’, using it in the most efficient way,” she said. “It will require a lot of enabling supply and demand efficiency and lifecycle software. It’s extremely important that customers can really integrate digital products and services, where they will require a lot of saved data, moving at high speeds. We try and ‘future proof’ our customers.” sustainabilitymag.com

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There are four defined needs for future data centres – Sustainable, Efficient, Adaptive and Resilient. They will need to be achieved through cost optimisation and reducing the risk of downtime. How do you see the industry evolving in 2021? Sustainability will remain top of the agenda, and it will become increasingly important for companies to assess and target the value chain, and Scope 3 emissions. Tech trends include ‘digital first’ and ‘remote

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first’ models, which will offer more valueadd experiences; we also need to look at integrated and sustainable supply chains, which will allow customers to have scalable digital experiences. How important is technology in driving sustainable practices? It’s extremely important, for private and public sectors. We have developed a lot of software and technology never stops. I believe that sustainability is a priority because it’s key to the next generation – and that’s why it’s core to Schneider’s DNA.

DID YOU KNOW...

WHAT ARE THE TOP TRENDS WITH ELECTRICITY 4.0?

SCHNEIDER ELECTRIC

“One of the challenges is the multi-layered approach. Electricity is everywhere so we must have good software that connects the dots. Customers are not just looking at prices but partners that can reduce carbon.” Last year was challenging, but the benefits of digitization allowed people to connect and businesses to stay operational, she adds. More companies, especially in the industrial sector, are now entering the market at much faster speeds, as companies seek ‘quick win’ solutions. Industry 4.0 is being characterised by connectivity, data and computational power; analytics and intelligence; human-machine interaction and advanced engineering. “We’ve also seen a big increase in e-commerce – this will require more energy, and companies will need to be more sustainable, resilient and efficient. It will be much quicker than the last 20-to-30 years,” she said. US ecommerce forecasts have been revised upwards with 18% growth expected in 2021, and growth in other regions, such as Sub-Saharan Africa, are being driven by rising mobile penetration.

“ It’s extremely important that customers can really integrate digital products and services, where they will require a lot of saved data, moving at high speeds” NATALYA MAKAROCHKINA

SENIOR VICE PRESIDENT, SECURE POWER DIVISION, INTERNATIONAL OPERATIONS FOR SCHNEIDER ELECTRIC

The trend to ‘building back better’ is seeing major changes in the Data Centre industry. Leading Edge Data Centres, for example, are bridging the divide between regional and metropolitan Australia – and were acknowledged at the Datacloud Global Awards as a winner of The Edge Award 2021 . Another byproduct from the crisis has been the peak in online education, so learning has become more widely distributed. “That will stimulate digitization in other areas,” she said She signs off our interview on an optimistic note – confident in Schneider’s ability in delivering solutions to meet sustainability challenges. “It is not by chance that we are called the most sustainable company in the world. I’m confident we will meet the targets.”

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GOLDEN SHOT: VACCINES ARE THE ULTIMATE INJECTION OF SUSTAINABILITY 126

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Protection from COVID-19 has reinforced sustainability as an agenda-topping priority for businesses across the globe WRITTEN BY: JOHN PINCHING

he other day this author bore witness to an extraordinary conversation between two ‘soccer dads’, who had convened to watch their children play football. What transpired was as natural as discussing their team’s battle for promotion: “I had Pfizer, and couldn’t believe how easy it was, how about you?” “I had the Oxford/AstraZeneca one, but I’m not worried — I feel indestructible.” Only 18 months ago, this conversation would have been inconceivable. Not only was an international pandemic unthinkable, but the idea that ‘Nigel and Steve’, a couple of replica-shirt-wearing blokes, who enjoyed a pint, could be casually name-checking pharmaceutical companies and displaying knowledge of the life sciences industry, would have been surreal to say the least. This was, however, ‘vaccine chat’ as we now know it. Folk shooting the breeze about a life-saving, life-affirming injection. This was about the travails of humanity, sure, but it also represents a fundamental part of the ‘new reality’ in which we exist. The highlighted exchange, and millions of others, are unfolding throughout our communities, and while it is undoubtedly weird — relative to sustainabilitymag.com

