Sustainability May 2022 by Energy Digital

May 2022 | sustainabilitymag.com

Diversity & Inclusion:

Are workingfrom-home claims fact or fiction?

Sustainable Brands

VISA EUROPE’S ESG SURGES FORWARD IN PROCUREMENT AND SUPPLY CHAIN FEATURING:

SAP

The Standard

Asahi Beverages

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The Sustainability Team EDITOR-IN-CHIEF

BLAISE HOPE

DEPUTY EDITORS

TOM SWALLOW EDITORIAL DIRECTOR

SCOTT BIRCH

PRODUCTION DIRECTORS

GEORGIA ALLEN DANIELA KIANICKOVÁ PRODUCTION MANAGERS

PHILLINE VICENTE JANE ARNETA ELLA CHADNEY

MANAGING EDITOR

BLAISE HOPE CREATIVE TEAM

OSCAR HATHAWAY SOPHIE-ANN PINNELL HECTOR PENROSE SAM HUBBARD MIMI GUNN JUSTIN SMITH REBEKAH BIRLESON JORDAN WOOD CALLUM HOOD VIDEO PRODUCTION MANAGERS

KIERAN WAITE SAM KEMP

DIGITAL VIDEO PRODUCERS

EVELYN HUANG MARTA EUGENIO ERNEST DE NEVE THOMAS EASTERFORD DREW HARDMAN MOTION DESIGNER

TYLER LIVINGSTONE MARKETING MANAGER

GRETA ANDREJEVAITE PROJECT DIRECTORS

BEN WIGGER ASHLEY KIRBY

MEDIA SALES DIRECTORS

LEWIS HAMMOND MANAGING DIRECTOR

LEWIS VAUGHAN

EXECUTIVE ASSITANT

JORDAN HUBBARD CHIEF OPERATIONS OFFICER

STACY NORMAN CEO

GLEN WHITE

FOREWORD

The sustainable supply chain is in our hands and minds “The key to unlocking a sustainable global supply chain is in our hands, our minds, and our networks. We must choose to turn it”

SUSTAINABILITY MAGAZINE IS PUBLISHED BY

We ended April lending our efforts to Procurement and Supply Chain LIVE, where Risk and Resilience were the keywords and, as expected, sustainability emerged as the linking theme. Just as at Tobacco Dock in London, the efforts to drive ESG across vast procurement and supply chain empires are what we focus on in this issue, with a spotlight on Visa Europe's Alisa Bornstein and Rob Livingston. Then there is the part we all touch and see: The Last Mile, the part that comes to us in our homes, on our doorsteps, on our dinner tables. Most of all this issue is about global change, whether through Shell's digitalisation, or the role of data centres in regional development, through Master PowerTechnologies and Digital Parks Africa

blaise.hope@bizclikmedia.com sustainabilitymag.com

CONTENTS

Our Regular Upfront Section: 12 Big Picture 14 The Brief 16 Timeline: How did Ørsted become the largest renewable energy provider? 18 Trailblazer: Caroline Nègre 22 Five Minutes With: Neill Ricketts

48 ESG

Integrating ESG initiatives to maximise investment value

Visa Europe’s ESG on a roll in procurement and supply chain

Going the extra mile on sustainability

Visa

SAP

Are working-from-home sustainability claims fact or fiction?

Achieving financial wellbeing and peace of mind

Diversity

The Standard

100

Will carbon offsets support hotel climate change action?

Designing and building in parallel

Netzero

The Red Sea Development Company

118

Sourcing

The quest for sustainable solutions for last-mile delivery

128

Asahi Beverages Leader in sustainable beverage production

140 Xxxxx Top 10

Xxxx Xxxx Xxxx Xxxx Brands working hand-in-hand Xxxx sustainability Xxxx Xxxx with

152

Xxxxx atNorth

Xxxx Magnús Xxxx Kristinsson, Xxxx Xxxx CEO of atNorth Xxxx DCs, Xxxx on Investment Xxxx and Growth

23 - 24 JUNE 2022 STREAMED & IN PERSON TOBACCO DOCK, LONDON

SHAPING THE BUSINESS OF TECHNOLOGY 3,000+

Participants

Days

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60+

Speakers

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Watch our 2021 Showreel

Join us at TECH LIVE LONDON Showcase your values, products and services to your partners and customers at TECH LIVE LONDON 2022. Brought to you by BizClik Media Group TECH LIVE LONDON, the hybrid event held between 23rd-24th June is broadcast live to the world and incorporates four zone areas of Technology & AI LIVE, Cloud & 5G LIVE, Cyber LIVE plus March8 LIVE in to one event. With a comprehensive content programme featuring senior industry leaders and expert analysts, this is an opportunity to put yourself and your brand in front of key industry decision makers.

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BIG PICTURE

Image credit https://media.polestar.com/uk/en/media/photos/647036

May 2022

EV Fossil-fuel power is out; EV adoption is on the rise

A global ban due to be enforced on fuel-powered car production by 2030 has resulted in the exponential growth of the alternative vehicle market in recent years. The UK now has more than 395,000 all-electric cars on its roads, while plug-in hybrid models have exceeded 740,000. The Chinese electric vehicle (EV) market is also proving successful, topping 3.52 million EV sales from companies like Aiways, SAIC, FAW, Dongfeng, Chana, BAIC, GAC, Chery, BYD and Geely. In the US, alternative fuel cars account for around 10.5% of light vehicle sales.

THE BRIEF “We must adapt models to a low-carbon economy, implement measures throughout the value chain, and find circular solutions when searching for suppliers and allies” Elena Ruiz García

Director, Sustainable Business , NH Hotel Group 

BY THE NUMBERS

Of two study groups, what percentages of employees and business leaders believe D&I information is wellcommunicated in their organisations?

74%

Business Leaders

54% Employees

“Over the past two years of the pandemic, we've had the opportunity to take a closer look at the resilience of our supply chain” Rob Livingston CFO, Visa Europe 

“The cost of running an electric vehicle is sometimes up to 10 times cheaper than a combustion car” Miguel Valldecabres Polop CEO, EV Dynamics 

May 2022

Maker’s Mark commits to sustainability through B-Corp status The Distillery has received its B-Corporation certification, highlighting it as one of the most sustainable in the world while it continues to follow the global movement Find out more



A war on fossil-fuels? Renewable energy is the answer Beyond the inevitable climate change impacts, the world is seeing significant changes in energy availability — and consumers are taking the brunt of it. The price rises can be seen in shining lights at local fuel stations and on paper, as consumers receive higher energy bills nearing annual rates of £2,000 pa in the UK. It appears that, while COVID-19 cases rise again — although seemingly less detrimental to public health at its current stage — there are lasting effects from the height of the pandemic, which are only now coming to light. COVID-19 is just one global issue the energy industry has to contend with; a cold winter across Europe and Asia in 2021 severely depleted gas reserves, and the barriers in place — resulting from the war in Ukraine — are pushing oil prices to US$100 per barrel, reaping havoc with companies’ and consumers’ bank accounts.

 DHL EXPRESS The logistics company entered into agreements with Neste and BP for the supply of around 800 million litres of sustainable aviation fuel to decarbonise its aircraft fleet and reduce emissions by upto 80%  MERCEDES-BENZ AG The German carmaker is moving into the US electric vehicle business, opening a vehicle battery manufacturing plant in Alabama that will serve its expansion into the States  ACCIONA According to GlobalData’s Multinational Companies Database, the energy infrastructure is at risk from the actions of Russia, with seven subsidiary businesses based in Ukraine  MICROSOFT Following the release of its Environmental Sustainability Report in early-March, Microsoft has experienced a setback in carbon reduction, moving it further away from its climate target as Scope 3 emissions increased by 22.7% in FY21

W I N N E R S MAY22

L O S E R S

sustainabilitymag.com

TIMELINE How did

Ørsted become the

LARGEST renewable energy provider?

With its latest annual revenue recorded at US$51.45bn, we look a how Ørsted became such a crucial player in the renewable energy sector

1970

2006

2017

Ørsted’s founding and fossil fuel developments

The beginning of offshore wind installation

Becoming a purely renewable energy company

Beginning life as Danish Oil and Natural Gas (DONG), 1970 marked the start of the firm’s fossil fuel operations as a state-owned Danish energy enterprise.

Ørsted’s venture into the offshore wind market was well underway. In the years that followed, the company closed its coal-fired facilities, divesting oil and gas energy operations.

In 2017, Ørsted completed its transition to a purely renewable energy organisation. Divesting its remaining upstream oil and gas business, it rebranded with a new name: ‘Ørsted’.

May 2022

2022 Continuous ranking in the Corporate Knights Index For a fourth consecutive year, the company was listed in the Corporate Knights Index of the world’s 100 most sustainable companies, which recognised the firm’s efforts to meet the 1.5C target set by the Paris climate agreement.

2023 A coal-free energy future As it makes the move from a black to a green energy company, Ørsted has successfully eliminated 86% of its coal business and put a goal in place to close remaining coal power operations by 2023. sustainabilitymag.com

TRAILBLAZER

COMMITTING TO MEASURABLE SUSTAINABILITY THROUGH SCIENCE

CAROLINE NÈGRE INTERNATIONAL SUSTAINABILITY & SCIENTIFIC DIRECTOR, YVES SAINT LAURENT

aroline Nègre is the International Scientific Director and Spokesperson for Yves Saint Laurent Beauté. As a woman in STEM, Nègre — who holds a Master's Degree in Biotechnology Engineering from École de Biologie Industrielle — is an expert in cosmetology, biology and botanicals. She is responsible for developing the formulas for YSL Beauté's best-selling products. Her contributions to the formulation and development of skincare, from dermatological to luxury products, boosted her all the way to a role on the company's Skincare Scientific Advisory Board. Before joining YSL Beauté, Nègre was the Global Brand Manager for Rousselot, a leading provider of bioactive ingredients for nutraceuticals, nutricosmetics and cosmetics, from 2007 to 2011. She worked on several active ingredients for the raw material manufacturer, utilising her scientific expertise. Nègre began her career in the beauty sector after earning her

Master's degree in 2000 as the International Product Manager for The Beauty Group, an OTC cosmetics and luxury cosmetic group best known for their Ingrid Millet and Bioscreen Brand. Then, she served one year as the Product Manager for Physiomins, a manufacturer of cosmetics, dietary supplements, and hyper protein products, until 2007. When she joined the L'Oréal group, she came with more than a decade’s worth of experience in skincare. On top of YSL Beauté, Nègre has also been involved with Biotherm and Giorgio Armani Beauty brands throughout her L'Oréal career. The Ourika Community Gardens project and sustainability YSL Beauté is known to maintain compliance with the strictest cosmetic regulations globally, with the brand willing to go the extra mile to cater to consumers' expectations and demands. These days, the demands are usually ESG-related. In response to consumers' anxiety about microplastics in 2014, the brand stated a commitment to eliminating all plastic microbeads from its rinseoff products. sustainabilitymag.com

TRAILBLAZER

For Nègre, her biggest journey began when YSL Beauté discovered in 2013 that the saffron pistils grown in the plains’ regions of Morocco's Atlas mountains were of the highest quality. "Our potent botanicals are grown in Morocco, in the Atlas Mountains. We use a very precise extraction process for no compromise on ingredients efficacy and on the environment," said Nègre, who spearheaded the project. The company decided to pioneer a project combining cultivation and botanical research, creating the Ourika Community Gardens. The gardens are separated into three different spaces, inhabited by more than 200 botanical species to be utilised for manufacturing, preservation, experimental research and the development of new ingredients. "Each and every raw material is selected, grown, sustainably harvested, and carefully extracted to meet the very highest standards of efficacy," Nègre said. The gardens utilise environmentally-friendly mechanisms in their operations — such as the drystone terraces, which allow traditional gravity irrigation techniques, and the gardens, which harness solar power to run operations. Since 2017, the gardens have been tended by a community of 32 local

May 2022

Berber women that employ organic farming practices. The women are also provided with literacy classes, training courses on different aspects of gardening, as well as sales and administration. "We need to respect the environment by respecting its limits," said Nègre. "The world's leading scientists have warned that we only have ten years left to reduce our use of resources in order to combat climate change. Alongside our own in-depth transformation process to reduce our impact on resources, it is essential and urgent that we start deploying solutions if we want to restore and regenerate our ecosystems." The Gardens started its organic certification process in 2020, and the company plans to restore over 1,000 hectares of land, in addition to the 335 hectares of existing restored ecosystems by 2025. Measurability and recognition YSL Beauté launched a new hybrid makeup and skincare range called Nu in September 2021, introducing its actionable global standard for a healthy, equitable and sustainable future through its products. The brand recently achieved the globally recognised certification, Cradle-to-Cradle.

This certification is proof that the brand has managed to establish the extra steps towards sustainability in terms of material health, material reutilisation, renewable energy and carbon management, water stewardship and social fairness. This is the first time a made-in-France beauty product line has received such a certification.

“WE NEED TO RESPECT THE ENVIRONMENT BY RESPECTING ITS LIMITS”

sustainabilitymag.com

FIVE MINUTES WITH...

NEILL RICKETTS As the world embraces the graphene revolution, Versaien stands on the forefront of the transformation. Q. TELL ME ABOUT YOURSELF?

» Starting off as an engineer, I always had a bit of a flair for making a little bit of money, as well. So putting the two things together, that's how I ended up running this area. I spotted a bit of a niche where there were lots of really, really great ideas in UK universities, but they weren't making it to light. And so we started with the first technology from the University of Liverpool, quickly moving into the fascinating world of graphene when we acquired a spin-out from the University of Manchester in 2014.

Q. GRAPHENE WAS DISCOVERED OR SYNTHESISED 10 YEARS AGO, RIGHT?

» Well, it would've been 2004,

2005 that the guys actually isolated graphene, which had been talked about since 1927. I think it was Cambridge University — they get a bit upset that they did a lot of the initial theorising. But the guys in Manchester, they actually got it

isolated and stabilised so that we could start to measure it and look at it. It wasn't really until about 2011, 2012 that it started to become mainstream. So you're right. About 10 years ago, people started talking about it. Then, of course, you've got the challenges of actually making the stuff.

