CSO Magazine - September 2019

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DRIVING SUSTAINABILITY THROUGH COLLABORATION

A responsible approach to water services Securing a sustainable community for future generations

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FOREWORD

W

elcome to the September issue of CSO magazine.

Melbourne Water is committed to both outstanding water management through social procurement and the safety of its operatives. Through a rigorous transformation journey, it is maximising the efficacy of its operations on both counts. Melbourne Water faced a challenge in cutting its injury frequency rate and Eamonn Kelly, General Manager of Major Program Delivery, asserts that tackling the issue has been done with speed and decisiveness. “We weren’t just pointing a finger at the contractor to improve safety performance. We wanted feedback to learn what it was about our framework that was causing this,” Kelly explains in our cover story, which details the strategy driving safer and more competitive operations at the firm.

In this month’s lead feature, we speak to Gusto Organic Drinks’ CEO, William Fugard, about how the company is infusing sustainable practices across its operations to ensure it adheres to its laudable mantra: natural, organic, and fair trade.

Our Top 10 assesses the leading green utility companies, while our Events segment offers the latest rundown for those seeking to network with, and glean top insights from, industry thought leaders from around the globe.

Don’t forget to check out the in-depth company profiles on SIMEC Energy Australia, Soorty Enterprises, Nova Scotia Power and more.

Enjoy the issue!

Marcus Lawrence marcus.lawrence@bizclikmedia.com

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03

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CONTENTS

12 MELBOURNE WATER IS LEADING ON SAFETY AND SOCIAL PROCUREMENT TO KEEP THE WATER FLOWING

46 58 New order in

Automation for a new era of smart manufacturing

34 How Gusto Organic Drinks is energising the market with organic, fairtrade drinks

Traceable supply chains: it’s time to act

Greenest utility companies

92 66

The biggest industry events

76

CONTENTS

96 Teys Australia

114 SIMEC Energy

132 Resilient Melbourne

146

160

Soorty Enterprises

Nova Scotia Power

12

Melbourne Water is leading on safety and social procurement to keep the water flowing WRITTEN BY

DAN BRIGHTMORE PRODUCED BY

TOM VENTURO

SEPTEMBER 2019

13

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M E L B O U R N E W AT E R

Melbourne Water’s commitment to encouraging best practice for safety across all its assets, allied with a strong commitment to social procurement, is helping the Victorian governmentowned statutory authority secure sustainable communities for future generations 14

M

elbourne Water manages $15bn worth of assets that span the entire water cycle, from waterways and wetlands, drainage

and flood management to water supply and sewerage assets – a unique model compared to most other major cities across Australia. It relies on strong collaboration with Melbourne Water’s retail water sector (for water and sewerage services) and 38 councils (for stormwater management).

Melbourne Water looks after all major infrastructure, dams, pipelines and treatment plants on the supply side, and also manages the major treatment works on the sewerage side and the sewerage network down to approximately 300mm pipes. “We then interface with a number of retailers across the Melbourne metropolitan region,” explains Eamonn Kelly, General Manager, Major Program Delivery at Melbourne Water. “South East Water, City West SEPTEMBER 2019

Western Treatment Plant, Werribee, Victoria

$1.9bn Approximate revenue (AUS)

1891

Founded as Melbourne Metropolitan Board of Works

1,200

Nutrient Removal Plant project, Western Treatment Plant, Werribee, Victoria

Approximate number of employees w w w.c so ma ga z i n e. com

15

CLICK TO WATCH : ‘MELBOURNE WATER’S STRATEGIC DIRECTION’ 17 Water, Yarra Valley Water and Western

paramount. But, in 2015 – when Kelly

Water deal with all the individual,

returned – the business was struggling

residential, and commercial customers.”

to deliver its forecast capital works

Melbourne Water also acts as the

programme. More importantly two of

custodian of protected catchments

the biggest tier-one contractors in the

of natural parkland waterways.

country, CPB Contractors and John

“We manage the closed catchments

Holland Group (JHG), were running

that supply the bulk of Melbourne’s

the highest total recordable injury

drinking water,” confirms Kelly. In total,

frequency rates in their state-wide

we are responsible for the health of

business units under the Melbourne

around 25,000km of waterways

Water Framework.

across the greater Melbourne Region,” confirms Kelly.

Across all of its operations Melbourne Water’s commitment to safety is

Melbourne Water’s response was swift and decisive. Kelly spoke with senior leaders at CPB and JHG about what was driving these behaviours and w w w.c so ma ga z i n e. com

Taking care of every drop.

Communities depend on safe, easy access to clean water, from breakfast time to bath time, industrial use to irrigation, the efficient capture, storage and management of water helps keep life flowing.

Since 2013, the John Holland/KBR joint venture has worked with Melbourne Water to deliver its capital works program.

Working together and thinking differently is transforming our approach to safety, wellbeing and social procurement to improve the programs outcomes.

We are market leaders in providing solutions in water infrastructure that address the future needs of communities and our customers.

Our strong track record of delivering critical water infrastructure is a testament to our commitment to transforming lives.

johnholland.com.au kbr.com SEPTEMBER 2019

how to fix the problem. “We weren’t just pointing a finger at the contractor to improve safety performance,” explains Kelly. “We wanted feedback to learn what it was about our framework that was causing this.” A number of interventions were designed to collectively fix a number of issues but the main problem was that the commercial model in place was driving the tier one contractors towards a heavily subcontracted model.

“We were pushing a lot of risk on the

“ We push each other to achieve zero harm and produce quality projects second to none. Our team is accustomed to the diversity that Melbourne Water projects bring along with the collaborative and inclusive partnership we all feel is a recipe for success” — David Harry, Director, Delcon Civil

subcontractors, and their way of managing that was passing that risk on

19

to their subcontractors,” he explains.

“We were seeing a highly transient workforce across all of our projects,

joint venture and Downer/Abergeldie/

with three or four levels of subcontrac-

Stantec (this Safety Focused Perfor-

tors on some of our work sites.

mance joint venture also includes

Basically, you never knew what you

Downer) to deliver the bulk of the

were going to get on site in terms of

framework. “We also switched to a self-

people turning up with the right

performed model on the lower end of

behaviour and mindset in such a

our capital delivery framework for

high-risk environment.”

projects below $2mn,” says Kelly.

Melbourne Water set about changing

“We targeted smaller contractors with

that, which led to retendering the

the means to self-perform to come

framework in 2017 with a view to reduc-

together. AquaMetro Services started

ing subcontracting levels to nominated

off delivering around $20mn in its first

like-minded companies while keeping

year. Last year, it delivered $33mn of

trusted consortia like the JHG-KBR

total work for us. In the first two years w w w.c so ma ga z i n e. com

M E L B O U R N E W AT E R

“ We switched to a self-performed model on the lower end of our capital delivery framework. In the first two years, we didn’t have one recordable injury” 20

— Eamonn Kelly, General Manager, Major Program Delivery, Melbourne Water

SEPTEMBER 2019

we didn’t have one recordable injury, predominantly due to the fact they started small, handpicking the people that they would use to self-perform on their jobs. Get good people on your work sites, build a level of trust and capability in that safety performance, then safety should look after itself.

We’re seeing that, even in our major framework. Our safety performance indicators came down from levels up around 15; now they’re at two to three.

There’s still room to improve, but we’re in a better place than three years ago.”

Mal Shepherd, General Manager Water Services at John Holland adds. “We

CLICK TO WATCH : ‘MELBOURNE WATER GENERATIVE SAFETY CULTURE EVENT’ 21 started the generative safety culture

Water. “We role-played what a good

journey with Melbourne Water with the

pre-start meeting should look like,”

purpose of together moving the

adds Kelly. “We gave staff a line in the

dialogue toward a more mature

sand around our expectations, and

approach to how work is planned and

what could happen if they’re not met.

undertaken by the workforce. But,

It was a very powerful tool for our

more importantly, to create an environ-

supervisors on-site so we’re keen

ment of trust where we could learn

to continue that process with our

more deeply from our mistakes.”

construction workers.”

Recent interventions to improve

Melbourne Water is planning further

safety protocols have included staging

initiatives like these to promote a truly

a mock incident, followed up with court

generative safety culture rather than

scenarios featuring professional police

simply focus on the stats: “We can

prosecutors, to further educate staff

learn from others, they can learn from

on what’s expected at Melbourne

us. We need to continue the conversaw w w.c so ma ga z i n e. com

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tion, that’s how I think we can get better

feedback is a gift – positive or negative,

as an industry in this safety space, with

it’s a learning opportunity.”

a collaborative approach,” he says,

Delcon Civil (now under the JHG

noting that pushing towards these

consortia) has worked with Melbourne

safety goals at Melbourne Water has

Water for the past 15 years, sharing the

not been without its challenges. “We’ve

same expectations around safety.

had to develop trust around the safety

“We push each other to achieve zero

leadership table to allow open and

harm and produce quality projects

frank two-way feedback. Contractors

second to none,” says Director David

and consultants are always happy to

Harry. “Our team is accustomed to

receive feedback from the client, but

the diversity that Melbourne Water

don’t like biting the hand that feeds

projects bring along with the collabora-

fearing the client could take their

tive and inclusive partnership we all

feedback negatively. One of the

feel is a recipe for success.” Quality

phrases we coined was that all

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E XE CU T I VE PRO FI LE

Eamonn Kelly A former General Manager of the Infrastructure Group at Melbourne Water, where he previously worked for seven years, Kelly left to pursue challenging infrastructure roles with Connex Melbourne, Black & Veatch and Thiess Services where he was General Manager for Water. Returning to Melbourne Water in 2015, his experience bringing people together to build high performing teams has collaboration at its heart: “I focus on trust, respect, and the ability to give frank and open feedback. If you can do that, you’ll run a successful project.”

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23

M E L B O U R N E W AT E R

Focused Performance consortia and

and building capacity in the workforce

its General Manager Bruce Kerr

to be agile, more risk conscious and

echoes that positivity: “I’m not aware

adapt work plans to suit change in the

of many clients that constantly drive

work environment.”

communication in the safety space like Melbourne Water. It feels inclusive,

procurement, Melbourne Water is also

they want to work with all of their

facilitating a number of initiatives

contractors so everyone can buy into

aligned with the Victorian Govern-

the culture.” This culture was recog-

ments Local Jobs First policy. One

nised with a WorkSafe award for safety

such initiative was started within JHG.

leadership in 2018, and has resulted

The Pathways Program began in

in Melbourne Water being shortlisted

response to Victoria’s infrastructure

once again for 2019.

boom by exploring different avenues

Kelly believes the key to engaging 24

Through its commitment to social

the workforce lies in developing

for the recruitment of talent. “Migrant professionals were a relatively

relationships, and by employing authentic safety leadership in every site interaction. “You can’t do that at one forum with 300 people in a room, you have to get out and about. It’s not about documentation and apportioning blame. We’re always getting new people on site so you can never take your eye off the ball. You have to talk to people, be visible on site and be seen to be taking their safety seriously.”

Shepherd adds: “We want to make working safely a habit across the water industry. This requires bridging the gap in our thinking away from more rules and tools, to decluttering our approach SEPTEMBER 2019

Niru Gosavi, Melbourne Water’s Program Delivery Director (center) is championing the Pathways Program and is pictured here with participants Evelyn Mugisha and Chris Daramola

CLICK TO WATCH : ‘MELBOURNE WATER PATHWAYS PROGRAM’ 25 untapped resource,” recalls Kelly. “JHG formed a partnership with Jesuit Social

“ Social responsibility is integrated into our business model.

To us it means fulfilling our duties and responsibility towards society, especially the Traditional Owners of the Country Australia” — Marcus Wade, Director, Aqua Metro Services

Services, a not-for-profit social services organisation supporting the migrant workforce entering Australia.

Jesuit Social Services used its network to advertise for project and construction engineers, leading to JHG taking on 21 new team members. Glenn Crisp, Regional Construction Manager for JHG says: “The John Holland Pathways Program was one of the most rewarding experiences of my professional life.

We know there are benefits in a diverse workplace. It was certainly a positive w w w.c so ma ga z i n e. com

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Melbourne Water: technology Melbourne Water is eager to embrace new solutions to maintain and enhance its infrastructure. Kelly concedes that, like most major infrastructure organisations, there are still challenges to overcome in the adoption of technology and process to support a mature and progressive adoption of digital engineering. “We’re catching up now with 3D design and VR for design reviews,” says Kelly.

“We’re focused on leveraging automation and IoT for monitoring, 3D visual representation of our assets and automation, which is much easier now with the use of local monitors, drones and VR. Utilising VR for design reviews is now common practice” he adds. In the construction or built asset space, the corporation is aiming to

implement BIM (Building Information Modelling) “throughout the asset lifecycle” on future projects to improve the efficiency of Melbourne Water’s assets.

Meanwhile Melbourne Water is also making use of real-time controls across its drainage network to address potential blockages. “We are the custodians of the waterways so we have to look after both the quality of water and how it’s drained to minimise the impact of f lood” adds Kelly. When heavy rainfall occurs “we have to respond quickly, so we’re utilising IoT devices with the ability to perform real-time monitoring of blockages of our drainage network to enable us to respond quickly to minimise any potential impact on our customers.”

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27

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M E L B O U R N E W AT E R

30 experience for the candidates but the

“ When you build a passion in people that makes them want to come to work, and you look after their wellbeing, they will repay you in spades and your projects will be all the better for it” — Eamonn Kelly, General Manager, Major Program Delivery, Melbourne Water

energy that these people brought to the workplace was more than I expected. We ended up with some very capable and competent engineers that before this were unable to get an opportunity in the workplace”. Kelly adds: “We’ve just kicked off our first cohort of eight Pathways participants.

