Expanding the company’s global reach and maximising synergies AUGUST 2019 www.csomagazine.com
SUSTAINABILITY THROUGH TECHNOLOGY
Phoenix Rising CSO Mark Hartman reveals how its 2050 goals are making it one of the most sustainable desert cities in the world
Utility CEOs
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FOREWORD
W
elcome to the August edition
CPOs need to put sustainable
of CSO magazine!
procurement on the agenda.
For our cover story this month, Dan
In this month’s issue, CSO Magazine
Brightmore sits down with the Chief
takes an in-depth look at the world’s
Sustainability Officer for the City of
top utility companies and the CEOs
Phoenix to learn how the Arizona
leading them.
capital is striving to become
We also examine the top
one of the most
conferences and events
sustainable desert
you won’t want to miss
cities in the world. Next, Armacell’s Amber Jesic discusses how the company is
this year. Mark Hartman, CSO, City of Phoenix
using technology to support sustainable practices in its supply chain. As innovation continues at its blistering pace, CSO magazine takes a deeper look at how smart city technologies are reimagining urban life.
Don’t forget to also check out our other company profiles on Prysmian Group, Refinitiv, the City of Brampton and more.
Do you have a story that you’d like to share? If so, please get in touch at sophie.chapman@bizclikmedia.com Enjoy the issue! Sophie Chapman.
Elsewhere, Matt High examines how, when it comes to procurement,
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CONTENTS
12 RISING TO THE CHALLENGE OF ITS 2050 SUSTAINABILITY GOALS
32 How CPOs are fighting to put sustainable procurement on the agenda of every single company
40 How smart city technologies are changing the world How technology can enable a more sustainable agriculture industry
58 TOP 10 Utility CEOs
72 48
The biggest industry events
CONTENTS
76 Prysmian Group
94
108
Armacell
Simon Fraser University
126 City of Brampton
140
154
Refinitiv
ImpactAgri
12
The City of Phoenix: Rising to the challenge of its 2050 sustainability goals WRITTEN BY
DAN BRIGHTMORE PRODUCED BY
CRAIG KILLINGBACK
AUGUST 2019
13
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CITY OF PHOENIX
The City of Phoenix is working towards zero carbon, zero waste, a 100-year supply of water, clean air, and parks and transit in every neighborhood. CSO Mark Hartman reveals how its 2050 goals are making it one of the most sustainable desert cities in the world.
14
W
hen the Chief Sustainability Officer for the City of Phoenix took up his post in 2014 the target was to become the most
sustainable desert city in the world. Five years later, Mark Hartman and the very innovative department heads across the City are setting their sights on a sustainability roadmap for 2050 to ensure progress for future generations in Phoenix. “Back in 2016 when City departments adopted these goals we asked: ‘What kind of city do we want to be in 2050?’” explains Hartman. “Instead of thinking ‘How did we get here?’, we want to be able to say, ‘We planned to get to this place’ and this is what the perfect city looks like — our 2050 environmental goals aim to articulate those long term desired outcomes. Setting out the long-term environmental goals of zero carbon, zero waste, clean air, a 100-year supply of water, and parks and transit in every neighbourhood will drive us AUGUST 2019
15
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CITY OF PHOENIX
“ Setting out the longterm goals of zero carbon, zero waste, clean air, maintaining our 100-year supply of water, and parks and transit in every neighbourhood will really drive us towards what we’re trying to achieve as a city” 16
— Mark Hartman, CSO, City of Phoenix
AUGUST 2019
towards what we’re trying to achieve as a sustainable desert city.” A big part of that sustainability journey is a series of major projects including the 91st Avenue wastewater biogas project (the largest facility of its kind in the US). “Our water department is capturing methane from our wastewater, putting it in a pipeline and generating revenue by selling it to the California green energy market. It’s a great example of finding a use for the methane from wastewater treatment. In addition to the biogas, we actually reuse nearly all of the wastewater.
CLICK TO WATCH : ‘BECOMING A CARBON NEUTRAL CITY’ 17 We’re ahead of the curve, which
would just build a treatment plant
encompasses how we focus our
before releasing it into the waterways,”
approach in the desert.” Along with
he says. “Instead, we’ve constructed
the biogas production, reclaimed
the Tres Rios Wetlands. It’s significant
water is also being diverted into
because we’re using nature to do the
irrigation for farming and agriculture
work for us and at the same time,
and for cooling at the Palo Verde
it transformed this desertscape into
Nuclear Generating Station. Mean-
a beautiful wetland home to 150 species
while, the final by-products, the
of birds. So in contrast to many of our
bio-solids which amount to 10%
human behaviors that are slowly
of total waste, become fertilisers
contaminating our ecosystem, we are
for non-food crops.
being restorative and enhancing
Hartman also notes the city’s approach to the final polishing of water has evolved. “Typically, you
nature so that it can thrive.” It’s not just the city’s infrastructure that is evolving. Phoenix is also w w w.c so ma ga z i n e. com
CITY OF PHOENIX
18
supporting sustainable home devel-
the winning design and the detail
opment with a series of initiatives as
construction drawings from Imirzian
part of its vision to have all new
Architects on our website so anyone
buildings net positive in both energy
can download the pre-approved plans
and materials by 2050. “We ran a
for free to build a net-zero energy
$100,000 competition to design a
home at a cost similar to current
beautiful home that is sustainable and
construction. And here in Phoenix, we
near net-zero, and yet can be built at
won’t charge building permit fees for
the cost of typical construction,” says
the first 25 homes. It’s an opportunity
Hartman, who notes that even with
to encourage home buyers to think
adherence to the latest building codes
differently about the energy savings
we’re a long way from buildings that
from well-insulated walls and high-
need little energy to condition them.
performance windows.” Hartman
“Our planning department has posted
highlights this focus also extends
AUGUST 2019
to government buildings. “We’re doing
implement new processes. “Public
deep energy retrofits in all of our
Works recently installed a state-of-
facilities,” he says. “We’ve put forward
the-art $15mn facility where we take
proposals on three specific sites
organics and use a state-of-the-art
where the $30mn budget will actually
Turned Aerated Pile (TAP) system to
be paid back through energy savings. ”
produce certified compost faster
Phoenix is allied to the Covenant of
than other composting methods,”
Mayors, the world’s largest movement
he reveals. “In partnership with the
for local climate and energy actions,
City’s Compost Facility operator,
which has over 9,000 cities in partner-
WeCare Denali, we’re processing
ship worldwide to meet the commit-
nearly 55,000 tons of inbound organic
ments of the Paris Agreement, chiefly
waste to compost which is either sold
a 30% reduction in carbon by 2025.
regionally, used at City parks and
Hartman takes inspiration from this
properties, or provided to City
global quest as Phoenix looks to
residents at special give away events .”
E XE CU T I VE PRO FI LE
Mark Hartman, Chief Sustainability Officer Mark Hartman is Phoenix’s Chief Sustainability Officer, charged to catalyse the long list of actions already underway to help Phoenix become a global leader in sustainability. Most recently, in April 2016, the council approved the 2050 Environmental Goals and now, Hartman is working with departments and the community to develop interim goals and complementary social and economic goals. Hartman formerly worked at the City of Vancouver for eight years in sustainability leading their carbon-neutral buildings strategy and their green building code, as well as supporting Vancouver’s ambition to become the greenest city in the world by 2020. Mark holds an MBA from Heriot-Watt University and is a LEED accredited professional.
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19
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Hartman believes the biggest challenge any city faces in pursuit of its sustainability goals is to break the cycle of the human propensity to do things the way they’ve always been done. “We are reluctant to embrace change, even when we’re presented with amazing opportunities,” he says. “We’re using more resources than is within the earth’s carrying capacity which is not sustainable long term. We need to start thinking about solutions to reduce waste in all of our systems, and inspire innovation to see
$1.4bn Approximate revenue
1881
Year founded
14,000+
Approximate number of employees
what’s really possible.”
21
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CITY OF PHOENIX
Collaboration is key for the ongoing sustainable evolution of Phoenix. “We’re working with established partners to help us with technology and innovation,” confirms Hartman. “For our retrofits, we’re utilising the expertise of Ameresco, Honeywell, Trane, McKinsey and Noresco. They bring decades of experience to help us achieve our goals with systems that are easy to use and operate.” These efforts are part of the city’s 2020 goals to retrofit 185 City buildings 22
to make them 20% more efficient. “Ameresco is also running our 91st Avenue biogas facility as well as being the contractor that build it,” he adds. What sustainability trends has Hartman identified globally, and across the US, that can support Phoenix with its 2050 goals? “I’m excited about the potential to purchase renewable energy,” he observes. “We’re in a regulated environment, so it needs to be in partnership with our utilities. We’re looking at options like virtual power purchase agreements and ways you can procure energy from renewable sources that are equivalent to, or less than, current AUGUST 2019
utility pricing. It is possible to save money when you buy renewable energy.” Allied to this, Hartman is keen to make these opportunities available through community solar projects by partnering with a utility to implement solar and help reduce electricity costs in lower-income areas. “We also hope to partner with Clearway Energy to provide clean electricity to the district cooling system to offer carbon-neutral cooling to downtown buildings.” Hartman believes that, from a carbon pollution point of view, there are huge opportunities to apply the same learnings from making buildings more energy-efficient to transportation. “There’s a real move towards electrification of transportation,” he notes. “Norway’s electric vehicle sales now make up more than 70% of the market and countries like China see electrifying cars and buses as the solution to pollution.” Elsewhere, the Street Department just completed an upgrade of its 95,000 street lights to LED. It may have cost $30mn but Hartman points out that it pays for itself out of the energy savings, with the net savings w w w.c so ma ga z i n e. com
23
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exceeding $1.5mn per year over and above the debt service cost, while providing better quality and more reliable lighting. Another goal for Hartman is to see Phoenix move towards a circular economy: “What if all the products and packaging we purchase was 100% recyclable and everything went back to the suppliers, and then, they used them for reproduction?” He notes that the Public Works department is visionary as it was the first city in the US to join the Ellen MacArthur CE-100 Network, an industry catalyst AUGUST 2019
for the circular economy. In partnership with the Arizona State University, the City launched the RISN Incubator to work with early stage ventures with a focus on waste diversion and improvements in processing or utilisation of waste as a raw material for new products or energy. As of 1 May 2019, 13 new businesses have generated $4.75M in revenue, raised $3.44M in capital, created 57 jobs, launched 13 products, filed 3 patents, and provided 43 internships. “We’re
“ We’re looking at options like virtual power purchase agreements and ways you can actually build and contract to get energy from a solar plant that’s equivalent to, or less than, current pricing” — Mark Hartman, CSO, City of Phoenix 25
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CITY OF PHOENIX
20 50 GOALS • Make walking, cycling and transit commonly used in every Phoenix neighbourhood • Create zero waste through participation in the circular economy • Maintain a clean and reliable 100-year supply of water
26
• Reduce community carbon emissions by 80-90% • All residents to live within a five-minute walk of a park or open space • Achieve a level of air quality healthy for all residents and the natural environment • Maintain a sustainable, healthy, equitable, thriving local food system.
AUGUST 2019
working with the private sector providing feedstock and land for lease at attractive rates to turn palm fronds into animal feed and mixed plastics into fuel... It’s exciting to look at how we can turn waste into resources instead of dumping it in a huge hole in the ground. Here in Phoenix we could fill our baseball stadium seven times with the waste we collect from residential customers. What are the resources we could take out of that seven stadiums worth of waste? Whether that’s up-cycling furniture or using plastic bags to make decking— we need to be creative. Meanwhile, the trucks that pick up that waste travel the equivalent of going to the moon and back 14 times. People say ‘it’s free to throw stuff away’, but it’s certainly is not free. Imagine the fuel needed to travel to the moon 14 times in a garbage truck. One opportunity to address this fuel use is underway for our landfill gas, whereby the methane will be captured and converted into cleaner burning natural gas to fuel our garbage trucks. This will ensure cleaner air and avoids mining natural gas by replacing it with methane produced in our landfill.” w w w.c so ma ga z i n e. com
27
CITY OF PHOENIX
PA R T N E R I N F O
Phoenix: supporting renewable energy and products through utilities
28
“We’re working with Arizona Public Service (APS) and Salt River Project (SRP),” explains City of Phoenix CSO Mark Hartman. “SRP wants to add 1000MW of utility-scale solar over the next five years. The first 100MW they made available to their largest customers. The city will be able to purchase solar at 2.7 cents per kilowatt hour for 20 years, and then sell it on the market at prevailing rates, which today averages over 3 cents, which means a large credit on our bill. As both customers and
AUGUST 2019
utilities invest in projects like this, its producing clean energy while saving money.” Hartman hopes to see many more of these projects. Phoenix already boasts 32MW of solar on city land, more than any other US city, and aims to double that figure. “We’re planning to add solar to parking lots, rooftops and unused land,” he pledges. “We’re also looking to lease out landfill property to utilities and renewable energy developers as a means to provide clean energy.”