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50 years of discussing the weather — it is also oddly magnificent. During an existential crisis, spreading the word about the myriad positive aspects of the coronavirus vaccination is a highly impactful wingman to public sector campaigns, while also providing an antidote (quite literally) to the wildfires ofanti-vaxx flimflam. It is proof, above all, that the human race is starting to consciously wrestle with the ultimate sustainability challenge — the continuation of humanity (and, of course, being able to ‘go down the pub’). It’s been a mesmeric event for humanity, yes, but the shot in the arm for the business superorganism should not be underestimated either.

Navigating new terrain Private sector ingenuity has been key to the emergence of a fast-tracked COVID-19 vaccination. Labwork, molecular wizardry, fundamental understanding of the virus and rebooted clinical trials unfolded at mind-boggling speed — all underpinned by the digital era. Essentially, a decade’s work was undertaken in a few months. While most of the human race were fighting each other over linguine or emptying supermarket shelves of toilet roll, in a post-apocalyptic frenzy, Pfizer/BioNTech (or, as I overheard someone say, ‘Pfizer/Beyoncé’), Moderna, Johnson & Johnson, Oxford University, AstraZeneca and a host of other pharma companies and institutions were taking on the conundrum of a lifetime. Make no mistake, if all this had happened in 1995 or at the turn of the century, or even 2005, the prognosis for humanity would sustainabilitymag.com

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have been very bleak indeed. It says something for those organisations involved that they were able to ignore the noise and create a vaccine as part of a ‘quiet revolution’ — with the fanfare only beginning with the roll out. Indeed, while the bravery of international healthcare professionals cannot be underestimated, it is unlikely that people would line the streets and applaud the companies responsible for the vaccine. And, yet, without this beacon to sustainability thousands of people every week would still be perishing — panic would reign on the streets of our communities, businesses would disintegrate and life as we know it would grind to a halt interminably. It crystallises a truth that dare not speak its name – that continuity is a joined up approach. Sustainability is not a flag flown exclusively by public organisations, but a cohesive enterprise and an established culture born out of the pragmatism of the public sector and the future-proofing pyrotechnics of its private sector allies. This requires a narrative shift, which fully appreciates the role of tech, energy, healthcare, construction, fashion and food companies in the bigger sustainability picture. In this regard, it is as much about solidarity as distinction. The evidence of joint-working or partnership could not have been more compelling than in the last few months. Throughout Europe, the development of the vaccine has gone from private laboratories and manufacturers, to being administered by public sector healthcare staff. It has demonstrated quite profoundly that initiative and innovation, even under the most extreme circumstances, can be a global force for good, while also igniting our passion for sustainability. 130

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SUSTAINABILITY

Global Citizen - How COVID-19 Will Affect the Sustainable Development Goals

Back to the future The COVID-19 saga has been a stark reminder of, not just of our collective fragility as a species, but also the enduring requirement of people’s ability to control, fuel and sustain the machines of the corporate and commercial ecosystems. The threat posed by the virus, was a threat to everything we have built; all the inventiveness, the innovation and the vast leaps of faith that have fired the pistons of global industries and lubricated the cogs of innumerable companies throughout the world. While immediate agility and precautions have provided a sticking plaster, it is only the vaccine that has yielded a true salvation and provided Chief Sustainability Officers with a demystifying agent when it comes to plotting the medium to long-term functionality of organisations. There is no doubt, the emergence of the vaccine is the sustainabilitymag.com

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“ Make no mistake, the emergence of the vaccine is the single greatest sustainability milestone of the last 100 years. End of.”

