Sustainability Magazine - July 2023

GOVERNANCE: THE OVERLOOKED FOUNDATION OF ESG SUCCESS THE RISE & IMPACT OF CHIEF DIVERSITY OFFICERS

ESG STRATEGIES FROM THE WORLD’S LARGEST COMPANIES

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EDITOR-IN-CHIEF

LUCY BUCHHOLZ

CHIEF CONTENT OFFICER

SCOTT BIRCH

MANAGING EDITOR

NEIL PERRY

CHIEF DESIGN OFFICER

MATT JOHNSON

HEAD OF DESIGN

ANDY WOOLLACOTT

LEAD DESIGNER

MIMI GUNN

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The Sustainability Team

FEATURE DESIGNERS

MIMI GUNN

SOPHIE-ANN PINNELL

HECTOR PENROSE

SAM HUBBARD

REBEKAH BIRLESON

JULIA WAINWRIGHT

ADVERT DESIGNERS

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DANILO CARDOSO

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KIERAN WAITE

SENIOR VIDEOGRAPHER

HUDSON MELDRUM

DIGITAL VIDEO PRODUCERS

MARTA EUGENIO

ERNEST DE NEVE

THOMAS EASTERFORD

DREW HARDMAN

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DANIELA KIANICKOVÁ

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MEDIA SALES DIRECTOR

CHARLIE MCGILL

MANAGING DIRECTOR

LEWIS VAUGHAN

CEO

With businesses competing to be the largest, wealthiest, and, nowadays, the greenest, it can be challenging to determine which ones are trustworthy and which are simply greenwashing.

B Corp certification was established to showcase the businesses truly committed to sustainability and has long been hailed as the gold standard for the corporate world. In this issue we investigate whether this still rings true.

Likewise, we pay tribute to the top 10 sustainability consultants of 2023, to highlight the firms going above and beyond to set and reach the very best ESG goals. Find out where the likes of BCG, KPMG, EY and many more rank on the list.

We also delve into the world of electrification. As more tools and insights are proving the benefits to fleets and their drivers when electrifying, we explore whether fleet managers are actually ready to adopt EVs.

LUCY BUCHHOLZ

lucy.buchholz@bizclikmedia.com

THE MEANING OF “SUSTAINABILITY” HAS BECOME SOMEWHAT UNCLEAR

SHOWCASING BUSINESSES TRULY COMMITTED TO SUSTAINABILITY”

CONTENTS

UP FRONT

014 BIG PICTURE

The Interceptor Barricade protecting the Caribbean Sea from a tsunami of plastic waste

016 LIFE TIME ACHIEVEMENT

Paulette Frank: Chief Sustainability Officer at Johnson & Johnson

020 FIVE MINS WITH Craig Coulter: Advanced Manufacturing & Mobility Sustainability Leader at EY

FEATURES

028 BRIDGESTON E

Beyond tyres: Bridgestone’s journey to mobility solution leader

048 ESG

Governance: the overlooked foundation of ESG success

058 SANOFI & MARKEN

Sanofi and Marken transform the pharma supply chain

076 DIVERSITY & INCLUSION

Breaking barriers: the rise and impact of chief diversity officers

118 TOP 1 0

ESG strategies from the world’s largest companies

Adam Elman Head of Sustainability EMEA Google

Musidora Jorgensen Chief Sustainability Officer Microsoft

Andrew New Chief Executive Officer NHS Supply Chain

Susan Spence VP, Sourcing Procurement & Accounts FedEx VP,

Geraint John VP, Interos Resilience Lab Interos

Kate Rosenshine Director - Global Azure Technology Sales Microsoft

Aravind Narayan Global Director - Sales Strategy & Execution Refinitiv (LSEG)

Sam Clarke Chief Vehicle Officer Gridserve

BIG PICTURE

The Interceptor Barricade protecting the Caribbean Sea from a tsunami of plastic waste Rio

Motagua, Guatemala

The Ocean Clean Up has installed two barricades on the Rio Las Vacas river near Guatemala City to control a torrent of plastic waste that has been flushed into rivers by flash flooding. The organisation fits waste control fencing in some of the highest polluting rivers on the planet to stop plastic reaching the oceans. Collected plastic is then passed to local partners and waste management companies.

Image: @TheOceanCleanUp

PAULETTE FRANK

CHIEF SUSTAINABILITY OFFICER

For over 25 years, Paulette Frank has worked for Johnson & Johnson (J&J), the world’s largest and most broadly based healthcare company. While building her highlysuccessful and decorated career, Frank became a passionate environmentalist, dedicated to driving the global agenda for a sustainable future.

This passion has led her to her current role as J&J’s Chief Sustainability Officer, where she oversees the creation and implementation of worldwide environmental sustainability and human rights strategies to improve the company and advance it towards a more resilient, equitable and sustainable future. She is also responsible for defining J&J’s strategic direction and for identifying and supporting solutions at the intersection of human and environmental health.

The path to success

Prior to her current role, Frank held the position of Worldwide Vice President, Environmental Health, Safety and Sustainability at J&J. During this tenure, she provided thought leadership and strategic direction to advance the organisation’s Environment, Health, Safety, and Sustainability mission across the breadth of J&J’s businesses. She also represents the company in external forums, partnerships and stakeholder engagements, providing a voice for the company’s values and commitment to helping create a healthy future for people, communities and the planet. Working by the motto of ‘healthy people need a healthy planet’, Frank is dedicated to focusing on improving J&J’s environmental footprint through the company’s operations, value chain and products. She explains that this will have “a positive

impact on planetary health and human health, while supporting the resilience of our business for generations to come”. J&J’s commitment to sustainability

With Frank’s guidance, J&J unveiled ambitious objectives to combat climate change in September 2020. This includes J&J’s ongoing transition to 100% renewable electricity and carbon neutrality across its global operations. At present, over half of J&J’s worldwide electricity comes from renewable sources, comprising over 50 on-site systems in 14 countries and 15 accomplished agreements for off-site renewable electricity.

Frank explains: “As the world’s largest healthcare company, we have an opportunity to have a positive impact on the people we serve.”

After more than 25 years at Johnson & Johnson, Paulette Frank has become an integral part of the company’s sustainability strategy. We explore how and why

“As the world’s largest healthcare company, we have an opportunity to have a positive impact on the people we serve”

This includes providing a specific focus to people and communities that experience the greatest impacts of climate change – especially on their health – as well as the most vulnerable facing disproportionate risks due to where they live and their lack of access to resources.

“With like-minded partners, we are working to address challenges related to climate change and health

equity,” she continues. This includes actively backing initiatives such as the Climate and Health Equity Fellowship, which aims to empower doctors of colour to assume leadership roles in education, advocacy and patient care.

Additionally, J&J has collaborated with Americares and Harvard Chan C-CHANGE to enhance the resilience of healthcare clinics in the

US. These clinics cater to individuals with limited access to care, particularly in communities that are highly susceptible to the effects of climate change.

What’s more, J&J is actively collaborating with suppliers to decrease emissions throughout its upstream value chain. One of the initiatives is the CO2 Capital Relief Programme, where J&J dedicates up to US$40m annually to support energy efficiency initiatives at its manufacturing and R&D facilities with the highest energy consumption.

Each project selected must demonstrate the potential for significant

“

With like-minded partners, we are working to address challenges related to climate change and health equity”

J&J’s worldwide electricity comes from renewable sources, comprising over 50 on-site systems in 14 countries and 15 accomplished agreements for off-site renewable electricity

US$40m

One of J&J’s initiatives is the CO2 Capital Relief Programme, where the business dedicates up to US$40m annually to support energy efficiency initiatives

emissions reduction and a minimum financial return of 15%. Since the programme’s inception in 2005, J&J has successfully executed around 250 projects, resulting in the avoidance of approximately 300,000 metric tonnes of greenhouse gas emissions per year.

Awards and accolades

Currently, the Enterprise Governance Council and the Supply Chain Diversity, Equality and Inclusion Council are co-chaired by the CSO, while Frank is

also a member of the Yale Centre for Business and Environment advisory board.

As an esteemed speaker and participant, Frank is in high demand at international workshops and conferences, effectively advocating for J&J’s values and enduring dedication to fostering a sustainable future for individuals, communities and the planet. Previously serving as co-chair, she currently maintains a position as a member of the Advisory Board for the Center for Business and the Environment at Yale (CBEY).

PAULETTE FRANK

TITLE: CHIEF SUSTAINABILITY OFFICER

COMPANY: JOHNSON & JOHNSON

INDUSTRY: SUSTAINABILITY

LOCATION: UNITED STATES

After graduating with a Bachelor of Science in Biology from Duke University and a Master of Environmental Studies from the School of the Environment at Yale University, Frank has held a variety of positions in the sustainability, environment, health and safety sectors. Her career began in 1997, when she obtained her first role at J&J –

Environmental, Health & Safety Office. Frank has since held numerous positions – including Vice President Consumer –before arriving at her current role of Chief Sustainability Officer.

Frank is also a member of the Yale Centre for Business and Environment advisory board and was named by Sustainability Magazine as one of the Top 100 Women in Sustainability 2022.

CRAIG COULTER

WE SAT DOWN WITH CRAIG COULTER, ADVANCED MANUFACTURING & MOBILITY SUSTAINABILITY LEADER AT EY, TO UNDERSTAND WHAT STEPS MANUFACTURERS CAN TAKE TOWARDS ACHIEVING A CIRCULAR ECONOMY

Q . CAN YOU EXPLAIN THE CONCEPT OF CIRCULAR MARKET OPPORTUNITIES AND HOW THEY CAN BENEFIT MANUFACTURERS?

» For manufacturers, the circular economy is a framework focused on transitioning current value chains – the 3 Rs (reduce, reuse, recycle), which are the primary outcomes for products and materials produced. The financial opportunities

for manufacturers are enormous.

As economies shift, they increasingly focus on outcomes placing value on not just how a product performs, but the design, the source of the materials, the energy usage, and whether it can be reused or recycled. Manufacturers that successfully incorporate circularity throughout their product lines will have a significant advantage over competitors.

circularity will also mitigate oncoming risks. From material sourcing and regulatory compliance to new generations of workers expecting sustainability to be core to the business they work for, embedding circularity will help manufacturers withstand rapidly changing market expectations.

Q . WHAT ARE SOME STRATEGIES THAT MANUFACTURERS CAN USE TO

SHIFT THEIR BUSINESS MODELS TO A CIRCULAR ECONOMY?