29 In the short term, the city is on track to
sustainability as articulated in the
meet its target of 40% waste diversion
City’s General Plan — community
by 2020. Meanwhile, Phoenix is
health and education, equity, civil and
working hard with energy service
human rights, and safe communities
companies (ESCOs) to reduce building energy use by 20% for next
— in order to become a truly sustainable desert city.
year and targeting 15% for renewable energy used city-wide from diversified sources. Ultimately, Hartman stresses the need to also prioritise economic and social sustainability. “Environmentally there’s much we can do to raise awareness and make positive change but those outcomes must be achieved alongside economic and social w w w.c so ma ga z i n e. com
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S U S TA I N A B L E P R O C U R E M E N T
32
How CPOs are fighting to put sustainable procurement on the agenda of every single company When it comes to procurement, focusing on price or service levels is no longer enough; smart CPOs must build sustainability into their procurement function. WRITTEN BY
AUGUST 2019
M AT T HIGH
33
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S U S TA I N A B L E P R O C U R E M E N T
“F
irms that align their business models to the transition to a carbon neutral world will be rewarded handsomely; those that fail to
adapt will cease to exist.” This was the warning
given by Bank of England Governor Mark Carney at his annual Mansion House speech on 21 June. While Carney’s focus was on the wider opportunities – and challenges – of transitioning to a carbon neutral economy, his words reinforce the broader message for businesses: environmental, corporate and social responsibility and a focus on sustainability will drive success. For the procurement function, this is no different. Over the last decade, the role of the Chief Procure34
ment Officer (CPO) has seen increasing time spent on implementing sustainable practices into the procurement function. “Sustainability is no longer ‘a nice to have’, it’s a business imperative,” says Vaughan Lindsay, CEO of ClimateCare, which works with organisations on climate and sustainability issues. For Lindsay, many industries’ most significant impacts are “beyond their four walls, in their supply chain and the use of their products.” A procurement team is uniquely placed, he believes, to act on sustainability as it already provides a framework for evaluating suppliers against more traditional parameters, such as cost or service levels. Lindsay explains sustainability performance must be given the same weight as those traditional parameters, requiring a change in thinking from a ‘do no harm’ approach – which AUGUST 2019
“Sustainability is no longer a ‘nice to have’, it’s a business imperative” — Vaughan Lindsay, CEO, ClimateCare 35
ensures suppliers comply with existing policies – to rewarding against environmental and sustainability credentials. For most businesses, drivers of sustainable procurement fall broadly under the ‘risk management’ banner: improving internal and external standards, building a sustainable and more efficient supply chain, meeting the demands of increasingly conscientious consumers and investors, screening suppliers that pose a potential risk and facing up to intense focus on brand reputation. w w w.c so ma ga z i n e. com
S U S TA I N A B L E P R O C U R E M E N T
“First and foremost, a successful sustainable procurement strategy needs to align with a company’s core values and culture” 36
— Timo Worrall, Director of Supplier Social Responsibility, Johnson & Johnson
AUGUST 2019
Typically, modern procurement functions leverage a broad range of purchasing and partnering policies. These include new supplier codes of conduct and self-assessment that guide procurement strategies and choice of supplier, drawing on data and technology, such as blockchain, to give a greater overview of supplier and procurement functions. This increases the focus on collaboration – both internally so that every individual within the organisation is working towards the same goals and externally across the supply
CLICK TO WATCH : ‘JOHNSON & JOHNSON PARTNERING WITH SUPPLIERS FOR SUSTAINABILITY’ 37 ecosystem – and investing in social
and science.” This, Worrall adds,
enterprises or philanthropic causes.
“is the guiding light for our sustainable
Timo Worrall, Director of Supplier Social Responsibility at Johnson &
procurement programme.” It’s no empty gesture either. To date,
Johnson has been at the forefront
the company has spent US$1.5bn with
of the global healthcare company’s
diverse suppliers across the world and
sustainability drive. “First and foremost,”
committed 3% of its purchasing spend
he says, “a successful sustainable
in the UK on social enterprises to help
procurement strategy needs to align
support 150 jobs. Not only does this
with a company’s core values and
meet business imperatives (building
culture.” For Johnson & Johnson,
diversity in suppliers, gaining access to
that vision is being the most trusted
new innovations), it promotes a positive
company for transforming lives in
organisational culture that contributes
underserved communities through
to wider society. Johnson & Johnson is
its expertise in healthcare, wellbeing
also a founding partner w w w.c so ma ga z i n e. com
S U S TA I N A B L E P R O C U R E M E N T
“Our ambition is to put sustainable procurement on the agenda of every single company” 38
— Timo Worrall, Director of Supplier Social Responsibility, Johnson & Johnson
of the Buy Social Corporate Challenge
overlooked: “ambitions will only be
(BSCC), led by SEUK, which aims
realised through a coordinated internal
to redirect corporate supply chain
effort involving procurement personnel,
spending to deliver support for some
category leads, commercial teams and
of the most disadvantaged groups
supply chain teams. This is under-
in the UK.
pinned by support from colleagues in
As to the practicalities of successful
Corporate Social Responsibility, Global
sustainable procurement, Worrall cites
Community Impact and Government
collaboration as “indispensable”.
Affairs.” Externally, the business uses
Focusing internally, he says, is an
its advocacy of sustainable procure-
important first step that’s often
ment to build global awareness with
AUGUST 2019
says, emerging technology such as the Internet of Things (IoT), blockchain and artificial intelligence (AI) will play a major role in addressing environmental concerns through “complete traceability to allow sustainability decisions to be made, therefore increasing productivity, lowering costs, while minimising environmental footprint and impact. In a world moving towards a more sustainable future, those which don’t embrace the necessary technologies now risk getting left behind.” Sustainability continues to be a key driver of the procurement processes for businesses, seeigreater emphasis on the role of CPOs and the teams they work with. In an increasingly global business environment where suppliers the aim of “placing [it] firmly on the
stretch across emerging markets that
business agenda” in growing markets
challenge only amplifies. The pay off,
such as China and India.
of course, is well worth that challenge,
At a more granular level, a greater
as Worrall explains: “our ambition is to
focus on data and new technologies is
put sustainable procurement on the
being used to build more trust in the
agenda of every single company. It is
procurement function. The biggest
far from charity work; it serves a specific
challenge, according to Industries
business purpose, and it serves it well,
President at IFS, Antony Bourne, is
and this is the type of example that
the “ability to acquire and trust the data
every company should be setting in
collated on suppliers”. As a result, he
the coming years”. w w w.c so ma ga z i n e. com
39
TECHNOLOGY
40
How smart city technologies are changing the world WRITTEN BY
AUGUST 2019
SOPHIE CHAPM AN
41
As technologies continue to advance across the globe, CSO Magazine evaluates the innovations smart cities have to offer
w w w.c so ma ga z i n e. com
TECHNOLOGY
SIDEWALK LABS Owned by Alphabet, Sidewalk Labs is one of the most prominent smart city-focused companies. The firm aims to improve urban living by addressing issues such as rising rent prices and environmental damage. “New technology can help, but people can’t afford to wait for digital advances to transform the urban environment. So we’re creating a new type of place to accelerate urban innovation and serve as a beacon for cities around the world,” the company claims. Debuting its technologies in Toronto, Canada, the company is 42
working on a project on the Eastern Waterfront. Sidewalk Labs is working with Waterfront Toronto and the local community to improve mobility, housing and real estate, city services and public spaces by making them more safe, sustainable and efficient. The firm recently released its Master Innovation and Development Plan (MIDP) for the project, including a breakdown of job prosperity and energy management. Whilst anticipating to create 44,000 jobs in the area, the plan sees an 89% reduction of the city’s carbon emissions and an 80% reduction of waste going to landfill through innovations and technologies. Sidewalk Labs has outlined an energy-efficient building strategy that will see a reduction in energy demand, and intends to ease the issue of fossil fuel reliance with an AUGUST 2019
43
“ We’re creating a new type of place to accelerate urban innovation and serve as a beacon for cities around the world” — Sidewalk Labs
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TECHNOLOGY
advanced power grid that uses solar
South Korea was the first nation to
energy, battery storage and real-time
adopt the technology on a large scale,
energy pricing. The firm is working on
but has been closely followed by
digital management tools to combat
countries from across the world.
energy waste and smart disposal
European telecommunications
chains to manage landfill waste.
companies, such as EE and Deutsche Telekom, have already launched 5G
44
5G
technology in the UK and Germany.
As technology finds its way to the
Telecom Italia partnered with Ericsson
forefront of smart cities, more and
to open Italy’s first 5G-connected
more locations are preparing infra-
airport, the Leonardo da Vinci Fiumi-
structure to support 5G connectivity.
cino Airport in Rome. Telstra launched
“ As spending on smart cities expands along with technology, it is expected the market will be worth US$189.5bn by 2023�
AUGUST 2019
CLICK TO WATCH : ‘SIDEWALK TORONTO: THE NEIGHBORHOOD OF THE FUTURE STARTS WITH YOUR IDEAS’ 45 the first 5G smart hub in Australia.
ENERGY
The technology is also being
As spending on smart cities expands
introduced to car racing, gaming,
along with technology, it is expected
and drone taxis.
that the market will be worth
Forbes recently released data on
US$189.5bn by 2023. According to
the impact 5G technology is having
the Worldwide Semiannual Smart
on the countries using it. The US
Cities Spending Guide released by
is seeing the most success with
marketing intelligence company IDC,
maximum download speeds reaching
smart city funding will mostly be
1,815Mbps, followed by Switzerland
invested in energy projects, infra-
and South Korea at 1,145Mbps and
structure, intelligent transport and
1,071Mbps respectively. Australia is
public safety. As renewable energy
hitting figures of 792Mbps, but is the
projects now account for 63% of all
only nation to have its 4G users hit
new power capacity, according to
higher maximum download speeds.
the International Renewable Energy w w w.c so ma ga z i n e. com
TECHNOLOGY
Agency (IRENA), the proliferation of smart grids will only continue at a faster pace. With the technology connecting utilities and consumers, digital is enabling energy grids to better respond to electricity demand. Smart grids are designed to transmit electricity more efficiently, reduce costs, lower peak demand, restore power quicker in the event of disturbances, better integrate renewable projects, and have heightened security.
SMART GRIDS 46
By 2025, the smart grid industry is anticipated to be the largest emerging market, according to the Global Smart Grid Market study released by Big Market Research. The industry was worth US$66.96bn in 2017 and is expected to be worth $169.19bn by 2025, growing at a compound annual growth rate (CAGR) of 12.4% between the two periods, Allied Market Research claims. Despite North America contributing the most to the market in 2017, the APAC region is expected to grow at the highest speed, with its CAGR set to reach 13.9% in the review period. Companies such as Wipro Limited, Cisco AUGUST 2019
Systems, Siemens, Schneider Electric, Honeywell International and Oracle were highlighted in the report as key market players – being commended for mergers, acquisitions, partnerships and new product launches.
URBAN FUTURE The mass technological growth currently underway is extending to all industries and sectors, influencing future innovations and markets. This certainly applies to the smart city industry, as digital is enabling more sustainable practices in some of the world’s busiest locations. Heightened energy efficiency, reduced carbon emissions and the development of smart grids are all becoming more prominent, as well as improved safety, less traffic and better housing. As this continues, it is unclear whatthe future holds for the smartest cities across the globe.
w w w.c so ma ga z i n e. com
47
S U S TA I N A B I L I T Y
48
How technology can enable a more sustainable agriculture industry Against multiple risk factors and changing consumer behaviour, the agricultural sector’s focus on corporate social responsibility is increasing WRITTEN BY
M AT T HIGH
AUGUST 2019
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S U S TA I N A B I L I T Y
I
s global agriculture fit for the future? According to the World Economic Forum, by 2050 the global demand for food will be 60% greater
than today. The United Nations (UN), as part of its Sustainable Development Goals (SDGs), has earmarked ending world hunger and achieving food security as key priorities. There are further significant, and interconnected risks and impacts that the agricultural sector also faces. According to Simon Davis, Principal Sustainable Agrifood Consultant at global
50
sustainability consultancy Anthesis: “65% of poor working adults make a living in the industry; it has been estimatedto be responsible for 25% of global GHG (greenhouse gas) emissions and 70% of total water use; there’s been a 60% biodiversity decline in the last 40 years; one third of all food produced is wasted and 46% of trees have been felled since humans started cutting down our forests, in large part to make way for agriculture.” The sector also faces considerable pressure in terms of its transparency, largely driven by shifting consumer preferences for responsibly sourced and environmentally-friendly goods. The UK, for example, has seen shoppers transition away from typical agricultural commodities towards ‘free-from’ or alternative options that combine health, sustainability and quality. AUGUST 2019
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“ One third of all food produced is wasted and 46% of trees have been felled since humans started cutting down our forests” — Simon Davis, Principal Sustainable Agrifood Consultant, Anthesis w w w.c so ma ga z i n e. com
S U S TA I N A B I L I T Y
“ Through the use of satellite data, remote sensing and mapping, farmers, businesses can harness the most relevant and useful information to improve and adapt practices and ensure sustainability” 52
— Andre Laperriere, Executive Director of Global Open Data, Agriculture & Nutrition
It means that farmers worldwide must work harder and smarter in embedding corporate social responsibility (CSR) practices into their operations. Davis, who through Anthesis delivers financially driven sustainability strategies, strongly believes that sustainability is no longer a choice. “The agricultural sector is intrinsic to a wide range of global systems, societies and economies,” he says, adding that those organisations that do not embed sustainability best practice into their supply chains will face “increasing risk of price volatility, security of supply, commodity shortages, fraud and uncertainty.” To counter this, he urges businesses to develop CSR founded on a core set of principles that enable sustainable practices to be successfully adopted at a pace and scale that mitigates those risks discussed.
