Sustainability - October 2023 by Energy Digital

October 2023 sustainabilitymag.com

Sustainable Technology Companies STACK INFRA: Leaders in driving ESG, growth and community relations

THE INTRINSIC LINK BETWEEN

CLIMATE CHANGE & THE WATER CRISIS Ecolab’s Emilio Tenuta discusses the critical nexus between the water crisis and climate change, urging businesses to prioritise taking action CONVERA

SCHNEIDER ELECTRIC

RADISSON HOTEL GROUP

THE TOP 100 COMPANIES IN SUSTAINABILITY Discover the companies leading the way, setting the pace and inspiring global business change.

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The Sustainability Team EDITOR-IN-CHIEF

TOM SWALLOW EDITOR

CHARLIE KING CHIEF CONTENT OFFICER

SCOTT BIRCH

HEAD OF DESIGN

ANDY WOOLLACOTT LEAD DESIGNER

SAM HUBBARD SENIOR DESIGNERS

SAM HUBBARD REBEKAH BIRLESON

FEATURE DESIGNERS

MIMI GUNN SOPHIE-ANN PINNELL HECTOR PENROSE JULIA WAINWRIGHT VICTORIA CASEY ADVERT DESIGNERS

CALLUM HOOD DANILO CARDOSO ADRIAN SERBAN VIDEO PRODUCTION MANAGER

KIERAN WAITE

SENIOR VIDEOGRAPHER

HUDSON MELDRUM

DIGITAL VIDEO PRODUCERS

ERNEST DE NEVE THOMAS EASTERFORD DREW HARDMAN SALLY MOUSTAFA

PRODUCTION DIRECTORS

GEORGIA ALLEN DANIELA KIANICKOVÁ

PRODUCTION MANAGERS

JANE ARNETA MARIA GONZALEZ YEVHENIIA SUBBOTINA KENDRA LAU

MARKETING MANAGER

LAUREN HAYES

PROJECT DIRECTOR

JONATHAN MOORE MEDIA SALES DIRECTOR

CHARLIE MCGILL

MANAGING DIRECTOR

LEWIS VAUGHAN CEO

GLEN WHITE

FOREWORD

SUSTAINABILITY GARNERS CLEAR ADVOCACY AND COMMITMENT Reminiscing on the past month, we’ve shared some great moments with our audience and contributors who attended the third instalment of Sustainability LIVE London. The breadth of industries coming together under this one vital umbrella showcases corporate commitment to action, collaboration, and growth. We’re looking back on the two-day hybrid event , which is but a blip in the overall transition of society—yet a major step encouraging climate advocacy, corporate responsibility, and social prosperity. These themes, and many more, carry through to this October publication, harnessing the power of leadership in bringing down climate change and raising up employees as diverse individuals with equitable opportunities. An all-encompassing mindset is required to fully understand the challenges faced and the resources available to develop an innovative approach. It’s an exciting time to be talking about sustainability! SUSTAINABILITY MAGAZINE IS PUBLISHED BY

TOM SWALLOW

tom.swallow@bizclikmedia.com

sustainabilitymag.com

CONTENTS UPFRONT

014

020

014 INTERVIEW WITH Evelyne Saelens

020 LIFETIME OF ACHIEVEMENT Inger Andersen

026 TOP 10

Sustainable technology companies

026 000 8

October 2023

OCTOBER2023

038

FEATURES 038 STACK INFRA

Leaders in driving ESG, growth and community relations

058

058 ESG

The intrinsic link between climate change & the water crisis

078

066 CONVERA

Are you ready for 2024?

078 DIVERSITY & INCLUSION

Unconscious Bias: A silent threat to workplace diversity sustainabilitymag.com

THE TOP 100 COMPANIES IN SUSTAINABILITY READ NOW

OCTOBER2023 FEATURES 086 SCHNEIDER ELECTRIC Schneider Electric provides sustainability leadership

086

100 NET ZERO VMware: Mobilising sustainability solutions 108 RADISSON HOTEL GROUP Promoting sustainable travel with Radisson Hotel Group 124 SUPPLY CHAIN The power of responsible sourcing 134 EVENT REVIEW Sustainability LIVE London recap

108

134

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The Portfolio

portfolio

o ad WORK WITH US

INTERVIEW WITH...

EVELYNE SAELENS UL Solutions’ Evelyne Saelens discusses the crucial link between ESG and data capture

EVELYNE SAELENS TITLE: ESG ADVISORY LEAD COMPANY: UL SOLUTIONS INDUSTRY: I NTERNATIONAL TRADE AND DEVELOPMENT LOCATION: GERMANY As an ESG Advisory Lead at UL Solutions, a global leader in applied safety science, Evelyne Saelens started her journey with the company as a carbon data consultant eight years ago. She works with organisations of all sizes and across industries to help them navigate their ESG and carbon reporting challenges, assisting as they develop effective strategies, processes and systems for managing all dimensions of ESG reporting, from ESG materiality to meeting net zero goals.

October 2023

Q. WHAT DO YOU THINK COMPANIES ARE GETTING WRONG WHEN IT COMES TO ESG REPORTING AND DATA CAPTURE?

» Many companies have a preconceived

notion that an ESG programme must be perfect from the start. That’s not the case. You can recognise you have gaps and document where those gaps are, and then tackle them step by step. It’s okay to have uncertainties — that doesn’t mean your programme or performance is sub-par — as long as you are transparent about them and document them. The most successful ESG programme are based on an iterative approach to scale up processes and eventually plug those initial gaps. For instance, a major manufacturing company with many sites may believe it has to report on ESG key performance indicators (KPIs) from every site right from the beginning. Instead, they can start with their top manufacturing sites and add other sites later; the important piece is a path to improve the reporting. It comes down to accepting that no business will be perfect from day one. It’s all about getting to a place where you can document steady progress in a pragmatic

“ I BELIEVE THAT ESG DATA CAN ULTIMATELY HELP BUSINESSES INCREASE THEIR VALUE”

sustainabilitymag.com

October 2023

INTERVIEW WITH...

Q. WHAT ARE THE MAIN CHALLENGES THEY ARE FACING?

» The biggest challenge is stakeholder

way that aligns with the respective standards and remains agile and processfocused along the way. Many companies approach ESG reporting as a one-off exercise, which is generally a misguided approach. These organisations don’t focus enough on the process and efficiency side of their ESG KPIs — concentrating instead on a lot of manual exercises to get the year’s report over the finish line and then leaving it to rest until the next year. Companies need recurring data collection and a workflow process to continually improve data and performance. For instance, as the current CDP (formerly the Carbon Disclosure Project) reporting period is winding down, now is the time to begin to gear up and build a process for next year’s disclosure period.

engagement. In order to be successful, an ESG programme should be an organisational effort. ESG reporting needs to be embedded in the company’s values. There needs to be a sense of ownership established across the organisation so that it’s clear how different roles contribute to the overarching programme. It’s procurement, human resources, facilities management and so on. Establishing responsibility and accountability across all business functions is paramount. Some of the most successful approaches to stakeholder engagement come from the top down as well as the bottom up. That means that C-Suite leaders are vocal about the company’s commitment to these programmes and that employees are encouraged to mobilise and play an active role in shaping the programmes and bringing new ideas to the table.

Q. WHAT CAN BUSINESSES DO TO BETTER TRACK AND MANAGE SCOPE 3 EMISSIONS?

» A key KPI in many ESG programmes

is carbon emissions, and more specifically, the focus on value chain or Scope 3 emissions. Scope 3 presents a significant challenge to a lot of companies as they’re tasked with dealing with data, activities and stakeholders in their supply chain that they’ve traditionally had very little visibility into. sustainabilitymag.com

INTERVIEW WITH...

“ THE BIGGEST CHALLENGE IS STAKEHOLDER ENGAGEMENT. IN ORDER TO BE SUCCESSFUL, AN ESG PROGRAMME SHOULD BE AN ORGANISATIONAL EFFORT” The first and most essential thing a company can do is gain an understanding of what is important in its own value chain of emissions so it can really focus on the carbon hotspots. There are screening tools out there that, with fairly limited data input, can point you in the right direction. Even if it’s a little rough around the edges, this is perfectly acceptable to get a first picture of your value chain emissions. The second step is building relationships with external stakeholders, as that’s where most Scope 3 data come from. One way to encourage your external partners is to share your emissions information, enabling greater transparency in your efforts to engage suppliers. This also lays the groundwork to align more closely with partners to build a common understanding and shared accountability, transparency and management in the supply chain.

I would love to see more industries coming together to create shared platforms to tackle this challenge, because, their value chains are shared. In fact, this is already happening in industries like manufacturing and pharmaceuticals. The more exchange of information, the better, and it’s really exciting to see some of this collaboration already taking shape. Finally, when it comes to managing and reporting Scope 3 data, adopting a robust software system that can cater to all 15 categories of Scope 3 emissions will play a big part in the overall programme management and disclosure experience.

Q. HOW CAN ESG DATA HELP BUSINESSES MAKE MORE SUSTAINABLE BUSINESS DECISIONS?

» I believe that ESG data can ultimately

help businesses increase their value. Again, it’s about understanding what data are most important to the company and the industry and how that can drive the company’s decisions. That goes back to embedding ESG into a company’s DNA. It’s more than just making decisions from a sustainability perspective; it’s doing so from an overall business value creation perspective. For instance, through our work with a leading US health plan provider, the company reduced energy use by 8%, saving $19.6 million (USD) annually. That kind of reduction is good for business and the environment. In short, for many businesses, looking at ESG factors can help mitigate risks, uncover new business opportunities and help reduce costs. sustainabilitymag.com

LIFETIME OF ACHIEVEMENT

INGER AND ERS EN

As Under-Secretary-General of the United Nations and Executive Director of the UN Environment Programme, Inger Andersen has dedicated her life to transformative environmental practises

nger Anderson has spent her life working to make a difference as an environmentalist, humanitarian, and trailblazer in the global fight against climate change. Earlier this year, the Danish leader’s second term as Executive Director of the United Nations Environment Programme was confirmed, having assumed the position in 2019. Humanitarianism at the heart of environmentalism Her journey to the United Nations (UN) started, however, in teaching — in 1982 Anderson moved to Sudan to pursue a career teaching English. It was here that the foundations of her future in international development economics, environmental sustainability and strategy and operations began, when she joined SudanAid, the development and relief arm of the Sudan Catholic Bishops’ Conference in 1985. Her work as an advisor over the next few years focussed on famine, drought relief, and rehabilitation, and took her to the UN. In 1987, Anderson moved to the US to join the UN as a Programme Manager in Drought and Desertification before becoming a Global Environment Facility Coordinator for the Arab Region. Three decades of global environmental impact From 1999 to 2014, Anderson held several leadership positions at the World Bank including Vice President

of the Middle East and North Africa; Vice President for Sustainable Development and Head of the CGIAR Fund Council. The World Bank Group and the UN have a treaty-based relationship that dates back to its founding, and through that relationship, works to build a partnership that supports Member States and contributes to effective development outcomes while preserving the distinct mandates of each institution. Her work at the World Bank was internationally impactful in areas including agricultural productivity and enhancing food security, infrastructure

“ Human ingenuity wants to keep inventing new things without looking at what it does to the environment. And so the work of the proactive environmental movement is never done” sustainabilitymag.com

LIFETIME OF ACHIEVEMENT

investment, climate change resilience, green growth, social accountability, disaster risk management and culture and development. The Consultative Group on International Agricultural Research — or CGIAR as it is known — is a global research partnership for a food-secure future dedicated to transforming food, land, and water systems in a climate crisis. Anderson oversaw the creation of the multi-donor trust fund that finances CGIAR research guided by the Strategy and Results Framework, The CGIAR Fund, which is now part of the CGIAR System Council. As Head of the CGIAR Fund Council, Anderson managed allocations across the CGIAR spanning 89 countries, including its 15 top-class research centres, 3,000 partners (including national governments, academic 22

October 2023

institutions, global policy bodies, private companies and NGOs) and 770,000 germplasm accessions. Over the past decade, the CGIAR has improved climate resilience in farming communities in 21 countries through the establishment of climate smart villages which test and scale resilient food system innovations. Using innovative, accessible strategies to unite environmental and humanitarian issues — such as the development of climate smart technology to reduce poverty — is a key, consistent theme in Anderson’s career. Uniting the world: The UN Environment Programme For over 50 years, The United Nations Environment Programme (UNEP) has worked with governments, civil society, the private sector and UN entities to

address humanity’s most pressing environmental challenges — from restoring the ozone layer to protecting the world’s seas and promoting a green, inclusive economy. UNEP is the leading global authority on the environment, working to inspire, inform, and enable nations and peoples to improve their quality of life without compromising that of future generations. UNEP is driving transformational change on the triple planetary crisis: • Climate change • Nature and biodiversity loss • Pollution UNEP’s work is focused on helping countries transition to low-carbon

and resource-efficient economies, strengthening environmental governance and law, safeguarding ecosystems, and providing evidence-based data to inform policy decisions. As Executive Director, Anderson leads the organisation in supporting its 193 member states to achieve the Sustainable Development Goals and live in harmony with nature. Notably, she has been a defining voice in brokering the legally binding agreement to end plastic pollution by 2024, as agreed by 175 nations. “This is the most significant environmental multilateral deal since the Paris accord,” Anderson said of the agreement. “It is an insurance policy for this generation and future ones, so they may live with plastic and not be doomed by it.” sustainabilitymag.com

Events Programme

6 - 7 Sept 2023

26 - 27 Sept 2023

11 - 12 Oct 2023

Business Design Centre London

Online

CONFERENCE & EXHIBITION

VIRTUAL EVENT

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Adam Elman Head of Sustainability EMEA Google

Musidora Jorgensen Chief Sustainability Officer Microsoft

Nick Jenkinson Managing Director Verto Solutions Ltd

Susan Spence VP, Sourcing Procurement & Accounts FedEx

2023 18 Oct 2023

8 - 9 Nov 2023

6 Dec 2023

Online

QEII Centre London

Online

VIRTUAL EVENT

CONFERENCE & EXHIBITION

VIRTUAL EVENT

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Geraint John P, Interos Resilience Lab Interos

Kate Rosenshine Director - Global Azure Technology Sales Microsoft

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

Sam Clarke Chief Vehicle Officer Gridserve

TOP 10

SUSTAINABL TECHNOLOG

From Deloitte to Microsoft and IBM to AWS, Sustainability Magazine explores how technology businesses are creating sustainable change WRITTEN BY: LUCY BUCHHOLZ

October 2023

LE GY COMPANIES

TOP 10

y combining technology and sustainability, global businesses are creating innovative solutions to address some of the world’s most pressing issues. By leveraging modern technology, many of the companies listed have set their own sustainability goals, while also supporting customers in their own journeys, too.

