SUSTAINABLE CONSULTANCIES
THE BOON OF SCIENCE-BASED TARGETS
INDIRECT PROCUREMENT UNDERMINING SUSTAINABILITY
SUSTAINABLE CONSULTANCIES
THE BOON OF SCIENCE-BASED TARGETS
INDIRECT PROCUREMENT UNDERMINING SUSTAINABILITY
I NCLUS WORKFORCES BRIN G A D I VERS OF OP
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Sustainability is making waves in boardrooms across the world, but is it enough to stem the tide?
No doubt about it: sustainability is an increasingly important metric by which companies measure their success.
A question, though, emerges: how much is enough? We’ve approached this issue in the spirit of checking on progress. First we hear from Ernst & Young, consistently one of the top sustainability consultancy companies in the world, as it discusses its advisory role for UK companies.
Another area looked at in this issue includes the matter of indirect procurement, one of the sleeping gaps in the sustainability marketplace. Also there are science-based targets – how is the business community adapting to the targets laid out in the 2016 Paris Agreement? And then there is racial diversity in the workplace. In the US, the Supreme Court will potentially be gutting the last half century of affirmative action policies. What are businesses going to do to ensure that they remain diverse and inclusive?
cameron.saunders@bizclikmedia.com
012 BIG PICTURE
A dearth of snow for ski season
014 THE BRIEF
The latest insights from the world of sustainability
016 TIMELINE Electric vehicles –a 19th century history
018 TRAILBLAZER
Victoria Burrows, the Advancing Net Zero Director for the World Green Building Council
022 FIVE MINS WITH Lucy Ramsay, Head of Portfolio, Innovation and Sustainability at Accolade Wines
Sustainability leaders must not neglect action in favour of reporting. Therefore, it is imperative to overcome the challenges associated with engaging suppliers at pace and scale to move the needle in supply chain sustainability.
Industry leaders are prioritising developing their business capabilities so that they can:
Engage suppliers with strategy
Collect data from suppliers
Support suppliers through change
Developing these capabilities does not happen overnight. But businesses must act now so that they can...
Report on Scope 3 and drive decarbonisation across the supply chain.
Achieve compliance with legislation and standards such as human rights due diligence, plastic tax/EPR, RSPO, EUTR, FSC, Leaping Bunny and chemicals of concern.
Promote more sustainable practices across the supply chain such as green chemistry, sustainable agriculture, and supplier diversity and inclusion.
Whether you need help to get started or require a scalable platform to build your strategy on, Supply Pilot can help.
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January in central Europe was unseasonably warm. There was even one day when eight different nations recorded the hottest ever temperatures for the time of year. This state of affairs means that decent snow is few and far between in the Alps, undermining the economic lifeline that is the winter ski season.
An exhaustive study led by former UK Energy Minister Chris Skidmore laid bare for the British government and public what could be done to make the country a bigger contender in sustainability on the world’s stage. The verdict? While the UK has a decent record, there is still much that can be done.
Among the 129 recommendations that the report set forth were backing businesses to include incentives for investing in decarbonisation, putting in place a planning system that will keep net-zero transition at the forefront, driving the construction of energy efficient homes via legislating for the Future Homes Standard and developing cross-structural infrastructure.
Often overlooked, no observer should forget that the construction industry – and ancillary economic functions – make up 40% of carbon emissions in the world.
4 0 % 4 0 %
As the popularity of vaping takes off around the world (especially among young people), the adverse effects on the environment are only just beginning to be understood. It’s not a good sign: in 2020, the tobacco industry released 80mn tonnes of CO2 into the atmosphere.
READ MORE
In a survey of C-suite denizens, climate change has emerged as the second most important issue of the year, just behind the adverse economic headwinds.
READ MORE
A report from Globant and Inmarsat has shown, through new data modelling, that with the right implementation of satellite technology, a further 18% of greenhouse gases could be cut by 2040.
READ MORE
The international beverage juggernaut keeps winning plaudits for its environmental record: over the past decade, it has saved 1.8mn tonnes of CO2e as well as 6.5bn litres of water in its operations; 98% of its raw materials come from the same markets as its manufacturing; and it aims to train one million young people by 2025 through its #YouthEmpowered community programme.
Coca Cola is, however, also the single largest plastics polluter in the world, showing that you can be two things at once when it comes to sustainability. Unfortunately, the Atlantabased company has also doubled its trash footprint over the last five years. Despite this disreputable record, the company managed to be the leading sponsor of the UN’s COP27 climate change event, summoning multiple accusations of greenwashing.
We think of our era as the one of electric vehicles. Looking back to the time before Henry Ford, though, we see that ours is not the first to regard electric vehicles as a thing of the future
18
The first ever electric cars
From Hungary to the Netherlands to a young United States, the first small-scale electric car technology starts to put a dent in the monopoly of ground transport held by horses and buggies
18
The first electric vehicle debuts in the US
William Morrison, a son of Des Moines, Iowa, creates the first electric vehicle in the United States. In appearance, it resembles a horseless carriage more than it does a car
Electric vehicles take over the world
Electric vehicles have taken off, and these years mark the first apogee of electric vehicles. No fewer than a third of all the vehicles on the American road are electric vehicles
19 08 - 19 12
The Model T rolls off the line
Once Henry Ford’s Model T starts rolling off the assembly line in Detroit, the writing is on the wall for the first efflorescence of electric vehicles. The age of gas-powered cars is officially on
Things start becoming more sophisticated. The world’s greatest inventor, Thomas Edison, gets to work developing an electric car battery, while Ferdinand Porsche develops the world’s first hybrid electric car
19 20 - 19 35
Roads improve. Texas starts pumping cheap crude and petrol stations begin pullulating across the land. This means the end of electric vehicles – at least for now – and, by 1935, they have all but disappeared
NAME: Victoria Burrows
JOB TITLE: Advancing Net Zero Director
COMPANY: World Green Building Council
The construction industry is one of the most vital tells of economic growth. In our age – one marked by housing shortages, predicated on a dogma of constraint expansion, yet tempered by climate catastrophe – it’s more essential than ever that the building industry, as well as the many ancillary sectors associated with it, become clean and sustainable. To give an idea of the enormity of the issue: the building sector is responsible for 40% of global emissions.
So, then, how does this pillar of the economy get clean and decarbonise?
One place at which to look is the work of the World Green Building Council. Founded (and still headquartered) in the US in 1993 and with 36,000 members across the world, this globe-spanning entity is a network of 70 green building councils with a stated mission: “To radically improve the sustainability of the built environment by transforming the way it is planned, designed, constructed, maintained, repurposed and operated.”
Through holistic approaches to reducing emissions, we can also bring significant social and economic benefits
Adding a certain gist to this outlook is an articulated vision, which reads that society’s built environment should enable people and the planet to thrive by “mitigating and adapting to climate change, eliminating waste and maximising resource efficiency, embracing and restoring nature and promoting biodiversity, optimising the health and wellbeing of people, and creating long-term value for society and improving quality of life”.
A bold vision, indeed. So how do you go about doing it? Look no further than the work of Victoria Burrows, the Advancing Net Zero Director at the World Green Building Council.
Based in France, her work nevertheless echoes around the world. In-keeping with a career driven by the dual passions of building and sustainability, Burrows’ academic background does not surprise: a degree in Architecture and Environmental Design from the University of Nottingham.
Up to this point in time, her career hasn’t deviated too far from this path: for a decade and a half, her professional appellation is most succinctly stated as an ‘environmental construction consultant’, and it is in this capacity that she has worked around the world. Among the more particular areas in which she has become involved is client-side advisory services, green-building rating tool consultancy work, and as an on-site sustainability head for a major international contractor.
Added on to this sterling resume is a book she co-authored with David Strong entitled, A Whole System Approach to HighPerformance Green Buildings, which provides a guide to current approaches in sustainable building, replete with case studies and practical examples.
With her role at the World Green Building Council, Burrows has her work cut out for her. The Council works with the industry to deliver
on the ambitions of the Paris Agreement, as well as the UN’s Global Goals for Sustainable Development. Burrows wants to see an industry that is Net Zero by 2050. One that will make sustainable construction second nature. Indeed, construction will have to halve its emissions as soon as 2030 so that warming is kept to 1.5 degrees. “No emissions, no fossil fuels,” she says. “That is a huge challenge. Net zero is part of the journey of being completely emission free.”
First things first: identify the target of decarbonisation. It’s not just buildings, it’s the entire built environment; that is, the buildings and the infrastructure holding those buildings together. She must demonstrate that addressing emissions in the built environment is a critical climate solution.
As Burrows told Bloomberg: “Through holistic approaches to reducing emissions, we can also bring significant social and economic benefits – and we really felt like we used that moment to demonstrate why it’s necessary to tackle emissions from the built environment.”
To do this, the Council must work with sundry players from across the world of construction: “The membership that the World Green Building Council represents spans right across the value chain. We engage with investors and policy makers, right across to SMEs and the supply chain that are actually building the buildings and the equipment that goes into operating thos buildings.”
In the end, Burrows hopes her organisation’s work will change “the ways that buildings are designed and built, the way they are operated and the way they’re optimised for deconstruction and disassembly”.
“It’s a complete shift from how we’re used to building buildings and infrastructure systems, so we support industry along that journey,” she concludes.
It’s a complete shift from how we’re used to building buildings and infrastructure systems, so we support industry along that journey
Unsurprisingly to many, wine is one of the world’s most popular beverages. It is also among the most deleterious to the environment. Lucy Ramsay, Head of Portfolio, Innovation and Sustainability at Accolade is seeing that it becomes sustainable.
» The majority of Accolade Wines’ brands that are sold in the EU and UK have been certified carbon neutral since 2020, an initiative we are committed to and really proud of. The certification is part of the long-term commitment to sustainability and reducing our impact on the planet, which we made in our global strategy “Making Every Drop Count”.
The creation of my role earlier this year shows our dedication to sustainability, its importance on our agenda and desire to make significant changes in this area.
Overall, 98% of all the packaging (by weight) that is used in the UK is recyclable.
We have also launched a new wine brand, Wise Wolf, which is bottled in 100% post-consumer recycled glass and is 100% recyclable. We are proud to lead the wine industry with Wise Wolf’s innovative reimagining of what wine can be, rewriting the rules around traditional wine packaging.
Not only is Wise Wolf certified carbon neutral, but it also comes in a distinctive recyclable glass bottle, made up of 95.1% recycled materials. The labels are made from 100% recycled paper and the closures are made from 100% recycled plastic. Even the outer cases are made from 100% recycled paper pulp.
Every element of the packaging has been carefully considered, including bottle shape and size. From head to tail, the total pack is made from 95.1% recycled materials and can be recycled again. The remaining 4.9% consists of a virgin liner and bonding agents, used within the packaging. We’re on a journey to reduce this further and improve each element of the packaging.