» Successfully incorporating circularity into manufacturing is not easy. It requires adapting corporate culture to ensure expectations meet the outcomes that I described above while continuing to meet stakeholder expectations.

I encourage clients to start with a pilot programme, whether it is a single product, product group, or facility and to bring together a multifunctional team to collaborate closely through the entire effort. Business modelling, sourcing, product design, engineering, manufacturing, marketing, etc. must all come along for the ride.

Manufacturers that take this step will likely have strong

corporate sustainability teams, which should be leveraged extensively. Their experience is invaluable, as they usually come from functions across their enterprise and have been focused on the outcomes we are looking to achieve. Throughout the pilot, digital capabilities and access to data are key. To implement circularity successfully, non-traditional

data that doesn’t always sit in the ERP is critical. And, while this data may exist somewhere, it may not be easily accessible. As we all know, while the advantages of implementing digital technologies are massive, implementations are often unsuccessful. But circularity pilots are yet another reason to take the plunge and start enabling more digital capabilities.

Q . WHAT ROLE DO INNOVATION AND TECHNOLOGY PLAY IN TRANSITIONING TO A CIRCULAR ECONOMY IN MANUFACTURING?

» We cannot discuss a successful manufacturing transition to circularity without a foundation of innovation and technology. Digital capabilities are essential to a circular transformation. Manufacturers need to incorporate ESG data throughout the product development lifecycle to assess the potential benefits of making a circular transition. According to the WEF, bringing digital technologies to scale could reduce emissions by up to 20% by 2050 in the three highest carbon-emitting sectors: energy, materials, and mobility. According

About Craig Coulter

As the Global Advanced Manufacturing & Mobility Sustainability leader at EY, Coulter supports clients to integrate sustainability to help change the manufacturing space. He also serves on the leadership team for the EY-Nottingham Spirk Innovation Hub, a client collaboration centre in Cleveland, Ohio that curates innovation commercialisation and digital experiences for EY’s clients.

to EY-Parthenon Digital Investment Index 2022, 26% of senior executives have reported a positive impact from the digital investments made in 2021 in addressing ESG challenges, while 23% see sustainability as the top operational goal for the company’s digital investment over the next two years. Put simply, manufacturers’ efforts to digitise their business – which is ongoing – will directly lead to sustainability benefits.

In my opinion, innovation is the critical circularity consideration for manufacturers. Most of EY’s clients are quite capable, excelling at core innovation. But circularity often requires adjacent or disruptive innovation thinking and capabilities, and this is where many of our clients are stuck in making that leap.

Q . WHAT POTENTIAL CHALLENGES DO MANUFACTURERS FACE WHEN IMPLEMENTING CIRCULAR ECONOMY PRACTICES?

» The biggest challenge is aligning circular principles with a company’s strategy, vision and culture. It is one thing to establish internal corporate ESG goals and take reasonable steps to meet them. It is entirely different to adapt a corporate or product line strategy and bet that a circularity-based business model will meet shareholder expectations.

The best way to pull that strategy together is to break another big challenge manufacturers face: silos. As you read this, somewhere in the world a controller at a manufacturing company has pulled a team together to assess how to successfully

CRAIG COULTER

GLOBAL ADVANCED

MANUFACTURING & MOBILITY

SUSTAINABILITY LEADER, EY

“SUCCESSFULLY INCORPORATING CIRCULARITY INTO MANUFACTURING IS NOT EASY. IT REQUIRES ADAPTING CORPORATE CULTURE TO ENSURE EXPECTATIONS MEET THE OUTCOMES THAT I DESCRIBED ABOVE WHILE CONTINUING TO MEET STAKEHOLDER EXPECTATIONS”

report against the Corporate Sustainability Reporting Directive (CSRD), which will go live in a few years.

At the same time in the company, a business unit leader has just chosen a consultant to assess and update processes and procedures at one of their manufacturing plants. It is unlikely that the contract scope will

+187%

Three industrial subsectors are the fastest-growing sources of GHG emissions: since 1990, emissions from industrial processes grew by 187%, followed by transportation (+79%) and manufacturing and construction (+56%)

– World Resources Institute

include any updates to capture environmental data which the controller may find critical to their CSRD reporting. This is a relatively simple sustainability reporting example, but it is very challenging for many companies because sustainability and circularity force companies to break down existing norms and communication channels.

Now extend that to circularity, where inputs are needed that will extend not only across the enterprise but upstream and downstream, too. Again, I suggest starting with pilots, and, once lessons are learned, form a Centre of Excellence that has direct support from senior leadership, documenting and sharing best practices as the manufacturer transitions.

COMING SOON AWARDS

2024

The Global Sustainability Awards 2024 will be celebrating the very best in Sustainability & ESG with the following categories:

Sustainability Strategy Award

–

ESG Program Award

–

Climate Change Award

–

Diversity & Inclusion Award

–Net Zero Award

–

Sustainable Supply Chain Award

–

Sustainable Technology Award

–

Sustainable Consultancy Award

–

Future Leader Award

–

Executive of the Year Award

–

Project of the Year Award

–

Lifetime Achievement Award

BRIDGESTONE EMIA’S

BEYOND TYRES: Sustainable Procurement Transformation

Bridgestone’s journey to mobility solution leader

WRITTEN BY: ILKHAN OZSEVIM

PRODUCED BY: CRAIG KILLINGBACK

Bridgestone, a global leader in tyres and sustainable mobility solutions, was founded in 1931 by Shojiro Ishibashi. The company’s name is a direct translation of the Japanese word ‘Ishibashi’ into English. Its main mission is to serve society with superior quality. Bridgestone takes pride in delivering a wide range of best-in-class tyres and solutions that cater to the evolving mobility needs of its such as data-driven services, telematics, sensor devices, and tyre management systems. These solutions enhance productivity, cost efficiency, and sustainability. By equipping fleets with data intelligence and sensor technology, Bridgestone enables them to maintain their vehicles and provide optimal service. This combination of tyre manufacturing and mobility solutions defines Bridgestone as a mobility-driven solution company.

Lars Bettermann is the CPO for Bridgestone EMIA, overseeing procurement operations in Europe, the Middle East, Africa and India. He leads a team of around 150 procurement professionals to drive the company’s procurement activities into the future.

Lars Bettermann’s professional journey in procurement began approximately 25 years ago when he joined Ford Motor Company. Prior to that

LARS BETTERMANN CPO EMIA, BRIDGESTONE

“Proximity to stakeholders ensures that the procurement team comprehends their needs and can effectively serve them”

Bridgestone’s CPO, Lars Bettermann, on how the global leader in tyres and sustainable mobility solutions have transformed their procurement function

he says, he never imagined procurement to be such an interesting place to be.

“My time at Ford became a transformative experience, allowing me to fill my toolbox with the most essential procurement skills.” Lars Bettermann gained expertise in supplier negotiations, establishing long-term agreements, and understanding the critical interdependencies within the value chain, spending several years at Ford; building a strong foundation for his work in procurement.

In his current role, he now has full responsibility for all procurement activities in the EMIA region.

LARS BETTERMANN CPO EMIA, BRIDGESTONE

“In the value deliver chain, a crucial role is played by close partnership with suppliers, moving from a cost factor to a strategic long-term collaboration”

LARS BETTERMANN

TITLE: CPO EMIA

COMPANY: BRIDGESTONE

Lars Bettermann is a procurement expert, having 25+ years of professional experience in procurement relevant subjects and project scope. He holds a university degree in business administration. His know-how is based on the operational fundament he built up in the automotive sector enhanced with the methodical and strategic application in strategic sourcing project, being a strategy consultant for more than a decade. Today he is heading procurement at Bridgestone EMIA as a CPO, holding responsibility for all source-to-pay activities across the company.

The evolution of Bridgestone’s business model: from tyres to mobility solutions

Over the course of its nearly hundredyear history, Bridgestone has witnessed significant changes and advancements. Its fundamental product - the tyre - has undergone remarkable developments to become more performant, efficient, safe and sustainable over time.

More than 5 years ago, the company embarked on a transformation into a mobility solutions company to ensure it captures business opportunities arising from data and digital transformation offering efficiency and convenience .

Bridgestone beyond tyres: Driving mobility solutions

By diversifying into mobility solutions, Bridgestone has positioned itself for the future, offering a balanced mix of products and services to meet evolving market needs.

Bridgestone’s procurement transformation

When Lars Bettermann joined Bridgestone two and a half years ago, he identified an opportunity to further leverage the value that procurement could bring to the organisation.

At that time, the procurement department primarily focused on raw materials procurement. Lars Bettermann initiated a transformation journey to enhance the procurement function, which is still ongoing.

The transformation efforts encompassed several key aspects:

Firstly, there was a strong emphasis on upskilling the existing raw materials team. Significant investments were made in providing additional training and equipping the team with the necessary tools and resources to drive even more value in their procurement activities.

Secondly, a new procurement department was established to cater to CapEx (Capital Expenditure) and Bridgestone’s indirect procurement needs; focusing on equipping the company’s plants with all the machinery they need in manufacturing their tyres, as well as understanding the needs of the business in the headquarter and the sales offices.

Lars Bettermann’s vision was to have a team that closely understands the requirements of internal stakeholders. He says, “Proximity to stakeholders

ensures that the procurement team comprehends their needs and can effectively serve them.”

Thirdly, Bridgestone entered into a strategic partnership with Accenture for managing indirect procurement categories.

Lars Bettermann says this decision was driven by the desire to achieve operational efficiency from the outset and to tap into Accenture’s expertise in areas that are not Bridgestone’s core competency. “The partnership with Accenture enabled Bridgestone to benefit from specialised knowledge and industry insights in categories such as travel, IT, spare parts and logistics.”

LARS BETTERMANN CPO EMIA, BRIDGESTONE

“Rooted in the visionary mindset of founder Shojiro Ishibashi, our E8 commitment recognises the importance of businesses in contributing to societal wellbeing”

This approach allowed Bridgestone to optimise the utilisation of resources and ensure access to the best market offerings in those areas. Lars Bettermann points out that the success of this transformation relies on the unified commitment of the entire team, regardless of whether they are from Accenture or Bridgestone.

“The shared goal is to prioritise stakeholder relevance, maintain close collaboration, and deliver the best value from a procurement perspective,” he says. These three components continue to drive the team’s day-to-day activities as they progress on their transformation journey.