Q. HOW DOES GRAPHENE CHANGE THINGS?

» Graphene has the ability to change

almost everything that we do. Everything we use, everything we take for granted. And, in a lot of instances, you know, that's for the positive effect on the environment. So if we can reduce the amount of concrete that we are pouring — because graphene can give it 50% more strength — if we could take away the steel that has a really quite nasty making process, then we can really start to see these changes and make a difference to the environment. That's what we should really concentrate on at the moment. sustainabilitymag.com

FIVE MINUTES WITH...

Q. SO, WHAT DOES VERSAIEN HAVE TO OFFER EXACTLY?

» So we're taking that fantastic

wonder material, graphene, and we're putting it with lots of other materials that we use on a day-to-day basis and take for granted. It doesn't matter whether it's concrete or it's carbon fibre. It doesn't matter whether it's for a defence application or automotive aerospace. What we're trying to do here is radically disrupt the conventional methods and materials that we've been using for centuries. So at some point, we're gonna change our thinking from making ‘pretty’ things to making things that are really, really functional.

Q. WHERE DOES VERSAIEN STAND NOW IN TERMS OF FACILITIES?

» Now we operate out of three main

laboratories in the UK and three factories. We have three laboratories at the University of Manchester, the centre of the graphene revolution. Then we have a laboratory down at the University of Cambridge where they have their own graphene centre as well.

Q. WHAT DO THE NEXT 12 TO 18 MONTHS LOOK LIKE FOR THE COMPANY?

» I'd love to say that they are going to be really relaxing and a bit of a lull in activity. I don't think anybody who's been in business for the last 20 years has seen anything like we've been through the last three or four years. In terms of what I see in future, I think 24

May 2022

“ WHAT WE'RE TRYING TO DO HERE IS RADICALLY DISRUPT THE CONVENTIONAL METHODS AND MATERIALS THAT WE'VE BEEN USING FOR CENTURIES” that the record will change quite substantially. I'll see that there'll be more emphasis put on sustainability. We're already seeing that in the textile industry and the construction industry. We know that we've got some big challenges and some big targets to hit. We don't really have a clear path to those at the moment.

sustainabilitymag.com

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May 2022

VISA

VISA EUROPE’S ESG ON A ROLL IN PROCUREMENT AND SUPPLY CHAIN WRITTEN BY: SCOTT BIRCH

PRODUCED BY: GLEN WHITE

sustainabilitymag.com

VISA

Visa Europe CFO Rob Livingston and CPO Alisa Bornstein explain how a focus on procurement and supply chain is driving the payments giant’s ESG strategy

he Chief Procurement Officer’s engagement with the C-Suite is growing, and increasingly Chief Financial Officers recognise the value that a close relationship between the two executive functions can bring to the business and its commercial goals. “Over the past two years of the pandemic, we've had the opportunity to take a closer look at the resilience of our supply chain and how closely connected that supply chain is with the communities where we are,” says Rob Livingston, Visa Europe CFO. “During that time, there have been two elements that have leapt to the forefront in terms of how we think about procurement. The first one is around sustainability and making sure that we have a supply chain that is going to reflect our goals as a corporation in terms of our environmental and other impacts on society. “The other element that we really focused on is the diversity of our supply chain – making sure that we were resilient and support diverse and small businesses. Having backup suppliers for the most critical functions is key, as is thinking about diversity in terms of ensuring that we're supporting businesses that are owned by women, or led by women, and minority-owned businesses here in Europe and around the world.

sustainabilitymag.com

ROB LIVINGSTON TITLE: CFO INDUSTRY: INFORMATION TECHNOLOGY & SERVICES LOCATION: UNITED KINGDOM

Rob Livingston is Chief Financial Officer for Visa Europe. In this role, he oversees Visa’s financial strategies, planning and reporting, in addition to all finance operations and corporate real estate in Europe. He is based in London. Prior to this role, Rob was SVP for Strategic Initiatives in Beijing. From 2013-2017, he was Visa’s Country Manager for Canada, where he oversaw the strategic direction, key relationships, marketing, operations and financial performance of Visa’s Canadian business. Before joining Visa in 2013, Rob worked at Capital One for 18 years in the US, UK, France and Canada, most recently as President of Capital One Canada. Rob is Past Chair of the Board of Directors of the Boys and Girls Club of Canada. He received his degree in Economics from Yale University.

May 2022

“People trust Visa because of what we bring to the global economy” ROB LIVINGSTON CFO, VISA EUROPE

EXECUTIVE BIO

COMPANY: VISA EUROPE

VISA

sustainabilitymag.com

VISA

“ At Visa, we are focusing on sustainability and diversity in our supply chain. That's the highest priority” ALISA BORNSTEIN CPO, VISA EUROPE

May 2022

“This work is central to our purpose – everyone deserves an equal chance at economic prosperity.” Livingston joined Visa in 2013 to lead Visa’s Canadian business before then moving to China in 2017. He became Visa Europe’s CFO in July 2019 so the majority of his tenure in this role has been set against the backdrop of the pandemic – which has transformed the nature of payments and procurement. “We were looking to bring procurement more to the centre of our business strategy,” says Livingston. “So I was thrilled to be able to hire Alisa Bornstein to join Visa Europe as our Chief Procurement Officer. She's got a fantastic background and a deep knowledge of procurement.” sustainabilitymag.com

VISA

May 2022

ALISA BORNSTEIN TITLE: CPO COMPANY: VISA EUROPE INDUSTRY: INFORMATION TECHNOLOGY & SERVICES LOCATION: UNITED KINGDOM

“Procurement is not my profession – it is my passion!” ALISA BORNSTEIN

EXECUTIVE BIO

CPO, VISA EUROPE

Alisa Bornstein is Chief Procurement Officer for Visa Europe. Alisa has more than 25 years of international procurement experience, most recently as global CPO at semiconductor leader Arm, before joining Visa Europe in January 2021. Alisa has also held senior leadership roles at BT, Millicom, and Eriksson, to name just a few. She has a strong track record of leading and transforming procurement organisations, operating effectively cross-borders in mature and emerging markets and functions. She is a passionate advocate for value-creating and business-focused procurement, utilising its unique position within the value chain to deliver new sources of value to the business.

sustainabilitymag.com

VISA

May 2022

Bornstein made a name for herself in procurement while CPO of UK semiconductor and smart technology design company, Arm, based in Cambridge, England. While at Arm, Bornstein designed and executed a procurement transformation, from maturing the function to digitising and automating end-to-end source-to-pay

(S2P) processes. Bornstein joined Visa Europe in January 2021 and has been tasked with elevating procurement in line with leading practices and standards, including state-of-theart business support. She embarked on a transformation of the function, and continues to advocate the importance of procurement and supply chain as a sustainabilitymag.com

VISA

strategic part of the business ecosystem. “This is not about having a seat at the table,” says Bornstein, “but to ensure that we, as procurement professionals, listen, understand and support the business and use the power of the supply chain to deliver value to our organisations. True procurement leaders have shifted from being operational in the past to becoming strategic business partners. Collaboration and partnership is my passion. This is something I believe in, and this is what 40

May 2022

we have at Visa.” The importance of third party suppliers Going back to sustainability and diversity, they are key drivers of the changes being seen in procurement at Visa Europe, and Bornstein says these are big opportunities for many organisations who haven’t yet leveraged their supply chain. Visa Europe has literally thousands of suppliers and one key area of focus for Bornstein is to better understand the thirdparty suppliers’ ESG credentials to support

“We were looking here in Europe to bring procurement more to the centre of our business strategy” ROB LIVINGSTON CFO, VISA EUROPE

INSIGHT...

BACK TO BUSINESS The sixth edition of Visa’s Global Back to Business study published earlier this year showed that 90% of small businesses surveyed with an online presence said they were optimistic about the future, with nearly three quarters (73%) saying accepting new forms of digital payments was fundamental to growth in 2022. Since the start of the pandemic, Visa has launched a variety of programmes to help small businesses accept digital payments and gain greater access to the digital economy.

sustainabilitymag.com

VISA

“As a procurement leader I strive to be a strategic partner to the business. My goal is to drive meaningful impact to the business” ALISA BORNSTEIN CPO, VISA EUROPE

May 2022

company-wide objectives and initiatives. “Procurement can drive innovation by utilising suppliers’ knowledge in their own space,” says Bornstein. “It's very well positioned to drive ESG, sustainability and diversity. Visa recognises that third-party suppliers are important stakeholders. “Today they provide services and products to us, tomorrow they might become our partners and ultimately, as both businesses and

individuals, they use our payment solutions.” To support Visa Europe in its ESG initiatives, the Procurement team has entered into a partnership with EcoVadis to help assess their supply chain. The aim is to provide a better understanding of suppliers: who they engage in their business from an ESG perspective, and how Visa can together improve the communities in which they operate. That partnership with EcoVadis helps to sustainabilitymag.com

VISA

provide insights into Visa’s supplier base, which is more important than ever when it comes to risk mitigation – something demonstrated by the pandemic. However, this spotlight on suppliers goes beyond highlighting potential problems – it has benefits for the suppliers too, with Visa being able to identify those that may need extra assistance or support in these unprecedented times. “We are focusing on sustainability and diversity in our supply chain,” says Bornstein. “That's our highest priority. Working with and supporting small businesses is extremely important to Visa Europe and Visa overall, and procurement as a function has a role to play.” One example of that supportive role is the aspiration to operate in line with the UK Government Prompt Payment code and change SME payment terms to 30 days, to help small companies through tough times and recognise their importance to Visa Europe. “The pandemic has been incredibly tough on small businesses more than anyone else,” adds Livingston. “What we are trying to do at Visa is to support small businesses as they recover from the pandemic and then accelerate their business in the future, and the main way we can help them do that is by

“ What we are trying to do at Visa is to support small businesses as they recover from the pandemic and then accelerate their business in the future” ROB LIVINGSTON CFO, VISA EUROPE

May 2022

helping them go digital. “Even today, less than half of small businesses in Europe have a digital presence for ecommerce, and that's something that creates tremendous opportunity for a rebound in the future. We've made a multiyear commitment to digitise 50 million small and medium businesses around the world and we're already halfway there.” Visa is able to implement this farreaching initiative by combining its global strength with local knowledge. Operating in

1958

Year founded

20,500

Number of employees worldwide (2020)

more than 200 countries gives Visa unique insight into what’s important to clients, consumers and merchants in each of those locations. Visa’s sustainability ambitions go far beyond supporting SMEs and promoting ecommerce. “Visa as a company is committed to achieving net-zero carbon emissions by 2040, which is 10 years faster than the Paris Agreement,” says Livingston. “The way that we're doing that is the way that all companies do – through offsets and

changing behaviour of our employees and our suppliers. But at Visa we can also provide sustainable products and solutions that our clients’ banks can offer consumers to help them manage their carbon footprint. This has incredible power over the long term.” The future of digital payments The payments ecosystem witnessed an acceleration in digital transformation during the pandemic, and it is important for Visa to maintain some of the benefits sustainabilitymag.com

May 2022

VISA

“Driving ESG in our supply chain means we can influence some big changes in the culture, attitudes and behaviours around it, to protect the planet” ALISA BORNSTEIN CPO, VISA EUROPE

for the future – from contactless payments to online shopping – while also making preparations for the global recovery. “We're just at the beginning of cross border travel starting to come back,” says Livingston. “People are feeling confident enough to go overseas on holidays, and those are all good for the global economy and they're good for Visa. “The speed of that return of business as usual is going to be important, but we can't lose sight of the fact that so much has changed.” When you accept payments in more than 80 million locations, and process thousands of secure transactions every second, everybody knows your name – but does everyone fully appreciate what Visa does? “This is what we bring to the table,” says Livingston. “We are a global brand operating locally. We're one of the most ubiquitous brands in the world, but not everybody knows exactly what we do. What Visa does is facilitate commerce each and every day, all around the world. “We enable consumers to buy things in person at stores or online, and we facilitate money transfer from businesses to businesses, from banks to banks. “People trust Visa because of what we

bring to the global economy. We offer extraordinarily fast and secure transactions for everyday use and we have the world’s leading security infrastructure governing digital payments. “There's nothing more important to us than ensuring that Europeans are able to use their card anytime and everywhere they want to be.”

sustainabilitymag.com

ESG

INTEGRATING ESG INITIATIVES

TO MAXIMISE INVESTMENT VALUE With private equity firms increasing their focus on companies’ ESG objectives and strategies, the importance of clearly implementing both is highlighted WRITTEN BY: BLAISE HOPE 48

Month May 2022 2021

sustainabilitymag.com Magazine.com

ESG

“ THEY DO FACE CERTAIN PRESSURES FROM INVESTORS, JUST LESS IMMEDIATE SCRUTINY IN THE PUBLIC EYE” GRAHAM RIHN

FOUNDER AND CEO, ROADRUNNER

May 2022

rivate equity has made significant strides in environmental, social, and corporate governance (ESG) and sustainability in recent years. According to PwC's most recent report on ESG in private equity, the industry's realisation that it can be used to create value has been the key to building this growth. Interestingly, increased collaboration and peer pressure within private equity are shown to be contributing to a greater rate of ESG integration. Over the next decade, JP Morgan, for example, plans to lend, invest in, and provide other financial services across the banking sector totalling up to $2.5tn, a sum that’s specifically earmarked for those companies and projects addressing climate change and social inequality. In 2015, Goldman Sachs Asset Management (GSAM) acquired ESG and impact investing pioneer Imprint Capital Advisors, which demonstrated the firm's commitment to ESG investing and sustainability. Since then, GSAM has pursued a slew of new projects and strategic initiatives to expand its ESG, sustainability, and impact activities.

