Sustainable Companies
Generative AI: Shaping the future of business
How CEOs are redefining shareholder value
Exclusive Interview: Antonio Pietri, CEO of AspenTech
Is your company ready for Scope 3 reporting?
A steady decline for first-class air travel
Julia Anas, CPO at Qualtrics, outlines her people-first philosophy
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EDITOR-IN-CHIEF
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EDITORS
TOM CHAPMAN
CHEIF DESIGN OFFICER
MATT JOHNSON
HEAD OF DESIGN ANDY WOOLLACOTT
LEAD DESIGNER
MIMI GUNN
FEATURE DESIGNERS
SOPHIE-ANN PINNELL
HECTOR PENROSE
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ADVERT DESIGNERS
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TOM VENTURO
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Transformation can be both a challenge and a privilege. Regular readers of Business Chief will note that this issue marks the start of a new chapter in the 100-issue history of our brand, as we expand to now include four regional editions for truly global coverage.
You are reading Business Chief US & Canada, and from today you can also enjoy insights and executive success stories from Business Chief Middle East & Africa. From next month, we switch to Business Chief Asia & ANZ and Business Chief UK & Europe.
These four editions combine into a comprehensive deep dive into the challenges and opportunities facing CEOs, founders and public sector leaders right now, and in the future.
From Generative AI to Gen Z, green finance to black swans, Business Chief 4.0 has you covered with exclusive interviews, roundtable discussions, and the latest research and reports.
Striking a work-life balance, you will also see more Lifestyle content for our executive audience, especially on our reimagined websites.
Plus, there’s more to come, with two new titles joining the Chief portfolio in November and December. Exciting times.
SCOTT BIRCH Chief Content Officer, BizClik scott.birch@bizclikmedia.com
AI to Gen Z, green finance to black swans, Business Chief 4.0 has you covered
40 LEADERSHIP
The changing face and future direction of shareholder value
50 PEOPLE
People over profit is steering business in a new direction
62 SUSTAINABILITY
Why companies should be preparing for Scope 3 reporting
74 TECHNOLOGY
Possibilities endless as generative AI takes centre stage
86 LIFESTYLE
Are we witnessing the demise of first-class air travel?
96 FARADAY FUTURE
The leader in luxury electric vehicles
114 CITY FOCUS Toronto
Energy efficiency is sometimes thought of as a trade-off, with some business leaders still believing that adopting environmentally friendly technology will come at the expense of performance. This is simply not the case.
Significant advances and innovations in recent years mean that today’s most energyefficient industrial equipment, machinery, and buildings – when powered by the right combination of electric motors and drives – also deliver peak performance.
This modern technology comes with a slightly higher upfront cost than continuing to use an existing solution, but it has a greatly reduced total cost of ownership (TCO), making it a wise investment that soon pays for itself in terms of energy savings.
An immediate step that facilities can take is fitting electric motors, which consume more than 45 percent of all electricity generated worldwide, with variable speed drives (VSDs).
Tuomo Hoysniemi Division President, Drive Products ABB
VSD technology ensures that rather than running at full speed all the time, motors can be controlled to run at the exact speed required by the process. In applications that continually vary the motor’s speed, such as pumps, fans and compressors, this typically lowers energy consumption by 25 percent or more.
The use of a drive also enables a motor to intelligently respond to its working conditions. For example, a drive can adjust the output based on whether it is moving a heavier or lighter object, change the speed of a fan in response to temperature, or maintain a constant speed as load changes. This results in better performance, greater process control and higher quality output.
In fact, our experts estimate that over half of all industrial motors could benefit from operating with a VSD. Yet currently, only around a quarter actually use a drive. This is a wasted opportunity, since simply pairing an existing motor with a drive offers a significant opportunity to boost energy efficiency.
Further efficiency is possible by selecting today’s most efficient motors – those featuring synchronous reluctance (SynRM) technology and designed for use with a drive. They also run at a lower temperature, making them more reliable and longer lasting. In addition, with fewer moving parts, SynRM motors are easier and cheaper to maintain.
Drives and high efficiency motors –both in existing and new applications – directly benefit a business.
The greater energy efficiency produces significant savings, as electricity is the greatest operating expense (OpEx) for most industrial facilities. Businesses should consider fitting existing motors with drives or replacing them with modern motordrive packages – even before they have reached the end of their lives, as replacing them will result in overall savings.
The same logic applies to the payback period, which is typically only a few years. However, when energy prices are high, the payback period can drop to a matter of months. At the same time, today’s motor-drive systems are also more reliable and reduce wear on the system. In vital, fast-moving industries, such as marine, transportation and agriculture, where each minute of downtime can be extremely costly, this reliability produces quantifiable financial benefits.
As businesses and consumers become more environmentally conscious, energy-efficient businesses will have a competitive advantage.
A genuine commitment to sustainability and decarbonization is good for a business’s reputation. Showing a clear decrease in power use – and associated emissions –due to investment in energy efficiency is a great way to demonstrate that a business is taking concrete steps – especially to customers that are willing to pay a premium for sustainably produced goods.
Investing in efficiency is also an effective way to futureproof against potential regulatory requirements and secure a business’s environmental, social, and governance (ESG) credentials. In the EU, for example, new minimum motor and drive efficiency standards are currently coming into effect as part of the Ecodesign Regulation, and other regions are sure to follow.
Demand for low- and zero-carbon production provides another compelling reason for businesses to embrace energy efficiency. It is broadly understood that more efficient equipment brings us closer to Net Zero, but business leaders need to understand that it also brings significant financial, operational and reputational benefits.
To quickly and easily estimate the potential energy and cost savings for your facility, try ABB’s EnergySave Calculator
To find out more about “Better performance. Less energy.” please visit: solutions.abb/drives-believing
Arlington, Virginia, US
Amazon’s HQ2 remains a work in progress but, if artist’s impressions are anything to go by, the finished product will be nothing less than breathtaking. The site is set to be dominated by The Helix, a spiral-shaped building in the northeast corner of PenPlace which will undoubtedly become an Arlington landmark. The interior of the Helix will provide both formal and casual meeting spaces in an environment filled with more than 25,000 sq ft of planting areas and living walls, while the exterior features two paths where employees can meet with colleagues or simply take in their stunning surroundings.
Antonio Pietri, President and CEO of AspenTech, outlines his leadership principles and explains the growing importance of carbon capture
WRITTEN BY: TOM CHAPMAN
For those who don’t know about AspenTech, how would you describe the company’s core activities?
At AspenTech, we combine engineeringfirst principles and deep domain knowledge with cutting-edge digital technologies like high-performance computing, AI and edge connectivity to help customers optimise their assets and operations.
The foundation for virtually all our sustainability efforts is centred around the ‘dual challenge’: helping customers meet the increasing demand for resources from a growing population with rising standards of living, while also addressing their sustainability goals.
I like to think about my role as CEO as being similar to that of the head coach of a sports team. It’s up to me (in consultation with our board) to set our corporate direction, identify top priorities and set goals to reach for as we advance in a particular direction. An important part of the role is putting the right people on the field, but it’s also about aligning the organisation around a set of common goals.
I also firmly believe diversity is among the most important differentiators in any company. The most innovative ideas don’t come from everyone thinking the same way, but happen when people of varying backgrounds,
experiences and perspectives work together in an atmosphere of mutual respect.
The role of CEO has become even more challenging over the past few years. Very few, if any, executives could have foreseen the disruptions we would be facing: a worldwide pandemic, the challenges of working remotely, supply chain issues and more. My challenge is to build an organisation that can weather those disruptions, whatever they might be.
To do it, we focus on organisational excellence, investing in our human capital, building a strong, supporting culture and remaining agile. Making those commitments requires time, dedication and communication, but the end result is worth the effort.
I firmly believe diversity is among the most important differentiators in any company
Carbon capture is a critical technology for companies striving to address the dual challenge I referred to earlier. It’s clear many governments and companies have taken a similar view as, around the world, the number of carbon capture projects has grown dramatically.
Generally, carbon capture works in one of two ways: point-source systems remove CO2
from industrial flue gases before it enters the atmosphere; and direct air capture systems pull CO2 directly from the atmosphere. Once captured, CO2 is compressed and can be sent to other locations for a range of uses, called carbon capture and utilisation (CCU), or injected into underground storage sites, called carbon capture and storage (CCS).
Over the last decade, carbon capture projects have attracted almost US$1 billion in venture capital funding, but those projects are just the
AspenTech Sustainability Pathways
Ultimately it’s crucial to believe in yourself, trust that you’re on the right path and constantly challenge yourself to do better
Antonio Pietri was born in the city of Valencia, Venezuela, and moved to the US aged 17 to attend the University of Tulsa. Having achieved his degree in chemical engineering, and then an MBA from the University of Houston, Antonio was determined to find a path into management. In 1993 he joined Setpoint, before its acquisition by Aspen Technology in 1996, and went on to assume various managerial roles which took him to locations including Latin America, the UK, Singapore and Beijing. Having progressed into the AspenTech executive team, Antonio became President and CEO in 2013.
beginning. In 2021, AspenTech surveyed 186 companies in the energy, chemical and related industries, and found nearly half are considering investing in carbon capture projects.