Through this Top 10, Sustainability Magazine explores how some of the world’s largest companies are utilising their technology platforms to create meaningful and lasting environmental change.

ffCorest omnimil lectoriae dempore rferum fuga. Ut eicae adistis quamus platatur? Qui omnihit autem accaturia sitiae doles elit eos sincius ditempo reptatur, ius, conseque duciunt emquae volest et fugia porem voluptatur magnis eatum que nobisci picium lab il minum volori vendae mil ea et ea voluptatiat explissum incto offici tes duscit aut od quo ommo berci quo bea autatquibus, quo et aut volupta tusapic idusandento quis is porerumquias rest quid maio. Name assum rem doloreictu. sustainabilitymag.com

TOP 10

10 Infosys

CEO: Salil Parekh

HQ: Bengaluru, India As a global leader in nextgeneration digital services and consulting, Infosys enables clients in more than 50 countries to navigate their digital transformation. The business aspires to be the leading sustainability partner to deliver ESG initiatives, by working with clients to understand, design and implement purposeful, practical and profitable solutions. In 2020, Infosys became carbon neutral – 30 years ahead of the timeline set by the Paris Agreement – and 44% of its energy needs are met through renewables.

09 Cisco Systems

CEO: Chuck Robbins

HQ: San Jose, California Having pledged to achieve net zero emissions across all categories by 2040, Cisco Systems Inc, otherwise known as Cisco, has made clear commitments to sustainability. Cisco also established an interim objective to attain net-zero emissions for global Scope 1 and Scope 2 emissions by 2025. Through the business’s most recent Purpose report, a number of sustainable milestones were noted, including the company’s substantial contributions to community programmes, which equal US$477m.

TOP 10

08 Accenture

CEO: Julie Sweet

HQ: Dublin, Ireland Accenture focuses on supporting businesses and clients to accelerate their sustainability journeys, by promoting implementing sustainable supply chains, setting and achieving net zero goals and utilising sustainable digital technologies, to name a few. The business’s sustainability strategy capability guides clients in defining their sustainability ambitions, building the business case and developing sustainability roadmaps. As a rapidly growing business, Accenture now employs approximately 721,000, representing a 15.54% increase from 2021.

07 Meta

CEO: Mark Zuckerberg

HQ: California, US

Social media platform Meta – which was previously known as Facebook – builds technologies that help people connect, grow businesses and find communities. By actively collaborating with stakeholders, Meta aims to promote inclusive solutions that contribute to the creation of a healthier planet, while envisioning an equitable transition towards a zero-carbon economy. Additionally, Meta works to foster partnerships while scaling up initiatives, to drive meaningful change while contributing to a sustainable future. sustainabilitymag.com

TOP 10

05 Deloitte

CEO: Joe Ucuzoglu

HQ: London, England

06 Oracle

CEO: Safra Catz

HQ: Texas, US With the goal of using 100% renewable energy by 2025 and achieving net zero emissions by 2050, cloud technology company Oracle provides organisations around the world with computing infrastructure and software to help them innovate and become more effective. Additionally, in 2021, 99.6% of retired hardware in 2021 were reused and recycled. Oracle also investis in sustainability innovations across industries to promote sustainability, including smart grids and smart cities.

For over 20 years, Deloitte has worked with organisations to make progress toward delivering sustainable value for their stakeholders, spanning investors, customers and business partners, to name a few. The firm works to support organisations to redefine their strategies, while embedding sustainability into their operations to enable them to accelerate the transformation of their organisations. Additionally, Deloitte combines sustainability technology with its decades of proven business capabilities, to drive progress on climate-led transformation.

TOP 10

Amazon Web Services CEO: Adam Selipsky

HQ: Washington, US Founded by Jeff Bezos in 1994, Amazon has become a pioneering force in the e-commerce and cloud computing industries, continuously pushing the boundaries of innovation. Officially launched in 2002, Amazon Web Services (AWS) offers more than 175 fully featured services from data centres worldwide, serving hundreds of thousands of customers across 190 different countries globally. By working with customers, AWS works to build sustainability solutions, including carbon trackers for energy conservation and waste reduction.

03 IBM

CEO: Arvind Krishna

HQ: New York, US As one of the oldest and most influential technology companies, IBM – otherwise known as Big Blue – has a focus on enterprise solutions, cloud computing, AI and consulting, while consistently pushing the boundaries of technology. The firm has also committed to making a lasting, positive impact on the world in business ethics, as well as the environment and communities across the globe. IBM also leverages technology to create more diverse, inclusive, and equitable communities, while also creating practices and policies to increase trust and transparency.

Google

CEO: Sundar Pichai

HQ: California, US

Having entered the third decade of committing to climate change, American technology business Google has demonstrated its dedication to climate action. The business is actively striving for net-zero emissions throughout its operations and the entirety of its value chain by the year 2030. This commitment is reinforced by a clean energy strategy, aiming to power its data centres and office campuses with round-the-clock carbonfree energy. What’s more, Google launched a sustainability strategy which revolves around three key pillars, spanning accelerating the transition to carbon-free energy and a circular economy; empowering individuals and communities through technology; and creating positive impacts for the people and places where Google operates. By actively focusing on these pillars, Google are committed to having a meaningfulimpact on global sustainability and promoting positive change for the benefit of society, its employees,and stakeholders. sustainabilitymag.com

TOP 10

THE TOP 100 COMPANIES IN SUSTAINABILITY Discover the companies leading the way, setting the pace and inspiring global business change.

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TOP 10

Microsoft Cloud for Sustainability

October 2023

TOP 10

Microsoft

CEO: Satya Nadella

HQ: Washington, US Founded by Bill Gates and Paul Allen in 1975, Microsoft is now one of the largest tech companies in the world, on a mission to empower every person and every organisation to achieve more. The company believes technology can and should be a force for good and that meaningful innovation contributes to a brighter world in the future and today. Some of the company’s most popular products include the Windows operating system, Office suite, Edge browser, Xbox gaming console, Surface devices, and Azure cloud platform, to name a few. What’s

more, Microsoft unveiled its sustainability commitments, outlining plans for fostering a more sustainable future in 2020. By 2030, Microsoft aims to achieve carbon negativity, removing more historical emissions than it has generated since its establishment in 1975. The tech giant also strives to be water positive by 2030, replenishing more water than it has consumed. Additionally, Microsoft aims to achieve zero waste across their direct waste footprint by 2030, as wellas actively working to protect and preserve ecosystems.

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LOGO

STACK INFRASTRUCTURE

LEADERS IN DRIVING ESG, GROWTH AND COMMUNITY RELATIONS WRITTEN BY: MAYA DERRICK PRODUCED BY: LEWIS VAUGHAN

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STACK INFRASTRUCTURE

STACK’s EMEA leadership team explores its growth over the last 18 months and how it’s hyper-focused on sustainability and creating positive relationships

elivering growth while maintaining a positive environmental and social impact is at the heart of STACK Infrastructure’s operations. As a leading global developer and operator of data centres, STACK provides digital infrastructure to scale the world’s most innovative companies. It’s acutely focused on doing so in an environmentally and socially positive way, through measures such as powering all facilities with 100% renewables, piloting innovative projects like heat reuse, and engaging relevantly with local communities. This is embodied by STACK’s EMEA Vice President of ESG, Michillay Brown. Proudly South African born and raised, she is motivated by the beauty and complexity of her homeland to drive change and make a real, positive impact. “Data centres are the foundations of the global digital landscape and building critical infrastructure with respect for our planet and its people is essential,” she says. “Sustainability strategies that deliver tangible results is something I’m incredibly passionate about.” Encouraging and inspiring the data centre workforce of the future Reducing carbon footprints, circularity principles and delivering benefits to communities is what drew Brown to the data

October 2023

From left: STACK’s Michillay Brown, John Eland, and Amy Daniell

“ OUR ESG AND DE&I PROGRAMS ARE PIVOTAL TO ENSURING WE PROVIDE A WELCOMING AND THRIVING WORK ENVIRONMENT FOR OUR PEOPLE” JOHN ELAND

CHIEF EXECUTIVE OFFICER, STACK EMEA

October 2023

centre industry and especially to STACK following a career in mining. Amy Daniell, STACK’s Senior Vice President of Strategy and Development in EMEA, shares how the industry has evolved at an exponential rate over the last 15 years, and that the scale of STACK’s projects never ceases to amaze her. Amid the growth, the company’s focus on sustainability and its workforce is also moving forward at pace. “Eight to 10 years ago, a big data centre in Europe was five or six megawatts,” Daniell explains. “Now, it’s more like 50 or 60 megawatts. It’s a very different scale. The key evolution is that we are reaching a talent saturation point in our industry, and we’re having to look to other industries for new talent.”

STACK INFRASTRUCTURE

JOHN ELAND TITLE: CEO, EMEA COMPANY: STACK INFRASTRUCTURE

The STACK team at the Milan Marathon

Daniell, who studied law and worked in construction before entering the data centre space, works closely with local schools to encourage young people from all backgrounds to consider careers in data centres and STEM subjects. But Daniell doesn’t work alone to shape the workforce of the future; across EMEA, STACK runs several local education programs with a range of benefits for students, from learning about and interacting with data centres, to internships and apprenticeships. Though STACK operates in three distinct regions – Americas, EMEA and APAC – John Eland, the Chief Executive Officer of the EMEA business, explains that client focus, speed, agility and excellence in delivery unite STACK worldwide.

John Eland is the EMEA Chief Executive Officer at STACK. He joined the company in April 2022 to oversee its expansion across the EMEA region. Prior to joining STACK, John served as Chief Strategy Officer of the Global Data Centres division at NTT Ltd where he led strategy and corporate development in existing and new markets. Early in his career, John served as the CEO of Data City Exchange, a modular data centre solution innovator. From there he transitioned to the investment side of the industry, joining AXA Investment Managers in 2014 to oversee the deployment and management of AXAIM’s £1bn data centre investments programme.

Conscious Care™ When less is more We’re redefining energy resilience with cleaner solutions for individuals, businesses, and communities.

Maintenance program for KD Series™ generators Want to reduce your fuel consumption and carbon footprint without compromising reliability and your peace of mind? The Conscious Care maintenance program enables operators to exercise back-up generators at no load and extend the required interval to every four months. Driving down fuel and bank load expenses, while reducing sound and air pollutions, and overall greenhouse gas emissions. When it comes to making sustainable changes, sometimes less really is more. Discover how Kohler is fostering sustainable resilience within businesses and communities. Learn more about our initiatives and get in touch with us here:

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Kohler delivers power solutions to keep data centres on Lenaik Andrieux, GM EMEA & India of Power Systems at Kohler, explains why its production increase is paramount for enabling reliable energy for data centre businesses In a digital age where continuous power is non-negotiable, Kohler emerges as a beacon of reliable energy solutions for various sectors, from healthcare to the rapidly expanding data centre market. Kohler’s diverse portfolio ranges from kitchen and bath businesses to entertainment and golf. Yet, its heart lies in the power industry, offering engines, generators, switch gears, and uninterruptible power supplies (UPSs) globally. Lenaik Andrieux, GM EMEA & India, emphasises, “Power systems is really almost an energy insurance business. We are here to make sure that your line never goes off.” This dedication has led to a 30% production capacity increase, especially targeting the data centre sector. Beyond generators, Kohler’s switchgear segment stands out. As Andrieux explains, “Switch gears distribute energy effectively, ensuring it reaches the right spot in your process or organisation.” Kohler’s commitment goes beyond products; they deliver total power

solutions, a comprehensive approach covering design, execution, and long-term support. Sustainability is integral to Kohler. The company has slashed its carbon footprint by 60% using renewable fuels like Hydrotreated Vegetable Oil (HVO). Innovative programs like Conscious Care™ further demonstrate their eco-focus, aiming to reduce the operational maintenance activity hours of large power plants, hence the environmental impact. When questioned about challenges transitioning to HVO, Andrieux reassures, “It’s easy to substitute with the same parameters as GNR. As demand grows, supply will match.” Andrieux foresees Kohler making significant strides in the data centre realm. “We have a strong brand and take direct ownership of projects with our customers from start to finish,” he states. A cornerstone of Kohler’s success in the sustainability space is its many partnerships with companies and organizations that align with their vision. They value collaboration with other entities when it is firmly rooted in trust as well as technical expertise.

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STACK INFRASTRUCTURE

Heat reuse pipes at a STACK data centre

“ DATA CENTRES ARE THE FOUNDATIONS OF THE GLOBAL DIGITAL LANDSCAPE AND BUILDING CRITICAL INFRASTRUCTURE WITH RESPECT FOR OUR PLANET AND ITS PEOPLE IS ESSENTIAL” MICHILLAY BROWN

VICE PRESIDENT, ESG, STACK EMEA

October 2023

“We want to ensure that STACK resonates with people, both inside and outside the industry, for the right reasons,” Eland shares. “Our ESG and DE&I programs are pivotal to ensuring that we not only strive to deliver excellence in data centre development and operations, but we also provide a welcoming and thriving work environment for our people along with developing strong connections with the communities in which we operate.” Giving back to communities STACK serves What STACK is cognisant of, Brown highlights, is that operating around EMEA presents its own challenges when it comes

Use more image captions as often as possible

STACK campus beehives sustainabilitymag.com

Hello, Sustainability Vertiv™ Liebert® AFC

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Now 15% more compact than the industry standard, this chiller uses less energy to cool your data center spaces with advanced optimisation technology. Available in multiple versions, the highly configurable Liebert AFC adapts to your data center design no matter where you’re located, so you can always stay sustainably cool.