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ESG

“ THESE TARGETS, AND THE QUALITY OF PLANS TO MEET THEM, ARE CRITICAL TO THE LONG-TERM ECONOMIC INTERESTS OF YOUR SHAREHOLDERS” LARRY FINK

CHAIRMAN AND CEO, BLACKROCK

Another prominent player in the ESG arena is BlackRock, the world's largest asset manager with US$10tn in asset under management. Larry Fink, chairman and CEO of BlackRock, issued his yearly letter to CEOs in January, urging companies to do more than set a long-term net-zero target. "We are asking companies to set short-, medium-, and long-term targets for greenhouse gas reductions," Fink wrote. "These targets, and the quality of plans to meet them, are critical to the long-term economic interests of your shareholders." Fink went even further in his 2022 letter, encouraging employees to establish more immediate emissions reduction targets and report their progress according to

a framework developed by the Task Force on Climate-related Financial Disclosures. Touching on the issue of sustainability in ESG, Fink defines a corporate environment as one that is concerned with issues such as racial equity, childcare, and mental health, in addition to day-to-day operations. "Companies that deliver are reaping the rewards," Fink said. "Our research shows that companies who forged strong bonds with their employees have seen lower levels of turnover and higher returns through the pandemic. Companies not adjusting to this new reality and responding to their workers do so at their own peril."

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ESG

ESG reporting pressure in private equity Climate change crisis poses a major quandary for businesses, as some face growing pressure and negative public exposure to address their impact on the environment, particularly as ‘greenwashing’ becomes more rife. It can be difficult to accomplish, however, especially for larger companies with multiple locations, distributors, and systems within their supply chains — and it is this issue that RoadRunner is attempting to solve. RoadRunner founder and CEO Graham Rihn revealed how his firm can assist companies in achieving their ESG initiatives, highlighting that enterprises usually lack the time and resources needed to appropriately manage day-to-day waste and recycling operations for their portfolio. Offering customised recycling and waste services, RoadRunner is a company that works to improve waste stream management for businesses in a variety of industries. While JPMorgan, Goldman Sachs, and BlackRock are launching and touting their own initiatives — and a new generation of High Net Worth Individuals is demanding better reporting on ESG criteria — those pressures are also playing out in private equity, albeit in a less visible manner. "They do face certain pressures from investors," says a high-ranking Wall Street banker in New York, who requested to remain anonymous. "Just less immediate scrutiny in the public eye." Limited partners, who have their own stringent criteria, drive some of the demand for ESG reporting. Nevertheless, many private equity firms are still failing to meet their investors' ‘best practice’ expectations. In 2020, for example, only 29% of private equity firms 54

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made their full ESG policy public and only 25% had an expert or team dedicated to accounting for ESG factors in investment decisions. While comprehensive assessment of the private equity industry can be challenging due to its lower visibility

ESG

“OUR RESEARCH SHOWS THAT COMPANIES WHO FORGED STRONG BONDS WITH THEIR EMPLOYEES HAVE SEEN LOWER LEVELS OF TURNOVER AND HIGHER RETURNS THROUGH THE PANDEMIC” LARRY FINK

CHAIRMAN AND CEO, BLACKROCK

when compared to public companies, research has shown that only a small minority of private equity firms obtain ESG reports from their portfolio companies, while many private equity firms won’t divulge whether such issues impact profitability. How to reap the rewards of ESG initiatives in private equity investments As more private equity firms start paying closer attention to ESG objectives and strategies, the significance of implementing both to ensure a competitive edge when pursuing investments becomes increasingly apparent. There are numerous actions private equity firms can take to boost their ESG portfolio: establish concrete policy commitments; report on each ESG pillar; define a simple yet effective scoring and screening strategy, and incorporate ESG-related questions into standard due diligence questionnaires. With those measures in place, providing employees training on legislative changes, current ESG trends, and organisational policies on a regular basis becomes straightforward. The process can then be cemented for the future. sustainabilitymag.com

DELIVER & OPERATE REPORT:

SAP going the extra mile on sustainability AD FEATURE WRITTEN BY: SEAN ASHCROFT 56

May 2022

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SAP REPORT

EXECUTIVE INTERVIEW

SAP going the extra mile on sustainability SAP’s software solutions are helping its customers improve ESG and sustainability performance in logistics, last mile and asset management.

missions from logistics businesses during the delivery of goods have been on an upward trajectory, increasing by 1.9% annually since 2000. Most of this can be attributed to the rise of globalisation and increased demand for consumer goods. Investors, regulators, consumers and employees are all starting to demand sustainably derived products and services with a smaller environmental footprint across the entire supply chain, opening up a world of possibilities for businesses of all sizes and across all sectors. Helping businesses harness the immense power of such technology is SAP, whose digital solutions are designed to help reinvent the flow of goods,making it smarter, faster and cleaner. In today’s global supply chain, goods 58

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MINDY DAVIS

might travel half-way around the world before reaching their final destination, which can have a large impact on a company's carbon footprint. Add to this the increase in e-commerce over the past two years, and the resulting need for directto-consumer shipments, and again, the emissions increase exponentially. Transportation is one of the areas in which getting to zero emissions is a big goal. That includes reducing travel distances and increasing efficiency. It’s not uncommon, for example, for trucks to return empty once a delivery has been completed. Such trips are called ‘deadhead miles’ or ‘empty miles’. SAP helps businesses optimise loads and reduce mileage across operations, making such deliveries more sustainable, end to end - from raw materials, to factory, to warehouse to doorstep.

DELIVER & OPERATE

SAP’s Transport Management System helps businesses optimise loads and reduce distances across last-mile operations IT’S ABOUT ZERO EMISSIONS, WASTE AND INEQUALITY “It’s about zero emissions, zero waste and zero inequality,” explains Mindy Davis, SAP Digital Supply Chain Global Marketing VP. Shippers need tools to adapt to dynamic market conditions so they can plan and execute on freight, and track

and settle it in tight collaboration with carriers. Where capacity is unexpectedly scarce, shippers need the ability to secure resources and spot-pricing where needed the most, to optimise travel time on the road, air, and sea. SAP can help shippers optimise loads and reduce drive time and emissions. Jointly with partners, SAP can now sustainabilitymag.com

SAP REPORT

capture engine emissions and bring that data back into a collaborative network. “We can optimise based on CO2 and not just cost and time,” says Davis.

and also the exchange of documents with key business partners. In this way, its customers improve transparency across DIGITAL the value chain. SUPPLY CHAIN Davis says: “We have software that AND OPERATION facilitates data exchange between supply SUSTAINABLE LOGISTICS IS A chain participants such as shippers, COLLABORATIVE EFFORT Logistics is a complex undertaking. logistics service providers and buyers. It manages the movement of raw This is at a global level, meaning they can leverage synergies, gain a common materials, intermediate products, understanding, and reach process and packaging across the globe to optimisation for decreased costs and manufacturing facilities, as well as the distribution of products from origin to improved capacity utilisation.” consumption. An open logistics network She adds: “In an increasingly volatile global business environment, customers that connects business partners for inter-company collaboration and insight need a network to help manage exceptions and foster productivity will not only optimise connections, but ultimately reduce emissions. through easier supply chain collaboration, based on real-time data and predictive SAP works to provide a central entryintelligence.” point to manage logistics transactions, 60

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DELIVER & OPERATE

“Many of our customers are dedicated to supporting business processes that save time and valuable resources,” adds Davis. “With distribution such a critical component of operations, SAP can boost the accuracy and speed of shipments, across order creation, transportation planning and freight payment.” One SAP customer is Roger Perala, Senior Director of Business Systems, United Sugars Corporation. Perala says: “Using SAP solutions, we’ve increased our freight spend

Customers can achieve process optimisation, for decreased costs and improved capacity utilisation savings, improved process automation and information flow, and improved our data management. Today, we are a more efficient shipper, and that saves us time and resources.” Moving on to helping customers address waste, Davis says SAP works with customers to manage returnable packaging, with a view to establishing circular flows for items such as pallets. “SAP’s solutions capture ownership, inventory and rental arrangement, and help customers reduce packaging waste,” she explains.

MINDY DAVIS TITLE: VICE PRESIDENT, GLOBAL MARKETING, SAP DIGITAL SUPPLY CHAIN Mindy Davis is passionate about building world class teams to successfully launch exceptional products. Mindy is a strategic thought leader and subject matter expert, possessing a depth and breadth of marketing and business knowledge to provide sound, innovative strategic leadership and initiatives while ensuring the preservation of and link between product, industry, field and marketing is maintained. Mindy’s most recent accomplishments include hosting a very well received LinkedIn Live series for Women in Supply Chain. Davis has been with SAP for 17 years, and has seen an enormous amount of change in that time - but no change more drastic than that which occurred during the pandemic. She says: "Many customers were unable to optimise supply with demand. “We were able to help them dig them out of this hole out by keeping inventory moving with software solutions. And it was all done in realtime, working remotely."

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SAP REPORT

Davis recalls working in a warehouse years ago, developing a pallet redistribution programme to ensure pallets were cleared from the warehouse floor in order to improve employee safety and reduce incidents, returned, reused, and recycled. “It was all in an AS 400 system,” says Davis. So yes, I’m dating myself!” She adds that much of the waste inherent in moving products via pallets can be eliminated by digitising the process. Davis continues: “As for inequality, we have the ability to track products back through the value chain to product origin. Our software captures data from all the parties that interacted with any given product, using tamper-proof blockchain for security. “With this, customers can seamlessly check product provenance by, for

May 2022

Customers can check product provenance by scanning a can or a package of coffee to see where it originated example, simply scanning a can or a package of coffee to see where it originated, or if it was traded fairly.” SAP HELPING CUSTOMERS EXCEL ON ENVIRONMENTAL, SOCIAL, AND GOVERNANCE (ESG) TARGETS SAP’s customers - and their suppliers can certainly see the difference when it comes to ESG. A consumer coffee brand well-known for hand-roasted and specialty coffees across Europe, is using SAP solutions to improve their sustainability practices. “As part of their sustainability ambitions, this brand wanted to make their coffee supply chain more transparent, both to themselves and their consumers,” explains Davis. “The goal was to achieve greater consumer trust and engagement, and also to be recognised as a sustainable brand by having full traceability on the coffee value chain.” This coffee producer uses SAP solutions to trace materials end-toend across their supply chain, and this is seamlessly integrated with the company’s IT landscape. “At the farm level, they source highquality coffee from smallholder farmers

DELIVER & OPERATE

via their own smartphone app,” says Davis, who adds that each transaction is geo-tagged and time stamped, and that data is uploaded into SAP “so they can now capture and analyse the batch genealogy, from farm to roaster.” Sustainability and ESG requirements now touch on every aspect of a company’s operations, including how it manages and optimises the performance of its assets. “On this front, it’s all about revolutionising equipment ROI, says Davis. “Every business trying to reduce environmental impact wants to run their equipment at optimal performance to minimise energy consumption and extend their lifespan, as well as minimise environmental risk.” She adds: “We help customers reduce costs by using artificial intelligence (AI), analytics and insight, to pinpoint what needs to be done, before there’s a problem. We then mobilise a focused service-response for sustainable service delivery.

We help customers reduce costs by using artificial intelligence, analytics and insight, to pinpoint what needs to be done, before there’s a problem

“Workforce scheduling and dispatching is also optimised and carried out in real time, using AI tools. Analytics, reports and dashboards help to recognise issues, and this allows businesses to resolve issues quickly.” SAP also assists with the provision of a mobile field service, which manages existing workloads “whether you’re online, offline, or only occasionally connected.” One of the reasons SAP has an allencompassing view of sustainability issues is because it works with companies across 25 industries around the world. One is mining. One mining customer, based in Phoenix, Arizona, has more than 500 technicians across its supply chain, and sustainabilitymag.com

SAP REPORT

The goal is to find the shortest route using real-time information SAP has helped them both improve and increase equipment availability, as well as increase the efficiency of its maintenance plan by 25%. And then there’s discrete manufacturing – whereby equipment manufacturers can increase service efficiency and transform the customer experience through automation and AI, says Davis. She continues: “This increases service revenue and customer satisfaction through targeted, modularised service offerings, as well as improving manufacturing up-time and great on-time delivery. “Plus, we can enable a collaborative platform for sharing performance analytics with manufacturers, operators and service providers to increase operational visibility and more-agile decision making.” REVOLUTIONISE EQUIPMENT PERFORMANCE TO MINIMISE EMISSIONS Using Industry 4.0 best practices, together with SAP solutions, enables operators to not only optimise equipment performance but also to extend their useful life, by helping to improve design and service, which reduces the assets’ carbon footprint. Davis is a big Formula One racing fan, and she is thrilled to see SAP solutions 64

May 2022

help a certain F1 team master extreme cornering skills. “In F1 racing, cars make hairpin turns at high speed, turns that must be executed perfectly for the car to minimise its total race time, and the distance travelled. You can map such a turn onto a network flow on a grid, where the nodes represent the positions along the turn, and the path that needs to be taken to reach the next node. “The goal is to find the shortest route using real-time information. It’s really energising to see our customers use SAP solutions to connect with remote experts on the race track in real-time, using peer-to-peer augmented reality.” She adds: “Our customers can improve knowledge transfer and boost performance, while optimising technician travel-time, in order to reduce vehicle CO2 emissions. While I’m not a professional car racer, with our solutions, I can guide our customers

DELIVER & OPERATE

closer toward reaching their CO2 emission mandates.” HOW SMART TECHNOLOGY IS DRIVING INNOVATION IN LAST-MILE DELIVERY Continuing the F1 analogy, Davis says: “In Formula 1, it’s the last minutes and seconds of the race that get your adrenaline going. Continuous optimisation is the key to winning, and it’s the same in supply chain. “Supply chain optimisation can be very effective in last-mile delivery. It might be the shortest leg of the supply chain by far, but it’s often the most complex, expensive and energy inefficient.” With last mile, there is no greater enemy to customer loyalty and satisfaction than orders not arriving when expected, arriving wrong, or not at all. And with so many disruptions, many traditional supply chain strategies continue to endure excess shipping charges due to changes in last-minute deliveries - all of which increases their carbon footprint.

Today, the last mile link in the supply chain is under enormous pressure to adapt at a lightning pace. But it’s important to remember that a company’s last mile solutions are only as strong as its supply chain planning infrastructure, and the ability to deliver visibility and connectivity across the entire supply chain journey. More than first- and middle-mile logistics, last mile has seen the greatest amount of change, thanks in large part to omnichannel. Last mile is also the most publicly visible link in the supply chain, and as such is most likely to be blamed by customers if anything goes wrong. But like a cog in a machine, last mile logistics can only function as efficiently as the other moving parts across the supply chain. In conclusion, Davis says she is “inspired” by how much digital supply chains can help SAP customers deliver sustainability initiatives, and is “optimistic” about the future on this front. “It's been exciting, challenging and ultimately fulfilling to see our customers use digitalisation across their supply chains to fuel fast, agile, and sustainable responses across the value chain,” she says.