B-Store: Bridgestone’s buying platform and how it channels demand

Lars Bettermann says the primary objective of a procurement professional is to effectively manage all the company’s spends in the market. “This involves ensuring that all demands are driven through the appropriate procurement channels and avoiding ad hoc purchasing outside of the established processes.”

Recognising the need for a centralised and user-friendly platform, Bridgestone launched its procurement portal, known as B-Store, on January 1st, 2022.

The B-Store portal serves as a single access point for all employee demands.

“B-Store’s purpose is to guide users to the proper channels based on their specific needs,” says Lars Bettermann. “For instance, if an employee requires travel-related services, they can access the portal, click on the travel button, and swiftly be directed to the dedicated travel portal. Similarly, employees seeking spare parts or office equipment can easily locate the relevant catalogues or submit their demands for processing and assistance from the shared service centres.”

The implementation of the procurement portal was crucial for the day-to-day success of Bridgestone’s procurement activities. Lars Bettermann likens the portal to a supermarket that needs to be well-stocked and attractive to employees - encouraging them to use it as their go-to resource.

The B-Store is powered by SAP’s widely-recognised Ariba tool. Lars Bettermann says that the key challenge however, lies in effectively implementing and making the tool work for the organisation’s specific needs.

“Throughout the year 2022, Bridgestone focused on ensuring the functionality and user-friendliness of the B-Store. They initiated a hands-on approach by guiding employees through the portal, both at manufacturing facilities and in various offices, including the headquarters and the more than 20 regional sales offices,” he says.

“By providing the necessary support and guidance, Bridgestone aimed to familiarise employees with the B-Store and facilitate their ability to find and fulfil their procurement requirements. Now, after 17 months since its launch, we consider the buying platform to be a success. While we have not yet achieved 100% adoption, the usage rates have significantly increased, demonstrating positive progress.

The continuous growth in numbers and positive feedback we are seeing, reaffirm that we are on the right track, and we remain committed to further enhancing its effectiveness and adoption rate.”

Sustainability E8: Bridgestone’s global corporate commitment

The Bridgestone E8 Commitment was established in early 2022 as Bridgestone’s global corporate commitment. It represents the company’s dedication to delivering value to society, customers and future generations. “Rooted in the company’s mission to serve society with superior quality, our E8 commitment recognises the importance of businesses in contributing to a sustainable future,” says Lars Bettermann.

The E8 Commitment encompasses eight focal points that serve as guiding principles for Bridgestone’s strategic priorities, decision-making, and actions worldwide. These focal points are:

• Energy

• Ecology

• Efficiency

• Extension

• Economy

• Emotion

• Ease

• Empowerment

They provide a comprehensive framework for the company’s sustainability efforts, ensuring alignment and coherence across all regions and aspects of Bridgestone’s operations. The E8 Commitment is seen as a powerful expression of Bridgestone’s commitment to conducting business in a sustainable manner. It establishes clear goals and targets for the company to strive towards, facilitating its progress towards a more sustainable and responsible future.

People, planet and procurement-diversified Lars Bettermann’s goals involve supporting the company’s sustainability targets for being 50% CO2 reduction neutral by 2030, and 100% by 2050 with 100% sustained material. This can only be reached by establishing the right partnerships and ecosystem. Another key aspect is the creation and management of a cohesive team of procurement professionals who can effectively communicate and work together.

Lars Bettermann recognises the value of diversity within the team, highlighting that individuals bring different backgrounds,

cultures and experiences. As a leader, he believes in harnessing the strengths of these diverse components to achieve success. Effective communication plays a crucial role in motivating the team and meeting daily challenges.

Bridgestone’s approach to partnerships

Bridgestone relies on a wide range of partners for success. Rather than listing all 20,000 suppliers, he focuses on the concept of partnership itself. “To ensure a sustainable future,” he says, “Bridgestone requires partners in specific core categories and key raw materials necessary for tyre production.

1931 Bridgestone was founded by Shojiro Ishibashi. The company’s name is a direct translation of ‘Ishibashi’ into English

“There are three critical ingredients for tyre manufacturing: steel cord, synthetic rubber, and carbon black. Bridgestone recognises the importance of

“B-Store’s purpose is to guide users to the proper channels based on their specific needs”

these materials in achieving its sustainability goals, particularly in implementing circular economy practices. By maximising the use of tyres and extracting valuable components for recycling, Bridgestone aims to create a circular flow that supports the production of new tyres. Considering these core categories, the partners especially in steel cord, synthetic rubber, and carbon black become vital for Bridgestone’s success.”

He suggests that failure to secure reliable partners in these areas would hinder the company’s ability to achieve its targets. “However,” he says, “it’s essential to acknowledge the significance of all partners, including those involved in all other raw materials but also in machinery, marketing, IT, consulting, logistics and others.”

It is the entire ecosystem of partners that contribute to building

LARS BETTERMANN CPO EMIA, BRIDGESTONE

“The goal is to prioritise stakeholder relevance, maintain close collaboration, and deliver the best value from a procurement perspective”

the necessary foundation and ecosystem for Bridgestone’s operations.

Mobilising the future

Lars Bettermann says in the next 12 to 18 months, Bridgestone will be focused on several key priorities. “Firstly, we need to prepare ourselves to meet our 2030 targets for sustained materials. This entails establishing the right partnerships, driving innovation, and developing the optimal mix of raw materials to continue building premium tyres.

“Additionally, we have encountered challenges due to global crises like the Russian-Ukrainian war.

“The impact of these crises on our supply base has been significant. In 2022, we dedicated substantial effort to de-source materials and seek alternative

suppliers that align with our ambitions and values.

“Looking ahead, our main objective is to ensure stability and effectiveness in our partnerships during the next 12 to 18 months. We need to deliver on our commitments and promises, as this will contribute to Bridgestone’s transformation into a sustainable mobility solutions company.”

Overall, the coming months will be crucial for Bridgestone, as it pushes to achieve its sustainability goals, adapt to global challenges and drive Bridgestone’s evolution in the industry.

The Portfolio

GOVERNANCE: THE OVERLOO K ED FOUNDATION

OVERNANCE:

WRITTEN BY: LUCY BUCHHOLZ

n the intricate web of sustainability, where environmental concerns and social impact often claim the spotlight, one critical pillar remains steadfast in its significance: governance, the unsung hero shaping the very foundation of ESG.

Governance is the system of rules, policies and practices by which a company is managed in a responsible, ethical and transparent manner. It involves the relationship between a company’s management and its board of directors, its investors and other stakeholders, to whom it is accountable.

It therefore forms the bedrock of the ESG agenda, as it encompasses not only onethird of the ESG equation but also acts as a prerequisite for achieving all ESG goals. Behind every violation of environmental or social commitments lies a failure

Although the three components of ESG are intrinsically linked, the ‘G’ is often overlooked. We explore why businesses should prioritise corporate governance

What if resiliency isn’t about withstanding today but envisioning tomorrow?

in corporate governance, whether it's insufficient anti-corruption measures, flawed incentive systems, conflicting lobbying efforts, ineffective board supervision or unprepared leadership.

In essence, sustainable governance lies at the core of the ESG agenda, and overlooking it can hinder a business’s sustainability progress.

How to improve corporate governance

Aligning governance practices with ESG principles is increasingly becoming the norm, yet good governance involves more than just compliance. Boards must strike a balance between compliance and performance, focusing on improving organisational performance through strategy formulation and policy-making. Understanding the

If a key metric of good governance is transparency, then using opensource technology is a great-butunderutilised tool for improving governance”

MARTEN MÖLLER ESG LEAD, ALGBRA

MARTEN MÖLLER ESG LEAD, ALGBRA

“ESG should not be considered a bolt-on, but should be seen as foundational to a company’s governance and overall strategy”

distinct functions of the board in relation to management helps establish a strong board-management relationship.

Marten Möller, ESG Lead at Algbra, states that there are a number of steps companies can take to ensure that their governance practices align with ESG principles.

“Firstly, ESG should not be considered a bolt-on,” Möller says, “but should be seen as foundational to a company’s governance and overall strategy. It is becoming increasingly clear that companies scoring high on ESG metrics are likely to outperform their counterparts. Making the business case important for companies seeking to start their ESG journeys.

“Secondly, it’s imperative to develop a clear and comprehensive ESG strategy that outlines the company's commitment to ESG principles and sets specific targets and goals. The strategy should be aligned with the company's overall business strategy and consider the needs and expectations of all stakeholders.”

Möller continues to explain the importance of establishing an ESG committee that is responsible for overseeing and implementing the ESG strategy, as well as conducting regular ESG assessments to track progress. ESG trackers should cross-reference to the UN’s SDGs and should cover the implementation of policies and procedures that support the ESG strategy and goals.

Although improving a business’s governance can seem overwhelming, a good place to start is to take the B Corp Impact Assessment. B Corps are businesses or organisations that have voluntarily met the highest standards for social and environmental performance, having passed the rigorous testing – and annually evaluating measurements and methods –to demonstrate the commitment to meet

the highest standards of ESG impact. By taking the B Corp test, businesses are able to grasp how sustainable their operations are, while identifying areas for improvement.

Technology is also another great way to improve governance, as it can be used to gather, analyse and report higher quality and more efficient data on a variety of metrics, including carbon footprint accounting, financial statements, risk management and compliance records.

“If a key metric of good governance is transparency, then using open-source technology is a great-but-underutilised tool for improving governance – both within an organisation and the corporate sector more broadly,” Möller says. “Making information publicly available so that it can be reviewed and audited by anyone will increase transparency and accountability.

“This helps corporates to compare themselves to others and enables them to strive for industry best practices. While competition is often the name of the game, collaboration is key to advancing standards as knowledge sharing has the power to improve everyone’s performance. Open source technology also helps address the barrier of cost, thereby enabling all sizes to improve their governance by reporting on many important but often overlooked factors given resource constraints.”

Understanding the risks associated with governance

To effectively manage corporate governance risks, companies need to acknowledge the presence of ESG risks across their organisation and supply chain. It is crucial for companies to proactively address these risks and implement mitigation measures that consider the interests of all stakeholders, rather than solely focusing

“Proper due diligence on suppliers and third-parties should be taken seriously ”

MARTEN MÖLLER ESG LEAD, ALGBRA

on shareholders. This comprehensive approach should be applied to all operational aspects of the company.