For the range being sold in Europe, we have consciously chosen to source our wines from regions that reduce the ‘wine miles’; in this case, France.
“
Although glass is a great material with many benefits relating to recyclability, transporting and manufacturing, it is currently a greenhouse gas-intensive process”
» Within the supply chain, the sheer complexity of our business alongside gathering accurate, robust data can be time-consuming and difficult but is essential to our progress. Collaboration with data analysis experts using machine-learning software within manufacturing is leading to significant uplifts in wastage reduction and improvements in Overall Equipment Effectiveness (OEE).
Collaboration with suppliers and on-site trials help us understand the
Over 31 billion bottles of wine are consumed per year globally
ability of the market to support us in reducing reliance on transportrelated fossil-fuels. For example, we are currently assessing an opportunity to replace on-site diesel consumption with Hydrotreated Vegetable Oil (HVO).
Another significant issue is our reliance on natural gas, used to raise steam and hot water to meet hygiene and food safety requirements. We are gathering intelligence around options and timelines of availability for hydrogen, hydrogen mix, and REGO certificates, while, at the same time, continuing the process using data analysis to optimise our current levels of consumption.
» Glass is our biggest hurdle to overcome. Although glass is a great material with many benefits relating to recyclability, transporting and manufacturing it is currently a greenhouse gas-intensive process.
The sheer number of bottles moving through our supply chain makes this one of our biggest levers to pull. However, the issue is further exacerbated by consumer perception of wine and it being synonymous with heavy glass bottles. Generally speaking, the belief is that the heavier the bottle the better the wine.
It is a monumental task to start evolving consumer attitudes, so people consider different packaging solutions for wine, but this is something we are committed to doing.
There is an increased focus within the UK glass bottle industry on transition to renewable energy, which will significantly reduce greenhouse gas emissions from manufacture. In addition to these efforts, at Accolade we are exploring various initiatives such
as lighter-weight bottles, and how we drive consideration and purchase for alternative formats, such as Bag in Box and recycled PET flat bottles.
If we look at the example of Bag in Box, the numbers speak for themselves: the packaging for our premium Bag in Box product, Vino Società, is at least 80% lighter than the bottle equivalent; this means less energy is required to transport it, so there are less CO2 equivalent emissions.
There are also plenty of benefits for wine drinkers who have less money to spend at the moment. A 1.5L format gives shoppers value and convenience, with the boxes equivalent to two 750ml bottles and sold in a fridgefriendly size. The wine can stay fresh for up to six weeks after opening, which minimises waste and is ideal for single glass occasions.
Courtney Treacher Winemaker for Brookland Valley“Within the supply-chain, the sheer complexity of our business and gathering accurate, robust data can be time-consuming and difficult but is essential to our progress”
Innovators are paving the way for a more resilient, sustainable and efficient future. The rules have changed. It’s time for DISRUPTION.
Tech LIVE Virtual returns to highlight the innovators changing the industry through expert keynote speakers, interactive fireside and panel discussions. This exclusive 1-day virtual event will bring together the greatest voices in the industry for an essential deep dive into the future of Technology, AI and Cyber.
Brought to you by BizClik, Technology, AI and Cyber Magazines, the event will shine a light on essential topics such as the AI revolution, quantum computing, the virtual workplace, technology’s place in sustainability and much more.
Position your business as a pioneer in Technology and showcase your values, products and services at Tech LIVE Virtual.
This is your chance to share your innovations with the technology community by making an impact in front of fellow decision-makers and influencers as well as accessing potential partners via an active and engaged audience.
See you on the 8th June 2023.
It’s time for DISRUPTION.
WRITTEN BY: SEAN ASHCROFT
PRODUCED BY:
CRAIG KILLINGBACK
Search the term ‘G4S personnel’ in Google images and the result is startling: screen upon screen of vigilant security staff clad in armoured clothing, many of whom are armed. They are protecting everything from gas and oil plants in troubled regions to cash-in-transit vans transporting banknotes and coins.
These are the frontline employees of G4S, the multinational company that specialises in manned security services.
Asked who inspires him, Jon Willescroft –Chief Procurement Officer at G4S – doesn’t even pause.
“We've got half a million people, globally, on the front line, and every day those men and women pull on their uniform, they’re putting themselves at risk,” he says. “They define our business, putting themselves in harm’s way to deliver services. It's impossible not to be inspired by these people who have the toughest jobs.”
G4S is part of Allied Universal, a leading security and facility services company that provides proactive security services and cutting-edge smart technology to deliver tailored, integrated security solutions that allow clients to focus on their core business.
It provides trained and screened security officers, as well as security systems such as access control, CCTV, intruder alarms, fire detection, video analytics, and security and building systems integration technology.
Jon
is Chief Procurement Officer for G4S – part of the world’s largest security company – and it’s his job to drive meaningful, sustainable change
As a result, G4S spends over a billion dollars a year with suppliers and subcontractors, giving business to thousands of SMEs across the globe. “Suppliers and subcontractors are a critical part of how we deliver for our customers and those in our care,” says Willescroft. “This is why it’s essential we partner with the best companies and organisations across the globe.”
Easier said than done, when you have 150 procurement people scattered across the globe. Willescroft concedes that managing a large global, fragmented team is a massive undertaking.
“Managing a global team is all about communicating and then adapting that communication to the local audience”
JON WILLESCROFT CHIEF PROCUREMENT OFFICER, G4S
“It’s really challenging,” he says. “From a procurement perspective, I've got people spread across the world, and within that you've also got big cultural differences as well as a wide range of capabilities, skills and knowledge.”
This, he says, is why G4S has crystal clear minimum standards and requirements.
“Whether I’m talking to a procurement administrator in Columbia or a head of procurement in Belgium, I talk in a language that figuratively they understand,” he says. “And I also have to take the time to embed the message.”
“You can't be passive about it. You can't just send out one set of standards and expect people to understand and comply with them.”
TITLE: CHIEF PROCUREMENT OFFICER
INDUSTRY: SECURITY
LOCATION: LONDON UK
Jon Willescroft is an ambitious, energetic and commercial CPO, specialising in reshaping procurement in large and complex organisations. Jon currently leads procurement at G4S, part of the world’s largest security company, encompassing 150 people across 90 countries, and over $1Bn spend. His focus at G4S is driving sustainable, commercial transformation across this complex global business and its supply chains. Prior to G4S, Jon held a number of procurement leadership positions in financial services and pharmaceuticals, as well as procurement advisory roles.
Willescroft also uses what he dubs “positive tension” as a management strategy.
“By positive tension, I mean regions and categories challenging one another to drive value. It’s important that this exists between my global category leads – who deal with the international business – and the regional local procurement leads.
“This is the matrix model I've employed and I think it works pretty well.”
Data is another weapon in his arsenal.
“The insight you drive from data is absolutely key. It's the glue that holds the procurement function together. Data allows us to talk about risk, performance, cost savings and sustainability in the same language, which makes it much more powerful to the wider business.”
Keeping his global team engaged, informed and motivated is another major challenge, says Willescroft: “Given the complexity and the geographic spread of the team, my objective is to make everyone feel part of a single team – one global
“If you don’t embed sustainability into your everyday processes and routines, then you’re just sticking stuff on that will eventually fall apart”
JON WILLESCROFT CHIEF PROCUREMENT OFFICER, G4S
professional procurement function – and to feel proud to work in that team.”
There are no “dark arts” involved in this. “It’s all about communicating,” Willescroft says, “and adapting that communication to the local countries.
“Within this, you also need consistency of message. You need to clearly lay out the roadmap of where we're going across our core pillars of procurement – whether that’s sourcing, supplier management, or sustainability.”
Technology helps, too. G4S is in the process of launching a global procurement capability development tool, which Willescroft says will provide people with “a map of where they are today from a development perspective against the skills and competence we'd expect them to have”.
If managing people is one onerous challenge, then protecting the bottom line is another. So, how does Willescroft drive value in such a fragmented global market?
“Wherever we can leverage globally with suppliers, we do so,” he says. “But a lot of our supply chains are by their nature localised, which is why we always make sure our category leaders are very collaborative. They need to be smart but also have a high emotional quotient. They have to be able to drive change, which is a big part of the job.”
In Willescroft’s view, this is vital. “If our people lack the right skill set or aren’t motivated in the right way, then we'll fail. You need the right people, and you need to know how they’re executing in their country.”
Because G4S is a low-margin business, Willescroft says the role makes specific demands of him.
“You're more likely to primarily think short term in a low-margin business,” he says. “If
you're a higher-margin business, you have the flexibility to think a little longer term.”
He adds: “But whatever business you work for, as a CPO, you have to be a commercially-focused leader and deliver what the business needs to be successful. And what ‘successful’ looks like changes from business to business.
“I think there's more of a pull for procurement in a low-margin business like G4S, and probably the biggest challenge here is you have to work really hard to educate and drive the agenda of the business. You have to give the business what it needs, not what it wants.”
Helping Willescroft and his team give G4S what it needs is a raft of technology-driven changes. Yet, underpinning this multilayered transformation process is something that has nothing whatsoever to do with tech: rock-solid values.
“Before you try and improve things, you've got to strengthen the foundations,” he says. “By that, I mean strengthening the procurement community network by evolving the controls we have in place and making sure we're delivering sustainable, measurable savings across the business. These are the building blocks.”
On top of this G4S is driving change through data insights and KPI dashboards to give it visibility, both of its internal controls and its supply chain.
With any change project, taking people along with you is critically important – and Willescroft’s approach to this sees him again drawing from the communication well.
“You communicate clearly around purpose and direction, as well as why we're doing what we're doing. You make clear the benefits of working in a leaner organisation with leaner teams, such as there being more development opportunities for people within the team.”
He adds: “I'm also keen that everyone is stretched beyond their core role in procurement, because this puts people at
“Understanding the sustainability standards of suppliers worldwide involves knowing where the risk sits and how we can best manage that risk”
JON WILLESCROFT CHIEF PROCUREMENT OFFICER, G4S
the heart of driving the change. In this way, you win their hearts and minds, rather than rendering change as something that is done to them.
G4S has, according to Willescroft, worked closely with Page Consulting on this. “They've helped us ramp up and execute really quickly in the UK on procurement capability development.”
One key area of the change process at G4S is supply chain sustainability –something that’s growing exponentially in importance across all organisations. Another is transformation around supplier
management and assurance, which is designed to give the company better visibility of suppliers, not just from a risk perspective but also in terms of performance.
The goal is to drive value and innovation, Willescroft says.
With sustainability and ESG initiatives –digitally-driven or otherwise – Willescroft believes the danger is that “you stick stuff on to existing processes and then it just falls apart”. Embedding, he stresses, is key.