Continuous optimisation is the key to winning in F1, and it’s the same in supply chain sustainabilitymag.com

DIVERSITY

ARE working-from-home sustainability claims fact or fiction? With Microsoft, Spotify, Google, Facebook, and many more agreeing that home working is the future, we look into claims about its sustainability credentials WRITTEN BY: BLAISE HOPE

May 2022

DIVERSITY

he COVID-19 pandemic introduced to the mainstream what had already become normalised for some generations, industries, and specific companies. This new trend was working from home - or WFH - instances of which jumped from around 5% before COVID-19 broke out to 47% during April 2020, according to the UK Office of National Statistics. Theoretically, working from home reduces air pollution and CO2 emissions, with research conducted by Spain's Institut de Ciència i Tecnologia Ambientals suggesting that it has a significant, positive impact on air pollution. According to the UK's Department for Transport, car travel decreased by around 60% in 2020 due to the pandemic. Similarly, bus travel fell almost 90%, while train travel had its frequency lowered to 100% below normal levels. Now, we live in a firmly hybrid-working world, with employees working both at home and the office. When COVID struck and things started to suddenly change, the commute disappeared (alongside much industrial and, to some extent, economic activity), leaving skies clear, birds singing, dolphins in Venice's famous canal network - and a huge drop in emissions. If average commuting times range from 1.5-2 hours in most countries, and vehicles emit between 100-700g of CO2, then working from home represents a significant achievement in reducing CO2 emissions. The above research from Spain showed working from home four days a week reduced the amount of nitrogen dioxide one of the main pollutants caused by traffic - by about 8%. 68

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60%

of car travel decreased 2020 due to the pandemic

90%

of bus travel decreased 2020 due to the pandemic

100%

of train travel decreased 2020 due to the pandemic

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DIVERSITY

But can we make conclusions from these statistics alone, and is working from home really greener? With less travel comes higher energy consumption While it is a well-known fact that COVID-19 restrictions around the world have contributed to the decrease in air pollution and CO2 emissions, they may, somewhat conversely, encourage higher energy consumption, according to at least eight studies. The earliest adopters of working from home were millennials and Gen Z, who are also the first generations fully or largely born with the internet at the touch of a finger. A study conducted by WSP UK, an engineering consulting firm based in London, also indicates that remote work may only be more environmentally-friendly in the summer - at least in the UK, anyway. Due to the need for individual heating in the winter compared to the heating of

one office building, it was found that the environmental impact of remote work during the season was higher. But, the situation is not a one-sizefits-all. In the US, cooling in the summer months is more important than heating in the winter months. This means the situation is the reverse in America, according to Associate Professor of Environmental and Energy Economics at the Yale School of Forestry and Environmental Studies Kenneth Gillingham. It also does not stop there, since whether the cooling or heating is environmentally-friendly depends on where the energy comes from. While some regions are powered by hydro, some are powered by coal. Thanks to the flexibility granted by WFH, the time generally allocated to commuting is shifted for recreation and other purposes, contributing to the increased home energy consumption discussed above. Research from the University of Manchester also found that pollution production did not

DIVERSITY

wholly disappear between April and June 2020 and rather shifted to other forms. The period saw an increase in global sales of the laptop, with over 72 million units shipped - a rise of 11% over usual figures. The sales of home office furniture even went up higher, with sales of office chairs and desks increasing by 300% and 438%, respectively. These increases in volume were largely responsible for the pollution emitted at that time. The research also found that people were expanding their houses, making additional rooms, garages, kitchens, and gardens to make their additional free time more worthwhile, which translates to higher energy consumption in general. Will the future of EFH become more sustainable? The Covid-19 pandemic is slowly subsiding and more companies are trying out new different models of remote work, as 91% of employees would like to continue their hybrid or remote working. Vice versa, 76% of the companies are willing to continue remote work going forward. However, the environmental sustainability gains that we saw have started to fade away, despite the remote or hybrid working continuation. A recent paper by Global Carbon Project revealed that emissions are now nearing their pre-pandemic levels. Organisations have the chance to revamp the way they’ve been operating and adapt to the new behavioural shifts. To actually be environmentally-friendly would, however, require an experimental approach to home working. Research from WSP UK shows that remote work might result in more energy consumption, especially for heating. Even with WFH, the sustainability implications are highly dependent on relevant employee 72

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behaviours, especially energy, travel, technology, and waste management. The responsibility of reducing carbon impact might inevitably fall on employees as individuals to set up an environmentallyfriendly workspace. The impact also goes beyond temperature regulation and commuting, as energy sources are also contributing issues. This would further widen the intrusion not only into the daily lives of employees, their families, and household habits, but also the way the government sets its overall energy policy. This will also add more complications to corporates’ ESG objectives - such as their carbon footprint goals - as this will add a new dimension to the scopes, particularly Scope 3. The continuation of WFH might require corporations and organisations to set up new standards and calculation methods for the never-before-seen footprints of remote working.

DIVERSITY

WRITTEN BY: GEORGIA WILSON PRODUCED BY: MIKE SADR

May 2022

THE STANDARD

ACHIEVING FINANCIAL WELLBEING AND PEACE OF MIND

sustainabilitymag.com

THE STANDARD

An employee from The Standard volunteered for Habitat for Humanity

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May 2022

THE STANDARD

The Standard’s Rachel Henney details the company’s approach to ESG, commitments to simplicity in its procurement processes and strong third-party governance

ounded in Portland, Oregon, in 1906, Standard Insurance Company (The Standard) is a leading provider of financial protection, insurance, retirement, and investment products and services for both employees and individuals. Under its holding company name, StanCorp Financial Group Inc., the organisation has four primary subsidiaries: Standard Insurance Company, The Standard Life Insurance Company of New York, Standard Retirement Services, Inc., and StanCorp Mortgage Investors, LLC. When it comes to The Standard’s core mission, Rachel Henney, Head of Procurement, Supplier Management and Governance, explains her love of its simplicity. “The Standard is a family of companies dedicated to helping our more than eight million customers achieve financial well-being and peace of mind,” she says. Since joining the company in 2015, Henney reflects on the incredible growth of the group: “When I arrived, revenues were at US$2.9bn. We ended 2021 at nearly US$4bn,” says Henney. She adds: “We’ve also deepened our investment in technology. And in doing so, we came to understand that we cannot be experts in everything. So, we partner with strategic, best-in-class vendor partners to deliver value to our businesses and customers. sustainabilitymag.com

HCL Technologies helps The Standard achieve their vision Ananth Subramanya, SVP of Digital Business at HCL Technologies, details how the company’s helping The Standard digitally transform now, and in the future

Helping The Standard to digitally transform Like any other insurance company, The Standard is focused on investing in its customer experience. The Standard offers a variety of solutions, including those for retirement, disability, dental and healthcare.

In recent years, technology has taken a central role pretty much everywhere. As a key enabler for many organisations, having advanced technology within core operations has become a key differentiator for businesses. “Organisations are no longer simply using technology as a substitute for labour to drive productivity,” says Ananth Subramanya, SVP of Digital Business at HCL Technologies. He adds: “Technology has become a core conversation in the boardroom. Now they are figuring out how technology can advance the business and drive the important aspects of the agenda. Investment in technology is becoming as important as the products an organisation sells.”

Helping organisations achieve their digital transformation vision With COVID-19 accelerating the pace of transformation for many organisations, technology has resulted in significant positive disruption to many regulated industries. “If you consider dynamically priced insurance industries, there is significant consolidation in the industry that is driving better experiences and modern capabilities; this can also be extended to the optimisation of functions such as underwriting. Those in the industry are using technology to improve the experience and value a customer gains.” says Subramanya.

“Ensuring that they deliver frictionless solutions so that customers don’t suffer from long wait times, as well as innovating and improving fast are key components for the Standard,” says Subramanya. He adds: “In order to achieve this, HCL Technologies is providing The Standard with significant optimisation capability for their current processes including infrastructure, development processes, and QR automation. With these capabilities, they are able to adopt and improve much faster. “The Standard has also invested a lot in improving its operations and driving efficiency throughout its local platforms with RPA. HCL is helping to ensure that the entire process in the backend is optimised so that the customer experience continues to remain valuable.”

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THE STANDARD

“Deeper storytelling will be a core element of the report. We’re committed to sharing stories — many of which have not been shared publicly — about ESG activities” RACHEL HENNEY

HEAD OF PROCUREMENT, SUPPLIER MANAGEMENT AND GOVERNANCE, THE STANDARD

“But particularly in the last two years, during the COVID-19 pandemic. We’ve really seen great success with our shift to working remotely while continuing to provide the superb customer service that sets us apart from our peers.” The Standard and its ESG commitment In the early stages of its environmental, social, and governance (ESG) related work, The Standard’s approach to ESG has always been driven by its vision “to support a healthier environment for all, to strengthen communities, to align corporate values, and ensure we always take the high road,” says Henney. She adds: “ESG is important and it will continue to be a focus for us.” Yearly, The Standard reports on its ESG activities, sharing details on its plans to ensure the long-term sustainability of the company as well as its measurement and management of its impact. While Henney can’t share many specifics in regards to its upcoming 2021 report, she can say: “The 2021 report will be focused on how we ensure the long-term sustainability of the company, and measure and manage the impact our company has on our customers, communities and environment. It will also continue to highlight how we create a workplace culture in which each employee is valued and respected.” 80

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When asked how the 2021 report will compare to 2020, she adds: “Deeper storytelling will be a core element of the report. We’re committed to sharing stories — many of which have not been shared publicly — about ESG activities inside our various business units.” The Standard is committed to multiple United Nations Social Development Goals (SDGs), the adoption of which will help the company to not only track and report on its work, but to tell a more complete and transparent story when it comes to its sustainability. The Standard’s dedication to supplier diversity With supplier diversity being a core pillar of The Standard’s ESG model, this approach offers the company an opportunity to support its communities. “Supplier diversity is a business imperative; we take this very seriously and promote inclusion of diverse suppliers with our standard workflow for procurement and sourcing events,” explains Henney. She adds: “We continually grow and promote our supplier diversity efforts by benchmarking activities with industry peers for best practices, leveraging the advocacy organisations that certify companies as diverse (NGLCC, NMSDC, MBENC) for future matchmaking events to grow our portfolio of diverse suppliers.”

THE STANDARD

EXECUTIVE BIO RACHEL HENNEY TITLE: HEAD OF PROCUREMENT, SUPPLIER MANAGEMENT AND GOVERNANCE Rachel Henney is the Head of Procurement, Supplier Management and Governance for Standard Insurance Company. Henney is responsible for leading the supplier management division and for ensuring ensuring a strong and capable supplier base is in place

to support the company’s suppliers of products, professional services, software, hardware and outsourced services. Henney joined The Standard in 2015 and has over 25 years of experience in procurement, supplier management and enterprise shared services. She has held previous roles in business consulting and solution delivery, focusing on programme management, simplification, business case realization and strategic vision & planning.

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Genpact helping its clients to insure customers for life Sameer Dewan, Genpact’s global business leader for insurance, discusses how the insurance industry is embracing a new age of data and lifetime customer journeys

is a key partner in helping organisations connect, predict, and adapt to become instinctive insurers and lifelong protectors in their customers’ lives,” adds Dewan.

Genpact is a global professional services firm delivering business transformation by putting digital and data to work to create competitive advantage.

Partnership with The Standard

It’s guided by its mission – the relentless pursuit of a world that works better for people. Genpact is focused on delivering ESG outcomes for both itself and its ecosystem of shareholders, stakeholders, employees, and the communities it operates in. As global business leader for insurance, Sameer Dewan partners with insurers, brokers, and MGAs to drive transformation, develop digital and analytics capabilities at a fast pace, and deliver business growth and efficiency. State of flux from transactional to lifelong customer journeys The role Genpact plays - as detailed in its report Insurance In The Age of Instinct - is to help the insurance industry tackle challenges such as changing consumer expectations, the explosion of data, and a fast-moving technology landscape. “How insurers respond today will lay the foundation for future resilience, and Genpact

The Standard provides insurance, retirement and investment products and services, with total assets under administration of USD$45.36 bn. Genpact creates value for them as an extension of The Standard’s team, creating growth with agile operating models that can scale up to meet demand and running operations to ensure they deliver value. “We started by assessing the current state of operations and customer journeys and the choke points in each. This led to a redesigned operating model, with customer journeys at the heart of designing the new process - driving a better customer experience and growth. But transformation is not a ‘one and done’ project, we also created a transformation roadmap to consciously and continuously drive improvements, meeting The Standard’s goals of growth and profitability over the long term.” said Dewan.

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Allegis Global Solutions Allegis Global Solutions (AGS) is a managed service provider of contingent worker procurement for The Standard. “In the last year, the amount of contingent worker diversity spend was just over 27%,” says Henney. She adds: “AGS as a company is focused on three Sustainable Development Goals for 2022, including climate, work and economic growth, and reduced inequalities, all of which align with The Standard’s core values as well.” Dun & Bradstreet Leveraging several services from Dun & Bradstreet, the company provides The Standard with third-party insights. “With information from their internal certified data, we include unique businesses that have been classified using can be segmented to specific socio-economic classifications, such as minority, women, veteran, LGBTQ, and disabled-owned businesses,” explains Henney. With this information, The Standard can understand the composition of its existing third-party catalogue. Genpact As one of The Standard’s primary suppliers, Genpact supports business process delivery across the policy lifecycle. “We share a deep commitment to three key objectives,” says Henney. “Improving our business through simplification, collectively serving our customers’ needs, and increasing diversity. “They parallel our focus around prioritising diversity and inclusion as published on their website” says Henney. “The results of our strategic engagement with Genpact continue to support not only our company’s vision and mission but also our culture.”