“Proper due diligence on suppliers and third-parties should be taken seriously,” Möller says. “For example, GHG emissions tend to be far greater in Scope 3 emissions, which concerns assets outside the direct control of a company and typically concerns their supply chains.”

Having a gender-equal board of directors is also crucial for effective governance. Gender diversity in the boardroom ensures a broader range of perspectives and expertise, leading to more robust discussions and decisionmaking processes. This diversity helps mitigate the risk of groupthink, promoting independent thinking and critical evaluation of management strategies.

Marten Möller, ESG Lead at Algbra : Creating a more equitable, empowered and sustainable society

“A passion for having a positive social and environmental impact on the world has been with me for as long as I can remember,” Möller says, “but it was only after school when I gained some more autonomy over my life that began to make this passion my vocation.

“Although I spent many years studying in pursuit of the correct career path, I always knew I wanted to find a way to make a contribution to create a more equitable, empowered and sustainable society.

“While I had never thought of getting into finance, my meeting with the Algbra team showed me that finance has a key role to play in achieving a world that is equitable, empowered and sustainable.

“Now, my role is to drive Algbra’s overall ESG agenda so I continue to work across different departments such as governance and strategy, marketing and community, product and corporate development.

“The tasks I do are diverse and include things like drafting related policies and procedures and ensuring business activity takes place in line with those policies, and developing partnerships to further Algbra’s sustainability credentials with certifications and memberships.”

By including diverse groups on boards, organisations reflect the demographics of their stakeholders and customers, enhancing their ability to understand and respond to diverse market dynamics.

Although governance risks pose challenges, it is a crucial part of ESG. Effective governance ensures compliance, and accountability while addressing environmental and social risks. It integrates ESG considerations into decision-making, drives sustainable practices and attracts responsible investment. Strong governance builds trust, enhances stakeholder confidence and enables organisations to navigate complex ESG landscapes for long-term value creation and positive societal impact.

SANOFI AND MARKEN TRANSFORM THE PHARMA SUPPLY

MARKEN THE CHAIN

Pharmaceutical supply chains take supply chain complexity to another level. Supply chain can be a complicated industry at the best of times. There are so many moving parts, all of which can, and have, been impacted over recent years by a conveyor belt of problems, including the pandemic, the Suez blockage, war in Ukraine, labour issues and inflation.

As well as the usual litany of supply challenges, pharma has distinct requirements on the handling of materials, while also facing the perils of product recalls and compliance issues; the field of medicine is just about the most regulated sector there is.

Then there’s also the added pressure of how serious any delays might prove, because the supply chain is critical for ensuring patients in clinical trials have access to the medicines they need to maintain their health, or even to keep them alive.

There are different forms of pharma supply chains. The most common is the so-called small molecule pharma supply chain. This involves time sensitive and temperature controlled chemical-based drugs, that typically begin with the sourcing of raw materials – the active pharmaceutical ingredients – that are used to manufacture medicines. The manufacturing process alone involves several stages: formulation, quality control, packaging, and labelling.

When pharma firm Sanofi needed end-to-end clinical supply chain visibility it turned to logistics specialist Marken

ARIETTE VAN STRIEN PRESIDENT, MARKEN

Once the drugs are ready, they’re shipped to warehouses or distribution centres, fromwhere they are distributed to healthcare providers, pharmacies, and hospitals.

For other medicines, such as vaccines and biologics (drugs produced using a livingsystem, such as a micro-organism, plant cell, or animal cell) a controlled supply chain is required, to keep such volatile medicines at the right temperature and humidity, and with tracking shipments to prevent counterfeiting and diversion. Both small- and large-molecule pharma supply chains are temperature controlled and time sensitive.

“Marken and Sanofi have a vital role in the storage and distribution of groundbreaking medicines that have the potential to cure diseases, and not just treat them”

One business that understands these challenges intimately is Sanofi, a multinational pharmaceutical company headquartered in Paris. Its focus is on therapeutic areas that include cardiovascular disease, diabetes, oncology, immunology, rare diseases, and vaccines for diseases including influenza polio and meningitis.

The company offers a wide range of prescription drugs, over-the-counter medications, and vaccines to improve health outcomes for patients worldwide. Healthcare supply chain is a critical link with the patient that must never break, which is why they built a strategic partnership with supply chain solutions provider, Marken.

ARIETTE VAN STRIEN

TITLE: PRESIDENT

COMPANY: MARKEN

Ariette van Strien serves as President of Marken and brings 25+ years of clinical research experience from Phase I to Phase IV. Ariette has held senior executive roles across global marketing and business development, pricing, project management and global operations. Her extensive experience in the pharmaceutical and CRO industries provides exceptional insights into the challenges associated with research, development, commercialization, marketing, and supply chain for medicines. Since joining in 2010, Ariette has positioned Marken as the clinical and cell and gene supply chain leader and developed optimized

Go beyond storage & distribution

A supply chain that goes beyond delivery

Reach more patients with single-source reverse logistics

Store treatments closer to patient populations globally at all temperature ranges

Scale distribution via a best-in-class Quality Management System

Deliver personalized patient care with dedicated logistics teams

We go beyond to connect patients with new medicines

Driven by our passion for patients, Marken’s unique position within the biopharma and life sciences industry is unparalleled. Leveraging our limitless capacity and scalability, Marken manages 154,000 drug product and biological sample shipments every month at all temperature ranges to more than 220 countries and territories and have orchestrated 14,000+ home healthcare visits. Our state-of-the-art GMP-compliant depot network and logistics hubs are strategically located in 61 locations worldwide, providing clinical to commercial storage and distribution services, directto-patient solutions, home healthcare nursing services, kit production, and cell and gene therapy shipments.

The New Wave of Drug Storage and Distribution

Marken’s advanced, hightech storage and distribution capabilities are pivotal pieces in the orchestration of delivering lifesaving treatments to patients. Our robust global GMP-depot network is strategically and expertly designed to meet your current and future demands. Our global network offers storage and distribution capabilities at any temperature range

with limitless capacity, real-time integrated technology and the ability to scale to any volume. Allowing for the immediate start of your clinical trial as soon as you need it, our ready-now network supports how we deliver at lightspeed from clinical to commercialization.

Going beyond, delivering what matters

We have the best people and the best tools, and we will continue to operate at the leading edge, investing in new technology, enhancing our global network and lowering our environment footprint to deliver with quality excellence. At the end of the day, we understand that there is a patient who relies on us and our global team will always ‘go beyond’ to deliver what matters. It is in our Marken DNA.

LEARN MORE

ARNAUD DOURLENS

TITLE: HEAD OF CLINICAL SUPPLY

CHAIN OPERATIONS

COMPANY: SANOFI

Arnaud Dourlens is an “Arts et Métiers” engineer. He began his industrial career in the FMCG* sector where he held growing responsibilities. Then he joined the LVMH group where he reorganized new product launches and industrial investments in the Make-up segment .

Arnaud joined Sanofi in 2017 as Production Director of a major production site (> €2.5bn turnover). He has been a key player in the development of the continuous improvement mindset and in the transformation of the site through IT projects, investments and activity growth.

Since 2020, hehas been the global head of Sanofi Clinical Supply Chain Operations, managing worldwide clinical supply teams involved in more than 300 clinical studies.

*Fast-moving consumer goods

Arnaud Dourlens is Head of Clinical Supply Chain Operations at Sanofi.

Asked about the main risk management challenges the company faces, he says: “Providing near-perfect delivery performance for complex study designs across multiple countries and their trial sites.”

He adds: “This is the day-to-day complexity of clinical supply. The supply chain needs to be agile to react to all kinds of changes during clinical trial execution.

“The key is to ensure there is a risk management plan in place that focuses on the evaluation of potential issues arising, either internal with changes, but also external

impacts and even the loss of a supply chain partner or a region.

“This requires alternate supply arrangements, tight inventory level management to provide a needed buffer, and very agile operations.”

Dourlens goes on to stress that whatever the market conditions or challenges “we are the one making available patients’ drugs –on time and at the expected quality”. He says that together with Marken, this “is our duty, this is our DNA”.

Dourlens and his team face the daily challenge of balancing risk and efficiency.

He says that in the wider world of supply

chain businesses focus their efforts on cost and efficiency “because supply chains can become very expensive and complicated”. If a company puts too much emphasis on cost and efficiency, he says this can result in a lack of responsiveness.

“Pandemic, earthquakes, regulatory changes or cyberattacks can easily disrupt our supply and impact business,” he says. “Recent acceleration of such disruptions has led to the breakdown of supply chains, because the resilience was not there.”

But in a pharma context the need to guarantee supplies is all important: “In clinical trials, we are probably more aware

ARNAUD DOURLENS

of the absolute necessity to guarantee supplies, and we explore key supply chain strategies to be ready before the crisis and ensure robustness and resilience,” Dourlens explains.

He adds that “the usual supply forecasting systems are suitable for dealing with the disruption”, and says the company’s strengths are its ability to quickly leverage its logistic network and inventory, to build new what-if scenarios and to quickly reset its supply flow if required.

“This is infinitely more challenging than it seems,” he says. “It means that we need to precisely know the quantity of each raw material or medicinal product in the supply chain and where it is at any given moment.”

Examples of Sanofi’s ability to support real time decision-making include:

• On-demand access to clinical supply information and self-service analytics, which helps Sanofi’s clinical supply managers address the complexity of large, geographically distributed trials, react quickly and accurately to change, and meet the evolving needs of new trial designs.

• Giving supply chain managers access

to worldwide, real-time data using cloud-based technology.

• Real-time production and distribution monitoring systems – combined with integrated planning and scheduling tools – that combine not only to deliver supply agility, but also to manage costs on expensive production equipment and resources.

For two years now, Sanofi has leveraged Marken to implement a reimagined clinical supply distribution network. It’s a hybrid model that leverages a unique centre of excellence based in Montpellier, France, managing operations all the way from initial design to drug-delivery.

“It is able to initiate our entire clinical trial portfolio supply,” says Dourlens. “This hybrid model allows us to be highly agile, offering different models combining internal core activities and partners’ expertise to answer each clinical trial supply needed.”

“In clinical trials, we are acutely aware of the absolute necessity to guarantee supplies”

HEAD OF CLINICAL SUPPLY CHAIN OPERATIONS, SANOFI

He adds: “At the Montpellier site, we have the ability to pick-and-pack for European direct shipments to hospitals –and even directly to a patient’s home. We can also prepare international shipments to feed our international distribution network out of the EU.”