AUGUST 2019
CLICK TO WATCH : ‘ANDRÉ LAPERRIERE AT SWAT4HCLS CONFERENCE’ 53 Data is proving a particularly useful tool in this regard. Take the Cool Farm
and best practice on carbon and water reductions strategies.
Tool, for example, which is a global,
Andre Laperriere, Executive
free-to-access online greenhouse
Director at Global Open Data for
gas (GHG), water and biodiversity
Agriculture & Nutrition (GODAN), says
footprint calculator used by farmers
that, while many farmers have CSR
in more than 115 countries worldwide
strategies embedded in their farm
to enable effective management of
management processes, others have
critical on-farm sustainability chal-
“left it on the back burner”. GODAN
lenges. Member organisations such
is a government-supported initiative
as Pepsi, Tesco and Danone aggre-
advocating the proactive sharing
gate their supply chain data to report
of open data to provide access to
total agricultural footprint against key
information about agriculture and
sustainability metrics – outputs from
nutrition available to meet food
which are used to share knowledge
security concerns. w w w.c so ma ga z i n e. com
S U S TA I N A B I L I T Y
Laperriere believes technology, particularly developments in artificial intelligence (AI) and data, will be game-changing for the farming industry in terms of building both sustainability and resilience. While open data has been used to streamline business operations for some years, he says its capabilities have yet to be fully considered in farming. “The potential for the use of open data to combat food issues is continuing to be recognised, not only because 54
of the relevant historical data open data can harbour, but also its potential to help increase the production of crops,” he explains. “With increased access and sharing of data, farmers will be enabled to
Data aside, Laperriere also stresses
harness the data for practical uses
the importance of more traditional
such as monitoring water supplies
CSR-led agricultural practices.
and anticipating changes in the
Organic farming techniques such
weather. Through the use of satellite
as crop rotation, which can better
data, remote sensing and mapping,
care for the land, or improving soil
farmers, businesses and consumers
quality, plant growth and natural
in the agricultural industry can
diversityby natural animal raising are
harness the most relevant and useful
equally important, he says, as is being
information to improve and adapt
responsible locally. For example,
practices, make better decisions and
small-scale farming can still use toxic
ensure sustainability.”
chemicalsand not necessarily follow
AUGUST 2019
55
the same rigorous standard when it
forefront of policy agendas.
comesto areas such as water usage.
“A mix of entrepreneurial mindsets
Whether local or global, however, the
and integrated thinking coupled with
onus on CSR has never been greater
technology, data and incentives will
for those in the agricultural sector.
futureproof the sector for further
Both Davis and Laperriere concede
generations,” Davis notes. “We need
that the responsibility lies chiefly with
to be collectively ambitious enough to
those in the industry to ensure their
ensure we are delivering value at the
CSR practices meet the challenges
scale and pace of change required,
posed. Government and policymakers
but I’m confident we have the right
must also ensure that sustainability
level of passion and purpose within
in the wider sense remains at the
the sector to make this happen.” w w w.c so ma ga z i n e. com
UNDER THE PATRONAGE OF H.H. SHEIKH KHALIFA BIN ZAYED AL NAHYAN PRESIDENT OF THE UNITED ARAB EMIRATES
BE A PART OF THE MOST INFLUENTIAL ENERGY CONGRESS ABU DHABI, 9-12 SEPTEMBER 2019
15,000 Attendees
7,000
Trade Visitors
4,000 Delegates
2,500 Exhibitors
600 Media
500 CEOs
250
Speakers
70
Ministers
THE GLOBAL LEADERSHIP FORUM THAT DEFINES THE STRATEGY FOR A COLLABORATIVE, SUSTAINABLE AND INNOVATIVE ENERGY FUTURE, THAT ENABLES SOCIETAL, COMMERCIAL AND COMMUNITY PROSPERITY.
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The 24th World Energy Congress Programme
T
he Congress programme has been developed to provide an environment to provoke the world’s energy leadership to re-evaluate their strategic planning. Although we expect to welcome 4,000 delegates, the programme is designed with an audience in mind that consists of just four people – an energy minister, a producer CEO, a user CEO and a bellwether financier. The programme only consists of content that motivates and deserves the interest of these representatives of the industry’s top leadership. If you are a leader in the energy market, or want to share the information that influences these leaders’ decision making, you will attend the Congress programme. Under the theme of “Energy for Prosperity”, the main four-day Congress programme has over 70 sessions that address the critical issues across all sectors and regions in the energy market. It focuses on prosperity for nations, for corporations, for societies, the environment and individuals.
Content is driven by cold facts and case studies, and coloured by provocative opinion from experts from every side of the debate to ensure an inspiring, informative and
unique content experience. With no agenda, political or preconceptions, the programme will deliver the information and interpretation that allows better decisions to be made. The programme looks at the energy market in the realistic context of economic uncertainty, political instability, material possibility and opportunity. The reality is that tomorrow’s energy goals cannot be realized with the tools, technologies and trading environment that is in place today. These goals will require radical thinking that provides a secure, environmentally-sympathetic and prosperous transition. The programme focuses on how the entire global energy ecosystem may work together to ensure a regulatory, investment, technological and skills environment that delivers real change. Running under the aegis of the main Congress programme are a series of side events, co-produced with hand-picked partners from thought, investment, innovation and business leadership. These side events allow delegates to dive deeper into topics of interest, and enter into detailed debate with top experts, market influencers and visionaries.
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The programme has been curated to deliver an experience that requires the attendance of industry’s leadership. Do not expect to agree with everything you hear, but do expect to have to evaluate whether your existing values and beliefs are correct.
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AUGUST 2019
Utility CEOs
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Providing power to households across the globe, the utility industry is a lucrative market to be in. CSO Magazine takes an in-depth look at the world’s top utility companies by market value, according to Investopedia, and the CEOs leading them. WRITTEN BY
LAURA MULLAN
w w w.c so ma ga z i n e. com
TOP 10
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Christopher Crane [ E X E L ON ] Headed up by President and Chief Executive Officer Christopher Crane, Chicago-based Exelon touts itself as ‘America’s leading competitive energy provider’, doing business in 48 states as well as the District of Columbia and Canada. In 2015, Crane was named among the 100 most powerful Chicagoans in the city and today, he oversees a family of companies including Exelon Generation, one of the largest competitive US power generators, Constellation, which provides energy products and services to around two million customers and Exelon’s six utilities.
AUGUST 2019
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Thomas Fanning [ S OU T HE R N C OMPA N Y ] Headquartered in Atlanta, Georgia, the Southern Company brings electricity and gas to nine million customers every day, making it the second-largest utility company in the US in terms of customer base. With more than 35 years of experience in total at the firm, Thomas Fanning has been Chairman, President and CEO of the business since 2010, overseeing a 32,000-strong team. Fanning also serves as chair of the Federal Reserve Bank of Atlanta.
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TOP 10
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Jose Ignacio Sanchez Galan [ IBE R DR OL A ] Hailing from Bilbao in Basque Country, Spain, Iberdrola is an international energy leader that produces and supplies electricity to more than 100 million people. Led by Chairman and CEO, Jose Ignacio Sanchez Galan, the firm owns subsidiaries such as Scottish Power, Avangrid and Neoenergia, amongst others. The company recently unveiled plans to invest â‚Ź13bn in its renewable energy business by 2022.
AUGUST 2019
63
Thomas Farrell [ DOMINION ENERGY ] Dominion Energy, commonly dubbed Dominion, is one of the largest producers and transporters of energy in the US. Boasting the fourth largest solar fleet in the country, more than 85% of the firm’s current energy generation comes from clean energy sources or natural gas. Thomas Farrell first joined the company in 2004, and now he’s the firm’s chairman, president and CEO. In 2018, Dominion Energy contributed more than $30mn in 2018 to community causes throughout its footprint and beyond.
w w w.c so ma ga z i n e. com
TOP 10
64
Francesco Starace [ E NE L ] Under the guidance of CEO and General Manager, Francesco Starace, Enel Group has gone from strength to strength. During his tenure, Starace has helped to oversee the initial public offering (IPO) of the Italian energy company and its listing on the Milan and Madrid Stock Exchanges, with a market capitalisation of ₏8bn. Enel’s operations span 34 countries across five continents, and it has almost 73 million end-users around the world.
AUGUST 2019
65
Simone Rossi [ E DF ] ÉlectricitÊ de France SA, commonly known as EDF, is a French stateowned energy firm led Simone Rossi. In 2017, he was appointed as Chief Executive Officer of EDF Energy and he is also a member of the Executive Committee of EDF Group. A worldwide brand, EDF is present in countries including France, Belgium, the United States, Poland, Italy, China, Vietnam among others.
w w w.c so ma ga z i n e. com
TOP 10
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James Robo [ NE X T E R A E NE R G Y INC . ] A pioneering investment company, NextEra Energy Inc. is a Fortune 200 firm located in Juno Beach, Florida. The US firm claims to be one of America’s largest capital investors in infrastructure, with plans to invest $40bn by 2020. Guided by Chairman and CEO, James Robo, the firm owns two electric companies in Florida, Florida Power & Light Company and Gulf Power Company, as well as a competitive energy business called NextEra Energy Resource.
AUGUST 2019
67
John Pettigrew [ N AT ION A L G R ID ] London-based National Grid PLC is a multinational electricity and gas utility company which, as of June 2018, had around 25,000 employees, $20bn in revenue and a $37.99bn market capitalisation. John Pettigrew joined the firm as a graduate nearly 26 years ago and today he stands as the firm’s Chief Executive. In July 2019, National Grid completed its $100mn acquisition Geronimo Energy, a leading wind and solar developer in North America.
w w w.c so ma ga z i n e. com
TOP 10
Isabelle Kocher [ E NGIE ] Reporting turnover of ₏60.6bn in 2018, Engie has earned its stripes for its low-carbon energy and services. French businesswoman Isabelle Kocher joined the group in 2002 and she now stands as the firm’s CEO. Kocher is the only female CEO of a CAC40 company, and also one of the youngest. Her long-term goal is to make Engie a leader in the energy revolution.
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AUGUST 2019
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TOP 10
Lynn Good [ DUK E E NE R G Y ] With an impressive market capitalisation of around $64bn, Duke Energy is one of the largest electric power holding companies in the US, providing electricity to around 7.7 million retail customers in six states. The firm is headed up by chairman, president and CEO, Lynn Good, who Fortune Magazine named as the 11th ‘Most Powerful Women in Business’. “Under her leadership, Duke Energy 70
has intensified its focus on serving its customers and communities well today while leading the way to a cleaner, smarter energy future,” the company’s website says.
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EVENTS & A S S O C I AT I O N S
The biggest industry events and conferences EDITED BY SOPHIE CHAPMAN from around the world
2–3 SEPTEMBER
Sustainable Foods Summit Asia-Pacific [ BALI, INDONESIA ]
27–29 AUGUST
72
Intersolar South America 2019
The APAC edition of the Sustainable Foods Summit is now in its third iteration, this year with a focus on ethical
[ SÃO PAULO, BRAZIL ]
sourcing and supply chain transparency.
With 11,500+ visitors, 1,500+ conference
The event includes conference ses-
attendees and 180 exhibitors, Intersolar
sions on ingredients, packaging and
has become the most important platform
more. With sister events taking place in
for manufacturers, suppliers, distributors,
Europe, Latin America and North Amer-
service providers, investors and partners
ica, the organisers, Ecovia Intelligence,
of the solar industry. Intersolar South
promise that the Bali event will be car-
America takes place at the Expo Center
bon neutral, with any impact measured
Norte in São Paulo, Brazil in August has
and offset. Globally, the summit has
a focus on the areas of photovoltaics,
been going since 2009, and Ecovia
PV production technologies, energy
also provides research publications on
storage and solar thermal technologies.
topics like cosmetics, textiles and sustainable packaging.