Page Consulting focusses on supporting customers with talent management, consulting & advisory services across transformation, technology, supply chain, operations and HR.
We support our clients in solving tomorrow’s challenges, today – delivering efficient, affordable, highly specialised and customised solutions.
“How do we do that? By making sure that, at a functional level, ESG and sustainability are a core part of how we are measured and how our objectives are measured. This way, everything flows all the way down to individual objectives.”
“Over the coming year, everyone has targeted individual measures that are not only around commercial delivery, but are also really clear on ESG and sustainability objectives. This means these topics are standing agenda items every time we engage with the business. Every time we sit down and review performance with the business units, or talk about sourcing, deals, or supply management performance, then sustainability is a core part of that.”
Only by constantly talking about sustainability and ESG does Willescroft believe you can fully embed them into a business. He also points to the importance of having clarity on priorities.
“Sustainability is a broad subject, and you're in danger of spinning your wheels if you don't prioritise. I have top-down support from the executive committee, who align the procurement sustainability objectives with the corporate ones.”
In this way, the areas he agrees upon with the executive committee “become our absolute focus”.
Willescroft adds: “So, we have our core standards and policies – which are like hygiene factors – and then beyond this, the focus is on supply chain transparency.”
“The CPO role is often about telling the company what it needs to hear, rather than what it wants to hear”
Understanding the sustainability standards of its suppliers around the world is a big part of this.
‘Do we understand where the risk sits?’ and ‘Can we manage it?’ are the two key questions that Willescroft highlights here. “The areas where we're investing most time, effort and resources are net zero, supplier diversity, and human rights.”
To this end, G4S recently launched an initiative in the UK to promote a broader representation of diverse-owned suppliers in its supply chain, with the aim of furthering
diversity and inclusion throughout. Broadly speaking, a supplier is considered diverse when half or more of the venture is owned and operated by a variety of ethnicities, those with disabilities, women, from a range of social backgrounds, or those from the LGBTQIA+ community.
As part of the scheme, G4S is working with Kaleida International – a UK and EMEA B2B marketplace for tenders connecting buyers to diverse suppliers.
Willescroft says: “We’re committed to supporting diverse suppliers. Our suppliers
play a critical role in helping us run a successful business, delivering excellent service to our customers.
“Greater diversity of suppliers brings a richness of thoughts, ideas and innovation. It’s also critical that our business reflects and supports the societies in which we operate, including often more marginalised, diverse communities.”
G4S is also taking big strides in its global 2050 net-zero commitment, with procurement at the heart of this programme.
Willescroft says: “We’ve made great progress this year with our fleet decarbonisation. Working closely with our UK partner, Leaseplan, over three quarters of our new vehicle orders have been low-emission vehicles.
“We’re also now getting to grips with our supply chain emissions which account for 70% of the total, and will be working collaboratively with our major suppliers to drive this down.”
Sustainability
Magazine interviews Rob Doepel, Ernst & Young’s UK Managing Partner for Sustainability, to hear what’s new for the major consultancy
WRITTEN BY: CAMERON SAUNDERSErnst & Young may be a global leader in many things, but it has an unparalleled record when it comes to advising companies on how to become more adaptable in the face of the challenges of today and tomorrow: green transition, sustainability, and ESG compliance.
Unsurprisingly, we were happy to sit down with Rob Doepel, the company’s recently appointed UK Managing Partner for Sustainability, to hear about his breadth of responsibilities as well as the company’s new directions – it’s a vast undertaking, both for him and his company.
“We've got 17,000 people in the UK, about 380,000 globally, so under that banner of sustainability, there are a lot of services that we offer. My role, really, is to ensure that we're bringing all of that capability to clients across different
What if resiliency isn’t about withstanding today but envisioning tomorrow?
sectors, but with a bit of a focus under that sustainability banner of decarbonisation and net zero.”
While this inordinately large purview lends itself to a veneer of impersonality, Doepel encourages a more nuanced outlook. For nearly two decades, he has been at the consultancy and is therefore familiar with the company culture. It’s not faceless and vast; rather, in Doepel’s words, it is “a very collegiate firm”.
“It's part of a partnership, which means that it's quite an intimate firm for the volume of people we have. So the size of us was still quite intimate, with that level of camaraderie and teamwork still there, but we've obviously grown exponentially over that time as well.”
Despite the enormous range of problems that Doepel faces, patterns do emerge: “Whilst the specific challenges that they're facing are different, a lot of the organisational challenges that they're facing are exactly the same: around prioritisation, around focus, around engagement, around employee engagement. And I have that sort of privilege, I suppose: you end up seeing lots of themes that are prevalent across all companies.”
In embracing sustainability, EY is not just keeping up with the exigencies of doing business in this changing world, but there’s
“My role, really, is to ensure that we're bringing all of that capability to clients across different sectors, but with a bit of a focus under that sustainability banner of decarbonisation and net zero”
also the matter of keeping the company up to speed with what its employees think is important. Sustainability brings the pressure. “The pressure coming from employees on this topic is unstoppable. It’s pervasive across all sectors, therefore there is a need to focus on it – not least because we think it’s a huge value creation theme. For your people, for the attraction and retention of talent in a very challenging market, this needs to be one of our top, if not the very top, priority.”
But to an extent, EY has had to roll with the punches. Stepping into any role at the beginning of 2022, nobody could foresee
ROB DOEPEL MANAGING PARTNER FOR SUSTAINABILITY, EY“I think back to the start of the year and how quickly the world, and therefore our plans, changed; the type of work we did changed”
the multitudinous crises that would come to plague the global economy – the war in Ukraine affecting the price of energy, as well as inflation more generally.
Doepel notes: “I think back to the start of the year and how quickly the world changed and, therefore, our plans changed; the type of work we did changed. Sometimes the prioritisation from our clients changed as well. So we had to flip, to be a bit more reactive and work on some short-term objectives rather than perhaps some of the longer term strategic work that we had started the year on.”
Rob DoepelTITLE: MANAGING PARTNER FOR SUSTAINABILITY
COMPANY: EY UK&I
As the Managing Partner for EY's UK&I Sustainability business and a member of the UK&I Performance Markets and Investment Committee, Rob focuses on bringing the best of EY’s endto-end offerings to our clients across all sectors. As a practitioner, Rob brings over 20 years’ experience in delivering largescale transformational change, both within industry and as an advisor.
Born and raised in Australia, Rob has worked across the globe for a variety of clients within numerous industries including financial services, transport, pharmaceuticals and media. For the past 15 years, Rob focused on the power and utilities industry, helping clients navigate an ever-changing consumer, regulatory and political environment across transmission, distribution and retail energy.
But this hasn’t changed fundamental objectives. As the UK – and the world at large – cottons onto the need and, indeed, the legal imperative to become sustainable, the year ahead looks like it will be a busy one for Ernst & Young, as it helps its clients in the all-important process of compliance:
“The thing that has pleasantly surprised me, if you like, is the willingness of organisations to collaborate with direct competitors to tackle some of the sustainability challenges that they face”
ROB DOEPEL MANAGING PARTNER FOR SUSTAINABILITY, EY UK&I
“2023, I think, will be a year of net zero and transition plans. We have got guidance out for consultation, and all listed companies in the UK are going to have to publish their net-zero plans. We've done some initial benchmarking against plans that have been published, and they're well short of what needs to be published under the TPT guidance. So I think 2023 is going to be a busy year for lots of organisations to get those plans up and running.”
Doepel senses a certain urgency among EY’s clients, who all accurately sense that the time to tackle the problems implicit in sustainability is today. He notes this: “What hasn’t surprised me is that this topic is urgent and important for literally every client I talk to.”
To end on a note of optimism, what does seem significant is that a certain sense of competition has either been dulled or sharpened, depending on how you look at it.
“All clients are desperate to understand and learn from what others are doing. In our role of convening clients and organisations, one thing that comes out is that they’re really encouraging us to help bring them together with their peers and competitors, so they can learn from each other. And I suppose the thing that has pleasantly surprised me, if you like, is the willingness of organisations to collaborate with direct competitors to tackle some of the sustainability challenges that they face.
“After all, if you are trying to decarbonise a supply chain and it’s an industry problem, it’s really hard to do that on your own, right?”
When it comes to public opinion, data centres are among the industries that face the biggest of uphill battles. The sector – and not always without good reason – has long been perceived as the antagonist of the world’s sustainability targets. And now, this long-standing reputation is proving a major obstacle to the growth of the sector.
Despite the fact that the data centre industry is full of pioneering sustainability advocates, each of whom is developing sophisticated, future-proof, green solutions, it’s still a challenge to reverse the state of public opinion.
So, how can companies that are leading the charge towards a greener future establish the right reputation in their marketplace and successfully demonstrate their sustainability commitment to the public?
In an exclusive interview with Edgar Van Essen, Managing Director of Switch Datacenters, we learned about how the company is deploying unrivalled green initiatives and ensuring those efforts don’t go unnoticed.
TITLE: MANAGING DIRECTOR
COMPANY: SWITCH DATACENTERS
Van Essen joined Switch Datacenters five years ago as Managing Director and - together with Gregor Snip (CEO & Co-Founder) - is responsible for the strategic, daily growth of the company.
Before joining Switch Datacenters, Van Essen was an Executive Vice President leading a large region for a renowned Swiss high tech company.
Van Essen has a long and successful track record in building out the digital infrastructural markets in EMEA, and has been very successful in implanting new growth strategies across Europe. He holds a Master Degree in Business from Rijksuniversiteit Groningen, and is driven by innovation and smart new business models.
Switch Datacenters is an Amsterdambased data centre provider that has been at the forefront of the region’s sustainability focus for the last 15 years.
moved into large hyperscale and wholesale site development. We’re not known to everybody, and we like to keep it that way,” explains Van Essen.
“We are not shouting from the rooftops what we do – that doesn't help us in our plans to get the right locations and the right new sites in Amsterdam. So we have a deliberately low profile, but in Amsterdam, we know every street, and every potential building that we could turn into a data centre.
Every year, Switch develops new data centres and adds to its expanding portfolio.
“So we have more than 120MW of data centre capacity in development in Amsterdam. But, when we have bigger customers on board, we might also follow them abroad,” Van Essen adds.
“Our role in the Dutch data centre market is to be the challenger. We’re coming from a relatively small position in retail and, over the last three years, have succesfully
The company was founded to address what they saw as a gap in the market and bring a new approach to the industry.
“Switch Datacenters started 15 years ago by
“Our role in the Dutch data centre market is to be the challenger and innovator”
EDGAR VAN ESSEN MANAGING DIRECTOR, SWITCH DATACENTERS
Schneider Electric’s Thierry Chamayou explains why sustainability is a strategic imperative for the data centre industry
THIERRY CHAMAYOU, VICE PRESIDENT CLOUD & SERVICE PROVIDERS EMEA, SCHNEIDER ELECTRIC“Within the last few years sustainability has moved from a ‘nice to have’, to one of the top three procurement considerations for end-users and operators.” says Schneider Electric’s Vice President, Cloud Service Providers, EMEA, Thierry Chamayou.