Why has there been such an uptick in carbon capture, utilisation and storage projects?
Many companies are recognising the need to reduce emissions while maintaining productivity. As carbon capture systems become more efficient, the technology is increasingly seen as a viable approach to significantly reducing carbon footprint. Carbon capture was, until recently, viewed as too expensive and inefficient to have a
significant impact on reducing CO2. In recent years, however, conditions have changed. Carbon credit deals have reduced the cost of removing CO2 from the air and storing it underground to less than US$100 per ton, while new innovations are allowing direct air capture systems to reduce emissions from industries like steel, cement, air transport and agriculture.
In addition, captured CO2 may prove to be a valuable resource. Already projects are under way in the UK to use captured CO2 to produce sustainable aviation fuel, and estimates have suggested that, globally, the annual value of captured CO2 could be more than US$50bn.
In 1971, Prem Watsa left India for Canada with just eight dollars to his name. Today, he is one of the world’s most revered leaders in business
WRITTEN BY: TOM CHAPMANFrom a business and leadership perspective, it would not be a stretch to call Prem Watsa one of the most successful Indian exports of all time.
Having moved to Canada as an ambitious, inquisitive young man, Watsa studied hard and went on to launch his own business in the form of Fairfax Financial in the mid-1980s.
Today, Fairfax is one of the nation’s biggest
companies and its founder remains at the helm as Chairman and CEO.
Watsa is a prolific investor and, as a result, has frequently been labelled as the ‘Canadian Warren Buffett’. This tendency to invest has clearly not been without reward given the 73-year-old’s immense wealth, but he is also a keen philanthropist, making efforts to give something back to educational institutions.
Watsa was born into a Christian family near the Indian city of Hyderabad as the third of four children.
Speaking in a previous interview with the Horatio Alger Association of Canada, whose award he won in 2012, he said: “I was brought up on the Christian values of family, honesty and integrity, and doing the right thing.”
Where the family were based at any one time was largely dictated by Watsa’s father, who worked as an English and mathematics teacher and later became a school principal.
Meanwhile, much to his parents’ delight, a young Watsa was fast developing a love for education and exhibiting the intelligence to match it. He strived to achieve, and the hard work paid off as he graduated from the prestigious Indian Institute of Technology
(IIT) Madras in 1971 with a degree in chemical engineering.
Watsa was keen to continue his journey in education and sought a move to Canada to study at the University of Western Ontario. Despite having just eight dollars to his name, he took the plunge and never looked back.
Clearly, gaining an MBA with no financial capital was always going to be a long shot, even if was able to live with his brother in London, Ontario. To fund his studies, Watsa demonstrated entrepreneurial willingness and aptitude by selling furnaces and air conditioning units on a door-to-door basis.
After earning his master’s, the then-24-yearold managed to find work as an analyst at the insurance company, Confederation Life, where he spent a decade before opting to set up his own investment firm.
A year later, however, Watsa sensed an opportunity that was too good to ignore –one that ultimately made him his fortune.
Markel Financial was a small, struggling trucking insurance company when Watsa and fellow investors took control in 1985. It was renamed as Fairfax Financial Holdings and, within a year, US$10 million worth of premiums had been transformed into US$60m.
Watsa has called this period “totally fortuitous” but, within just a few years, Fairfax had evolved into a global operation thanks to a series of what it calls “fair and friendly” acquisitions.
Today, the overall organisation, including subsidiaries, is primarily engaged in property and casualty insurance and reinsurance, as well as associated investment management. To date, cumulative premiums of more than US$230 billion have been written.
Watsa was conspicuous by his absence in the early years of Fairfax, barely making any public appearances and seldom agreeing to media engagements. He has participated in interviews more frequently in recent years, using them to highlight the immense opportunity on offer to young entrepreneurs in North America.
Similar praise has been reserved for India from an investment perspective, with Watsa labelling his home nation a land of “unlimited possibilities” as Fairfax invests heavily there.
Prem Watsa has spoken of not knowing a thing about business when he was a young man. It’s fair to say he has learned a thing or two over the years.
US$230bn
To date, Fairfax Financial has written cumulative premiums of more than US$230 billion
US$1.3bn
Prem Watsa has an estimated net worth of US$1.3 billion
While calling his rise to the top a ‘rags to riches’ story might be a step too far, this selfmade billionaire has made a profound impact on the business community.
In recognition of his contributions to public life, Watsa was named a Member of the Order of Canada in 2015 and has also received India’s prestigious Padma Shri award.
Honouring his father’s legacy as an educator, he served as the ninth Chancellor of the University of Waterloo and is now the first-ever Chancellor of Huron University College, Ontario. Watsa has also sat on the advisory board of Ivey Business School, where he gained his MBA.
“Treat others as we would like to be treated ourselves,” is an ethos Fairfax continues to abide by. Even as he grows older, Watsa considers it his duty to uphold these values and use them to influence the next generation.
Businesses across the globe are becoming increasingly conscious of the impact their activities are having on the environment around them. Gone are the days when companies could simply appear responsible by setting a host of climate-related goals they intended to meet in the future.
Modern-day customers and stakeholders alike want to see meaningful results –and will hold decision makers to account. However, many firms are showing unwavering commitment to the cause, going the extra mile to reduce their carbon footprint. If every organisation had a similar attitude to these sustainability leaders, together they could really make a difference.
Business Chief takes a look at the trailblazing companies in the US and Canada which are going the extra mile to run more sustainable operations
Headquarters: Austin, US
CEO: Elon Musk
Number of employees: 128,000
Known primarily for its electric vehicle offering, Tesla is also on a mission to build a world powered by solar energy, running on batteries. In a bid to achieve this, the car maker produces and installs infinitely scalable clean energy generation and storage products that help customers further decrease their environmental impact.
Tesla has made its name for attempting to accomplish what others deem impossible and continues to expand, opening more factories and increasing output.
Headquarters: Armonk, New York, US
CEO: Arvind Krishna
Number of employees: 290,000
One of IBM’s biggest aspirations is to make a positive impact on the world through its business ethics, as well as on the communities in which clients and employees work and live.
In 2022, the company acquired Envizi to accelerate its sustainability agenda and build on growing investments in AI-powered software, helping organisations to create more sustainable operations and supply chains.
IBM strives to reach carbon neutrality by 2030 but, before then, wants to divert 90% of non-hazardous waste from landfill and incineration by 2025.
Headquarters: Austin, US
CEO: Tim Cook
Number of employees: 164,000
As one of the world’s biggest companies, Apple is under pressure to be run in a more sustainable fashion, but is not shying away from its commitments. With Tim Cook at the helm, it has pledged carbon neutrality by 2030 and wants to eventually make every product using clean energy.
There also exists a desire from Apple to use more recycled materials and lower its carbon footprint in the process, That’s why the organisation is sourcing more recycled content than ever before.
Headquarters: San Francisco, US
CEO: Andrew Anagnost
Number of employees: 15,000
Autodesk is on a mission to change how the world is designed through its technology, which spans architecture, engineering, construction, product design, manufacturing, media and entertainment.
Headquartered in the San Francisco Bay Area, the company continues to empower a wide variety of innovators in their bid to solve challenges big and small. From a sustainability perspective, Autodesk’s aim is to create technology that improves energy efficiency and material productivity, while encouraging its own employees to make a positive impact.
Headquarters: Redmond, US
CEO: Satya Nadella
Number of employees: 221,000
Operating in almost 200 countries, Microsoft’s belief is that technology can and should be a force for good, and that meaningful innovation contributes to a brighter future.
By 2030, the tech heavyweight aims to be carbon negative; by 2050, the headline pledge is that all historical emissions produced since the business was founded in 1975 will have been removed. Another 2030 target set by Microsoft is to replenish more water than it uses and produce zero waste across its direct waste footprint.
AMAZON
Headquarters: Seattle, US
CEO: Andy Jassy
Number of employees: 1,500,000
A company that needs little introduction, Amazon prides itself on four key principles: customer obsession rather than competitor focus; passion for invention; commitment to operational excellence; and long-term thinking.
Despite its size, the technology and retail giant retains the spirit and heart of a smaller firm, and is also known for embracing change. Amazon is the world's largest corporate purchaser of renewable energy and wants to power operations with 100% renewable energy by 2025.
Headquarters: Portland, US
CEO: Tamara Lundgren
Number of employees: 3,000
Schnitzer is a global leader in the collection, processing and sale of steel, the world’s most recycled product. Over the past 117 years, the company has continued to grow from strength to strength through a combination of organic investments and acquisitions, providing it with state-of-theart processing, manufacturing and information technologies.