Dourlens says the company’s international network relies on 31 depots across 24 countries, most of which have been established in cooperation with global logistics and supply chain company Marken. And it is Marken – the clinical subsidiary of UPS Healthcare – that manages Sanofi’s warehousing and logistics, including last-mile delivery and reverse logistics (moving goods from customers back to sellers or manufacturers).

ARNAUD DOURLENS HEAD OF CLINICAL SUPPLY CHAIN OPERATIONS, SANOFI

Marken’s unique position within the biopharma and life sciences industry is unparalleled. As the clinical subsidiary of UPS Healthcare, its end-to-end global logistics solutions deliver next-generation clinical to commercial cell and gene therapies and clinical trial supply chain services under one roof.

Its state-of-the-art GMP-compliant depot network and logistics hubs are strategically located in 61 locations

“If you put too much emphasis on cost and efficiency, this can result in a lack of responsiveness”

worldwide, providing comprehensive clinical storage and distribution services, direct-to-patient solutions, home healthcare options, kit production and biological sample shipments.

Marken’s focus is on patient-centricity and Sanofi shares this commitment. Every year its devoted Patient Centric Services team expertly orchestrates 200,000 direct-topatient shipments and facilitates more than 15,000 home healthcare visits, supported by its global nursing network.

Leveraging its capacity and scalability, Marken also manages 154,000 drug product and biological sample shipments every month – at all temperature ranges and to every corner of the world.

“We have a vital role in the storage and distribution of groundbreaking medicines,” says Marken’s President, Ariette van Strien. “From advanced therapies and mRNA vaccines to pioneering drugs and novel treatments in development, which have the potential to cure diseases and not just treat them.”

Marken has also had to overcome significant challenges in order to maintain such levels of excellence.

“We pride ourselves on delivering customised services at light-speed,” says van Strien, who adds that the company “continues to offer a competitive edge in the face of mounting complexities with a ready-now network to deliver new possibilities for patients”.

She adds: “From shifts in strategic thinking and talent onboarding to virtual processes, we’ve had to constantly challenge ourselves, develop new services and expand to new areas to be better and faster than the day before.”

Asked how Sanofi’s partnership with Marken aided the digital transformation of its logistics network, Dourlens simply says: “End-to-end transparency of downstream supply activities.”

To that end, the two companies interfaced their systems to enable Sanofi’s global supply chain management “and to allow for future automation and enhancements”. Sanofi started the process in 2020 with the global transformation of its clinical supply chain, and decided to partner with Marken on its international distribution network.

“We ran a very fast transformation, including the setting up of our Louisville depot in the US,” says Dourlens. “Kentucky was handling all US clinical supply distribution in fewer than two months.”

Sanofi has since set up a global network of supply involving 31 depots, in all countries where its clinical studies are conducted.

“Our close collaboration with Marken allowed us to overcome various challenges during COVID, the China lockdown and the Ukraine war,” says Dourlens.

He adds that the partnership with Marken worked so well because – unlike many clinical drug supply organisations –Marken kept pace with innovation and dealt well with crisis situations: “Our partnership with Marken gave us clarity on our vision and strategy, and helped us build a deeper understanding of the mutual need to be successful.

He says benefits to have accrued from its relationship with Marken include:

• Transparency on financials

• A results-oriented approach driven by speedy and informed decision making

• Strong cross-company relationships and routines at all levels, including VP

“Sanofi has come to rely on our innovative solutions to address its diverse needs”

ARIETTE VAN STRIEN PRESIDENT, MARKEN

“A true partnership can only be successful if there is a win-win approach,” Dourlens says,

“Our global outcome of the collaboration is a 20% efficiency gain.”

For her part, Marken’s van Strien says the company “takes pride in our capability to expedite the worldwide delivery of medicines through our extensive network”.

She adds: “We empowered Sanofi with enhanced flexibility and resilience, and our solutions are meticulously tailored to meet Sanofi’s specific requirements, thereby bolstering its operational adaptability.”

Van Strien adds that, as Sanofi’s global storage and distribution partner, Marken redesigned strategies “to create a more efficient and optimised supply chain”.

She adds: “Our logistics ecosystem stands unparalleled in the industry, delivering paramount advantages to Sanofi.

“The breadth of our global capabilities further strengthens our partnership. We possess the agility to swiftly adapt as we did for Sanofi to set up the Louisville depot in less than eight weeks, employing either a direct-to-patient or hybrid approach whenever and wherever necessary worldwide.”

She adds that Sanofi “has come to rely on our innovative solutions to address diverse needs, often resolving critical bottlenecks with expeditious resolutions”. Van Strien also reveals that Marken built a ready-now network for Sanofi, “to enable us to begin operations immediately, ensuring seamless logistical success”.

Van Strien continues: “Over time, we have earned the trust of Sanofi by consistently demonstrating our responsiveness in any given situation.

“With unwavering confidence, Sanofi entrusts us to fulfil its requirements and surpass expectations by leveraging our extensive array of resources. This steadfast partnership propels us forward, united in our pursuit to push the boundaries of personalised healthcare, which is gaining remarkable momentum worldwide.”

Sanofi’s trust is rooted in Marken’s unwavering commitment to diversity, which encourages ideas, talent and experience – “all fostered by a learning

culture that is emboldened by our unique Marken DNA”, says van Strien. “The global team is equipped with exceptionally talented and passionate professionals, who possess diverse skill sets, backgrounds, expertise and a shared commitment to excellence.

“Our talent is core to our ability to innovate and meet patient and client needs, and every employee has a critical role to deliver what matters.”

Together, Sanofi & Marken will continue to strengthen their strategic

partnership, leveraging their innovative portfolio and combined global network, to accelerate impactful solutions for patients worldwide – and this is only the beginning.

BREAKING

The rise and impact of

WRITTEN BY: LUCY BUCHHOLZ

As the number of chief diversity officers has skyrocketed in recent years, we explore why more businesses need to capitalise on these integral roles

BARRIERS: chief diversity officers

alone, positions dedicated to diversity, equity and inclusion (DEI) have quadrupled in the US, according to McKinsey.

The role of Chief Diversity Officer (CDO) has become more visible and more crucial than ever, with new hires tripling in 2021. Now, 53% of Fortune 500 companies have a CDO, with over 60 appointing their first-ever diversity leader.

A growing need for CDOs

As the CDO role is one of the newest additions to the C-Suite, the responsibilities it carries can often come with a question mark and are thought to be ambiguous. Yet, in 2020, McKinsey revealed that companies with higher gender diversity in executive teams had a 25% greater chance of achieving above-average profitability compared to companies in the lowest quartile. Similarly, companies in the top quartile for ethnic and cultural diversity outperformed those in the lowest quartile by 36% in terms of profitability. DEI, therefore, needs to be at the top of every business's priority list

Toiya Sosa, Associate Vice President and Chief Diversity Officer at Riverside Health System, explains that CDOs are responsible for establishing “a DEI strategic plan that diversifies the organisation’s workforce at all levels, evaluating existing policies, processes

and procedures, and executing more effective ways to reinforce equity and inclusion in all aspects of the business”.

Around 40% of individuals residing in the US identify as non-white, encompassing Black/African American, Hispanic/Latinx or Asian backgrounds. As per Nielsen data, this diverse demographic possesses a substantial purchasing influence – amounting to US$3.2tn.

It is therefore crucial for CDOs to prioritise the cultivation of a workforce that reflects the multicultural consumers the business caters to. It is equally essential for businesses to comprehend the presence and impact of their products and services in the market.

On a similar note, CDOs provide support and education to employees of all levels, including executive leaders. Many leaders and executives express a desire to recruit diverse talent but may lack awareness of how to actualise that goal.

Promoting workplace DEI

Creating a workplace culture that embraces DEI requires a proactive, multifaceted approach. Cultivating DEI involves implementing unbiased recruitment and hiring practices, providing training and education on diversity awareness and inclusion, and establishing employee resource groups to support underrepresented communities.

“Recruiting diverse talent is critical to represent the diverse communities that we serve,” Sosa says. “Diversity representation and training can lead to businesses understanding the importance of offering services that meet the needs of everyone.”

“DEI should have a defined budget that accomplishes what is outlined in the DEI strategic plan”

TOIYA SOSA ASSOCIATE VICE PRESIDENT, CHIEF DIVERSITY OFFICER, RIVERSIDE HEALTH SYSTEMS

Sosa shares three ways in which organisations can attract and retain diverse talent:

• Recruit outside of the typical recruiting firms like LinkedIn, Zip Recruiter, and Glassdoor. Building relationships with diverse organisations is key. These organisations can provide consultancy about the unique needs and wants of their constituency, allowing organisations to interface directly with a customised approach.

• Support causes that resonate with diverse communities, and that show the organisation cares beyond what is in it for them. According to a JobSage survey, over 64% of respondents said it’s important for employers to take a stand on social issues. Percentages were even higher for Black Americans (83%), Gen Z (82%), and women (72%).

• Expose youth and young adults to the various careers available within the organisation, and provide internships and externships to build a pipeline of diverse future leaders.

“It’s imperative to establish a DEI advisory committee that includes all senior executives starting with the CEO”

TOIYA SOSA ASSOCIATE VICE PRESIDENT, CHIEF DIVERSITY OFFICER, RIVERSIDE HEALTH SYSTEMS

Targets for a CDO

TOIYA SOSA SHARES THE TARGETS SHE HAS OUTLINED TO ACCELERATE DEI AT RIVERSIDE HEALTH SYSTEM

As CDO for Riverside Health System, Sosa is responsible for developing, implementing and overseeing the organisation's DEI strategy. To achieve this, she has set out four priority areas:

1. Sustaining an infrastructure that supports a culture of commitment and consistency in the advancement of DEI

2. Building a diverse talent pipeline with advancement opportunities for all

3. Creating and fostering an inclusive culture that supports the diversity of our workforce

4. Reinforcing a commitment to health equity and community outreach

ASSOCIATE VICE PRESIDENT, CHIEF DIVERSITY OFFICER, RIVERSIDE HEALTH SYSTEMS

Final thoughts

In sum, CDOs are playing an increasingly vital role in promoting diversity and inclusion within businesses, as shown by the rising number of CDO hires and their impact on business growth. They are responsible for strategies focused on ensuring a diverse workforce, recommending and implementing overall DEI strategy, while organisations must prioritise diversity to reflect the multicultural consumer base and understand the market impact of their products and services.