Vertiv.com/AFC

© 2023 Vertiv Group Corp. All rights reserved. Vertiv™ and the Vertiv logo are trademarks or registered trademarks of Vertiv Group Corp. All other names and logos referred to are trade names, trademarks or registered trademarks of their respective owners.

Strategic Data Centre Design: Tailoring Solutions to Unique Requirements In today’s digital era, data centres are the backbone of our interconnected world, supporting the digital infrastructure that drives our daily lives. However, as data generation continues to grow exponentially and the demand for processing power escalates, data centres face the challenge of managing both cooling continuity and energy consumption. These challenges often necessitate bespoke solutions that are designed and engineered to address specific requirements. In the realm of data centre solutions, Vertiv stands out in delivering not just an array of best-in-class products but also a holistic and tailored approach to meet the unique needs of each project. We take a thorough approach to understand the intricacies of the project, ensuring that the solution is precisely aligned with specific requirements and shedding light on the distinct advantages of choosing Vertiv over other alternatives. Highly configurable solutions like the Vertiv™ Liebert® AFC inverter screw freecooling chiller with low-GWP (global warming potential) are engineered with durable components and advanced technologies delivering reliable performance even under rigorous usage and harsh operating conditions. The free cooling mode significantly improves seasonal efficiency and reduces operating costs, while the use of low-GWP refrigerant aligns with environmental regulations and carbon reduction goals. To further continuity of cooling capacity, regardless of external ambient conditions, the Vertiv™ Liebert® AHU air handling unit is a bespoke high-capacity solution that can be installed both indoor and outdoor for greater flexibility. Added value results from meticulous attention to detail and the selection of highly reliable

components managed with control logics. Moreover, the Vertiv™ Liebert® iCOM™ monitoring and control logic is strategically at the heart of such tailor-made cooling systems as it not only enhances efficiency but also provides the necessary redundancy for cooling continuity, even during power outages. A key advantage offered by Vertiv is the opportunity to undergo witness tests, benefiting from comprehensive consultations with engineering and application specialists. Vertiv’s Thermal Management Customer Experience Centre includes seven innovation labs on one site, where customers can witness and verify the quality, functionality, and performance of their tailor-made solution. The holistic approach ensures that the entire bespoke solution, not just individual units, meets the agreed requirements and expectations. To complement its cutting-edge solutions, Vertiv offers a comprehensive suite of services which are essential to enhance efficiency and performance. By providing key insights on how the equipment is being used, Vertiv services can help improve uptime and reliability, lower operating costs, increase energy efficiency, and ultimately reduce the data centre’s environmental impact.

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STACK INFRASTRUCTURE

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to ESG and delivery, with local laws, boundaries and obligations varying from location to location. STACK’s approach to ESG is global at its core, but flexible so that when implemented at a local level it serves the needs of communities. “We unlock so much value when our global regions are collaborating and sharing best practices with different yet regionally relevant initiatives,” Brown explains. STACK has implemented a number of progressive ESG initiatives on a local level, such as heat reuse solutions and rainwater harvesting. One of its most pioneering projects is in Oslo, Norway, where heat 50

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from STACK’s data centre is reused to warm up to 5,000 city homes. Brown adds: “STACK is also factoring in local biodiversity as part of our basis of design. This means looking to incorporate low-maintenance green facades which cover the building with native species of vegetation. It’s very attractive for the aesthetics of an industrial area and attracts wildlife as well. Conservation efforts with campus beehives is another initiative we’re particularly proud of.” In 2024, STACK will launch its new global ESG framework and commitments, bringing a holistic approach to ESG across all areas of STACK worldwide.

Heat from STACK’s Oslo data centre is reused to warm up to 5,000 city homes. Native plants are incorporated into the design of the facade STACK operates in

United through solving complicated problems with people of different backgrounds Eland is a firm believer that STACK’s success and continued growth EMEAwide is well supported by its strong dynamic culture and diverse workforce, with more than 30 nationalities represented in this region of STACK alone. “STACK is present in 23 markets and counting,”

markets across EMEA, APAC, and the Americas Globally, STACK boasts

2.5+GW

of built and under development capacity and

4.0+GW

of planned and potential development More than

nationalities are represented in STACK’s EMEA workforce

he says. “And of course there are logistical considerations that come with adding new markets, new regulations and new members of the workforce. We’ve been driving harmonisation while remaining highly focused on growth and maintaining that strong growth trajectory,” he adds. “Over the last 18 months we’ve been focused on integrating three legacy regional businesses and have successfully brought it all sustainabilitymag.com

The clock is ticking in the race for net zero infrastructure. European data center operators are embarking on a quest to power the path to a sustainable digital future, but only through collaboration, digitalization and electrification can the vision become a reality.

oday we are at an inflection point. In recent times, businesses and consumers have lived through one of the worst energy crises in living memory, while the fundamental challenge of our generation, climate change, is being compounded by energy issues. It’s estimated that 80% of the world’s emissions come from the production, generation, and transmission of energy. If businesses can begin to reduce or eliminate energy waste, humankind can begin to benefit on a global scale, and make significant steps forward in the mission to combat global warming. Looking back to the energy crisis, the reality away from media headlines is fundamentally, different. Indeed, there were no blackouts, no outages, and today the cost of energy is gradually coming down. However, the fallout remains high, with energyintensive industries such as petrochemicals being mothballed, data center operating costs peaking throughout the winter, and Europe becoming less attractive for Foreign Direct Investment (FDI), with greenfield investment projects falling an estimated 15% to-date. The good news, however, is that while 12 months ago 70% of the European Unions (EU) energy came from fossil fuels, the continents’ renewable energy production capabilities have accelerated at a dramatic rate, with almost 40% of all energy now being generated from renewables. What’s clear is that to drive the green transition forward we must continue to prioritise investments in green infrastructure, renewable energy, and sustainable digital transformation – all of which will be vital to address global warming and solve the challenges presented by the energy crisis.

For businesses and consumers alike, energy security and sustainability are two sides of the same coin and it’s estimated that 60% of all energy produced is lost or wasted. The challenge, therefore, is to find new ways to minimize waste across all critical industries by investing in highly resilient and energy efficient technologies, many of which exist already today. As the winter fast-approaches, this becomes even more important for data center operators, where geopolitical issues and grid constrains will have an immediate impact on costs, power supplies and increase the risk of downtime. The reality is that the pace of digitization over the last few years has truly been transformative, and the data center industry, which is the backbone of the digital economy, is becoming increasingly accountable. By 2025, the electrical footprint of data centers is expected to increase by 50%, and we anticipate a 500% growth in data globally. Clearly our digitized world requires an exceptional amount of processing and storage, causing exponential demand for data centers and IT infrastructures. Ultimately, this growth means energy efficiency and sustainability are paramount to the future of the sector, and as the world becomes more dependent on digital infrastructure, we must encourage the responsible consumption and production of data - ensuring we embed a culture of sustainability in our data center designs, buildouts and operations. To unlock the new efficiencies and improvements will require new insights hailed from the creation of data. Therefore, the data center sector itself can act as a catalyst for sustainable change, empowering the world to do more, with less, while reducing the amount of energy and resources wasted, and minimizing carbon emissions.

Powering the Path to a Sustainable, Digital Future

MARC GARNER

SVP SECURE POWER EUROPE, SCHNEIDER ELECTRIC

At Schneider Electric, we believe the convergence of digitalization and electrification, something we call Electricity 4.0, presents us with the fastest path to net zero, and a world which is more sustainable and more resilient. This is inherently important for the data center sector. Electricity, for example, makes energy green and is proven to be 3-5x more efficient than other energy sources, while digital technology helps makes the invisible visible, driving new efficiencies and eliminating energy waste. Today the data center industry has made great progress in driving energy efficiency and sustainability, but it’s clear that more must be done in the quest to build a net zero future. If we can find new ways to reduce energy waste, we can reduce consumption, costs, and carbon emissions, and place ourselves right at the heart of the green transition.

Today Schneider Electric is partnering with STACK Infrastructure to help the organization power the path for a more sustainable, digital future. As part of an ongoing collaboration at its MIL01A data center, Schneider Electric has provided some of the foundational physical infrastructure and software, helping the organization achieve its ambitious energy efficiency and sustainability objectives. STACK, for example, has created a powerhouse of sustainable, efficient, and resilient colocation data centers, providing customers with unparalleled, flexible expansion capacity and a sustainable platform for growth. Its MIL01A facility delivers an annualized operational PUE of ~1.3, with a water usage effectiveness (WUE) of ~0.8 - all while meeting ASHRAE TC9.9 thermal guidelines. To achieve the highest levels of efficiency, STACK utilizes Schneider Electric’s Galaxy™ VX UPS with Li-Ion batteries, which offers up to 99% energy efficiency in eConversion™ mode, alongside Schneider Electric racks, Computer Room Air Conditioning (CRAC) units, electrical distribution, and switchgear. Software is also critical to its operations and in Milan, it utilizes Schneider Electric’s EcoStruxure™ platform to gain granular levels of insight and control into the operating environment. Key modules include Schneider Electric EcoStruxure Data Center Expert, EcoStruxure IT™ Expert and Power Monitoring Expert modules – connecting the data center, electrical, mechanical and key critical systems together via DCIM and BMS to deliver reduced energy consumption, and a more efficient and holistic operation. Through a meticulous approach to design and operations, and by harnessing the power of Schneider Electric’s EcoStruxure for Data Centers™ portfolio, STACK is delivering unmatched levels of sustainability and efficiency to clients in Italy. To learn more about the benefits of EcoStruxure Data Center Solutions, click here.

STACK INFRASTRUCTURE

“ THE ORGANISATIONS WE COLLABORATE WITH SHARE OUR SUSTAINABILITY PRINCIPLES AND WANT TO ACHIEVE THE SAME GOALS. WE ALL WANT TO BE ON THE SAME JOURNEY” AMY DANIELL

SENIOR VICE PRESIDENT, STRATEGY AND DEVELOPMENT, STACK EMEA

together. We’re one STACK organisation in EMEA, one team, applying STACK’s global delivery principles to serve as a trusted partner to our clients.” Partners with common values central to STACK And although STACK is in a strong position to make positive change and significantly grow, it can’t do this on its own. “Partnerships are at the forefront of our business practice. We want to develop long-term relationships which are key to consistency and sustained success,” explains Daniell. “So to continue to deliver at pace and serve as a partner to our own clients, building strong relationships with our supply chain is essential,” Daniell stresses. “Trust is key. It’s a matter of building a strong supply chain and collaborating with them to achieve 54

October 2023

STACK’s data centre in Oslo

our goals of delivering excellence in service, on time and on budget, sustainably.” Daniell details how STACK’s partner companies are carefully selected. Shared core values, including the sustainable sourcing of raw materials, is non-negotiable. She admits that while many of STACK’s valued partnerships are already established, the company continues to seek alliances with those who also put sustainability and respect for the planet at the heart of their offering. “We’re looking at all of their processes because they’re part of our value chain,” she adds. “We’re making sure that once our buildings are fully operational,

we’ve worked diligently to understand the origin of every single component. The organisations we collaborate with share our sustainability principles and want to achieve the same goals. We all want to be on the same journey.” A phase of hypergrowth The term ‘sustainable future’ has more than one definition for Eland - to him, it applies to both the planet and the business. “Our entire industry is in a phase of hypergrowth. We were already experiencing a phase of strong growth driven by core compute requirements, but with the advent of AI – particularly over the last year – there

are larger-scale demand requirements coming to market that show no signs of slowing,” he details. Eland sees the next 12 to 18 months focused on ensuring STACK’s growth trajectory in EMEA continues to match that of its hyperscale clients, ensuring successful and safe delivery. “We see no evidence of these requirements diminishing. We are ensuring that we are well-placed, well-served and properly structured to support them as they arrive.”