Today, Schnitzer operates 95 recycling facilities, including seven deep water ports, which enable efficient delivery of processed scrap metals to steel mills and foundries around the world.
Headquarters: Pittsburgh, US
CEO: Ronald Keating
Number of employees: 3,500
Evoqua Water Technologies is nothing less than a global leader in helping communities and customers to protect and improve the world’s most fundamental natural resource: water. With more than a century of innovation behind it, Evoqua’s treatment systems ensure uninterrupted quality and quantity of water, enable regulatory and environmental compliance, increase efficiency through reuse, and prepare customers for next-generation demands.
The firm’s portfolio of brands, advanced technologies and solutions is crucial in helping global cities provide and discharge clean water.
Ronald Keating, CEO ofHeadquarters: Toronto, Canada
CEO: Connor Teskey
Number of employees: 1,200
With US$52 billion of power assets under management, Brookfield
Renewable is one of the world’s largest owners, operators and developers of renewable power. While headquartered in Toronto, Canada, the company’s portfolio of hydropower, wind, solar and storage
assets extends across North America, South America, Europe and Asia. In total, this represents more than 19,000 megawatts in installed capacity and a development pipeline of 18,000 megawatts.
Brookfield Renewable leverages more than 120 years worth of operating experience and innovation to drive value, delivering renewable solutions that accelerate the world towards a more sustainable, low-carbon future. In addition to the clean energy it produces, Brookfield is constantly looking to make positive social and environmental impacts in the communities in which it operates. This includes taking part in discussions to advance ESG awareness across private and public markets, and enhancing ESG reporting and protocols in line with evolving best practices.
Headquarters: Edmonton, Canada
CEO: Gord Johnston
Number of employees: 26,000
Based in 400 locations across six continents, Stantec provides a wide range of services including architecture, interior design, engineering, surveying and project management – from initial concept through to planning, design and construction. This involves collaborating across disciplines and industries to bring ambitious projects to life.
Headquartered in the Canadian city of Edmonton, Stantec’s indisputable expertise, combined with a strong desire to advance the quality of life in global communities, have allowed the business to go anywhere in pursuit of meeting client needs in creative ways. To fulfil its promise of designing with community in mind, Stantec recognises that it must consider climate change in its project work.
The firm’s focus, therefore, is to enable clients to see their projects through a climate lens and actually act on their findings. Regardless of their level of climate action maturity, Stantec is helping others to temper, adapt and achieve their goals.
Gord Johnston, CEO of Stantec Stantec's BMO centre expansion project
When considering the future of shareholder value, we have to look at the history. You have to go back to the dark economic times of the 1970s – a period of global stagnation. Open the pages of The New York Times and you’ll find an essay by a certain Milton Friedman titled ‘The Social Responsibility of Business
The concept of delivering value to shareholders as the primary purpose of a listed business has evolved, but it remains a key focus for CEOs
SCOTT BIRCH
is to Increase its Profits’. Economist Friedman effectively said that an organisation should show no regard or responsibility for anything other than its shareholders.
As happens with unpopular new concepts, it took a few years for other voices to echo Friedman’s doctrine, and it was not until the 1980s that the pursuit of
shareholder value at any cost became the new purpose for doing business. And it worked. Shareholders made fortunes, and stock exchanges from New York to London to Tokyo all benefitted –right up to the 2008 financial crisis which pulled the plug on Gordon Gecko’s ‘greed is good’ mantra.
Or did it? Has the relentless pursuit of shareholder value at all costs gone out of fashion in the face of sustainability and societal pressures? And what difference does it make if you are a company based in Denver, Dusseldorf, Dubai or New Delhi?
One fact is certain – you cannot ignore the importance of shareholder value in this region.
According to data from the World Bank, the market capitalisation of domestic listed companies in the US is US$40.72 trillion, with Canada delivering US$2.64 trillion.
That makes the US by far the largest single nation when it comes to listed company value, more than three times China in second place globally with US$12.21 trillion. Canada’s listed
companies are worth more than Germany (US$2.28 trillion) and India (US$2.6 trillion).
This highlights disparity around the world, with some countries having more of a focus on government- or family-owned large businesses, making the concept of shareholder value redundant.
Shareholder value as important today as ever When it comes to shareholder value, Craig Bouchard wrote the book – literally. His New York Times Best Seller ‘The Caterpillar Way: Lessons in Leadership, Growth and Shareholder Value’ may have been written a decade ago, but “shareholder value will always be considered relevant, especially in our highly
competitive investment arena,” the Founder and Executive Chairman of Ecolution kWh tells Business Chief.
“Exceeding shareholder expectations is the single most important performance indicator to attracting and retaining professional investors.”
Barbara Spitzer is Founder and Chief Executive Officer at Two Rivers Partners, and a former senior executive at Accenture, and she agrees with Bouchard –to a degree.
“Shareholder value is always relevant, but with a few added features,” says Spitzer. “While shareholder value remains core, CEOs must balance it with other stakeholders’ interests,
Exceeding shareholder expectations is the single most important performance indicator to attracting and retaining professional investors
Craig Bouchard is a Founder and Executive Chairman of Ecolution kWh, LLC. Ecolution technology converts kinetic energy in moving vehicles into an electric micro-grid. Craig is a New York Times Best Selling author of ‘The Caterpillar Way. Lessons in Leadership, Growth and Shareholder Value’. He founded three companies that achieved roughly US$1 billion of revenue within 18 months. His companies completed 12 acquisitions of metals companies and he has won three hostile proxy contests. Craig was a finalist for the prestigious Platts S&P CEO of the Year award in the global metals industries in 2018.
Barbara Spitzer is Founder and Chief Executive Officer at Two Rivers Partners. As an advisor to boards, CEOs, and business leaders, Barbara helps transform businesses. She leverages her skills across industries, solving complex problems, reimagining workforces, and galvanising organisations around corporate goals with an understanding of risk and regulatory pressures.
As the founder and CEO of Two Rivers Partners, Barbara provides solutions to evolve operating models, build human capital strategies, develop C-suites, cultivate cultures, and build change management strategies.
Barbara also served as the board and CEO advisory lead at Accenture.
Elena Murdock is the CEO of the awardwinning Ascend Public Relations agency and family office advisory. She is a first generation Latina, angel investor (x2 exits). At the age of 32, she is on the board of four companies including one company going public via a SPAC. She is also on the board of a family office and is an advisory board member at the fastestgrowing community foundation in the US.
I truly believe we are witnessing the force of business used for positive change in the world
Barbara Spitzer
Founder and CEO, Two Rivers Partners
including employees, customers, and the broader society.”
She says that the ‘polycrisis’ we continue to live through – pandemic, geopolitical tensions, global recession, technological disruptions – means that CEOs and boards are forced away from delivering just shareholder value but also stakeholder value.
“CEOs and boards are redefining shareholder value to include social and environmental; not as separate concerns because there is no long-term shareholder value without caring about employees, customers, communities, and other stakeholders expect and need,” adds Spitzer.
Bouchard says companies are adopting a more balanced approach, seeking to create value for all stakeholders rather than prioritising shareholders. Societal expectations when it comes to DE&I, access to liquidity, and increased scrutiny of business practices have driven a change in perceived
shareholder value. Some of these trends, he says, are not shareholder friendly.
The concept of shareholder value has certainly evolved significantly over the years, so does that mean it should still be the CEO’s main focus?
“If a CEO defines shareholder value in an entrepreneurial way, then yes,” says Elena Murdock, CEO of Ascend Public Relations and Family Office advisory.
“Capturing profit for profit’s sake does not benefit the shareholders in the long term. The world’s most successful companies have integrated programmes and ways to create value instead of solely capturing value.”
Murdock says CEOs can improve shareholder value by employing an entrepreneurial corporation model instead of imperialistic or crony capitalism.
An entrepreneurial corporation model drives value through creating value while serving others.
“Entrepreneurial capitalism or principled
entrepreneurship is a good model and is not reserved only for startups or B-Corporations,” says Murdock. “Higher profits come as a result of seeking to serve instead of seeking to capture value for value’s sake.”
Bouchard agrees that shareholder value should absolutely still be the main focus for CEOs but he believes that most leaders are getting it wrong, and that there should be a greater focus on allocating capital correctly.
“Even in the Fortune 500, I give a grade of C to over half of the CEOs I’ve observed or studied,” declares Bouchard.
As well as capital allocation, Bouchard says CEOs also need to understand the risks as well as potential returns of the business model –by correctly assigning an internal rate of return (IRR) to every customer account and every project proposal that requires capital. The third piece of the puzzle is recruiting and maintaining a talented, hardworking and loyal workforce – which is, of course, hard to achieve.