May 2022

Commenting on the partnership with Genpact, Brenda Smith, senior director of Workplace Possibilities at The Standard says: “Genpact has been supporting our area for many years now, starting with two important business processes: both case and invoice set up. Through a solid partnership, our relationship has grown and the team has taken on additional processes including document creation and components of correspondence. All members of the team are hardworking and conscientious, bringing forward ideas for improvement, questions and issues as they arise. Their attention to detail shows in their most recent metric results: 99.41% accuracy and 100% timeliness.” HCL Technologies Working with HCL Technologies since 2016, The Standard continues to grow its strong partnership with the company. “Our collaboration with HCL Technologies brings significant value, operational efficiency, and thought leadership to The Standard,” says Henney. “Their operations are well-aligned to The Standard’s culture of transparency, trust and openness.” During the COVID-19 pandemic, HCL Technologies was a vital partner for The Standard to pivot its operation in the ‘new normal’. “With HCL Technologies alongside our other strategic partners we experienced no loss of productivity, expanded our network capacity, and transitioned to 100% remote working,” says Henney. She adds: “The partnership between HCL Technologies and the Standard has helped the organisation tap into a larger skill and talent pool enhancing our company’s competitiveness in the market.”

THE STANDARD

The Standard simplifies its processes and drives effective governance When it comes to the simplification of its processes, Henney explains that The Standard leverages a methodology called ‘lean management system’. She says: “Lean at The Standard is a set of tools and behaviours that focus on continuously improving the value we provide to our customers, with an engaged and empowered workforce.”

The Standard’s goal is to maximise the performance of its systems or value stream to eliminate waste in the value chain. “Asking ‘why’ each step is required, it serves as a baseline for simplification opportunities,” adds Henney. Choosing a third-party risk governance approach, The Standard uses subject matter experts from across the enterprise covering multiple risk areas — geopolitical,

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© 2022 PwC. All rights reserved. PwC refers to the US member firm, and may sometimes refer to the PwC network. Each member firm is a separate legal entity. Please see www.pwc.com/structure for further details. This content is for general information purposes only, and should not be used as a substitute for consultation with professional advisors.

THE STANDARD

“ Change is inevitable, it is one thing that remains constant” RACHEL HENNEY

HEAD OF PROCUREMENT, SUPPLIER MANAGEMENT AND GOVERNANCE THE STANDARD

technology, compliance, fraud, and legal, to name a few. “This provides a holistic governance approach for our third parties,” says Henney. “These ‘Risk Domain Owners’ work with our centralised TPRM Governance group who act as the central clearing house for TPRM risk monitoring and information management.” In 2021, The Standard further evolved its Third-Party Risk Management Governance group by leveraging leading practices to expand its TPRM programme. “Using a risk-based approach, the TPRM Governance programme monitors third-party providers across a wide number of Risk Domains,” says Henney. She adds: “One of the current focus areas for the programme is to provide enhanced reporting capabilities so business stakeholders have improved visibility to current risk information about their third parties. The Third-Party Risk Management Governance group works with both business and third-party stakeholders to ensure that risks are monitored and appropriately managed throughout the engagement lifecycle.”

The Standard's strategic suppliers help to simplify processes PwC When it comes to quality, cost and control, strategic suppliers at The Standard work with business leaders to determine where the group should focus its outcomes. “While we want to improve all of these, it’s not possible,” explains Henney. She adds: “You can’t require that a supplier is fast, inexpensive and delivers sustainable solutions. Choosing two of these as primary outcomes and objectives together help focus operational results that meet expectations. Our strategic suppliers are integral to core operations and our customer satisfaction.” As a Strategic and Preferred Supplier, PwC works with The Standard to enable and enhance business intelligence and analytics, transforming our end-user ecosystem. PwC and The Standard defined a strategy to simplify our operating and governance model, modernising technology to complement business strategy. PwC’s approach helped The Standard support sustained internal growth and adoption of transformation, including the creation of an internal delivery structure focused on strategy realisation. “Change is inevitable,” says Henney, “It is one thing that remains constant. PwC assists The Standard with the pace of change, and as we progress in our transformational journey, we leverage PwC’s insurance industry experience as well.”

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THE STANDARD

“ Over the past couple of years, the pandemic has reshaped our industry and its perception” RACHEL HENNEY

HEAD OF PROCUREMENT, SUPPLIER MANAGEMENT AND GOVERNANCE THE STANDARD

The Standard’s outlook for the future Looking to the future, Henney expects the industry to continue to be impacted by the current global landscape including the pandemic, geopolitical unrest, and employment retention challenges. She says: “These next couple of years will focus on a deeper evaluation of our supply base, looking at how we can optimise the utilisation of strategic, preferred partners to mitigate inflation impacts.” She adds: “Future trends are in part defined by a reflection of the recent past; over the past couple of years, the pandemic has reshaped our industry and its perception. We sell a promise to be there for our life and disability insurance customers when they need us. “The pandemic, sadly, gave us the opportunity to be there for many people and families experiencing the worst. We're proud of our capability to provide income replacement for people experiencing a disability, and funds to cover expenses and mortgages for families who lost a loved one. The pandemic showed how critical our products are and will continue to be.”

May 2022

A group of employees from The Standard volunteered for Habitat for Humanity

THE STANDARD

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CARBON OFFSETS SUPPORT HOTEL CLIMATE CHANGE ACTION?

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With the travel industry in recovery and welcoming travellers once more, hotels start influencing positive climate change action through fresh initiatives WRITTEN BY: TOM SWALLOW 92

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hile COVID-19 remains a hindrance to daily life, the travel industry has seen an incline in movement as it welcomes more and more consumers returning to check-in desks, departure lounges, and hotels. But, as the coronavirus lessens its grip on our freedoms, businesses within the sector are turning to another form of plague: the climate crisis. The hotel sector has a global presence and is responsible for a significant amount of carbon emissions. According to Elena Ruiz García, Director, Sustainable Business at NH Hotel Group, the hotel industry must reduce CO2 emissions by an equivalent of 17 tonnes annually — a 6% to 7% reduction each year, based on current levels — to meet 2050 targets.

A study carried out by EY Parthenon and Booking.com calculated that the hotel industry will need to invest €768bn (roughly £645.89bn) in procuring more efficient technologies and renewable energy sources to meet future climate demands. To many, this amount of money seems more than a little aspirational, particularly as one of the main concerns surrounding the figure is the economic damage imposed on the industry by the pandemic. In the UK, for example, the Office for National Statistics (ONS) reported that around 1,650,000 hospitality employees were placed on furlough in April 2020 — representing 25% of the overall national furlough figure. Economic recovery was slow during the initial onset of the pandemic, with

industry turnover at just £1.2bn in May 2020. In May 2021, this rose to £6.9bn. While the hospitality sector is slowly recovering in the UK, this may not apply to other countries, with COVID-19 provoking further changes and lockdowns across the globe. So, hotels are not only grappling with the financial fallout of travel restrictions from the past two years and attempting to recover economically, but they are now also expected to locate the funds necessary to reduce their negative climate impact. Hotels need support to carry out sustainability action García believes that “the main obstacles are an insufficient sense of urgency, knowledge gaps, poor data, and a lack of financial sustainabilitymag.com

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

enelgreenpower.com

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resources or access to capital”, which means “companies in the sector need financial and non-financial support to get through this transition”. Access to financial support and the relevant data will help hotel groups in their efforts to decarbonise accommodation. “These support actions range from raising general awareness, helping to channel demand towards sustainable accommodation, or providing easy access to capital and financial support programmes,” García explains. While many organisations would like to spearhead their own net-zero projects, due to the scale of their carbon footprints, many of them choose to offset carbon instead. Nevertheless, this shouldn’t cloud the commitment of the industry as businesses

are continuing to act on their own emissions — and businesses such as the NH Hotel Group are highly committed to the cause. “NH Hotel Group was the first Spanish hotel company to establish emission reduction targets scientifically validated by the Science Based Targets initiative (SBTi),” says García, a feat that marks a crucial step towards net-zero carbon. Carbon offsetting accompanies sustainability first-hand The scale of action required by hotel groups has left them seeking ways to have more of an impact, with one of the most efficient ways to achieve this being through carbon offsetting. While there’s some resistance to carbon offsetting in some industries, the hotel sector must undergo one of the sustainabilitymag.com

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largest offsetting transitions of all — which is unattainable without being based on current insights. How can businesses ensure that carbon offsets comply with their overall requirements? NH Hotel Group has put in place guidelines to ensure that all projects are focused on the same outcome. Detailing the application of carbon offsets in the company in addition to other carbon-reducing initiatives, Garcia explains: “On the one hand, we use offsetting as an exceptional alternative in order to comply with the annual targets set and, on the other hand, we give visibility to the Company's climate commitment by involving guests in it.” Must hotels rely on carbon offsets? It will be interesting to see the impact that carbon offsets have on the climate considering the volume of companies claiming this approach. The general consensus, however, is that organisations want to be responsible for their own actions to reduce emissions. Tom Mallet, Carbon Management Lead at Accor, is responsible for the company’s global climate strategy. He says that hotels must address two major areas when transitioning to net-zero. The first category is Energy — the largest source of hotel emissions — and Mallet explains how it is “associated with everything from heating and cooling, hot water, laundry operations and lighting”. “To reduce these emissions to zero, using less energy is the priority. The good news is that, today, there’s a huge diversity of smart technology available to help hotels monitor their energy use and make reductions. To make deeper energy savings requires considerable investments to upgrade hotels.” 96

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“ THE MAIN OBSTACLES ARE AN INSUFFICIENT SENSE OF URGENCY, KNOWLEDGE GAPS, POOR DATA, AND LACK OF FINANCIAL RESOURCES OR ACCESS TO CAPITAL” ELENA RUIZ GARCÍA

DIRECTOR, SUSTAINABLE BUSINESS, NH HOTEL GROUP

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Unsurprisingly, the second area for action is the supply chain. “Hotel supply chains make up the remaining source of hotel emissions. This includes everything from the food and beverage offerings, guest soaps and shampoos, and hotel maintenance to employee commuting and waste disposal.” Accor is committed to 46% carbon reduction by 2030, a target that will be achieved by leveraging SBTis and avoiding the use of carbon offsets. Mallet explains that “the technology already exists to make the zero-emission switch”, highlighting the fact that Accor already has hotels in the UK and Switzerland with “100% zero-emission electricity contracts, moving them a lot closer to net-zero energy”. Data is critical for carbon disclosure and climate action Analysis of carbon sourcing and usage will open up new insights for hotels and help them obtain a baseline visibility of their operations. Before any actions can be taken — whether offsetting or implementing on-site initiatives — such data must be

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“ NH HOTEL GROUP WAS THE FIRST SPANISH HOTEL COMPANY TO ESTABLISH EMISSION REDUCTION TARGETS SCIENTIFICALLY VALIDATED BY THE SCIENCE BASED TARGETS INITIATIVE (SBTI)” ELENA RUIZ GARCÍA

DIRECTOR, SUSTAINABLE BUSINESS, NH HOTEL GROUP

May 2022

46%

carbon reduction by 2030

100%

zero-emission electricity contracts

£645bn

needed to invest in more efficient technologies and renewable energy sources

gathered and presented in a readable, actionable format. This has also become a high priority for investors looking at the environmental, social, and governance (ESG) commitments of organisations to determine the best possible opportunities. Controlling and monitoring data is a must for businesses that want to take full responsibility for their carbon emissions — but they must use accurate data and analysis to target the areas within their hotels that over-consume, and even waste, energy. Green energy adoption can be carried out by installing on-site renewable energy solutions and purchasing green electricity from reputable suppliers. Combined with a clever emissions-offset strategy, García and the team at NH Hotel Group believe that “the combination of all these actions will lead us to less and less dependence on carbon offsets in the future”. “We must adapt models to a low-carbon economy, implement measures throughout the value chain and find circular solutions when searching for suppliers and allies, seeking the perfect balance between technology, comfort, safety, agility and the human touch, which is, after all, what often makes the difference.” sustainabilitymag.com

THE RED SEA DEVELOPMENT COMPANY

Designing and Building in Parallel WRITTEN BY: DOMINIC ELLIS PRODUCED BY: BEN WIGGER

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2018

Year Founded

Construction Industry

1,500

Number of Employees

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Ian Williamson highlights TRSDC’s design and construction dynamics, sustainability, off-site work and broadening portfolio

porting a white Nike polo shirt, and fresh from attending the Jeddah Grand Prix, Ian Williamson, Group Chief Project Delivery Officer at The Red Sea Development Company (TRSDC), connects with me in his new on-site office he moved into a month ago, and looks at ease straddling the leisure-business divide. For the next hour, such is his impressive grasp of all construction matters with the ambitious Red Sea Project, I don’t have much to say. He is out of the blocks faster than Lewis Hamilton and clearly wants to convey as much about all the myriad development components, and industry issues, in the time available. TRSDC was incubated within Public Investment Fund (PIF) and formally formed into a private limited company, with all stock owned by PIF, in May 2018. It’s an integral part of Saudi Arabia’s Vision 2030, which is transitioning the country from an oil-based economy. Its mandate was to build the project, which covers 28,000sq km of land mass, including a 3,500sq km archipelago containing 92 islands and 250km of coastline. “We equate it to the size of Belgium,” he said. “My role is to take approved design from our development arm, and convert to detailed design, procurement and construction, and handover to our operations team.” sustainabilitymag.com

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28,000sq kms of land mass, including a

3,500sq km archipelago

Williamson joined as the ninth employee, and TRSDC’s workforce is now up to 1,500. The MasterPlan was signed off in November 2018, which was followed by an intensive design period. So far over SAR13bn of work has been contracted which, when you factor in a PPP contract too, totals more than SAR18bn overall. “Everyone’s surprised that we’ve built quite a lot, as we’ve been constructing and designing in parallel. It’s what sets us apart. 104

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We’re contracting at a rate of close to SAR1bn a month until we’ve completed the project buy out,” he said. Along with juggling design and build, a ‘construct-and-manage’ approach provides direct access to the best subcontractors. “That means we haven’t got dependency over one or two contractors – who often have limited control over – and eliminate some of the mark ups,” he said.

THE RED SEA DEVELOPMENT COMPANY

IAN WILLIAMSON TITLE: C HIEF PROJECT AND DELIVERY OFFICER LOCATION: SAUDI ARABIA

BIM360 provides total visibility BIM360 gives total visibility on the entire supply chain involved with the Red Sea Project. Designs can be exported and imported, providing not only progress on a weekly basis, but also stage deliverables. “When you’re spending billions on a megaproject, you can be subject to information overload – and that can lead to information misplacement. Tools can enable data to be put into the right pigeon holes,” he said.