Some of them had been applying for jobs as civil engineers, for over three years, and never got to interview. The fact they were still applying shows a great level of resilience and tenacity.

The energy and passion they now bring into the business is just incredible.”

SEPTEMBER 2019

ment to bring young indigenous graduates through the system, and – as part of our long-term initiative – hopefully put them through college to give them a future in their chosen discipline within the construction industry, whether that’s civil, electrical or mechanical.”

AquaMetro’s Director, Marcus Wade believes that every organisation, regardless of scope, has the power to make a difference to the world around it. “Social responsibility is integrated

Melbourne Water Pathways Program participants

into our business model,” he says.

“To us it means fulfilling our duties and responsibility towards society especially

Another progressive social procure-

the Traditional Owners Of the Country

ment initiative is focused on lifting the

Australia. We are deeply invested in the

level of indigenous participation within

financial success and economic

the construction industry. “Due to the

independence of Indigenous Australians.”

pressures of recent history we just

Melbourne Water has incorporated

don’t see enough indigenous workers

a number of social procurement KPIs

in the mainstream workforce,” notes

into its new framework agreements.

Kelly. “We’re trying to promote new

“the more entities that are actually

pathways by supporting AquaMetro

driving in the same direction, the more

Services with the creation of a 100%

successful we’re going to be,” says

indigenous subcontractor. We will

Kelly. “Our contractors realise they

assist with schooling and training to

need to contribute also. It’s proven now

enhance their capabilities so they can

that the more diverse your workforce,

start their own business and operate

the more successful you’re going to be

as an independent contractor. This will

and the more we reflect the make-up

provide a safer, more trusting environ-

of our communities, the more we can w w w.c so ma ga z i n e. com

31

M E L B O U R N E W AT E R

John Holland Group & KBR Promoting Safety & Diversity

32

John Holland Group ( JHG) is among Australia’s leading contractors and plays a key role in helping Melbourne Water deliver an ambitious capital works program. Mal Shepherd, JHG’s General Manager, Water Services praises the efforts made by Melbourne Water to promote a positive safety culture where the workforce is inspired to take ownership of work plan solutions: “We want to make working safely a habit, not only for John Holland but across the water industry. This requires bridging the gap in our thinking away from more rules and tools, to building capacity in

connect with them.”

Looking to the future, the JHG-KBR

the workforce to be agile, more risk conscious and adapt work plans to suit change in the work environment.”

Addressing the need for diversity in the workforce, Glenn Crisp, JHG’s Regional Construction Manager in Victoria, cites the JHG Pathways Program as among the most rewarding experiences in his professional life: “The energy these people brought to site was more than I expected. We ended up with some very capable and competent engineers that before this were unable to get an opportunity in the workplace.”

JHG’s joint venture with KBR has

highly collaborative model within a competitive framework,” explains Kelly.

joint venture and the Safety Focused

“Therefore, in the safety and social

Performance consortia will compete

procurement spaces, you get both

for the bulk of Melbourne Water’s

consortia working together and

capital works program (approximately

sharing ideas because it helps them

$200m/annum). “The model’s interest-

attain their KPIs with us. That’s what

ing because it’s not an alliance but a

we’ve nurtured with them, and they

SEPTEMBER 2019

there’s a lot of collaboration that works across and underpins that.”

Kelly is proud of the initiative which has fostered a high level of trust within thrived with Melbourne Water’s long-term approach, bringing value to customers via a programmatic mode of delivery. “The benefit is realised through continuous improvement, standardisation, consistent development of people, and the supply chain, to deliver innovative solutions,” explains Wayne Nolan, KBR’s Vice President, Infrastructure Services, Australia.

“We began providing services to Melbourne Water in 2013 and over this time formed strong and positive relationships with Eamonn Kelly and his team. We look forward to continuing to safely deliver a high standard of customer outcomes.”

the framework. He’s keen to develop long-term partnerships like these to be able to meet the needs of Melbourne’s “overheated” infrastructure boom. “We don’t want to lose their input because when we get it right it becomes an effective self-fulfilling model; one founded on keeping those contractors and subcontractors with an amount of work that makes their business sustainable.” It’s a major reason why the future looks bright for Melbourne Water pledges Kelly: “When you build a passion in people that makes them want to come to work and you look after their wellbeing, they will repay you in spades and your projects will be all the better for it.”

realise that success for the two consortia is very much dependent on the success of their competitor, because if one of the consortia starts outstripping the other, the whole model fails, and we’ll be back out to market.

We’re looking for continuous improvement through direct competition, but w w w.c so ma ga z i n e. com

33

S U S TA I N A B I L I T Y

34

FROM RAVES TO OCADO

HOW GUSTO ORGANIC DRINKS IS ENERGISING THE MARKET WITH ORGANIC, FAIRTRADE DRINKS Natural, organic, and fair trade: this is the three-word mantra behind Gusto Organic Drinks. We talk to CEO William Fugard and discuss sourcing ingredients, the sugar tax, and the importance of the Fairtrade movement… WRITTEN BY

SEPTEMBER 2019

L AUR A MULL AN

35

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S U S TA I N A B I L I T Y

T

he origins of Gusto Organic Drinks can be traced back to a party. In the summer of 1987, Craig Sams – the entrepreneur

behind Whole Earth and Green & Blacks

– was preparing for a big celebration at the Groucho Club in London. He wanted to concoct something for his alcohol-free drinkers and so he mixed together a natural energy drink with ingredients like guarana, cola nut and ginseng, flavours that were reasonably uncommon in the UK at the time. Needless to say, it was an instant hit.

Spotting the drink’s potential, Craig’s 36

children Rima and Karim encouraged him to bottle the drink for the masses and later took over the firm, naming it Gusto Organic Drinks.

Looking back, it seems the UK-based firm has been on an upward trajectory ever since.

In the late eighties, the energy drink was a roaring success amongst clubbers in the rave scene, offering a natural and energising way for party goers to keep dancing throughout the night.

Fast-forward to today and Gusto Organic is now a rapidly growing brand, with products found in Ocado shopping bags, the Tate Modern museum, and more. CEO William Fugard describes how consumers are savvier than ever before and are searching for products that do away with synthetics in SEPTEMBER 2019

37 favour of organic, Fairtrade ingredients. This has allowed Gusto the space to make its mark as one of the first natural energy drinks in the market.

“The consumer movement away from alcohol and towards craft beverages has been explosive,” he says. “We’ve seen how craft beer and gin have dominated the shelves of supermarkets, and I think now we’re seeing a similar approach to fizzy beverages.

They’re no longer viewed through a lens as a children’s drink, they’re increasingly entering the premium adult market.

“At Gusto, we’re seeing a growing demand for drinks that have complex flavours and 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

“ WE CREATE DRINKS THAT APPEAL TO AN ADULT PALATE; THEY HAVE COMPLEXITY, THEY CHAMPION INGREDIENTS AND REALLY FOCUS ON PROVENANCE”

38

William Fugard, Chief Executive Officer, Gusto

a well-being perspective,” he adds.

“I think it’s a hugely exciting time to be in the market and we haven’t even scratched the surface in terms of all the drinks we want to bring out.”

Gusto’s portfolio has diversified rapidly since that first energy drink – now offering unique flavours like Lemon Energy, Sicilian Blood Orange, Real Cola, among others.

Getting the right flavour is perhaps the most important step for food and drink businesses. Fugard SEPTEMBER 2019

contests that the secret to this challenge is creating flavours that the team themselves want to drink, using only the best ingredients to offer a taste of the provenance.

“We create drinks that appeal to an adult palate; they have complexity, they champion ingredients and really focus on provenance ,” he notes. “We have diversified our portfolio and now produce both energy drinks and soft drinks with a similar Gusto perspective.”For instance, worried about the excessive use of refined sugar and additives in colas the firm set about creating its own organic, natural alternative – Gusto Real Cola.

“It was a real lesson in the importance of getting the look right, getting the flavour right and being able to sell it correctly,” he continues. “I think we hit the mark as we’ve created drinks that have been immediate successes and which have even unseated big brand names from the like of the Tate Modern and Tate Britain museum.” w w w.c so ma ga z i n e. com

39

S U S TA I N A B I L I T Y

When sourcing its vanilla from Madagascar or even its blood oranges from the slopes of Mount Etna, Gusto’s commitment to organic produce has been unwavering. This has also become a pressing priority for consumers too who are increasingly backing the organic market with their wallets. In the UK alone, sales of organic food and drink rose by 6% last year to a record £2.2bn (US$2.8bn).

Yet, as Fugard highlights, this is not just a financial advantageous proposition, it also a key part of the company’s ethos.

“There are no two ways about it, organic 40

is part of our DNA,” Fugard says. Today, the firm is heavily overseen by bodies like the Soil Association to uphold this organic certification and it also doesn’t use unnatural flavours or ingredients like phosphoric acid. This gives consumers a strict level of confidence that they know exactly what they’re drinking.

“To put it simply, the organic certification mark is the most credible sign you can get that ensures a customer is going to get a product that has been treated with as few pesticides and fertilisers as possible,” comments Fugard. “It ensures the ingredients come from land that is farmed with proper land stewardship.”

“I think consumers are getting more SEPTEMBER 2019

“ THERE ARE NO TWO WAYS ABOUT IT, ORGANIC IS PART OF OUR DNA” — William Fugard, Chief Executive Officer, Gusto

sophisticated,” he adds. “They’re much more aware of issues around wellness and they understand the labels on the foods they buy.

Today organics are intertwined with people’s perceptions of not just their wellbeing but also their perceptions of land stewardship and to a certain extent to their ethics. That’s really been a game changer for us. This demand for organics has been driven by the consumer.”

On top of this, Gusto has also positioned itself as a Fairtrade company, with oversight from the British Retail Consortium, the Soil Association as well as the Fairtrade Foundation, Gusto Organic. This may involve extra care, but for Gusto Organic, it’s not questioned: Fairtrade is now hardwired into the company culture. Whilst he is proud of this certification, Fugard is keen to point out that this shouldn’t be an anomaly in the sector, it should be the norm.

“There are so many brands in the market who often practice virtual signaling, whereby they make a big deal about their ethical footprint.” reflects Fugard. “It sits a little uncomfortably with me because I think in reality we should all be looking through a Fairtrade lens.” Although it may prove challenging, this oversight ensures that when Gusto Organics sweetens its products, for instance, it uses w w w.c so ma ga z i n e. com

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S U S TA I N A B I L I T Y

Fairtrade agave which supports a cooperative in Jalisco, Mexico. The cooperative pays two and a half times the average local wage to its farmers and it’s committed to issues like indigenous rights and gender equality.

“I think Fairtrade is an important issue,” he adds. “It’s a logical thing to do and it should be seen to be a normal progression for a business, rather than an exceptional activity.”

Changing consumer habits have sent waves throughout the UK drinks’ sector, but none have delivered quite the same impact as the British government’s Soft Drinks 42

Industry Levy which came into effect in April. The levy charges manufacturers for their sugar use in the hope that they’ll reformulate their products. With the organic sector unable to use artificial sweeteners, Fugard contends that the policy may have been a hasty one.

“As an organic business, we have few ingredients in our toolbox that we can use to reformulate our drinks,” Fugard observes.

“I think the sugar tax has been a very blunt tool. It’s an effective way of the government raising revenue, but I would argue that a minimum pricing model would have been better as it wouldn’t have encouraged drinks SEPTEMBER 2019

£2.2bn In the UK alone, sales of organic food and drink rose by 6% last year to a record £2.2bn (US$2.8bn)

10

Gusto Organic Drinks is available in 10 countries from Holland to Japan

200

Gusto Organic Drinks is available in over 200 UK stockists brands to rush in the direction of artificial sweeteners. It also would have removed cheaper, sugary drinks from the shelves.”

Nonetheless, Gusto Organic has tackled this challenge head-on. The firm has grown rapidly since it concocted its first energy drink in the eighties. These days, you’ll find the brand in 10 different countries, from Holland to Japan, as well as in over 200 UK stockists worldwide. In the last year, the firm has also doubled its production capacity and, looking forward, Fugard hints at some exciting new flavours in the pipeline. w w w.c so ma ga z i n e. com

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S U S TA I N A B I L I T Y

“ FAIRTRADE IS AN IMPORTANT ISSUE. IT’S A LOGICAL THING TO DO AND IT SHOULD BE SEEN TO BE A NORMAL PROGRESSION FOR A BUSINESS, RATHER THAN AN EXCEPTIONAL ACTIVITY” — William Fugard, Chief Executive Officer

44

SEPTEMBER 2019

45

“We’ve got a lot of stuff bubbling away at the moment,” alludes Fugard. “We have a natural sports nutrition project in the pipeline as well as an upcoming project around gut health.

We’ve also been looking at whether we could grow some of our own ingredients and are working with some more British flavours. I think we have an enormous part to play within this country, so watch this space.”

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LEADERSHIP

New order in 46

WRITTEN BY

HARRY MENEAR

Alexei Miller, Managing Director at DataArt, discusses digital transformation and the ways technological and cultural change has transformed the way business is conducted

SEPTEMBER 2019

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LEADERSHIP

P

erhaps the most seemingly-inevitable change occurring now is the digital transformation of the global enterprise landscape. Business

models are being rewritten, entire industries grow

from a single startup in a matter of months, and those who are unwilling to adapt are disrupted into the Wikipedia subheadings of history. Digital transformation is an avalanche. The impact of a single snowflake on the top of a mountain prompts calamitous chain reactions that propel millions of tons of snow towards the world below.

48

Alexei Miller, co-founder and Managing Director of professional IT services firm DataArt, is someone with the capacity and experience to see the avalanche with clarity. “Life used to be simple.