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AWARDS 2024 The Global Sustainability Awards 2024 will be celebrating the very best in Sustainability & ESG with the following categories: Sustainability Strategy Award – ESG Program Award – Climate Change Award – Diversity & Inclusion Award – Net Zero Award – Sustainable Supply Chain Award – Sustainable Technology Award – Sustainable Consultancy Award – Future Leader Award – Executive of the Year Award – Project of the Year Award – Lifetime Achievement Award

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THE INTRINSIC LINK BETWEEN

CLIMATE CHANGE & THE WATER CRISIS Ecolab’s Emilio Tenuta discusses the critical nexus between the water crisis and climate change, urging businesses to prioritise taking action WRITTEN BY: LUCY BUCHHOLZ

y early 2025, almost half of the world’s population could be living in areas facing water scarcity, according to UNICEF. What’s more, by 2030, some 700 million people could be displaced by intense water scarcity and 1-in-4 children worldwide will be living in areas of extremely high water stress. Yet the intrinsic link between the water crisis and climate change can often be overlooked. Climate change disrupts rainfall patterns, increases evaporation with higher temperatures, and melts glaciers – all of which impact water availability. Sea levels are rising and extreme weather events – driven by climate change – cause flooding and damage water systems. Natural water regulations are impacted by changes within ecosystems, and these changes only worsen water scarcity across the globe. Emilio Tenuta, Senior Vice President and Chief Sustainability Officer, Ecolab, says that globally, we’re “falling behind” 58

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on the work that needs to be done to achieve the targets set in place and to prevent further damage. Echoing research from the World Economic Forum, Tenuta highlights the role that nature plays in supporting economic activity around the world, stating that over half of the world’s GDP – US$44tn of economic value generation – is moderately or highly dependent on nature and its services and, as a result, exposed to risks from nature loss. But nature loss can not be the sole focus; water also has to be considered. With Sustainability Magazine, Tenuta explores this link in greater depth, while highlighting the pioneering work that Ecolab is doing to reduce the issue. Raising awareness of the water crisis In 2020, Ecolab launched its 2030 Impact Goals, its most ambitious yet, which focus on creating a positive impact by working with its customers within its operations, communities,

Supporting Data Centres in the Transition to Net Zero Carbon The combined knowledge and experience of MiCiM and OI allows us to work collaboratively with clients from strategic sustainable design development through to implementation

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ESG

“ WE CANNOT DO THIS ALONE – IT NEEDS TO BE A JOINT EFFORT” EMILIO TENUTA

SENIOR VICE PRESIDENT AND CHIEF SUSTAINABILITY OFFICER, ECOLAB

and environment. In its operational water and climate goals, Ecolab outlines a number of specific targets, including: • Reducing the company’s water impact by 40% per unit production across its enterprise, from the 2018 base year • Restoring more than 50% of its absolute water withdrawal volume at high-risk sites • Achieving Alliance for Water Stewardship (AWS) Standard certification in high-risk watersheds • SBTi approved climate target to get to net zero by 2050 and halfway there by 2030

“We have a lot of big goals,” Tenuta explains, “for example, we want to have a net positive water goal by 2030, as well as the target of being net zero by 2050. Additionally, we’re very proud of our DEI goals, as well as those to impose safety, as safety is at the core of the company. “But what really speaks volumes is the positive impact we’re making by helping our customers achieve their bold business and sustainability goals in 2022. For example, we helped our customers conserve 219 billion gallons of water – equivalent to the drinking water needs of 758 million people. We helped our customers provide safe and high-quality food to 1.4 billion people while providing hand hygiene solutions to clean 57 billion hands and avoiding 3.6 million metric tonnes of greenhouse gas emissions, which sustainabilitymag.com

ESG

EMILIO TENUTA TITLE: S ENIOR VICE PRESIDENT AND CHIEF SUSTAINABILITY OFFICER COMPANY: ECOLAB INDUSTRY: C HEMICAL MANUFACTURING LOCATION: UNITED STATES Having spent nearly 40 years with Ecolab, Emilio Tenuta has held many different positions, including technical marketing and business development roles. But for the last 11 years, Tenuta has been focused on building Ecolab’s ESG leadership climate and water strategy. “When I first took on this role, sustainability and ESG wasn’t what it is today,” Tenuta shares, “but at Ecolab, we always had a clear vision. Now, as the business celebrates its 100-year anniversary, we have a clear vision for the years ahead.” To mark this milestone, Tenuta co-wrote a book, entitled Clean, with Paul Godfrey, Ph.D. using Ecolab as an example of how business can use sustainability as a competitive advantage. Tenuta concluded: “But what particularly motivates me each morning, is knowing that, at Ecolab, we are doing well by doing good.”

helped prevent almost 6 million pollutionrelated illnesses. These statistics, to me, demonstrate how we’re stepping up to help our customers achieve their bold, ambitious goals while making a positive impact for the planet while growing their businesses each year.” Collaboration for better climate action The water crisis isn’t just a humanitarian challenge – it has business implications, too. But, businesses are able to help solve and have a huge impact on these problems. For example, in 2020, Ecolab co-founded the Water Resilience Coalition – a CEO-led coalition focused on building awareness and taking action around the water crisis. “The coalition has been contributing some really meaningful work,” Tenuta says.

“For example, it identified that 150 of the world’s largest companies and their supply chains can have impact one-third of the freshwater use globally by adopting a net positive water pledge. If you really think about that, it’s an unbelievable statistic as it highlights why businesses need to lean in on the water crisis, to not only support the challenges that businesses face but also the humanitarian challenges that we see around the world.” Although the Water Resilience Coalition is having a tremendous positive impact, it demonstrates a wider concept; sustainability goals can’t be achieved by one company alone – it takes working together to drive scale in at-risk watersheds.

“ COALITIONS AND INDUSTRY GROUPS ARE CRITICAL TO SOLVING SOME OF THE CHALLENGES THAT WE’RE SEEING AROUND WATER AND CLIMATE, TODAY” EMILIO TENUTA

SENIOR VICE PRESIDENT AND CHIEF SUSTAINABILITY OFFICER, ECOLAB sustainabilitymag.com

ESG

“ WE WANT TO HAVE A NET POSITIVE WATER GOAL BY 2030, AS WELL AS THE TARGET OF BEING NET ZERO BY 2050” EMILIO TENUTA

SENIOR VICE PRESIDENT AND CHIEF SUSTAINABILITY OFFICER, ECOLAB

Three steps to a sustainable future For businesses keen to embark on their sustainability journey, Tenuta highlights three key points, the first being to act now. “The world is behind on our water and climate goals,” Tenuta explains, “and although there’s a lot of talk about being innovative, we must utilise the current technologies available, rather than waiting for the next best thing to come along.” Secondly, he highlights that water must be considered as part of the climate strategy. “It’s often the overlooked part of the equation,” Tenuta adds, “but water equals climate – we know this. We’re mainly experiencing the effects of climate change through water – for example, through extreme droughts, weather and flooding, to name a few. Water, therefore, has to be part of the strategy.” The third and final step is to take note of and utilise collaborations. “We cannot do this alone – it needs to be a joint effort,” Tenuta says. “Coalitions and industry groups are critical to solving some of the challenges that we’re seeing around water and climate, today. But we need to act together.” sustainabilitymag.com

ARE YOU READY FOR 2024?

Convera looks at today’s global economy, analysing the impacts of monetary policy, bonds & equity, credit, trade and geopolitics on FX rates, with an eye to how these may change as we enter 2024

WRITTEN BY: LOUIS THOMPSETT

PRODUCED BY: JAMES WHITE

CONVERA

sustainabilitymag.com

CONVERA

Facing headwinds and high expectations for global commerce Today, exchange rates are experiencing volatility, with economic headwinds leading to unpredictable impacts on a growing global trade market post-COVID-19. This volatility is affecting cross-border trade for SMEs and large corporations alike. Interest rates from 155 central banks between August 2021-2023 have risen over 500 times – constituting the most aggressive period of interest rate hikes ever recorded – a reality that has jolted foreign exchange (FX) rates.

The cause of these unprecedented hikes? The need to swiftly contain inflation. Central banks have had to reverse course from their actions during the COVID-19 pandemic when over 200 interest rate cuts happened throughout 2020. As the gears of industry and trade began turning again in 2021, a regime shift has been mandated to control inflation. But rapidly imposed, successive interest rate hikes have knocked exchange rates; the euro, US dollar and pound sterling have seen much volatility since.

Top five macro concerns businesses expect 6-12 months ahead

Note: percentages will not add up to 100% due to multiple response options. Only displaying top 5 concerns. Source: Convera – July 6-7 2023. Displaying responses from 95 businesses across Europe, APAC and NAM. Respondents included industries such as financial services, manufacturing, and respondent job titles included FDs, CFOs, and MDs. Question: “Thinking about the next 6-12 months, what issue(s) concerns you most today?”. ‘Other’ concerns not displayed included Digital transformation/automation.

October 2023

In fact, Kybira’s 2023 Currency Impact Report examining 1,200 companies found that rising exchange rate risk cost them US$64.2bn in Q3 2022 alone. These FX headwinds were more than three times the fiscal amount of any tailwinds experienced by any of the sampled companies. Moreover, a Convera survey found that 71% of such businesses counted high inflation and rising interest rates as the most pressing macroeconomic issues they face, with another 49% citing a lack of cash flow and 44% geopolitical trade risks as the most immediate issues. These figures are best highlighted in the graph below. With these figures in mind, it’s clear that exchange rate risk constitutes a significant point of friction in cross-border trade for SMEs and corporates alike. These headwinds are affecting payments and organisations’ bottom lines. 2024 may mark a turning point, with volatility easing at the back end of the year to keep cross-border trade on a path to growth. Convera forecasts that crossborder business will accelerate some 33% between 2023-2028, reaching US$39.8tn from US$30.3tn in 2022. Today’s higher for longer interest rate narrative will be challenged if inflation falls to the much-coveted 2% mark, meaning central banks could be compelled to lower interest rates. In the US, inflation is falling, but economic resilience has resulted in volatile US rate expectations, reducing the US dollar’s 13% fall from its October 2022 high, to around 7% at present. While falling inflation could constitute a shift in monetary policy from central banks – which in turn could impact FX rates – other factors could contribute to

the broader macroeconomic outlook and the potential for further FX rate volatility: bond and equity price divergence, credit conditions, trade circumstances, and the geopolitical landscape. This report considers each of these coalescing factors, forecasting their compounding effects on FX rates. From Convera’s perspective, the key to success for cross-border trading businesses in 2024 will be determined by their ability to mitigate cross-border frictions and volatility, negate losses and maximise growth. Those who succeed will execute sophisticated hedging processes, effectively automating these processes at speed. Having the right solutions in place will enable global organisations to address cross-border frictions, ensuring they remain beneficiaries of a growing trade industry, amid widening macroeconomic uncertainty. Today’s macroeconomic landscape: A picture of economic uncertainty Exchange rates are experiencing volatility today. This is a legacy of recent crises – from the US-China trade war, the aftermath of fiscal COVID-19 measures and Russia’s war with Ukraine – all leading to the current cost-of-living crisis stretching from 2021 into 2023. Many economists predicted the global economy would fall under its weight, with high interest rates and high energy prices – the latter a partial symptom of severed trade with Russia following its invasion of Ukraine – seeing consumers’ wallets pinched and the economy heading to a potential recession. Despite fears, inflation – particularly in the US (as aforementioned) – has started to sustainabilitymag.com

CONVERA

fall. With incoming economic data showing resilience, these stagflation risks have subsequently eased. But where does this economic resilience come from? The pandemic may have had a part to play. Fiscal stimulus measures sparked a global consumption boom that is still influencing the global economy in 2023. Consumers have accrued excess savings post-pandemic and a shift in consumer preferences may have contributed to the disconnect between lagging and leading economic indicators currently seen.

But this is not the only disparity contributing to an uncertain economy. The potential for further divergence between bond and equity markets could further alter the outlook for FX rates. Quantitative tightening is gaining more and more attention and could have significant side effects for the economy and, subsequently, FX rates. Bond yields have continued to surge as central banks raise interest rates across the board and actively sell government bonds. The graph below shows how, historically, bond prices fall

Equities and bonds to surge – dollar to weaken in 2024?

Median cross-asset performance after interest rates peak, 7-day moving average

Note: Historical data since 1971. G7 bond price series is an average of individual bond prices for G7 nations, weighed by their respective GDP values. G7 equity index is an average of individual equity indices, weighed by their respective trading volumes. Sources: Refinitiv, Yahoo Finance, Oxford Economics, Macrobond, Convera – August 2023

October 2023

when the Federal Reserve raises rates but rise once rates eventually reach their peak. Additionally, equities have surprinsgly outperformed this year and the VIX Index – a measure of equity market volatility commonly known as the “fear index” – has stayed below its long-term index average of 20 for over three quarters of this year. In comparison, we saw the VIX Index above 20 for over 90% of the time in 2022. This only adds to the picture of an uncertain economy, and the divergence between bond and equity markets could lead to further jolts in FX volatility as we head into 2024. Quantitative tightening to reduce the economy’s money supply, as imposed by central banks, has been mirrored in the credit space. In fact, one of the most aggressive credit tightening cycles is potentially coming to an end, although the impact of higher credit rates is still feeding through. The result of this tightening is that 40% of consumers across 28 markets expect their disposable income to fall in the next year, potentially driving down consumer spending. For years, consumers have relied upon cheap credit. In December 2020, at the height of the pandemic, the world’s negative-yielding debt pile hit a record high of US$18tn and home prices in the US, UK and Germany rose by an average of 30% from the start of 2020 to mid-2022. But since then, the battle against rising inflation has shifted the landscape of credit in the private sector. Today, shortterm interest rates and mortgage rates in G10 countries have hit a 14-year high, and

“ As we near the peak of high interest rates and ponder the timing of future rate cuts, volatility in, and divergence between bond and equity markets could materially alter the outlook for FX rates” GEORGE VESSEY

LEAD FX & MACRO STRATEGIST, EUROPE

sustainabilitymag.com

CONVERA

we see companies and households having to adjust to a new rate environment. While we don’t expect credit conditions to tighten much more, the lagged negative effect of tighter conditions is yet to be experienced by businesses and households. This could be particularly true for mortgage holders. In the UK, mortgage debt has shifted from being responsive to changing interest rates to stagnant over longer periods as many consumers have elected for fixed mortgage rates in blocks of two or five years.