Businesses that have not yet welcomed a CDO, or someone with an equivalent focus, need to prioritise the establishment of such a position to effectively address DEI initiatives and harness the benefits they bring to business growth and success.

Recruiting diverse talent is critical to represent the diverse communities that we serve”

CUSTOMER HELPS OVERCOME

CUSTOMER-CENTRICITY HELPS DATA CENTRES OVERCOME DISRUPTION

WRITTEN BY: TOM SWALLOW

PRODUCED BY: LEWIS VAUGHAN

Avnish Patankar, Commercial Director of BDx Indonesia, defines the reasons for its data centre acquisitions and transparent approach to disruption

The data centre industry’s rapid expansion sees more opportunities across every border, with its growth making way for the introduction of BDx in 2019 and the continued success of existing data centre locations.

The company sought out advantageous growth opportunities, resulting in moving to a few different locations across the APAC region.

Taking on an emerging market with billions of dollars worth of potential over the next few years, BDx ventured beyond its China, Hong Kong and Singapore data centre facilities to acquire a further site in Indonesia last year. The reason for this being the projected CAGR from 6% to 13% leading up to 2028, and the projected industry value growth to US$3.43bn by 2027.

With four data centres in total, the company is operational across the three locations in Indonesia, allowing it to serve a growing number of users globally.

“Our global customers are joining us. At the same time, we are now building two more new data centres that are greenfield projects in Indonesia – in and around Jakarta,” says Avnish Patankar, Commercial Director at BDx Indonesia.

“Collectively, we are creating a bouquet of six assets for the main DC deployment and some 20 plus locations spanning Indonesia for edge deployments where we will be able to offer more choices to customers.”

The company’s venture into Indonesia marks a crucial step in BDx’s strategy, which will service the digital transformation needs of the country by enabling access to data centres at the edge. With a dedicated facility based there, its existing pool of global clients have the opportunity to colocate their IT infrastructure and workloads to enable more growth in the region.

“We ventured into Indonesia with a mission to support its digital transformation,” says Patankar.

“Now, coming with that mission to support, it’s very important. Any client who is coming from overseas or a local national client who is looking for a data centre, colocation asset for deploying its IT workloads, it’s important to provide them with what they need. They need locations, diversification in locations, scalability, security, they need network ability for connectivity.”

“PEOPLE WHO WORK WITH THE COMPANY CREATE THE COMPANY, THEY BUILD THE COMPANY”

AVNISH PATANKAR COMMERCIAL DIRECTOR, BDx

As a result, BDx Indonesia proudly opens the door not just for national clients, but also for its overseas clients to access reliable and secured data centres within the country.

“It is the biggest acquisition deal in the data centre industry of Indonesia. We are committed to investing another billion dollars into it. While we are developing a greenfield project, which will be our flagship data centre, we are looking at creating 20-plus edge locations for deployment, which is the future of digital transformation,” Patankar says.

“In a year or two, everyone will venture into edge locations – edge data centres. People will look for edge deployments because, as the digital transformation is taking shape, it is very important for the cloud and content providers to get near the customer.”

AVNISH PATANKAR

TITLE: COMMERCIAL DIRECTOR

INDUSTRY: TECHNOLOGY

LOCATION: INDONESIA

Avnish Patankar is a seasoned executive with over 20 years of experience in the technology and engineering industry. He is currently the Commercial Director of a rapidly growing company, where he is responsible for setting the company’s strategic direction and driving its growth with customer first approach.

Throughout his career, Avnish has held various leadership roles at both established companies and startups. He has a strong track record of delivering results, driving innovation, and leading cross-functional teams to success.

Prior to his current role, Avnish served as the Country Head of an engineering company, where he played a critical role in growing the company’s revenue and expanding its customer base. Before that, he held senior leadership positions at several engineering and utility companies, where he was responsible for driving product strategy, business development, and customer success.

Avnish is known for his ability to build and lead high-performing teams, his strategic vision, and his customercentric approach to business. He is passionate about leveraging technology to solve complex problems and create value for customers.

From services like Netflix and Amazon Prime to Dropbox and One Drive, cloud and storage capabilities will be pivotal in the years to come, so businesses will look to grow to all corners of the globe to ensure that their services are made accessible. In Indonesia, Patankar explains that these types of services, along with Amazon and Azure, there is a demand for entry points that will allow them to create a complete global infrastructure to support their offerings wherever their customers are located.

BDx Indonesia plans to serve these companies to achieve their goals and create brand loyalty.

The main factor in the company’s rate of progress cannot be ignored, with the pandemic provoking shortages of necessary components and infrastructure via supply chain disruption.

“The pandemic shifted the entire way people work, learn, bank, shop, and interact,” says Patankar.

“That created an instant demand for IT hardware, software services and data centres was one of them. At that same time, because of the supply chain and logistic problems, I myself witnessed hundreds and thousands of containers docked at sea port as the ships were not available.”

This was one of the main struggles that BDx experienced in the process of acquiring and operationalising its Indonesia data centre, which was due to the shortage of equipment necessary to not only function, but to build a data centre that supported the needs of its clients.

“We had a challenge, we had to keep the operations running. And we, at the same time,

had to keep increasing our capacity. We had to keep building new capacity,” says Patankar.

“We have done this at our Singapore data centre. When we acquired it there was a 1.5MW capacity. During this pandemic when nothing was moving, we were able to create additional 10MW capacity there. Customers appreciated that.”

Despite overcoming disruption from various industry-paralysing events, BDx Indonesia would not have succeeded had the team chosen to ride out the issues within its supply chain. This resulted in a shift towards a new way of operating, coming away from the traditional means of procurement and supply chain management to take an approach suitable for the digital era.

“MANUFACTURERS ARE NOT ABLE TO DELIVER THE EQUIPMENT ON TIME BECAUSE LOGISTICS ARE STILL AN ISSUE”

AVNISH PATANKAR COMMERCIAL DIRECTOR, BDx

“WE VENTURED INTO INDONESIA WITH A MISSION TO SUPPORT THE DIGITAL TRANSFORMATION OF INDONESIA”

“I believe some relaxation is coming, but the demand is still high. Manufacturers are not able to deliver the equipment on time because logistics are still an issue,” says Patankar.

“Instead of sticking to one supplier for one improvement, we diversified geographically. Different leading brands came together. We worked with different suppliers and reduced our reliance on a single one, but also in terms of geographical resources, equipment from Europe, as well as resources from the US and equipment from Australia, China, South Korea.”

Before BDx Indonesia could diversify its operations, the initial challenge was understanding the different specifications of various suppliers to determine the services that it could provide with each. Unlike the standard procurement method whereby the solution must be correct, the company adapted its approach to recognise that various models could achieve the same outcomes with a more flexible outlook.

AVNISH PATANKAR COMMERCIAL DIRECTOR, BDx

“We became transparent to our suppliers. We created a complete plan for five years: our capacity, increment plans, our expansion plans,” Patankar says.

“In every meeting, online or offline, we explained those plans to our suppliers. We became transparent. We said, this is all coming in and we need your support, which particular project do you want to pick up? Which project can you support? Which equipment can you support?

“As we were transparent, both sides, customers as well as suppliers, started believing in us.”

Rather than accepting the traditional approach to equipment delivery and leaving suppliers responsible for delivery on time, BDx Indonesia asks them what they can offer and adapts its approach accordingly.

“As the customer now considers us as their family, suppliers are our family. It’s not only about asking them, ‘Hey, can you deliver this equipment on time or not?’,” says Patankar.

“We need to look into their capacity, their capabilities, their financial stability, and a lot of similar and important things. So we need to work with them.”

This approach to suppliers and customers is what allows BDx Indonesia to focus more on building sustainable partnerships with companies to create understanding and cooperation while developing the edge potential of data centres in the country. By meeting the needs of stakeholders, BDx Indonesia is able to follow a more informed trajectory with support from some major businesses – one of them being the equipment and cloud provider Huawei.

“Huawei is one of our trusted supply chain partners. A good thing about them is their approach to us. Much like our own supply chain, other supply chain partners know we

Huawei DC Solution:

From Edge to Large DC

Facilitating Green Digital Transformation. Smarter, Faster, Greener.

are very transparent with our customers and so they do too,” Patankar explains.

“A supply chain partner of ours must be transparent. Huawei is very upfront, telling us what they can and can’t do on time. They’re aware of all the ongoing and upcoming projects, but what they do for us is plan inventory on their side so that they can help us to deliver the project on time in a costeffective manner.”

As the footprint of BDx grows, particularly in Indonesia, the company will continue to leverage partnerships to provide a much more agile approach to procuring the necessary components for its data centres, but also encourage a transparency method of customer service. In such a dynamic industry, BDx Indonesia can look ahead as early as six months and as far as 18 to assess the evolution of its operations –with increasing capacity being the primary, overarching endeavour.

“AS WE WERE TRANSPARENT, BOTH SIDES, CUSTOMERS AS WELL AS SUPPLIERS, STARTED BELIEVINGIN US”

AVNISH PATANKAR COMMERCIAL DIRECTOR, BDx

Beyond the facilities though, Patankar says that the organisation itself must develop to navigate its growth with an emphasis on the talent it already has within the team.

“It’s not only about just creating the facility or enabling business, it’s also about developing the team, creating the talent. People who work with us bring value to the company,” says Patankar.

“People who work with the company create the company, build the company. So we understood that talent is important in the data centre industry. There is a shortage and we need to address this. So, we already began on-ground training by sending our engineers from here to Singapore to train them in our live data centres with various standards of operation.”

For the last 30 years, Angela Wilkinson has worked alongside countless organisations to help them realise the transformational opportunities at their disposal.

Today, she is Secretary General and CEO at the World Energy Council (WEC) –the planet’s leading member-based global energy network – and is still driven by the same factors that motivated her to join the council in 2017.

She says: “I joined the WEC because I believed, as I still do, in our enduring mission and the importance of the work we do in enabling faster, fairer and more far-reaching energy transitions for the benefit of everyone, everywhere.”

The council is seen as the world’s only truly international and impartial energy organisation, positioning itself at the forefront of a visionary leadership agenda in the field.

ANGELA WILKINSON SECRETARY GENERAL & CEO, THE WORLD ENERGY COUNCIL

“I believe in our enduring mission and the importance of the work we do in enabling faster, fairer and more farreaching energy transitions for the benefit of everyone, everywhere”

TITLE: SECRETARY GENERAL & CEO

COMPANY: THE WORLD ENERGY COUNCIL

INDUSTRY: ENERGY

LOCATION: UNITED KINGDOM

Angela Wilkinson is the World Energy Council’s sixth Secretary General since its founding in 1923.