There was business and there was IT. Business was kind of clueless, but they had the money, and IT had the expertise but none of the money,” he explains. The resentment-fuelled dichotomy was, Miller recalls, at least predictable. “Business hated IT, because they were always late or expensive or buggy; and IT always hated business because it saw business as clueless - unable to appreciate or take advantage of the miracles of technology, or something to that effect,” he shrugs. “Whatever.” And so this modern fable continued for many years, with “everybody happily hating each other.”

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LEADERSHIP

“ Now you can create new worlds; things are so messy that you can shape new opportunities for yourself” 50

— Alexei Miller, Managing Director, DataArt

Now, in mid-avalanche, Miller laughs, everything is “so much worse.

Everything is messier, because the technology changes so fast, it is impossible for a CTO – no matter how smart or qualified he or she is – to keep up.” At the same time, he explains, those traditional ‘business side’ people have become increasingly technologically adept. “They didn’t learn to use a computer in their 40s, like their parents’ generation,” Miller says. “Sometimes they know more about cloud, AI and so on, than their technology counterparts.” This world turned upside down by dramatic forces of entropy is, Miller insists, chaotic and messy, but ripe with opportunity. “It’s no longer clear who you’re selling to, what you’re selling or who’s making what,” he shrugs again. “You can choose to get depressed about it, because your life is more difficult now, or you can choose to see the fantastic opportunity. Now you can create new worlds; it’s so messy that you can shape opportunities for yourself.”

Miller approaches the future with a realist’s eye, both for technology and business

SEPTEMBER 2019

CLICK TO WATCH : ‘TECHNOLOGICAL REVOLUTION IN FINANCIAL INDUSTRY. ALEXEI MILLER, MANAGING DIRECTOR AT DATAART’ 51 strategy. Founded in 1997, DataArt has

manifestations of that in many walks

spent more than 20 years designing,

of life. I think, similarly, people seek

developing and supporting unique,

certain opportunities to create and

custom software solutions for enterprise

experiment,” he posits. This has

clients ranging from the Nasdaq to Apple

changed the values of the workplace

Leisure. As someone with over two

as well, Miller suggests. “It’s not

decades of experience enabling

just a place to make a bit of money.

companies to survive and thrive in

I’ve been very lucky that DataArt has

response to avalanches of change,

given me that opportunity to create,

Miller is a judicious embracer of these

experiment and generate experiences,

reconfigurations of the status quo.

not just money.”

“If you’ll allow me to be a little

The Greek philosopher Aristotle was

philosophical for a moment, people

an astounding polymath – an expert

are seeking experiences instead of

in and font of the leading philosophical,

things these days, right? We see

rhetorical, scientific, medical and w w w.c so ma ga z i n e. com

LEADERSHIP

astronomical wisdom of his time.

So expansive was his knowledge and ability that he is frequently described as ‘knowing everything’ about the time in which he lived. Obviously, mankind’s body of knowledge has come a long way since then. Whatever the probability of there once being a person who contained the combined sum of knowledge in the world, those days have been swept away by the fractalizing complexities of an advancing human race.

Looking at the current business 52

landscape, Miller notes that this is a realization that may not be as obvious to some as it should. “I kind of protest against this notion of a business leader who is all-knowing, all powerful and the idea that everyone around is just helping him or her. This cult-like thinking is a little bit too prevalent in American business culture these days.

I revolt against that,” he explains.

“Those leaders are the beneficiaries of gifts they’ve been given by people around them who are better than them in many ways. There are lots of people who are better, smarter, faster and prettier than me. I can be envious of their good fortune and try to SEPTEMBER 2019

control or take advantage of that fact, or I enjoy their company. If you’re able to build this structure where they work with you, but not for you, everyone gets to enjoy the process a little bit better.”

The pace of digital transformation is such that no one individual can hold even a single discipline entirely in their own head. Collaboration and deference to genius are the keys to finding a new form of order in an avalanche of chaos. As John Donne put it, “No man is an island entire of itself; every man is a piece of the continent, a part of the main.”

“ I kind of protest against this notion of a business leader who is all-knowing, all powerful and the idea that everyone around is just helping him or her” — Alexei Miller, Managing Director, DataArt

To Miller, another success characteristic is the ability for companies to differentiate themselves, but approach the process with, again, a realist’s eyes. “Inevitably in this day and age, in order to be and stay unique, you need technology to support you.

And therefore, if you do things that are unusual, then these unique or special processes can’t be supported with cookie cutter products,” he says. “You cannot base your unique processes on something that lots of other firms can easily buy or subscribe to. You can hardly claim that you have unique CRM processes if you plainly use w w w.c so ma ga z i n e. com

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LEADERSHIP

54

standard Salesforce software, like many thousands of other firms do.”

This is where DataArt’s expertise comes into play: not only working with its clients to create custom solutions, but also helping digest the newly-ongoing nature of digital transformations strategies. “Creating and sustaining unique technology is not for the faint of heart. The projects are never short, never cheap and never easy.” Miller notes that, while these projects can be immensely rewarding, they need to be undertaken by a firm SEPTEMBER 2019

“ You cannot base your unique processes on something that lots of other firms can easily buy or subscribe to” — Alexei Miller, Managing Director, DataArt

‘well, if it is successful, then it will take an infinite amount of time and an endless amount of money’.” The modern IT solution is sold, not once, but continually with its upkeep and ongoing development sold as a service. This is the new world that Miller sees as filled with opportunity.

Going forward, Miller intends to continue building and developing a company to which he feels “a sort of parental attachment”. Exhibiting between 20-30% growth each year, DataArt is continuing to penetrate further into the US and European markets. “In any professional services business, your reputation in the that is knowledgeable of and willing to

marketplace and the trust you have

accept the inherent risks. The timeline

with specific individuals, is pretty

for these digital transformation projects,

much the only current that you have,”

Miller explains, has also radically

he says. In addition to building up the

changed. “It leads to uncomfortable

currency of reputable trust, Miller and

answers to questions that previously

his teams will continue to “preach the

seemed very straightforward,” he admits.

gospel of digital transformation,” as

“For example: the simplest question an

well as focusing on the company’s

executive can ask is ‘how much is this

internal and ongoing journey.

going to cost and how long is it going to take?’” he chuckles. “When you have a finite object, you can ask these questions. In this brave new world, the honest answer to these questions is, w w w.c so ma ga z i n e. com

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Covering every angle in the digital age The Business Chief platforms offer insight on the trends influencing C and V-level executives, telling the stories that matter

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TECHNOLOGY

58

AUTOMATION FOR A NEW ERA OF SMART MANUFACTURING We take a look at the possibilities and potential pitfalls of automation, examining a few of the companies heralding a smarter, more efficient and sustainable approach to manufacturing WRITTEN BY

WILLIAM SMITH

SEPTEMBER 2019

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TECHNOLOGY

T

he drive for automation is showing no signs of abating, with new manufacturing centres increasingly requiring automation technolo-

gies to be built in. ‘Smart’ manufacturing has become the watchword for companies in the industry. The Siemens Smart Manufacturing Innovation Centre in Chengdu, China, for instance, opened on 21 May this year. Ericsson, meanwhile, is planning to open an automated smart factory in the United States in 2020.

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In a manufacturing context, automation takes many forms. Whether that’s 3D printers removing human error from the equation, quality control software increasing throughput or robots able to assemble parts with unrivalled speed and precision. In recent years, this activity has been supercharged by the maturation of technologies such as artificial intelligence (AI) and machine learning.

Enabling the ‘smart’ manufacturing of the future, such advancements help to imbue automated solutions with qualities of human workers. A ‘dumb’ 3D printer will continue to print even if there has been a failure in the process, wasting resources.

A ‘smart’ solution employing AI and machine learning, however, could recognise failure and take measures to abort or restart the process.

SEPTEMBER 2019

“A TOTALLY AUTOMATED OR ‘LIGHTS OUT’ FACTORY HAS THE ATTENDANT BENEFIT OF NOT REQUIRING SYSTEMS NECESSARY FOR HUMAN WORKERS, SUCH AS LIGHTING AND HEATING, THUS REDUCING ENERGY CONSUMPTION”

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TECHNOLOGY

The business case for increasing

62

A 30% rise in robot installations

automation is obvious, but anxie-

worldwide, for instance, was esti-

ties persist about the impact such

mated to create an additional

technologies will have. Research by

$5tn in global GDP. The world

Oxford Economics has suggested

is well on its way to meeting such

that, by 2030, 20 million manufactur-

targets, with the number of robots

ing jobs will have been lost to robots,

used in manufacturing tripling

with those losses disproportionately

in the last 20 years. A totally auto-

affecting lower-skilled workers and

mated or ‘lights out’ factory has

those in poorer countries. Such an

the attendant benefit of not requiring

outlook is tempered, however, by

systems necessary for human work-

the expected creation of as yet

ers, such as lighting and heating,

unknown industries made possible

thus reducing energy consumption.

by robots.

“ IT IS CLEAR THAT WE ARE CURRENTLY AT THE BEGINNING OF A NEW ERA OF AUTOMATION” SEPTEMBER 2019

CLICK TO WATCH : ‘FANUC: YOUR BUSINESS DESERVES PERFECTION’

FANUC

control systems, i.e. programmable

To fulfil this demand, numerous

machines which might be capable

companies are rising to the chal-

of milling, punching or otherwise

lenge across automation sectors

manipulating items dependent on

old and new. The world’s largest

the needs of their owner. Indeed,

industrial robot manufacturer is

the company’s name is an initialism

Fanuc. According to Robotics and

of Fuji Automatic Numerical

Automation News, the company

Control. With revenue reaching

has installed some 400,000 of

some $4.79bn in FY17, the com-

its robots in factories worldwide.

pany is headquartered in the small

Originating as part of Japanese

Japanese village of Oshino.

giant Fujitsu, the company became independent in 1972. It is most

EMERSON ELECTRIC

active in the field of numerical

It is, of course, necessary to act with w w w.c so ma ga z i n e. com

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TECHNOLOGY

intentionality when implementing auto-

past. As part of this, one of the com-

mated solutions, and consequently,

pany’s focuses is on implementing the

the services of automation experts are

Internet of Things (IoT) in industry. Its

often required. Multinational Emerson

Plantweb ecosystem integrates prod-

Electric dedicates one of the two sides

ucts in the areas of production, reliabil-

of its business to providing automation

ity, safety and energy management.

solutions, and in FY17 the company’s

Emerson’s expertise extends across

revenue reached $15.26bn. Providing

a broad swathe of different industries,

automation services to industry,

including automotive, food and bever-

Emerson tailors its offerings to specific

age, oil and gas, packaging and mining.

clients, saying on its website that its expertise moves away from standard

WANDELBOTS

approaches developed in decades

As well as the work of established giants

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CLICK TO WATCH : ‘EMERSON: AUTOMATION SOLUTIONS’

SEPTEMBER 2019

such as Fanuc and Emerson, the future

in the same way, independent of the

of automation will require the input of

technology stack,” says CEO Christian

newcomers. Wandelbots is a German

Piechnick in TechCrunch.

startup with a focus on what the com-

Though automation, as we envisage

pany calls a ‘human-centered’ approach

it today, has existed since at least the

to robot programming. Having raised

1940s and the advent of numerical

€6mn ($6.73mn) in series A funding,

control, it is clear that we are cur-

Wandelbots hopes to explode and

rently at the beginning of a new era

disrupt the existing system of robot

of automation. With AI, machine learn-

programming, which differs between

ing, drones and other technologies

companies and systems, by introduc-

all driving new developments in auto-

ing demonstration-based machine

mation, manufacturing as we know

teaching. Wearing a sensor filled jacket,

it is being transformed, bringing new

users can perform actions which are

levels of efficiency and entirely new

then replicated by robots, drastically

possibilities to industry.

reducing the time taken and cost of programming. “We are providing a universal language to teach those robots w w w.c so ma ga z i n e. com

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S U S TA I N A B I L I T Y

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SEPTEMBER 2019

Traceable supply chains: it’s time to act Jonquil Hackenberg is the Head of C-Suite Advisory at Infosys Consulting. She advises FTSE 300 and Fortune 500 boardrooms on digital transformation, and is a specialist in digital supply chain and sustainability WRITTEN BY

JONQUIL HACK ENBERG

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S U S TA I N A B I L I T Y

M

entioning “supply chains” is no longer met with total incomprehension. Today’s consumers are now acutely aware of the

lengthy and complex journey that the goods they purchase go through to reach the supermarket

shelves. But more than this, they are also deeply concerned about the ethical implications of their consumer habits.

Raising the public’s consciousness about the impact of global supply chains comes down to David Attenborough’s Blue Planet II, or campaigning cook 68

Hugh Fearnley-Whittingstall’s War on Plastic documentary. Thanks to this awareness raising, supply chains have become the topic of dinner party conversation – now, it’s time for businesses to sit up and take notice.

With consumers increasingly interested in the provenance of the products they buy, corporations are under pressure to make their supply chains more transparent. They must also be able to answer questions covering carbon emissions to packaging to child labour – and for their answer to be the right one.

It’s becoming clear that companies are beginning to think of their supply chains in terms of the triple bottom line. Consumers are developing an increasing understanding of the impact that their purchasing behaviour has on the planet. As such, SEPTEMBER 2019

69

‘In the short- to medium-term, we’re likely to see benefits coming from more traditional technologies’

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S U S TA I N A B I L I T Y

‘ Whatever the future holds for supply chains, it’s obvious that consumer choices will increasingly dictate how businesses source their products and bring them to market’

it’s no longer enough to ensure that supply chains are fast and efficient.

Businesses now need to consider social, environmental and ethical factors if they are to avoid haemorrhaging new generations of customers.

More compelling still is the fact that as more people become concerned with the provenance and environmental impact of their products, including the way they are grown or produced, companies who focus on bringing ethics to the core of their supply chains can steal a march on their competitors.