EXECUTIVE BIO

Ian Williamson joined the organisation in October 2017. He is responsible for leading development and delivery of the planning, design and construction of the project. As an Executive and Board Director for over 25 years, Ian has undertaken both strategic and operational roles, developing a leadership style that enables his colleagues to reach their potential. Prior to joining TRSDC, Williamson served as Managing Director at Arcadis Middle East. He holds a Master of Business Administration from Cass Business School, London, UK, and a Bachelor of Science in Electrical Engineering with Mathematics from the University of Reading, UK.

The Red Sea Development Company: designing and building

“ The more we can bring in that’s largely completed, and use finishing trades to put together, the more we can reduce the footfall on the islands” IAN WILLIAMSON

CHIEF PROJECT AND DELIVERY OFFICER, THE RED SEA DEVELOPMENT COMPANY

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He said the main challenges are the hyper inflation of commodities and container costs, which are pressurising projects globally. “Labour is also a key factor, and has a direct bearing on schedules. The contractors who have performed averagely have come in with a project mentality. The ones that are making impression are in for the long haul.” While the pandemic has placed pressures on schedules, Williamson doesn’t want to make COVID an excuse, and says broadly, despite lockdowns and health and cargo restrictions, it is on track. “But we have seen slippage in some areas though, and started night working in the last couple of months,” he said.

THE RED SEA DEVELOPMENT COMPANY

KEY PARTNERS IN RED SEA PROJECT DELIVERY

Jewel in KSA tourism With its clear coral-stacked waters, the Red Sea Project will be a jewel in KSA’s tourism crown. Tourism numbers will be restricted to one million travellers a year. The site has attracted plenty of interest among divers, including Philippe Cousteau, who sits on its advisory board. “You carry premium once you create scarcity, plus the natural beauty of the geography, lends itself to a luxury tourism project,” he said. Today, it is halfway through construction of phase 1. Three hotels are scheduled to open at the end of 2022, and another 13 due to be completed by the end of 2023.

Foster + Partners has designed over 80% of phase 1 works Saudi Amana Contracting has built a 150-room hotel as accommodation for management workers and third party visitors NESMA & Partners Contracting Co. and Almabani are the appointed JV operators for the airside works on the Red Sea International Airport King Abdullah University of Science and Technology (KAUST) has been a key partner since 2017 and its relationship has evolved into a mutually beneficial environmental-access-andresearch alliance Stower has integrated platforms and the project uses Primavera P6 EPPM, which helps manage and execute projects Aconex, bought by Oracle, is another solution in operation and recognised standard in the Middle East

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Where Experience Meets Innovation Contracting and Construction Enterprises (CCE), was established in Riyadh, Saudi Arabia in 1992 as a privately-owned general contracting company, operating in the Arabian Gulf and other countries of the Middle East. CCE has been successful throughout its history executing numerous residential, industrial and commercial projects within the private and public sectors. Over the years, CCE developed a prominent profile among the most reputable general contracting companies in the Kingdom of Saudi Arabia.

CCE builds strong foundations with Red Sea Regional Director Joseph Sarkis explains the changing face of KSA construction and its work with the Red Sea Development Company Contracting and Construction Enterprises (CCE), was established in Riyadh, Saudi Arabia in 1992 as a privately-owned general contracting company, operating in the Arabian Gulf and other countries of the Middle East. Today its broad portfolio covers hotels, infrastructure and megaprojects throughout the Kingdom. Regional Director Joseph Sarkis reflects on a key year for Saudi construction. “In 2020 there was a lot of talk about design and marketing and not so much activity on the ground, but in 2021 we saw a big movement, and lots of mobilisation. It looks like it’s going to swing from one extreme to the other. “Now we’re rushing towards an over-demand of projects with limited supply, so it’s a very challenging landscape, but there are a lot of opportunities as well as risks.”

Working closely with Red Sea Development Company (RSDC), CCE is involved in one of its first deliverables, a 1.5m sqm Coastal Village, which will be the base for the management team. “It’s very exciting to be part of this first, big development in the area and we have the entire secondary infrastructure package designed to reduce carbon emissions – Our project also includes the construction of central facilities and a road and track network dedicated to sustainable transportation” CCE started in February 2021 and planning to handover mid-2022. RSDC operates BIM360 platform which CCE taps into, providing an efficient platform for managing the ambitious, 90-island archipelago project. Sarkis is confident that the RSDC will be a unique hospitality project. “We would like to thank the Saudi Government for giving us this amazing opportunity, and creating the Vision 2030.”

Learn more

THE RED SEA DEVELOPMENT COMPANY

92 islands and

250kms of coastline

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THE RED SEA DEVELOPMENT COMPANY

“ The advantage is there is no existing development or having to work within an established infrastructure. We’ve created the infrastructure and ecosystem, so we can control our destiny” IAN WILLIAMSON

CHIEF PROJECT AND DELIVERY OFFICER, THE RED SEA DEVELOPMENT COMPANY

Last October, as it started getting on top of phase 1, TRSDC said it was ready to take on new projects. That lead to it securing the AMAALA project, 300km up the coastline, as well as around 12 other potential projects in the pipeline that are coastal or island-based, many of which are targeting a different audience – domestic travellers – in contrast to the global appeal of The Red Sea Project. The first phase, Triple Bay, spans 11km and it has a mountain range unusually sited by the coast. The three unique bays owe their existence to water run-off from the mountains. The nine hotels will target ultra luxury travellers, but with more focus on wellness, arts and culture, whereas Red Sea Project is more island based and about its natural attractions.

Boutique Contractor for Special Projects We are a team of engineers, architects, and craftsmen who work with dedication and passion for design, engineering, and fabrication. We are specialists in building iconic landmarks through our state-of-the-art technology, research and development, premium craftsmanship, and ability to understand design complexity.

VISIT OUR WEBSITE

Pushing Design and Manufacturing Boundaries in The Red Sea Grankraft Industries is a key partner of The Red Sea Development Company developing some of the most futuristic hospitality resorts ever seen on water Most engineering and manufacturing companies would expect the brief for building a showpiece attraction within a world-leading ocean-based tourism development to be challenging.

The company, which started with four employees in 2000, now employs 500, and another 200 will come on board during peak production – likely to be arouand September – to complete the project.

But the demands set by The Red Sea Development Company to Grankraft Industries, for the development of the futuristic, hyper-luxury Sheybarah Hotel, have pushed the architectural and construction boundaries to new limits.

Alongside having to completely re-tool their manufacturing facilities, Grankraft acquired +10 bespoke machines and production kit, as well as set to work creating an off-site infrastructure to meet the unique OSM and environmental demands of this unique project.

Grankraft is building +70 futuristic ‘floating bubble’ overwater villas and main public hotel facilities with seamless polished stainless steel surfaces that reflect the environment – and they must be built with minimal disturbance to the coral-rich surroundings. CEO George Jose said the Sheybarah project has tested Grankraft – itself no stranger to arresting developments – like few others, involving R&D, engineering, manufacturers, assemblers, welders, surface finishers and logistics.

“The Red Sea Development Company’s vision is like nothing I’ve ever seen – and I’ve travelled quite a bit – to participate in a project of this relevance, is a challenge and a great opportunity. We love the design and can’t wait to see all the villas installed and ‘floating’ in the ocean.”

VISIT OUR WEBSITE

THE RED SEA DEVELOPMENT COMPANY

“ The main challenges are the hyper inflation of commodities and container costs, which are pressurising projects globally” IAN WILLIAMSON

CHIEF PROJECT AND DELIVERY OFFICER, THE RED SEA DEVELOPMENT COMPANY

“They actually complement each other well, you can see guests coming to the Red Sea and exploring a bunch of alternative holiday destinations – there are exciting opportunities, as we create a ‘Red Sea Riviera’. “There’s so much beautiful coral and mangroves, and it’s rare to come across more than 90 islands with no man-made footprint.” But that is all set to change, and TRSDC is acutely aware of the need to preserve the environment as much as possible. “We originally forecasted 50,000 workers on site, and looked at how we can get that down to 30,000. Clearly the way to do that is manufacture as much as you can off site. “We’re working closely with Saudi Amana, which make prefinished ‘boxes’ and they can be entirely fabricated – from staircases to service ducts and lift shafts. You put all the components together like lego.” Off-site manufacturing, involving timber, has also been evident with the first of its two hotels opening next year. “It’s all delivered to us flat-packed and you can have a villa up within a week. There is no cutting or adjustments on site. The more we can bring in that’s largely completed, and use finishing trades to put together, the more we can reduce the footfall on the islands.” 114

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10,000+ workforce onsite +

1,500+

corporate employees

THE RED SEA DEVELOPMENT COMPANY

TRSDC TARGETS LEED PLATINUM STATUS While TRSDC is using ‘green concrete’ and trying to source low-carbon cement, it is also quarrying a volcanic ash locally for use in construction, and to reduce its carbon footprint. “We want to be LEED Platinum, Gold is our fall-back position, and Silver will be minimum,” he said. “Everyone goes on about the premium – but I’m not sure it is, if you design it correctly and pay attention to your material selection.” Power is another intriguing aspect. The project is off-grid with no connection to Saudi water or electricity authority (ACWA Power leads the consortium who won the contract). Two major solar farms on the coast will generate 2MW in the first phase, and battery is the nighttime power source. “We also have a ‘zero discharge’ policy. The archipelago is a complex mix of sea and fresh water, with different saline contents. Effectively we’re taking the salt from the sea and putting it back, so you’ve got to do ‘depotion discharge’.” Solid waste has to be removed by ship, and a construction waste management plant has been built. “The advantage is there is no existing development or having to work within an established infrastructure. We’ve created the infrastructure and eco-system, so we can control our destiny more.”

“ We have total visibility on the entire supply chain and immerse ourselves with BIM360” IAN WILLIAMSON

CHIEF PROJECT AND DELIVERY OFFICER, THE RED SEA DEVELOPMENT COMPANY

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THE RED SEA DEVELOPMENT COMPANY

“Pod technology is also getting really advanced and the Saudis are great at precast panels, but I think it will go a step further, as materials become more refined. “We’ve just done a 100-metre borehole on one of our islands. Typically we take 20-25m samples for geotechnical studies, to analyse the substructures, but we needed to do a core structure which was interesting.” Williamson said TRSDC is committed to building a ‘smart destination’, built around enhancing the guest experience and operational efficiencies. Luggage will be transported straight from the purpose-build airport to guests’ rooms. New technologies are constantly being courted, but it hasn’t found a way of using 3D printing yet on site. What is clear is that from the F1 tracks to the Red Sea islands, Saudi Arabia is entering 2022 in top gear.

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The QUEST for

sustainable

solutions for last-mile delivery

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SOURCING

The last mile-delivery sector sees a heavy spike in demand during the pandemic, and it comes with the cost of greater emissions from the busy fleets WRITTEN BY: BLAISE HOPE

ast Mile is defining our world — a world in which the same devices that are used to direct global delivery networks are also used to consume on-demand media and e-commerce home deliveries. Globally, e-commerce sales grew threefold from US$572bn in 2010 to some US$3.5tn at the end of 2019. During the pandemic, this growth accelerated — the United States, for example, saw a decade's worth of growth in just three months. Due to this, logistics providers are struggling with increasing volumes of goods, and their last-mile delivery systems are under the spotlight. As delivery steadily rises, so do emissions. Companies worldwide are trying to find solutions, particularly those involved in the last-mile delivery business. Take logistics company DHL, for example, which operates in almost every single country in the world. Due to its broad existence, it delivers to more places and countries than any other logistics company globally. "We do that with pickup and delivery vans, motorcycles, and bicycles. We have several hundred walking couriers in places like Hong Kong and Shanghai, as well as dense urban environments. We relentlessly focus on quality and on-time delivery for our customers. We have a target to deliver basically between any two points on the sustainabilitymag.com

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“ There's a massive opportunity globally to really educate the market about the sustainability element” ADAM RIDGWAY CEO, ONEMOTO

planet with 96% on-time delivery or better. And typically, we achieve that target," says Ben Gesing, Director of Global Ground Operations Innovation of DHL Express. The company has well over 200 dedicated aircraft and partners with several airlines to add another 500 planes to carry DHL express shipments to many destinations every day. Despite this traffic volume, DHL boldly made a solid commitment to its sustainability agenda. "In addition to our commitment to

sustainable aviation fuel, which is investing 7bn into clean operations by 2030. We have a very specific target around the green last mile and that is to allow the electrification of 60% of our last-mile delivery vehicles by the year 2030," says Gesing. The plan applies not only to DHL Express but also across all divisions of the DHL Group, including its Post & Parcel Germany Division, which is the biggest last-mile operator of the group. So far, DHL has electrified about 7% of its last-mile delivery fleet, and 2% of its deliveries are carried out by walking couriers or bikes, making just under 9% of DHL's last-mile operations carbon-neutral. sustainabilitymag.com

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"One could say nearly 1 in 10 deliveries that we make today are done with a carbonneutral method in the last mile," Gesing says. "We're just getting started. There's a long way to ramp-up in the next couple of years, and we're working towards that every day in both countries and regions. This means buying more electric vehicles to get more charging infrastructure out there and, most important of all, training our people. I think it's really transformational in terms of how we operate, but there is also a series of incremental steps." Easy, sustainable and affordable solutions EV Dynamics, a pioneer of new energy vehicles and integrated technology solutions, has introduced two different last-mile delivery solutions, which are 6.5-metre and 7.5-metre vans. "We wanted to make a very light van, and we wanted another one that holds a little bit more weight — 7.5m with four wheels on the back. We already have a few units

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of those in Spain under operations, as well as in Germany," says Miguel Valldecabres Polop, Chief Executive of EV Dynamics. The company provides tailor-made solutions for each operation of its clients, such as the one they created for Bimbo Bakeries USA, the owner of Sara Lee bakery in Mexico. On top of making light vans for the company, EV Dynamics also developed two different solutions with two different battery packs and two different cooling systems to adapt to the climate and terrain. "We already start to see that there are people willing to invest in the industry at a micro-scale. The cost of running an electric