Schneider Electric, who has signed the 17 science-based targets that form the foundation of the United Nations’ sustainable development goals has made sustainability a fundamental focus of its operations, positioning itself as one of the world’s leading authorities on net zero. Today the company develops technologies for several critical sectors, including buildings, grids, industrial manufacturing, and of course, data
centres. It is here that Chamayou believes data centres are leading the charge and demonstrating that energyintensive industries can be a key enabler for decarbonisation.
Sustainability has indeed become a strategic imperative for data centres, and for businesses embarking on this journey, Schneider Electric is leading by exampleestablishing new innovations and investing significant amounts of revenue in research and development. Chamayou tells us that the company is not only helping organisations improve efficiency and reduce emissions, but is helping business to establish strategies that will enable long-term, sustainable change.
A key example is its position as a leader in the Power Purchase Agreements (PPA) market, where it was recently ranked No. 1 for its NEO Network and Zeigo platforms. These acquisitions have enabled Schneider Electric to simplify the buying process by connecting customers with trusted experts, and offering exclusive market intelligence to accelerate decision making.
Chamayou tells us that there is “no trade-off”, and sustainability is not just good for the planet, it’s now become a central of focus for organisations both in the industry and outside of it. Many businesses, for example, are becoming more climate-conscious, and as such, making significant investments in Greentech to futureproof and safeguard their operations.
In the data centre sector specifically, sustainability has been driven by enduser requirements, pushing operators to measure and prove their environmental impact in a multitude of ways. “One way in which the company is helping here is through its industry-first sustainability framework”, says Chamayou, “helping operators to measure their impact through five key areas – energy, greenhouse gas emissions (GHG), water, waste, land and biodiversity.”
For Schneider, these are vital, as they give data centre organisations fixed and quantifiable metrics for them to measure their progress towards improved sustainability standards.
“Ultimately, creating sustainable change comes down to setting a bold and actionable strategy,” continues Chamayou, “but no two strategies are entirely alike. Each customer will define its ambition in terms of climate impact, and we take a data-driven approach to help them drive change. To do that, we use our global platform with suites of different software, called EcoStruxure™.”
One example is EcoStruxure’s Resource Advisor, which enables customers to unlock greater optimisation, while giving them access to the analytics and reporting tools that are critical to the first phase of improving sustainability. For data centres in particular, this level of transparency and measurability is invaluable.
Interestingly Schneider Electric’s efforts within the space coincide with the publication of several of its recent research papers. One example is ‘Sustainability at the Edge’, exploring the gap between enterprise plans and edge sustainability programs. One of the report’s key findings was the revelation of a ‘perception-versus-reality dilemma’ across much of the industry.
According to the report, “the maturity evaluations of nearly half of respondents (48%) did not match a previous answer,” as many enterprise organisations believe their sustainability programmes are more advanced than they are, in-reality. What’s more, the paper found that 73% of organisations surveyed ranked sustainability as their second-most important business priority. Critically, only 33% say they have created a strategic sustainability plan.
Chamayou tells us that having clear, definable metrics that data centres can use to shape their sustainability strategies will be an immense aid. Through its framework, technologies and expertise, Schneider Electric is helping the industry to create datadriven strategies, where success and progress are measurable.
coincidence, because Gregor (CEO) and his brother were running the first hosting company in the Netherlands.
“They felt really mistreated on pricing, flexibility and customisation. So they decided, typically entrepreneurially, to just build a data centre themselves. They had no clue what it was, but they did that, improved their designs over the years and, actually, they succeeded in doing so.”
From there, Gregor and his brother spent a lot of time optimising their technology and innovating in the data centre space.
“They achieved this not just by buying everything that was on catalogue, but by actually thinking for themselves what they needed and reinventing smarter and better
“We have totally forgotten to understand that we have to actually adapt our language to the language of the public and give something back to them”
EDGAR VAN ESSEN MANAGING DIRECTOR, SWITCH DATACENTERS
strategies, and getting the public on-board
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solutions. In the end, this led to very efficient solutions that we developed ourselves and in-depth knowledge on cooling systems, modular design, construction and energy efficiency.
“Today, Switch still has a natural focus on independent development. We have a lot of engineers that have a thorough background in industrial design, meaning we have all the knowledge in-house that we need.”
30MW Switch Datacenters currently operates around 30MW of IT data centre capacity
“At this point in time, we’re one of the best at finding and developing new plots – and we do this in a totally different way to a lot of our competitors. The reason we are good at this is because we focus on Amsterdam, and we know the Amsterdam market inside-out. We know the language, we know the politics, we know how to get the power, and we know the right areas for new locations.”
And now, after almost two decades spent establishing its presence in the Dutch market, Switch’s next goal is to utilise its learnings, grow even bigger in Amsterdam and perhaps strategically expand across the continent.
“So we decided, ‘Let's first build a strong base in Amsterdam and, once we have that base and we have those customers on board, we will replicate that model in other countries’.”
Switch Datacenters was founded in 1998 and is one of the most sustainable data center operators and developers in Amsterdam. Today it owns three data centers in the Netherlands, and provides premium hosting, colocation and connectivity services for cloud, retail, and government organizations.
Sustainability is embedded within Switch Datacenters’ DNA and it believes that data centers can be reliable, affordable, innovative, and sustainable, all at the same time. Its locations in Amsterdam also places it within a global trade hub, while its position within the FLAP-D market makes it one of the world’s most competitive regions for data centers and cloud providers. Sustainability and innovation have, therefore, become key differentiators for Switch Datacenters, and are vital to its leadership position.
For more than a decade Switch Datacenters and Schneider Electric have established a long-term, strategic partnership to build an efficient, adaptive, and resilient data center platform. Across its portfolio, Switch Datacenters has worked with Schneider Electric to design and build its data centers, and today it uses turnkey solutions from Schneider Electric's EcoStruxure™ for Data Centers architecture to deliver marketleading services.
Switch Datacenters designed its facilities primarily to minimalize the impact of CO2 emissions on the environment and it was the first data center operator in Europe to reduce its Power Usage Effectiveness (PUE) to 1.1 by using revolutionary cooling concepts and innovative liquid cooling solutions.
From a power and resilience perspective, Switch Datacenters uses Schneider Electric Galaxy™ VX UPS with LithiumIon, which offers up to 99% energy efficiency using Schneider Electric’s patented eConversion technology, and critical powertrain solutions including its Busbar and Medium Voltage (MV) panel technologies.
The collaboration between Switch Datacenters and Schneider Electric has resulted in an initial 30% initial cost savings and 25% greater energy efficiency, enabling Switch Datacenters to meet today’s demands for industry-leading uptime and sustainability, and provision for a sustainable future.
According to Van Essen, the Amsterdam market is a particularly difficult one for data centres.
“The main challenges in the Amsterdam market are mainly about sustainability and getting power and permits. There's a lot of political pressure in this regard, and I think it all comes back to the public not understanding what data centres are about,” Van Essen explains.
Continuing in this vein, he asserts that one of the industry’s key flaws lies in the fact that its leaders and innovators are talking exclusively in technical language. This mode of communication is actually creating a big gap, because politicians aren’t engineers, and the general public are unable to follow these explanations. As a result, those outside the
EDGAR VAN ESSEN MANAGING DIRECTOR, SWITCH DATACENTERS
“ This optimisation game – data centre 1.0, as I call it – was very technologyoriented and not at all society-aware. That is actually what caused a lot of frustration in Amsterdam with the policymakers and the public”
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industry are becoming increasingly alienated from – and therefore mistrusting of – it.
“We have totally forgotten that we have to actually adapt our language to the language of the public and, when using scarce resources like land, power etc, give something back to the public,” Van Essen explains. “I also think a lot went wrong there, specifically, after a lot of foreign capital came to Amsterdam and adopted a one-size-fits-all push out of their US headquarters.”
For many global enterprises, Van Essen says a ‘copy-paste’ approach across all their new locations is common. However, this can be a serious hindrance to efficiency, and be highly detrimental to a brand reputation and a reason for slow innovation.
“This optimisation game – data centre 1.0, as I call it – was very technologyoriented and not at all society-aware.
That is actually what caused a lot of frustration in Amsterdam with both policymakers and the public, and it is now also becoming a broader European topic.”
“Amsterdam was one of the first cities that started to block the growth of data centres because, actually, they were consuming too much space and power, which were meant for other things. In the end, the industry was very much the root cause of creating this block, and you see the same happening now in Frankfurt, and even in London and Dublin.”
Unexpectedly, Van Essen says that because Amsterdam has always been leading this trend towards high sustainability demands, that has proven to be a major advantage of developing solutions there.
“Once you have a working solution in Amsterdam, the chance that you can copypaste it into Frankfurt, Dublin, and the others is pretty high. If you start the other way around – develop something in London and then try to get into Amsterdam – the likelihood that you will fail is pretty big,” Van Essen asserts.
“Amsterdam was one of the first cities that started to block the growth of data centres because, actually, they were consuming too much space and power”
EDGAR VAN ESSEN MANAGING DIRECTOR, SWITCH DATACENTERS
One of the biggest challenges for MTDC’s and their Cloud Scale tenants is that they must think about the infrastructure requirements in terms of workloads rather than in space and power.
To meet future scalability and bandwidth demands, Cloud service providers must have the ability to rapidly deploy any type of workload at any required network speed, at any time, and at any location.
As a result, we see Cloud Type Data Centers rapidly evolving, as data speeds, power usage per rack, and infrastructure complexity increase.
This requires smarter than ever Data Center designs. From smart power and cooling techniques and designs to smart and future ready high speed fiber infrastructure designs, from the entrance room in the grey space to and in-between the equipment and storage racks in the white space.
The objectives of a fiber infrastructure design are comparable to those for designing a highway. To meet current and future traffic demands it needs to be safe, efficient and allows for fast movement of traffic. Next to that overall cost, maintenance, sustainability, and planning for anticipated future traffic must be considered.
In an ideal world the MTDC’s and their Cloud Scale tenants would like to have a fiber infrastructure that can easily be migrated to higher speeds in the most sustainable way and at lowest CAPEX and OPEX thinkable. No matter if you’re on a 100G, 2 fiber backbone today and want to migrate to a 400G or 800G 8 or 16 fiber tomorrow or if you already think about 1.6TB backbone, the solution is already there.
Interested in hearing more about a solution that has ultra-low loss connectivity, is highly modular, has minimum weight, allows for one person install, is sustainable and drives cost and efficiency let us know.