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HOW TO MAXIMISE TRANSPARENCY AND ACCOUNTABILITY So how can brands make meaningful improvements to their supply chains?

Much has been made of the potential of blockchain technology: it can be used to track the miles that every component or ingredient has travelled, where they were sourced, how much carbon was used in their transportation, and how much packaging was used in the journey to the supermarket or retail store.

SEPTEMBER 2019

CLICK TO WATCH : ‘TRACKING DURIANS FROM FARM-TO-TABLE ON BLOCKCHAIN’

Exciting as blockchain is, we’re still

past these didn’t quite take off in con-

at least a decade away from seeing

sumer applications, they’re becoming

the technology become widespread

more commonplace to the woman on

for tracking items across the supply

the street. This is thanks to startups

chain. What’s more, it’s quite likely

like ScanTrust who are bringing QR

that blockchain will fail to live up to

into the mainstream.

the hype. Even so, Gartner predicts

Moreover, they are increasingly used

that by 2025 a fifth of global provid-

in manufacturing and supply chain

ers will use blockchain for food safety

operations to track products across

and provenance.

their journey. These codes can hold

In the short- to medium-term, we’re

a surprising amount of data including

likely to see benefits coming from

serial numbers, part numbers, lots, and

more traditional technologies. Take

dates. This enables manufacturers to

QR codes, for example. While in the

perform inventory management, keep w w w.c so ma ga z i n e. com

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S U S TA I N A B I L I T Y

track of items in transit and, potentially, to check the provenance of every component or ingredient.

There’s no reason why manufacturers or retailers cannot tweak QR codes so that ordinary consumers can scan them to find out how far the item has travelled, how much carbon was emitted in its transportation, or even to check that the factory where it was made has an ethical working policy – for example, by banning child labour.

Such a bold move is bound to go down 72

well with socially and environmentally conscious consumers.

MORE THAN JUST TECHNOLOGY But to really impress consumers, busi-

These entirely new business models

nesses need to be aware of one po-

are highly attractive to a new genera-

tential problem with this technology-

tion of ethical consumers. IKEA has

led approach. If it isn’t combined with

recently introduced its product take-

meaningful changes in manufacturing

back scheme, enabling customers to

and the supply chain, it will only serve

hand back items for reuse when they

to expose a business’ shortcomings

buy a new product, ensuring that their

to consumers. While transparency

kitchen cupboards and bedframes

should be welcomed, it will require

don’t end up in landfill. US firm Rent the

retailers and manufacturers to sort

Runway enables people to rent out the

out their relationships with suppliers

latest fashion rather than buying it. This

and reduce inefficiencies and waste in

ties in with a general move away from

their supply chain.

ownership and towards the ‘sharing

SEPTEMBER 2019

‘ It’s becoming clear that companies are beginning to think of their supply chains in terms of the triple bottom line’

economy’ – not just for convenience, but for societal good.

73

There is only one crucial lesson for business leaders — understanding

Whatever the future holds for sup-

the impact your whole supply chain is

ply chains, it’s obvious that consumer

good business. Fixing supply chain is-

choices will increasingly dictate how

sues, providing as much transparency

businesses source their products

as possible and developing new sus-

and bring them to market. Rather than

tainable business models are all key

governmental or regulatory pressure,

factors. Only then will brands be able

the pressure is coming from consum-

to foster even greater trust and loyalty

ers and campaigners using social and

from their consumers.

traditional media to highlight the impact that our consumerist, throwaway lifestyle is having on the planet. w w w.c so ma ga z i n e. com

Greenest utility companies

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EI New Energy releases a yearly report counting down the top 100 green utility companies in the world.

We took a look at its 2018 report to find the top ten greenest utility companies, according to the number of points they were awarded out of 300 WRITTEN BY

SEPTEMBER 2019

SHANNON LEWIS

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T O P 10

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10

State Power Investment Corporation — SPIC

With a score of 159 points, State Power Investment Corporation is one of the five main power generation companies in mainland China.

Founded in 2003, it moved up in its rankings as a green company, from 11th place in 2017 to 10th in 2018. Although it’s based in Beijing, China, according to the company website, SPIC has operations that span over 35 countries including Japan, India, and South Africa. SPIC provides a range of alternate energy including nuclear power, thermal power, hydro power, solar power, and wind power. According to EI New Energy, SPIC has a total output capacity of 126.2 GW.

SEPTEMBER 2019

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09

United Arab Emirates Orsted

Orsted is a Danish utilities company that specialises in wind power, bioenergy, and thermal power. It was awarded a total of 162 points awarded by EI New Energy. With headquarters in Fredericia, Denmark, it has an output capacity of 5.9 GW. Founded in 2006, it has 6,080 employees, according to its company website. The wind power segment of the company has farms across several countries including Denmark, the UK, the Netherlands, Germany, Taiwan, and the United States. With a market capitsalisation of USD$31.4bn, it placed 486th on Forbes’ Global 2000 list in 2019.

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T O P 10

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08

China Energy Investment

With 163 points, China Energy Investment is a Chinese energy company that operates in eight sectors: coal, thermal power, hydropower, new energy, chemical industry, transportation, and environmental. Based in Beijing, China, it was officially established in 2017 as the result of a merger between Fortune 500 companies China Guodian Corporation and Shenhua Group. With an output capacity of 229 GW according to EI New Energy, its company website states that it has 350,000 employees. In 2018, it was ranked 101st place amongst the Fortune Global 500.

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T O P 10

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07

Energias de Portugal — EDP

With a score of 159 points, State Power Investment Corporation is one of the five main power generation companies in mainland China.

Founded in 2003, it moved up in its rankings as a green company, from 11th place in 2017 to 10th in 2018. Although it’s based in Beijing, China, according to the company website, SPIC has operations that span over 35 countries including Japan, India, and South Africa. SPIC provides a range of alternate energy including nuclear power, thermal power, hydro power, solar power, and wind power. According to EI New Energy, SPIC has a total output capacity of 126.2 GW.

SEPTEMBER 2019

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06

United Arab Emirates Invenergy

Invenergy is a Chicago-based utilities company that operates in four sectors: wind energy, solar energy, natural gas, and storage. With 175 points, it is up one place from its 2017 EI New Energy Ranking. The company website states Invenergy has 146 projects spanning across four continents. Currently, according to EI New Energy, it has an output capacity of 6.2 GW. Founded in 2001, it claimed the number 2 position in the US wind energy market, according to the American Wind Energy Association. According to its company website, the energy generated by the company could power 3,144,211 homes.

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T O P 10

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05

United Arab Emirates NextEra Energy

Founded in 1925, NextEra Energy currently employs 14,300 people.

EI New Energy allotted the company 185 points. Although it has fallen from 2nd place in 2017 to 5th in 2018, NextEra Energy has an output capacity of 45.7 GW and has USD$40bn in new infrastructure investments planned through to 2020. Based in Juno Beach, America, it is the world’s largest utilities company, providing alternate energies such as solar, nuclear, wind, and natural gas. Fortune rated it top 20 for innovation, while Forbes gave it 133rd place in its Best Employers for Women list in 2019.

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04

E.ON

Based in Essen, Germany, E.ON is an energy company that operates internationally, with operations spanning Romania, Hungary, the United Kingdom, Sweden, Poland, the Czech Republic, Denmark, Italy, and the United States. It was allotted 186 points by EI New Energy, bringing it up from 5th place in 2017, to 4th in 2018. With an output capacity of 8.3 GW, the company operates in four sectors: renewables, exploration and production, global commodities, and generation. With 21mn power and gas customers, E.ON has 852,000 kilometres of network, according to the company website.

SEPTEMBER 2019

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03

United Arab Emirates Iberdrola

With 191 points, Iberdrola generates 48.4 GW of energy, according to EI New Energy. Based in Bilbao, Spain, Iberdrola provides energy for approximately 100mn people across the world, including Spain, Mexico, the United States, and Brazil, according to Bloomberg. It placed 145th on Forbes’ Global 2000 2019 list. With 33,733 employees, Iberdrola has been operating since its foundation in 1901. In 2018, the Ethisphere Institute recognised Iberdrola as one of the world’s most ethical companies for the fifth year in a row.

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T O P 10

02

China General Nuclear - CGN

With headquarters in Shenzhen, China, China General Nuclear was awarded 191 points by EI New Energy. With an output capacity of 45.1 GW, CGN operates nuclear power plants across China, and it also present in the wind power, hydropower, and solar energy markets. Founded in 1994, CGN currently employs 39,000 people, making it the largest nuclear power operator in China and the largest nuclear power constructor in the world, according to the company website. On Forbes’ Global 2000 list 2019, CGN places 675th.

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01

Acciona

With an output capacity of 9 GW and 219 points, Acciona places first on our list for the top ten greenest utility companies. It held its first place on EI New Energy’s list from 2017. With headquarters in Alcobendas, Spain, the company’s operations reach 40 countries across 5 continents. Founded in 1916, the 90

company has 37,521 employees, according to Bloomberg. As producers of renewable energy, Acciona creates, builds, operates, and oversees the maintenance of wind, solar thermal, hydro, solar photovoltaic, and biomass plants. According to the company website, Acciona has been carbon neutral since 2016.

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EVENTS & A S S O C I AT I O N S

The biggest industry events and conferences EDITED BY LAURA MULLAN from around the world

2–3 SEPTEMBER

Sustainable Foods Summit Asia-Pacific [ BALI, INDONESIA ] Foods Summit is now in its third itera-

Offshore Wind Executive Summit

tion, this year with a focus on ethical

[ HOUSTON, TX, USA ]

sourcing and supply chain transparency.

Bringing together decision makers from

The event includes conference ses-

wind and offshore oil and gas, both from

sions on ingredients, packaging and

the US and Europe, the Offshore Wind

more. With sister events taking place in

Executive Summit looks at technology

Europe, Latin America and North Amer-

innovation, design, foundations, vessels,

ica, the organisers, Ecovia Intelligence,

cabling and workforce skills. The sum-

promise that the Bali event will be car-

mit provides the forum to establish new

bon neutral, with any impact measured

business relationships. Discussion

and offset. Globally, the summit has

points include project development,

been going since 2009, and Ecovia

important policy issues and supply

also provides research publications on

chain management.

The APAC edition of the Sustainable 92

9–10 SEPTEMBER

topics like cosmetics, textiles and sustainable packaging.

SEPTEMBER 2019

17–20 OCTOBER

IEEVChina 16–17 OCTOBER

[ BEIJING, CHINA ]

Ethical Corporation’s Sustainability Reporting and Communications Summit 2019

IEEVChina, or the International New

[ AMSTERDAM, NETHERLANDS ]

will include exhibitors covering topics

Join over 300 global CEOs, investors

such as intelligent transportation, inter-

and heads of business for this two-day

net and communications, AI and new

event to learn how businesses can pro-

energy. The event will operate across

mote greater transparency and shape

five indoor exhibition halls, 10 feature

the future of sustainability reporting

exhibition areas and one outdoor test

and communications. Speakers at this

driving experience area. Concurrent

year’s event include Frances Way, Chief

forums will also take place across

Strategy Office at CDP, Rasmus Skov,

China. This year’s event is hosted by

Head of Group Sustainability at Orsted,

the China Council for the Promotion

as well as Fiona Wild, Vice President,

of International Trade Machinery Sub-

Climate Change and Sustainability at

Council, the China Electrotechnical

BHP Billiton.

Society, Autoknow Magazine, Global

Energy and Intelligent Connected Vehicles Exhibition, dubs itself as the “largest professional event in Asia”. It

Auto Group and China Automotive Engineering Research Institute Co Ltd.

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EVENTS & A S S O C I AT I O N S

19–21 NOVEMBER

POWERGEN International exhibition & summit [ NEW ORLEANS, US ] With over 14,000 people attending last years’ event, POWERGEN International is a must-see summit for generators,

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12–14 NOVEMBER

utilities and solution-providers

BSR Conference 2019

engaged in power generation.

[ SAN JOSE, CA, USA ]

“The exhibit hall provides an interactive

This year marks the 27th annual BSR

experience personalised to connect

conference, one of the most prestigious

attendees with the latest technology

sustainability events in the business

and innovations in the conventional

calendar. The theme for this year’s event

and renewable markets from around

is ‘The New Climate for Business’. BSR

the world,” reads the event’s website.

speakers will include global leaders

“The summit and knowledge hubs

spanning business, sustainability and

deliver transformative content includ-

civil society. Last year’s event, saw

ing disruption from conventional and

speakers including Kate Brandt, Google

emerging, clean and sustained energy

Sustainability Officer at Google and

sources, niche technologies and the

Marie-Claire Daveu, Chief Sustainabil-

fluctuation of economics and policy.”

ity Officer and Head of International Institutional Affairs at Kering.

SEPTEMBER 2019

4–5 FEBRUARY

edie Sustainability Leaders Forum 2020 [ LONDON, UK ] The edie Sustainability Leaders Forum is set to host over 300 sustainability leaders from CEOs and sustainability directors to policymakers and NGOs. The forum includes global names like

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13-14 MAY

more. The event is organised by edie, a

All- Energy Exhibition Conference 2020

sustainable business media organisa-

[ GLASGOW, UK ]

tion which provides research and

Glasgow’s All-Energy Exhibition and

reports for sustainability professionals.

Conference strives to enable the UK

It also organises industry awards which

renewable low carbon energy commu-

recognises those who are “redefining

nity “to interact, conduct business,

what it means to be a sustainable, ethi-

network and learn, whether face-to-

cal and responsible business”. The

face or online”, according to the

awards include categories such as con-

organisers. Held annually in Scotland,

sultancy of the year, carbon reduction,

the event brings together a total audi-

energy efficiency, rising sustainability

ence of around 7,000 and promises to

star and sustainable supply chains.

be a must-attend conference for any

Unilever, Coca Cola, P&G, NG, AXA and

energy professional.