With this lagged impact on consumers in mind, financial conditions – particularly consumer spending – could tighten further in 2024 when both sovereign credit and mortgages come due for refinancing. We are already seeing tighter bank lending standards due to rising interest rates, which may start to crimp down on credit flowing to businesses and households, particularly those households with mortgages due for refinancing. In the Eurozone, the Bank Lending Survey (BLS) reported demand from firms for loans or drawing of credit lines in

Global credit cycle remains negative, but is improving

Change in G5 central bank’s balance sheets as a share of global GDP, in % terms

Note: Global GDP forecast taken from the IMF for Q1 and Q2 2023 Source: Convera, IMF, Macrobond – August 2023

October 2023

1: 1st global contraction 2: 2nd global contraction

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the second quarter of 2023 dropped to a record low. Meanwhile, the share of small US firms reporting it is difficult to access loans rose to a 10-year high in May 2023, and the Senior Loan Officer Opinion Survey (SLOOS) showed that US banks’ tighter lending standards have breached the threshold that in the past was consistent with a recession. This may come into sharper focus once lag effects have run their course. And yet – to add further fuel to economic uncertainty – while credit may be tightening and bond prices surging, global stocks have bucked the trend seen from other economic indicators that point toward recession – appreciating over 15% year-to-date. US Nasdaq stocks are

particularly noteworthy in their defiance of expectations, surging 40% in large part thanks to the emergence of AI products on the market. With global stocks healthy, one may assume this lays the foundation for stability in global trade. But is this the case? Yes and no. The value of cross-border global trade, much like stock markets, defied expectations of a downturn. Although global cross-border collapses were feared amid the onset of the COVID-19 pandemic, trade grew 24% between 2019 and 2022 and compared favourably with the longrun average of around 6% per annum since 1995. Nevertheless, a thriving global crossborder trade market does not necessarily rule out volatility, particularly regarding FX rates. sustainabilitymag.com

CONVERA

New politically charged trading policies have had a big impact on trade in recent years, as leading Western nations look to diversify from an over-reliance on China. Near-shoring trading has seen India, Vietnam, Mexico and Thailand become key beneficiaries of new trade opportunities as global firms move production away from China. The US Inflation Reduction Act and the CHIPS and Science Act have both impacted the ability of China to undertake trade with the US and accept foreign direct investment. Chipmaker Intel is one major producer that is considering moving

production out of China to comply with new US regulations. Today, the difference between Chinese imports into the US compared to five years ago is stark. In the first six months of 2018, Chinese imports into the US sat at US$249bn, but in the same period in 2023, Chinese imports accounted for only US$203bn – a drop of 18.5%. Decoupling from China, the US has turned to Mexico as its number one importer. Its imports have grown from US$168bn in the first six months of 2018 to US$236bn in the first six months of 2023 – an increase of more than 40%, underpinning

Mexico overtakes China as US’ #1 source market for goods Monthly US imports, USD mln, 6-month rolling total

Sources: US Census Bureau, Convera – August 2023

October 2023

the geopolitically-fuelled shifts emerging in trade patterns post-pandemic as part of the US-China trade war. The process of decoupling from China is hastening amid growing geopolitical tensions, something that is bound to have implications for USD/CNY exchange rates. This could be further complicated, as Xi Jinping looks to diversify his country’s economy, a process that is expected to result in China generating more than onequarter of all global consumption growth – more than any other country. How the Chinese Yuan will subsequently look against the US Dollar seems all the more uncertain. Shifting trade conditions are not endemic to just China and the US, Europe has introduced the EU Carbon Border Adjustment Mechanism (coming into force in 2026) to penalise high-carbon imports which, according to Energy Monitor, is likely to have the biggest impact on Russia. Over US$10bn of its largely iron and steel exports between 2015 and 2019 would have fallen under this new CBAM legislation. Of course, the key driver in these shifting trade conditions is the result of geopolitical decisions and the key role politics plays in economic issues that affect FX rates. And in 2024, some big political events could alter economic outlooks, thus fuelling exchange rate volatility. No upcoming political event is perhaps as large as the impending 2024 US election, where it is expected that incumbent President Joe Biden will again face off with Donald Trump, the likely Republican candidate. The outcome of this election could have vastly different geopolitical implications.

“ In the first six months of 2023, Mexico overtook China as the largest overseas source market for US imports of goods. Trade disputes or diversification is having consequences for longer-term balance of trade and payments” STEVEN DOOLEY

LEAD FX & MACRO STRATEGIST, APAC

sustainabilitymag.com

CONVERA

“ Most forward-looking indicators – like the Purchasing Managers Index, the Conference Board’s Economic Index, and yield curves across government bonds – point to high recession probabilities in 2024, while backward-looking indicators continue to perform well” BORIS KOVACEVIC

GLOBAL MACRO STRATEGIST

October 2023

For instance, would another Trump administration roll back any of the severe economic sanctions on Moscow that ensued after Russia invaded Ukraine in 2022? Such is the polarity in today’s political sphere that the impact of elections on the economy is arguably more unpredictable than ever. History backs this up. Since 1980, only six of the US’s Congressional 21 sessions (29%) have been led by a unified government, leading to higher policy uncertainty. Add to that Donald Trump’s 2016 election win, the US-China trade war and pandemic-led economic policy responses, and the polarity only grows. The Global Economic Policy Uncertainty Index has already reached record levels near 435 in 2020 (versus 196 in 2010) and it has never really normalised to pre-pandemic levels. Such political conditions are not constrained to the US alone either – they are global. Take the UK, where the British pound collapsed in 2022 because of thenPrime Minister Liz Truss’ poorly received economic recovery plan. And the UK could see further economic shifts in 2025 at the time of its next general election. That is if it does happen in 2025. There are suggestions current Prime Minister Rishi Sunak could pull this timeline forward should the UK economy remain on a resilient path. And should the British public vote in the Labour Party after more than a decade out, there is a chance this could alter UK-EU trade and business relations. The scope for election-driven economic uncertainty is everywhere in 2024, with key elections happening in Mexico, South Africa and the EU. There is

uncertainty around the election of a new European Parliament in 2024, with far-right candidates gaining traction in recent months. Could far-right candidates, if successful, reshape the European landscape for climate policy and lead to a more conservative Brussels? This adds to today’s economic picture of disparity and uncertainty. The changeability of political policy and shifting trade allegiances, alongside a lag in the pinch on credit, and a divergence between bonds and equities points to an uncertain economic outlook, one which could unpredictably affect FX rates globally. Most forward-looking indicators – like the Purchasing Managers Index, the Conference Board’s Economic Index, and yield curves across government bonds – point to high recession probabilities in

2024, while backward-looking indicators continue to perform well. The last four recessions have been preceded by circumstances that are currently in place, such as tighter US Federal Reserve monetary policy, the New York Federal Reserve’s recession probability indicator rising above 30%, the Conference Board’s US Leading Economic Index falling below -5, over 50% of US bond yield curves inverting, and the US’ CEO Confidence Index falling below the key 40 threshold. Nevertheless, consumer spending has remained resilient and global stocks have appreciated, with the Nasdaq surging. So, amid the divergence and uncertainty today, what outcomes should we expect in 2024, and how could these potential outcomes affect FX rates?

Get a copy of our full report: Are you ready for 2024? In our full report, we’ll provide an even more comprehensive outlook for 2024, looking at how key markets will be affected in our FX rates analysis and forecast scenarios and recommendations for crossborder businesses looking to successfully navigate international trade as we enter 2024. Register here to receive a copy of our full report, launching at Money2020 US on October 23rd.

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ESG

UNCONSCIOUS BIAS: A SILENT THREAT TO WORKPLACE

DIVERSITY Unconscious bias impacts us all – whether we know it or not. Clare Stephens, VP of Diversity, Equity & Inclusion at NTT DATA, discusses the issue in depth

WRITTEN BY: LUCY BUCHHOLZ

o one degree or another, we all have preconceived ideas and prejudices against certain social and identity groups. These are often hidden in our unconscious, yet they come out in our speech, actions and behaviours and are formally known as unconscious bias or implicit bias. As the VP of Diversity, Equity & Inclusion at NTT DATA, Clare Stephens describes these biases as “long-held, subconscious prejudice or stereotypes” that are focused on specific groups of people, often centred on race, gender, age, ethnicity, or other characteristics. “If left unchecked, these biases can lead to unintended discrimination and unfairness in various aspects of business life: Including hiring, evaluations, and career opportunities,” Stephens says. “Recognising and addressing unconscious bias is crucial to creating inclusive environments and promoting diversity and equity in the workplace. 78

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ESG

“ AT NTT DATA, WE WANT TO PROMOTE A RECRUITMENT PROCESS THAT IS BOTH INCLUSIVE AND ACCESSIBLE” CLARE STEPHENS

VP OF DIVERSITY, EQUITY & INCLUSION, NTT DATA

“Sitting on the leadership team at NTT DATA, part of my role is to examine and identify the systemic effects and causes of unconscious bias. By evaluating the reasoning behind business decisions, we can examine the factors that went into them and learn to what extent unconscious bias may have affected the outcome.” With Stephens, we explore why unconscious bias needs to be addressed, as well as how it impacts various different aspects of a business.

diversity and inclusion of employees, while encouraging better decision-making, improved collaboration and reduced conflict. Addressing unconscious bias also aligns with ethical and legal obligations and fosters a harmonious work culture. “A keen awareness of and willingness to tackle unconscious bias is vital for organisations to create a diverse and inclusive work environment,” says Stephens. “Digging down into all policies, processes and procedures to ensure that we operate within an equitable framework can help to unearth bias. Typically, bias discovered in hiring decisions, performance reviews, and rewards – for example – will stem from unintended and repeated bias. It’s only when we raise awareness of these biases that we can put measures in place to remove them.

Unconscious bias: It’s impact on company culture A Deloitte survey of 3,000 individuals explored unconscious bias in the workplace, finding that 39% of employees shared that they experience it at least once a month, regarding it as “frequent”. Of these biases, 83% of respondents said that they were subtle, indirect or microaggressions, with 68% reporting they have a negative impact on productivity. Yet promoting the awareness of unconscious bias in the workplace is vital, as it ensures fair treatment and the sustainabilitymag.com

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CLARE STEPHENS TITLE: V P OF DIVERSITY, EQUITY & INCLUSION COMPANY: NTT DATA INDUSTRY: IT SERVICES LOCATION: UNITED KINGDOM Clare Stephens became a part of NTT DATA in January 2023, bringing with her a diverse background of HR and DEI leadership roles throughout her professional journey. She had most recently served as the EMEA Diversity & Inclusion Leader at IBM, a position she had held since 2017. During her tenure in this role, she had taken charge of numerous inclusion initiatives aimed at attracting, retaining, and nurturing diverse talent. These initiatives encompassed endeavours such as elevating the representation of women in leadership, championing flexible work arrangements, and establishing mentoring programmes. Since joining NTT DATA, her aim has been to prioritise inclusion and the implementation of equitable frameworks. DEI is a top priority for NTT DATA, and Stephens’ reports directly to the CEO to ensure the business is fostering a culture of trust and safety in the workplace. Her primary aim is to create a sense of belonging and positivity that has a significant impact on every individual within the organisation – NTT DATA call this: “Creating Inclusion Together”.

“Unconscious biases shape workplace cultures, and, if left to their own devices, can foster an environment where certain groups feel excluded or undervalued. This often leads to decreased employee satisfaction and engagement, resulting in a ‘revolving door’ of talent and stifling the potential for new voices and ideas.” Reducing unconscious bias in the workplace Although it is highly unlikely that all unconscious biases can be completely removed, there are numerous ways to reduce them. The first, and arguably the most important step, is to ensure individuals are recognising them.

“ OUR AIM IS TO CHANGE DEEP-ROOTED BELIEFS THAT, BY DEFINITION, WE ARE UNAWARE THAT WE HOLD” CLARE STEPHENS

VP OF DIVERSITY, EQUITY & INCLUSION, NTT DATA

“Our aim is to change deep-rooted beliefs that, by definition, we are unaware that we hold,” Stephens shares. “This doesn’t happen overnight. Reducing unconscious bias in the workplace requires a thoughtful, proactive, and systematic approach, beginning with awareness.” Training programmes and workshops can be implemented to support this, as they can increase the recognition and understanding of how biases can impact decision-making. The recruitment process is also an important aspect of cultivating diverse and inclusive workspaces, which are free from unconscious biases. Standardised procedures should be implemented by sustainabilitymag.com

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“UNCONSCIOUS BIASES SHAPE WORKPLACE CULTURES, AND, IF LEFT TO THEIR OWN DEVICES, CAN FOSTER AN ENVIRONMENT WHERE CERTAIN GROUPS FEEL EXCLUDED OR UNDERVALUED” CLARE STEPHENS

VP OF DIVERSITY, EQUITY & INCLUSION, NTT DATA

leaders to ensure all candidates receive fair and equal treatment – starting from the way in which the job description is written. Supporting this, Stephens shares the need to encourage inclusive hiring practices to ensure that diverse perspectives are included in the decision-making processes. “At NTT DATA, we champion internal Employee Resource Groups,” she comments. “These groups bring together both individuals with shared characteristics or backgrounds and those who may not share these things, but still wish to champion inclusion and foster support and understanding in the workplace. “We are also proud to support our Women in Business, Neurodiversity, LGBT+, Parents, Culture & Ethnicity, and Health & Wellbeing Networks. We are constantly looking for ways to improve and work across networks to foster inclusion and consider intersectionality across groups. We also partner with external organisations across these groups to ensure that we are benefiting from best practices and taking guidance, both internally and externally, as we look to be an even better employer.” Two specific types of bias should be understood too – affinity bias, which is

when individuals tend to favour others who share similar interests, backgrounds and experiences as they do, and confirmation bias, which is when individuals process information by looking for or interpreting information that is consistent with their existing beliefs. Both of these biases needed to be thoroughly understood by hiring managers, to ensure they don’t impact candidates. “These are a subject that is close to my heart,” Stephens shares, “and at NTT DATA, we want to promote a recruitment process that is both inclusive and accessible. To reduce biases, we’ve just completed a review of all our job descriptions, considering their language and tone, with the aim of reflecting a more inclusive environment. “We want to create an environment that encourages people from diverse backgrounds and experiences to apply. This is why we have removed the mandatory degree qualification requirement from all roles without an explicit need for this level of formal education. We have also just obtained the UK Government’s Disability Confident certification as part of our desire to ensure accessibility for all.” sustainabilitymag.com

WRITTEN BY: TOM SWALLOW PRODUCED BY: STUART IRVING

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Schneider Electric’s Global Head of Sustainability shares initiatives with business ecosystem to uncover emissions

here need not be disparity between small-to-medium enterprises (SMEs) and the multinational companies (MNCs) that seemingly tower above them in the race to sustainability. In fact, businesses are linked more than they realise, which is why the world is entering a more collaborative state whereby businesses become partners and goals are unified. This is particularly so in the case of supplier and customer interactions as relationships between parties are critical in helping them build resilience and reduce their overall impact in line with all Scope emissions. There are two factors to this. Firstly, there’s the understanding of the necessity and the opportunities presented to businesses when they take climate change on board as a key component of business. And several elements are to be considered here by businesses as a part of their business strategy: • Regulatory: with increasing constraints & incentives for businesses to decarbonize coming to enforce the “Net-Zero World” such as the CSRD from the EU. • Resilience: with Climate change in any case underway, ensuring healthier but also more robust business practices that mitigate associated risks. • Competitiveness: Being in tune to existing and emerging customer demands regarding one’s own carbon footprint and commitment.