Contact
Bas Mondria Sales Manager EMEA bas.mondria@commscope.com Dick Philips Sr. Manager Global Cloud Accounts EMEA dick.philips@commscope.com“So, it's all about understanding what is the best spot to start developing a new data centre formula. And we are 100% convinced that Amsterdam is the perfect ground for that. Not only due to the size of the market, but also the political environment we are in.”
Datacenters has more than 120MW of data centre capacity in development in Amsterdam
Communicating sustainability –how to get the public on-board So, the twofold challenge becomes implementing future-proof sustainable solutions, while also communicating those efforts to clients and the public. As Van Essen states, preserving the industry requires nothing short of a new reputation.
“What we really now need to see happening, very quickly, is for the hyperscalers to start adapting their operational data centre technology models to actually become much more green by nature,” he urges.
“If they still build new, huge land-consuming data centres designed on air cooling, the situation will never change. So we will really call on the hyperscalers and the forwardlooking companies to start implementing alternative cooling technologies and start looking at site redevelopment, rather than builing new ones from scratch.”
Despite being a relatively small industry player, Switch is renowned for being a major presence on the sustainability stage and a key voice in these global discussions.
“We have been a very active member of all the forward-looking innovation committees in the global industry for many years, and try to contribute there as much as we can. We've been very active in the Open Compute Platform, for instance; we're also one of the founding members of the Sustainable Digital Infrastructure Alliance and a member of the Climate Neutral Data Centre Pact.”
To help drive innovation further in the sector, Switch even opened up one of its Amsterdam data centres as a test batch for new sustainable technologies.
“We said, ‘If you guys want to see how this works and try it out, come to us, and we will actually help you to develop your solutions’. Already, we have quite a number of forward-looking companies coming to us because they want to do something with liquid cooling, reusing heat or using refurbished equipment.”
“They naturally come to us now: we understand their way of thinking, and we actually facilitate their division models. And that's
“It's all about understanding what is the best spot to start developing a new data centre formula. And we are 100% convinced that Amsterdam is the perfect ground for that”
EDGAR VAN ESSEN MANAGING DIRECTOR, SWITCH DATACENTERS
totally different if you go to the big names – we take the opposite approach to them. We say, ‘Please come to us and, jointly, we will find the next level’.”
For instance, experimenting with reusing server heat is a key part of those activities. For Switch, reusing the heat generated by its servers is an essential part of both futureproofing tech design, and preparing its customers for new business models and sustainability legislation in the future.
Switch’s long-term ambition is that data centres will eventually become heating
plants for district heating, thereby helping cities, policy makers and utility providers to move away from the current fossil fuel heat plants much more quickly.
“Data centres will no longer be seen as enemies of the people, and will contribute to wider society in a much smarter way. And that's what we call data centre 2.0.”
It is through these market differentiators that Switch has been able to establish a unique, immensely strong relationship with its network of partners.
“Our partners see that we're the odd one out – the new kids on the block, in a certain way. They’re also seeing that we're growing quite substantially. So, now, we are really on a lot of innovation calls with really big suppliers,” Van Essen explains.
“They start to understand what we're doing, why we’re doing it, and see the value of our approach, that actually brings us into very strong strategic alliances. Despite the fact that we don’t yet have the volumes of the really large data centres, we still get the same level of board attention, because we bring much more to the table than just volume.”
In this way, Switch is adopting a multifaceted, intuitive approach to sustainability, bringing all the required elements together, while successfully showing the public that data centres can have a place in our greener future.
“It's all about understanding where the public opinion is heading to understand new things around the corner that will impact your business. It is absolutely not technology alone that defines our future. It's much more about understanding society and contributing to society – and that's where we differ from the rest.”
As businesses struggle to ensure that they have a diverse and inclusive workforce, the real lesson to remember is that having as much means you are running the right kind of business
WRITTEN BY: CAMERON SAUNDERS
The previous presidential administration saw to it that the US Supreme Court took a hard turn to the right, thereby making it poised to upend decades of social progression. The fight over women’s reproductive rights – which lit up newspaper headlines last spring – is one of the bi-products of this shift. An issue on the docket for this spring that’s already getting headlines is affirmative action.
The term ‘affirmative action’ was first used during the Kennedy Administration and, over the years, it became a beacon – first in America and later in other parts of the developed world – for those who would like to see a more equitable society. The idea is that you give an advantage in hiring (or school acceptance) to those either from an economically disadvantaged or who come from marginalised racial or religious backgrounds that, historically, have experienced discrimination. If you set quotas of inclusion, the theory goes, eventually, the disadvantaged groups will catch up and we will be living in a society of parity.
Objectors to this method say that it gives an undue advantage to minorities and runs the risk of being superficial, rewarding people for their background circumstances and not the actual substance of their talent. This is the objection currently working its way through the Supreme Court: both Harvard and the University of North Carolina are being sued by Students for Fair Admissions, an anti-affirmative action organisation. The suit claims that, by preferring Black, Hispanic and Native American students, the universities were discriminating against white and Asian students. With the right wing in control of the court, the decision is expected to go against affirmative action protocol.
This, though, is the world of education. How about the real world? Federal employers in the United States must abide by affirmative action laws, but in the private sector, hiring policies are left to the discretion of the employer, raising the question: how does one maintain a diverse workplace?
Lisa Maynard-Atem is the Marketing and Inclusion Director at Acacia Training, an education provider out of the United Kingdom. In her work there, she is tasked with ensuring that the workplace is diverse and inclusive. She is also on the Board of
“ I DO NOT BELIEVE THAT ANY INDIVIDUAL OR ORGANISATION SHOULD RELY ON GOVERNMENT, LAWMAKERS, OR POLICIES WHEN IT COMES TO STANDARDS RELATING TO DIVERSITY AND INCLUSION”
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Directors of the Black United Representation Network, an organisation that seeks to empower the Black community.
In Marnard-Atem’s humble opinion, government oversight is not the answer –saying as much to Sustainability Magazine: “Is this something the company itself has to implement? I do not believe that any individual or organisation should rely on government, lawmakers, or policies when it comes to standards relating to diversity and inclusion. We all have a responsibility to hold ourselves, our communities, and the companies we represent to the highest standards in this area.”
It falls on the companies, she maintains: “Companies should ensure that they have clear guidelines and policies that every single
person working for them adheres to. They should be working hard to weave inclusivity into their culture with the goal of it becoming the norm rather than the exception.”
How can companies be trusted to do this? The aforementioned Black United Representation Network provides an answer: this group and others like it, which focus on the economic and social empowerment of the Black community, “are perfectly placed and equipped to help organisations embed the necessary measures around diversity and inclusion, particularly at a leadership level”, going on to state that “the top tables are where decisions are made that will impact the wider community of the organisation, so it is imperative that the powers that be are fully on board”.
“ WHAT WE’RE TALKING ABOUT IS BRINGING THE BEST TALENT INTO AN INDUSTRY ”
WASEEM ALI CEO, ROCKBORNE
One must not approach this process as though they were just ticking a box, though. Some would argue that a healthily diverse workforce is the sign of a good, well-managed company.
Rockborne is a data consultancy based in London. Its CEO, Waseem Ali, told me that, currently, “despite best intentions, approaches to diversity and inclusion too often take the form of benchmarks to hit simply so they can be displayed on a website”.
“Companies need to turn this on its head and instead focus on attracting people of a diverse background – whether that’s gender, ethnicity or schooling – because of the value they will add. What we’re talking about is bringing the best talent into an industry.”
A diversity in talent and backgrounds leads to a diversity of thought, something that any company can use. Ali notes: “It is common knowledge that diverse workforces are the most successful; any industry is made richer by diversity of thought. Without
including varied perspectives in your senior teams, as an example, you’ll likely be making business decisions that do not consider the views of certain groups of individuals – which is ultimately bad for business.”
Marnard-Atem at Acacia agrees: “There are so many benefits – diversity of thought, ideas, and experiences as a means of inclusive decision making, which leads to a range of positive outcomes for the wider workforce. There is also the inspirational aspect in terms of visibility and
representation. When you see someone that looks like you occupying a particular space, it motivates you and feeds the belief that you too can occupy that space one day.”
One of the ironclad laws of capitalism is to act in your own self-interest, seeking an improved bottom line above all. Having a varied workforce provides a path to that better performance and, therefore, it is in the interest of all businesses to ensure that they set – and meet – high standards of inclusivity and diversity.
“
Since the mid-20th century, automotive has evolved around the chief component powering mobility—the engine. As the internal combustion engine (ICE) came to fruition, more and more car manufacturers centred their efforts around it to improve performance, increase fuel efficiency, and even to refine their engine sounds, appealing to the fast-driving, thrillseeking car buyers out there.
When it comes to car design, the general trend—particularly among high-end, supercar builders—is the elongated front end to house ever-growing engines, alongside other petrol and diesel components.
In an electrified world, this sort of frontelongated chassis won’t be necessary; EV infrastructure presents a unique opportunity to alter the way cars are designed and built.
Enter AEHRA, which took 2022 by storm when it introduced an SUV to the world that caters for many of the issues we see today in the automotive sector: emissions, unsustainable products, wasteful manufacturing processes, and globalised supply chains, the latter including ties to other organisations’ emissions reduction efforts.
‘A bold new image that challenges the principles of car design’ is probably the best way to describe the AEHRA SUV in a nutshell. The car is both a display of automotive prestige and a model of the future.
Currently, AEHRA rates the car as achieving a near-800km range once operational, which is supported by its incredibly low drag coefficient of 0.21.
The car is designed with a monocoque body, requiring a “highly outrageous” approach to create what Felippo Perini describes as its ‘elegant design’.
Not only does the car defy what is classed as ‘normal’, but it also evolves its supercar heritage by taking the sharp, rigid stance of a high-end supercar and turning it into a singular flowing line that runs the length of its body.
“With the SUV, we have created a vehicle that goes far beyond the conventional standards set by the automotive industry for an SUV, in addition to setting new benchmarks for style and comfort” -
Filippo Perini, Chief Design Officer at AEHRA.Co-Founded by the company’s CEO, Hazim Nada, AEHRA enters into unchartered territory. The company leverages the electrical revolution to produce an ultra-premium EV with sustainable, localised credentials. The SUV was unveiled in the company’s home city of Milan, Italy, where the team astonished the crowd with the sheer stance and scale of the vehicle, which portrays the essence of Italian automotive innovation in a new generation of mobility.
Year founded 16+
Number of employees
difficult
to a
production”
HAZIM NADA CO-FOUNDER & CEO, AEHRA
“It will be
to go back
traditional design once this is in
There are many lessons to be learned from AEHRA’s story around the importance of passion within a team, commitment to sustainability, and innovative steps to be made in manufacturing sustainably— in particular, ensuring cars are infinitely recyclable—and doing so to meet the demands of high-end customers.