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TEYS AUSTRALIA: FEEDING PEOPLE, ENRICHING LIVES WRITTEN BY

DAN BRIGHTMORE PRODUCED BY

RYAN HALL

SEPTEMBER 2019

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TEYS AUSTRALIA

Teys Australia is ensuring the journey of meat from farm to fork considers environmental impact, promotes animal welfare and facilitates both high yields and superior quality

T

he Teys story began more than 70 years ago when four brothers opened their first butcher shop in Brisbane’s Woolloongabba.

Teys Australia is now an innovative Australian food business with home grown pride and global reach.

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Drawing on over seven decades of experience in the beef industry, its 4,700-string team focus their energy and expertise on delivering value to communities, customers and consumers.

Contributing more than $3.5bn to Australia’s national GDP, Teys support a further 13,000 jobs in rural and regional Australia. “Our business extends from the paddock to the plate,” confirms Carl Duncan, Group Manager - Resource Efficiency.

“We have a contemporary suite of innovative brands and products that resonate with global consumers, leveraging Australia’s reputation as a clean, green food producer. We’re a dynamic company with a global reach and teams in the US and key Asian markets to connect Australian producers with consumers.”

SEPTEMBER 2019

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TEYS AUSTRALIA

Teys Australia is applying cutting-edge technologies across the business to secure a sustainable beef supply chain.

“Our producer feedback is specifically tailored to assist cattle suppliers in improving their business,” explains Duncan. “From x-ray imaging to connecting producers and consumers through digital pathways, our future in this space is exciting. As we transition to a low carbon economy we continue to invest in energy, water and renewable energy projects such as our Low Emissions Energy Hub at Teys Wagga.

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This will be the first of its kind in the Australian red meat industry, if not the world. We will combine multiply renewable energy technologies in one location, tailored to match plant requirements.”

To this end, Teys has a pipeline of over 13MW in solar PV projects to deliver as it tracks towards its 2023 targets; these include fulfilling 30% of its energy needs via renewables.

This $42mn investment at Teys Wagga will see a combination of renewable energy technologies (such as solar, energy storage and bio energy plant with energy productivity) deployed SEPTEMBER 2019

CLICK TO WATCH : ‘SOLAR ENERGY PROJECT – TEYS AUSTRALIA – CONDAMINE FEEDLOT’ 101 E XE CU T I VE PRO FI LE

Carl Duncan Duncan started his career as an electrical technician working on industrial automation and controls in New Zealand. His eyes were opened to the world of energy and carbon management when he moved to Australia in 2004 and was inspired to re-train as an energy manager at Murdoch University. After landing a role with Australian’s leading energy and carbon consultancy, advising ASX200 company’s on resource efficiency, Duncan progressed to senior roles and then over to Teys as a Group Manager. A multi-skilled professional specialising in energy management, carbon abatement and renewable energy with a passion for driving better business performance, his core objective is to support Teys Australia’s business to become more profitable while improving environmental performance with a focus on sustainable food production. Duncan is also a member of the Australian Beef Sustainability Framework, Sustainability Steering Group (SSG).

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TEYS AUSTRALIA

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AUS$2.5bn Approximate revenue

1946

Year founded

4,700

Approximate number of employees SEPTEMBER 2019

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TEYS AUSTRALIA

CLICK TO WATCH : ‘BRINE & WASTEWATER MANAGEMENT INNOVATION - TEYS AUSTRALIA - MURGON’ 104

E X ECU T I VE P RO FI LE

Tom Maguire Brings over 25 years of experience in the meat processing industry to his role at Teys. He spent over a decade at the Australian Meat Industry Council where he was National Processing Director.

“Having come out of the industry for a while you see lots of difference views,” says Maguire. “Our educational efforts have much work to do in aligning views. You have to take the time to understand people’s perceptions in this area and consult with them.” Maguire also serves as director at AUS-MEAT Ltd and is Director of the Australian Meat Processors Corporation (AMPC) where he was elected to the board for a seventh term in December 2017.

SEPTEMBER 2019

to make the site energy sufficient - a first

Teys Australia has retained its strong

in the Australian red meat processing

founding family connections and it is

industry. “We’re really excited to progress

this rich heritage Duncan believes will

this initiative to not only change mindset

drive the company’s future. Vital to that

but prove it can be achieved,” says

future is a commitment to animal welfare.

Duncan

All of Teys Australia processing facilities

As one of the leading beef processors

operate under the Australian Livestock

and exporters in Australia, Teys is proud

Processing Industry Animal Welfare

partner to over 7,000 Aussie beef

Certification System (AAWCS). An

producers and some of the largest

independently certified animal welfare

names in fresh food retailing in the

program ensuring livestock under

country. In a joint venture with Cargill

its control (from receipt to humane

(offering a global reach with partners in

processing) are managed in accordance

the European Union, Japan and the USA)

with best practice standards.

E XE CU T I VE PRO FI LE

Amelia Simony Is an Environmental Manager with experience in the Food Production, and High-Risk Construction industries. Skilled in WHS and Environmental Risk Management and Compliance she has worked at Teys Australia for over five years on projects such as the successful delivery of a $24mn waste water treatment facility at Teys Rockhampton. Simony notes a strong culture for a high standard of compliance and continuous improvement at Teys “supported by routine inspections, reporting and comprehensive annual internal environmental audits” the scope of which includes all of the company’s activities and operations. Previously she worked as a Site Zero Harm Administrator for Downer Engineering Power – a contractor on multi-million-dollar government projects.

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Leaders in Industrial Refrigeration: Supporting Teys Australia Gordon Brothers Industries would like to announce our proud support for Teys Australia. We enjoy working closely with their team to transform processes and supply leading sustainable refrigeration solutions. Together, we will achieve their environmental vision as a world-class operation.

LEARN MORE

gordonbrothers.com.au 03 9389 6666 info@gordonbrothers.com.au

Danish-made biomass boilers, now in Australia.

www.justsenpacific.com Hot Water – Steam – Hot Air – Thermal Oil 1MW – 50MW

CLICK TO WATCH : ‘LOW EMISSIONS ENERGY HUB PROJECT - TEYS AUSTRALIA - WAGGA’ 107

“ Transferring our focus on resource efficiency to all parts of the business with projects such as our Low Emissions Energy Hub is an opportunity to change mind set and demonstrate what’s possible” — Tom Maguire, Chief Value Chain Office, Teys Australia

Allied to this is the emerging trend for customers caring more about ethical claims and beef processing operations, including consideration for environmental claims as well as animal welfare practices. “The perception of happy healthy cattle is becoming increasingly important to beef consumers,” confirms Duncan.

“Today’s consumer is very conscious about the provenance of their produce and want supply chain transparency.

In terms of sustainability we align with the key sustainability pillars of: People & Culture; Environmental Stewardship; w w w.c so ma ga z i n e. com

TEYS AUSTRALIA

Animal Welfare and Economic.”

Duncan explains the importance of these pillars and that, with a workforce of 4,700+, Teys understand long-term success will come from empowering its people. “We continue to promote employee career paths, choosing appropriate education and training pathways, and promoting from within.

The opportunities at Teys are extensive, with careers in livestock, operations and professional services,” he says.

Meanwhile, Teys acknowledges its 108

fundamental responsibility to manage impacts on agricultural communities through best practice environmental stewardship. “We employ ethical planning and management practices for the responsible use, and protection of natural resources whilst maintaining compliance with the legislative framework,” confirms Duncan who notes that in 2018 Teys committed to a public target to reduce carbon intensity by 20% and water intensity by 10%. Teys also support the red meat industry achieving carbon neutrality by 2030.

Teys has implemented an Environmental Management System based on the requirements of ISO14001 and, SEPTEMBER 2019

employs dedicated environmental resources at each of its processing facilities to manage environmental risks and opportunities. Group Environment Manager Amelia Simony highlights the major progress the company is making with environmental stewardship. “One of Teys’ greatest achievements is our investment into state-of-the-art water treatment facilities at all of our large meat processing facilities that not only improve the quality of water for the receiving environment but also significantly reduce greenhouse gas emissions,” she reveals. “Biogas, captured as a by-product of anaerobic water treatment, is captured and then utilised as a renewable energy source alternative to conventional fossil fuels.”

Teys commitment to reduce water intensity by 10% by 2023 will see a number of water efficiency projects rolled out across the group such as water efficient nozzles and high pressure, low flow cleaning systems.

Along with its commitment to animal welfare, the fourth Teys pillar recognises that though Australia is one of the world’s largest and most efficient w w w.c so ma ga z i n e. com

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Australia’s Largest DIVERSified Energy Services Specialists UNIfied is Australia’s leading provider of commercial LED, Solar and Energy Management solutions.

Our expertise assists businesses to take control of their energy spend and increase their sustainability credentials. UNIfied congratulates Teys Australia on their ongoing commitment towards a sustainable future!

LEARN MORE

Energy Services

exporters of beef products (the red

CONTACT US

Chief Value Chain Officer Tom Maguire

meat and livestock industry accounts

highlights the importance of sustainabil-

for approximately 1.6% of Australia’s

ity for Teys and the industry in general…

GDP) farmer profits tend to be low,

“It makes good business sense,” he

affecting their ability to withstand

says. “However, it becomes a social

unexpected shocks such as drought.

licence issue when in fact if we communi-

Economic focus at Teys Australia sees

cate better we can drive purchasing

the company support the approach

decisions in a high valve market.”

to value-based marketing (VBM) - pay-

Building a focus consistent with the

ment on the basis of actual beef

Australian Beef Sustainability Frame-

carcase weight and quality. “Teys’

work (ABSF) is vital to Teys as there

approach to economic reliance is

is a very strong focus on animal welfare

to leverage technology so that

which is important to consumers and

producers can gain better insights

engagement with the supply base.

and be rewarded for producing better

In 2019 Teys will commit over $5mn

quality beef,” adds Duncan.

to energy and war projects. “Effort

SEPTEMBER 2019

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around energy, water and GHG emissions makes good business sense as they are becoming more expensive over time,” explains Maguire.

“Transferring our focus on resource efficiency to all parts of the business with projects such as our Low Emissions Energy Hub is an opportunity to change mind set and demonstrate what’s possible.”

“ Our business extends from the paddock to the plate” — Carl Duncan, Group Manager – Resource Efficiency, Teys Australia

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TEYS AUSTRALIA

C O M PA N Y FACT S

• The Queensland’s Premiers Award for Sustainability • Climate Change Leaders (SA) Runner Up • L argest investment in renewables within the red meat processing sector • F irst to develop and implement a carbon intensity target in the Australian processing sector 112

• P ioneering Value Based Marketing (VBM) initiative

“One of Teys’ greatest achievements is our investment into state-of-the-art water treatment facilities at all of our large meat processing facilities that not only improve the quality of water for the receiving environment but also significantly reduce greenhouse gas emissions” — Amelia Simony, Group Environment Manager, Teys Australia SEPTEMBER 2019

113

Over the past two decades,

the industry is proactive,” assures

total global consumption of beef

Duncan. “Key initiatives such as the

has increased by 1% per year. In 2017,

Australian Beef Sustainability Frame-

beef accounted for 21% of total global

work are helping to meet the changing

meat consumption. Global demand

expectations of consumers, custom-

for red meat is forecast to increase

ers, investors and other stakeholders,

1-2% per year with increasing global

and promote the longevity and

populations and growing incomes,

prosperity of the industry.”

especially in Asia. Overall Teys expect the global demand for beef will double by 2050 which could lead to protein deficit and distribution problems.

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HOW SIMEC ENERGY AUSTRALIA IS MAKING UTILITY SCALE RENEWABLE ENERGY A VIABLE CHOICE FOR AUSTRALIAN BUSINESSES WRITTEN BY

HARRY MENEAR PRODUCED BY

RYAN HALL

SEPTEMBER 2019

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SIMEC ENERGY AUSTRALIA

Marc Barrington, CEO of SIMEC Energy Australia, shares his insight into the changing face of the nation’s energy sector, the rising tide of customer centricity and the firm’s new battery and solar farm projects

I

n Australia, the energy industry is rapidly turning towards greener, more sustainable energy supply solutions, particularly

with regard to one of the country’s most abundant resources: the sun. As of March 2019, more than 2mn solar photovoltaic (PV) installations with 116

a combined capacity in excess of 12GW, were operational across the country. This is all as a result of a changing world. Climate change, potentially the greatest existential threat humanity has faced, is emerging as the defining crisis of our time.

The world needs to change or face radical consequences. “All facets of society are aware of climate change, with the majority accepting that humankind has played its part in bringing about global warming. The energy sector globally remains a large emitter of greenhouse gasses and everyone from investors to consumers of energy are aware of this. At the same time, energy prices have continued to rise, to a large extent driven by the ageing nature of Australia’s in-situ thermal generation plants,” explains Marc Barrington, CEO of SIMEC Energy Australia.