single greatest sustainability milestone of the last 100 years. End of. Digital prowess has been at the epicentre of this remarkable transformation. In sync with the march toward a tangible, exhilarating future; one which isn’t clouded by face coverings or bizarre pavement navigation, has been the participation of people. Motivated by curiosity, altruism or intrepidness, the exponential rise of ‘Patient 2.0’ has been critical to the vaccine drive. 132

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Wearables, healthcare apps and digital medicine have enabled the instant processing of biological events by laboratories and clinical trials; accelerating through interpretive algorithms in a fraction of a second. Thousands of people across the globe are much more intune with their own health, knowledgeable about the wider healthcare stratosphere and are more than willing to invest in the longevity of life, be it there’s or other people’s. Consequently,

SUSTAINABILITY

individuals are combining on a global basis to yield hitherto unimaginable levels of data. Giant leap for mankind The management of business sustainability in a post-COVID-19 world is constantly evolving and companies will need to be prepared; new chapters in company handbooks will be composed and new chapters in the history of organisations will be written. We are at

a unique moment in corporate history and we get it wrong at our peril. In terms of diversity, there are also emerging ‘duty of care’ issues which fall under neo-corporate social responsibility. Some people within minority groups relating to ethnicity, religion or condition, have completely understandable concerns or perceptions about the vaccine, many based on previous experiences of discrimination. The key is to open the channels of communication and impart sustainabilitymag.com

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information on the vaccine which is honest and, above all, empowering to every individual. The commitment to a diverse, sustainable workforce, is a commitment to a better world — and the need to embrace inclusivity has never been greater. There is an important distinction, however, between the need to be heard and malicious refusal to be vaccinated. All great discoveries are a reflection of society and the dangerous spreading of false information is unquestionably a manifestation of our times which could have a negative impact on business sustainability. There is an onus, as with any matter relating to health and safety, on companies to reduce or eliminate this risk. This means getting behind the vaccine and having the mechanisms in place which eradicate scepticism or recklessness. After all, someone who is refusing to receive the vaccine is no less dangerous than someone blithely setting fire to the carpets. Anti-vaxx culture could easily spread in the offices and corridors of our corporate infrastructure, which is why CSOs will already be hatching plans to handle a significant and highly dangerous minority which are explicitly opposed to the vaccine. It is worth recalling that when the first cinemas opened, early audiences thought the train on the film was going to burst through the screen, and they dived into the aisles to avoid it. Once they realised, however, that their fear was unfounded, and that the locomotive didn’t present any danger, they picked up their popcorn and continued watching the movie. The challenge for us is to convince the world that the vaccine train is taking us all back home, and no one should be left behind. sustainabilitymag.com

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CS s

As businesses move towards carbon neutrality and transparency in their diversity and inclusion policies, many are hiring a Chief Sustainability Officer (CSO) to oversee developments. Here’s our Top 10 leading the way WRITTEN BY: HELEN ADAMS

s the world adapts, new opportunities for employment arise, such as: social media coordinator, cybersecurity analyst, influencer, web developer and Chief Sustainability Officer. US engineering company, DuPont, made a radical, possibly laughable move in 2004, by creating the role of Chief Sustainability Officer. This job was taken by Linda Fisher, after she had previously worked for the Environmental Protection Agency. In the role of CSO Fisher was tasked with finding ways to improve DuPont’s sustainable practices. Generally, the job of a CSO ranges from providing progress reports, engaging with shareholders, leading engagement with customers, representing the company publicly and ensuring all employees

are aware of the company's sustainable development plans. The key responsibilities of the CSO role include leading the development of sustainable strategies and mitigating the risks associated with sustainable development (such as clean energy transition). Now, with the advance of renewable energy, popularity of achieving net-zero and the incorporation of diversity and inclusion across many industries, the role is taken seriously by businesses and consumers alike, although it is still occasionally lambasted as a PR move. Here are our Top 10 Chief Sustainability Officers leading sustainable change in their businesses: sustainabilitymag.com

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Rachel McEwen

Chief Sustainability Officer

SSE

Low-carbon energy developer SSE focuses on regulated electricity networks and renewable energy. Chief Sustainability Officer from 2019, McEwan also worked as SSE’s Director of Sustainability from 2014 and as Head of Sustainable Development from 2013. “One day I hope to spend all my time growing plants,” says McEwan.