SOURCING

vehicle is up to 10 times cheaper than a combustion car, so the whole business model makes a lot of sense," says Polop. "There are different solutions. For the last-mile delivery solution, you gotta go into the lithium battery pack — to have a hydrogen fuel cell, that makes no sense, that's for long distances highways, super heavy tracks, but for last night delivery solutions, a hundred per cent, you need an electric vehicle solution." "When people say, well, there's no charging infrastructure, that's correct, but you do not need fast-charging infrastructure just for that. You don't need that. It's not

“ Couriers often get lost looking for correct entrances, loading bays, or safe places. They waste time and fuel and emit more CO2” CHRIS SHELDRICK

CO-FOUNDER AND CEO, WHAT3WORDS

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necessary. You can charge overnight on AC very cheaply, and that should be more than enough. And we've seen that in Brazil, in Chile, in Argentina and, of course, in the Philippines." One Moto, an electric vehicle startup from Dubai, United Arab Emirates, offers different solutions that focus on the last-mile delivery motorbikes and delivery bands. "In the UAE, cycling became a big, fastgrowing sport over the pandemic," says Adam Ridgway, CEO of OneMoto. "There's a massive opportunity globally to really educate the market about the sustainability element and the fact that motorcycles are obviously not offering a positive solution." According to Ridgway, motorcycles create 16 times more pollution in their first year of life and 50 times more in their second year when compared to SUVs and buses. OneMoto offers multiple electric vehicle forms depending on market need and demand, providing transitions and evolutions to companies such as logistics and supermarket chains. "Not only do we offer vehicles, but our vehicles are considered a smartphone on wheels — meaning they can improve the health, safety, and welfare of the delivery riders. Because of the app for fleet management perspective, it allows them to optimise their fleets," says Ridgway. "For the riders, we gamify sustainability to some extent. So, if you have travelled 30,000 green kilometres, then we're working with various entities to offer sustainable credits. And then you have the private rider as well." With this model, the vehicles allow the company to optimise their business model and share information with the governments so they can make policy changes or regulatory changes regarding the last mile sector. 124

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“ We have a very specific target around the green last mile, and that’s the electrification of 60% of our last-mile delivery vehicles by the year 2030” BEN GESING

DIRECTOR OF GLOBAL GROUND OPERATIONS INNOVATION, DHL EXPRESS

SOURCING

Tackling sustainability through Last Mile delivery efficiency Bringing efficiency to deliveries is what what3words is all about. The company has developed a system to encode geographic coordinates. It has mapped the entire world in unique combinations of three words for every three-metre square. Based in London, the solution has been popular for e-commerce and delivery, navigation, and emergencies. It has the potential to revolutionise some industries and some parts of the world "Our technology enables businesses to be found easily, makes it easier for aid to be delivered and offers a ready-made, inexpensive infrastructure for governments," says co-founder and CEO Chris Sheldrick. The system is now available in 50 languages, meaning five billion people in the world can use what3words in their native tongue. It is being used by over a thousand businesses in over 193 countries as of date, from Mongolia to Korea, China, the Middle East and South Africa.

"When it comes to delivering goods, companies around the world all face the same global challenge, and that's imprecise addressing," says Sheldrick. "Couriers often get lost looking for correct entrances, loading bays, or safe places. They waste time and fuel and emit more CO2. However, when a customer provides a what3words address, the accuracy of the location information is instantly improved." Many businesses all over the world are already using what3words for efficient and seamless deliveries — including DPD UK, Evri (formerly Hermes), APG Ecommerce, Aramex, and DB Schenker. In 2020, Mercedes-Benz and DPD carried out a delivery test using what3words addresses, resulting in a 15% efficiency gain. Another series of tests in Dubai demonstrated that using what3words addresses improved delivery speeds by 42% and reduced the total distance travelled by drivers by 22% compared to more traditional navigation.

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SOURCING

“ The cost of running an electric vehicle is up to 10 times cheaper than a combustion car, so the whole business model makes a lot of sense” MIGUEL VALLDECABRES POLOP CHIEF EXECUTIVE, EV DYNAMICS

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Expanding what Last Mile means in the future Delivery is not the only application or meaning of the concept of the Last Mile. Penthera Partners is a US-based SaaS solutions provider that promises to revolutionise the potential of download and, by extension, related viewing experiences for consumers. It focuses on leveraging the power of download to eliminate last mile issues — specifically, the final distance between the end of a Content Delivery Network's reach, often at a cell phone tower, and the user’s device. "One of the benefits that we have seen in Download is that it cuts CDN power usage and cost when the asset is watched multiple times," says Brian Kline, Penthera's President. "For verticals like fitness, education, and children's content, where users tend to watch the same asset repeatedly, this can be a significant saving to the publisher, and this reduces emissions via data centres and telecom networks." Gesing from DHL emphasises that, although it is important to start transitioning to electric vehicles soon to be truly carbon neutral, there are other complementary elements to be built as well. "There's no point in electrifying the vehicles and buying EVs if you're filling them with dirty electricity," he says. "Those are the two things that we wake up everyday thinking, ‘How do we get the vehicles green?’ And then, looking at the infrastructure, ‘How do we make that green as well, so that we really have truly clean operations?’"

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LEADER IN

SUSTAINABLE

BEVERAGE PRODUCTION WRITTEN BY: GEORGIA WILSON

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PRODUCED BY: TOM LIVERMORE

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ASAHI BEVERAGES

David Baxter, Group GM of Direct Procurement, Asahi Beverages, breaks down the company’s approach to sustainability and maintaining resilience during COVID-19

avid Baxter’s career journey in the beverages industry began over 20 years ago, working for Southcorp Wines in supply chain planning. Following this, Baxter worked for many beverage companies - including Foster’s Group, Carlton & United Breweries, and Treasury Wine Estates - before joining Asahi Beverages. Today, Baxter is the Group General Manager of Direct Procurement of Asahi Beverages. “I could not think of a better industry to work in,” says Baxter. He adds: “I'm responsible for leading an incredible team whose core role is to identify, contract, and manage suppliers to meet Asahi Beverages’ manufacturing requirements.” Being the leading beverages company in Australia and New Zealand, Asahi Beverages produces quality alcohol and non-alcohol beverages. “We have a strong portfolio of established household brands, as well as innovative new products,” says Baxter.

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He adds: “Our company's vision is to bring enjoyment and connection to everyday moments in life.” In the last two years, Asahi Beverages has evolved significantly. Its acquisition of Carlton & United Breweries scaled the company, making Asahi Beverages the leading beverages manufacturer in Australia & New Zealand. “Our footprint literally

“ OUR COMPANY'S VISION IS TO BRING ENJOYMENT AND CONNECTION TO EVERYDAY MOMENTS IN LIFE” DAVID BAXTER

GROUP GENERAL MANAGER OF PROCUREMENT, ASAHI BEVERAGES

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doubled in size to produce more than two billion litres a year,” says Baxter. Asahi Beverages and its approach to sustainability As a market leader in the beverage industry, Asahi Beverages is committed to ensuring Australians and New Zealanders are enjoying and connecting with its products in a sustainable way that protects the planet. Baxter says: “We have some key strategic initiatives that we've put in place. As a market leader, we feel it's imperative to lead on sustainability and set key targets to not only protect our planet, but in a way that also grows our business and shows the world that we are leaders in sustainability.” Following its acquisition of Carlton & United Breweries, Asahi Beverages began to grow significantly overnight. Due to its portfolio, volume and spend the challenge for Asahi Beverages was to become one team. “We did remarkably well,” says Baxter 132

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He adds: “Due to COVID-19, most of the transition occurred within a virtual environment, but we are very fortunate to have a young and dedicated team of procurement professionals focused on implementing and delivering key strategic initiatives that meet our Mid-Term Plan and have a huge positive impact on delivering our sustainability goals.” This year, Asahi Beverages has been working on a number of sustainability initiatives including its barley programme, raspberries programme, and packaging strategy. Baxter says: “Developing our barley programme gave us oversight into the growing process to ensure the best quality barley is used in our beers. This programme allows us to track provenance of barley and gives us direct relationships with more farmers. “With this relationship, farmers have a direct link to our strict quality parameters,

DAVID BAXTER TITLE: GROUP GENERAL MANAGER OF PROCUREMENT INDUSTRY: FOOD AND BEVERAGE

EXECUTIVE BIO

LOCATION: AUSTRALIA Having been in the Beverage industry for over 20 years and working across Australia, Europe and the US, David Baxter takes pride in developing and sustaining strong strategic partnerships with all suppliers. Currently Procurement Group General Manager (Directs) for Asahi Beverages, Baxter leads a talented and dedicated team who is goals & results driven, and focused on sourcing the best ingredients, packaging and equipment that brings Asahi’s amazing brands to life. Baxter is also very passionate about sustainability and delivering on the targets Asahi have set themselves. Studying in both Brewing and Wine, Baxter has a good technical understanding that allows him to collaboratively work with internal and external stakeholders. Knowing the importance in developing and retaining talent, Baxter ensures he dedicates ample time in supporting his team. “In Procurement, everyone talks about building relationships with your suppliers, I think you should build your relationships with your team first”.

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“ DEVELOPING OUR BARLEY PROGRAMME GAVE US COMPLETE OVERSIGHT INTO THE GROWING PROCESS TO ENSURE THE BEST QUALITY IS USED IN OUR BEERS” DAVID BAXTER

GROUP GENERAL MANAGER OF PROCUREMENT, ASAHI BEVERAGES

and we can link on-farm practices to beer quality, and we can monitor other important factors, such as water usage, soil health and fertiliser usage to ensure we meet our sustainability targets.” Asahi Beverages has also adopted ambitious goals around sustainable energy. To help achieve this, it recently installed Australia’s largest solar project at their Australian brewery at Yatala in Queensland, with around 7,000 solar panels now harnessing the Queensland sun. Baxter says: “We will source 100% of our purchased electricity from renewable sources by 2025. We will then reduce emissions across our entire supply chain to net zero by 2050 - from the farmers who grow our ingredients through to our manufacturing sites and the vehicles that deliver our beverages. Making the decision to switch its current raspberry supply chain and start using locally-grown raspberries, Baxter explains the benefits: “We made the switch to Tasmanian-grown raspberries because of their quality, their more reliable supply and Asahi’s commitment to supporting Australian farmers.” He adds: “Asahi Beverages’ products are made with the best raw ingredients, so it really doesn’t get any better than sourcing fresh world-class produce while supporting local farmers.”

Finally, when it comes to Asahi Beverages’ packaging, the company is committed to designing its bottles, cans, and other vessels to be sustainable. Asahi Beverages has committed to making all its packaging 100% recyclable, reusable or compostable by 2025. Working with suppliers in possession of visions and goals that align with its own, Asahi Beverages works with multiple bodies where improving sustainable packaging is a core focus. Baxter says: “We have recently formed a cross-industry joint venture with Pact Group, Cleanaway Waste Management Ltd

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and Coca-Cola Europacific Partners to build and operate two PET recycling facilities, one in NSW and one in Victoria. These will massively boost Australia’s PET recycling capacity. They will help transform recycling in Australia by providing a new, local source of high-quality recycled PET which we’ll use in products like our Cool Ridge water bottles. This is a major step towards helping us deliver a truly circular economy. “Each facility will be capable of processing the equivalent of around 1 billion plastic bottles - collected via Container Deposit

ASAHI BEVERAGES

Schemes and kerbside recycling each year. This will be converted into more than 20,000 tonnes of high-quality recycled PET bottles and food packaging by each facility, which will use state-of-the-art sorting, washing, decontamination and extrusion technology. Both facilities are receiving Commonwealth funding while each is also receiving support from its respectiv State Government.” In addition, Asahi Beverages has recently switched all of its 450ml and 600ml soft drink bottles to 100% recycled plastic. Navigating modern challenges in the beverage industry Like the stories of so many other people, the last two years have been some of the most challenging times in Baxter’s career. “With global shipping delays, labour shortages, high

BEING BOTH SUSTAINABLE NATIONALLY AND INTERNATIONALLY Asahi Beverages, as part of the Asahi global network, is demonstrating massive benefits in conducting its sustainability initiatives globally. Baxter explains: “Operating on a global scale means that we can leverage experience and initiatives that have been executed in other Asahi regions. We can also share those learnings and implement them in our region.”

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“ WE FEEL IT'S IMPERATIVE TO LEAD ON SUSTAINABILITY AND SET KEY TARGETS TO NOT ONLY PROTECT OUR PLANET, BUT IN A WAY THAT ALSO GROWS OUR BUSINESS AND SHOWS THE WORLD THAT WE ARE LEADERS” DAVID BAXTER

GROUP GENERAL MANAGER OF PROCUREMENT, ASAHI BEVERAGES

commodity prices, changes to consumer preferences, and all during a pandemic it has definitely built up resilience. It also shows the importance of business continuity planning and strategic relationships in the supply chain,” says Baxter. In order to stay ahead of these challenges, Baxter says: “There is risk in everything we do, but it's about understanding the level of risk you and your organisation are comfortable with, and then ensuring clear communication internally and externally. “This limits potential surprises, and helps to incorporate robust business continuity plans allowing organisations to react with speed should an issue occur.” Asahi Beverages and its suppliers Asahi Beverages works with thousands of suppliers in order to conduct its operations. “It is our responsibility to ensure that we build on those relationships,” says Baxter. He adds: “We share our strategic initiatives with our suppliers so that they can be a part of our journey, to meet our goals, and to ensure a strong focus on quality. We need partners that can work with us long term, those who have similar sustainability goals and can bring innovative ideas to the table so that we can work collaboratively.” Operating within Australia and New Zealand, Baxter explains that the company’s distance from both Europe and the US limits the suppliers it can choose from, stating: “We need to make sure that we are developing relationships with the suppliers we do have. Ensuring communication while delivering on strategic plans so that not only do we grow as a business, but our suppliers grow, too.”

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TOP TOPTEN 10

BRANDS WORKING

HAND-IN-HAND WITH

SUSTAINABILITY

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TOP 10

PREVENTING THE CLIMATE CRISIS IS THE RESPONSIBILITY OF ALL, PARTICULARLY PRIVATE SECTOR BRANDS USED ACROSS GLOBAL HOUSEHOLDS DAILY WRITTEN BY: BLAISE HOPE

cross all industries, sustainability is becoming more fundamental to survival. Policymaking is one of the most preferred resolutions in the discussion. To achieve these massivescale goals, it’s all-hands-on-deck — meaning involvement from brands in both the public and private sector.