SEPTEMBER 2019

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SIMEC ENERGY AUSTRALIA

“ One thing that always surprises me in business is, no matter how small a company is, silos always seem to exist” — Marc Barrington, CEO, Simec Energy Australia

“Operating a sustainable energy company like SIMEC Energy Australia means we can present solutions to many of these issues by enabling the transition from older – and sometimes less reliable – fossil fuel technologies to clean renewable generation, constructing renewable energy portfolios that deliver lower costs for consumers and finally delivering an environmental outcome for society.” Since 2004, SIMEC Energy Australia (originally ZEN Energy) operated out of Tonsley in South Australia, providing solar PV

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and storage offerings to residential and commercial customers across the region. Post-Sanjeev Gupta’s majority stake in the business in late 2017, SIMEC Energy expanded into commercial and industrial energy supply nationally with offices in South

SEPTEMBER 2019

CLICK TO WATCH : ‘GFG ALLIANCE - CULTANA SOLAR FARM PROJECT’ 119 Australia, Melbourne and Sydney.

to better respond to the challenges

Barrington has served as CEO since

of a changing landscape. “One thing

July 2018 and brings the better part

that always surprises me in business

of two decades’ experience in the

is, no matter how small a company is,

energy sector to the role. Barrington

silos always seem to exist,” he notes.

shares his insight into the changing

“In the past twelve months, we have

face of the nation’s energy sector,

been able to build a more collaborative

the rising tide of customer centricity

and inclusive culture internally,

and the firm’s new battery and solar

which I believe has delivered – and

farm projects.

will continue to deliver – real results

As the leader of an agile, challengerscale renewable energy provider and

for the business, our people and most importantly our customers.”

retailer, Barrington has spent the last year working to improve SIMEC

A NEW DIRECTION FOR THE MARKET

Energy’s ’s internal operations in order

The company’s customers, Barrington w w w.c so ma ga z i n e. com

Data at the heart Analytics Pathway

Data Science

Decision Intelligence @ Scale

“Ignite’s professional, open, pragmatic and business centred approach has been invaluable to Ballance as we establish and embed our Data Science capability.”

Chief Digital Officer, Ballance NZ

Contact Us

The Ignite way: making data the hero Data is at the heart of everything, so why is it so hard to articulate its value? Why do digital transformations focus on collecting more of it, rather than using it more? And why do we try to categorise data into marketing driven terms such as big data, machine learning, deep learning and artificial intelligence rather than focus on the potential they can unlock?

Data is indeed at the heart of everything, but its value lies in how it is used. Like past technology evolutions, investing in great technology tools is necessary but not sufficient. Rather it is about embracing a culture that focuses on the intrinsic value of data to improve the organisations and society around us. That’s a feat few are achieving.

Last year, MIT CISR surveyed 315 executives to understand how companies generated economic returns from data activities.

• 60% rated their company as average, or below, at using data to create operational efficiencies.

• 62% believed their firm was average, below average or unable to integrate analytics into products and experiences.

• 40% said they weren’t even looking at, let alone capable of, generating revenues from selling information solutions.

Many organisations are clearly still struggling to unlock value from their data, and it’s this challenge that motivates us at Ignite. Lessons we have learnt have taught us to take a pragmatic, business-centred approach to data.

We want to make data the hero and put it at the core of solving problems. The focus is on finding repeatable value and then unlocking it perpetually by implementing decision intelligence at scale.

That’s how we have built our relationship with SIMEC Energy Australia. For utilities, the issue isn’t convincing anyone of data’s value, it’s proving how to extract it.

Leveraging Databricks for machine learning on a Microsoft Azure platform has given SIMEC a powerful solution.

As the organisation has grown, we’ve invested together to augment this capability. Though AEMO and market

changes mean many utilities have had to rethink and reinvest in their data platforms, SIMEC are well positioned for the future; poised for data from the Playford Battery, able to adapt to the changing data landscape 5-minute settlements will bring, and able to provide customers the ability to interpret their own data using SIMEC provisioned insights. Using data to improve the communities we live in is at the heart of the partnership investments we make with SIMEC.

“In partnership with Ignite, we have successfully implemented a number of data-intensive and complex initiatives that have had a very positive impact on SIMEC’s growth.”

GM Retail Operations, SIMEC Energy Australia

The Ignite way is simple: understand and communicate data science in terms of business application and value.

To determine the size of the prize, we work with your experts to discover how data can streamline day-to-day decisions, improve products and experiences or create revenue streams. This focused collaboration allows us to generate excitement around data and data science techniques early.

The analytics pathway assesses the feasibility and impact, creating a genuine path to embedding the outcome. It also gives sponsors confidence that time and money are not being wasted “just experimenting” whilst allowing for the exploratory nature of data science.

Our relationships reflect our commitment to improve data literacy across the community. As industry mentors with Monash University we help nurture the analysts of tomorrow. By partnering with us, clients know we’ll be doing everything we can to upskill their own talent.

For us, a future with amazing analytics platforms, operated and developed by even more amazing people, is one worth pursuing.

Learn More w w w.c so ma ga z i n e. com

SIMEC ENERGY AUSTRALIA

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C O M PA N Y FA C T S

SIMEC’s Majority Investor: The GFG Alliance • SIMEC Energy Australia is a part of the GFG Alliance, and has built an energy offering for GFG and their steel manufacturing interests that enables them to access real value • GFG Alliance is an international grouping of businesses, founded by the British Gupta Family

SEPTEMBER 2019

The Alliance’s integrated business model encompasses mining, energy generation, metals and engineering, underpinned by industryfriendly financial services, a substantial property portfolio • Sanjeev Gupta serves as SIMEC Energy Australia’s chairman

“ Our customers are better informed as to the way in which they use energy now, than they ever have been historically” — Marc Barrington, CEO, Simec Energy Australia

Marc Barrington

explains, are set to be a major driving force in the energy sector over the next decade. “Our customers are better informed as to the way in which they use energy now than they ever have been historically,” he says, chalking up increased customer savviness to rising energy costs. Barrington’s experience in the space means he sees this trend as one among many that constantly buffet and buoy the industry. “Whether

E XE CU T I VE PRO FI LE E XE CU T I VE PRO FI LE

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Marc joined SIMEC Energy Australia as CEO in July 2018, working with a strong team of executives aiming to deliver compelling solutions for commercial and industrial consumers of energy, including the requirements of the Liberty/GFG Group. He is an experienced executive with significant exposure to Australia’s energy markets. Prior to joining SIMEC Energy, Marc was Head of Sales, Asia Pacific at wind turbine OEM, Senvion, prior to this, he held senior positions at AGL Energy including General Manager Energy Services, Head of Eco-Markets and Senior Energy Trader. Marc commenced his career at NM Rothschild and Sons trading precious metals, working in both Sydney and London and then moved to a Geneva headquartered trading house, focusing on metals, foreign exchange and associated derivatives. Marc has undertaken Senior Leadership studies with Melbourne Business School and is a Graduate of the Australian Institute of Company Directors.

He has held numerous Board and committee roles including NonExecutive board member for the Australian Alliance to Save Energy as well as participating in many community-based volunteer programs such as the I-Track Mentor with The Smith Family. w w w.c so ma ga z i n e. com

SIMEC ENERGY AUSTRALIA

it’s changing market structures, such as we have witnessed with the disaggregation of the market and the advent of vertical integration; the change in technology and operational efficiencies; the regulatory landscape or even the changing needs of customers and the rise of the ‘prosumer’ – the energy sector has seen it all.”

Certain that SIMEC Energy’s utilityscale renewable offerings are the future of the country’s energy market, Barrington’s generation supply 124

priorities for the company are currently centered around two major projects: the Playford Utility Battery and the Cultana Solar Farm. “Utility-scale renewable energy can deliver prices that are substantially more competitive than the prices of new-entrant thermal generation. When delivered well and structured into an innovative retail energy portfolio, these assets can deliver real savings for customers – particularly when integrated into an active demand-side response programme.

Having access to in-house built renewable generation, coupled with the means to firm it, is the foundation of our strategy for our Company,” he explains.

SEPTEMBER 2019

On the retail front, Barrington made clear that he is keenly focused on delivering globally competitive energy to customers and securing ‘win-win’ outcomes through innovative solutions like demand management. “Our customers need energy solutions that allow them to compete both domestically and internationally. I think that we have the operational capability to meet this need,” he said.

PLAYFORD UTILITY BATTERY A utility-scale battery development that will support SIMEC Energy’s renewable energy portfolio and provide services to the national electricity grid, the Playford project will provide direct and indirect employment opportunities in Port Augusta and surrounding areas, as well as assisting in the transformation of the Whyalla Steelworks by enabling the supply of cheaper and cleaner energy. “We have undertaken substantial amounts of work to ensure the use cases for the battery, which will be a world first, deliver value to our portfolio and more importantly to our customers in South Australia,” says Barrington. w w w.c so ma ga z i n e. com

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SIMEC ENERGY AUSTRALIA

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SEPTEMBER 2019

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AUS$250mn Approximate revenue

2015

Year founded

50

Approximate number of employees

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SIMEC ENERGY AUSTRALIA

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SEPTEMBER 2019

The project, he enthuses, is an industry-leading example of Australian ingenuity harnessing the latest technologies with marke-specific use cases, in order to create long-term value.

“The Playford Utility Battery algorithm that we have developed with experts in this field – all of whom are Australian I am proud to say – utilises artificial intelligence (AI), machine learning (ML), big data analytics and Internet of Things (IoT) technology,” he explains.

“Should we be able to take this project to financial close, we will demonstrate for the first time the power of battery storage in managing the variability f renewable generation and deliver long term price improvements for end-use customers in the region.”

CULTANA SOLAR FARM With construction scheduled to begin imminently on land just north of the Whyalla Steelworks, the Cultana Solar Farm is a 280MW capacity solar PV facility that will contribute to the national electricity grid via the existing Cultana substation. The project is a key component – coupled with its retail objectives – of the firm’s desire to reshape the w w w.c so ma ga z i n e. com

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SIMEC ENERGY AUSTRALIA

Australian energy market by providing utility scale renewable energy at rates that are competitive to current thermal alternatives, and therefore a critical priority. “Given that we are in the final stages of taking Cultana Solar Farm to financial close, I am focusing heavily on planning for the safe delivery of the project with our staff and partners,” confirms Barrington. “We have developed the farm in consultation with the local community and expect that construction will commence before 130

the end of the year.”

Looking to the future, Barrington is confident that both SIMEC Energy Australia and the market as a whole are on the right side of history.

At any time, I ensure my team can

“ Utility-scale renewable energy can deliver prices that are substantially more competitive than the prices of new-entrant thermal generation” — Marc Barrington, CEO, Simec Energy Australia

SEPTEMBER 2019

devote efforts to looking at a point just beyond the horizon, whether it’s products, systems or trading strategies. I use this approach, as it delivers an anticipatory culture that makes for a very exciting working environment,” he enthuses. In addition to completing its major projects, SIMEC Energy is working on reinvigorating its presence in the commercial and residential solar

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PV and battery storage market,

to see industry in our country grow

as well as expanding its energy

sustainably, what a great challenge

product portfolio. Sustainability,

to have,” he concludes.

of course, will remain at the heart of everything that the company does.

Reshaping the country’s energy industry is, Barrington admits, an ambitious goal. “It’s not without challenges, but as a father, a husband, an employer and someone who wants w w w.c so ma ga z i n e. com

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ACHIEVING LONG-TERM SUSTAINABILITY GOALS AT RESILIENT MELBOURNE AND THE FUTURE BUSINESS COUNCIL WRITTEN BY

SEAN GALEA-PACE PRODUCED BY

RYAN HALL

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RESILIENT MELBOURNE

TOBY KENT, MELBOURNE’S CHIEF RESILIENCE OFFICER AND CHAIR OF FUTURE BUSINESS COUNCIL, DISCUSSES THE IMPORTANCE OF DRIVING CHANGE AND REALISING SUSTAINABILITY THROUGH COLLABORATION

H

arbouring an ambition to achieve long-term sustainability, Toby Kent, Chief Resilience Officer of Resilient Melbourne, is committed

to driving change. In addition to his role at Resilient Melbourne, Kent is also Chair of the Future Business Council, a membership organisation that 134

exists to advance the interests of future looking sustainability-oriented businesses. He stresses that in both roles, his position is fundamentally about supporting teams to make connections and helping to break down traditional barriers as well as fostering new, deeper forms of collaboration.

Resilient Melbourne was initially instigated by a grant from the Rockefeller Foundation under its 100 Resilient Cities (100RC) initiative. 100RC helps cities worldwide to meet the physical, social and economic challenges that are influencing the 21st century. Melbourne was selected from 372 applicant cities worldwide to become one of the first 32 cities to join the 100 resilient cities network.

With metropolitan Melbourne consisting of 32 local government authorities comprised of more than 10,000 sq km in the area around Port Phillip SEPTEMBER 2019

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Toby Kent, Chief Resilience Officer, Resilient Melbourne

S TAT S

• Resilient Melbourne is made up of approximately 30 councils, with additional support from the Victorian Government and many public and private organisations. • Future Business Council represents over 150 businesses, from start-ups to major corporations, across Australia.

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RESILIENT MELBOURNE

“ RESILIENT MELBOURNE HAS FOUR INTERDEPENDENT, LONG-TERM OBJECTIVES, WHICH AT THEIR HIGHEST LEVEL SEE OUR METROPOLITAN COMMUNITIES AIMING TO BE STRONGER TOGETHER, HAVE SHARED PLACES, A DYNAMIC ECONOMY AND A HEALTHIER ENVIRONMENT” 136

— Toby Kent, Chief Resilience Officer, Resilient Melbourne Chair, Future Business Council

Bay, Kent and the Resilient Melbourne team led the creation of the city’s first ever resilience strategy. This involved working in partnership with over 1,000 representatives from more than 230 organisations and agencies. The strategy provides an alternative way to address chronic stresses that impact the city, such as rapid growth and congestion and to be better prepared to deal with acute shocks, such as extreme heat, fire and floods. “Resilient Melbourne has four interdependent, long-term objectives, which at their highest level see our metropolitan communities aiming to be stronger together, have shared places, a dynamic economy and a healthier environment,” explains Kent.

