TALKING HEADS Karen Boswell
Karen Boswell is managing director of Baxi Heating UK and Ireland
A new culture for the energy revolution Taking the reins of any company during the pandemic would have tested any new managing director, but Karen Boswell has set out a clear vision for the future of Baxi Heating
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he similarities between a rail system and a heating system may be hard to spot at first glance but trying telling that to Karen Boswell. The MD of Baxi Heating UK and Ireland can see many parallels between her previous company, Hitachi Rail, and one of the best-known names in the UK heating and hot water industry. “Both sectors are being driven by decarbonisation and new digital technologies,” she told EiBI in one of her first interviews since taking up the role last September. “Customers in the rail industry are demanding digitalisation. For example, remote diagnostics are now being made possible by big data lakes. This aligns nicely to heating and hot water solutions. We face many of the same challenges.” The main challenge for Baxi and the heating industry is to adapt to the fastapproaching energy transition. “We have to equip ourselves quickly and deliver the products our customers need for the future,” she states. One of Boswell’s main priorities will be to attract the best talent to drive the company forward. “The rail industry has done some very good things to drive training and inclusion. There are generational changes that are happening and you have to be more aware than ever about how people will be attracted to your industry.” This means eliminating ageism as well as giving responsibility to a younger generation who may know more about one aspect of the business, she believes. “Over the years I’ve been on a lot of boards and on one occasion I recall we were discussing a new product. We had to bring in a younger person to explain the technology. That was a lesson to me. You have to talk to a 20-year-old if you want to get the best out of social media, for example.” Much is spoken about the skills gap in the energy and HVAC industry but it’s something Boswell has experienced in the rail industry. “Driving a high speed train
Boswell: 'by 2025 every product we make will work with low-carbon energy'
requires a very different skill set,” she states. “In the same way a gas engineer might feel intimidated about he or she might look after a hydrogen boiler. It’s not that they can’t do it, it’s just they don’t know about it. It's all about getting more people more comfortable around these new technologies.” Boswell does not believe that any one technology, whether it be air source heat pumps or hydrogen, is going to dominate the energy of the future. “It’s not going to be one thing or another but what we don’t want is an industry that makes heat unaffordable. That could push up fuel poverty.” Baxi is investing in hydrogen trials that are now taking place in the UK. “Our team have a mandate to be a part of these projects and come up with products that will answer some of these challenges. Hydrogen networks will be an easy switch. We have carried out some focus groups with installers. We have found that there is a group of younger people coming through who think that this is an exciting time and are invested in this.” The energy transition is reflected in a new company strategy called ‘Change with Energy’ that Boswell unveiled to the company in January and is designed to embed sustainability into every aspect of the organisation’s culture. “By 2025 every product we make will
work with low-carbon energy and by 2030 all our operations will be carbon neutral, Boswell states. “We will reduce energy and waste and operational efficiencies. We’ve made a start on the electrification of our vehicle fleet. However, carbon offsetting will be a last resort.” She believes that there are four megatrends that will shape Baxi in the coming years. The first is how we treat or planet. “Home owners and businesses are making conscious decisions around their supply chain and its sustainability. Second, COVID has accentuated and accelerated the shift towards digitalisation. We are seeing more remote customer interaction with digital tools for end users and installers.” As well as global initiatives, Boswell expects Baxi to build on the Government’s Ten Point Plan. “It’s inevitable that owners are going to replace their existing heating systems with modern technologies.” The final megatrend that Boswell sees as shaping Baxi is a ‘my country first mentality.’ “This has been accentuated by COVID. There was a trend towards globalisation but now countries are defining their own national priorities," she states. "These are four megatrends that keep changing and customer needs are changing too. What we want to do is identify the best low-carbon solution to suit them. Some will be suitable for air source heat pumps and some for hydrogen. There will be life in the gas market yet but our boilers have to be future proofed and we must be able to convert them in around half an hour.” Despite the pressures that COVID has placed on the industrial and commercial market, Boswell is optimistic that the market will rebound strongly. Baxi continued to manufacture throughout 2020 turning it to the company’s advantage. “We showed some great innovation in that time, working for example with the Nightingale hospitals. We have made a strong start to 2021 and it might be a strong time as the hospitality sector opens up again.” She also sees great potential in offering heat as a service. “Rolls Royce started it many years ago and it has happened in the railways on a pay by the mile model. So why not pay by the hour for heat?” Boswell is already positioning Baxi to take advantage of the energy transition. “This is a big market and there is big change coming. I want us to have this reputation for being innovative and coming up with smart solutions for our customers.”
34 | ENERGY IN BUILDINGS & INDUSTRY | MARCH 2021
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