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Sorouch Kheradmand Global Head of Sustainability Schneider Electric sustainabilitymag.com

SCHNEIDER ELECTRIC

“ It’s about turning it beyond building that market awareness; beyond that education to actually go after tangible, measurable, replicable claims” SOROUCH KHERADMAND

GLOBAL HEAD OF SUSTAINABILITY FOR BUSINESS ECOSYSTEM, SCHNEIDER ELECTRIC

October 2023

The second is the move from plans to tangible, measurable and replicable actions and, these days, technology is at the heart of achieving new outcomes with lasting impacts. This is where partnerships can really help accelerate the transition to more sustainable systems and reconcile business and sustainability, creating wealth and growth, while actively contributing to the protection of our common heritage and the planet. Thanks to Schneider Electric and its approach to its business ecosystem, there are myriad SMEs across the globe developing their knowledge and activities to mitigate climate change.

SOROUCH KHERADMAND TITLE: GLOBAL HEAD OF SUSTAINABILITY FOR BUSINESS ECOSYSTEM COMPANY: SCHNEIDER ELECTRIC LOCATION: SINGAPORE

EXECUTIVE BIO

Enabling these kinds of actions to take place is not simply done by chance. Sorouch Kheradmand, tells us how the multinational energy management and digital automation businesses positively impacts supplier and customer perception to bring them on board with a sustainable way of thinking. Having worked his way up the chain from an engineering position to his influential role at Schneider, Kheradmand is able to work closely with partners. This is not only to share its insights into climate change but also to deliver the tools to allow large companies and SMEs alike to deliver on their own targets while simultaneously

Sorouch is a senior executive for Schneider Electric where he manages Sustainability globally. Sorouch had various experiences, starting his career in R&D, before leading large strategic projects (M&As/divestures) and later on large commercial teams. Passionate about Sustainability, he made it his career and tries to show ways businesses can harness it to grow and outdo their competition, while having a positive impact on People, Planet & Society. On top of his current job, he often writes, talks and exchanges around Sustainability. He is also a non-executive director and advisor to several companies playing in the Impact/Sustainability space. Sorouch is an INSEAD MBA graduate.

SCHNEIDER ELECTRIC

“ The beauty of Schneider Electric is that we have so many solutions for the active management of building infrastructure and data centres” SOROUCH KHERADMAND

GLOBAL HEAD OF SUSTAINABILITY FOR BUSINESS ECOSYSTEM, SCHNEIDER ELECTRIC

October 2023

meeting demands of their own suppliers and customers. Initially sceptic about how business could answer profitably to the climate crisis, Kheradmand is now focused on delivering his advocacy to a worldwide network of businesses to drive a significant impact, at scale. “Schneider is very active in decarbonising its operations, and I said ‘what can we take from that and actually apply to our ecosystem of suppliers, partners and customers?’” says Kheradmand. “We reached out to our customers, we listened to them, we saw that there is a willingness to do something. But we needed to make sure people understood what was in it for them and how they could walk the talk.”

Sustainability needs to be demystified and made tangible What quickly came to light was the need to make sustainability tangible-ie, how can you measure your impact on the climate when you can’t directly visualise it? The word ‘tangible’ marks the first stage of Schneider Electric’s strategy, which is completed by realising impact and understanding how to benchmark sustainability using data on environmental, social, and governance (ESG) metrics. This is where Kheradmand really tapped into his desire to educate—one that was formed during his career journey. He recognised that businesses must first understand their impacts in simple terms; facts, figures and

data that is objective to the organisation. “This means marrying the science of sustainability—and to start carbon—and the art of business, which basically refers to how you gain customers and improve your market footprint, margins, costs, and increase prices,” says Kheradmand. “We tried this with our customers. We went to them, sat with them and figured out plenty of solutions already exist. It’s a science and you need to be very specific and particular about what you want to deliver. It needs to be tangible, measurable and reproducible.” This first stage influenced the founding of the Schneider Electric Sustainability School. This free initiative helps train stakeholders sustainabilitymag.com

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in carbon measurement, management, and further processes to ensure that their businesses can be sustainable long term. The programme helps businesses to first gain knowledge of their impacts and the opportunities available to them. The second step to be launched in October 2023 covers decarbonisation strategy, enabling organisations to achieve their goals using digital tools to monitor their carbon footprints. Thirdly, Schneider is dedicated to teaching SMEs how they can reap the commercial benefits, such as lower costs, better efficiencies, and the ability to market their environmental impacts as a key differentiator, doing so in a way that is true to the science sustainability. Dealing with this step is a matter of mindset. As Kheradmand explains “Sustainability today is kind of like digital was 20 years ago”, in a sense that transformation was seen as a ‘must’ without really understanding the business dynamics nor the position to measure the impacts of technologies over time. The same process is happening with businesses and their sustainability impacts, which is why it’s important to understand the current situation and actions that can be taken with stable effects economically. This is where Schneider Electric sustainability approach is framed around three axes: Strategise (by measuring your footprint to build an achievable ambition), Digitise (by measuring and tracking progress regularly), Decarbonise (by taking the steps to make one’s business less carbon intensive and more sustainable). Supporting targeted decision making through digital tools Having avoided aimlessly making changes to become more sustainable, it’s time for 94

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businesses to begin measuring and taking actions that are in line with their operating model and have measurable Return on Investments (ROI). Technology is a key component of this step and Schneider delivers a solution it calls Zeigo Activate.

Supporting SMEs in the strategy process, Zeigo Activate looks at how business can align with decarbonisation, which can only be achieved methodically. This solution enables greater insight into operational functions, the effects that each potential improvement actions would have on the environment and bottom line, and sheds light on the things that businesses can manageably change to begin reducing carbon emissions in a step by step approach to ultimately reach the ambition they have set.

Zeigo Activate is destined to digitise this whole thought process to plan, act and track. It is usable regardless of your own Sustainability expertise and is designed to streamline the user’s action plan to become more efficient down to execution, by leveraging an open marketplace of service providers that can support you to carry any changes, such as switching out legacy technologies for more up-to-date ones or even adopting entirely new systems for renewable energy or power management. Leveraging this tool will enable SMEs and beyond to assess and eliminate their emissions in Scope 1 and 2, and Schneider is working to deliver Scope 3 reduction capabilities, which will likely require integration with inter-organisational data. “Simply by comparing business KPIs and adding Sustainability KPIs in the mix, you sustainabilitymag.com

SCHNEIDER ELECTRIC

start building a framework that is much better for decision making, because you see the possibilities. One solution may have a great impact on the climate, but a terrible impact on your business and its profitability,” says Kheradmand. “However, you may find a few more actions that have a similar impact on your footprint, but a much better, even profitable, business-friendly, business impact, ideally even a competitive advantage.” The idea explained by Kheradmand is to look for and focus first on sustainability ‘wins’ that are economically beneficial for the business—ultimately suggesting there could be a number of actions to take that present low or no impact commercially. At the end of the day, the aim is to limit impact rather than advocate for it. “I started testing this view with my customer category. Of course, we quickly found a few issues they wanted to address; we had quite a few successful campaigns 96

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with them and tangible examples to draw from onwards,” says Kheradmand. “The beauty of Schneider Electric is that we have so many solutions for the active management of building infrastructure, data centres, “active” being basically what we call technologies impacting the way an asset behaves during its operational lifetime.” What Kheradmand’s metaphor represents is the strategy taken to cement some sustainable processes that are easily implemented while being embedded into the business, before focusing on much

larger programmes to tackle ever-evolving problems. His view is that maximising such actions at a large scale is where the focus should be first to fight climate change while continuing to create wealth and prepare for the next wave of investments. Building trust allows Schneider Electric to really make an impact on its ecosystem in a positive way with the aim to create a ripple effect whereby SMEs communicate with their suppliers and customers about their achievements and strategic planning and this creates a virtuous and self-

“ Simply by comparing Business & Sustainability KPIs together by initiative, you start building a framework that is much better for decision making” SOROUCH KHERADMAND

GLOBAL HEAD OF SUSTAINABILITY FOR BUSINESS ECOSYSTEM, SCHNEIDER ELECTRIC sustainabilitymag.com

“ Schneider is very active in decarbonising its operations, and I said ‘what can we take from that and actually apply it?’” SOROUCH KHERADMAND

GLOBAL HEAD OF SUSTAINABILITY FOR BUSINESS ECOSYSTEM, SCHNEIDER ELECTRIC

October 2023

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maintained momentum towards large scale decarbonation across the industry. “A strategy always starts from the market, and therefore customers. When you look at a strategy, it’s about understanding where you are today—where your market is today— where your current and potential new markets will be in the next five years, and also where you want to go in those five years, picking the right fights” says Kheradmand. Referring back to the need for data, it’s clear from this conversation that it’s the starting point for most actions taken in the name of emissions reduction. Moving forward, Schneider’s initiatives will seek to recognise sustainability as an imperative and share tips for management and

process implementation. To recognise these impacts, the company set up the Sustainability Impact Awards, which acknowledges the high achievers within its partner, supplier and customers networks. “We launched the Sustainability School— Chapter 1—in April earlier this year. The same year as for the Impact Awards, the first session of which was held eight months ago,” says Kheradmand. “Now, it’s about turning it beyond building that market awareness; beyond that education to actually go after tangible, measurable, replicable actions and claims. This means giving the tools and the means to our partners and customers in the market to act on their footprint.” To summarise these points, Schneider Electric is committed to partner support as it recognises both the demand for Scope 3 emissions reduction, but also the barriers that its ecosystem faces in meeting mere Scope 1 and 2 requirements. By bringing sustainability to the forefront of the business, naturally it will enable and incentivise its ecosystem to follow with more impact rippling down the supply chain. This impact will be achieved through a “toolbox”, a variety of easy to access digital tools, among which Zeigo Activate, the Sustainability School and much more, to enable companies in making emissions reduction more achievable and profitable. To recognise this process for both its challenges and its success, the Sustainability Impact Awards rewards great achievements seen by partners and customers that are willing to take positive action, with more programs underway to push this momentum forward.

sustainabilitymag.com

VMware:

Mobilising sustainability solutions

Nicola Acutt, Chief Sustainability Officer & VP of Environmental Social Governance of VMware discusses how the business is mobilising sustainability solutions WRITTEN BY: LUCY BUCHHOLZ

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he telecommunications industry is the backbone of the digital economy, connecting billions of people to education, jobs, social media, retail and entertainment. But this connectivity comes with a significant environmental cost, as greenhouse gas emissions continue to increase with our ever-growing reliance on digital services. But hope isn’t lost. The same spirit of innovation that developed digital technologies can be used to create a more sustainable telecom industry – one that embraces mobility to shift workloads toward renewable energy sources. The carbon footprint of telecommunications The telecommunications industry is a major contributor to global greenhouse gas emissions. It already accounts for up to 10% of the world’s energy usage, a number that will only increase as businesses and consumers use more digital devices and connect to more digital services. Some studies project that telecommunications will account for as much as 20% of global emissions by 2030. But what are the key drivers of telecom emissions? Data centres burn through enormous amounts of electricity, generating as much CO2 as the airline industry. Infrastructure and data traffic associated with the proliferation of 5G is another major factor that could double - or even triple the industry’s overall energy consumption. And we’re only beginning to grasp how artificial intelligence and machine learning solutions may push demand higher in the years to come. These are trends that cannot be ignored. Numerous telecommunications industry leaders have committed to achieving net zero or carbon neutrality as part of their sustainabilitymag.com

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corporate strategy. This commitment represents a significant opportunity, as even small changes in this space can make a huge difference in the global fight against climate change. One study from the Global e-Sustainability Initiative suggests that the telecommunications industry can support a 20% reduction in global greenhouse emissions by 2030 if it can find ways to work more efficiently. How can we mobilise sustainability solutions? Reducing carbon emissions across the telecommunications industry is a challenge we’re eager to take on at VMware. As an early pioneer and global leader in virtualisation, environmental sustainability has long been a byproduct of our services. When companies virtualise their operations, they benefit from lower costs, increased flexibility, and more resilience - as well as a reduced carbon footprint through avoided emissions.

“ The environmental challenges facing the telecommunications industry are significant. Fortunately, the innovation we’re seeing in green technology and mobility is extremely promising” NICOLA ACUTT

CHIEF SUSTAINABILITY OFFICER & VP OF ENVIRONMENTAL SOCIAL GOVERNANCE, VMWARE

We also take our own environmental stewardship seriously. VMware is proud to be a certified carbon-neutral company powered by 100% renewable energy. We’re also going a step further - integrating sustainability into our business model and making decarbonisation and carbon transparency key features of the technology solutions we provide to customers. This means leveraging VMware’s innovative engineers and partners to drive sustainability outcomes that benefit everyone. This shift does so much more than just help VMware achieve its own Environmental, Social and Governance (ESG) goals - it also helps our customers achieve their own. We’re like the centre of a Fibonacci spiral: when we create services that prioritise sustainabilitymag.com

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decarbonisation, those benefits flow out and are amplified exponentially as customers in countless industries around the world use our products. It’s positive environmental impact at scale. How is VMware reducing energy consumption? When we think about helping our customers in the telecommunications industry decarbonise their operations, we’re working on several interventions that have the potential to move the needle. Improving the energy and resource efficiency of Radio Access Networks (RAN) and data centres used by telecoms is a major priority. According to the NextG Alliance, the RAN accounts for more than half of all energy consumption in their network, while data centres are responsible for as much as 2% of the world’s total energy consumption according to some estimates. To reduce this energy consumption, VMware is developing numerous technologies that help networks run more efficiently. We’re currently testing network automation tools that deactivate cells in the network’s capacity when traffic is light (like

ABOUT VMWARE VMware is a leading provider of multicloud services for all apps, enabling digital innovation with enterprise control. As a trusted foundation to accelerate innovation, VMware software gives businesses the flexibility and choice they need to build the future. Headquartered in Palo Alto, California, VMware is committed to building a better future through the company’s 2030 Agenda.