AUGUST 2019
16–17 OCTOBER
Offshore Wind Executive Summit
Ethical Corporation’s Sustainability Reporting and Communications Summit 2019
[ HOUSTON, TX, USA ]
[ AMSTERDAM, NETHERLANDS ]
Bringing together decision makers from
Join over 300 global CEOs, investors
wind and offshore oil and gas, both from
and heads of business for this two-day
the US and Europe, the Offshore Wind
event to learn how businesses can pro-
Executive Summit looks at technology
mote greater transparency and shape
innovation, design, foundations, vessels,
the future of sustainability reporting
cabling and workforce skills. The sum-
and communications. Speakers at this
mit provides the forum to establish new
year’s event include Frances Way, Chief
business relationships. Discussion
Strategy Office at CDP, Rasmus Skov,
points include project development,
Head of Group Sustainability at Orsted,
important policy issues and supply
as well as Fiona Wild, Vice President,
chain management.
Climate Change and Sustainability at
9–10 SEPTEMBER
BHP Billiton.
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EVENTS & A S S O C I AT I O N S
17–20 OCTOBER
IEEVChina [ BEIJING, CHINA ]
IEEVChina, or the International New Energy and Intelligent Connected Vehicles Exhibition, dubs itself as the 74
“largest professional event in Asia”. It will include exhibitors covering topics
12–14 NOVEMBER
such as intelligent transportation, inter-
BSR Conference 2019
net and communications, AI and new
[ SAN JOSE, CA, USA ]
energy. The event will operate across
This year marks the 27th annual BSR
five indoor exhibition halls, 10 feature
conference, one of the most prestigious
exhibition areas and one outdoor test
sustainability events in the business
driving experience area. Concurrent
calendar. The theme for this year’s event
forums will also take place across
is ‘The New Climate for Business’. BSR
China. This year’s event is hosted by
speakers will include global leaders
the China Council for the Promotion
spanning business, sustainability and
of International Trade Machinery Sub-
civil society. Last year’s event, saw
Council, the China Electrotechnical
speakers including Kate Brandt, Google
Society, Autoknow Magazine, Global
Sustainability Officer at Google and
Auto Group and China Automotive
Marie-Claire Daveu, Chief Sustainabil-
Engineering Research Institute Co Ltd.
ity Officer and Head of International Institutional Affairs at Kering.
AUGUST 2019
4–5 FEBRUARY
edie Sustainability POWERGEN International Leaders Forum 2020 [ LONDON, UK ] exhibition & summit 19–21 NOVEMBER
[ NEW ORLEANS, US ]
The edie Sustainability Leaders Forum
With over 14,000 people attending last
is set to host over 300 sustainability
years’ event, POWERGEN International
leaders from CEOs and sustainability
is a must-see summit for generators,
directors to policymakers and NGOs.
utilities and solution-providers
The forum includes global names like
engaged in power generation.
Unilever, Coca Cola, P&G, NG, AXA and
“The exhibit hall provides an interactive
more. The event is organised by edie, a
experience personalised to connect
sustainable business media organisa-
attendees with the latest technology
tion which provides research and
and innovations in the conventional
reports for sustainability professionals.
and renewable markets from around
It also organises industry awards which
the world,” reads the event’s website.
recognises those who are “redefining
“The summit and knowledge hubs
what it means to be a sustainable, ethi-
deliver transformative content includ-
cal and responsible business”. The
ing disruption from conventional and
awards include categories such as con-
emerging, clean and sustained energy
sultancy of the year, carbon reduction,
sources, niche technologies and the
energy efficiency, rising sustainability
fluctuation of economics and policy.”
star and sustainable supply chains.
w w w.c so ma ga z i n e. com
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PRYSMIAN GROUP GOES GLOBAL WITH ITS LATEST ACQUISITION WRITTEN BY
DAN BRIGHTMORE PRODUCED BY
DENITRA PRICE
AUGUST 2019
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PRYSMIAN GROUP
PRYSMIAN GROUP’S SUPPLY CHAIN DIRECTOR, GIANMICHELE ALIVIA, AND CPO, NA BRIAN SCHULTIES, REVEAL HOW ITS MERGER WITH GENERAL CABLE HAS EXPANDED THE COMPANY’S GLOBAL REACH AND OFFERED THE OPPORTUNITY TO MAXIMISE ITS SYNERGIES
P 78
rysmian Group is now a global force in the energy and telecom cable systems industry. Boasting nearly 140 years’
experience, the company’s wide service offering has driven sales exceeding €11bn via a 29,000-strong workforce operating in over 50 countries across 112 plants worldwide. Since the $3bn acquisition of General Cable in 2018, the group is embracing the complex transformation required to merge company cultures and meet the needs of a global footprint, while managing the synergies between procurement processes, supply chain and operations. Prysmian’s CPO, NA Brian Schulties worked at General Cable, starting in 2006, so he has a unique perspective on the challenges ahead. “While the re-organisation was challenging, it was timely,” he reveals. “We’re merging two cultures into one and it’s not something you do in 30 days…” Senior Supply Chain Director Gianmichele Alivia AUGUST 2019
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Bekaert is a strategic and long-term partner for us on steel wire and cables. Their high quality, focus on research and innovation, new product development and responsiveness enable Prysmian/ General Cable to be successful in serving the market. We truly appreciate the relationship and push to be stronger together for many years to come.” Arvind Parsa, Director of Metals
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CLICK TO WATCH : ‘PRYSMIAN GROUP AND GENERAL CABLE JOIN FORCES’ 81
agrees: “Setting up the new organisation
less what the legacy Pirelli company
was only a part of the work that had
was doing globally. All of the challenges
to be done. We’re now starting the
are mastered here. Since the acquisition,
discussions about merging the ERP
we’ve been working to bring these two
systems and the tools we need.”
entities together. North America is where
Following its acquisition by Goldman
the bulk of the general cable business
Sachs in 2005, the former Pirelli
was and so this is where the majority
Cables & Systems (where Schulties
of the effort has been placed.” That
also worked prior to General Cable)
effort has included the integration of
was renamed Prysmian. “The company
5,000 staff while managing fixed costs,
has grown tremendously in the past
something that has been key to Prysmi-
year,” explains Alivia. “We generate
an’s success as a lean organisation.
approximately $4.1bn in revenue in North America, which was more or
Schulties admits a $3bn acquisition invites a period of instability. w w w.c so ma ga z i n e. com
PRYSMIAN GROUP
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AUGUST 2019
“Expectations since the merger are high, and we only have two years from start-to-finish to work on the synergies – beyond that it becomes the normal course of business.” He cites the success of the integration of Draka into Prysmian Group in 2011 and notes that CEO Valerio Battista has stated the progress with synergies is ahead of schedule. Alivia adds that the same challenge is being tackled on the supply chain side “The first step was to look at inventory (since the merger inventory locations have dropped from 77 to 70) but now we’re analysing more complex points including the rationalization of our network where inventory is kept, our flows, product location and distribution. We need to ensure we make the right product in the best facility,” he explains. Prysmian is engaged in setting new contracts with carriers and working on their implementation with third-party logistics companies essential for managing the network. “It’s not only the logistics network,” adds Alivia. “We are reviewing every single facility and product to make sure we service the customer from where it makes the most sense; we’re looking at cost of w w w.c so ma ga z i n e. com
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When atoms come together, forming stronger cable insulations and jackets, we beneďŹ t from the energy that connects us.
Advancing a world of possibilities.
lyondellbasell.com
“ WE ARE GOING STATE-OF THE-ART WITH THE LATEST VERSION OF SAP, WHICH IS IOT (INTERNET OF THINGS) READY. THIS WILL ALLOW US TO BUILD ONTO IT AND LOOK AT THE POTENTIAL FOR PREDICTIVE ANALYTICS, MACHINE LEARNING AND AI” — Brian Schulties, CPO NA, Prysmian Group
production and factory efficiencies, but also the cost of delivery.” Beyond the strategic change triggered by the merger, Alivia notes how Prysmian is always open to dynamic change in the quest for greater efficiencies through the implementation of new technologies. “We’ve run idea pilots with augmented reality in our factories and trialed smart devices, such as sensors, both in our production lines and out in the field.” The group is keen to implement machine learning to help with its logistics network, though Alivia
E XE CU T I VE PRO FI LE
Gianmichele Alivia Alivia started his career at Pirelli in Milan with the corporate supply chain team. Since 2006, he has moved back and forth between Italy and the US working mostly on supply chain and managing the company’s B2B website. Alivia spent time at the former US headquarters in South Carolina during the merger with General Cable. At the time, he was in charge of the regional supply chain of Legacy Prysmian, North America, and then, after the acquisition of General Cable, Alivia moved to current headquarters located in Highland Heights, KY and took a role in the new organisation where he is working on the synergies project following the merger between General Cable and Prysmian Group.
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PRYSMIAN GROUP
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CARING for our people and communities ACTING responsibly for the planet BUILDING a better future together Learn more at cabotcorp.com/sustainability ©2019 Cabot Corporation
A leading manufacturer of protective materials for high reliability applications since 1946.
Tapes, laminates, sealants and coatings
Wire and Cable tapes and moisture block compounds
www.chasecorp.com AUGUST 2019
Electronic and Industrial coatings
Anti-corrosion coatings for Infrastructure
We make a material difference
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concedes the cable industry is quite conservative and only implements technology when it can serve a proven purpose. “One of the most interesting things we’re doing is putting tracking devices on our cable drums to be able to monitor where they are at all times and ensure there is a faster turnaround of these assets once the cable on the drums has been used,” he reveals. Meanwhile, Schulties believes there’s potential to harness AI capabilities to reduce the need for remedial tasks.
“ EXPECTATIONS SINCE THE MERGER ARE HIGH, AND WE ONLY HAVE TWO YEARS FROM START-TOFINISH TO WORK ON THE SYNERGIES – BEYOND THAT IT BECOMES THE NORMAL COURSE OF BUSINESS” — Brian Schulties, CPO NA, Prysmian Group
Almost a year on from the acquisition, Prysmian Group is preparing the
87
significant step of merging its ERP systems. “It will generate efficiencies
E XE CU T I VE PRO FI LE
Brian Schulties Brian Schulties is the head of Purchasing for Prysmian Group North America. Schulties has more than 30 years of experience in the procurement field in the automotive, foundry and wire and cable markets. Prior to joining the company, he was the vice president of sourcing for General Cable. Brian holds a bachelor’s degree in business administration from Cleary University and has a lifetime C.P.M. certification.
w w w.c so ma ga z i n e. com
PRYSMIAN GROUP
with everyone operating the same way on a shared system; obstacles will be removed giving us a better foundation to build for the future,” confirms Alivia. “We are going state-of-the-art with the latest version of SAP, which is IoT (Internet of Things) ready. This will allow us to build onto it and look at the potential for predictive analytics, machine learning and AI.” Beyond the challenges of the merger, innovation remains a high priority for Prysmian with 25 R&D centers across the globe and a 88
commitment to patenting new cable designs. Schulties is keen to act on the voice of the customer and see the company leveraging its supply base, as far as its technology and ability to provide innovation with delivery to market. On that quest, Prysmian works with 3PL, transportation and supplier partners. “We’re in discussion with companies like UPS,” says Alivia. “How do we create more than just a supplier/customer relationship? How do we form a strategic partnership with the extended supply chain team to come up with solutions? We’re having whiteboard discussions to find ways of solving shared problems AUGUST 2019
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PRYSMIAN GROUP
M A R KS THE SP OT Raw Materials, All Over Again Since 1918 At PMR our mission is to reintroduce useful raw materials for the metals and plastics industries, reduce the scrap generator’s waste stream and play a major role in the greening of our environment.
Headquarters 99 East River Drive, East Hartford, CT 06108 • 860 622-7626 Offices & Plants: East Hartford, CT • Orangeburg, SC • Canastota, NY • Miami, FL Willimantic, CT • South Windsor, CT • Wilmington, DE • Hickory, NC AUGUST 2019
across the entire infrastructure of our organization.” Focusing on shared sustainability goals is also key for a company
€11.bn Approximate revenue
ranked third in its sector by the 2018 Dow Jones Sustainability Index (DJSI). Prysmian is working with procurement to identify ways it can increase the percentage of return of recycled plastic and wood from pallets. Meanwhile, it is engaging with freight providers who invest in new trucks to improve mileage efficiency and reduce emissions. “We’ve also joined
1879
Year founded
29,000
Approximate number of employees 91
CLICK TO WATCH : ‘PRYSMIAN GROUP SHOWS ITS ADVANCED VESSELS FLEET’
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PRYSMIAN GROUP
92 S U S TA I N A B I L I T Y
Prysmian third in the Dow Jones Sustainability Index Prysmian works with its partners
sustainability issues; adopting
for a common goal: achieving
inclusion and diversity policies;
sustainability now and for the
implementing a Code of Business
future. It has improved its
Conduct designed to disseminate
ranking due to numerous actions
responsible business practices
completed in the environmental,
along the supply chain; reducing
social and governance fields.
emissions of ozone-depleting
These include, amongst other
substances; extending the KPIs
things: vesting the Board of
adopted in its own Sustainability
Directors’ Compensation and
Report, drawn up according to
Nomination Committee with
the G4 guidelines of the Global
tasks such as: overseeing
Reporting Initiative.