There are lots of financial, strategic, operational, governance and transformational levers CEOs can use. As a human capital strategist, Spitzer says CEO skills are crucial. She says the non-technical shareholder value capabilities CEOs require are:
+ 360-degree view of strategy that includes both the normal stuff (value drivers, markets, customers, competitors, products and services, financials, and risk) and the new stuff (human capital, environmental, societal, and governance)
+ Purpose-informed capital allocation and financial planning that considers the impact investment decisions have on people and the planet, alongside profit
+ Ethical integrity and the ability to establish trust and credibility by exhibiting high standards and responsible leadership
+ Stakeholder engagement with a keen ability to listen, empathise, communicate, build relationships, and understand diverse perspectives Adaptive leadership to navigate
change, embrace innovation, drive transformation, and guide teams through uncertainty; being open to new ideas, willing to challenge the status quo, and capable of making tough decisions
+ Understanding the ROI of diversity and inclusion and promoting a culture that values and respects differences
+ Continuous learning to stay on top of industry trends, regulatory changes, and best practices
“In addition, CEOs need fluency in cybersecurity, artificial intelligence, digital transformation, human capital management, and environmental, social, and governance (ESG), which present significant competitive, reputational, and financial threats,” adds Spitzer.
The reasons for continuing to pursue shareholder value are clear, but leaders also need to marry this with responsible business practices, otherwise they risk losing out to more agile and enlightened organisations.
“I truly believe we are witnessing the force of business used for positive change in the
world,” says Spitzer. “I believe that corporations are, and can be, drivers of the systemic change needed to not only create commerce, support capitalism, and build wealth, but to also make the world a more just, safe, healthy, and welcoming place.
“This reminds me of Martin Luther King’s famous words, ‘The arc of the moral universe is long, but it bends toward justice’. The arc of redefining shareholder value is long but is bending toward making the planet a better place for people.”
Capturing profit for profit’s sake does not benefit the shareholders in the long term. The world’s most successful companies have integrated programmes and ways to create value instead of solely capturing value
Elena Murdock CEO, Ascend
The Global FinTech Awards 2024 will be celebrating the very best in Fintech with the following categories:
Digital Banking Award
–PayTech Award
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Digital Currency Award
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FinTech Award
–InsurTech Award
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Sustainable FinTech
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FinTech Technology Award
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FinTech Consultancy Award
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Future Leader Award
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Executive of the Year Award
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Project of the Year Award
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Lifetime Achievement Award
An unsettling few years has resulted in more and more companies hiring Chief People Officers to implement a culture that prioritises employee wellbeing
WRITTEN BY: TOM CHAPMAN
The importance of companies looking after their people has undoubtedly been hammered home over the past three years, during which businesses and their employees have been tasked with negotiating a global pandemic and ongoing economic uncertainty.
COVID-19, and the lockdown restrictions imposed as a direct result, prompted hundreds of thousands of employees to re-evaluate their career choices, head in new directions and prioritise their own mental wellbeing.
From an economic perspective, workers' heads are being turned as they look to combat the frightening cost of living by moving into better-paying jobs.
Arguably, then, corporate teams face bigger challenges than ever before when it comes to recruiting the right people, keeping them happy, healthy and productive, and retaining their services.
That’s where the Chief People Officer (CPO) comes in.
Image: Beautifully designed staff facilities at the Qualtrics Dublin Office, Qualtrics ©
Organisations are seeing the value of human capital and its direct impact on business success
Julia Anas CPO, Qualtrics
The rapid rise of the CPO CPO is without doubt one of the world’s fastest-rising jobs in the context of the C-suite, becoming a crucial cog in the employee-focused machine as firms look to implement a people-first culture.
Apple is one of the best-known companies to hire a CPO for the first time in recent months, bringing in Carol Surface from Medtronic. Papa Johns, Zebra Technologies, IMAX Corporation, to name a few, have made similar appointments.
LinkedIn’s Jobs on the Rise 2023 lists for the UK and US – which rank roles based on growing demand over the previous five years – saw CPO place 10th and 15th place respectively. The platform describes CPOs as being in charge of a firm's HR department, overseeing best practices and policies for hiring, staff development, performance and retention.
Having led HR and employee experience functions at several major firms including Adobe and Symantec, Julia Anas joined Qualtrics to become its CPO at the height of the pandemic in January 2021. She is firm in her belief that COVID shone a bright light on the value of employees.
“Organisations are seeing the value of human capital and its direct impact on business success,” says Anas.
“CPOs are integral in driving initiatives to create exceptional employee experiences by supporting employee wellbeing, maintaining a strong company culture, recognising performance, investing in employees’ development and so much more. They are also pivotal in understanding the rapidly-evolving needs of the employee.”
Prior to joining Qualtrics, Julia Anas was VP, Employee Experience at Adobe, where she played a crucial role in driving employee development and compensation planning, as well as organisational design, talent and succession planning. She was also a core member of Adobe’s global COVID19 crisis management team. Anas has led people teams at companies including Intuit, Solyndra, Align Technology and Yahoo.
Shiran Nawi was lauded for her “genuine passion for people” as she took up her role as CPO at monday.com in May of this year.
She now oversees the company’s talent acquisition and development, employee experience and fostering an inclusive work environment for all.
Explaining the rising demand for CPOs, she says: “Business leaders have started to understand that they need to focus on their people rather than business outcomes to
achieve success. Why? Because when you focus on the talent you bring into the company and foster a safe workplace in which they can thrive and flourish, the outcomes will exceed your expectations.”
Taking a people-first approach to company culture
It’s no coincidence that more and more companies are employing CPOs as they look to enforce a workplace culture that makes employees feel more appreciated.
Image: Monday.com ©
At the heart of this people-first culture is the idea that individuals should be prioritised over making money, although having a happier workforce inevitably has the potential to result in increased productivity and profits, as Nawi explains.
“People-first culture is based on the assumption that there is a strong correlation between happy employees and the success of the business,” she says.
“Implementing a people-first culture is critical to achieving sustainable growth and scale. Essentially, an employer should create a healthy and safe workplace in which people can thrive and pursue their personal and business goals.”
Nawi is adamant that modern-day organisations must foster a people-first approach, insisting that focusing solely on business outcomes is only sustainable for a limited period of time.
At monday.com, employee satisfaction is valued just as highly as the bottom line and, these days, they are far from being alone.
Business leaders have started to understand they need to focus on their people, rather than business outcomes, to achieve success
Over the course of her five-year tenure at monday.com, Shiran Nawi has served as the company’s General Counsel and has become an influential part of the senior management team. Alongside building, scaling and leading the legal department of 20 people, Nawi helped architect monday. com’s forward-looking strategy and some of the company’s biggest, cross-company initiatives, such as its IPO, corporate philanthropy arm Digital Lift, and OKR efforts.
Anas adds: “If companies want to gain a competitive edge in a very crowded market, then this is the route they must go down.”.
“We’re all humans; we work to live, rather than live to work. Employees who feel valued, supported and motivated to perform at their best – both personally and professionally – will provide better customer experiences contributing to overall organisational success.”
Implementing a people-first culture might sound relatively straightforward but, to succeed, it requires a unique set of skills that not all leadership figures possess.
Being able to show an understanding of employees’ needs is crucial, as is recognising that not all your staff will be motivated by the same things.
Nawi highlights that her aforementioned “genuine passion for people” has been invaluable, and adds that CPOs must have a track record of strategic leadership, strong interpersonal skills and a deep understanding of how to foster company culture.
Leading with empathy is another important attribute raised by Anas, who says HR teams must create a community of belonging for employees.
“This means asking employees how they are doing, what they need to be successful, how can you help,” she continues. “By asking, you are demonstrating that you heard and understood their unique needs and are there to support them. This creates a deeper connection with team members and has a positive impact on loyalty.”
Meanwhile, Nawi is unequivocal in her belief that it will soon be considered the norm for companies to employ CPOs, but emphasises this should be more than simply a box-ticking exercise.
“They need to be positioned as a key driver in the company’s structure and operations,” she says.
Anas points to a Qualtrics report published earlier this year, in which 72% of HR leaders said their senior executives were now more focused on the employee experience than prior to the pandemic.
She adds: “I expect to see companies prioritising the CPO role, especially as more realise that, without their people, there isn’t a business to grow.”
With a decision looming on the SEC’s proposed changes to climate-related disclosures, leaders should be examining supplier sustainability credentials
WRITTEN BY: TOM CHAPMAN
Ever since the Securities and Exchange Commission (SEC) proposed sweeping rule changes to enhance climate-related disclosures, the prospect of having to report scope 3 emissions has been top of mind for thousands of companies across the US.
Eighteen months on, however, it remains to be seen exactly what proportion of the plans will ultimately come into force, as a long-running public consultation on the matter continues.
Whatever happens, there is a very real possibility that the country’s largest companies will need to begin disclosing their climate risks by the end of 2023, with others to follow next year.
At the heart of the SEC’s case is the suggestion that investors representing tens of trillions of dollars support disclosures because they recognise climate risks could later result in a host of financial headaches for organisations.