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“ We’re now developing new mobility tools that will help organisations increase their use of renewable power sources” NICOLA ACUTT

CHIEF SUSTAINABILITY OFFICER & VP OF ENVIRONMENTAL SOCIAL GOVERNANCE, VMWARE

at night), reducing energy consumption and waste while maintaining coverage. We’re also testing solutions that can optimise the power consumption and performance of data centre cooling systems and virtualised Radio Access Networks (vRAN) - improving power usage effectiveness and reducing carbon emissions. How can we use mobility to shift workloads to renewable sources? Of course, reducing energy consumption is only a small part of the battle when it comes to improving the carbon footprint of the telecommunications industry. To really move the needle, we must reduce our dependence on energy generated from fossil fuels entirely. Many telecoms and other large network operators would prefer to shift more of their workloads on to renewable energy sources. But the reality is that renewable sources like wind and solar are intermittent, and that is a major hurdle for digital connectivity. A practical solution would be to provide coverage using a mix of power sources, with the ability to prioritise renewables when possible. sustainabilitymag.com

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On the surface, it might seem like this would require radically new technology capabilities. But the mechanics are quite similar to the mobility that VMware employs to help organisations shift workloads to different data centres when outages occur. We’re now developing new mobility tools that will help organisations increase their use of renewable power sources, respond more effectively to power grid fluctuations, and improve overall energy efficiency. Early tests indicate that this kind of intelligent workload placement 106

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and migration could reduce RAN network emissions by up to 52%. Challenges remain but the outlook is positive The environmental challenges facing the telecommunications industry are significant. Fortunately, the innovation we’re seeing in green technology and mobility is extremely promising. But in many ways, technology is the easiest part of the problem to solve. Policy, culture, processes, funding, profitability, and

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“ To reduce this energy consumption, VMware is developing numerous technologies that help networks run more efficiently” NICOLA ACUTT

CHIEF SUSTAINABILITY OFFICER & VP OF ENVIRONMENTAL SOCIAL GOVERNANCE, VMWARE

resistance to change are the biggest barriers to reducing our collective carbon footprint. To overcome these barriers and move the needle at scale, we will need a concerted, long-term effort from organisations around the world. The good news is that more business and industry leaders recognise these challenges and are actively working to break them down. VMware is proud to play a collaborative role in this process, and we look forward to moving our industry and the planet toward a net zero future. sustainabilitymag.com

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PROMOTING

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RADISSON HOTEL GROUP

BLE TRAVEL

WITH RADISSON HOTEL GROUP WRITTEN BY: LUCY BUCHHOLZ PRODUCED BY: GLEN WHITE

Radisson Blu Waterfront Hotel, Stockholm

RADISSON HOTEL GROUP

Inge Huijbrechts, Global SVP Sustainability, Security & Corporate Communications at Radisson Hotel Group, discusses the business’s sustainability journey

fter spending more than 12 years at Radisson Hotel Group, Inge Huijbrechts, Global Senior Vice President of Sustainability, Security and Corporate Communications, has witnessed first-hand how the company has developed into a business that is pioneering sustainability in the hospitality industry. Now in 95 countries, Radisson Hotel Group (RHG) is a fast-growing hotel company, with over 1,200 hotels in operation and development. The group is also home to ten amazing brands that span economy stays, all the way up to luxury lifestyle options, as well as hotels ranging from those with 50 rooms to others that have thousands. With even more growth plans for the future, RHG has set out a defined five-year plan with 29 initiatives. “The group has a very clear direction of where we are going in the future,” Huijbrechts says. “As a group, we’re focused on our continued expansion, while ensuring that we’re always improving our guest experience and exceeding their expectations. It’s also important for us to be an employer of choice as we have a lot of exciting roles to fill in the future.”

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Inge Huijbrechts, Global SVP Sustainability, Security & Corporate Communications at Radisson Hotel Group

RADISSON HOTEL GROUP

Radisson Blu Iveria Hotel, Tbilisi City Centre

“ The Hotel Sustainability Basics programme is a great way of getting all the hotels on the same page to start their sustainability journey” INGE HUIJBRECHTS

GLOBAL SVP SUSTAINABILITY, RADISSON HOTEL GROUP

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Although RHG has set a number of targets to boost its own sustainability journey, the group has also made a number of strategic partnerships to ensure it’s helping the industry as a whole progress. “We are part of some key associations, such as the Sustainable Hospitality Alliance, the World Travel and Tourism Council (WTTC), and the Energy and Environment Alliance to ensure we’re playing our part in helping the hospitality sector become more sustainable,” Huijbrechts says. “Each organisation has its own strengths to occupy a bigger ecosystem of change. As

Founded in

1960 RHG wants consistency in sustainability, the business ensures it pulls together resources – even from its competitors – to make tools available for the industry and to drive a more sustainable, equitable future.” Think People, Think Community and Think Planet With Scandinavian roots, sustainability and responsible business have been at the top of RHG’s agenda for a long time, centred around three main pillars: Think People, Think Community and Think Planet.

Think People ensures the group is looking after and taking care of people in its hotels and supply chain, Think Community works to safeguard those in the community including individuals in underprivileged groups, and the Think Planet pillar focuses on minimising the group’s footprint, while forging strong relationships with suppliers. “Our work with the community focuses on ensuring that our hotels are engaged in the community,” Huijbrechts says. “It’s not just a matter of making donations, but it’s also a matter of making sure that sustainabilitymag.com

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INGE HUIJBRECHTS TITLE: GLOBAL SENIOR VICE PRESIDENT SUSTAINABILITY COMPANY: RADISSON HOTEL GROUP INDUSTRY: HOSPITALITY LOCATION: BRUSSELS, BELGIUM Inge Huijbrechts is Global Senior Vice President Sustainability, Security and Corporate Communications for Radisson Hotel Group - developing the Sustainability and Safety and Security programs in the Group’s 1,200+ hotels in operations and development in 95+ countries. Together with her team, she lays out the strategy for Responsible Business from build to operations and keeps employees globally engaged in everyday Responsible Business actions. In April 2022, she was one of the key leaders involved in the definition and launch of the Hotel Sustainability Basics, an initiative to set a common, clear and transparent definition of hotel sustainability to drive responsible travel & tourism.

“ We have defined our ‘Build Planet’ guidelines, which focus on the highest standards of sustainability available” INGE HUIJBRECHTS

GLOBAL SVP SUSTAINABILITY, RADISSON HOTEL GROUP

through the hotel business itself, we are supporting local communities through employability opportunities.” “We work in many countries to create employability opportunities, either for jobs directly in our hotel in partnership with our hotels or other hotels in the destination, to encourage more people to continue both their personal and professional development. Sometimes, when underprivileged groups go through an employability programme, they’re able to get a job straight away, but other times, they realise they can pursue a hospitality management course, for example, and start higher up the ranks.” However, the main focus is the group’s net-zero transformation. In 2022, RHG pledged to become net zero by 2050 and has since published approved sciencebased targets. Huijbrechts explains that these initiatives put RHG among the biggest

companies in the world with concrete net-zero targets. Additionally, since the COVID-19 pandemic, RHG has pledged to reduce its absolute carbon emissions by 46% – almost cutting them in half. Huijbrechts explains that RHG is taking a number of steps towards reaching its net zero targets, including prioritising renewable energy and electricity. The business also operates as an ‘asset light’ company, which means the group doesn’t own any of the buildings that it operates in. What’s more, to improve its supply chain, the business began work with the sustainable ratings company, EcoVadis to acquire a rating. Initially, RHG was certified with a silver level and is now close to obtaining gold. This tool enables RHG’s procurement teams to focus more on responsible sourcing while checking that its regional and main suppliers meet the EcoVadis evaluation.

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Since the COVID-19 pandemic, RHG has pledged to reduce its absolute carbon emissions by 46%

Stakeholder trust with Build Planet guidelines As RHG doesn’t own any of its hotels, the companies that do are among a key group of stakeholders for the business, and approximately one-third of RHG is a growing franchise. “With external parties, we focus on renewable energy, 118

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green operations and green buildings,” Huijbrechts says. “Our messaging towards owners is specifically about the net zero transformation and how they can green the buildings with our support. “We have defined our ‘Build Planet’ guidelines which focus on the highest standards of sustainability available to bring

Radisson Hotel Suzhou (China)

buildings up to the standards of BREAM, depending on where they are in the world. Hotel owners can then choose one of these certifications directly, to ensure any asset they have in their portfolio will be BREAM certified, for example.” Hotels that are unsure of how to navigate this can use the Build Planet guidelines as

“ With external parties, we focus on renewable energy, green operations and green buildings” INGE HUIJBRECHTS

GLOBAL SVP SUSTAINABILITY, RADISSON HOTEL GROUP sustainabilitymag.com

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a step-by-step reference guide on how to achieve these standards. Owners are also supported by RHG with training options. RHG’s other key stakeholder group is its employees. “We have a very active network of employees engaged in sustainability,” Huijbrechts says. “First of all, we have two key training platforms available to everyone – one is leading responsible business and the other is living responsible business. These are both part of a new hire orientation as well as a repetitive training, meaning all employees are aware of sustainability targets and are engaged in different campaigns.” Last but not least, Huijbrechts discusses the customers, as stakeholders. “Year on year, surveys highlight that the demand for sustainable travel is increasing,” she says. “However, it’s also highlighted that customers don’t necessarily know what

it means for a hotel to be sustainable, and how to recognise them.” To counter this issue, RHG launched the ‘Hotel Sustainability Basics’, in 2022, together with WTTC and the Sustainable Hospitality Alliance. The Hotel Sustainability Basics was formed by a number of different parties agreeing to a set of twelve criteria that a hotel needs to fulfil in order to market itself as sustainable. The programme marks the 120

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Radisson RED Use more image Aarhus, Denmark captions as often as possible

starting point of a hotel’s sustainability journey and is linked to a verification programme to eliminate any potential greenwashing. “The Hotel Sustainability Basics programme is a great way of getting all the hotels on the same page to start their sustainability journey,” Huijbrechts explains. “We also communicate to our guests about this, so when they see the logo, they’ll know that they’re staying at a hotel they can trust is sustainable.”

“ The group has a very clear direction of where we are going in the future” INGE HUIJBRECHTS

GLOBAL SVP SUSTAINABILITY, RADISSON HOTEL GROUP sustainabilitymag.com

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Breaking ground in the DEI space Although hospitality is a diverse industry by nature, RHG has still made it a focal point to prioritise DEI initiatives. To do so, the group promotes local talent and encourages more women to take senior leadership positions. The group has pledged to reach a 50/50 gender split in senior leaders by 2050. “We need to show women that we do support them by providing them with 122

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the right encouragement, mentors and educational tools, but we also need to build their confidence in knowing that they can have a healthy work-life balance,” Huijbrechts remarks. In doing so, Huijbrechts explains that the group has “taken away some rules” to ensure the hiring process is fair and inclusive. For example, RHG used to have an unwritten rule in which new General Managers were positioned

Radisson Blu Hotel, Dubai Deira Creek

in challenging, more remote locations, which can be difficult for those raising a family. Realising this, the group removed the rule, to ensure every candidate and employee had a fair chance of reaching success. Through these operational changes, RHG has seen an increase in the number of women joining the company and is confident that this will continue. Another incentive added to attract more women to join the business was RHG’s

move to expand paid maternity leave in certain areas, for example, in the UAE. The group also had the first-ever female General Manager in Saudi Arabia, who was a Saudi native. “This was a groundbreaking achievement,” Huijbrechts exclaims. “Before we hired her, we actually needed to check behind the scenes with the government to ensure we were legally allowed to do so.” By employing just one woman from Saudi Arabia into a leadership position, more women were encouraged to take similar roles. Now, more than 200 women are in leadership positions in Saudi Arabia, something that wasn’t possible before. In the future, Huijbrechts and RHG look forward to creating even more groundbreaking revelations, both in terms of DEI and sustainability, to ensure the business continues on as an industry leader.