Resilient Melbourne has most recently released Living Melbourne: our metropolitan urban forest, which aims to improve liveability and enhance the health of the city. There are many advantages to the urban forest, according to Kent. Importantly, he says, it is a way to tackle unpleasant impacts of climate change and other stresses, presented in a way that excites people, rather than scaring them, which halts action. “Substantively, the urban forest helps to cool

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CLICK TO WATCH : ‘RESILIENT MELBOURNE’ 137 the city, particularly in times of extreme

access to green space they are more

heat. It uses vegetation to slow water

inclined to take active exercise.

run-off, as well as reducing flooding

Kent’s work with the Future Business

through absorption.” Working with

Council shifts a focus from a single

partners; The Nature Conservancy,

city to a broader Australian context.

Digital Globe and Trimble, Resilient

FBC works with businesses and their

Melbourne has mapped Melbourne’s

partners across Australia to identify

vegetation. “There is a clear correlation

and support organisations that are

between affluence and access to

forward-looking and have sustainability

green, vegetated spaces,” Kent says.

built into the way they do business.

“There are important social equity

Through its ‘2018 Next Boom’ report,

aspects to this work.” Greening the

FBC highlights that key opportunities

city has further positives, including

for the Australian economy include:

that seeing nature has proven mental

positioning ‘brand Australia’ to be

health benefits, and when people have

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RESILIENT MELBOURNE

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Deputy CRO, Maree Grenfell, launches Living Melbourne

green economy; expediting the transition to a low-carbon Australia, incorporating infrastructure and the uptake of electric vehicles; as well as promoting innovation more broadly across a range of goods and services Australia does well, particularly around agriculture and finance.

With a drive to ensure Melbourne becomes ever-more resilient and that Australia seizes the opportunity of ‘the next boom’, Kent believes technology is a critical component to cities’ and SEPTEMBER 2019

“ THE URBAN FOREST HELPS TO COOL THE CITY, PARTICULARLY IN TIMES OF EXTREME HEAT, IT USES VEGETATION TO SLOW WATER RUN-OFF, AS WELL AS REDUCING FLOODING THROUGH ABSORPTION” — Toby Kent, Chief Resilience Officer, Resilient Melbourne Chair, Future Business Council

businesses’ strategies. “In Melbourne,

start at a human level.” With that in

the overall plan is to make our city

mind, Kent reflects on how he marries

more resilient through innovation

both his city work and his FBC lives

around systems, and continuously

together. “Companies of all sizes talk

questioning how we do things,” he

about the need to understand their

explains. “I believe technology can

customers, and the necessity of being

be an enabler of that. However, the

customer-centric. One of the things

starting point has to be people; they

I love about my urban work is that as part

are at the heart of all cities, which is

of their communities, local governments

why it’s so critical that your solutions

profoundly understand their customers.”

E XE CU T I VE PRO FI LE

Toby Kent Toby Kent is the Chief Resilience Officer for Melbourne.

Separately, he is Chair of the Future Business Council. Kent has created and implemented resilience and sustainability strategies across a range of sectors. Since the late 1990s he has worked with governments, communities, industry sectors, and many other stakeholders on five continents Various achievements include: supporting the growth of Corporate Citizenship, one of the UK’s preeminent specialist Sustainability consultancies; leading PricewaterhouseCoopers’ Sustainability work with retail and consumer goods companies in the UK; and running PwC’s Sustainability & Climate Change team in Hong KongPrior to leading Resilient Melbourne, Kent worked with leading Melbourne businesses, including MMG mining corporation and ANZ bank, where he was Head of Sustainable Development.

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RESILIENT MELBOURNE

We want everyone to thrive in a digital world.

In an increasingly inter-connected world, digital technology is helping society respond to issues in a more agile and scalable way.

Download our Bigger Picture Sustainability Report here

International CROs explore the role of biodiversity in building urban resilience 141 On the importance of implementing

about asking the right questions and

the right technology and not simply

being open to not knowing the answers.

embracing new innovations for the

At Resilient Melbourne, we worked

sake of it, Kent highlights how his

with a firm Citymart to ask the market

organisations welcome change

and citizens more broadly: ‘How can

without fear of failure. “Part of the way

Melbourne address the twin stresses

we innovate is to be unafraid to trial

of increasing transport congestion

new things, and being willing to fail

and decreasing social connection?’”

fast,” he says. “While we always need

Kent and his team created a panel

to do our due diligence, we’re seeing

of innovation experts, transport and

even the biggest companies becoming

infrastructure professionals, rand city

increasingly comfortable with generating

government. “By asking people how to

the minimum viable product and iterating

solve the challenge rather than telling

off the back of real user experiences.”

them the solution, we identified some

“Perhaps even more importantly is

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RESILIENT MELBOURNE

this allowed some start-ups that would otherwise have struggled to get past traditional procurement approaches to out-compete some major multinational corporations. It served us well.”

Collaboration is critical to addressing existing and future challenges. The world is too complex and fast-paced for single entities to deliver all the solutions. “We have a way to go, but we’re getting better at working across government, business and academia here in Australia,” he explains. Kent points to the relationship between 142

Monash Business School and FBC and believes that collaboration has been important. “Our respective networks help us to draw out profound insights. Perhaps the greatest indicator of the depth of the relationship is that FBC recently appointed last year’s Monash-FBC MBA scholar, Suzanne Paynter, as its new interim CEO.” Similarly, Resilient Melbourne works with many universities, but its relationship with the University of Melbourne’s, City of Melbourne Chair in Resilient Cities, a co-funded position, has delivered particular value to Melbourne’s work on resilience.

Beyond that, Kent highlights impressive SEPTEMBER 2019

work between RMIT, Swinburne Centre for Social Impact and Telstra. “Over the last four years, these partners have produced the Australian Digital Inclusion Index and it’s encouraging because they’re enabling a profound level of understanding of societal vulnerability and needs in a very fastmoving space. We’re becoming more digitally inclusive, and it’s fundamental that we do, because the gap between those most included and benefiting from digital technologies and those who aren’t is growing significantly, in addition to the consequences as an increasing number of services go online.”

Suzanne Paynter, interim CEO Future Business Council

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“ PART OF THE WAY WE INNOVATE IS TO BE UNAFRAID TO TRIAL NEW THINGS, AND BEING WILLING TO FAIL FAST” — Toby Kent, Chief Resilience Officer, Resilient Melbourne Chair, Future Business Council

Considering the future, Kent highlights the importance of focus and growth for both Resilient Melbourne and FBC over the next few years. “Resilient Melbourne must continue demonstrating its value at a state, council and grassroots level in order to show that we’re helping to reduce the chronic stresses that could potentially pick away at the fabric of society and may become the shocks of the future,” affirms Kent. “We must be able to show how we’ve played a role in decreasing

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145

the impact of those shocks and helping

Foundation, Australian Ethical and

people to not just bounce back from

early supporters, such as Bank

the horrors of what they might have

Australia with its clean money

experienced, but to move forward.”

campaign, have to quickly move to

“In terms of the FBC, it’s essential

underpinning our economy. It’s not

that we show our members that

too much of a stretch to say that our

they have a stronger voice together.

future depends on it.”

With so many of our members currently occupying niche positions in our economy, we must ensure they become mainstays — the backbones.

Business models like those of FBC members the Australian Energy w w w.c so ma ga z i n e. com

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GROWTH THROUGH SUSTAINABILITY TRANSFORMATION WRITTEN BY

MARCUS LAWRENCE PRODUCED BY

NATHAN HOLMES

SEPTEMBER 2019

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SOORTY ENTERPRISES

SOORTY ENTERPRISES IS CONDUCTING AN ARRAY OF INNOVATIVE SUSTAINABILITY STRATEGIES AND TECHNOLOGIES, ALONG WITH A ROBUST CSR PROGRAMME, TO ESTABLISH ITSELF AS THE LEADING SUSTAINABLE DENIM MANUFACTURER

T

he denim industry is a notoriously inefficient user of natural resources, but few are more aware, concerned or proactive

about this fact than Soorty Enterprises. While its global operations span Bangladesh, Turkey, the Netherlands and the US, the firm’s deepest roots 148

remain in its home country of Pakistan, a region being disproportionately impacted by climate change relative to its emissions. In 2015, a heatwave in Karachi claimed 2,000 lives and Asad Soorty, Director of Operations at the company, laments that such disasters will only become more frequent. “This coastal city, once with pleasant temperatures and a nice sea breeze, is almost perpetually parched,” he says. “About 60% of the country’s population is food insecure, and almost 45% of kids are experiencing stunted growth. All of this is now; and we haven’t yet moved into the era where Pakistan will be the eighth most climate change-affected country.” He stresses, however, that this exposure to the realities of climate change has not focused the company’s sustainability ambitions on Pakistan, alone. “This is a prime example of a country that SEPTEMBER 2019

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needs to utilise its arable land more effectively: rather than growing cotton,

150

of industrial wastewater, globally.

Soorty’s efforts to curb its environ-

we should be growing food crops. We

mental impact represent some of the

want to be a part of this change, and

most practical and innovative strate-

we are working hard to disrupt the

gies in the industry, and they are driven

industry. But we don’t see it as a Paki-

by adherence to William McDonough

stan-centric issue. Climate change isn’t

and Dr Michael Braungart’s interna-

a problem bound by borders; unfortu-

tionally-recognised Cradle to Cradle

nately, its solutions are.” He adds that,

(C2C) standards. “We want to have

as a textile company, Soorty stands to

a symbiotic relationship with the en-

make a significant impact: the textiles

vironment,” explains Mr Soorty. “We

industry, by some estimates, produces

think that the C2C design philosophy is

more CO2 than the aeronautical and

the way to go for the entire fashion sec-

maritime industries combined, as well

tor, and it’s a philosophy we subscribe

as being responsible for around 20%

to wholeheartedly.” C2C product certi-

Laser Technology for jeans dry processing is now a commodity in Soorty Enterprises SEPTEMBER 2019

CLICK TO WATCH : ‘THE SOORTY REVOLUTION’ 151 fication is awarded to products follow-

wards fully sustainable solutions: “We

ing a rigorous assessment procedure

have adopted the Tonello UP denim

across five sustainability categories:

washing technology, enabling us to

material health, material reuse, renew-

process the garments with a liquor

able energy and carbon management,

ratio of 1:2 and thereby process 1kg

water stewardship, and social fairness.

of fabric using just two litres of water.

Soorty’s proprietary Zero Waste Water

In the conventional process, the ratio

dyeing process has been used in a

is as high as 1:8, so we have reduced

range of denim fabrics that have been

water usage in this process by 75%.”

certified Gold against these metrics.

The company is also using nebuliser

The complexities of the next-gen solu-

technology that dyes the garments

tions are explained by Sarfraz Cheema,

through a water-chemical cloud, itself

Head of Sustainability of the garment

saving 95% of the water used con-

division, who is responsible for driving

ventionally. The bleaching process is

Soorty’s manufacturing processes to-

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SOORTY ENTERPRISES

“ WE EXIST ON MANY PARTS OF THE VALUE CHAIN, HELPING OUR CUSTOMERS TO IDENTIFY THE LATEST FASHION TRENDS AND THE WHITE SPACES IN THEIR MERCHANDISE OFFERINGS” — Asad Soorty, Director of Operations, Soorty Enterprises

152

no water at all, Cheema explains. “To bleach, mercerise and decolour the garments, we use ozone, which is a very aggressive gas,” he says. “Ozone makes it possible to complete these processes without any chemicals or water. It is reduced to Oxygen after being used.” Any wastewater is collected and treated at the company’s Effluent Treatment and part of it goes through the reverse osmosis plants for reuse in the manufacturing cycle. Soorty has its own jeans recycling facility, where it collects leftover denims and SEPTEMBER 2019

6.5mn

metres of fabric capacity per month

1983

Year founded

1,830

tons of yarn capacity per month

creates recycled cotton from it. This

Corporate Communications and CSR

is blended with virgin cotton to mini-

for Social Sustainability and Communi-

mise the need for fresh cotton to be

ty Relations, replies, “I think it depends

grown and processed.

what you mean by ‘success’ – we don’t

Along with its work towards sustain-

view our CSR as separate from the

able manufacturing, Soorty is also

business, because it isn’t. If we don’t

engaged in myriad corporate social re-

exist to have a positive effect on so-

sponsibility (CSR) projects as a means

ciety, there will be no society for us to

to benefit society, alongside mitigating

exist in. If we can do that then yes, we

its environmental impact. When asked

will be successful.” Whatever your defi-

about the company’s successes in this

nition of success, it cannot be denied

area, Mobeen Chughtai, Manager of

that Soorty has conducted a series of

E XE CU T I VE PRO FI LE

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Asad Soorty A graduate of the Haas School of Business at UC Berkeley, is an Director at Soorty Enterprises. Asad worked in consulting for a short period of time before realizing that his interests lay elsewhere. He joined his family company in 2015 with a vision to create succession, and thus sustain the company’s inclusive growth. Asad began with a six-month training program where he rotated between the different departments and divisions of the company. This was followed by a six-month stint as Manager Process Excellence at one of Soorty’s production units. These grassroots perspectives, coupled with his strong academic background, have allowed him to settle well into the company and begin taking charge. In his free time, Asad enjoys playing football and volunteering. His passion for volunteering has led him to the Robin Hood Army, where he is an active volunteer and member of the core team of the Pakistan chapter.