“Investors need reliable information about climate risks to make informed investment decisions,” said Gary Gensler, Chairman of the SEC, when the initial proposal was unveiled.
“I believe the SEC has a role to play when there’s this level of demand for consistent and comparable information that may affect financial performance.”
Many agree, insisting climate-related disclosures are long overdue. Others worry that such regulations would create a mountain of extra work and say the
Organisational boundaries can differ from one company to another, so there’s a difference in what companies are going to report and how far down the supply chain they're actually looking
William Theisen CEO of EcoAct North America
commission should not be getting involved in climate change discussions.
What’s certain is that this is an issue on which the public have a lot to say, as proven by the 15,000 or so comment letters which have already been submitted to the SEC.
Scope 3 covers the greenhouse gas emissions (GHG) from both upstream and downstream activities in a company’s value chain.
The thinking behind this, from the SEC’s perspective, is that scope 3 reporting would provide investors with useful information
to assess a registrant’s exposure to climaterelated risks and, perhaps more pertinently, the transition risks.
Someone with plenty of professional interest in the proposals is William Theisen, who has a dual role as Head of Net Zero Transformation at Atos and CEO of its subsidiary climate consultancy, EcoAct, in North America.
He admits there is some way to go in terms of formulating a consistent method of measuring scope 3 emissions.
“Scope 3 is a little bit trickier than the other reporting requirements and I understand the concerns, but it’s also a
kind of ‘chicken or the egg’ scenario,” says Theisen. “Organisational boundaries can differ from one company to another, so there’s a difference in what companies are going to report and how far down the supply chain they're actually looking.”
Theisen stresses there is also an issue in obtaining more granular data when reporting on scope 3. One alternative is to convert spend-based emission factors into tonnes, but this inevitably raises questions over accuracy.
“If you look at more innovative areas such as streaming, there is no clear-cut way to assess streaming emissions for technology companies,” Theisen adds.
William Theisen CEO of EcoAct North AmericaEcoAct is an international climate consultancy and project developer, helping businesses and organisations to succeed in their climate ambitions.
The firm was its own entity until being acquired by Atos in 2020. Earlier this year, it was announced EcoAct would be positioned in the newly-launched Eviden side of the Atos business, which has a focus on professional services.
All ‘EcoActors’ have a shared purpose: to make a difference as they help clients implement positive change in response to climate and carbon challenges, driving commercial performance in the process.
To date, the company has undertaken various carbon reduction and sustainability projects for some of the world’s leading brands, while also developing and partnering with carbon offset, biodiversity and economic development programmes across Africa, Asia, China and South America.
These days, EcoAct is headquartered in Paris and also has employees based in the US, Canada, the UK, Spain and Kenya.
“Is converting spend-based emission factors into tonnes going to be completely accurate? Is it going to give you the hotspots of where action should be taken? Not necessarily, because you just spend less and your emissions go down, so it’s not the best strategy.”
Plenty of grey areas exist in the area of climate-related disclosure – not just in the US, but across North America and beyond.
GHG Protocol, which supplies the world's most widely used greenhouse gas accounting standards, is in the process of updating how it assesses emission calculations.
“I think companies are open to calculating their emissions,” Theisen continues, “but it goes back to the issue of companies working in the same sector using different methods.
There could easily be a misunderstanding or lack of clarity on why one company’s scope 3 emissions are so much higher than another.
“So, it really takes more context and I think that’s why GHG Protocol – with the public consultation that’s going on right now – is looking at how to better standardise things, so you can compare apples with apples.”
In a bid to achieve greater accuracy, Theisen believes the key going forward is for organisations to join forces and work together.
“In the US, it’s largely been voluntary investors pushing companies to start disclosing their carbon footprint, climate risk and emission reduction targets, but the data won't really be there until everybody's on board,” he says.
“I’d imagine there are a lot of companies that are worried about disclosing scope 1, 2 and 3 in terms of their carbon footprint
There are a lot of companies worried about disclosing scope
1, 2 and 3 in terms of their carbon footprint, but you have to get everybody disclosing and regulating for the data to get better
CEO of EcoAct North America
William Theisen CEO of EcoAct North America
Companies who aren’t on board yet with measuring their carbon footprint can actually benefit from the learnings of others
in this first wave, but you have to get everybody disclosing and regulating for the data to get better, so they can more accurately assess their scope 3 emissions.”
Regardless of the outcome of the SEC’s proposal, Theisen says companies should be preparing for scope 1 (direct emissions), 2 (energy usage) and 3 reporting to eventually become the norm.
The reality is that measuring carbon footprints will likely become mandatory sooner or later, and getting ready for such an eventuality can only be beneficial.
Heavyweight organisations like Google and Microsoft are leaders in this field and having been doing it for years, to the point where they are well-versed in setting emissions targets and measuring their own performance.
“On the other other side of the spectrum,” adds Theisen, “we have a wealth of companies that haven’t done anything.
“Luckily, the companies who aren’t on board yet with measuring their carbon footprint can actually benefit from the learnings of others. It’s easier to get on board because we’re much better trained in how to do that initial assessment of scope 1, 2 and 3 emissions, even if it means just doing estimations with scope 3. At least that gets the company well-versed on what emissions are and what they should start paying attention to.
“What we have now is a real opportunity for knowledge exchange.”
The Global Sustainability Awards 2024 will be celebrating the very best in Sustainability & ESG with the following categories:
Sustainability Strategy Award
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ESG Program Award
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Climate Change Award
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Diversity & Inclusion Award
–Net Zero Award
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Sustainable Supply Chain Award
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Sustainable Technology Award
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Sustainable Consultancy Award
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Future Leader Award
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Executive of the Year Award
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Project of the Year Award
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Lifetime Achievement Award
Possibilities endless as generative AI takes centre stage TECHNOLOGY | GENERATIVE AI
Possibilities endless as generative AI takes centre stage
Generative AI is already playing a pivotal role in the way companies are run. The only question is how quickly it can be integrated into everyday tasks
TOM CHAPMAN
For the discerning C-suite executive, it has been practically impossible to escape the AI conversation in recent months.
There remains little to no doubt that artificial intelligence is set to play a pivotal role in the way companies are run in the months and years ahead, with the only question concerning just how quickly it can be integrated into everyday business practices.
Clearly, the intent from leaders is there. A recent study carried out by Accenture found almost three-quarters (73%) of global companies are prioritising AI over all other digital investments, with an immediate focus on improving operational resilience in an unprecedented environment. What’s more, IBM research has shown a similar proportion of CEOs believe gaining competitive advantage in future will depend on who has the most advanced AI capabilities.
That’s exactly why multinational organisations have been investing so heavily in generative AI, recognising the need to stay ahead of the curve. Tech giants including Microsoft, Google, Meta and Nvidia, as well as consulting behemoths like PwC, have already spent billions of pounds between them on the emerging technology.
However, almost three in five (59%) US workers say the pace at which their employers are adopting new digital tools is not fast enough, according to a report from EY, raising questions over the urgency being shown by most businesses.
AI gives humans more time to do the necessary, valuable work that only a human can do
Kelly Manthey Global CEO, Kin + Carta
Five9, the world’s largest cloud contact centre solutions provider, is among those to have already invested relentlessly in its AI products, several of which are already using generative AI. Among them is Agent Assist 2.0 with Agent Summary, which uses the same technology behind ChatGPT to summarise customer call transcripts in seconds.
“The result is a win-win for everyone,” says Jonathan Rosenberg, CTO and Head of AI at Five9. “Consumers can get their issues resolved faster, and agents can handle more calls in a day, helping the company save money.
“Generative AI is going to allow us to democratise our AI applications for customer service, bringing them to many more customers. With it, we can reduce if not completely eliminate the complex process of building and training bespoke AI models.”
As organisations encompassing all industries look to harness the power of
AI, consultancies like Kin + Carta have used acquisitions to accelerate their own strategy. The digital transformation specialist purchased its first data science business, Cascade Data Labs, in 2020, before acquiring responsible AI data platform Octain last year.
This, as a result, is helping Kin + Carta to identify where the technology can add value to clients’ operations.
“The most significant benefit that any AI technology brings to the table is that it gives humans more time to do the necessary, valuable work that only a human can do,” explains Kelly Manthey, Global CEO of Kin + Carta.
“Generative AI, in particular, is phenomenal at interpreting large data sets; with relatively simple prompts, you can generate incredibly in-depth insights in a matter of seconds. This makes entire enterprises more intelligent, driving efficiencies to allow employees to use their creativity and drive more topline revenue.”
Generative AI is, without doubt, one of the most transformative pieces of technology we’ve seen in the last 20 yearsJonathan Rosenberg CTO and Head of AI, Five9
Every business should properly assess the use cases for generative AI and understand the potential risks involved with implementation
Kelly Manthey Global CEO, Kin + Carta
Neither Rosenberg nor Manthey are surprised by the speed at which businesses across the globe have
The former points to the popularity of the aforementioned ChatGPT, which took the world by storm following its launch back in November, acquiring a million users within just five days. It now has more than 100 million monthly active users and generates almost two billion monthly visits.