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SAP’s Richard Howells and Etosha Thurman discuss the importance of responsible sourcing, while highlighting how technology is impacting the sector WRITTEN BY: LUCY BUCHHOLZ

mbracing responsible sourcing is known to unlock new growth opportunities for businesses. Climate change, circular economies, ESG and sustainability have all become business priorities over the past few years, with global supply chains sitting right in the middle of these issues – both as a major contributor to the problem and as an area of focus for improvements. Businesses must, therefore, purchase materials and products from companies that can show that they have good sustainability practices, from both a labour and manufacturing point of view. The benefits of responsible sourcing and sustainable packaging Responsible sourcing has been shown to influence consumers buying decisions, with studies suggesting that up to 70% of consumers would pay more for sustainablyproduced goods. Businesses must therefore meet the increasing demand from consumers for products that are both environmentally and socially responsible. Yet businesses are still learning when it comes toimproving their responsible sourcing process, with Richard Howells, Vice President of Solution Management for Digital Supply Chain at SAP, describing it as an “evolving landscape,” allowing businesses the opportunity to combine sustainability initiatives with efficiency efforts and customer demand. sustainabilitymag.com

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

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“While the ‘Amazon Effect’ has led to heightened consumer expectations for quick delivery, there is a similar demand for ecofriendly products,” Howell says. “In fact, 90% of Gen X consumers say they’d be willing to pay more for sustainable items – compared to 34% just a couple of years ago. “In today’s market, for businesses to prosper and expand they must discover novel approaches to meet rising demands for ESG standards, placing greater emphasis on responsible sourcing.” Responsible sourcing within procurement For businesses to build a responsible and resilient supply chain, leaders need to acknowledge that procurement is the first step. “The procurement team begins the sourcing process by evaluating potential

goods and materials that would make up the products made and distributed in the supply chain,” says Etosha Thurman, Chief Marketing & Solutions Officer, of Intelligent Spend and Business Network at SAP. “In their evaluation, they are considering the environmental, societal, and economic impact of sourcing the materials. For example, potential risks with energy efficiency, water and land usage, and hazardous materials.” To ensure businesses adopt responsible sourcing, leadership needs to set out clear definitions which align with the ESG goals of the organisation. Procurement professionals must also be educated about the necessary steps to ensure the goods and services under consideration meet the criteria. sustainabilitymag.com

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“90% of Gen X consumers say they’d be willing to pay more for sustainable items – compared to 34% just a couple of years ago” RICHARD HOWELLS

VICE PRESIDENT OF SOLUTION MANAGEMENT FOR DIGITAL SUPPLY CHAIN, SAP

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Technology’s role in responsible sourcing In today’s rapidly evolving business landscape, technology stands as a pivotal ally in driving sustainability across the source-to-pay (S2P) and procure-to-pay (P2P) processes. By seamlessly integrating innovative solutions, organisations can navigate strategic sourcing, procurement, and supplier relationships while adhering to responsible and ethical practices. “Technology can help organisations follow sustainable practices at every stage of the S2P and P2P process,” Thurman says. “In strategic sourcing, the right solutions can help

analyse current and future spending, find and source from suppliers, ensure compliance and reduce risk with sustainability in mind. SAP Ariba Sourcing is a good example of a solution that enables users to prioritise suppliers that align with ESG goals.” During the P2P process, Thurman reminds organisations that it is important to use solutions that help guide business users to make risk-aware and sustainable purchases, ensuring contract compliance with sustainable procurement policies. “The guided buying capability in SAP Ariba Procurement solutions can help guide sustainabilitymag.com

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employees to purchase from sustainable suppliers,” she adds. “Technology can also be a valuable tool in nurturing relationships with sustainable suppliers. Taulia’s Sustainable Supplier Finance solution allows users to reward suppliers that share their ESG qualifications with early payment incentives. What’s more, to build a sustainable and risk-resilient supply chain, businesses need to establish strong relationships with key suppliers, which must be diverse. The supply chain data then needs to be monitored and analysed in real time, and investment needs to be made in technologies that can enhance supply chain visibility and agility. “Efficient, effective technology can help businesses acquire and manage the data and information they need to measure compliance, minimise risk and boost sustainability,” Howells says. “Businesses must examine their value chains comprehensively, from sourcing raw materials to understanding the end product’s lifecycle. By adopting technologydriven solutions like blockchain and IoT, companies can ensure that their sustainability efforts extend beyond the surface level to every aspect of their operations.” What’s more, SAP works with its partners to provide efficient solutions to business operations, while recognising the importance of monitoring and measuring not only cost, speed, profitability and customer service, but increasingly, emissions, waste, inequality and other sustainability and risk KPIs across the supply chain. This can be accomplished by connecting every process, contextualising every decision and collaborating with 130

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What challenges do companies face when trying to adopt responsible sourcing practices? “Companies looking to enhance their ESG policies with responsible sourcing must be ready to navigate supply chain vulnerabilities, and supplier relations and manage overall transparency and resiliency for consumers of the endproduct,” Howell says. “Regulators’ oversight of supply chain issues is increasing around the world as well. Several European countries and the United States have recently passed legislation mandating due diligence in supply chains, while the European Union and Canada have proposals under consideration. Though many global companies are already acting towards maintaining a sustainable and transparent supply chain, companies must prepare for the local implications of legislation.”

SUPPLY CHAIN

“For businesses to prosper and expand they must discover novel approaches to meet rising demands for ESG standards” RICHARD HOWELLS

VICE PRESIDENT OF SOLUTION MANAGEMENT FOR DIGITAL SUPPLY CHAIN, SAP

partners without obstacles. However, there is no one-size-fits-all solution for supply chain complexities. Howell explains: “Buyers on SAP Business Network can choose vendors based not only on price and availability but also on human rights records and third-party sustainability ratings. Suppliers share human rights questionnaires to their profiles on SAP Business Network, where buyers can access them. Buyers are automatically notified any time a supplier they are doing business with updates their questionnaire. This saves suppliers time and helps buyers easily prepare for due diligence processes.” Final thoughts Embracing responsible sourcing is paramount for businesses aiming to navigate

the evolving landscape of sustainability, satisfy consumer demands and enhance their growth prospects. Through integrating technology, fostering diverse supplier relationships and monitoring supply chain data, organisations can achieve a holistic approach to ESG standards, ensuring lasting positive impacts on both their operations and the wider world. In a rapidly changing business environment, responsible sourcing stands as a gateway to sustainable success. By aligning with ESG goals, leveraging technology-driven solutions, and nurturing supplier relationships, businesses can forge resilient supply chains that not only meet current demands but also pave the way for a more environmentally and socially conscious future. sustainabilitymag.com

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EVENT REVIEW

For those that missed the highly acclaimed SUSTAINABILITY LIVE LONDON last month, delve into this recap to discover the highlights of what was missed

WRITTEN BY: LUCY BUCHHOLZ

USTAINABILITY LIVE London, the leading ESG, net zero and sustainability event in London, took place on September 6th and 7th 2023, at the Business Design Centre (BDC). Welcoming almost 2,000 in-person participants and over 5,000 virtual attendees, the two-day conference united influential figures from diverse industries, allowing them to exchange groundbreaking ideas, proven solutions and actionable insights for a sustainable future. Those who missed it can watch the highlights on Sustainability Magazine’s YouTube chanel, along with the keynotes, firesides and panel discussions. Likewise, we complied a quick summary for those who were unable to attend the event and who haven’t yet had the chance to catch up on the action. SUSTAINABILITY LIVE London: Day one Day one of SUSTAINABILITY LIVE 2023 was as diverse as the industries that the eventimpacts. Many speakers and attendees were keen to share their thoughts, while influencing companies and raising awareness of the impacts that businesses can have on ESG. sustainabilitymag.com

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EVENT REVIEW

Scott Birch, Chief Content Officer, BizClik

Kickstarting the third London-based sustainability conference by BizClik, Scott Birch, Chief Content Officer, and Neil Perry, Head of Multimedia, hosted the main stages of the event. Guest speakers joined the show from a number of leading organisations to discuss more updates to their sustainability strategies, providing some impactful insights for business attendees in the audience as well as viewers watching virtually. Some of the key points made throughout the day were related to electrification, finance as a sustainability incentive and electric vehicle (EV) adoption to transform the future of mobility. The sheer scale of interest in sustainability could be seen and counted as the stages spilled into the corridors with more than 900 in-person attendees and 2,100+ viewers online. From the headline sponsor Schneider Electric, Steve Smith, Head of Global Marketing: Energy Management Thought Leadership and Communications, said: “It’s great to be here at Sustainability LIVE for the third year in a row and also for Schneider Electric to be recognised for the second consecutive year as number one in the Sustainability Magazine Top 100 Companies.

Neil Perry, Head of Multimedia, BizClik

“I spoke on the panel titled ‘Net Zero and Planet’. Two of the companies spoke on net-zero emissions reduction while the others were focused more on the planet perspective. Nevertheless, these two topics really aligned throughout the session.” On stage one, Smith opened the show with a rundown of the past years of electrical transformation to electricity 4.0 summarising the current transition state in industrial sectors. Schneider Electric being a key organisation shaping the way that energy infrastructure is supplied and constructed to support an all-electric future powered by sustainable energy. sustainabilitymag.com

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EVENT REVIEW Adam Elman, Head of Sustainability Europe, Middle East and Africa, Google

Sustainability LIVE: Day one recap WATCH NOW

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Magali Anderson, Former Chief Sustainability & Innovation Officer, Holcim

Sustainability is driven by financial incentives With a number of initiatives taking place, the key thing now is to scale up efforts to reduce emissions and build renewability into global infrastructure. One of the main points was how finance plays a role in incentivising companies to commit to sustainable actions. As explained in one of the first keynotes of the day by Magali Anderson, Former Chief Sustainability & Innovation Officer at Holcim, financial commitment is a great way to get more members of a company on board with climate actions. An example was given, which divulges Holcim’s strategy to meet its ScienceBased Targets by 2030. If the company fails to meet its goals it will pay a penalty as collateral to raise the profile of ESG in the business. sustainabilitymag.com

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THANK YOU TO

OUR SPONSORS Schneider Electric aims to empower all to make the most of energy and resources, bridging progress and sustainability for all. The business believes that access to energy is a basic human right. This belief fuels the company’s mission of driving digital transformation by integrating worldleading processes and energy technologies to realise full efficiency and sustainability opportunities for other businesses. To find out more about our full list of sponsors, please click here

BECOME A SPONSOR IN 2024

Execution is key to driving sustainable efforts Aside from incentives, the real trend among the executives at the event is action. Talking individually with the speakers, many of them explained that there is an immense need to execute plans, which is also driven by collaboration – highlighted by Talia Goldman, ESG Manager at Colpac. Speaking on how business can make a critical impact on the environment was Beccy Speight, Chief Executive Officer of the Royal Society for Protection of Birds (RSPB), who explained that commerce can be incredibly impactful on how successful the organisation can be in supporting wildlife.

EVENT REVIEW

“It’s great to be here at Sustainability LIVE for the third year in a row and also for Schneider Electric to be recognised for the second consecutive year as number one in the Sustainability Magazine Top 100 Companies” STEVE SMITH

HEAD OF GLOBAL MARKETING: ENERGY MANAGEMENT THOUGHT LEADERSHIP AND COMMUNICATIONS, SCHNEIDER ELECTRIC

The EV transition conversation between industry experts Addressing one of the most crucial transformation topics of our time, Sam Clarke, Chief Vehicle Officer of GRIDSERVE, Peter Gallagher, Commercial Director of Extreme E, and Martin Kochman, VP of Customers and Industries at Hitachi, all spoke in a panel discussion that unpacked the industry, discovering next steps for the future. Electrification was a key theme of the event, which is a topic that touches many other sustainability businesses that are driving the expansion of EVs or purely adopting them. Nevertheless, an important topic for the viewers in-house and one that will remain.

SUSTAINABILITY LIVE London: Day two On the second day of Sustainability LIVE 2023, the topics of conversation shifted towards technology and the influence that businesses and role models have in supporting diverse teams to become successful in some of the in-demand industries. Further to this, many of our speakers talked about circularity as a key corporate initiative for businesses, ethical investment and how they can implement them in their strategies. As speakers and attendees settled into the event format, the stages were full of questions that touched on a broad range industryspecific areas. sustainabilitymag.com

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“ I’ve been in sustainability for over 20 years as a lawyer and it’s been a fantastic career, it’s been dynamic, innovative and full of fantastic people who all want to make a difference” MICHELLE DAVIES

GLOBAL HEAD OF SUSTAINABILITY, EY

One of the key moments of the day – and an early start for many – was an exclusive panel on Women in Sustainability, leaving then stage one host Scott Birch with minimal work to keep the conversation going. The all-female panel spoke of some key points both in terms of women representing the sustainability portion of business but also female leadership as a whole. All of the panellists were keen to share a new perspective on work-life balance, stressing that each person and family is different. On the panel was Michelle Davies, Global Head of Sustainability at EY, who spoke with us backstage. “The Women in Sustainability panel was really to show them that there are wider opportunities in sustainability. I’ve been in sustainability for over 20 years as a lawyer and it’s been a fantastic career, it’s been dynamic, innovative and full of fantastic people who all want to make a difference,” says Davies. 142

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Michelle Davies Global Head of Sustainability, EY

“Sustainability LIVE is a great event because it has such a diversity of topics, hitting some of the most important areas.” Casting a bigger spotlight on the circular economy Looking into some of the key themes in day two, circularity was certainly a strong contender discussed across a few different panels and keynote sessions. Additionally, SUSTAINABILITY LIVE welcomed a diverse group of people from the packaging industry and food wholesale to construction and engineering, and of course a major influencer in this topic, Gartner. • Dr Ragini Roy, Director of Global Programmes and Impact at the Centre for Big Synergy, London • Oleseaden Lale, Sustainability Manager at Wilson James • Julie Owst, Head of Sustainability at Bidfood • Sarah Watt, Sustainability Change Leader at Gartner sustainabilitymag.com

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Sustainability LIVE: Day Two recap WATCH NOW

Sam Clarke, Chief Vehicle Officer, GRIDSERVE

From speaking with the panel, it became clear that their views are aligned on how to bring circularity into a number of industries with collaboration and partnership being a key driving of this among industries where waste is a major hurdle. In terms of packaging, we learned that pricing is a useful tool to encourage the reuse of products, having recognised that higher value goods are treated with more care in comparison to disposable products. What does a sustainable future look like with generative AI? It’s almost impossible to discuss any form of business events or actions without considering the impacts of generative artificial intelligence (AI) on the way that organisations conduct their corporate strategies.

While this is a very new area of exploration for a number of businesses, Sustainability LIVE was able to host a dedicated panel on generative AI with support from industry experts Sandeep Chandna, Chief Sustainability Officer at Tech Mahindra, Jillian Moore, Sustainability and Global Advisory Lead at Avanade, and Michelle Davies, EY. Making finance sustainable for corporate growth Echoed across the two-day event was finance, which touches upon a few areas. Firstly, there’s the idea of utilising financial incentives to get businesses moving, then there’s the conversation of ethical investment and sustainable finance driving social prosperity throughout business activities. Joining in this was Cornelia Andersson, the London Stock Exchange Group’s Head of Sustainable Finance, Data & Analytics, as well as Sören Muller, COO of Water150, and Faye Bennett, CSO of Rio ESG. With various components to a sustainable economy, businesses and financial institutions have their

respective roles to play in delivering social empowerment projects, decarbonisation initiatives, and technology innovations – such as the imminent shift to electric vehicles (EVs) discussed by James McKerney, Head of Policy & Public Affairs at Pod Point – finance is the enabler of new activities that meet climate needs. Educating generations on sustainability and business With many facets, it appears the speakers all refer to a single notion – sustainability is embedded in everything. Often seen as a buzzword, organisations are now more aware than ever of its importance, which will allow them to integrate sustainability conversations into all commercial endeavours. The key to a unified approach globally is to start at school, encouraging more learning around the planet and commercial impacts to help new generations understand the important role that companies play in climate change.

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