Wilkinson is one of the world’s leading global energy futures experts, an experienced energy executive and a published author. She has 30 years of experience in leading transformation initiatives relating to the economy, energy, climate and sustainability.

Having joined the World Energy Council in 2017, Wilkinson became Secretary General and CEO two years later. Her goal is to create a practical energy transition leaders toolkit and direct a new strategic insights programme. Prior corporate experience includes decades in Royal Dutch Shell and British Gas plc.

Angela Wilkinson

Technology is instrumental to achieving next-level capabilities across industries. But organizations that want to operate sustainably must choose technology that lets them adhere to strong environmental, social, and governance principles.

Appian Corporation, a process automation leader, is a critical piece of the digital transformation and sustainability puzzle. The enterprise-grade Appian Low-Code Platform is built to simplify today’s complex business processes, with process mining, workflow, and automation capabilities.

ANGELA WILKINSON SECRETARY GENERAL & CEO, THE WORLD ENERGY COUNCIL

Among its top priorities are:

• Informing and supporting policymakers with tools that enable sound energy systems policy, a strong regulatory framework, and the long-term thinking required for investment in energy infrastructure

“By quickly building apps that streamline and automate workflows, organizations are using Appian to make their processes for monitoring and reporting on ESG initiatives faster, simpler, and more effective,” says Meryl Gibbs, Emerging Industries Leader at Appian.

Digital transformation in ESG.

As an AWS leader enabling sustainability solutions built on the cloud, Mary Wilson, Global Sustainability Lead at AWS, talks about the partnership with Appian.

• Assisting governments, companies and communities to work together to deliver a sustainable energy future and manage energy transition

• Raising awareness of energy issues and their impact on future generations

“Our objective is to help our customers achieve sustainability goals across their business operations,” says Wilson. “[This means] looking at data availability, meaning access to more data, and enabling actionable insights. “Lowcode, cloud-enabled, technologies will allow organizations to build fast, learn fast, iterate, and continue to improve these insights to drive their sustainability outcomes.”

• Supporting talent development and capacity building of the next generation of energy leaders, innovators and start-ups working to accelerate the pace of clean energy transitions

Tarun Khatri, Co-Founder & Executive Director of Appcino (product part of Xebia), explains just how critical ESG is in the face of digital transformation. “The investment community now considers ESG reporting as a major factor for measuring performance,” says Khatri The collaboration will continually uncover new insights and provides customers the opportunity to accelerate their ESG goals with speed and security.

• Provide information to opinion influencers, including the media, on critical energy issues

“Both AWS and Appcino are amazing partners of ours,” says Michael Heffner, VP Solutions and Industry Go To Market at Appian. “We have an extremely long legacy engagement with AWS as our trusted, go-to-market partner and Appcino builds “meaningful, business-focused applications on the Appian platform and is amazing in all things ESG.”

“I believe in the power of the world energy community,” adds Wilkinson. “I like new ideas, but my curiosity is motivated to support real people and communities in making largescale systems change. This is the defining challenge of this decade and the choices and decisions taken this decade will affect generations for centuries to come.”

Executives from Appian, AWS, and Xebia share their collaborative efforts and excitement about their partnership in low-code, cloud, and sustainability.

“Addressing today’s complex energy challenge requires a humble leadership approach with agile, action learning that engages realities on the ground”

What makes a ‘good’ renewable energy policy?

By 1998, the WEC had already been dedicating its resources to renewable energy for 25 years. However, even to this day, what defines a ‘good’ renewable energy policy is constantly evolving.

“Good renewable energy policies, in short, are clean, inclusive and just,” explains Wilkinson. “They avoid technology prescription in progressing net-zero goals. Policymaking must also bridge the tensions between stability and transformation, maintaining a healthy dynamic between supply-centric and demand-centric interests in an increasingly turbulent global context.”

Referring to the Paris Agreement, the international treaty on climate change agreed in 2015, she adds: “Paris is a milestone not the destination. The challenges are to mobilise faster, fairer and more far-reaching energy transitions, and develop diverse, decentralised, decarbonised and digitalised energy systems.”

It is commonplace for the WEC to see governments, businesses and international organisations claiming that renewable electrification can scale without other clean energy friends. The council disagrees, insisting this approach isn’t pragmatic.

Wilkinson points to the first electrification revolution, which has taken 100 years and still left billions of people without reliable, affordable, modern energy access – in addition to the one billion who lack basic access.

“Countries who are succeeding have policies that support inclusive implementation – mobilising, enabling and convening more people, diverse communities and different industries, and understanding place-based realities,” Wilkinson continues.

“Addressing today’s complex energy challenge requires a humble leadership approach with agile, action learning which engages realities on the ground.”

World energy system ‘no longer fit for purpose’

Businesses, governments and organisations are well accustomed to setting sustainability-related targets, often tying in with the drive to achieve net zero.

And yet, despite accelerating technology innovation and ambitious promises of compensation for developing countries and vulnerable communities, the world is very likely to overshoot the goal of keeping global average warming below an increase of 1.5C since the pre-industrial days of 1850-1900.

In May, researchers from the World Meteorological Organisation concluded there was a 66% chance of passing the allimportant threshold for the first time by 2027, although they did stress the breach would likely be temporary.

“An increasing number of countries, companies, cities and other communities have set net zero targets with varying timelines and a diversity of roadmaps,” says Wilkinson. “But the truth is, even if all these goals are met, the world energy system is no longer fit for purpose.”

“There has never been a more significant moment to pull together visionary leadership and the world energy community”

ANGELA WILKINSON SECRETARY GENERAL & CEO, THE WORLD ENERGY COUNCIL

World Energy Pulse 2023

The World Energy Council recently published the findings of its annual Pulse survey, which pulls together the thoughts of global energy leaders from almost 80 countries.

The results provide a snapshot of current attitudes and trends felt across the energy ecosystem, while delivering global and regional perspectives of crises implications and transformational actions.

Key findings include:

• 59% of respondents agree that energy independence is critical to securing their countries’ climate-energysecurity agendas. However, this ‘me-first’ sentiment is challenged with the overwhelming (84%) acceptance that energy interdependence is the new global reality

• 86% of respondents said that effectively managing choices and trade-offs using the World Energy Trilemma framework – energy security, affordability, and sustainability – is the best approach to avoiding disorderly transitions and addressing the new, emerging challenges of climate resilient energy for sustainable development

• 64% of respondents continue to be concerned by the pace and progress of energy transitions, nearly double those who expressed similar concerns in the council’s Pulse survey last year

The WEC’s latest World Energy Pulse tells us almost two-thirds (64%) of global energy leaders are concerned that the current pace of energy transition is too slow to achieve the Paris Agreement commitments and the UN’s Sustainable Development Goals.

Wilkinson emphasises that countries achieving net zero by 2050 is “essential”, with an “ultimate prize” of a safe environment in which societies can “peacefully coexist and flourish”.

She adds: “Ambitious targets are a starting point, but we need a combination of concerted bottom-up and top-down actions to translate promises to practicalities.

“There is no one-size-fits-all; global orchestration of increasingly diverse policies, technology pathways, and socially affordable, acceptable solutions is the best way to succeed. There has never been a more significant moment to pull together visionary leadership and the world energy community.”

COP28: A critical milestone

It’s fair to say plenty of questions were asked when HE Dr Sultan Al Jaber –the CEO of an oil giant – was announced as the President of COP28, to be held in Dubai later this year. The phrase “conflict of interest” was frequently bandied around and there were accusations that net zero had been rejected.

Others, however, recognised an opportunity to scale renewables with other clean energy solutions and highlighted the need for inclusive implementation.

Wilkinson falls into the latter camp, pointing out that the United Arab Emirates has been leading the charge: “The UAE is one of a handful of governments worldwide that has invested serious efforts in mainstreaming strategic foresight and future design practices in national policy. Indeed, its leadership journey in embracing the transition from fossil fuels to renewable electrification started decades ago.

“The WEC is committed to working closely with visionary leaders, such as HE Dr Sultan, and helping pull together an inclusive, impactful climate-energy convening at COP28. It’s a critical milestone on the road to the 26th World Energy Congress in Rotterdam (April 2024) for our world energy community.”

DIGITAL TOOLS ARE REVOLUTIONISING SCOPE 3 EMISSION MANAGEMENT

With SAP’s Gunther Rothermel, we explore how businesses can utilise digital tools to better track Scope 3 emissions

WRITTEN BY: LUCY BUCHHOLZ

n an era marked by increasing environmental awareness, many businesses are undergoing a remarkable mindset transformation when it comes to sustainability.

But to achieve vital sustainability targets, businesses must extend their focus beyond just their operations. Although Scope 1 and Scope 2 emissions provide a solid foundation for emission management, Scope 3 emissions occur outside the direct control of the company. These are instead created by suppliers when developing or delivering products, or when customers use company products, for example. Scope 3 emissions are thus indirect and originate from the value chain, contributing to the lion’s share of a company’s carbon footprint –and they often account for more than 70% of a business’s overall emissions. By delving into Scope 3 emissions, businesses gain a comprehensive view of their environmental impact to uncover opportunities for a significant reduction. As with most aspects of modern life, technology is becoming a vital tool for tracking, monitoring and reducing these emissions.

Tracking Scope 3 emissions with technology

The current approach to carbon accounting, which involves monitoring and controlling Scope 3 emissions is heavily dependent on spreadsheets and partially automated tools that rely on approximations and averages for carbon footprints. However, these methods are insufficient. To accurately track carbon emissions, businesses must shift towards utilising precise and controlled data values throughout the entire supply chain.

“Digital tools increase data transparency, accuracy and reliability so that highquality carbon data, like a company’s financial data, is auditable, transparent and reliable,” says Gunther Rothermel, Senior Vice President and Head of Sustainability Engineering at SAP. “This is how digital tools

provide executives with a future-proof toolset to manage and reduce their carbon footprints.

“Implementing SAP’s sustainability solutions can be a quick time to value because they are SaaS-based, modular solutions. That means the solutions are hosted and made available for customers over the internet.

“What can be challenging, however, is not necessarily the technology, but the standards lying behind. That is, the data availability and data quality used to feed a level of transactional and granular management of Scope 3 emissions. Companies must take a ‘whole business’ approach to be able to record, report and act on reliable, accessible emissions data across both corporate and product levels.”