How it all began: AEHRA’s Italian automotive heritage Nada himself is a well-educated man who chose to leave his previous role as an oil merchant and instead flip his career on its head. Despite this, it is the vision for AEHRA that caught the attention of some leading members of the Italian car community.
“The first challenge was convincing the engineering partners: many engineering firms have large-scale customers, so for them to entertain a small reality was the beginning. I then had to attract the right type of talent, getting people like Filippo Perini and all the other designers that we now have on board,” says Nada.
Having met with Perini trackside to discuss the idea, it’s safe to say that he took some initial convincing to consider
“The challenge was convincing the engineering partners; many engineering firms have largescale customers”
HAZIM NADA CO-FOUNDER & CEO, AEHRA
the idea that Nada was proposing—a car with a shorter ‘nose’ that defies the conventional trend in the automotive sector. While the idea was still in its infancy at the time, Perini was the first critical stakeholder to challenge the proposal in order to encourage a more provocative approach to the aesthetics of the EV. This resulted in AEHRA not only redefining the car, but pioneering design.
Describing this stage of building the team means understanding the idea that Nada presented to his now colleague.
“It’s the first product that we’ve unveiled, but what I can say is that we’re committed to bringing out vehicles that are developed around the electric powertrain. If we go back in time to the 1920s and 30s,
we’ll see that the automotive industry was experimenting with a lot of shapes, aerodynamics and whatnot.
“All these trials have given way to what we see today with three-body architecture, because it’s the best architecture when it comes to accommodating the thermal and volumetric needs of internal combustion engines.
“This isn’t the same for electric vehicles. We see no reason to continue to utilise the shapes of the 70s, 80s, and 90s.”
AEHRA is, by definition, changing the game by leveraging more sustainable design principles that also accommodate EV architecture in the most intuitive way— giving way to the long nose of an ICE car and shortening the front end of its vehicles.
“The key element that we’ve done away with is the long hood—we’ve shortened the overhangs and developed this monobody architecture. This is the key element; AEHRA is redefining the shape of electric vehicles,” says Nada.
“By doing so, we’ve given a lot of character to the AEHRA SUV that you wouldn’t otherwise see in an electric vehicle. We’re also expanding the cabin space within the same volume of car, changing the customer experience.”
The three-metre-long stance of the SUV is one of its trademark attributes and, when combined with a significantly shorter front end, provides a substantial increase in space inside the car—enough space to comfortably fit four NBA players.
The luxury car with a sustainable conscience
Procurement is an important focal point of AEHRA’s efforts, as the company looks to reduce the number of bespoke components in the car— and even the car body itself.
The sustainable breakthrough can be seen in the monobody formation of the vehicle, which is made using sheet mould carbon (a carbon fibre process that is essential to the company’s production plans). From a material perspective, this is one of the highlights of the car. Using composite material means that the AEHRA SUV is not only made of recycled carbon fibre materials, but is also recyclable at the end of life.
“When it comes to the materials that we’re using, we will be the very first to conduct mass production of a vehicle of this size, these dimensions, utilising sheet mould carbon,” says Nada.
“The resulting structure that is produced within our process will be reutilised for at least five cycles after end of its life, resulting in weight savings by using such materials, which then translates into a direct energy saving that’s also enhancing sustainability.”
When it comes to sourcing the battery and other electrical components of the SUV, Nada assures us that negotiations are taking place to encourage a sustainable supply of equipment for the car. Having put such a strong emphasis on procurement allows the company to localise most of its supplier network and encourage production efforts closer to home.
“So far, we’re able to procure pretty much all of the components within the continent. Using composite materials means we have to stay as close as possible to Italy, because it’s the only country that contains the know-how and production capacity for such materials,” Nada explains.
The team taking on these challenges is one of Italian heritage. Nada himself reached out to some of the key innovators in the automotive world to tap into their expertise thus far. As of now, the production segment of the business will be led by its new Chief Engineering Officer. Plucked from the very heart of the automotive industry, Franco Cimatti is the latest to join the team in hopes that he will encourage the same disruptive ethos of its Founder.
“With over three decades in charge of engineering at Ferrari, and also about five years at Lotus, he’s a particularly important person, because he comes from the core of the vehicle dynamics experience—the
“We will ramp up the demonstration of the two vehicles together, around the world”
HAZIM NADA CO-FOUNDER & CEO, AEHRA
top end of the internal combustion engine experience,” says Nada.
“He has also been in charge of fully electric platform developments at key houses like that of Lotus, so he’s a very important Italian figure and is able to marry all the key elements that we require.”
Nada believes that Cimatti’s presence will not only enhance the company’s ability to produce the car, but also influence the right talent that share the AEHRA ethos—and bring with them the Italian touch.
Technology-driven experience equals luxury
The firm recognises the growing trend for digital capabilities. One of the key benefits of the monobody architecture adopted by AEHRA is its capacity for a revolutionary cockpit experience.
As infotainment is a critical part of any high-end vehicle, the team is focusing on how it can make the SUV more intuitive, as well as make full use of the electrified platform and extra space inside the car.
One of the main drivers of the humanmachine interface (HMI) design is consumers themselves. According to Nada, customers are less likely to want rear passenger screens due to nausea and discomfort—as well as the fact they probably already have one on their person.
The AEHRA will do the impossible and provide passengers a connected experience that allows the car to collaborate with other devices in the digital ecosystem.
“For the rear passengers, we are focusing on these types of experiences: personalised media solutions for each seat that can interact with such solutions. We’re not aiming to have screens in the back,” says Nada.
“The front row will be dominated by this particular screen solution, because it’s very unique and allows a level of productivity and entertainment that is impossible today.”
But the most important feature is the range— 800km per charge—and that will be supported by the battery solutions. The battery pack itself will be somewhere “between 115 to 120kWh”. Though Nada states that “it will be closer to 120 with the solution that we’re currently developing and make use of NCM prismatic cells”.
The AEHRA story is one of technological, engineering and sustainable triumph packed into an EV that will likely evolve as time goes on and trends become evermore digital.
Since the SUV made it into the media, the company has grown more determined than ever by the responses received across various platforms. The design
of the vehicle itself is its main selling point, both to potential customers and the industry itself—in terms of being a feasible, thriving concept, the company has been praised for its exceptional work on the production-ready product. The time is now for AEHRA to secure the heart and soul of the daring automobile.
AEHRA’s aim for the near future is to finalise its negotiations with partners and suppliers to get them on board for the ride—a ride that will soon be split between two vehicles when AEHRA kicks its Sedan prototype development into gear.
“In April, we will ramp up the demonstration of the two vehicles together around the world. As soon as the saloon version is unveiled, we will begin our tour to market both vehicles,” says Nada. “Within the next six months, we need to identify a location to potentially internalise the final assembly. These locations will need to be affordable and workable.”
“When you place our sedan or the SUV close to a traditional vehicle, both really stand out; they’re very different. I think it will be difficult to go back to a traditional design once this is in production.”
“We’ve
AEHRA
The Paris Agreement decided on science-based targets fighting climate change. Are they good for business or bad for business?
WRITTEN BY: CAMERON SAUNDERSAodopted in 2015 and signed a year later, the Paris Agreement is the most significant international climate treaty of its time. Among the multitudinous measures that the 194 signatories agreed to in the process of ratification were “science-based targets” (SBTi): that nations keep the rise in mean global temperature to 2°C above preindustrial levels, and preferably down to 1.5°C. Only then, the thinking goes, could the catastrophic effects of climate change possibly be averted.
While the verdict is still out regarding whether or not these promises will be kept (let alone be effective), will they reduce greenhouse gas emissions and future-proof the economy? Companies around the world have also adopted them and integrated these goals into their operations. Cognizant of science, they can be particularly forthright when articulating why they take the sciencebased targets to heart.
Take the words of Claire Atkins Morris, the Head of Corporate Responsibility for the French food services giant Sodexo: “They are necessary targets if we are to keep 1.5 degrees alive. The science informs us that anything above this will create catastrophic impacts.
“From day one, Sodexo has been focusing on tangible everyday gestures and actions through its services to have a positive economic, social and environmental impact over time. For us, growth and social
“Companies that take steps to reduce their environmental impact may also see benefits such as improved reputation, reduced energy costs, and increased employee engagement”
commitment go hand in hand. Our purpose is to create a better everyday for everyone to build a better life for all. Setting sciencebased targets ensures our net-zero strategy is aligned with climate science and on a pathway for limiting global warming to 1.5°C above pre-industrial levels.”
Adapting performance to sciencebased targets is not a static endeavour. As companies’ operations evolve, the amount of carbon emitted or not emitted fluctuates. Management must stay abreast of these changes and factor them into their overall sustainability programme. This process is known as rebaselining; that is, adjusting guidance data to match new sources of emissions.
Morris at Sodexo commented on the importance of following baselines:
“To meet our targets is not about mitigation but adaptation. Our total baseline GHG emissions
“They are necessary targets if we are to keep degrees alive”
CLAIRE ATKINS MORRIS, HEAD OF CORPORATE RESPONSIBILITY, SODEXO
TITLE: HEAD OF CORPORATE RESPONSIBILITY
COMPANY: SODEXO
With an educational history in environmental management, Claire Atkins Morris worked as a consultant and waste and environment manager before coming to Sodexo, where she has worked her way up to the role of head of corporate responsibility.
TITLE: CEO
COMPANY: BLADE RANGER
CEO of BladeRanger Oded Fruchtman has nearly two decades of executive management experience in the world of tech, with notable success in exporting Israeli products to the world.
TITLE: HEAD OF RESPONSIBLE
COMPANY: LOGICALIS
Based in Dublin, Charissa Jaganath brings to the field a wealth of experience in the fields of sustainability and corporate responsibility.
After receiving an MSc and an MBA, she has worked in Africa, Asia, Central America and Europe.
are currently 928,000
tCO2e – this is how much we need to reduce emissions to reach Net Zero. We have reduced this by one third since our 2017 baseline and are on track to meet our nearterm science based target.”
She then noted the importance of adapting to a changing status quo: “Re-baselining gives a more accurate picture of a company’s carbon footprint, and Sodexo urges other businesses to continuously review their baseline to make sure it’s accurate and relevant for comparing current activities against. We will continue to review our 2017 baseline as we understand and refine our data and methodologies; this feels
par for the course with science based targets.”
Of course, there is the argument – on the tips of tongues of all climate change naysayers – that integrating science-based targets into strategy will be a hindrance to success. It is a refrain often heard among those doubters who are hostile to the lessons of science.