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Virginie Helias

Chief Sustainability Officer

Procter & Gamble

Helias leads her team in incorporating sustainable innovations across P&G, following the life of products and how they can be good for consumers and the planet. Helias also works with leaders across businesses, brands and external partners, to: “Embed sustainable thinking and practice across everything the organisation does.”

TOP 10

Andrew Edlin

Head of Sustainability at

Müller

Dairy brand Müller is working towards responsible sourcing, reducing its environmental impact, supporting employees and creating healthier products. Head of Sustainability Edlin has embraced this work, describing himself as a “Passionate sustainability strategist [with a] focus on governance and delivery of environment, ethics, and responsible sourcing strategies.”

Elena Avesani

Global Sustainability Director

Oracle

Avesani has worked through the ranks at Oracle, a cloud technology company, previously being employed as a Principal Strategy Manager and Global Sustainability Lead. As Global Sustainability Director, Avesani drives ESG across Oracle and embeds sustainable solutions across the value chain, Product Lifecycle Management, analytics and transportation management, smart grids and Environmental Health and Safety. sustainabilitymag.com

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Yvonne Zhang

Dr. Saskia Juretzek

Senior Manager Sustainability

Allianz

Juretzek works with global leading insurance and asset management company, Allianz. There, she manages group-wide sustainability strategy, communication and governance development as well as peer learning and upskilling, local sustainability strategy and governance implementation. Juretzek also leads sustainability management lectures and co-founded Futurewoman.de which supports and promotes women in sustainability.

Lead Sustainability Director,

Deloitte

Management consulting company Delloite is working on increasing its sustainability outlook. From working with stakeholders to customers, Zhang’s job is to look at the potential risks. Zhang describes her role as: “Eliminating environmental and social externalities through legal and financial structuring, applying technology and contributing to new international standards.”

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TOP 10

Alok Mishra

Group Head - Sustainability

Export Trading Group

An Indian Institute of Technology graduate, Mishra has since gained 20 years of experience across sectors from Agribusiness to Food and Beverages. Now working in Sustainability, Mishra describes himself as: “Passionate about driving ESG agenda in large complex organisations”, where he manages their environmental impact and employee occupational health and safety.

Mongezi Veti

Executive Head Sustainability

Exxaro Resources

Exxaro Resources, a diversified resource group and the largest in South Africa, is recognised by JSE Limited’s index as a Socially Responsible Investment (SRI). “As mining winds down”, said forward-thinking Veti. “It’s important not to lose sight of the opportunities of rehabilitated mining areas. This could empower communities, leaving behind a positive legacy of alternative sustainable land use.” 142

July 2021

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Rebecca Marmot

Chief Sustainability Officer

Unilever

Prior to taking on the 2019 role, Marmot was Unilever’s Global VP of Sustainability. Unilever’s purpose “to make sustainable living commonplace” stands alongside the UN’s Millennium Development Goals, which ranges from improving maternal health to ensuring environmental sustainability to eradicating extreme poverty and hunger. “The scale and reach of companies such as Unilever mean we can both contribute to and benefit from this once-in-a-lifetime opportunity to improve society and the environment,” said Marmot of the Millennium Development Goals.

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146

July 2021

TOP 10

Jason Blake

Chief Sustainability Officer

PepsiCo

In his role, Columbia Business School graduate Blake works towards optimising water efficiency and making packaging which is either 100% recyclable, compostable or renewable, as well as reducing PepsiCo’s impact on the climate. “It’s really about getting that embedded into the business processes we have within PepsiCo, and it includes things like the Sustainable from the Start program, which is a platform that will bring sustainability upfront as we innovate”, said Blake.

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Sustainability Magazine - July 2021

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