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THE ERA OF CONVENTIONAL STONE-WASH IS OVER TAB WASH IS THE FUTURE OF JEANS WASH Proud partner of Soorty for the Chemical Innovations

impactful CSR programmes and initia-

year, we launched a unique project

tives across Pakistan, including those

in Pakistan: the Soorty Enhancing

in education, health and social welfare,

Women Service (SEWS) project. It will

but its CSR program is evolving be-

enable and encourage the employ-

yond conventional interventions. “In the

ability and empowerment of women

last few months, we have focused our

from low-income backgrounds – the

efforts on two primary issues: mitigat-

first such UN SDG-compliant, multi-

ing climate change and empowering

partner venture launched by a for-profit

women,” continues Chughtai. “Female

entity in Pakistan, to help underprivi-

empowerment is of special signifi-

leged families.” Chughtai stresses

cance in the developing world, where

that climate change, however, is the

women find it much harder to secure

core existential crisis of our times,

their God-given rights or access to

and Soorty is leveraging innovative

basic services, such as healthcare,

technologies outside of its manufactur-

education and justice. In August of this

ing processes to address the chal-

SEPTEMBER 2019

“ WE DON’T VIEW OUR CSR AS SEPARATE FROM THE BUSINESS, BECAUSE IT ISN’T. IF WE DON’T EXIST TO HAVE A POSITIVE EFFECT ON SOCIETY, THERE WILL BE NO SOCIETY FOR US TO EXIST IN” — Mobeen Chughtai, Manager of Corporate Communications and Corporate Social Responsibility, Soorty Enterprises

Ozone Gas is being used to replace conventional bleaching, saving lots of water

E XE CU T I VE PRO FI LE

Sarfraz Cheema As the Chief Operating Officer at Soorty Enterprises, Sarfraz Cheema oversees the production of over a million garments per month. He also serves as the Head of Sustainability for the garments division and strives hard to reduce the overall carbon foot print and set bench marks for the rest of the industry to follow. Sarfraz has been a part of Soorty Enterprises since 2005. Being a chemical engineer, by training gives him an edge in understanding fast moving fashion and the associated wet garment processing. He is considered a pioneering expert in the field, having spent over two decades in the Textiles sector.

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SOORTY ENTERPRISES

lenge head-on. “We are in Phase 2 of our Forest Rescue Initiative, designed to reclaim arable land from the Thar desert,” says Chughtai. “For our tree planting strategy, we have partnered with Forests4All, a plantation network from the Netherlands, along with Danish botanical innovator Groasis to use its patented Waterboxx® technology.”

Waterboxx® circumvents the difficulties of limited rainfall and a deep water table by passively watering saplings over the course of a year. “In the two or three months required for a seed156

ling’s roots to reach the groundwater, you must water them. A vast majority of planted saplings simply die off because one: there is no water to give them; and two: there is nobody to water them. With Waterboxx®, you only need to add water once each year,” Chughtai enthuses. “Under this initiative, we also plan on gifting an Urban Forest to Karachi City.”

As the company moves to expand its operations in the US, Mr Soorty is confident that the company has a value proposition that will keenly differentiate it in the highly competitive market.

“Our company is a global concern, from our multiple country of producSEPTEMBER 2019

Soorty Citizen Alpha Program – Encouraging Industry visit for Students

“ SEWS WILL ENABLE AND ENCOURAGE THE EMPLOYABILITY AND EMPOWERMENT OF WOMEN FROM LOW-INCOME BACKGROUNDS” — Mobeen Chughtai, Manager of Corporate Communications and Corporate Social Responsibility, Soorty Enterprises

157 E XE CU T I VE PRO FI LE

Mobeen Chughtai Mobeen is a Communications and CSR Specialist with over 13 years of experience in the trade after finishing his training at the prestigious Lahore University of Management Sciences (LUMS) in Pakistan. He has experience handling both ends of the communications chain, having worked as the business reporting lead for Punjab at numerous media outlets and has served as a consultant to the Punjab Government on development communications. Having also served as the lead business developer for his alma mater, he currently heads the Corporate Communications and CSR portfolios at Soorty Enterprises — Pakistan’s largest vertically integrated Denim manufacturer and exporter.

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158

“ TO BLEACH, MERCERISE AND DECOLOUR THE GARMENTS, WE USE OZONE, WHICH IS A VERY AGGRESSIVE GAS. OZONE MAKES IT POSSIBLE TO COMPLETE THESE PROCESSES WITHOUT ANY CHEMICALS OR WATER. IT IS REDUCED TO OXYGEN AFTER BEING USED” — Sarfraz Cheema, Chief Operating Officer and Head of Sustainability, Soorty Enterprises SEPTEMBER 2019

159

tion model in Bangladesh and Pakistan to our design studios in Manhattan,

ries that go beyond simple compliance.”

It is a testament to the depth and bril-

Amsterdam, Karachi and more,” he

liance of Soorty’s CSR and sustain-

explains. “Soorty provides more

ability strategies that they could not all

than just manufacturing. We exist

be condensed into the scope of this

on many parts of the value chain,

profile, although it is abundantly appar-

helping our customers to identify the

ent that the established brands in the

latest fashion trends and the white

US are set for some fierce new com-

spaces in their merchandise offerings.

petition in a world where the conscious

Our strong R&D allows them to have in-

consumer is rapidly becoming king.

novative and high-performance denim, while our responsible manufacturing methods offer fully transparent factow w w.c so ma ga z i n e. com

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NOVA SCOTIA POWER’S TRANSFORMATION JOURNEY WRITTEN BY

DANIEL BRIGHTMORE PRODUCED BY

JAMES BERRY

SEPTEMBER 2019

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N O VA S C O T I A P O W E R

NOVA SCOTIA POWER IS MEETING THE CHALLENGE OF TRANSFORMATION WITH A HOLISTIC APPROACH TO OPERATIONAL INTELLIGENCE. OPERATIONS TECHNOLOGY LEADER MIKE GREENE AND SENIOR TECHNICAL ADVISOR ROB MACNEIL EXPLAIN HOW THE LEADING UTILITY EMBRACES CHANGE

N 162

ova Scotia Power (NSP) is a fully-integrated power utility proudly serving 500,000 residential, commercial and industrial

customers across the province as its primary electricity provider since the early 1900s. A 1,700 strong team help manage $4.1bn worth of generation, transmission and distribution assets producing more than 10,000 gigawatt hours of electricity each year.

To keep up with an ever-evolving industry which is increasingly focused on sustainability, the power giant is embracing radical change with a move away from coal and oil-based generation. The shift to renewables prompts the need for significant transformation across the business to meet its 40% renewables target by 2020. Utilising a fuel mix of hydro, tidal, wind, coal, oil, biomass and natural gas to generate electricity, its facilities can produce as much as 2,453 megawatts of electricity delivered across 32,000 km of transmission and distribution lines throughout Nova Scotia.

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N O VA S C O T I A P O W E R

“ CHANGE MANAGEMENT AND CONTINUOUS IMPROVEMENT ARE A BIG PART OF THE EQUATION” 164

— Mike Greene, Operations Technology Leader, Nova Scotia Power

SEPTEMBER 2019

Mike Greene, Operations Technology Leader at Nova Scotia Power, is spearheading efforts to develop more flexible systems to manage its assets and both modify and optimise maintenance strategies. Preventative and predictive maintenance, along with surveillance activities and a more holistic and repeatable approach, are being leveraged to determine the company’s ongoing investments in its assets. Since 2010, NSP has been building an asset management function to care for all areas of the

CLICK TO WATCH : ‘POWERING OUR COMMUNITIES. EVERY DAY.’ 165 business under the same philosophy and regime. “Our goal is to understand their criticality to the business and put in place maintenance strategies that deliver intelligence about our equipment’s condition or health, so we’re able to risk-profile all of our major assets,” explains Greene.

NSP’s quest is to implement a sophisticated approach towards the application of technologies capable of condition-based maintenance and monitoring with predictive techniques to gather intelligence about its assets.

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N O VA S C O T I A P O W E R

166

environment to develop rules, rule

intelligence – from preventative and

engines and algorithms, applying

predictive maintenance to predictive

pattern recognition tools to better

analytics and operator surveillance –

understand asset health and guide

into the rules engine to offer an

decision making on maintenance and

improved real time view of our assets.”

investment. Greene’s colleague, Senior

The positive impact on efficiency

Technical Advisor Rob MacNeil, reveals

has been felt across the business.

more sensors are now being deployed

Previously the technical team would

in the field. “We’re able to instantly see

spend time searching for and managing

impending health issues,” he says.

information but less time actually doing

“Pattern recognition that absorbs

high-end analytics. One of the goals for

our sensor information and applies

NSP’s asset management program has

principles to find anomalies and give

been achieved: to provide intelligence

us early alerts, is rolling up all of our

capable of delivering actionable

SEPTEMBER 2019

insights from good data. The challenge lay in making sure the program’s deployment was smooth in providing a platform its users could trust.

“We didn’t want to deploy the technology first and then hope to get value from it later,” maintains MacNeil, who notes the importance of defining objectives first and then shaping technology to meet them once trials have proved the solution is scalable. “Mobile technology would be a good example of that.

Deploying in one plant, getting it right, and then moving on to other plants and minimizing organisational churn.”

E XE CU T I VE PRO FI LE

Mike Greene Mike Greene has over 25 years of experience with Databases, Information Systems and Plant Automation. He is currently the Operational Technology Lead for the Enterprise Asset Management Office of Nova Scotia Power, the utility for the province of Nova Scotia. He is responsible for the integration of NSP’s many OT systems with existing IT systems. He is actively involved with piloting new technology initiatives and expanding the NSP computer network. Greene has a BSc from Dalhousie University and diplomas in Business Computing and Petroleum Resource Technology from the Nova Scotia Institute of Technology.

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N O VA S C O T I A P O W E R

168

$225mn Approximate revenue

1972

Year founded

1,700

Approximate number of employees

SEPTEMBER 2019

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“ DIGITAL APPLICATION IN OUR INDUSTRY IS STILL RELATIVELY NEW, SO FINDING MAJOR PARTNERS WHO SHARE OUR PHILOSOPHY IS VERY IMPORTANT TO US” — Rob MacNeil, Senior Technology Advisor, Nova Scotia Power

Greene echoes the need for experimentation with pilot schemes to achieve lasting results from a range of vendors. “In the new world of cloud deployment and software-as-a-service, it’s easy to find software to fill certain niches,” he says. MacNeil notes the importance of evaluating providers, so that NSP does not just purchase an off-the-shelf solution but looks at broad fleet-monitoring tools. “Digital application in our industry is still relatively new, so finding major partners who share our philosophy 171

E XE CU T I VE PRO FI LE

Rob MacNeil Rob MacNeil is a Sr. Technical Advisor with Nova Scotia Power (NSPI) and manages the Asset Management Office.

He was responsible for the design and implementation of a comprehensive Asset Management approach for NSPI’s f leet of generating units, and is presently leading the design and deployment of the Asset Management Program within NSPI’s Transmission and Distribution business.

MacNeil has been in the utility business for 30 years and has experience in Operations, Maintenance, Production, Engineering and Management. Born in Nova Scotia (Canada) he received a BSc from Dalhousie University and an Engineering Degree from the Technical University of Nova Scotia.

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N O VA S C O T I A P O W E R

“ IN THE NEW WORLD OF CLOUD DEPLOYMENT AND SOFTWARE-AS-ASERVICE, IT’S EASY TO FIND SOFTWARE TO FILL CERTAIN NICHES” — Mike Greene, Operations Technology Leader, Nova Scotia Power 172 is very important to us… We’re often pushing the boundaries of their own technical capabilities, so we’re both investing in the future together.”

Across the industry, platforms are evolving into the cloud, which need to integrate within existing infrastructures.

“With some of the vendors we’re now looking at apps that we can deploy on iOS devices as we look at the tools of the future for our mobile workforce,” reveals Greene.

Greene and his team are keen to drive operational intelligence. “Do we need to do something now? Can we wait six months? Can we ignore it and SEPTEMBER 2019

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N O VA S C O T I A P O W E R

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C O M PA N Y FACT S

• 10,000+ gigawatt hours of electricity produced each year • $4.1bn worth of generation, transmission and distribution assets • 500,000 residential, commercial and industrial customers

SEPTEMBER 2019

just monitor it until it is taken offline permanently? Because within our industry in Nova Scotia and in some of the North American utilities we have the ultimate aim of reducing our coal fleet,” he explains.

In working towards that, MacNeil highlights the need to be systematically flexible as the use of assets change.

“Where some units would have been base-loaded in the past, now they’re cycling, so you cannot maintain them in the same way. They have new failure mechanisms that need to be considered, and therefore your maintenance strategy and activities need to change.”

By taking a holistic approach to asset management, unlike more traditional environments where each plant makes its own decisions, NSP are able to make portfolio decisions. “We’re confident our investment dollars are going where they need to be,” says MacNeil. “We’re meeting the mission of each unit… It might be a base-load unit, a two-shifting or a flex unit. It might be a unit that needs to retire in a short amount of time. This process of detailed risk understanding enables us to function in those variety of realities for various generating assets, and therefore we’re hitting the w w w.c so ma ga z i n e. com

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“ WE’RE CONFIDENT OUR INVESTMENT DOLLARS ARE GOING WHERE THEY NEED TO BE” — Rob MacNeil, Senior Technology Advisor, Nova Scotia Power

right risks.” That positive impact can defer outages to the end of the life of a unit, saving millions of dollars.

Continuing its asset management mission has been vital for NSP and is transforming the way it uses all of its generating units as deep operational experience is applied to change. How has the process helped with Nova Scotia Power’s renewables goal?

“It’s part of our corporate philosophy to develop a greener portfolio of generation,” says MacNeil, who finds the tools, systems and processes

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designed for NSP’s traditional generation

Change management and continuous

also fit well in the renewable world with,

improvement are a big part of the

for example, wind farms. “Our distribut-

equation. For us, they’re not just

ed-generation assets lend themselves

add-ons. It comes back to the

to the digital technologies and commu-

dedicated nature of our team. We’re

nication tools we’re deploying. We’ve

not doing this part-time; we’re fully

learned that the infrastructure we’ve

invested in sustaining these processes

established is well suited for renewable

and reaping the rewards.”

assets and that’s a win for us.”

For Greene, the right combination of people, processes and technology is paramount to future success: “There’s no one aspect that can be ignored so we put equal emphasis on all factors… w w w.c so ma ga z i n e. com