Oded Fruchtman, the CEO of solar power company Bladeranger, has a riposte to this view: “Adopting science-based targets as set out in the Paris Climate Agreement may entail some short-term costs for companies, such as investing in new technologies or changing business practices. In the long-term, it is
likely that companies that are taking action to reduce greenhouse gas emissions will have an advantage over those that do not. This is because they will be better prepared to comply with future regulations and carbon pricing schemes, and they will also be able to tap into the growing market of low-carbon products and services. Additionally, companies that take steps to reduce their environmental impact may also see benefits such as improved reputation, reduced energy costs, and increased employee engagement.”
The pandemic was a double-edged sword in terms of science-based targets. On the one hand, economic activity across the world took a hit – something that reduced global emissions.
But, on the other hand, companies had to cut costs in order to adapt. Achieving sciencebased targets can be expensive, after all.
At British IT company Logicalis, this experience could be attested to. Said its Head of Responsible Business, Charissa Jaganath: “Sustainability took a back seat during the pandemic as executives shifted focus to innovation and moving their workforce online. Leaders prioritised economising strategically for secure and connected remote working, and many viewed sustainability as a ‘nice to have’ rather than a necessity.”
Ultimately though, maintaining the path of science-based targets and sustainability is simply smart business. As Jaganath maintains: “Environmental, social and governance goals have previously appeared as easy targets, but business leaders must be fully aware of the negative impact on brand reputation if sustainability initiatives are cut. A business’ environmental impact has become a crucial factor in the consumer’s purchasing decisions, with 85% of global consumers reportedly willing to pay more for sustainable alternatives. Never has it been more accessible for a customer to switch between companies and providers.”
“Sustainability took a back seat during the pandemic as executives shifted focus to innovation and moving their workforce online”
American Homes 4 Rent, also known as AMH, is one of the leading builders in the United States, which rents homes and builds homes to rent.
Founded in 2012 and headquartered in Las Vegas, Nevada, AMH takes employee satisfaction very seriously. The company has won the Great Place to Work® accreditation, has been recognised for its sustainability initiatives, and is rated as one of America's Most Responsible Companies 2022 by Newsweek and Statista, as well as a Top ESG Regional Performer by Sustainalytics.
Philip Irby is the Chief Technology Officer for AMH. His role is to lead the transformation of its technology stack into a modern, flexible, resident experiencefocused platform.
“I've taken lessons learned throughout my career and applied them in a transformational platform for an emerging industry, in which there's not really a modern tech stack available,” says Irby. “I have the opportunity to pioneer and build something that hasn't been built.”
Irby’s job is to improve the resident experience through technology, to make it seamless and non-intrusive.
“My job is to effectively allow our residents to focus on what really matters to them, not paying the rent or having to figure out the platform so that they can get a maintenance request in, or something like that. It needs to be seamless and just very intuitive for them.”
At AMH, digital transformation is in flight. The company is building a truly modern platform, with domain-driven design, true microservices and event-based architectures, from the ground up.
“What this gives us is the ability to build a modular, transformative system that allows us to adapt and change as we evolve as a company,” explains Irby. “The term ‘digital transformation’ can be overused, as it means different things to different people. But for us, digital transformation means transforming the way a company works and focusing on the company ten years from now, not just the problems that we have today.”
“I knew that AMH had an opportunity to build from the ground up, so I brought gravity9 over as well”
PHILIP IRBY CHIEF TECHNOLOGY OFFICER, AMERICAN HOMES 4 RENT
Irby sees this as a transformation of how AMH works, whether it's through efficiency, streamlining or automation.
“Digital transformation changes who we are and adapts who we're going to become.”
AMH was recently recognised as one of the top ESG regional performers by Sustainalytics, which was deeply satisfying for the team.
“Our technology has been intertwined with the sustainability function from its inception,” says Irby. “We feel that technology really drives sustainability. There's a lot that we can do on the technology front that will improve our posture in the ESG areas.”
TITLE: CHIEF TECHNOLOGY OFFICER
LOCATION: LAS VEGAS
Philip Irby is the Chief Technology Officer at AMH. Philip spearheads the company’s IT division, guiding the program’s future platform development as well as supporting the company’s revenue-generating and corporate departments. Leading a team of IT personnel, Philip is responsible for the management of core systems, infrastructure, networking, collaborative environments, reporting, and custom platform development, all the while structuring the organisation to drive business results in the most efficient way possible. Irby has a 26-year record of success designing, building, and completing innovative business and technology solutions with an acute focus on user experience. Prior to joining the executive team at AMH, Philip was the Chief Information Officer at The Cosmopolitan of Las Vegas, Vice President of Global Applications at Arthur J. Gallagher and Co, and Chief Information Officer at Pacesetter Energy, and has held integral roles in companies such as Pragmatx, Digital Pilot, and Multimedia Learning, Inc.
We combine deep engineering knowledge with customer strategy and design expertise to achieve great results in short timescales.
At gravity9, a combination of art and science brings a product together, taking clients like AMH closer towards their digital journey.
Noel Ady started gravity9 five years ago, with a view to bring together amazing people to create amazing things. “My background is as a software engineer, a solution architect and enterprise architect. I’ve been lucky to work as a consultant in many different cultures. “We have the full capability to put together a product” says Ady. “At gravity9, we have the ability to understand why a product should exist”.
gravity9.com
gravity9 will often work with large organisations or enterprises that want to build a number of products to support their digital journey.
“The individuals involved are not just skilled; the key is imagination and hard work. Those things combined help us generate that momentum with our clients.”
“There’s a combination of art and science that brings a product together.”
ESG is a key part of AMH’s strategy and technology is intrinsically intertwined with it.
“We are already in tune with all of the systems used to monitor that, and we're remediating issues,” says Irby. “We're at the top of our capability on the cybersecurity front. We're also working extensively to understand our energy usage through AI and analytics, gathering information from our communities or our portfolio homes.”
AMH has also built relationships with leading companies like Elevate, which help AMH to get better visibility into its energy consumption.
The way Irby sees it, technology drives sustainability, but AMH is using ESG to transform its technology. The company has established a sustainability group and its technology evolves in accordance with that.
“It's about AI and what we can leverage in terms of our energy usage, especially in HVAC (heating, ventilation, and air conditioning)”
PHILIP IRBY CHIEF TECHNOLOGY OFFICER, AMERICAN HOMES 4 RENT
“It's about AI and what we can leverage in terms of our energy usage, especially in HVAC (heating, ventilation, and air conditioning).”
Take this situation: there's a time when there's no one in the HMR home - somebody moves out and then somebody moves in, how are HMR going to make sure that the house is not overusing energy? Currently, somebody comes in during a showing and turns the thermostat down, then it might stay that way until somebody else comes in to change it. This is where automation, smart home technology and IoT come in.
75% of the traffic that AMH receives is from mobile devices, as users are out looking at houses in person
different initiatives involving water usage and energy usage. Then, with cybersecurity being a part of ESG, we're at the forefront of that, too. In this industry, we won't compare ourselves to other businesses, but we're doing our best to meet the requirements of the cybersecurity components or questions, and initiatives within ESG.”
“We're working on a technology right now that will give us the ability to modify the interior HVAC thermostat during the turn,” explains Irby. “We've got a number of
75% of the traffic that AMH receives is from mobile devices, because prospective residents are looking at houses in person, away from their computers. AMH has an online platform that will allow renters to log on and take control of their home search.
“The platform is completely responsive,” explains Irby. “Everything we build is mobile-first, and it starts from the shopping
experience, with people trying to locate a home or take a tour of one of our homes and then go through to leasing. All of this can be done from a mobile device in a simple way.”
Prospective buyers go through leasing and underwriting. They can interact with AMH property management and maintenance people as a resident.
“The purpose-built communities have amenity centres with pools, gyms and community hubs. Now, we can grant them access to all of those facilities without requiring them to check in with a property manager or get a fob - they can just use their phone.”
Close to 90% of US households have some form of air conditioning. AMH uses AI to keep track of them.
“As an example, if we are monitoring the usage of HVAC and also the behaviour of that HVAC, we can develop an algorithm that tells us when this HVAC unit is about to failimagine the difference this will make to the resident experience.”
For a family that lives in a hotter climate, if their HVAC fails it could be three days before it is fixed. But, if AMH knows that the unit is exhibiting a pattern of behaviour to suggest it’s failing, AMH can contact the residents ahead of time and arrange a servicing of the HVAC before it fails.
“That's a proactive use of technology to improve the experience for residents, so that they don't experience three days of unbearable heat, wondering when someone is going to show up and fix it so they can get on with their lives. Instead, we're showing up ahead of time.”
At AMH, automation and streamlining can both improve the customer and employee experience.
Whether it's through automation and dynamic scheduling, or the different components that streamline and make AMH employees’ jobs easier, this comes through in their communication with residents.
“We make the job easier for our employees and happy employees make happy customers,” says Irby sincerely.
AMH goes through field services and dynamic scheduling, with their field technician going from one spot to the next. Even when new simple requests pop up, being able to service that resident dynamically changes the resident experience, and this also changes the employee's experience, because now it's a lot less about bureaucracy and ticking the box.
“It's all about improving the lives and experience of our customers,” says Irby.
“Digital transformation changes who we are and adapts who we're going to become”
PHILIP IRBY CHIEF TECHNOLOGY OFFICER, AMERICAN HOMES 4 RENT
gravity9 is an IT consulting company that unites art and science in building the consumer’s digital journey. Irby partnered with gravity9 seven years ago, when he worked at the Cosmopolitan in Las Vegas. gravity9 helped Irby transform the hotel’s identity and their rewards programme.
“I knew that they shared my vision for abstraction and domain-driven design and microservices,” says Irby. “I knew that AMH had an opportunity to build from the ground up, so I brought gravity9 over as well.”
Their shared vision, previous experience and longevity have made for a great partnership.
“The key to our partnership is, gravity9 has an exact understanding of our strategy and vision for the platform, and that comes through in the work that they do, and also in the work that my team does with them.
“I've worked with lots of vendors and there are people that will tell you what they want you to hear or what you want to hear - and people that will tell you the truth. Telling the truth in a partnership usually results in more respect and greater capability to work together. I think in the relationships that I've had that have been successful, that's one of the core foundations - being able to speak openly about differences or things that we need to be working towards.”
The next 12 months will be transformational at AMH. The company is adding a number of components to the platform, enhancing some that they already have and focusing on building the platform further. Irby is determined that that has got to be the focus.
“If you lose focus on trying to create that platform that is flexible, adaptable and capable of change, then you start to become a monolith. You move down the path towards brittle, unsustainable infrastructure and applications.”
Every 12 months holds that for AMH. Irby and his team will stay focused on the future and on flexibility.