Rosenberg’s firm belief is that companies had little option but to quickly jump on the bandwagon to stay competitive.
This momentum, says Manthey, combined with the countless benefits offered by generative AI, meant it was inevitably factored into transformation strategies.
“Generative AI can turbo-charge innovation,” she adds. “Everything from implementing personalisation to interpreting data sets becomes quicker, easier, more reliable and better in quality.
“Because the technology is applicable everywhere, from employee engagement projects to client work, the devil really is in the details. Having the expertise to know where and how to implement it to see the greatest benefit is the key.”
Rosenberg goes as far as to call generative AI “overhyped”, but is unequivocal in his assessment of its importance.
“It is, without a doubt, one of the most transformative pieces of technology we’ve seen in the last 10-20 years,” he declares.
CEOs, CTOs and plenty of other leadership figures have been keen to point out that their companies have been working on artificial intelligence projects for years, while the technology itself has been around for decades.
However, its meteoric rise over the past 12 months has, unsurprisingly, resulted in all manner of questions surrounding cybersecurity, regulation, transparency, ethics and privacy.
What’s more, many employees have understandably raised concerns over the possibility of their jobs eventually being made redundant.
The key to successfully implementing generative AI is, according to Manthey, taking a pragmatic, iterative, humancentred approach.
Kin + Carta is a B Corp-certified digital transformation consultancy which works alongside some of the world’s most influential companies. The firm uses its unique expertise to help clients understand and overcome the root causes of technological anxiety, guiding them through their digital transformation journey. A combination of people, planet and profit are consistently at the heart of Kin + Carta’s activities.
“Every business should properly assess the use cases for generative AI and understand the potential risks involved with implementation,” she says. “Trust is a significant issue and many valid conversations are happening about whether regulation is keeping pace with innovation in the space.”
Speaking from his experience in trying to improve contact centre interactions, Rosenberg contends that striking a balance between human and automated service must come top of the priority list.
As a giant in the field of cloud contact centre solutions, Five9 has thousands of customers worldwide and processes billions of calls every year. Its mission is to deliver joy to customers, agents and business stakeholders, assisted by the undeniable power of AI and automation.
“Generative AI has the potential to transform business functions because it will become part of every interaction with customers – that’s every call, every meeting, and every chat,” he concludes. “That means the opportunities for creating a more fluid customer experience are endless.
“However, that doesn’t mean businesses should replace all of their agents with bots or try to pass their bots off as humans. Doing so risks breaking customer trust.”
Generative AI has the potential to transform business functions because it will become part of every interaction with customers
Jonathan Rosenberg CTO and Head of AI, Five9
Knowledge Partners
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As numerous airlines scrap their international first-class offering, Business Chief examines whether this luxury staple is dying out or simply evolving
WRITTEN BY: TOM CHAPMAN
Flying first class was once one of life’s true definitions of luxury. Whether travelling for business or pleasure, passengers could sit back (or lay down, for that matter) and relax in private, comfortable surroundings, knowing for certain they would be receiving the very highest level of service as they cruised over the Atlantic from New York to London.
That’s not to say first class no longer retains its supreme standards – far from it, in fact. Airlines have continued to up the ante, raising the stakes in their never-ending battle to offer the ultimate experience at 35,000 feet. Plush double beds and the very finest food and drink money can buy, not to mention an overwhelming feeling of exclusivity, go a long way towards achieving this insurmountable goal.
However, there can be little doubt that, during the past couple of decades, first-class travel has progressively been disappearing from the long-haul market.
A significant moment for the industry came in 2022, when American Airlines announced it was scrapping first-class seats on international flights, becoming the last of the big three US carriers to do so. United Airlines had already phased out long-haul first class in the mid-2010s and Delta did the same several years prior.
At the time, CCO Vasu Raju said demand was plummeting, adding: “First class will
not exist on the 777, or for that matter at American Airlines, for the simple reason that our customers aren’t buying it.”
Figures show Delta and United have actually been dropping their own first-class capacity for about 15 years while, across the pond, American Airlines partner carrier British Airways has joined the crowd and even abolished it when ordering new aircraft.
Elsewhere, Air New Zealand, South African Airways, Turkish Airlines and Qatar Airways are among scores of companies to
Fully lie-flat seats were considered innovative in the 2000s and are now table stakes for a business-class product
the TravelVik Krishnan Partner and Leader of the Travel and Aviation Practice at McKinsey & Co
have ditched the service, with the latter’s Group CEO, Akbar Al Baker, stating in June that it made little financial sense.
When considering the decline of first-class international travel, it’s difficult to look past the extraordinary evolution of airlines’ other premium offerings.
It could be argued that BA’s gamechanging introduction of lie-flat seating in business class at the turn of the millennium represented the very first nail in the coffin for the first class section which, it must be emphasised, has not been covered in soil and buried just yet.
But, take into account numerous additional improvements made over the ensuing quarter of a century, and the modern-day business class offering resembles something similar to our traditional idea of first class, while premium economy looks more like the old business class.
“Fully lie-flat seats were considered innovative in the 2000s and are now table stakes for a business-class product,” says Vik Krishnan, Partner and Leader of the Travel and Aviation Practice at McKinsey & Co.
“The next evolution in business class in the late 2010s saw privacy dividers and 100% aisle access from every seat – no more climbing over someone to go to the bathroom.”
The evolution of corporate travel policies at large companies is one of the main reasons for the decline of international first-class travelVik Krishnan Partner and Leader of the Travel and Aviation Practice at McKinsey & Co
United Airlines
Polaris Lounge
Newark Airport
Vik Krishnan Partner and Leader of the Travel and Aviation Practice at McKinsey & Co
A primary reason for the reduction in pure first-class capacity on international networks is the continued convergence of the product across generations
When today’s passengers expect to be showered in relative luxury in business class, it certainly begs the question of why anyone would pay thousands of dollars more to sit in first – regardless of their wealth. For those who want competitive prices, there are simply more options on the market.
Krishnan, who has served the airlines and aerospace sector for 25 years, adds: “A primary reason for the reduction in pure first-class capacity on international networks is the continued convergence of the product across generations.
“For example, lie-flat business-class seats with privacy dividers were previously
seen only in first class. We’ve also seen the introduction of premium economy products more akin to prior business class offerings.”
Seeking out competitive pricing for business travel applies not just to regular passengers, but to the CFO and their teams, as well.
A punishing few years from an economic perspective means the finance function is having to be brutal in its efforts to cut costs and is scaling back on non-essentials. Clearly, we are not at the stage where business travel is being shunned altogether, but bumping corporate jetsetters down from first to business class seems perfectly reasonable in the grand scheme of things – especially if one considers the aforementioned improvements made to the latter.
Many organisations are going one step further by outright prohibiting firstclass travel as they look to tighten the purse strings.
As Raju put it last year, “the replacement of first class with additional business offerings will allow the carrier to provide what our customers most want or are willing to pay for,” and it’s a logic that adds up given the New York to London route remains one of its most popular and will likely generate more revenue.
“The evolution of corporate travel policies at large companies, which increasingly do not authorise first class travel, is one of the main reasons for the decline of international first-class travel,” Krishnan says.
With just a single cabin, early passenger planes offered only one class of service which was relatively basic. Many airlines began to offer lower fares in the 1940s, but the difference here was often more to do with flight time than quality of service.
Changes to international regulations in the early-1950s signalled the true dawn of the first-class era, which came into being on the New York to London route. Then, in 1955, TWA introduced a mix of both first and economy seats on its Super Constellation craft.
Having two separate cabins was pretty much the norm by the beginning of the 1960s thanks to new planes like the
Boeing 707, and standards went up a notch with the arrival of the 747 in 1969. A big focus was on-board lounges, which have largely been sacrificed these days in favour of increased privacy and comfort.
A third, intermediary class came into being in the mid-1970s, and initially drew some criticism before carriers got to grips with pricing, layout and the extent to which service should differ between cabins.
It wasn’t until the 1990s that lieflat seating became commonplace in first class but, since then, the level of comfort and space has only improved. Suites, bars, wash facilities and double beds have continued to enhance the experience.
The luxury travel evolution goes on Luxury travel purists will be pleased to hear not all airlines are bidding farewell to their first-class offerings.
In Europe, Air France and Swiss Air have sought to enhance their superior seating, while demand remains high in regions like Asia and the Middle East.
Dubai-based Emirates increased its firstclass capacity in the pre-pandemic years and showed further intent in 2022 by introducing an improved menu from its award-winning team of chefs, a champagne and caviar experience, and a ‘cinema in the sky’.
But perhaps highlighting these examples of first-class investment is rather missing the point. Luxury air travel will continue to evolve, as it always has done, and customers will still have plentiful access to a ‘first class’ offering in nature, even if not in name.