AUGUST 2019
93 the SmartWay,” adds Alivia. “It’s an
tion. The fact that we’ve just made a
EPA (Environmental Protection
big purchase doesn’t mean we’re not
Agency) program whereby companies
analyzing the next potential acquisi-
work collectively to reduce emissions
tion two or three years from now.”
and improve efficiency.” SmartWay
The strategy is set: making links in
offers an integrated set of no-cost,
the chain is building a bright future
peer-reviewed sustainability account-
for Prysmian and its customers.
ing and tracking tools to help companies make informed freight transportation choices across their supply chain. Looking ahead, Prysmian’s strategy is to be “consolidators of the market,” says Alivia. “We want to squeeze efficiencies out of the companies we acquire, generate cash, pay the debt and get ready for the future acquisiw w w.c so ma ga z i n e. com
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Creating value and sustainability through technology in the Armacell supply chain WRITTEN BY
HARRY MENEAR PRODUCED BY
DENITRA PRICE
AUGUST 2019
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ARMACELL
Amber Jesic, General Manager, Supply Chain, Americas at Armacell discusses using technology to pursue best sustainable practice in the company’s supply chain
T
he global perception of the supply chain has undergone a revolution over the past decade. What was once a series of
independent nodes in a scattered network of buyers and suppliers conducting transactional 96
deals has transformed into something far more delicate, complex and effective. “Organisations are becoming more sophisticated in the supply chain space. As they become better at supply chain and inventory management, they’re becoming more aware of the opportunities associated with the supply chain becoming more interdependent and approached from an end-to-end perspective,” says Amber Jesic, General Manager, Supply Chain, Americas at Armacell. “The increasing availability of real-time reporting and visibility, as well as increasing customer expectations, has certainly caused supply chains to evolve in recent years.” As the global supply chain industry changes, this newfound maturity opens up avenues for companies to fulfil ambitions and live up to core values in new ways. AUGUST 2019
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Production lines in Mebane, NC
Armacell manufactures structural PET panels in Brampton, Ontario, Canada.
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As a global leader in the insulation market, Armacell’s products are vital to making projects in the construction and manufacturing space more energyefficient, and therefore sustainable. For Jesic, her role at Armacell was the perfect fit. “Sustainability is not only personally important to me, but it’s also the basis of how Armacell operates,” she says. “The company has a culture of global collaboration and innovation that was appealing and they’re also open to change. I saw the role as a chance to make contributions 98
to the organisation, and an opportunity
“ Sustainability is not only personally important to me, but also the basis of how Armacell operates” — Amber Jesic, General Manager, Supply Chain, Americas, Armacell
Elastomeric foam sheets and rolls are stored before shipping out of Armacell’s component foam plant in Conover, NC
AUGUST 2019
CLICK TO WATCH : ‘MAKING A DIFFERENCE AROUND THE WORLD’ 99 to leverage our holistic network and
officially incorporated in 2000, its
supply chain to drive competitive
origins can be traced back to the
advantage and drive efficiencies.
1860s and Armstrong World Industries.
A lot of our products drive sustain-
In 1954, Armstrong was responsible
ability. Our ArmaFlex closed cell foam
for the invention of ArmaFlex, the
insulation saves 140 times more
world’s first flexible insulation product,
energy over the course of its life than
carving out its own industry niche
needed to manufacture and transport
that it has dominated ever since.
it.” We spoke to Jesic about the
In addition to making flexible products,
ways in which Armacell is harnessing
Armacell is committed to ensuring that,
cutting-edge technology in order
as a company, it stands by its principles
to drive supply chain innovation, not
of sustainability. “As a multi-materials
only to create value, but make the
and multi-product company, we
company more sustainable.
apply world-class practices every day
Although Armacell itself was
and expand into adjacent technical w w w.c so ma ga z i n e. com
ARMACELL
“ Technology provides an opportunity to simultaneously reduce costs and improve service” — Amber Jesic, General Manager, Supply Chain, Americas, Armacell
100
insulation end markets, continuously
sustainable technology and strategies
extending our temperature range
across Armacell’s supply chain, from
and equipment verticals,” Jesic says.
converting the company’s shipping
“We substitute the legacy materials
lines to an intermodal approach and
of our competition with our innovative
reducing miles travelled, to recycling
solutions and reinforce our premium
over one billion plastic bottles into
brand position to create value for
polyethylene terephthalate (PET)
equipment owners, specifier engineers,
products. “Beyond the benefits we
contractors and investors.”
seek to realise through technology,
Jesic’s role provides a broad mandate
we also are committed to best practices
and list of responsibilities, as she
that impact the environment. To reduce
oversees purchasing, planning, distribu-
waste, we have cases where we also
tion, transportation and compliance.
donate our scrap to prevent it from
She and her team are working to deploy
going into landfills,” says Jesic. “It can
AUGUST 2019
be used in the carpet industry as a padded base for installations, sometimes it’s used for the foam padding in children’s playgrounds – the breadth of application is mindboggling sometimes, given all the different areas you can use foam.” The core of the company’s innovations and sustainability initiatives involve applying technology to create value in a sustainable way. “Technology provides an opportunity to simultaneously reduce costs and improve service. We’re driving automation
E XE CU T I VE PRO FI LE
Amber Jesic, General Manager Amber Jesic is the General Manager of Supply Chain, Americas, at Armacell. Jesic’sinnovative and analytical approaches have redefined and optimised the value of supply chains within select Fortune 500 companies. A key strategist with an award-winning career in supply chain management, she has proven that with ingenuity, solutions to complex issues can be developed. She is a thought leader, having led an autonomous truck program as featured in the New York Times. Amber holds a Six Sigma Black Belt and an MBA from NYU Stern School of Business.
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ARMACELL
$686mn Approximate revenue
2000
Year founded
3,000
Approximate number of employees 102
AUGUST 2019
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Armacell makes foam for gaskets for use in the transportation industry
CONTRIBUTING TO THE EARTH’S FUTURE WORKING HAND IN HAND WITH OUR CUSTOMERS
Congratulations Armacell on your fine article!
THE WORLD’S LARGEST PVC PRODUCER & RIGID VINYL COMPOUNDER Resin Sales – Domestic & Export 713 965 0713
K-Bin KBcustomerservice@k-Bin.com
“ Beyond the benefits we seek to realise through technology, we also are committed to best practices that impact the environment” — Amber Jesic, General Manager, Supply Chain, Americas, Armacell
wherever possible and easing the process of doing business with Armacell, predominantly through EDI integration, but also through our digitalization efforts regarding load planning and shipment consolidation to reduce miles travelled and condense shipments,” Jesic explains. As a company that has never been afraid to carve its own way using the latest technological developments on offer, Jesic points out that Armacell is watching the development and testing
PA R T N E R FA C T S
Shintech The modern supply chain is becoming more collaborative and interconnected. As Jesic notes, “multifaceted partnerships are much more common. We work with our suppliers to develop mutually beneficial plans for the management, inventory management as well as delivery.” Founded in 1974, Shintech has grown to become a leader in its field in much the same way as Armacell. It is currently the largest producer of PVC in the US and has been partnered with Armacell for more than five years. “Their consistent service has been an asset to our business,” says Jesic.
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ARMACELL
drive sustainability benefits,” she says. “Autonomous trucks will let you better handle fuel usage, there’s less starting and stopping, you can have a bigger fuel tank without a driver, and of course an autonomous truck will be able to provide much more accurate track and trace capabilities.” Gathering data from a fleet of autonomous trucks may be years away for Armacell, but Jesic stresses how vital data from other sources has become for the company today, and 106
the importance of having the analytics to draw actionable insights. “We’re in the design and development phase of using forecasting tools that will provide predictive analytics which will be used in our production planning and inventory management to better service our customers,” she explains. As the leader in the $13.5bn equipment insulation market, Armacell is constantly striving to pursue its multi-pillar growth strategy. Its dedicated R&D teams are continually driving the company’s portfolio growth of intellectual property, having more than doubled the number of patents in the company’s name over the past five AUGUST 2019
years. Looking to the future, Jesic is excited to continue bringing Armacell’s open, innovative approach to the workings of its supply chain and management of her team. “I encourage a culture of openness to change and present things in a perspective that highlights the benefits of why that change is being introduced. So, in the instance of digitalisation, if it improves the ease of doing business with Armacell, our suppliers and customers then I’ll emphasise those benefits to the teams so they understand why we’re pursuing these changes. Also, benefits like automated reporting help keep our focus on best, not budget,” she concludes. Armacell’s future is bright, as it continues to work towards creating not only value, but a bright future for the planet too.
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SIMON FRASER UNIVERSITY AN ENGAGED UNIVERSITY
AUGUST 2019
WRITTEN BY
JOHN O’HANLON
PRODUCED BY
CRAIG KILLINGBACK 109
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SIMON FRASER UNIVERSITY
SIMON FRASER UNIVERSITY’S SUSTAINABILITY OFFICE IS A FOCUS OF ACTION AT THE INTERSECTION OF PLANETARY REGENERATION, HUMAN HEALTH AND SOCIAL JUSTICE
O
ne can’t help thinking that the sustainability team at Simon Fraser University (SFU) have some of the best jobs in the
world. Most of the world’s young people, at least, are now swinging behind the awareness that we 110
are living during a time of climate crisis and that time is running out to change our behaviour if we are to avoid or mitigate the consequences of biodiversity loss, pollution, and climate change. That awareness is not unique to SFU, of course, but few higher education institutions have embraced sustainability principles so intelligently or realistically. The Province of British Columbia is committed to reducing greenhouse gas emissions to 80% below 2007 levels by 2050 and, in 2011, its capital Vancouver, home to SFU, set the goal of becoming the greenest city in the world by 2020. SFU is a partner in these broader goals. The University itself has adopted sustainability as one of its six core values, which means it is embedded in the fabric of the institution and the day-to-day decisions taken by every department. AUGUST 2019
The green wall by SFU’s Saywell Hall
The University is also in the process of developing a 5-year climate action plan to address the most urgent sustainability issue of our time. SFU recognise that its institutional responsibility extends beyond its boundaries to include the social, economic and ecological sustainability of its campuses and the communities in which they operate. Therefore, these plans are being developed with the recognition that sustainability work broadly, and climate action specifically, cannot be done without w w w.c so ma ga z i n e. com
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SIMON FRASER UNIVERSITY
“ THE MOMENT YOU STEP ON CAMPUS AS A NEW COMMUNITY MEMBER YOU GET INTRODUCED TO THE CONCEPT OF SUSTAINABILITY AS A CORE VALUE” 112
— Candace Le Roy, Director of Sustainability, Simon Fraser University
addressing social inequities, racism, reconciliation and partnership with local Indigenous nations. To implement SFU’s sustainability values, eight very committed professionals are led by Director of Sustainability Candace Le Roy – they provide planning, consultancy, and support services to SFU community members to help them develop, scale, or promote their sustainability work and lead sustainability projects across the university. It’s by no means an act of enacting top-down policies, she hastens to say. “We recently finalised our 20-year Sustainability Vision, which identifies 20 strategic goals following a year-long community engagement progress involving all University stakeholder groups: thousands of people took part from students up to the Board. Everything we do in the Sustainability Office is in collaboration and partnership with the faculty, staff, students, and communities we are embedded in. Sustainability at SFU is a shared responsibility and a joint effort. Our office merely facilitates this joint effort so that it is coordinated, connected, and inclusive.”
AUGUST 2019
CLICK TO WATCH : ‘SFU OPENS NEW SUSTAINABLE BUILDING’ 113
PARTNERS IN ENGAGEMENT
awareness to what SFU is doing,
It’s this level of commitment, she
listen to their ideas, and help remove
observes, that makes the job so
barriers to their contributions in
rewarding. Every new student and
practice. At SFU, students aren’t seen
member of staff receives sustainability
as ‘end-users’ to be trained and
education through orientation: “The
delivered, but as partners in learning,
moment you step on campus as a new
discovery and community engagement.
community member you get intro-
The tripartite social, economic and
duced to the concept of sustainability
ecological view of sustainability is
as a core value. We want them to see
something that all alumni have an
how each individual can contribute in
opportunity to take with them into the
their area.” However she acknowledges
world beyond. To ensure that the work
that most people come in with a high
at SFU is connected with global goals
level of awareness these days – all the
the 20-Year vision and the emerging
team needs to do is connect this
5-year plan have been developed in w w w.c so ma ga z i n e. com
SIMON FRASER UNIVERSITY
alignment with the UN’s Sustainable
alternative to the diesel-fuelled bus
Development Goals.
service. This project has been finally
Engagement with major British Columbia institutions is key to SFU.
council, and would speed up travel
For example, the Pacific Water
times and cut emission levels.