“I have the opportunity to pioneer and build something that hasn't been built”
PHILIP IRBY CHIEF TECHNOLOGY OFFICER, AMERICAN HOMES 4 RENT
Indirect procurement is not some quibbling matter that can be overlooked. Consensus’ count has it at 30-70% of procurement’s overall spend. The challenges are laid bare then. As one insider, Daniel Usifoh, the Co-Founder of Axiom Sustainability Software, puts it: “Sustainability doesn’t stop at the four walls of your business – it extends to the entire supply chain – but managing and controlling third-party data has the capacity to get very complicated.”
What emerges, then, is a disjunct between companies keeping an eye on their own emissions – their own environmental performance – and these secondary affiliates that are, essentially, outside contracted players.
But if a company indeed cares about its sustainability performance, how does it ensure that its partners falling under the category of ‘indirect procurement’ are keeping up their end of green responsibility? Are they doing what they should? If they are, great. If they’re not, how does that affect the sustainability performance of the main player, the big company that professes to be doing right by Mother Earth?
“Sustainability doesn’t stop at the four walls of your business – it extends to the entire supply chain”
DANIEL USIFOH CO-FOUNDER, AXIOM SUSTAINABILITY SOFTWARE
TITLE: CO-FOUNDER
COMPANY: AXIOM SUSTAINABILITY SOFTWARE
As the Co-Founder of Axiom sustainability software and Gateway Procurement, Usifoh's mission is to help organisations and their supply chains to become more sustainable.
TITLE: MANAGING DIRECTOR, IMPACT INVESTMENT & BUSINESS GROWTH
COMPANY: PALLADIUM
As head of Palladium’s Impact Investment and Business Growth, Jose María is passionate about unlocking the power of capital to deliver long lasting solutions to socioeconomic challenges.
TITLE: FOUNDER & CEO
COMPANY: YARDLINK
Shah's mission for YardLink is making equipment rental simple, transparent and cost-effective.
We took a deeper dive to try to divine the elements of this dynamic that fall under the auspices of ‘indirect procurement’. It seems that there’s no cut-and-dry answer, but the Palladium Group – an international advisory and management consulting firm employing 2,500 people in 90 different countries – has a valued perspective on the matter.
The company is well-versed in maintaining standards of sustainability and can count itself as the fourth-largest private sector employer partner of the UK government’s Department for International Development. The group prides itself on making the world more interconnected by formulating strategies, developing partnerships, and implementing measures that have not just a social impact, but a financial one, too.
Jose Maria Ortiz is Palladium’s Head of Impact Investment. He admits the profound complexity of the topic and cites the standard of the ‘science-based targets’ (SBTi), codified in the UN’s Paris Agreement on climate change, which was signed in 2016: “It forces organisations to look at their value chain in its entirety, to compensate for Scope 3 [a condition of ancillary] impacts.
“It ensures organisations look at the entire value chain and rediscover the depth of their suppliers. The best way to do this is to ask direct providers to become SBTi signatories, too, and therefore ensure
sustainability is cascaded down through this scheme.”
But is this level of accountability attainable? Well, you see, that’s the rub.
Articulating his thoughts on the matter, Ortiz says: “In this case, major companies need to get involved directly to unpack the challenge and find solutions that restructure the value chain, tackling the challenges of sustainability from an environmental and social point of view.”
Although it all seems very clear cut there, he must concede that, “there aren’t standards like SBTi for social challenges –meaning that they not only have to use other
types of certifications that aren’t particularly sound in most cases, but that many companies must rely on them as the only means to manage their value chain”.
Going back to Daniel Usifoh at Axiom –and befitting an IT outlook – data can provide a path: “The main challenges of ensuring standards of sustainability through indirect procurement are all to do with data, sourcing, and supplier management processes. This includes having data on suppliers, such as who they are, where they are located, how much is spent with them, and how they source their inputs.”
“[SBTi] forces organisations to look at their value chain in its entirety”
JOSE MARIA ORTIZ HEAD OF IMPACT INVESTMENT, PALLADIUM
NEERAL SHAH FOUNDER, YARDLINK
“Most are simply unaware that taking a sustainable approach to procurement could not only improve efficiencies, but also actually save them money”
Improving supplier data visibility takes on a number of appearances: centralising the data “to gain insights into indirect spend profile and understand opportunities… [to] mitigate sustainability risks”. Further, a business can implement sustainable sourcing processes across its sources, cultivate supplier relationship management so that the focus evolves “to developing effective supplier relationships designed to facilitate innovation and improving sustainability performance”.
Still, industries are varied. What works for some sectors won’t fly with others. Construction – the source, by some estimates, of 40% of carbon emissions –is illustrative.
Neeral Shah founded and runs YardLink, the London-based mavens of construction procurement. He is blunt: “The problem is that, today, the majority of construction firms are operating under great pressure, caused by extremely tight deadlines, very slim profit margins, and a turbulent macroeconomic climate. Many may fear that introducing sustainable practices into their procurement will affect their ability to meet deadlines, which could impact their reputation and their business.
“But most are simply unaware that taking a sustainable approach to procurement could not only improve efficiencies, but also actually save them money.”
Technology, even in this physically taxing industry, poses a resolution. Shah notes: “New technologies, however, could help them monitor what products or services are available close by, enabling firms to effectively procure using a hyperlocalised supply chain. Not only does this reduce the CO2 emissions caused by equipment being transported nationally (and sometimes internationally), but also tackles overspending on logistics as well.”
Sustainability Magazine explores the ‘Top 10 sustainability consultants’ globally
WRITTEN BY: CAMERON SAUNDERSConsultants are in many ways the engines of sustainable transformation for the economy at large. When a company wants to reduce its carbon footprint, it will look to a consultancy to point the way. It stands to reason, then, that we take a deeper look at the companies, leaders, and sustainability programmes that are driving the world of consultants today.
TITLE: HEAD OF CONSULTING
COMPANY: KPMG
HQ: AMSTELVEEN, NETHERLANDS
KPMG consulting business in the UK combines a focus on strategy, risk, and management consulting. Under this banner, David Rowlands excels, transforming FTSE 100-listed companies. In this capacity, he has specialised especially in FMCG, the utilities industry, central and local governments, and the public sector. He has also helped clean up the operations of KPMG somewhat, seeing that they have cloud-enabled operating models.
TITLE: CEO
COMPANY: CAPGEMINI
HQ: PARIS, FRANCE
Capgemini is a leading software consultancy that’s taking the lead on sustainability with a number of measures. The leadership of Aiman Ezzat has a good deal to do with this. In 2021, he won the accolade of the ‘Best European CEO’ in the category of technology and software. He has held a range of positions at Capgemini prior to assuming the lead, with COO and CFO among these.
TITLE: GROUP CHIEF EXECUTIVE –STRATEGY & CONSULTING
COMPANY: ACCENTURE
HQ: DUBLIN, IRELAND
Leading Accenture’s $15bn strategy and consulting service, Jack Azagury brings to the job deep wells of experience. He has been at the company for twoand-a-half decades, works on enterprise functions, innovation and corporate strategy practices, and is a member of the group’s Global Management Committee. Altogether, he oversees a team of more than 47,000 people. Additionally, he has worked in the UK, France, Japan, and the US.
TITLE: GLOBAL CEO
COMPANY: DELOITTE CONSULTING
HQ: LONDON, ENGLAND
Joe Ucuzoglu helps the single largest professional services company in the world, with 415,000 employees and $60bn. He has taken a broad range of issues to heart, most of all expanding a culture of inclusivity at the company and ensuring that it adapts properly to the rapid pace of technological change that society is currently undergoing.
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TITLE: GLOBAL MANAGING PARTNER
COMPANY: MCKINSEY & CO
HQ: NEW YORK, NEW YORK
Bob Sternfels sees his goal as ensuring that McKinsey & Company maintains its status as one of the top destinations for businesses looking to see substantial growth while attracting, developing, and retaining a high calibre of people in an inclusive culture. And it’s not solely work with McKinsey that ignites his passions: he is a founding member of the African Leadership Group Advisory Board and also works with the US China Business Council, the New York City Jobs Council, and FCLT Global.
TITLE: WORLDWIDE MANAGING PARTNER
COMPANY: BAIN & COMPANY
HQ: BOSTON, MASSACHUSETTS
Manny Maceda’s long career at Bain & Company, which began in 1988, has seen him work his way up the ladder to Worldwide Managing Partner, CEO, and Chairman of the Board by 2018. Among his achievements during that time is leading the company’s Full Potential Transformation Group, Performance Improvement practice, and its Reengineering practice. He has also overseen the improvement of the firm’s digital capabilities.
TITLE: UK HEAD OF CONSULTING
COMPANY: PWC
HQ: LONDON, UNITED KINGDOM
Three decades in consulting will lead to a range of accomplishments; Paul Terrington CBE is a case in point. Since becoming a PwC partner in 2003, he has overseen transformative operations in both the public sector and with large-scale private sector companies. Among his greatest achievements has been the establishment and growth of the Belfast office, which, with 3,000 team members, is now the firm’s largest office outside of London.
TITLE: MANAGING PARTNER AND CHAIRMAN
COMPANY: KEARNEY
HQ: CHICAGO, ILLINOIS
With a sterling record as an advisor to both boards and CEOs, Alex Liu is Kearney’s ninth managing partner and serves as its Chief Diversity Officer. His accolades are considerable. Since rejoining the company in 2001, he has been recognised as one of the Top 25 Consultants in the World by Consulting, an industry magazine. In addition, he has been a speaker and a co-chair at World Economic Forum events such as the Annual Meeting at Davos and the WEF on Africa summit.
TITLE: GLOBAL DEPUTY VICE CHAIR
- EY SUSTAINABILITY
COMPANY: ERNST & YOUNG (EY)
HQ: LONDON, UK
Since receiving an accounting degree from the University of Alabama, Amy Brachio has dedicated her career of two-anda-half decades to advising global companies to be more agile and risk aware. Her remit at EY is to help businesses turn sustainability into something profitable, thereby accelerating the transition to lower carbon emissions.
Brachio is especially passionate about championing diversity and inclusion. Social equality is, she feels, essential to sound business practices. With this in mind, Brachio sees to it that diverse, skilled talent is developed for the long-term health of the major consultancy.
TITLE: GLOBAL LEADER CLIMATE AND SUSTAINABILITY
COMPANY: BOSTON CONSULTING GROUP (BCG)
HQ: BOSTON, MASSACHUSETTS
Boston Consulting Group (BCG) Global Climate & Sustainability leader Hubertus Meinecke has been on the firm’s leadership team for nearly a decade and a half, since 2008. In that time he has been on the Operating Committee, on the BCG Henderson Institute’s Board of Directors, and has represented the company at the World Economic Forum.
He has been helping to push the company’s green capacity – seeing that clients adopt a proper sustainable agenda – in such regions as Western Europe, South America, and Africa. Furthermore, he has spent time in offices around the world, including in Boston, London, Johannesburg, and now Hamburg.