Krishnan concludes: “We will see more evolution in the next 10 years, some of which has already started –direct aircraft boarding from lounges, dedicated premium terminals at airports, ‘on-demand’ meals, door-to-door premium services and more of a focus on environmental sustainability.”
We will see more evolution in the next 10 years, some of which has already startedPartner and Leader of the Travel and Aviation Practice at McKinsey & Co United Airlines Polaris Business Class
Barely a decade into the popularisation of electric vehicles, Faraday Future is launching the first ultra-tech luxury electric vehicle: meet the FF 91
Prashant Gulati is the esteemed Vice President of Strategy at Faraday Future. Now in his seventh year with the company, he handles the entirety of its strategic roadmap, which includes overseeing the business plan, mobility initiatives, manufacturing strategy, and directing fundraising efforts.
Fundraising is a key part of Gulati’s role: “My proudest professional achievement has been co-leading the public offering, which helped the company raise more than $1bn through a listing on NASDAQ,” he says.
With over 20 years of success in the technology and automotive industries, Gulati is an accomplished executive with a track record of scaling businesses. He has successfully led a public offering and held leadership roles to drive growth and expansion at several companies globally. In recognition of his industry contributions, Gulati was selected for the coveted Business Insider list of EV Industry Power Players.
Gulati holds a bachelor's degree in computer science and an MBA from the Indian School of Business.
Having grown up in India, Gulati has always had a deep affinity for the environment. This draw of environmental stewardship was heightened when Gulati and his wife were expecting their first child. “I had a sense of urgency to contribute to technology that could help slow climate change and create a better world for our children to grow up in,” he explained.
“I explored numerous fields, including renewable energy, smart grids and energy storage, before focusing on EVs and finding
Faraday Future. I immediately clicked with the company as it had such a bold vision and fit the environmentally-focused technological approach I was seeking. My journey into the auto industry has been quite unusual – almost accidental.”
Faraday Future: driving the EV industry
“Climate change is the defining challenge of our time, and transportation is one of the largest contributors to it,” says Gulati. “At the same time, the world cannot slow down. We need more growth, more productivity, more time to commit to our passions. So, at Faraday Future, we've been working on the intersection of these problems - of clean mobility and climate change on one
“We were founded with the mission to help people live, move, and breathe more freely – and that's one of the things that drives a lot of us”
PRASHANT GULATI VICE PRESIDENT OF STRATEGY, FARADAY FUTURE
hand, and helping people lead productive, connected lives on the other.”
Faraday Future has taken the first step towards achieving that mission by building the FF 91, which Gulati believes is the most connected, comfortable, and technologically advanced electric car in the world. The company achieved start of production of the FF 91 in California and plans to sell it through a direct sales model in its dual home bases of the US and China.
“The vision of the company is much more than building and selling electric cars, though,” Gulati tells us. “We want to engage our users, build a community, and offer internet and AI services throughout the vehicle lifecycle.”
TITLE: VICE PRESIDENT OF STRATEGY
INDUSTRY: MOTOR VEHICLE MANUFACTURING
LOCATION: UNITED STATES
Prashant Gulati is the esteemed Vice President of Strategy at Faraday Future. Now in his seventh year with the company, he handles the entirety of its strategic roadmap, which includes overseeing the business plan, mobility initiatives, manufacturing strategy, and directing fundraising efforts.
With over 20 years of success in the technology and automotive industries, Gulati is an accomplished executive with a track record of scaling businesses. He has successfully led a public offering and held leadership roles to drive growth and expansion at several companies globally. In recognition of his industry contributions, Gulati was selected for the coveted Business Insider list of EV Industry Power Players.
Gulati holds a bachelor's degree in computer science and an MBA from the Indian School of Business.
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In an exclusive interview, Jason Murar, President and CEO of JVIS USA, discusses how JVIS is pioneering the EV industry while supporting Faraday Future
JVIS USA is a world-renowned manufacturing leader boasting unrivalled proficiency across both design and engineering. Blending state-of-the-art technologies with vertically-integrated processes, the company guides a concept from the initial sketch to the final product launch, and everything in between.
By prioritising innovation, JVIS has established itself as a leader in the continuous shift towards electric vehicles (EVs). It specialises in delivering technology and components uniquely optimised for EVs, continuously seeking out novel concepts, technologies, and procedures.
JVIS has also played a vital role in supporting Faraday Future (FF) to unveil their vehicles to the market. Jason Murar, President and CEO of JVIS USA, explains:
“We’ve assisted FF in almost every facet, from the initial product development – where we identified key product innovations for their consumers – all the way through to the actual testing and validation, in compliance with automotive standards for those components and the continuous supply of critical components used in their vehicles.
Armed with impressive electrical solutions, JVIS employs the latest technology, such as capacitive touch surfaces and smart panels.
Murar says: “In the EV market, you see a lot of change with smart panels, which are now highly integrated into both the exterior and interior of vehicles.”
JVIS is committed to leading the development of the EV industry, particularly as it plays a large part in the company’s growth. “Our customers see how we’re taking static panels and turning them into functional panels, giving expanded use of the vehicle,” Murar explains. “These components include sensors and software to increase the user’s experience, such as soft-close doors and ambient lighting.
“JVIS’s continued investment in innovation and growth will enable us to make significant contributions to this dynamic field. If you are looking to turn your product ideas into reality, contact us today to learn more about how JVIS technology can help.”
Faraday Future started from scratch, taking a “clean sheet approach” to building electric cars. Faraday Future’s technology innovations include its proprietary Variable Platform Architecture (VPA), propulsion system, and Internet, Autonomous Driving, and Intelligence (I.A.I.) systems. The company has approximately 660 patents across these areas.
“So far, the company has invested billions of dollars in creating industry-leading product and technology,” recounts Gulati. “Building cars is a capital-intensive business, and we've had our ups and downs.
“The way I would describe the ethos of the company is one of perseverance and tenacity; one of never, ever giving up in the service of our mission.”
The FF 91 has been designed as an all-ability car, possessing the handling of a sedan, the space, reliability, and comfort of an SUV, and the top-level performance and driving dynamics of a sports car.
“A lot of people liken it to a Rolls-Royce, with increased comfort, connectivity, and performance ” Gulati tells us – and the statistics certainly speak for themselves.
video conferencing, and watch movies or live sports without driver distraction”
“There's a lot that has gone into developing and thinking about the design, driving experience, and the overall user experience” says Gulati who is incredibly passionate about the vehicle.
“There is no electric car in our segment right now – competing with Rolls-Royce,
Bentley, Maybach – so we're quite excited about being the first EV of our kind, and we think it's going to redefine industry standards. The first ultra-tech luxury electric vehicle.”
“We are building what we believe is the most connected, most comfortable, most technologicallyadvanced electric car in the world: we call it the FF 91”
PRASHANT GULATI VICE PRESIDENT OF STRATEGY, FARADAY FUTURE
The technology under the bonnet Faraday Future describes the technology behind the FF 91 within three pillars:
1. Variable Platform Architecture
“Think of it like a Lego,” Gulati explains: “You can change the size of the platform and build different vehicles of different sizes for different purposes. You can put different motor and powertrain configurations. This skateboard-like platform approach enables us to build multiple vehicles on the same platform, reduce time to cost, time to market, and more.”
2. In-house Propulsion Technology
Faraday Future has developed a proprietary inverter design and propulsion system. The drive units are fully integrated with the inverter, and transmission and control unit to enable leading horsepower, efficiency, and acceleration.
3. Internet, Autonomous Driving, and Intelligence (I.A.I.)
“Our software, internet, and AI development is the most important of these pillars,” says Gulati. “That's where the company shines compared to all of our competition.” Faraday Future’s commitment to these technologies supports the user experience in the car, both practically and luxuriously, ensuring seamless user experience through different elements, one of which is advanced voice control to manage complex queries without driver or passenger distraction.
• 3 motors
• 1,050 horsepower
• 0 to 60 in 2.27 seconds
• Class leading EPA and CARB certified range of 381 miles
• Charge Time (20-80%): 25 min @ 200kW DC Fast Charge
• Overall length: 5,250mm/ 206.7in
• Up to three 5G modems and a newly developed operating system, allowing customers to use apps and stay fully connected
• Industry-leading 49 inches of rear seat legroom
• 60-degrees rear seat recline in NASA-inspired, zero-gravity seats
Faraday Future invested a lot in creating its own technology. “Some companies basically source parts and build a car, essentially becoming assemblers,” explains Gulati. “At Faraday Future, we've invested a lot of time and capital on creating our own technology.”
Faraday Future has strong partnerships with, and relies on, key suppliers to ensure the FF 91 is completed in a timely manner and with the high quality its users will demand. The company was affected to a lesser degree by supply chain issues during the pandemic because of planned low volumes at launch, and because many of the parts are created by suppliers uniquely
for the FF 91, and so we don't compete with others for those. Notwithstanding, the company has taken lessons from that period and gotten even more diligent about planning and ordering across the supply chain.