Research Centre (PWRC) recently
114
approved in principle by Burnaby city
Another promising project is the
hosted a seminar on Vancouver’s Rain
development of the Corix biomass
City Strategy to embrace rainwater as
district energy system on the Burnaby
a valuable resource and to conserve
Mountain campus which will reduce
90% of its annual rainfall. The
the campus greenhouse gas emis-
University also aims to support major
sions by 60%-80%. This — along with
shifts in behaviour such as its advocacy
the University’s achievement of
for a funicular (gondola) to connect
reducing the carbon footprint of the
its University campus on the top
University’s investment portfolio by
of Burnaby Mountain, providing an
50% below the baseline measurement
SFU’s Academic Quadrangle
AUGUST 2019
reported as of 31 March 2016 —
Sustainable Offices adopt practices
demonstrates how the university is
that improve their environmental,
committed to working with on and off
economic and social performance.
campus partners to make big shifts in
They receive a toolkit, support and
the way they operate as an institution.
resources and that encourages others
A major project underway encour-
to participate.” This certification
ages ‘sustainable spaces’ across the
program has now been extended into
university’s facilities which integrates
events, vendors, and soon into labs.
sustainability principles into the
Large events such as the President’s
day-to-day actions of staff members.
annual staff appreciation BBQ are
Becoming a Certified Sustainable
certified sustainable events further
Office is a great way to encourage
demonstrating that all levels of
staff collaboration on sustainability
the University are contributing to
and to create a more robust, engaged
these efforts.
workplace, says Blok. “Certified
The bottom line, says Manager of
E XE CU T I VE PRO FI LE
Candace Le Roy, Director of Sustainability Guiding the institution-wide approach to sustainability leadership, Le Roy consults on risks and opportunities to integrate sustainability into the University’s core business. Over her 16 years at SFU, Candace has been dedicated to facilitating university-wide efforts to innovate and contribute meaningfully and measurably to the shift toward a regenerative, circular, and equitable society and economy. Candace works collaboratively with partners both within and outside the university to identify, develop and deliver major cross-portfolio projects that contribute to this work.
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SIMON FRASER UNIVERSITY
116 Campus Sustainability, Kayla Blok,
When our students graduate are they
is that sustainability should be
leaving with a holistic understanding
integrated into all projects, research
of sustainability? These are the type of
and teaching. It is also central to
questions we are asking.”
procurement, with all contracts and purchases over $100,000 required
THE ROAD TO ZERO WASTE
to be considered from a sustainability
It is never going to be possible to
point of view. “Whenever we go out
recycle 100% of waste, but by
to tender we have questions and
adopting ‘circular economy’ practices
requirements for suppliers, and
SFU is heading towards a goal of 10%
I support multiple request for proposal
waste minimisation and 90% diversion
(RFP) committees by advising on how
from landfill. SFU started its zero
that should be done. When we under-
waste journey in 2012 at a time when it
take a project, are our staff seeing their
had only a two-stream waste diversion
work through a sustainability lens?
system and most items were being
AUGUST 2019
sent to the landfill. Within 18 months, the initiative was diverting more than 70% of SFU’s landfill waste and had introduced circular economy principles to look at purchasing, and require suppliers to work towards recyclable and compostable packaging. Today, across the campus, there are four-stream waste stations allowing for food and compostables, paper and cardboard, recyclables and landfill garbage. It’s not hard to get buy-in these days, with the media full of reminders about things like plastic pollution and extinction rates, but people still need to be helped to
understand the circular economy – “ WHEN OUR that is where the Sustainability Office STUDENTS steps in to educate and encourage, GRADUATE ARE affirms Kayla Blok. The team, in conjunction with a large stakeholder THEY LEAVING group that includes departments WITH A HOLISTIC across the university, is currently set to UNDERSTANDING launch an initiative to eliminate singleOF SUSTAINABILITY?” use plastics and products from all three
— Kayla Blok, Manager of Campus Sustainability, Simon Fraser University
campuses, making them the first university in Canada to act on this issue. Research, business expertise, software engineering and the spur of environmental perils have come together in an exciting project that w w w.c so ma ga z i n e. com
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Responsible Investing for a sustainable future.
BMO Global Asset Management is a brand name that comprises BMO Asset Management Inc., BMO Investments Inc., BMO Asse constitute a solicitation of an offer to buy, or an offer to sell securities nor should the information be relied upon as investment registered trademark of Bank of Montreal, used under licence.
Invest. Avoid. Improve. As a founding signatory to the United Nations Principles for Responsible Investment (UNPRI), BMO Global Asset Management is boldly committed to solving our clients’ sustainability challenges with the prudent management of environmental, social and corporate governance (ESG) issues integrated into our overall investment philosophy: Invest in companies that demonstrate responsible business. Avoid companies with activities that harm society or the environment. Improve companies’ management of their ESG issues through engagement and voting. For over 35 years, this approach to responsible investment has driven long-term value by aligning our clients’ financial goals with their ethical values.
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et Management Corp. and BMO’s specialized investment management firms. The information provided herein does not advice. Past performance is no guarantee of future results. All Rights Reserved. ®”BMO (M-bar roundel symbol)” is a
SIMON FRASER UNIVERSITY
promises to contribute a great deal to achieving zero waste. And each of these facets has come out of SFU. The founders of Intuitive AI Hassan Murad and Vivek Vyas are both alumni of SFU, where they first developed software to tackle the problem of recycling. SFU itself may have made great strides but globally only around 3% of waste is recycled. Even in a four-stream system, waste identification remains a problem – what is recyclable, what is not, where should you put it? They began with a simple vision, 120
to create a zero waste world. This led
Erica Lay, Associate Director at SFU’s Sustainability Office presenting at a 20-year sustainability visions and goals session.
them to develop an AI platform driven by sensors that empower spaces to be more sustainable. Murad and Vyas launched Oscar,
consultations providing key facts, giving operational and logistical
an AI-powered visual sorting system,
feedback, and providing expertise.
with a camera that detects people
The testing phase was carried out on
approaching a bin, automatically
our downtown Vancouver campus and
identifies each item and tells people
we were successful in providing space
where to place it. “This is a true
for them to test the platform and
innovation story from SFU,” explains
promote their message.” The Surrey
Blok. “They spent a great deal of time
campus now houses the first higher
formulating this idea at our labs on
education Oscar waste station in
the Surrey campus. We were able
Canada and have been taken up
to support this project right from
at coffee chains and an airport in
the ideation phase, and the Sustain-
Toronto. Intuitive is currently part
ability Office was there at the initial
of the Next AI accelerator in Toronto
AUGUST 2019
and the VentureLabs business accelerator at Simon Fraser University. Oscar is as much about data as it is about making life easier for the consumer of a cup of coffee. The software can identify brands, patterns of consumption by area and demographic information all of value to the airport, shopping mall or university where it is located – garbage in, valuable data out. It’s by leveraging this data that Intuitive AI will monetise its software in the future. “Perhaps the most promising part of the technology is that it provides robust data,” says
E XE CU T I VE PRO FI LE
Kayla Blok, Manager of Campus Sustainability Overseeing the Campus Sustainability portfolio, Blok liaises with operational functions across all three campuses to implement and scale sustainable decisions and practices. Her work ensures that the University operates in alignmen with its sustainability plans, visions, and goals. Blok offers consulting services for all SFU Community members and works closely with internal and external partners on signature projects and initiatives.
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SIMON FRASER UNIVERSITY
Kayla Blok. “We look forward to seeing how we can apply this data to influence design, planning, and purchasing decisions, for example. Our hope is that it will help our operational as well as sustainability goals by creating targets to improve waste management at the campus.”
AWARENESS AND PERCEPTION Oscar has attracted a lot of media attention thanks to its visibility. “This is a really good example of the kind of thing that happens at SFU due to 122
our culture of, and commitment to, innovation, community engagement, and student empowerment,” says Candace Le Roy. “Our students get to work on projects that they take out into the wider world and the benefit comes back to the institution through new projects and initiatives and the application of technology. In the 16 years I have been at SFU, I have seen the students always at the forefront of major initiatives at SFU and then they carry this leadership to the communities and organisations they serve when they leave.” Even with the impetus provided by the rapidly increasing media coverage of AUGUST 2019
the climate crisis, getting sustainability thinking embedded in a large, transient and diverse university population is not a simple feat. It might seem like a no-brainer to ban plastic bottles, but many overseas students come from cultures where bottled water is the only safe water. “We constantly have to customise our communication tactics and infuse them with humanity,” she says. “On the one hand, we have to keep up with innovations in industry, research, politics and international targets and do things like ban single use plastics and dramatically reduce our greenhouse gas emissions and on the other hand we also have to bring people along with us on this journey. We need to help people understand how their consumption decisions affect the planet and people, but we can only do this if we make an effort to understand them not has consumers, but as people who have unique backgrounds, experiences, and perspectives. Sustainability efforts have been rightly criticised for being led primarily by rich white people who come from a particular (mostly
SFU’s Morris J. Wosk Centre for Dialogue
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SIMON FRASER UNIVERSITY
to design solutions from all perspectives and with all people in mind.” Justifiably proud of the nuanced and holistic way in which the organisation has taken the lead on advancing sustainability best practice, Candace Le Roy, her team, and their colleagues at SFU work tirelessly to gain the support of all stakeholders. “Getting a major initiative off the ground at a university is usually the first and biggest hurdle because we value the engagement of all relevant stakeholders and engagement takes time. But the 124
effort put in is well worth the quality that is the result,” she says. She points
SFU’s Asia Pacific Hall in the Morris J. Wosk Centre for Dialogue
to the cross departmental teams that have been formed to work on initiatives like the BC Cool Campus challenge, spearheaded by SFU but spread across British Columbia, to reduce energy consumption by simple actions and the Fair Trade and Changemaker Campus designations SFU has achieved. In the end, all of this is about changing the way we see the world and our place in it. Virtually every decision we make has an impact on people and the planet, good or bad, she concludes. “At the end of the day AUGUST 2019
“ SUSTAINABILITY GIVES UNIVERSITIES AND COLLEGES A COMPETITIVE ADVANTAGE AND MAKES US MORE RESILIENT TO INTERNAL AND EXTERNAL THREATS” — Candace Le Roy, Director of Sustainability, Simon Fraser University
125
it’s not about recycling or using less
political and ecological climate.
energy. Sustainability work is about
Addressing sustainability challenges,
understanding how to make better
like the climate crisis, gives universities
decisions based on a strong under-
and colleges a competitive advantage
standing that humans are a part of
by making us more relevant to our
nature not outside of it. We need to
communities and more resilient to
learn from, respect, and apply
internal and external threats.�
Indigenous ways of knowing and leave no one behind. This means constantly being aware of the interconnections between ecology, politics, economics, and social inequities. It’s planning to ensure we survive on this planet and our institutions survive in the current w w w.c so ma ga z i n e. com
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THE CITY OF BRAMPTON: MANAGING ENERGY AND EMISSIONS FOR SUSTAINABLE OUTCOMES
WRITTEN BY
WILLIAM SMITH PRODUCED BY
CRAIG KILLINGBACK
AUGUST 2019
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CITY OF BRAMPTON
CHUN LIANG, SUPERVISOR OF ENERGY MANAGEMENT AT THE CITY OF BRAMPTON, ONTARIO, DISCUSSES THE ROLE SUSTAINABLE ENERGY HAS TO PLAY IN MEETING EMISSIONS TARGETS
C
limate change matters pertaining to emissions and sustainable sources of energy are high in the public conscious-
ness. Energy generation measures such as solar 128
panels and wind turbines serve as symbols of energy that are more sustainable because they reduce emissions at large, with an emissions strategy often functioning as the vanguard for sustainable outcomes. Chun Liang is Energy Management Supervisor at the City of Brampton, Ontario, and is responsible for the energy and emissions strategy of City owned buildings. He credits the urgency of global warming as inspiring his entry into the field. “Right before I got into energy performance contracting, the Kyoto Protocol came into effect and said two things: global warming is happening and human activity is contributing to it. Warming is related to emissions which are generated by the energy that we use, especially the burning of fossil fuels, so I thought to myself, ‘this is a great time to get into energy AUGUST 2019
Photos courtesy of the City of Brampton
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CITY OF BRAMPTON
performance contracting – the world is moving on this, and I can join the movement to help the planet and recover energy costs’.” In his current role, Liang has used his energy background to help rectify some of the challenges Brampton faces. This includes a large portfolio of older buildings that have a number of energy performance issues including building envelope and building automation systems. Some have outdated automation systems so Liang initiated a technology
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“ TOO OFTEN WE WORK IN SILOS WHEN WE COULD BE SHARING KNOWLEDGE AND LESSONS LEARNED” — Chun Liang, Supervisor, Energy Management, City of Brampton
AUGUST 2019
CLICK TO WATCH : ‘UNLOCKING DOWNTOWN BRAMPTON’S POTENTIAL: CONCEPTUAL VIDEO’ 131 investigation including discussions
has brought his experience to bear on
regarding a unified display portal
properties in Brampton, and one of
(single pane of glass view) with key
the major potential energy efficiency
stakeholders to determine the best
improvements comes from heating.
solution for the City of Brampton.