In no particular order, here is a list of the 10 brands whose companies have shown efforts towards sustainability. There are many, many more out there doing the work, including companies that house several huge brands; we’re just starting to scratch the surface of something bigger here.

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10 Nvidia

One of the world’s largest manufacturers of semiconductor chips, Nvidia is a renowned brand for graphics processing units and systems on chip units widely used in gaming, mobile, and automotive industries. The brand champions its sustainability practices. Nvidia has high power efficiencies — as high as 35% in its operations — and pledges to increase its renewable energy usage to 65% by 2025. For its mining process, the brand ensures that it is 100% Responsible Minerals Assurance Process-compliant.

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09 Apple

Apple, the magnum opus of American multinational company Apple Inc., is a brand of consumer electronics, software and online services. The brand has an ambition of becoming 100% carbon neutral by 2030 and, in its 2019 Environmental Responsibility Report, claimed to have reduced its carbon footprint by 35% over the previous three years. In its recent Environmental Progress Report, Apple reported that its over 100 suppliers have committed to using 100% renewable energy and to develop products with a lower carbon footprint, including using low carbon aluminium, reducing the use of fluorinated gases, and avoiding the use of conflict mineral, such as tin, tungsten, and tantalum.

TOP 10

08 Adidas

Adidas is one of the most sustainable global brands, being staunchly environmentallyaware before it was cool. In 2008, Adidas AG — its parent company — executed a programme called ‘Green Company’ that was aimed at minimising natural resource consumption, reducing waste, and achieving carbon neutrality. As of 2020, the company has reduced 55% carbon emissions, 48% water consumption, and 50% waste diversion, as well as 80% paper consumption. In addition, Adidas has also implemented environmental standards across its operations, resulting in ISO certification in Environmental Management.

07 Axe

Axe, also known as Lynx in several regions, is a brand of male grooming products owned by the British company Unilever. The global FMCG giant is committed to reaching net-zero emissions by 2039 and pledged to the 1.5°C climate change commitment, endorsing SBTi across its entire operation, including with Axe. The group is aiming to halve its use of virgin plastic by 2025, in line with many incumbent guidelines about plastic packaging released by governments worldwide. Axe is contributing to this by aiming for all of its packaging to either be fully recyclable or to at least include a percentage of recycled materials. sustainabilitymag.com

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06 Siemens

Siemens is a German technology giant, with a global impact felt across healthcare, infrastructure, and mobility solutions. Efficiency and resiliency are among its core tenets, so sustainability is a natural fit. Among the 17 SDGs highlighted by the United Nations for businesses to focus on, Siemens has already achieved five so far within its ecosystem.

H&M is a global fast-fashion giant that had its own sustainability breakthrough with the ‘Green Machine’, a technology that recycles cotton and polyester blends. This tech is aiding H&M in reaching the target of using 30% recycled materials on its products by 2025. Across the entire design process, H&M applies some key circular economy principles, with the most notable being the development of new materials that combine plastic, textile, and agri-waste.

TOP 10

Samsung Samsung, owned by South Korean multinational electronics corporation Samsung Electronics Co., Ltd., is a well-known gadget and home appliances brand. Samsung is invested in changing the use of plastic within the development of its products and packaging, instead refocusing on recycled paper and bio-based materials. Overall, the company aims to lower its carbon footprint. To achieve this goal, the brand is starting by using 100% renewable energy throughout its U.S. production and operational facilities. In terms of products, Samsung champions energy efficiency and circularity through offering refurbished and repairable products that can be easily recycled. The brand recently received two awards from the U.S. Environmental Protection Agency for the responsible recycling of e-waste and Sustainable Materials Management (SMM) product innovation.

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03 Cisco

Known for pioneering the connection of computers with local area networks via a multiprotocol router system, Cisco — run by San Josebased multinational technology conglomerate Cisco Systems, Inc. — is also known for its long-term goals to address the environmental impacts of its products and business operations. Cisco’s products are designed using up to 85% clean electricity from renewable resources. The brand successfully reduced 60% of both its Scope 1 and 2 direct and indirect emissions — it hopes to reach net zero by 2040. In the last five years, the company has implemented over 440 energy efficiency projects to reduce costs and emissions.

02 TOP 10

Vitasoy

Vitasoy, also known as Vita, is a beverage brand owned by the Hong Kong-based Vitasoy International Holdings Limited. The brand has been offering plant-based beverages since 1940, while also exploring different methods to manage its okara waste — or solid residue from soy milk production — with the promotion of circular waste systems.

The brand is also aiming to reduce both its emissions footprint and operational costs by committing to efficient usage of fuel, water, and electricity, as well as exploring the adoption of clean energy to reduce its environmental impact.

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TOP 10

SAINT LAURENT Saint Laurent — also known as Yves Saint Laurent or YSL — is a luxury fashion brand owned by French company Kering, which also owns several other major labels, such as Alexander McQueen, Gucci, Balenciaga, and Bottega Veneta. Kering is the only luxury corporation to make it on SG Analytics’ recent ‘Top 10 sustainable companies’ list, covered on our website.

Its parent company adopts SBTi and is the initiator of the Fashion Pact, a programme that aims to limit global warming, restore biodiversity, and protect the oceans via a coalition of companies across the fashion and textile industry. As such, YSL has introduced several green approaches to its manufacturing process, including sustainably sourcing many of its raw materials and encouraging circularity — starting with how the company reuses its leather offcuts.

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Magnús Kristinsson, CEO of atNorth DCs, on Investment and Growth 152

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WRITTEN BY: İLKHAN ÖZSEVIM PRODUCED BY: LEWIS VAUGHAN

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ATNORTH

atNorth CEO Magnús Kristinsson talks about their DC expansion into new markets and the investments and underlying vision that has driven AN’s evolution

tNorth was established back in 2009, and from its inception it has championed an entrepreneurial driving spirit. “We basically consider ourselves to be a startup company,” says Magnús Kristinsson, CEO of atNorth, “and in December 2021, we were acquired by Partners Group, which is one of the largest private market firms in the world. What this means for us is that we will need to find a new balance between the institutional and the startup spirit, as this move opens up many opportunities for us.” atNorth is the largest colocation Data Centre (DC) operator in Iceland, recognised for its high-density computing technology coupled with its dedication to sustainability. The DC company is headquartered in Reykjavik and already has several operations across Sweden, the Netherlands, Belgium and the United Kingdom - despite its early start-up ethos, its acquisition by Partners Group has bestowed atNorth with access to a completely different level of funding, set to further fuel its quickening expansion and growth. This is the quid pro quo that sustainabilityfocused and start-up-spirited DCs must make when such large investment is the key consideration. In fact, such a move provides opportunities to achieve goals that may have seemed long out-of-reach, but presently have become a reality that will, in all likelihood, see atNorth achieve goals that were not even possible for the DC company just a few short years ago. 154

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2009

Year Founded

50+

Number of Employees

$38mn

Revenue in USD

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“Our partner ecosystem is essential to us,” says Kristinsson, “since we are not a big organisation. We have a supply chain of key partners that we work with, and we would not be able to build our DCs, nor service our customers, without it.” Another one of atNorth’s key partners is Systemair, who they have been working with since 2019 and who provide their DCs with cooling systems and solutions in Iceland’s very cold climate. Kristinsson is an engineer and has been working in IT since the beginning of his career. Back then, he was a part of Advania - the company that eventually acquired atNorth in 2011. At the time, atNorth was a very small data centre, started by some pioneers that had already realised that DCs in remote locations such as Iceland - where the cold climate could be utilised and there was an abundance of renewable energy was a great idea, but the business model was just not working. “We then turned it around and made it into a very successful data company,” says Kristinsson. “At the time, I ran it as a business unit within Advania. But in 2018, I stepped in as full-time CEO, and the growth journey of atNorth really took off. Although I’m the CEO of atNorth, based out of Reykjavik, I spend a lot of time in Stockholm, where we’re building our first DataCentre outside of Iceland. The first atNorth site, which they acquired back in 2011, is built in an old printing facility. Given the size of the data and the footprint that they have today, it was a very small site with a capacity of approximately 3MW. Very soon after that, in 2014, they expanded into a new ’Megasite’ where they have access to 80MW running at 100% renewable energy, built on approximately 18,000 SQM of DC space. In 2020, atNorth 156

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started the construction of their first data centre outside of Iceland, in Stockholm. The inauguration ceremony of the DC was held in the first week of March, this year. atNorth has been and will continue to expand into areas outside of Iceland, providing ‘more compute for a better world’, as its slogan goes. Its ambitions are recognised throughout the global DC industry, and it occupies a strategic position

ATNORTH

MAGNÚS KRISTINSSON TITLE: CEO LOCATION: KÓPAVOGUR, CAPITAL REGION, ICELAND

“ Everything is changing in the world of digitalisation” MAGNÚS KRISTINSSON CEO, ATNORTH

EXECUTIVE BIO

Magnus has been the CEO of atNorth since January 2018. From 2010-2017, Magnus was MD of Managed Service for Advania, but atNorth was then a part of Advania’s Managed Service business. Before that Magnus worked for Vodafone in Iceland. Magnus holds a M.Sc. in Engineering from Technical University of Denmark (DTU) and a B.Sc. in Industrial Engineering from the University of Iceland. Magnus was born in Sweden 1976. A fact you may not know is that Magnus was a football referee in the Icelandic top division for years and has refereed in the Finnish, Danish and Norwegian leagues.

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ATNORTH

“ Our partner ecosystem is essential to us” MAGNÚS KRISTINSSON CEO, ATNORTH

in the DC space, having an early vision that would eventually see its successes recognised and its potential endorsed by the approaches of investors and partners from all over the business world. “Since our inception, we’ve basically been focusing on high-density workloads,” says Kristinsson, “as well as aiming for low latency requirements, workloads in HPC (High Performance Computing), Artificial Intelligence, Deep Learning and Natural Language Processing.” atNorth’s uniqueness doesn’t arise from one particular USP (Unique Selling Point) like many other DCs - or even companies in general, for that matter.

“I think that what makes us different from other DC companies rests on a whole set of attributes. One of the most important, of course, is our fundamental sustainability focus. All our DCs are built out of materials that are as sustainable as possible. We use renewable energy only, and our DCs are designed with energy-efficiency in mind from the outset. On top of this, our market focus is on workloads that need high rack density and use a lot of electricity. “One of the main things that sets us apart is that as operators, we are born in IT and don't come from real estate, as many DC operators do. That means that flexibility and the creativity to bring a project to fruition is a central part of our thinking. We also understand that time-to-market is key for our customers, so we are strongly solutions-focused. We not only provide housing for computers - as many other DCs do - but we actually build the computer clusters for our clients, and if needed, we operate them as well.” atNorth partly provides traditional column high-density racks, but also low-density, too, with all the required ancillary services and, given their flexible nature, can even do buildto-suit projects on their own campuses. Many of their customers, especially those that are using a lot of electricity for computational workloads, want mixed-tiering, which essentially means mixed-redundancy. They may want lower redundancy for the computational workloads for instance, and higher redundancy for net and storage, and atNorth can, and do provide this service. On top of all of this, atNorth is able to procure, build and operate the computer clusters that their customers would typically host in their DCs. “We are highly flexible,” says Kristinsson, “and are able to cater solutions for very specific client needs all across the spectrum.” sustainabilitymag.com

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Flexibility is more central to DC companies than is obvious at first glance, especially when it comes to those who cater for fit-outs and customised or madeto-order services such as those provided by atNorth. This flexibility and diversity of needs can be from a physical or digital point of view. Mixed-latency requirements is just one example of how bespoke a client's requirements may be. This flexibility may present in many forms, and a DC company that possesses it, along with its parent attribute, creativity, is far more likely to achieve a certain level of success. The important point is that a client's needs in the DC space can be as varied as business culture itself. The current demand for atNorth’s services is higher than they’ve ever seen before. This means that they are building-out, based on the same principles, in highly flexible and modular data centre buildings. 160

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ATNORTH

“ The future of the Industry will be marked by major growth in Sustainability, AI, deep-learning and High Performance Computing” MAGNÚS KRISTINSSON CEO, ATNORTH

“We already have two DCs in the SouthWest and are currently very busy expanding our DC footprint, building a new site in the North of Iceland,” he says. “Sustainability is at the core of our value proposition; our data centres in Iceland are built on completely renewable energy. There is no other entity even on the grid in Iceland, which is exceptional. I think it's the only country in the world where you can find such conditions and although we already have access to all this renewable energy, we have still been designing our Data Centres so that they use even less energy than all other DCs do. We also select all the building materials very carefully, with the objective of reducing the carbon footprint of our buildings.”

We run on

100%

renewable energy

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“ We use renewable energy only, and our DCs are designed with energy-efficiency in mind from the outset” MAGNÚS KRISTINSSON CEO, ATNORTH

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ATNORTH

With ever-expanding connectivity demand and supply, big data, the push caused by COVID lockdowns, and an expeditiously evolving technological environment in general, the DC industry is quickly becoming one of the most in-demand technologies in the world. Then there is the concern about a seeming internal tension between such energy needs and a rising consciousness of the need for environmental protection and cultivation. “Everything is changing in the world of digitalisation,” says Kristinsson. “Our customers need to engage with partners that can provide them with the flexibility to cope with the rapidity of these developments, but also with the increasing demands that they have for sustainable solutions.” Asked what the next 12 to 18 months look like for atNorth, Kristinsson says: “We will be very busy onboarding new customers, due to accelerating demand, while also fitting out new spaces for our existing customers and finding and constructing new sites for our DCs.” In-line with this ever-increasing demand, atNorth is seeking to even further expand with a 50MW megasite in the Nordics, that will use 100% green electricity from renewable sources, making it one of the most sustainable and costefficient wholesale data centres ever built. Kristinsson concludes: “The future of the Industry itself will be marked by major growth in Sustainability, Artificial Intelligence, Deep-Learning and High Performance Computing which is the main driver of demand in our space.”

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