In terms of scale, Faraday Future employs 590 people across the US and China, and with its production plant in California the company will ultimately be capable of producing approximately 10,000 vehicles per year. The current manufacturing setup is asset light, and the supply chain is built with expansion in mind: if needed, the company has a contract manufacturing partner for this anticipated expansion, allowing early-stage flexibility.
“The company's DNA is completely global,” Gulati says: “We've designed and defined the product with an abundance of cutting-edge technology to cater to a global audience.”
The company is headquartered in Los Angeles, where much of the engineering and manufacturing takes place, but it also has roots in China – home to a Faraday Future engineering centre. The FF 91 will be initially launched in the US, followed by China, before being launched globally.
“Looking to the next 18 months, we are very focused on the FF 91 production, sales, and
“Climate change is the defining challenge of our time, and transportation is one of the largest contributors to it”
PRASHANT GULATI VICE PRESIDENT OF STRATEGY, FARADAY FUTURE
deliveries,” Gulati explains. “We're going to be scaling our operation, ramping up supply chain – that's the key focus area making the FF 91 successful.
Gulati believes that the value chain disruption we’re seeing now is going to continue, not only accelerating on the product and technology front, but on the sales side, too, as industry sales volumes increase.
“In the distribution model, quite a few OEMs have expressed a desire to sell directly to customers” Gulati explains.
“For the industry, this transition away from ICE (Internal Combustion Engine) vehicles is going to impact sales economics. Today, auto dealers mostly earn margins from selling auto parts and services, and financial services, and that's going to change. Maintenance and parts and services replacement in EVs is far less than ICE vehicles. So, we expect to see changes on the business side as well as on the product and technology side.”
Despite this value chain disruption and anticipated global economic slowdown, Gulati himself doesn’t forecast a slowdown for Faraday Future, citing research from McKinsey that shows the luxury vehicle market (vehicles $150,000 and above) is projected to grow significantly over the next 10 years.
Looking to the longer-term future, Faraday Future has ensured built-in capability to add further models to its Variable Platform Architecture.
“We have plans for our next model –we call it the FF 81 – which will share 60% commonality of parts with the FF 91,” Gulati says. “Although, of course, such future developments are dependent on a number of things, including fundraising.”
To promote long-term growth and success within the electric vehicle industry, Gulati says the focus is – and should remain –on batteries, reducing cost of materials, recycling, and developing new chemistries.
“Since 2010, the price of batteries has dropped significantly – until about 2019,” Gulati recounts. “In the last few years, battery and raw material prices have risen again because of supply chain disruptions, due to the pandemic.”
The second focus that Gulati expects of the industry is in EV infrastructure.
“We are seeing significant regulatory support to promote the transition to electric vehicles,” he says. “Governments are allocating a lot of capital and policy support towards education, charging infrastructure, and local sourcing of electric cars, so we anticipate that will continue.”
The future is on its way – and it looks electric.
“We need more growth, more productivity, and more time to commit to our passions”
PRASHANT GULATI VICE PRESIDENT OF STRATEGY, FARADAY FUTURE
oronto may not officially be Canada’s capital but, with its business pedigree, vibrant culture and bustling financial district, it arguably remains the nation’s beating heart.
Part of what has made Toronto so attractive from a business perspective over the years is its location in the southeast, right on the shore of Lake Ontario which splits Canada and the US. This has historically ensured easy access to the Atlantic, as well as to a host of other major industrial hubs to the east.
The city has, in recent decades, seen its population grow exponentially. It has been estimated that the metropolitan area could be home to seven million people by the end of 2023 and the skyline is dominated these days by skyscrapers owing to Toronto’s immense growth. Chief among them is the CN Tower, the world’s tallest free-standing structure until 2007.
Traditionally, Toronto was home to a number of labour-intensive manufacturers, including those responsible for steel, agricultural supplies and textiles. Although many of these businesses have moved elsewhere, Ontario as a whole still produces the majority of Canada’s manufactured exports.
In the latter part of the 20th century, Toronto gained increased importance as a financial centre. Today, many of the country’s biggest banks including Royal Bank of Canada, TD Bank and the Canadian Imperial Bank of Commerce are headquartered there.
416 Area code for Toronto 6.4m
Population of the Toronto metro area in 2023 as estimated by the United Nations
Average nightly rate of a GTA hotel room by the end of 2023 (according to CBRE Canada)
Image: Four Seasons ©
Business travellers expecting a long day of meetings will be pleased to discover that Toronto boasts plenty of comfortable, well-equipped hotels, with each offering something different from the last.
We’ve all heard of the Four Seasons brand and Toronto is its birthplace. The 55-storey tower, situated in the neighbourhood of Yorkville, was built in 2012 to replace the original property and everything has been designed in the name of luxury. Despite its elegance, there’s a certain subtlety here, and guests must try the mouth-watering French cuisine paired with one of 350 wines at Cafe Boulud.
Meanwhile, the Fairmont Royal York is right in the heart of Toronto’s Financial District, near the iconic CN Tower and Rogers Centre. This historic hotel was built in 1929 and, despite recently undergoing a significant refurbishment, has managed to retain its endearing charm. It’s no surprise that members of the British Royal Family have been happy enough to stay in recent years. There’s even a childcare service on offer if the kids are in tow.
For the sports and fitness lovers among us, Hotel X Toronto is jam-packed with amenities and feels more like an exclusive holiday resort. You’ll find yourself spoiled for choice with indoor tennis courts, swimming pools and a private member’s fitness club. Given the hotel is also one of Canada’s largest event venues, it comes as no surprise that it spans no less than nine acres of waterfront land. Put it this way: you’re not going to get bored here.
As one might expect in a vast metropolis, you won’t be struggling for places to satisfy your appetite in Toronto.
French restaurant Alo – situated at the top of a downtown Victorian building – is pretty much a must-visit for foodies stopping in town for a night or two, with its internationallyinspired cuisine which celebrates the finest in seasonal ingredients. Chef Patrick Kriss has Michelin-star pedigree to his name and has created a truly memorable dining experience in something of a surprising location.
A long-standing favourite is Scaramouche, which offers delicious contemporary cuisine and panoramic skyline views to boot.
If you’re fortunate enough to dine here, you’ll be paying for world-class food and exceptional service. Dinner is served from 5pm, Tuesday to Saturday.
If charcoal-grilled steak is your thing, there’s only one place to start: Barberian’s, a true Canadian institution which might just be the nation’s most famous steakhouse.
Opened in 1959 by the legendary Harry Barberian, this Elm Street gem has hosted all manner of celebrities, sporting heroes and politicians over the years and, when you try the 32oz porterhouse, you’ll know why.
Come for the steak, stay for the incredible wine cellar containing more than 15,000 bottles from the world's greatest vineyards.
1861
The year the Toronto Stock Exchange (TSX) was founded
1,789
Number of issuers listed with the TSX
Toronto is up there with the best locations in North America, and perhaps the world, to start a business. From a taxation perspective, Ontario has one of the lowest basic corporate tax rates in Canada, standing at 11.5%. However, the province’s small business deduction scheme offers a lower rate of 3.2% to firms with revenue dipping below US$500,000, a threshold which has been in place for more than a decade.
What’s more, startups can benefit from a wide range of grants, incentives and rebates offered by the City of Toronto to business owners. Meanwhile, the Toronto Business Development Centre is one of the city’s oldest business support groups, having been set up by the local government back in 1990. Over the past 33 years, the not-for-profit, multi-sector incubator has helped fledgling companies to launch, grow and scale, serving as a bridge between entrepreneurs and Ontario’s investors, industry associations and government.
Those thinking of launching a new venture in Toronto will inevitably want to find out more about the quality of life there.
Canada’s biggest city by population placed ninth in this year’s Global Liveability Index, published annually by the Economist Intelligence Unit. In the latest index, more than 170 global cities were ranked based on their performance in five broad categories: culture and environment, education, healthcare, infrastructure and stability.
Toronto received a score of 96.5 out of 100, including perfect marks for education, healthcare and stability, while Vancouver and Calgary also made the top 10.
The downside for would-be entrepreneurs is that, like countless Canadian cities and communities, Toronto scores poorly for affordability – especially on the housing front.
Recent research carried out by the BMO concluded the nation’s housing affordability problem was showing little sign of easing, while the National Bank of Canada’s quarterly Housing Affordability Monitor showed mortgage payments as a percentage of income had reached 83% in Toronto. As of June 2023, the price per square foot for a downtown apartment in The Six was US$820.74, making it the fifth most expensive city in North America after New York City, Boston, San Francisco and Vancouver when using this particular metric.
1,815
Height of the CN Tower – by far Canada’s tallest structure – in feet
49,286 Official capacity of Rogers Centre, home of the Toronto Blue Jays
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