“When you look at the energy and
“The hope with a unified display is that
emissions pie chart of a building,
building operators will have an easier
especially in an Ontario, Canada
time managing the control of many
context, much of it is from heating
different buildings, improve energy
since we’re burning fossil fuels for
performance and increase occupant
eight months a year. That is a major
comfort.” With an energy performance
consideration for us because it
and modelling background to ensure
applies to both of our objectives: to
buildings meet targets, including
reduce energy use while also reduc-
energy performance targets under
ing our emissions. The focus for the
the LEED building rating system, Liang
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Zero Carbon Transition Plan – is
new structures are built to high
finding ways to reduce natural gas
performance standards. “The City
use in the City’s existing buildings.
of Brampton is designing, building
A recent successful project done
and renovating many new community
by the energy management team
centers, fire stations, etc. due to
was the installation of heat recovery
population growth. The energy
system. “This system recovers heat
management group works closely
from swimming pool drain water at
with our building design and construction
one of the City’s community centres,”
division, collaborating with them,
says Liang.
to integrate energy design into the
While effective measures can be
buildings.” To achieve the energy
taken to improve the energy perfor-
targets required, Liang and his team
mance of existing buildings, future
have introduced parametric energy
gains can be achieved by ensuring
modeling that uses cloud computing
AUGUST 2019
as one of the central tools. “The benefit of energy modeling on the cloud is that it can quickly simulate interactive effects, thereby drastically reducing the amount of time it takes to produce options that not only provide optimal energy performance but can also illustrate paths for emissions and operating cost reductions. If we change lights to LED or we use more daylighting, what effect does that have on the heating? Strategic use of daylight for a building can also be a passive form of heating which can help to reduce emissions associated
E XE CU T I VE PRO FI LE
Chun Liang, Supervisor, Energy Management Chun Liang is an energy management professional with over 20 years of experience in the building industry, including HVAC design and construction, energy performance contracting, building energy modelling and LEED consulting. He is currently the Supervisor of Energy Management at the City of Brampton responsible for strategic planning, project delivery, energy procurement, utility management, third party funding and reporting.
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CITY OF BRAMPTON
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AUGUST 2019
“ I T’S NOT JUST ABOUT ENERGY EFFECTS, BUT ALSO OCCUPANT COMFORT” — Chun Liang, Supervisor, Energy Management, City of Brampton
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“ W E’RE IN A RACE AGAINST TIME TO HIT THE PROVINCIAL AND FEDERAL EMISSION REDUCTION TARGET, WHICH IS BASED ON THE PARIS AGREEMENT, SO WE NEED TO TRANSITION TO ZERO CARBON AS SOON AS WE CAN” — Chun Liang, Supervisor, Energy Management, City of Brampton
and the federal government has set an 80% reduction target by 2050, which is in line with the Paris Agreement to limit the global temperature rise to 1.5 degrees Celsius by 2050. Our Zero Carbon Transition Plan is predicated around these targets. We’re looking at reducing our energy use for new and existing buildings by 30% by 2030. We’re targeting various measures: heating, ventilation, air conditioning systems and building envelope. We’re going to use heat recovery: recycling waste heat wherever possible. Once you get the energy demands of the building down, then the next step is to look at renewable technology. That’s the most efficient
with heating.” Aside from utilising
way to approach it. It’s energy
sustainable energy, such measures
management 101.” Other innovations
have the knock-on effect of improving
geared towards meeting the city’s
the experience of citizens, as with the
targets include innovations in passive
natural light provided by daylighting.
heating. “The SolarWall is a matte
“These are the types of things that we
black surface that can be put on top of
also look at. It’s not just about energy
a building’s exterior wall, leaving an air
effects, but also occupant comfort.”
gap,” says Liang. “The sun hits this
Such measures are to play a vital
black surface, and transfers energy to
part in achieving the city’s ambitious
the wall and air gap. The air is heated
Zero Carbon Transition Plan. “The
in that gap and then brought into the
provincial government has set a target
building to preheat the air for ventilation.
of 30% emissions reductions by 2030,
“We expect to verify the energy savings w w w.c so ma ga z i n e. com
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for a system installed at a City of Brampton building as it has found success in other building applications.” The system may be able to reduce emissions associated with heating. Regarding the reduction of vehicle emissions, charging stations for electric cars have been installed at City owned buildings with a focus on public facing sites such as libraries and community centres. “We’re in a race against time to hit the provincial and federal emission 138
reduction target, which is based on the Paris Agreement, so we need to transition to zero carbon as soon as we can,” says Liang. It is obvious that Brampton is proactively contributing to this effort, setting targets and bringing in concrete measures to ensure their achievement. Nevertheless, sometimes advancements can bring their own drawbacks. “We have a number of solar photovoltaic installations that generate electricity for us, and they provide a steady stream of revenue, as well as reducing our electricity use. The challenge is the cost of electricity. If we switch over to electricity to heat our buildings, electricity costs AUGUST 2019
significantly more than natural gas per equivalent energy unit, so the question is, how do we bridge that gap? It’s kind of an open question.” One possible solution to this conundrum is an improvement in the way society works together. “I’m hoping to see more collaboration between municipalities, utilities, and the private sector. Too often we work in silos when we could be sharing knowledge and lessons learned. For example, a battery storage project can provide resiliency for a building and perhaps also provide part of its energy needs for heating and cooling. This approach provides great co-benefits, if the costs of off peak battery charging can be lowered further. That’s something I hope to see more of in the future. As we collaborate and collectively pool our resources, we accelerate the case for sustainability.”
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Achieving sustainable finance with Refinitiv WRITTEN BY
WILLIAM SMITH PRODUCED BY
CAITLYN COLE
AUGUST 2019
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REFINITIV
Refinitiv’s Head of Sustainability, Luke Manning, explains the centrality of the company’s sustainability strategy in inspiring its own practices and informing the products it offers customers
T
he role of finance in sustainability cannot be understated. When capital reaches sustainable enterprises and companies
are rewarded for sustainable behaviour through investment, it is the world that reaps the benefits. 142
Such decisions, however, can only be made in the presence of accurate, understandable information. Refinitiv is the leading provider of environmental, social and governance (ESG) data. Founded in 2018 out of Thomson Reuters’ Financial and Risk unit, the company has taken advantage of its rebirth to institute an ambitious sustainability strategy. At the same time, it is putting sustainability at the heart of its business model, offering customers the sustainability data they need to make the right decisions to drive positive and sustainable business outcomes. Luke Manning, Head of Sustainability and Strategic Initiatives, has worked for the company since the Thomson Reuters days and has overseen the positioning of sustainability at the core of the firm’s operations.
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“ Ensuring sustainability is at the heart of building our culture and our values is a privileged position to be in” — Luke Manning, Head of Sustainability and Strategic Initiatives w w w.c so ma ga z i n e. com
REFINITIV
“ Our tagline is ‘data is just the beginning’ and that couldn’t be truer for sustainability” — Luke Manning, Head of Sustainability and Strategic Initiatives
“We look at sustainability through two lenses,” says Manning. “The first is how we operate as a business ourselves, and how we measure our own impact. The second is how we drive sustainable behaviour beyond the boundaries of our own footprint.” Internally, Refinitiv seeks to hold itself to account across a broad range of factors, from efficient use of resources and recycling to community and charity support. “Activities that traditionally sat under a corporate responsibility banner now form part of our sustainability strategy,” explains
144
Manning. Not content with altering its own behaviour, however, Refinitiv looks outward with its concept of ‘Sustainable Leadership’. “We want to make sure we stand ourselves up as a responsible business – but what do we do as a business that also contributes to the greater good? That’s where AUGUST 2019
CLICK TO WATCH : ‘DATA IS JUST THE BEGINNING’ 145 our data, technology and expertise
energy in the same timeframe,
come in. We have positioned ourselves
and we’re going to reduce our own
at the heart of an ecosystem of change
carbon emissions by, on average,
makers, and use our data to empower
10% every year for the next five years.
investors to shift towards sustainable
We have to hold ourselves to account;
finance. If we can do that, it really starts
we have to put a marker in the ground
to unlock something that is meaningful
that says ‘that’s what we’re aiming
at scale.”
for and this is why we’re aiming for it’. If you don’t set targets, that’s when
TARGETS
things slip.” As part of its commitment
Internally, Refinitiv has instituted
to representing and supporting
specific, time-dependent targets.
the communities in which it operates,
“We’re going to be carbon neutral by
Refinitiv has also promised to double
2020,” says Manning. “We’re going
its community investment programme
to be 100% powered by renewable
engagement by 2020, as well as have w w w.c so ma ga z i n e. com
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146
40% of its senior leadership roles filled
ing schoolgirls in India,” he says.
by women.
“That’s where the real, true value
The organisation’s targets dovetail with the UN’s 17 Sustainable Development Goals (SDGs), but for Manning,
of measuring the impact of those SDGs comes through.” The spirit of using targets to drive
simple alignment is not enough. “We’re
performance extends to Refinitiv’s
trying to focus on the targets beneath
product offering. “It’s always healthy
the logos. There are 169 underlying
to benchmark performance; ESG
targets, and they are a lot harder to hit.”
is no different,” says Manning.
To achieve this, Refinitiv’s sustainability
“We have over 400 metrics that drive
team coordinates global, centralised
transparency and comparability in the
campaigns as well as local action via
market and that can only be a positive.”
volunteer teams. “It could be beach
Beyond holding companies to account,
cleaning in the Philippines, or mentor-
having an idea of competitors’ perfor-
AUGUST 2019
mance can have a clarifying effect.
On the contrary, some of the challenge
“If you know what you’re comparing
has simply been ensuring that enthusi-
against, you have a frame of reference,
asm translates into definitive action.
and it’s much easier to make a decision.
“There’s absolutely no shortage
What data does is drive clarity, and it’s
of buy-in and support from across
clarity that can drive decisions. If you
the business for the sustainability work
don’t have that data, all you’re really
– right the way through from the CEO
going on is an opinion,” he adds.
to the front line. Every day there are new ideas originating throughout the
CULTURE
business. It’s about how we bottle
Manning hasn’t encountered any lack
up that enthusiasm and keep up the
of appetite for sustainability at Refinitiv.
momentum.” Such is the prominence
E XE CU T I VE PRO FI LE
147
Luke Manning Manning leads the sustainability function for Refinitiv, as part of the global strategy leadership team – developing Refinitiv’s position as a sustainable and responsible business, addressing the effect of its operational and environmental footprint, and harnessing its expertise, technology and data to drive positive social change. Formerly a freelance journalist, Manning has subsequently specialised in developing and communicating core business strategies with tangible commercial, reputational and social impact. Prior to his current role, he worked with a number of global organisations in senior leadership and consulting positions, including Thomson Reuters, Balfour Beatty, Barclays Bank and Kier Group.
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“ We’ll make sure that when it comes to the provision of sustainability-related data and analytics, we’ll absolutely be best in class” — Luke Manning, Head of Sustainability and Strategic Initiatives AUGUST 2019
of sustainability at the company that it even plays a role in attracting talent. “It’s a given that sustainability is the right thing to do, and that’s what people are demanding now. At every point in the induction lifecycle when people decide to come and work here, these are the questions that come up increasingly frequently: ‘What do you stand for? What are your policies, your goals and your pledges when it comes to environmental and social initiatives?’” The community nature of sustainability at Refinitiv can in part be credited to its youth. “As a standalone business, we are still brand new,” says Manning. “We’re not even a year old yet. It’s really a privileged position to be in, to be able to make sure that sustainability is at the heart of building our culture and our values.” It’s clear that the opportunity has been comprehensively harnessed at Refinitiv, but in line with its dual concept of sustainability, Manning stresses the need for others to do the same, and the company provides the tools to achieve just that. “Collective action is our mantra for this. Data underpins the process and w w w.c so ma ga z i n e. com
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our tagline is ‘data is just the beginning’. We have a part to play, but we need to do it with everyone else – whether that’s other businesses, partners, competitors, governments or individuals – we all have to do it together to solve it. We’ll make sure that when it comes to the provision of data and analytics, we’ll absolutely be best in class.”