To achieve sustainable operations and effectively reduce carbon emissions on a large scale, businesses must ensure accurate and accessible sustainability data recording,

“Digital tools increase data transparency, accuracy and reliability so that high-quality carbon data, like a company’s financial data, is auditable, transparent and reliable”

GUNTHER ROTHERMEL, SENIOR VICE PRESIDENT AND HEAD OF SUSTAINABILITY ENGINEERING, SAP

Meet Gunther Rothermel

As Senior Vice President and Head of Sustainability Engineering, Gunther Rothermel and his team deliver product innovations on sustainability addressing four dimensions: holistic steering and reporting, climate action, circular economy and social responsibility. Rothermel helps businesses on their transformation journey with a new set of sustainabilityrelated capabilities offered by SAP.

reporting and action. As a leading provider in this domain, SAP offers a comprehensive range of modular, cloud-based sustainability solutions that address key challenges related to climate action, ESG reporting, circular economy, and social responsibility.

SAP has recently unveiled SAP Sustainability Footprint Management, a single solution to calculate and manage carbon flows with high granularity on company, process, and product levels across Scopes 1, 2, and 3.

Building on the capabilities of previously released SAP solutions, this latest addition

introduces advanced functionalities, such as enhanced management of diverse emissions sources and support for a wide range of industry-specific requirements. By incorporating SAP Sustainability Footprint Management into their operations, businesses can effectively measure, track and control their carbon footprints in a more comprehensive and precise manner.

“SAP Sustainability Data Exchange is a new solution designed to securely exchange standardised sustainability data, including product footprints, along the

GUNTHER ROTHERMEL, SENIOR VICE PRESIDENT AND HEAD OF SUSTAINABILITY ENGINEERING, SAP

“Companies must take a ‘whole business’ approach to be able to record, report and act on reliable and accessible emissions data”

value chain,” Rothermel says. “The solution allows precision accuracy by gathering actual carbon data directly from suppliers; it also uses standards and interoperability protocols developed in collaboration with the WBCSD PACT programme.

“With regard to ESG reporting, SAP Sustainability Control Tower supports companies in setting regulatory-compliant KPIs and disclosing sustainability progress to a broad range of frameworks. It provides a holistic view that is vital to understanding where emissions are occurring, setting accurate net-zero targets, and identifying specific areas to take action for maximum decarbonisation impact.”

Integrating digital tools into current processes

Without access to relevant and usable data, companies are unable to make informed and sustainable business decisions, particularly when it comes to reducing Scope 3 emissions. Digital tools play a crucial role in ensuring transparency, accessibility and reliability of emissions data. By leveraging these

“SAP Sustainability Data Exchange is a new solution designed to securely exchange standardised sustainability data”

GUNTHER ROTHERMEL, SENIOR VICE PRESIDENT AND HEAD OF SUSTAINABILITY ENGINEERING, SAP

tools, executives gain the necessary insights to make well-informed decisions regarding emission reduction strategies and determine the specific areas and extent to which emissions can be reduced.

“The much-quoted phrase, ‘you cannot manage what you don’t measure,’ sums up the need for digital tools well. Considering that more than 70% of a business’s carbon footprint lies within its supply chain, the inability to track, manage and gain insights from live data and embed it into core business processes can cripple the bestintentioned emissions reduction efforts,” Rothermel says.

To ensure companies can integrate digital tools into their existing sustainability management systems, they need to ensure they take a holistic view of their enterprise in their sustainability management system. This means they need to embed sustainability data into their core business processes, across key business functions, and ensure everything is connected.

“The best way to achieve this is to base sustainability management on the enterprise resource planning backbone,” Rothermel adds. “Using their Enterprise Resource Planning system, supported by specific sustainability capabilities, companies connect accounting and finance to human resources, manufacturing, supply chain, services, procurement and more. This allows deep insights through predictive analytics and scenario planning so effective business decisions can be made to run more sustainably.

“By connecting financial information and environmental information in a ‘Green Ledger’, for example, executives can make informed real-time decisions at the optimal place in the value chain, maximising sustainability and profitability.”

ESG STRATEGIES FROM THE WORLD’S LARGEST COMPANIES

As more companies are embracing ESG strategies, we take a look at the top 10 businesses from around the world that are leading by example

WRITTEN BY: LUCY BUCHHOLZ

ESG strategies enable businesses to navigate the shifting tides of sustainability. By integrating environmental considerations into their operations, companies can reduce their carbon footprint, conserve resources, and contribute to protecting the planet.

ESG goes beyond just “green” initiatives, extending to the realm of social responsibility, where businesses embrace DEI. By prioritising social impact, companies foster an inclusive work environment, attract top talent, and build strong relationships with stakeholders who seek partnerships with organisations that share their values.

Using datasets from Just Capital, we rounded up the top 10 ESG strategies from some of the world’s largest companies leading the way to positive climate action.

Cisco Systems Inc

CEO: Chuck Robbins ESG report

Cisco Systems Inc., commonly known as Cisco, has pledged its intentions to achieve net-zero emissions across all categories by 2040. Additionally, the tech giant established an interim objective to attain net-zero emissions for global Scope 1 and Scope 2 emissions by 2025.

In its Purpose report, Cisco emphasised several accomplishments related to ESG initiatives. Notably, the company has made substantial contributions – amounting to US$477m –for community programmes.

Verizon

CEO: Hans Vestberg ESG report 

As one of the largest telecom providers in the US, Verizon has emerged as a leading company at the forefront of ESG initiatives. The company has announced its commitment to generating renewable energy equivalent to 50% of its annual electricity consumption by 2025, while taking significant steps to address e-waste.

Verizon’s ESG strategy is built upon four pillars: governance, integration, engagement, and reporting. These pillars work together in a dynamic manner, providing a foundation for informed decisionmaking, genuine engagement, transparent communication and effective governance.

NVIDIA Corporation

CEO:

American multinational technology company NVIDIA Corporation is committed to acquiring or producing sufficient renewable energy to offset 100% of its worldwide electricity consumption. The company’s H100 GPUs, built on the cutting-edge Hopper architecture, boast an impressive 26x energy efficiency advantage over CPUs based on inferencing benchmarks. Demonstrating its dedication to environmental sustainability, NVIDIA proudly claims to power the most efficient supercomputer listed on the Green500 ranking for November 2022.

Apple

CEO: Tim Cook ESG report 

According to Apple Inc’s latest ESG report, the company has successfully avoided 23 million metric tonnes of emissions across all scopes. In its efforts to further reduce carbon emissions, Apple is actively pursuing environmentally-friendly designs –for instance, the transition to the Apple M1 chip in the 13-inch MacBook Pro has resulted in an 8% reduction in the product’s carbon footprint. Approximately 20% of the materials used Apple’s products are made from recycled content, and by 2030, the company aims to be carbon neutral.

Jensen Huang ESG report 

M1 chip

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PayPal

CEO: Dan Schulman ESG report

As part of its environmental sustainability efforts, PayPal has set a target to achieve net-zero emissions by 2040. The business also recognises that effective management of ESG risks and opportunities is integral to advancing its strategy and generating value for its stakeholders. The company’s ESG strategy reflects its comprehensive approach to these issues across the organisation, categorised into four key dimensions: responsible business practices, social innovation, employees and culture, and environmental sustainability.

Bank of America

CEO: Brian Moynihan ESG report

The Bank of America has set a goal to achieve net-zero greenhouse gas emissions across its financing activities, operations, and supply chain prior to 2050. Through its Environmental Business Initiative, the bank aims to mobilise and deploy US$1tn by 2030 to expedite the transition towards a sustainable, low-carbon economy. Bank of America is also advancing the sustainability of its operations, having accomplished carbon neutrality and procured 100% renewable electricity in 2019, exceeding their targets a year ahead of schedule.

Salesforce

CEO:

Marc Benioff ESG report

Salesforce’s ESG initiatives revolve around creating a sustainable, lowcarbon future with a carbon-neutral cloud, while striving to be a net-zero greenhouse gas emissions company and working towards achieving 100% renewable energy for global operations.

Salesforce also champions equality through initiatives focused on equal rights, pay, education and opportunity. The company’s pioneering 1-1-1 integrated philanthropy model inspires other companies by leveraging equity, employee time, and products to make a positive impact on communities worldwide.

Microsoft

CEO: Satya Nadella ESG report 

In 2020, Microsoft unveiled its sustainability commitments, outlining plans for fostering a more sustainable future. By 2030, Microsoft aims to achieve carbon negativity, removing more historical emissions than it has generated since its establishment in 1975.

The tech giant also strives to be water positive by 2030, replenishing more water than it has consumed. Additionally, Microsoft aims to achieve zero waste across their direct waste footprint by 2030, as well as actively working to protect and preserve ecosystems.

Intel Corporation

CEO: Patrick Gelsinger ESG report

Intel Corporation has committed to achieve net-zero GHG across its global operations by 2040, a remarkable feat in an industry known for its emissions. The manufacturing sector in the US alone contributes to approximately 23% of direct carbon emissions, making Intel’s dedication to ESG goals even more noteworthy.

In 2021, Intel demonstrated its progress in energy conservation, saving around 486 million kilowatt hours of electricity compared to the baseline date. Additionally, the company successfully reduced its total GHG emissions by 2% from the previous year.

To further its energy-saving initiatives, Intel has allocated approximately US$300m for investments in energy conservation at its facilities, aiming to achieve a cumulative energy saving of 4bn/kWh.

Intel’s dedication to ESG practices and its significant investments in energy conservation demonstrate its determination to combat climate change and contribute to a more sustainable future.

Alphabet

CEO: Sundar Pichai ESG report 

Google’s parent company, Alphabet, has dedicated the entire net proceeds from its US$5.75bn Sustainability Bond to support environmentally and socially-responsible projects.

In August 2020, Alphabet successfully issued the largest sustainability bond in history. The funds generated from this issuance have been used to finance both new and ongoing initiatives that address critical issues aligned with the company’s mission and long-term value creation goals.

Google’s sustainability strategy revolves around three key pillars, including accelerating the transition to carbon-free energy and a circular economy; empowering individuals and communities through technology; and creating positive impacts for the people and places where Google operates.

By actively focusing on these pillars, Alphabet and Google are committed to having a meaningful impact on global sustainability and promoting positive change for the benefit of society, its employees, and stakeholders

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