SUSTAINABLE FINANCE “Sustainable finance is shifting funding to investments that take more than just 150
financial considerations into account – investments which put a value on environmental, social and governance (ESG) factors” says Manning. Refinitiv offers the tools to make sustainable finance a reality for its customers across a range of ESG
$1.56Mn First quarter revenue ‘19
data and risk products. “If a customer is looking to invest in these sustainable initiatives, we provide the transparent data and analysis to allow comparability. This is fundamental in reorienting capital to sustainable investments.” The company’s ESG data must overcome some hurdles to achieve parity with its more conventional financial data. “Globally, there’s very AUGUST 2019
2018
Year founded
London Offices
inconsistent reporting on ESG data. When financial institutions come to weave these data points into their proprietary models, it’s still quite hard to do so unless you provide a degree of standardisation and harmonisation” says Manning. This is where Refinitiv’s work comes to the fore, ensuring that data is transparent, usable and relevant. The more ESG data is used, the more its prominence increases and the higher its quality becomes, as Manning explains: “Now, corporate, regulators, institutional investors and capital rating professionals are all becoming increasingly aware of the importance of ESG data. That’s driving up the standard as they’ll have to use it day in, day out to get positive financial outcomes.” Refinitiv is trusted not only to provide this information, but to present it in the manner required by its customers. “We’re the leading provider of ESG data. We cover 8,000 companies, represent 70% of the global market cap and have over 400 data points included. We also carry information on ESG bonds, loans, carbon and renewables pricing data and financial crime information. This all aggregates w w w.c so ma ga z i n e. com
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to provide a bigger picture,” Manning explains. “For example, we create a composite score consisting of environmental, social and governance pillars, and things like ESG controversies. We take that data, we make it valuable and useful, and then present it in such a way that it can be easily consumed at speed and at scale.” The global reach of Refinitiv’s data has seen the firm partner with organisations including the European Commission, the United Nations and the World Economic 152
Forum. With the latter, they have created the Sustainable Leadership Monitor, an analytics app which allows the measurement of the long—term sustainability progress of publicly listed companies, underpinning
and passion for sustainability, which
Refinitiv’s commitment to providing
itself is integral to the sustainable
the information necessary for collec-
finance products and services
tive leadership and decision making.
it provides. Such clarity of purpose
Ultimately, Refinitiv’s clear and
is vital when facing the rapidly evolving,
comprehensive strategy ensures
unpredictable challenges sustainability
the cause of sustainability is placed
presents. “From an environmental
at the very heart of its business model,
perspective, it’s clear that we have this
with the values it holds being translated
increasingly narrow window to address
into clear goals. These goals then help
the threat that we face,” says Manning.
to inform and create the culture
“Current models of consumption
of company-wide participation
and industrialisation are not going
AUGUST 2019
153
to support the exponentially growing
offers the opportunity to resolve
population. If you look at what busi-
that tension and drive outcomes
nesses face, particularly, there’s
that are positive in both a sustainable
a new paradigm that requires the
and business sense.
creation of long-term practices that respect the environment, the wellbeing of employees and the prospects of future generations, whilst still making money, improving profitability, funding innovation and achieving an increased market share.� Refinitiv’s implementation of sustainable finance w w w.c so ma ga z i n e. com
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IMPROVING AGRICULTURAL VALUECHAINS IN AFRICA AND BEYOND WRITTEN BY
DAN BRIGHTMORE PRODUCED BY
RICHARD DEANE
AUGUST 2019
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I M PA C TA G R I ( H O L D I N G S ) LT D
ImpactAgri is on a mission to bring together major companies, investors and stakeholders to create economically viable, socially inclusive, environmentally sustainable agribusinesses across Africa
M
ining companies are some of the biggest landowners and economic contributors in Africa. As such, they have a unique
opportunity, and responsibility, to develop economic 156
diversification strategies based on the sustainable use of land and water resources. Agriculture should be a core component of this strategy, where the needs of mining and agriculture in rural areas overlap in many ways and at all stages in the life of a mine. ImpactAgri is working with the mining industry in Africa, and increasingly elsewhere, to help mining companies contribute to and benefit from the economic, social and environmental impacts of sustainable agriculture. ImpactAgri’s work plays a key role in the development of responsible mining strategies for many companies. ImpactAgri Founder & CEO, Jon White, had 20 years of experience working in agriculture when he recognised the need to find a new way to improve logistics, access-to-market and financing for emerging agribusinesses in Africa. He believes AUGUST 2019
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“ If you can create high-value agri-processing that’s inclusive and maintains employment levels then those jobs can last forever” 158
— Jon White, Founder & CEO, ImpactAgri
AUGUST 2019
agriculture can be the catalyst to deliver socio-economic development while caring for nature. “The best way to create real jobs in Africa and reduce the impact on the environment is through well-designed farming systems done in a socially conscious way,” says White, who notes the challenge in breaking the cycle of ‘slash-and-burn’. “Much of the deforestation occurring is due to slash-andburn, where soils become poor after a few years of use, so they move to the next hectare, burn it down, plant,
159 stay there a year, then move to the
mining companies co-create sustain-
next hectare…”
able self-standing agribusinesses,
Sustainable and economically viable
driving a shift from subsistence
approaches to farming can create
farming towards revenue-generating
long-term agri-employment and
enterprises and greater employment.
environmental benefits, explains White.
Governments across Africa are
“A mine can be a great employer for
increasingly wanting to issue licences
20 years or more but when it closes
to mining companies capable of
there’s nothing,” he warns. “If you can
supporting the population around the
create high-value agri-processing
mine. “It’s OK replanting trees when
that’s inclusive and maintains employ-
you leave a mine site, but what happens
ment levels then those jobs can last
to the many people employed there
forever.” It’s the creation of a genuine
when it closes?” questions White,
long-term footprint that drives White
who argues that new mines, often in
and his team; the opportunity to help
environmentally sensitive areas, need w w w.c so ma ga z i n e. com
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AUGUST 2019
attractive alternative employment
taking advantage of and spurring on
opportunities to deal with the inevita-
the development of key infrastructure
ble migration of workers. “You can
vital for the life of an industrial project
actually create a hub of agriculture
and its local community. He advises
away from the mine to stop that drift,
that addressing key questions can
and people will go there rather than
help companies benefit from the
to the mine gate,” he reasons. “In
agriculture sector. “Can agriculture
sensitive areas, like Guinea and
provide sustainable jobs alongside this
Cameroon, to have a strategy that
industrial activity? Can it contribute
creates a hub away from the mine, but
to the social license to operate by
coherent with its situation and, to
building community relations? Can it
a degree, supported by the mine, is
provide solutions for post-mine
a positive thing to do for all concerned.”
planning that deliver more than trees
ImpactAgri’s other Founder and
and dry grassland with poor biodiver-
Director, David Hampton, is keen to see
sity? How can agricultural technolo-
agriculture projects working alongside
gies help rehabilitate land, stabilise
mining and other industries, both
tailing ponds and help remove heavy
E XE CU T I VE PRO FI LE
David Hampton David Hampton is a highly experienced strategy consultant, company director and entrepreneur. He has over 30 years of international experience and expertise in strategy consulting primarily providing advice to major global corporations in the energy, mining and agri-business industries on the strategic impact of sustainability and clean technology developments on their business.
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AUGUST 2019
“ You can’t simply buy into a project in Africa sitting in an office – you have to go out there and make it happen”
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— David Hampton, Founder & Director, ImpactAgri
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S E I G O O L N H C TE
W E N WITH
AFTER
AFTER
AFTER
E BEFOR
E BEFOR
E BEFOR
“ We believe you can take your CSR budget, and make it into a cash generator. Not a cost. That’s the advantage of working with ImpactAgri” — Jon White, Founder & CEO, ImpactAgri
metals? All the way through the value chain, there is a crossover between agriculture and the different stages mines and other industrial businesses pass through when utilising the land. The opportunities are there.” In Guinea, ImpactAgri is working with Anglo African Minerals to support development of their corridor and bauxite mine. White hopes the proposal will limit migration and create thousands of agriculture jobs. Working with Vedanta in Zambia, ImpactAgri is 165
E XE CU T I VE PRO FI LE
Jon White Jon White is an experienced CEO managing companies and operations in Africa, Europe and the US. For the last 15 years he has focused on agricultural and landscape solutions to increase yields, save labour, and reduce energy and water consumption whilst reducing runoff and pollution. White’s drive and initiative combined with his vast experience, network and energy in the field helps ensure ImpactAgri’s projects succeed. White’s corporate background includes senior management roles, in world class manufacturing operations at Pirelli in the production of Fibre Optic & Power Cables, and as VP EMEA of Netafim, the world’s leading precision irrigation company. He started his career in the mining industry with British Coal. White has an Honours Degree from the University of Leeds in Mechanical Engineering.
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I M PA C TA G R I ( H O L D I N G S ) LT D
developing a large-scale horticultural operation utilising the water that is already being extracted from the mine. The goal is for the agribusiness to employ more people than the mine itself within a few years and create a significant source of fruit and vegetables for the region. Longer term development will create high-value tree crops such as nuts and citrus for export. Elsewhere, ImpactAgri is working with other companies to identify the potential for agricultural 166
solutions to remediate land and add value to legacy assets. White explains that sustainable intensification on ex-mining sites can also be hugely positive: “In Zambia, ImpactAgri is working with local partners to plant specific tree types on used and spent copper tailings. It looks like the moon, but by replanting the right type of crops, you can create biofuels. In turn, those biofuels can be a shared crop for our food crops.” He stresses that it’s important to value the natural capital with efficient use of water, understand the value of soil health and manage the impact on natural ecosystems. AUGUST 2019
Once these agribusinesses are given the opportunity to flourish, it’s vital to secure access-to-market by building the value chain, asserts White. “Sadly, there are many examples in Africa – whether a cassava plant for flour or a tomato factory – where the whole value chain hasn’t been addressed. Whether it’s the upstream, where they are going to sell, or the logistics to move the products, an integrated and holistic view of the requirements at each stage of the value chain are essential.” New technologies and innovative approaches are key. White is excited about a couple of projects in development that will mix solar PV with agribusiness. “Mines need power, lots of power… If you can install a 50 MW solar panel installation with hydroponics you can farm underneath the panels. It’s a useful approach when land is not suitable for traditional agriculture and we can actually take some of that energy and use it for processing crops like cocoa and vegetables; for washing them and for cooling. Having that energy source on site can be a wonderful thing.” Mining companies can spend millions w w w.c so ma ga z i n e. com
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C O M PA N Y I N F O
Making a difference with impactful partnerships
168
“Our network enables us to bring in big players to make big things happen,” says ImpactAgri’s founder and CEO Jon White. “For example, AFGRI in South Africa is one of our key partners providing agriculture services across the region: grain management and storage; equipment and financialC Oservices M P A N Y I N to F O support full-scale commercial farming. You need alliances with organisations capable of operational excellence in each country who understand its complexities to be able to deliver results.” ImpactAgri is also working with companies like Rubicon Integrated Services, which offers its expertise in community infrastructure improvement, water tech-nologies, disease vector eradication and road building.
AUGUST 2019
of dollars on CSR schemes but too often it’s wasted stresses White. “Building hospitals and schools is a great thing to do… But if there isn’t a network in the community and a tax system to pay for teachers and doctors, every year they have to keep financing the project. This ends up being a cash drain while they’re being vilified for not creating other jobs.” He argues that projects need to offer real jobs that generate tax to be self-sustaining. “We believe you can take your CSR budget, and make it into a cash generator. Not a cost,” he pledges. “That’s the advantage of working with ImpactAgri.” Within each country it operates, ImpactAgri identifies strong off-take partners for specific crops… For example, in Uganda, the company is allied with one of the biggest traders of macadamia nuts. “The ideal model is to start with a farm as a commercial entity that supports the business in terms of paying for equipment, off-take and processing,” says White. “But as we expand, we’d rather work with the farmers on their own land, under contract to actually deliver services w w w.c so ma ga z i n e. com
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to them such as irrigation systems,
ImpactAgri has developed a portfolio
equipment and help with off-take.
that diversifies the risks but White
It’s very inclusive.”
concedes it’s hard to find investors
Hampton highlights the constant
for individual greenfield sites. To
challenge to secure financing. “On
secure returns he recommends a
a US$40m project, the hardest funds
minimum 10-year cycle as these are
to raise are the first $1-2mn for the
long-term projects where you need
environmental assessment and
to plan for a year when yields are
feasibility studies. No one wants to
less than ideal, while Hampton warns
pay for that. It’s too small for most
against the perception that brown-
investors, and the bigger investors
field sites can offer a quicker turna-
want that to be done before they
round: “In Africa, it’s often better to
consider getting involved…”
build something from scratch than
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AUGUST 2019
try to turn around someone else’s
tackle unique agricultural challenges
problem project.”
alongside the communities we
ImpactAgri’s minimum goal is to
engage with. Ultimately, you can’t
generate half a billion dollars of
simply buy into a project in Africa
investment in agricultural projects by
sitting in an office, you have to go
2025. The current pipeline is already
out there and make it happen.”
over $300mn with more funding imminent. “We’ve found a unique proposition,” says Hampton. “We have people in our team happy talking to financiers and lawyers on ‘Wall Street’ but we also have people capable of going out in the field to 171
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